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Risks relating to changes in the legal and regulatory
framework
The Prysmian Group, as a manufacturer and distributor
of cables, is subject to numerous legal and regulatory
requirements in the various countries where it operates, as
well as technical regulations, both national and international,
applicable to companies operating in the same sector and
to products manufactured and marketed by the Group.
Environmental protection legislation is particularly important
in this regard. Although the Group constantly endeavours
to reduce its exposure to environmental risks and has taken
out insurance against potential liabilities arising from third-
party environmental damage, it is nonetheless possible that
not all environmental risks have been adequately identified
and that not all the insurance coverage is fully effective. In
particular, the publication of additional regulations applicable
to the Group or its products, or changes in the current
national and international laws in the segments in which
the Group operates, could require the Group to adopt stricter
standards or could limit its freedom of action in its own areas
of business. These factors could involve compliancy costs,
even of significant amount, for its manufacturing facilities or
product specifications.
Risks associated with activities in developing countries
The Prysmian Group operates and has production facilities
and/or companies in Asia and Latin America. The Group’s
activities in these countries are exposed to different risks
linked to local regulatory and legal systems, the imposition
of tariffs or taxes, political and economic instability, and
exchange rate risks.
Significant changes in the macroeconomic, political, tax or
legislative framework of such countries could have an adverse
impact on the Group’s activities, results of operations and
statement of financial position.
