Consolidated Financial Statements >
Directors’ Report
116
| 2012 annual report prysmian group
AN INTEGRATED SUPPLY CHAIN
In an extremely tough economic climate, what lines of action
have been taken to optimise resources and achieve positive
performance?
Fluctuations in the price of the key raw materials, copper, lead,
aluminium and oil, have been rigorously managed using hedging
policies and daily monitoring of the match between purchase
and sales commitments. This pre-emptive policy has helped
to shield the impact on profit and loss. In addition, we have
taken advantage of the integration with Draka to negotiate
better terms with suppliers based on the higher volumes
now purchased. We have also managed to optimise all the
warehouses and distribution centres in our distribution network
and to achieve significant cost savings by rationalising road
transport in Europe and North America.
What impact has the swift integration with Draka had on the
new structure?
The integration has allowed us to realise higher-than-expected
synergies thanks to a reduction in the cost structure, to benefits
from optimising the industrial footprint and to a matrix
structure successfully able to confront market competition.
The combination of managerial responsibilities and expertise
with integration of the commercial product offerings has made
our products and services more competitive and strengthened
the Group’s position in the strategic markets of power
transmission, Oil & Gas, optical cables and connectivity for
telecommunications.
In keeping with the Group’s growth and development
objectives, what investment policies were pursued in 2012?
Net operating investments amounted to Euro 141 million, of
which approximately 58% in projects to increase production
capacity. We have focused on organic growth as well as
acquisitions to enhance our business, for example by gaining
full control of the companies Telcon and Draka Optical Fibre in
Brazil and of Global Marine Energy in the UK; in addition, part
of these investments have gone into innovative projects in both
the Energy and Telecom business segments.
Massimo Battaini
Chief Operating Officer
