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Consolidated Financial Report |

DIRECTORS’ REPORT

2014 Annual Report

Prysmian Group

116

2012 2013 2014

30

20

10

0

2012 2013 2014

30

20

10

0

Jan-14

Feb-14

Mar-14

Apr-14

May-14

Jun-14

Jul-14

Aug-14

Sep-14

Oct-14

Nov-14

Dec-14

Jan-13

Feb-13

Mar-13

Apr-13

May-13

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

100

95

90

85

80

LOGISTICS

Energy Products

Telecom

Synergies between distribution networks, warehouses and

distribution centres, initiated after the Draka acquisition,

continued to be achieved during 2014 and enhanced by

actions like the launch of the Supply Chain Integration project,

intended to make the most of the unique platform offered by

the "SAP 1 Client" system, whose roll-out is now complete in

Europe (with the sole exception of the UK which will be added

in the course of 2015).

Actions and projects of this kind confirm the Group's

commitment to increasingly efficient use of resources, to

greater sharing of information and to significant reductions

in response time to market needs.

The ongoing attention to flexibility of response to the

market's ever more challenging demands has improved the

reliability of planning and the execution of manufacturing

output, in terms of both mix and volumes in ever faster

response times.

This, together with strict control over every type of inventory

(raw materials, intermediate products and finished goods)

allowed the Group to respond effectively and efficiently to the

volatility in 2014, which saw some business areas, regions and

product ranges clearly expanding in volume terms compared

with other areas where demand was stagnant or sinking.

Lastly, all Group operating units have continued to focus,

in partnership with customers and suppliers, on actions to

recycle, recondition and reuse packaging in order to minimise

environmental impact.