5 GREAT EXPECTATIONS 900M/1B Free Cash Flow growth expectation BY 2027 INSIGHT | Focus On said CEO-designate Massimo Battaini. “Our market leading position, track record of technological leadership and innovation, loyal customer base and unrivalled team are the foundation from which we can build on these trends,” he said. Its financial targets for 2027 include adjusted EBITDA of around €2 billion, up by about a third compared to the €1.49 billion achieved in 2022. The new strategy calls for a selective acceleration of investments to meet growing demand. Over the period 2023-2027, capital expenditure is expected to rise by 1.7 times compared to the previous five years, to €2.7 billion. About two thirds of these investments will be in the Renewable Transmission segment, where they will go towards additional manufacturing capacity, two new vessels and a barge . Free Cash Flow is expected to grow to €900 million-€1 billion in 2027 from €559 million in 2022. Return on Capital Employed (ROCE) is seen increasing to 25-28% in 2027 versus 20.1% in 2022, confirming the high returns of the planned strategic investments. The cables industry is becoming increasingly strategic due to long-term market trends which require resilient, high-performing, sustainable and innovative cable solutions. Prysmian has identified four main market drivers: the renewable energy generation, growing electricity demand, enhanced power grids and massive data growth. Building on the success of Prysmian’s previous strategy based on market consolidation, the new four pillar strategy focuses on organic growth arising from these market trends. The four pillars of the new strategy are: self-funded capacity expansion, with investments to support organic growth through consistent cash flow generation; a balanced and innovative portfolio, to foster technological leadership and sustainability; people empowerment, to grow business know-how and capabilities through the best people; and the new business segmentation into four new segments to seize market trends and opportunities. "Prysmian is uniquely placed to benefit from the opportunities presented by the structural changes arising from the convergence of the energy transition and digital transformation”
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