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Consolidated Financial Report |
EXPLANATORY NOTES
2014 Annual Report
Prysmian Group
134
Change in Segment Reporting
From 1 January 2014 the Group embarked on a process of orga-
nisational change, which has involved redefining its segment
information, in keeping with the new management model
adopted by the Group.
Under the new organisational structure, the Energy segment
has been divided into two Operating Segments: Energy
Projects and Energy Products. However, the structure of the
Telecom Operating Segment has remained unchanged.
The Energy Projects Operating Segment covers high-tech
and high value-added businesses whose focus is on projects
and their implementation, as well as product customisation,
namely: High Voltage underground, Submarine and SURF,
which comprises umbilical cables, flexible pipes and special
DHT (Downhole Technology) cables.
The Energy Products Operating Segment covers the businesses
offering a complete and innovative product portfolio designed
tomeet the various andmany demands of themarket, namely:
Energy & Infrastructure (including Trade & Installers and Power
Distribution) and Industrial & Network Components (compri-
sing Specialties & OEM, Oil & Gas, Elevators, Automotive and
Network Components).
This change has resulted in the reallocation of goodwill; the
Cash Generating Units (CGUs) have also been redefined.
Reporting systems in support of the new model were fully
implemented in 2014 and have been used for the purposes
of preparing the current document. The Board of Directors
approved the adoption of the new structure for segment
reporting in its meeting on 23 January 2015. Further details can
be found in Section F. Segment information and in Section B.8
Impairment of property, plant and equipment and finite-life
intangible assets.
Other changes
Lastly, some reclassifications have been made between
“Historical cost” and “Accumulated depreciation and impai-
rment” in “Property, plant and equipment”, as shown in Note
1. Property, plant and equipment.