Prysmian S.P.A. Ord

Thank you for standing by. Welcome to Prismian 9-month 2026 Integrated Results webcast and conference call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be question and answer session. To ask a question during the session, you will need to press star 1 and 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 and 1 again. Please be advised that today's conference is being recorded. And I'd like to hand the conference over to Massimo Battaini, Chief Executive Officer of Brisbane. Please go ahead.

Thank you. Welcome, everyone. This is again our best quarter yet. We had a great quarter in Quarter 2, 2026, but we've beaten that record with 120 million bid additional in Quarter 3, 2026. 851 million marks a new level of profit for this company. It is well ahead of quarter three last year, 25, with 200 million additional. And you see the numbers are very good from every angle. You see the EBITDA sequentially over last year. The EBITDA margin is close to 17%, so 2% a point higher than what it was one year ago. But you know what is particularly interesting and is not yet visible in the number but it will be visible through the rest of the presentation is the outstanding unique performance of INC United States where we beat an old expectation in terms of absolute EBITDA and in terms of EBITDA margin well above 24-25% in that quarter. I'd like to move to the second page When you see the trajectory of what we've done the last three years, 1.6 billion was the starting point at our capital market day, 23. 3.1 is a milestone. It's not the end of the journey. The end of the journey is much better in three, four years, according to what we'll be disclosing at the capital market day of 2027. But you see the acceleration of the company from an 8% CAGR over 22, 23, to a three times higher CAGR over the speed of 24-26. And I know you can sum up the numbers of the BIDA coming from the five acquisitions, or let's make it four, that are at least impacting the 2026. You find 1.5 million incremental BIDA from 23-26. The great news for us, and also for you, I hope, is that half of the number came from Inorganic Moves Acquisitions, half of it came from organic decisions. So obviously we made the right choices on both fronts for M&As and for CAPEX and for deployment capacity increases to support the growth of the market, to support our customers and capture as many opportunities as possible to make this growth sustainable in the long run. Lastly, you see we've beaten already As usual, we should say, after a few years, the target of 28, capital market target, will be 10-8 in 2026. Atcor and STAIR are the two last relevant acquisitions, relevant because they are all playing an important role in driving the growth of Prism towards this solution provider objective. We sit now on a 45-48% revenue as the company that we can consider solutions, so not just pure cable. And this is relevant because the more you shift to solution, the higher your EBITDA margin becomes. And this was pretty well visible in the trajectory of the EBITDA margin that you see in the prior page. ATCO give us additional components to make the installation of cable possible. XTERRA gives us the repeaters that, combined with cables, make us real players in the submarine telecom data business, which is growing faster, which is a space that we would like to own some important share of. An investment in XTERRA and the organic capacity increase in cables and the organic capacity increase in installation vessels will give out, will open us to an important role in this space. Transmissions continue with a strong growth, which has actually accelerated. 22% is the growth year over year. 60 million will additionally be done in this quarter versus last year, quarter three. The dividend margin is extremely solid, 20%. We will have a further enhancement of the margin in quarter four, and the organic growth of the full year will be in the high teens level for the full year. and 213 million is the highest they will be delivered by this business in a quarter, but a remarkable number would be the full year result 2026, which sets another important, sizable improvement all about the already outstanding 580 million that we delivered fully last year. PAL-REIT, middle single digit, I think with this growth, we are a little bit constrained by our decision to relocate some of the medium voltage capacity that we have in power grid to INC because the demand of the center is so overwhelming that we didn't want to miss that opportunity. So the organic growth is limited by this. Maybe the margin continued is trying The journey to catch up with the original 14.5-15% as soon as the inflation will stop growing so fast, the formula will recognize the full price impact or the cost so that we will be able to restore the 14.5-15% EBITDA margin in power grid based. Demand is strong across the summit, across all geographies. And you will see this in the town reports. This is the start of the tour. You see, 304 million, 100 million higher than last year. 17.6% EBITDA margin for the ILC business is totally unprecedented. And even more unprecedented is that inside this 304 million, there is an ANCO, or Legacy Prisma plus ANCO business, which outperformed all the historical numbers of this business. with a 27% EBITDA margin in Q3. The organic growth at the group level marked a 14% increase, but North America grew 24% in this quarter, year over year. Behind the growth you see in the prior page, there are choices, decisions