2017 Yearly Overview | Prysmian Group

MARGINS IMPROVED IN OUR STRATEGIC BUSINESSES PRYSMIAN GROUP 2017 YEARLY OVERVIEW Margins improved markedly in 2017 while work began on the IFA2 project, the submarine link between France and Britain. Prysmian Group executes major submarine interconnection projects for utilities and grid operators, such as the record Western HVDC Link in the UK, which boasts a number of industry firsts for voltage (600 kV) and world records for insulated cable rating (2200 MW) and distance (more than 400 km). In 2017 work began on the IFA2 project, a 320-kV submarine cable system between France and Britain capable of transmitting up to 1,000 MW and contributing to an increasingly interconnected European energy network. The Group is also a world leader in submarine connections for offshore wind farms. Following on from our involvement in major European projects in recent years, Prysmian will develop – for the first time in France – submarine cable systems to link three offshore wind farms to the national power grid. Our execution capability boasts the largest and most technologically-advanced cable-laying fleet in the world – the Giulio Verne, Ulisse and Cable Enterprise – which will soon be strengthened further by a fourth cutting-edge vessel. ENERGY PROJECTS Sales for the Energy Projects operating segment decreased organically in 2017 to €1,490 million, mainly due to different phasing and contract mixes in the submarine business and soft high voltage demand in some European markets and North America. However, the submarine cables business boosted its profitability thanks to a favourable mix of projects, services and installation activities, which benefited from the deployment of new installation assets such as our third cable-laying vessel ‘Ulisse’ and cable burial equipment. The high voltage business enjoyed a positive performance in the Far East and France, partially tempered by a slight decline in the UK, the Nordics and Russia. The main submarine cable projects on which work was performed during the period were: the link between Italy and Montenegro; the links between offshore wind farms in the North and Baltic Seas and the German mainland (BorWin3, 50 hertz); the Western HVDC Link in the UK; the interconnector between Norway and Britain (North Sea Link), and the interconnector between the Netherlands and Denmark (COBRAcable). Adjusted EBITDA up by 2.3% at €266 million. A favourable mix of projects and activities 2016 1,634 1,490 2017 -4.8% Sales of Energy Projects reached €1,490 million with an organic decrease due to different phasing and contract mixes in submarine, but adjusted EBITDA rose by 2.3% to €266 million. “The submarine cables business boosted profitability in 2017 thanks to a favourable mix of projects and installation activities, which benefited from the deployment of new assets that allowed us to conduct more high-margin activities.” Massimo Battaini Senior Vice President Energy Projects SALES 2017