25 Prysmian Group’s 9M 2022 results once again confirm the Group’s exposure to medium/long-term growth drivers and its focus on proactively and seamlessly serving its customers, also by leveraging its efficient and geographically widespread industrial footprint. In the first nine months of 2022, global economy continued to grow sharply as in 2021, thanks to the easing of pandemic restrictions and to national plans in support of the development of infrastructure, energy transition and digitalisation projects. The strong recovery of economic activity was accompanied by considerable inflationary pressure, triggered mainly by the increase in energy and commodity prices and supply chain disruptions, exacerbated by the war in Ukraine. Tomitigate rising inflation, themaincentral banks began topareback somemonetary stimuli and to increase interest rates. Global economic growth expectations for 2022, while remaining positive, have been revised downwards, primarily following the conflict in Ukraine and the related international tensions. After the 6.0% rebound in 2021, the global economy is expected to grow by 3.2% in 2022, according to the most recent estimates issued in October by the International Monetary Fund. In any event, there continues to be a high level of uncertainty regarding global macroeconomic performance. Prysmian Group’s 9M 2022 results once again confirm the Group’s exposure to medium/long-term growth drivers and its focus on proactively and seamlessly serving its customers, also by leveraging its efficient and geographically widespread industrial footprint. This approach is supported by the excellent results achieved by the Energy segment, which hit a record level in 9M 2022, by the Telecom business’ solid performance and the expected ongoing improvement of the Projects business, with €3.2 billion orders awarded YTD and a total order backlog of approximately €6.85 billion (an all-time high), with visibility of a further €4.1 billion expected to be converted in backlog by 2024. As a result, for the full year 2022 Prysmian Group expects a moderate demand growth in the construction and industrial cables businesses after last year’s excellent performance, with results also supported by the ability to implement pricing policies to contain the inflation-driven cost pressures. In the high-voltage underground and submarine cables and systems business, the Group aims to confirm its leadership on the market, which is expected to grow sharply, driven by the development of offshore wind farms and interconnections to support the energy transition, as well as the start of a significant market uptrend in the United States, where the Group has decided to expand its production capacity and has already obtained the first construction permits for the new submarine cable plant at Brayton Point (Massachusetts). For this segment, the Group expects results to be up on the previous year, with a more marked acceleration in the Q4 2022. In the Telecom segment, volumes growth is expected in the optical business, mainly thanks to the North American market, where the Group is strengthening its commitment to meeting the country’s growing demand for broadband optical fibre connectivity. Prysmian Group's long-term growth drivers are confirmed, mainly linked to the energy transition, the strengthening of telecommunications networks (digitalisation) and the electrification process. The Group can also leverage its broad business and geographical diversification, solid capital structure, efficient and flexible supply chain and lean organisation, all of which is enabling it to effectively seize growth opportunities. INSIGHT | Financial Results
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