2014 ANNUAL REPORT

Consolidated Financial Report |

DIRECTORS’ REPORT

2014 Annual Report

Prysmian Group

102

Over a period spanning more than

130 years

, the Prysmian

Group has built its success and achieved importantmilestones

thanks to the skills of its employees who, generation after

generation, have been able to pass on to younger colleagues

their values, experience and sense of belonging to the Group.

The

human capital strategy

of Prysmian seeks to pursue

this path: fostering and shaping the passion, motivation and

competencies of employees into the real competitive edge

over competitors.

In line with the Group's objectives, the human capital strategy

is underpinned by a number of pillars:

• The development and dissemination of a shared

common

identity

: everyone must feel part of the team, contribut-

ing to a common project in which they believe.

• An inspiring model of

Leadership

: a management class

of high moral and professional standing is essential for

aspiring to ambitious goals and for achieving stable,

long-term results.

• The

development and management of talent

: involving

the right people in the professional challenges, knowing

how to select them and developing and making the

most of their skills; training them, challenging them

and engaging them. These activities, like others, require

planning and method in order to prime the Group to face

the challenges of the future. The Group aims to create a

"people pipeline" that will drive and support Prysmian's

growth.

• The

ability to attract

the highest quality people on the

market, by offering professional, intellectual and chal-

lenging career alternatives, that are dynamic but also able

to offer attractive long-term prospects.

• The

development of an organisation

that, in terms of

size, structure and processes, will allow the Group to

compete effectively on the market.

• The importance of

internal communication and social

relations

, key to managing a large organisation and being

able to engage internal and external stakeholders.

• The

international and multicultural dimensions

of our

workplaces, consistent with our industrial and commer-

cial presence worldwide.

Leadership Alignment / Organisational efficiency

The process of optimising organisational structures carried

on in 2014, especially with a view to improving their effec-

tiveness in the business. In particular, the structure of the

business units was revised with the creation of the new High

Voltage business unit and a reallocation of the activities of

the E&I business unit. Another significant action, announced

in 2014 but effective from January 2015, was the process of

rationalising Country structures in Europe with a view to

regionalisation that will improve commercial synergies in an

increasingly integrated European market. Lastly, the Group

decided to increase its focus on developing new markets by

creating a new dedicated business area.

People Development: investing in people

Intellectual capital and talent are strategic assets for

achieving Prysmian's goals of profitability and value creation,

which is why they must be supported by appropriate actions

to develop and enhance them. Robust processes of resource

management, incentivisation and individual motivation,

along with chances for international exchanges, give Group

employees opportunities for personal and professional

growth.

Talent Management

The Group's talent management system responds to the need

to attract, develop, promote and retain talented people in the

business. Prysmian has adopted a series of processes aimed

at creating a "people pipeline", meaning a "line-up" of talent

ready to enter the field, which can support and nurture the

growth of the business, while ensuring leadership continuity.

The talent management system is based on a series of

processes: Talent Acquisition, Performance Management,

Training and Development, Talent Measurement and Succes-

sion.

Talent Acquisition

Building the management team of the future begins with

selecting the best talents on the market, with particular

attention to recent graduates. "Build the Future, the Graduate

Program" is the Group's international recruitment programme

to place young high-potential graduates in different business

functions and geographical locations. Launched in 2012, the

programme has resulted in the recruitment of around 130

young people from around the world. Over 16,000 applica-

tions were received for the 2014/2015 cohort, out of which

50 recent graduates were selected from every continent;

this was the outcome of an intensive campaign of employer

HUMAN RESOURCES

The HR strategy is rooted in the development and dissemination of a shared common

identity: everyone must feel part of the team, contributing to a common project in which

they believe.