We have closed 2016 on a note of profitability with the highest ever Adjusted EBITDA in the company’s history. Excellent sales performance in higher value-added businesses has been reflected in a significant improvement in profitability, also fostered by our focus on operational efficiency and manufacturing footprint optimisation.
Strong sales performance and improved profitability have helped to further strengthen the financial structure, with a better net financial position than expected.
Group Sales amounted to Euro 7,567 million, posting organic growth of +1.0% assuming the same group perimeter and excluding metal price and exchange rate effects. The most significant contributions came frompositive performances by the Energy Projects segment, with the execution of important submarineconnection projects in the portfolio, and by the Telecom segment, which benefited from the continuedupward trend in demand for optical cables.
Profitability has also benefited from a concentration on operational and organisational efficiency, optimisation of manufacturing footprint and a favourable sales mix particularly focused on Energy Projects and Telecom.
Prysmian Group has accelerated the process of improving CustomerExperience during 2016 with a focus on reducing response timesto complaints and the goal of becoming a byword not only forreliability, completeness and professionalism, but also for the speedof response. Thanks to the introduction of a system of specific KPIs, we obtained continuous and accurate monitoring of response times and managed to more than halve response times during 2016.
Customer Centricity and Factory Reliability are complemented by Supply Chain Integration projects with some of the most important global customers, with the goal of improving process effectiveness throughout the supply chain, from the producers of raw materials through to the end user.
Record performance by Submarine cables along with strong growth for High Voltage Underground - In 2016 Energy Projects introduced milestone technological innovations, like the new 600 kV P-Laser cable and the 700 kV PPL cable. Significant progress has also been made in developing the project engineering and execution capabilities
Improved margins in 2016.Trade & Installers sales down, Industrials mixed, Elevators and Network Components positive – The Energy Products segment witnessed an improvement in margins that was the major theme of 2016 both for Energy & Infrastructure, where they rose to 5.1% from 4.6% in 2015, and in Industrial & Network Components, that scored an increase to 9.5% from 8.1% the previous year.
Profitability continued to improve along with healthy 8.5% Australia-driven organic growth of sales - Profitability increase and solid organic growth were the encouraging outcomes of full year 2016 for Telecom business, as a result of increasing demand for optical cables and positive performance for multimedia solutions. Strong demand for copper cables in Austrialia also helped.
Sales fell along with profitability due to continued adverse market conditions, stabilization seen - Prysmian boasts an extremely wide range of solutions that meet the most demanding requirements. We aim at further expanding our share of this strategic market. Strong sales performance and improved profitability have helped to further strengthen the financial structure, with a better net financial position than expected.