13
million), and thanks to the first benefits of optimising the
industrial footprint. Target synergies for 2013 are confirmed
at a cumulative Euro 100 million, mainly due to the run-
rate benefits of the first stage of manufacturing footprint
rationalisation and of organisational rightsizing.
The new matrix structure (by business and geographical
areas) has proved its worth. The clear mix of managerial
responsibilities and skills, coupled with the successful
integration of the commercial product offerings, have
improved the competitiveness of the Group’s range of products
and services and strengthened its position and growth in
strategic markets, in particular power transmission, Oil & Gas,
optical cables and connectivity for telecommunications.
With the aim of further developing the potential of its “human
capital”, in 2012 the Group embarked on some important
projects in the area of organisation and human resources.
These included the “Build the Future” project to recruit young
high-potential talents, the corporate Academy for high-level
technical and managerial training, and the new system of
performance management.
Investments for organic and acquisition-led growth
In line with its growth strategy, the Group has invested in
both organic and acquisition-led growth. On 1 April 2012,
the Group acquired non-controlling interests in the Brazilian
companies of Telcon and Draka Optical Fibre, thus gaining
100% control over these companies; in November, it completed
the acquisition of Global Marine Energy in the UK, with the
intent of expanding its installation capabilities and services for
submarine cables and systems.
Approximately Euro 88 million has been spent on investments
in new production capacity for strategic businesses. In
particular, in the submarine cables business, the Group has
expanded production capacity at its centre of excellence in
Arco Felice (Naples), Italy, and it has started production in
Finland to serve the growing market of links for offshore wind
farms in Northern Europe. In the high voltage underground
cables business, the Group has invested to expand production
capacity in China, Russia and France. Investments have
also been made in the Oil & Gas cables sector, in the optical
telecom cables business and in the development of innovative
cables and services for smart grids.
Strengthening the Public Company model
Ability to anticipate and satisfy changing market and
customer needs. Balanced and sustainable growth, in the
short and medium term. “Healthy” management and financial
discipline. Transparency and relationship of trust with markets
and investors. In short, these are the principles that have
guided the action of Prysmian’s management once again
in 2012. The ultimate objective of such conduct has been,
as always, to satisfy the interests of all the Group’s various
stakeholders, from shareholders, to customers and employees.
One last thing I would like to mention is a strategically
important initiative that really represents the spirit of our
Group: to further strengthen our public company model, we are
proposing to the Shareholders’ Meeting the introduction of an
employee stock ownership plan for all our employees in order
to increase their commitment to the Group and share in its
future success.
Valerio Battista
Chief Executive Officer