we made in the past years. Coast Anchor Wire is The most evident reason for making Prisma a leader in this space. But last year we invested in capacity, in metal-clad cable, so special cable for data center. We invested in medium voltage capacity, and this capacity will come online in quarter one, quarter two, quarter three. For the next eight quarters, will be one additional line per quarter coming online to serve data center, identification, and power grid. is also the result of the choices we made in the past to vertically integrate ANCOR with rod capacity and compounding capacity. It never has the rod capacity in-house been so critical to the expansion, to the growth. The market in the US is super tight. Copper rod is charged, imported from outside, is charged with a tariff of 50%. Making the road that comes from importance not accessible to local players. The market is tight. Having a road capacity in-house is essential. Adding a second road, this is the decision we made last night at the border, is crucial to avoid, to constrain the growth of the business because we lack raw material. The road in-house will allow the chance to Buy more cathodes to serve this rod equipment and buy more waste that is available in the U.S. to make this rod cheaper and also friendly from an environmental point of view. With the medium voltage capacity I mentioned, a line is coming. There is a new investment in metal cladding, so specific cables to service the center that's going to become live towards the end of 27. and this investment approved again last night by the board. So we are deploying more or less 700 million, over 700 million capacity increase, vertical integration, medium voltage and specific cable for data center because the demand is overwhelming and because ANCO, McKinney and Prisma US is best suited, anybody else, to serve large projects with our scale and our best service. And this is what data centers want. Scale, volume, and lead time as short as possible. And we act. And we outperform everybody else with regards to these two KPIs. Super critical. Specialties. Here we enjoy stability, if I say. It's moderate organic growth, 67 million EBITDA per quarter. this and profitability the market is not growing fast in this segment but part of this product is going to be redirected to data center so i expect to see some additional better growth in the coming courses thanks to this combined opportunity of expanding our portfolio inside data center also with special case digital solution is also outstanding in terms of performance now we had These 19.6% EBITDA margin last year, which was the result of the first quarters coming from after the position of Chandler. Before then, the EBITDA margin has been hovering around 12, 13, 14% maximum. So we are now twice as much than now, 25%. Our journey will bring the 25% to 28, 29, 30 points, probably. Of course, we need more volume, which is what we will unlock with the new capacity in US and the sub-USA. and thanks to the agreement that we signed. So that number is written in stone. We will have 28 to 30% in the margin thanks to the backlog of revenues in our hand. Outstanding performance also in terms of innovation and sustainability. You see all the KPIs. Recycled content is not just a matter of a green product. It's also a matter of making us able to deliver more volume to the market that tends to the ability to recycle waste in a situation where the market is tight, especially in the US, but in general across all geographies due to the geopolitical situation when it comes to aluminum and copper. We have signed an important agreement with Amazon to provide them with green cables, low carbon aluminum. Holocaust fiber is almost finished in the industrialization phase where some volume Produce and Volume, Ready for Things, will start selling this product to the market as early as January next year. In the long-term agreement with our corporate supplier, speak to yourself to provide solidity to our supply chain in this cost-strained world in terms of geopolitical tensions. Let me defer now to Francesco for more financial insights and if we could slot Working Capital Trends.

Thank you, Massimo, and good morning to everybody. A quick wrap-up of the profit and loss. Organic growth has been very strong, the third quarter, plus 13%, a very sharp acceleration from the first half, mainly across transmission, ILC North America, as Massimo said, and definitely digital solutions. Best quarter yet in adjusted EBDA, you see on the right part of the slide, 851, growing more than 200 million from last year, and an outstanding margin, very close to 17% for the quarter at standard metal. You see that the progression is quite spectacular, I would say, in transmission. You see the progression over the quarters. In electrification, driven by IDLC, specifically in North America, and also in digital solutions. Going to the bottom line, same message, I would say. The group net profit is very close to 1 billion. It is outstandingly in line with last year. If you think that last year, nine months 2025, was impacted by more than 350 million gain on the disposal of our YFC state. So despite These huge positive impact last year, we are in line with that. And these will translate into an estimate of earning per share For the full year, which will be my estimate around 4.6 euro per share, which is very similarly to the EBDA in line with our 2028 targets two years earlier, two years in advance. So very similar trajectory.