QUARTERLYOVERVIEW
4
PrysmianGroup Insight
2013 targetachieved
despitedifficultmarket
PrysmianGroupmanaged tomeet
the target set for 2013 amid a
still generally difficult market
environment.
The Board of Directors of the
company approved the consolidated
for 2013 that
showed sales of
€
7,273million,
down by 3.1% on organic basis, and
adjusted EBITDA of
€
612million,
compared to
€
647million in 2012,
heavily impacted by
€
23million of
negative exchange rate effects.
CEO Valerio Battista noted that
trends diverged between the various
markets and geographical areas
and signs of partial stabilisation
were seen in the second half of the
year. In this context, also beset
by negative exchange rate effects,
PrysmianGroup has achieved its
stated annual targets, as positive
sales and earnings performance by
the higher value-added businesses
of power transmission and certain
areas of the industrial cables
market, in linewith the Group’s
strategy. The negative impact
of falling demand in sectors like
power distribution, construction,
renewables and telecommunications
has been limited.
Further improvement in net
financial position, strong cash-
flow generation capability and
commitment to cost control have
all helped to confirm the Group as a
benchmark in the cable industry for
solidity, profitability and creation of
value for stakeholders. The adjusted
net profit was
€
268million for
2013, compared to
€
280million
in 2012, while the net financial
position improved to
€
834million
compared to
€
918 at the end of
the previous year. The proposed
dividendwas unchanged at
€
0.42
per share, supported by a sound
cash generation.
The process of integrationwith
Draka has continued successfully
in 2013. The target synergies
have been exceeded, reaching an
aggregate of
€
120million at the
end of 2013, comparedwith a target
of
€
100million. Target synergies by
2016 are confirmed at an aggregate
€
175million, particularly derived
from further rationalisation of the
manufacturing footprint and from
organisational rightsizing. This
target, originally set for 2015, will
be pursuedwhile paying particular
attention to themaintenance of
customer service levels.
“Positive sales and earnings
performance by the higher
value-added businesses of
power transmission and
certain areas of the industrial
cablesmarket limited the
negative impact of falling
demand in some sectors.”
Valerio Battista,
CEO of Prysmian Group
Adj. EBITDA€612million
Salesat€7,273million
excl. exchange rates effect
600
650
