3
Prysmian Group Insight
High-tech primacy
offsets the impact
of weak markets
In the
of 2013
Prysmian Group managed to limit
the impact of a negative market
context by focusing on high value-
added businesses, such as power
transmission cables and systems,
which continued to perform well.
The quarter was in fact affected
by the worsening of the crisis in
Europe’s construction industry,
by the additional contraction
in energy consumption and by
the uncertainties surrounding
renewable energy and broadband
stimulus plans in North and South
America, which led to a drop in
global cable demand.
Nevertheless,
Prysmian Group
managed to limit the impact
of this negative context by
focusing on high value-added
businesses,
such as power
Prysmian Group has launched
new commercial initiatives and
actions focused on leveraging the
extensive range of products which
are expected to drive a significant
contribution from additional sales
by 2015. The Industrial business
is expected to deliver over
€
200
million in additional sales resulting
from the development of several
applications – including Specialties
& OEM, Oil & Gas and Elevators
– while the Telecom business is
expected to deliver approximately
€
200 million additional sales from
hybrid 4G cables, access networks
& connectivity, multimedia
solutions and optical ground wire.
To address the further reduction
in demand and of defending the
Group’s profitability, measures to
contain costs have been stepped
up, along with new actions to
rationalise and optimise the
structure.
QUARTERLY OVERVIEW
New initiatives
to defend
profitability
Full year Adj. EBITDA forecasted in the range
of €600-€650 million
transmission cables and systems,
which continue to perform well. With
the goal of supporting medium-term
profitability, the Group has also
launched a series of commercial
initiatives aimed at increasing sales
in the most profitable segments
of the Industrial and Telecom
businesses, by leveraging our
extensive product portfolio.
Along with these measures, Prysmian
is stepping up efforts to contain costs
and rationalise our organizational and
manufacturing structure, allowing
to up the target synergies from
integration with Draka to
€
175 million
by 2015, from the original target of
€
150 million. Based on this scenario,
the Group is forecasting full-year
adjusted EBITDA in the range of
€
600-
€
650 million.
Leverage on additional synergies and transmission to face new bottom in cyclical businesses
2013 Outlook - Profitability recovery expected next quarters
FY 2013 Adj. EBITDA Target (€ mln)
H1 2013E
H2 2013E
308
H1 2012 H1 2013E
600
650
• Worsening of
cyclical businesses
in Europe
• Weak telecom
performance due to
lower demand in US
and South America
• Strong decrease
in Renewables
339
H1 2012 H1 2013E
• Continuous weakness
in European cyclical
businesses
• Growing contribution
from Transmission
• Recovery in Telecom
• Improving
performance in Industrial
• Higher cost synergies
