Economic-Financial
Performance
Economic-Financial Performance
The solid expansion of margins and the considerable cash generation reached in 2023 confirmed Prsymian’s soundness and its market leader position. We achieved excellent results and guaranteed the creation of value for all of our stakeholders, in line with the attainment of the mid-term objectives of the “Connect, to Lead” strategy.
Financial statements
Consolidated Statement Of Financial Position
| (Euro/million) | Note | 31.12.2023 | of which related parties | 31.12.2022 | of which related parties |
|---|---|---|---|---|---|
| Non-current assets | |||||
| Property, plant and equipment | 1 | 3,401 | 3,020 | ||
| Goodwill | 2 | 1,660 | 1,691 | ||
| Altre immobilizzazioni immateriali | 2 | 411 | 473 | ||
| Equity-accounted investments | 3 | 218 | 218 | 387 | 387 |
| Other investments at fair value through other comprehensive income | 4 | 10 | 12 | ||
| Financial assets at amortised cost | 3 | 3 | |||
| Derivatives | 8 | 41 | 135 | ||
| Deferred tax assets | 16 | 299 | 203 | ||
| Other receivables | 5 | 36 | 34 | ||
| Total non-current assets | 6,079 | 5,958 | |||
| Current assets | |||||
| Inventories | 6 | 2,264 | 2,241 | ||
| Trade receivables | 5 | 1,987 | 3 | 1,942 | - |
| Other receivables | 5 | 1,054 | 2 | 978 | 3 |
| Financial assets at fair value through profit or loss | 7 | 85 | 270 | ||
| Derivatives | 8 | 80 | 71 | ||
| Financial assets at fair value through other comprehensive income | 4 | 24 | 11 | ||
| Cash and cash equivalents | 9 | 1,741 | 1,285 | ||
| Total current assets | 7,235 | 6,798 | |||
| Assets held for sale | 10 | 9 | - | ||
| Total assets | 13,323 | 12,756 | |||
| Equity | |||||
| Share capital | 11 | 28 | 27 | ||
| Reserves | 11 | 3,224 | 3,054 | ||
| Group share of net profit/(loss) | 11 | 529 | 504 | ||
| Equity attributable to the Group | 3,781 | 3,585 | |||
| Equity attributable to non-controlling interests | 191 | 186 | |||
| Total equity | 3,972 | 3,771 | |||
| Non-current liabilities | |||||
| Borrowings from banks and other lenders | 12 | 2,488 | 2,744 | ||
| Employee benefit obligations | 15 | 333 | 329 | ||
| Provisions for risks and charges | 14 | 58 | 31 | ||
| Deferred tax liabilities | 16 | 222 | 187 | ||
| Derivatives | 8 | 47 | 61 | ||
| Other payables | 13 | 53 | 28 | ||
| Total non-current liabilities | 3,201 | 3,380 | |||
| Current liabilities | |||||
| Borrowings from banks and other lenders | 12 | 608 | 323 | ||
| Provisions for risks and charges | 14 | 753 | 5 | 665 | 8 |
| Derivatives | 8 | 57 | 72 | ||
| Trade payables | 13 | 2,199 | 4 | 2,718 | 17 |
| Other payables | 13 | 2,469 | 5 | 1,694 | 2 |
| Current tax payables | 27 | 64 | 133 | ||
| Total current liabilities | 6,150 | 5,605 | |||
| Total liabilities | 9,351 | 8,985 | |||
| Total equity and liabilities | 13,323 | 12,756 |
Consolidated Income Statement
| (Euro/million) | Note | 2023 | of which related parties | 2022 | of which related parties |
|---|---|---|---|---|---|
| Sales | 17 | 15,354 | 16,067 | ||
| Change in inventories of finished goods and work in progress | 18 | 52 | (30) | ||
| Other income | 19 | 70 | 6 | 70 | 7 |
| Total sales and income | 15,476 | 16,107 | |||
