2017 Sustainability Overview | Prysmian Group

PRYSMIAN GROUP 2017 SUSTAINABILITY OVERVIEW TAKING ACTION In 2017, the economic value generated by Prysmian amounted to €7,866 million, of which €223 million (2.8%) consisted of profits redistributed to Group Members and interest to third parties and represented the value withheld. The percentage allocated in the form of spending on Suppliers – including raw material and other services – amounted to 81.2%. As a result, the rest was redistributed respectively to payment to Human Resources (13.8%), payment to Lenders (1.1%), payment to the Public Administration (1.0%) and contributions to the Community of €100,000. The allocations reflected the income statement captions in the consolidated financial statements as of 31 December 2017. Prysmian is one of the few Italian manufacturers with a global presence that, in recent years, has achieved true public company status. 100% of the Group’s shares, as of 31 December 2017, are owned by floating shareholders, with almost 80% of capital held by institutional investors. Major shareholdings (in excess of 3%) account for around 19% of share capital. Accordingly, there are no majority or relative majority shareholders. As of 31 December 2017, the share capital of Prysmian S.p.A. amounts to Euro 21,748,275.40, represented by 217,482,754 ordinary shares with a nominal value of Euro 0.1 each. The ownership at that date was structured as follows: Institutional Investors 77.8%, Retail 8.3%, 3.0% Treasury shares, 10.9% Others. Geography-wise, the Group witnessed the predominance of the United Kingdom with 26% of capital held by institutional investors, followed by the United States at 22%. Italy represented about 14% of capital held by institutional investors, a slight decrease since 2016, while France increased slightly to 10%. The weighting of Asian investors remains largely stable. About 71% of the capital held by institutional investors is owned by Value, Growth or GARP investment funds that have a medium/long-term time horizon. Stable with respect to 2016, there has been a decrease in the number of shareholders adopting an Index investment strategy, based on the principal stock indices, while the Hedge Fund component - with a shorter time horizon - has now increased to reach 5% of the total. Clubtre S.p.A., the Group's historic shareholder after the exit of Goldman Sachs, reduced its stake to 4.01% following the sale of 4 million shares through an Accelerated Bookbuilding process on 18 January 2017. A statement made by Tamburi Investment Partners, a member of Clubtre S.p.A. with a stake of 43.28%, said that this transaction represents a partial realisation of the investment made in 2010, and that it will maintain a significant shareholding in Prysmian through Clubtre. In April 2017 the Shareholders' Meeting of Prysmian approved the 2016 financial statements, the allocation of exercise and distribution of dividends, authorisation to purchase and dispose of treasury shares and consultation on remuneration policies. Seventeen hundred members participated in the Shareholders' Meeting, directly or by proxy, representing over 54% of the share capital, and approved, with a large majority exceeding 95% all the items on the agenda and the distribution of a dividend of €0.43 per share, in line with the previous year. The payment took place on 26 April 2017, for a total amount of approximately €91 million. The Prysmian Group makes a constant effort to create and distribute value to its stakeholders. This commitment is monitored every year thanks to the definition of the added value generated and redistributed (or Added Value) that allows to quantify how much wealth has been produced by the Group and how it has been redistributed among all its stakeholders in order to provide a complete picture of the economic impact that the company produces. CREATING AND DISTRIBUTING VALUE