11
The Group achieved a double-digit growth for large submarine
projects, confirming its technological and market leadership
in the growing sector of offshore wind farm power lines and
interconnectors. The Group is a key player in major renewable
energy development programmes throughout Northern
Europe, and is also involved in the construction of some of the
most important interconnectors such as the Westernlink in
the UK and the Montenegro-Italy link, both projects acquired
in 2012. The prospects for 2013 are positive in Europe thanks to
new offshore wind farm projects, planned mainly in Germany
and the UK. Some industrial cable applications, such as
offshore Oil & Gas and elevator cables, also performed well.
Optical Telecom cables were affected by a slowdown in the
fourth quarter, mainly due to the suspension of incentives in
North and South America.
Improvement in profitability
The Group has continued its strategy of focusing on
profitability, resulting in significant improvements in
performance, especially by Submarine cables and systems,
Industrial cables and the entire Telecom business. Group
Adjusted EBITDA increased to Euro 647 million, up 10.4% from
the 2011 pro-forma figure of Euro 586 million, and improved
its margin to 8.2% on sales, from 7.3% in 2011. Despite the
still negative environment, particularly in the second half of
the year, the Group therefore achieved the Adjusted EBITDA
target initially announced to the market in the range Euro 600
- Euro 650 million. The contribution of the Draka integration
was important, allowing a reduction in overhead costs
and the achievement of higher-than-expected cumulative
synergies of Euro 65 million in the two-year period 2011-2012
(versus a target of Euro 45 million). Of particular note is the
improvement in the net financial position, which amounted
to Euro 918 million at the end of December 2012 compared
with Euro 1,064 million at 31 December 2011. This result was
achieved thanks to the positive impact of free cash flow,
which, excluding the effect of acquisitions, rose to Euro 284
million (Euro 209 million in 2011).
Integration with Draka and strategy development
The process of integration with Draka has been carried out
quickly, allowing the achievement of higher-than-expected
synergies (Euro 65 million cumulative at the end of 2012
compared with a target of Euro 45 million). These synergies
have been realised in fixed costs and overheads (approximately
Euro 30 million), in procurement (approximately Euro 30