| Raw materials, consumables and supplies | 20 | (9,705) | (10,588) | ||
| Fair value change in derivatives of commodities | 6 | (31) | |||
| Personnel costs | 21 | (1,804) | (13) | (1,758) | (16) |
| Amortisation, depreciation, impairment and impairment reversals | 22 | (574) | (403) | ||
| Other expenses | 23 | (2,572) | (7) | (2,525) | (8) |
| Share of net profit/(loss) of equity-accounted companies | 24 | 33 | 33 | 47 | 47 |
| Operating income | 860 | 849 | |||
| Finance costs | 25 | (1,093) | (1,116) | ||
| Finance income | 26 | 997 | 1,006 | ||
| Profit/(loss) before taxes | 764 | 739 | |||
| Taxes | 27 | (217) | (230) | ||
| Net profit/(loss) | 547 | 509 | |||
| Of which: | |||||
| - attributable to non-controlling interests | 18 | 5 | |||
| - Group share | 529 | 504 | |||
| Basic earnings/(loss) per share (in Euro) | 28 | 1.94 | 1.91 | ||
| Diluted earnings/(loss) per share (in Euro) | 28 | 1.84 | 1.90 |
Other Comprehensive Income Statement
| (Euro/million) | 2023 | 2022 |
|---|---|---|
| Net profit/(loss) | 547 | 509 |
| Other comprehensive income: | ||
| A) Change in cash flow hedge reserve: | 547 | 509 |
| - Profit/(loss) for the year | (45) | (46) |
| - Taxes | 10 | 12 |
| B) Other changes relating to cash flow hedges: | (19) | (11) |
| - Profit/(loss) for the year | (24) | (15) |
| - Taxes | 5 | 4 |
| C) Change in currency translation reserve | (201) | 142 |
| D) Financial instruments at fair value: | (8) | - |
| - Profit/(loss) for the year | (10) | 109 |
| - Taxes | 2 | (30) |
| E) Actuarial gains/(losses) on employee benefits: | (8) | 79 |
| - Profit/(loss) for the year | (10) | 109 |
| - Taxes | 2 | (30) |
| Total other comprehensive income (A+B+C+D+E): | (271) | 176 |
| Total comprehensive income/(loss): | 276 | 685 |
| Of which: | ||
| - attributable to non-controlling interests | 8 | 11 |
| - Group share | 268 | 674 |
Consolidated Statement of Changes in Equity
| (Euro/million) | Share capital | Cash flow hedge reserve | Currency translation reserve | Other reserves | Group share of net profit/(loss) | Equity attributable to the Group | Equity attributable to non-controlling interests | Total |
|---|---|---|---|---|---|---|---|---|
| Balance at 31 December 2022 | 27 | 70 | (174) | 3,158 | 504 | 3,585 | 186 | 3,771 |
| Allocation of prior year net profit | 1 | - | - | 503 | (504) | - | - | - |
| Fair value share-based payment | - | - | - | 56 | - | 56 | 1 | 57 |
| Dividend distribution | - | - | - | (158) | - | (158) | (7) | (165) |
| Acquisition of non-controlling interest | - | - | - | (5) | - | (5) | - | (5) |
| Effect of hyperinflation | - | - | - | 35 | - | 35 | 3 | 38 |
| Total comprehensive income/(loss) | - | (35) | (193) | (33) | 529 | 268 | 8 | 276 |
| Balance at 31 December 2023 | 28 | 35 | (367) | 3,556 | 529 | 3,781 | 191 | 3,972 |
Consolidated Statement of Cash Flows
| (Euro/million) | 2023 | of which related parties | 2022 | of which related parties | |
|---|---|---|---|---|---|
| Profit/(loss) before taxes | 764 | 739 | |||
| Amortisation, depreciation and impairment | 574 | 403 | |||
| Net gains on disposal of fixed assets | - | (1) | |||
| Share of net profit/(loss) of equity-accounted companies | (33) | (33) | (47) | (47) | |
