8 Connect, TO LEAD PRYSMIAN’S ORGANIZATIONAL REDESIGN: the four new business segments These new segments are Renewable Transmission, Power Grid, Electrification, and Digital Solutions, compared to the current segmentation of Projects, Energy and Telecom. The organization of the new units mirrors the four major market drivers identified by Prysmian: renewable energy generation, power grid enhancement, electrical applications growth and the digital transformation. Here is a look at the four new segments: Renewable Transmission will include the Submarine Power and the Land High Voltage Direct Current (HVDC) business units, which are currently part of the Projects segment. It will also consist of O&G Offshore Specialties, Submarine Telecom, High Voltage Network Components and Monitoring Solutions. Prysmian is determined to remain the market leader in this area, holding on to its historical 35-40% share. It will achieve this goal by leveraging its technological expertise, not just in cables but also in installation, and will combine this with its strong track record. This segment is the company’s main growth pillar, and is set to almost triple adjusted EBITDA to around €600 million by 2027. The focus here will be to execute Prysmian’s €20 billion order portfolio, and to expand capacity with state-ofthe-art equipment. The group will also build on our operational excellence, learning from mistakes and introducing more robust production tests to pre-empt problems. About two thirds of the €2.7 billion overall capital expenditure planned in the new strategy will go into this segment, for additional manufacturing capacity and for two new vessels and a barge. Power Grid will include the High Voltage Alternating Current (HVAC) business unit, which is currently in the Projects segment, and Power Distribution and Overhead Lines, currently in the Energy segment. It will also be made up of Medium-Low Voltage Network Components and Medium Voltage Monitoring Solutions. This market is growing fast, and the segment is the second largest contributor to Prysmian’s core profit growth, with adjusted EBITDA in this unit seen doubling to around €410 million by 2027. Customers are rushing to secure cables availability, often through advance payments and pre-booking capacity fees. They are also becoming more and more sensitive to sustainable products. Our strategy in this segment is to grow our market share, which ranges from 40% to 50%, while consolidating our position as a solution provider. We will continue to invest in innovative products that are grid resilient, safe and sustainable, such as the E3X grid-enhancing technology. We will also capitalize on strong partnerships with utilities and distribution system operators, leverage on Pry-Cam products and selectively expand capacity in the most profitable and high-growth markets in North America, where solar and wind applications are playing a key role, and in the European Union, where growth is driven by grid enhancement. Electrification will include Industrial & Construction (former Trade & Installer) and Specialties (formerly in Industrial & NWC), which are currently in the Energy segment. Prysmian Group’s new strategy unveiled at its Capital Markets Day on October 5 will involve a reorganization of the business into four segments from the existing three, to be able to most effectively seize market trends and opportunities. RENEWABLE TRANSMISSION ELECTRIFICATION POWER GRID
RkJQdWJsaXNoZXIy Mzc4NjU=