INSIGHT 2|2019

8 | Prysmian Group I N S I G H T FOCUS ON PRODUCT AND CUSTOMER OVERLAPS MAKE INTEGRATIONDEMANDING WHERE DO YOU STAND COMPARED TO YOUR TIMETABLE FOR PRYSMIAN GROUP/GENERAL CABLE INTEGRATION IN SOUTH EUROPE? We are on schedule for all our main strategic goals, like consolidating the new organization and implementing our management meeting system at regional level in order to favor the mix of cultures and skills; the WINE project with the aim of putting Prysmian and General Cable organizations in France and Spain at the same level of the KPIs of Prysmian Group; optimizing and leveraging the product portfolio through a dual brand management strategy and reaching industrial and R&D synergies, among the various we have. WHAT ARE THE MOST DIFFICULT CHALLENGES IN THE MERGER? Integrating General Cable in our region, without weakening our good financial position in France and Spain. In those two countries we have 80% of product and customer overlaps (in certain businesses with a market share of more than 50%). We don’t want to lose market share there. The other important challenges are achieving cultural integration around the whole regional perimeter and to develop processes to simplify activities by S outh Europe Market Intelligence and Trade Marketing Chief Francesco Zecchi talks about the specific challenges his region faced in combining Prysmian Group and General Cable into one company. In Spain and France, 80% of the customers and product has overlaps. After being able to implement an effective business protection plan in defence of our market shares, the region is on schedule for all main goals. leveraging the group’s organizational matrix and by creating a leaner organization. HOWDIDTHEMARKET/CLIENTSREACTTOTHE INTEGRATION? Generally, very well. Our decision to manage the two brands in the markets where this was possible (T&I), allowed us to effectively defend our market shares. This management was agreed upon and discussed with each customer, and with these conditions the customers reacted very well. We’ve been able to make the market understand the opportunity to work with a market leader able to offer an even more significant portfolio of product, skills and industrial capacity. WHAT IMPROVEMENTS HAVE BEENMADE SO FAR INYOUR REGION FROMTHE INTEGRATIONWITH GENERAL CABLE? A significant reduction in fixed costs, and a rapid exchange of best practices in R&D and in Manufacturing that allows the “best of best” DTC programs (i.e. semiconductors produced by General Cable that can be used in Prysmian offer or the LSOH Prysmian compound that can be used in General Cable offer). We now have a more powerful team and greater