| Dividends received from equity-accounted companies | 13 | 13 | 10 | 10 | |
| Share-based payments | 57 | 2 | 104 | 4 | |
| Fair value change in metal derivatives | (6) | 31 | |||
| Net finance costs | 96 | 110 | |||
| Changes in inventories | (88) | (171) | |||
| Changes in trade receivables/payables | (523) | (16) | (175) | 12 | |
| Changes in other receivables/payables | 808 | 4 | 241 | - | |
| Change in employee benefit obligations | (16) | (16) | |||
| Change in provisions for risks | 98 | 31 | |||
| Net income taxes paid | (328) | (221) | |||
| A, | Cash flow from operating activities | 1,416 | 1,038 | ||
| Cash flow from acquisitions and/or disposals | - | (7) | |||
| Investments in property, plant and equipment | (599) | (429) | |||
| Disposals of property, plant and equipment | - | 2 | |||
| Investments in intangible assets | (25) | (25) | |||
| Investments in financial assets at fair value through profit or loss and financial assets at amortised cost | (33) | (39) | |||
| Disposals of financial assets at fair value through profit or loss | 214 | - | |||
| Investments in financial assets or equity investments at fair value through other comprehensive income | (48) | - | |||
| B, | Cash flow from investing activities | (491) | (498) | ||
| Capital contributions and other changes in equity | (4) | - | |||
| Dividend distribution | (165) | (148) | |||
| Proceeds of new loans | 120 | 1,335 | |||
| Repayments of loans | (200) | (2,000) | |||
| Changes in other net financial receivables/payables and other movements | (103) | (77) | |||
| Finance costs paid | (140) | (88) | |||
| Finance income received | 68 | 17 | |||
| C, | Cash flow from financing activities | (424) | (961) | ||
| D, | Net currency translation difference on cash and cash equivalents | (45) | 4 | ||
| E, | Net increase/(decrease) in cash and cash equivalents (A+B+C+D) | 456 | (417) | ||
| F, | Cash and cash equivalents at the beginning of the period | 1,285 | 1,702 | ||
| G, | Cash and cash equivalents at the end of the period (E+F) | 1,741 | 1,285 |
Business overview
Financial performance by business area (organization as at 31 December 2023)
| (Euro/million) | SALES | Adjusted EBITDA | |||||
|---|---|---|---|---|---|---|---|
| 2023 | 2022 | Organic growth | 2023 | 2022 | Margin 2023 | Margin 2022 | |
| PROJECTS | 2,508 | 2,161 | 15.3% | 300 | 243 | 12.0% | 11.2% |
| ENERGY | 11,357 | 12,033 | -1.3% | 1,188 | 974 | 10.5% | 8.1% |
| E&I | 7,620 | 8,196 | -2.7% | 843 | 736 | 11.1% | 9.0% |
| INDUSTRIAL & NWC | 3,358 | 3,442 | 1,7% | 361 | 252 | 10.8% | 7.3% |
| TELECOM | 1,489 | 1,873 | -18.9% | 140 | 271 | 9.4% | 14.5% |
| TOTAL | 15,354 | 16,067 | -1.1% | 1,628 | 1,488 | 10,6% | 9.3% |
Financial performance by business area (new organization as of 1 January 2024)
| (Euro/million) | SALES | Adjusted EBITDA | ||||
|---|---|---|---|---|---|---|
| 2023 | 2022 | 2021 | 2023 | 2022 | 2021 | |
| TRANSMISSION | 2,122 | 1,673 | 1,136 | 273 | 226 | 167 |
| POWER GRID | 3,394 | 3,605 | 2,791 | 390 | 194 | 162 |
| ELECTRIFICATION | 8,349 | 8,916 | 7,224 | 825 | 797 | 427 |
| DIGITAL SOLUTIONS | 1,489 | 1,873 | 1,585 | 140 | 271 | 220 |
| TOTAL | 15,354 | 16,067 | 12,736 | 1,628 | 1,488 | 976 |
