16 80
2.
HEALTHY RESULTS, WHEN STRATEGY WORKS
PRYSMIAN GROUP
2015
YEARLY OVERVIEW
The Telecom Operating Segment makes
cable systems and connectivity products
for telecommunication networks, with a
product portfolio that includes optical fibre,
optical cables, components and accessories,
Optical Ground Wire and copper cables.
With centres of excellence in Battipaglia
in Italy, Eindhoven in the Netherlands and
Douvrin in France, plus 5 production sites
around the world, the Prysmian Group is a
leadingmanufacturer of the core component
for every type of optical cable: optical fibre.
The Group also has at its disposal every
currently available technology for the
manufacture of optical fibre, allowing it to
achieve optimal solutions for many different
applications. Optical fibres are employed in
the production of a wide range of standard
The year 2015 was one of improved profitability for the Telecom operating
segment with a recovery in margins, thanks to growing demand for optical
cables globally and higher sales volumes, accompanied by positive trends
for Multimedia Solutions.
Sales amounted to Euro 1,109 million, reflecting strong organic growth of
9.9% on 2014. Adjusted EBITDA reported a major improvement to Euro 134
million, +14.9% on 2014, with higher margins achieved thanks to measures
torationalisemanufacturingfootprintandregainfibrecostcompetitiveness.
Optical cables enjoyed increased demand in nearly all the major markets,
particularly North America, Europe and Australia. In Europe, the Group
won contracts for work on major projects to realise backhaul links and
FTTH connections for leading operators, in particular Orange and Free in
France and Telecom Italia in Italy. In North America the development of
ultra-broadband and FTTx networks, providing 1 Gbps internet connections,
also stimulated a continuous uptrend in demand.
The high value-added Connectivity business also enjoyed a positive trend,
thanks to the development of new FTTx networks in Europe and North
America, as did Multimedia Solutions in Europe.
TELECOM
optical cables or those specifically designed
forchallengingorinaccessibleenvironments,
from underground ducts to overhead
electricity lines, from road and rail tunnels
to gas and sewerage networks.
The Group also supplies passive connectivity
solutions that ensure efficient management
of optical fibre within networks.
Growing demand for higher bandwidth has
seen the deployment of optical fibre moving
closer to the end user.
The Group is extremely active in this rapidly
growing sector of themarket, knownas FTTx,
where its approach is based on combining
existing technologies with innovative
solutions allowing fibres to be deployed in
high-rise buildings andmulti-dwelling units.
More sales, more development: a virtuous circle
Growth in global demand for optical cables, sales volumes
and profitability, upward trend in multimedia solutions.
994
1,109
2014
2015
+11.6%
2015 SALES
SALES AMOUNTED TO
€1,109
MILLION, REFLECTING STRONG
ORGANIC GROWTH OF
9.9%
ON 2014. MAJOR IMPROVEMENT
IN ADJUSTED EBITDA, WHICH
CLIMBED TO
€134
MILLION,
+14.9%
ON 2014.
Senior Vice President
Telecom business
Philippe Vanhille
“In the Telecom segment, we expect demand
for optical cables to continue to grow, albeit
at a slower pace than in 2015. We are seeing
significant differences between regions in
the way the market is developing, with solid
project execution in some countries and
delays in others.”