2014 ANNUAL REPORT

Consolidated Financial Report |

DIRECTORS’ REPORT

2014 Annual Report

Prysmian Group

The

Energy Projects Operating Segment

covers high-tech

and high value-added businesses whose focus is on projects

and their execution, as well as on product customisation:

High Voltage underground, Submarine and SURF (umbilical

cables, flexible pipes and special DHT (Downhole Technology)

cables for the oil industry).

• Prysmian engineers, manufactures and installs high and

extra high voltage cables for

underground and submarine

power transmission

directly from power stations to

the primary distribution networks. Through Prysmian

PowerLink S.r.l., the Group develops the most advanced

"turnkey" submarine cable systems for installation at

depths of up to 2,000 metres, possible thanks to the

"Giulio Verne", one of the largest and most technologically

advanced cable-laying ships in the world. Prysmian also

offers advanced services for the construction of submarine

power lines for offshore wind farms, ranging from project

management to cable installation with the assistance of

the "Cable Enterprise", its other cable-laying ship. The

Group's technological solutions for this business cover

wind turbine, inter-array and export cables.

• The Group also offers a full range of SURF (Subsea

Umbilical, Riser and Flowline) products and services for

offshore exploration activities by the oil industry. The

product range includes multipurpose umbilical cables

for transporting energy, telecommunications, fluids

and chemicals; high-tech flexible pipes and ducting for

offshore oil extraction; special DHT cables, which include

cables to control downhole instrumentation, power cables

and hydraulic fluid cables.

The

Energy Products Operating Segment

covers the busi-

nesses offering a complete and innovative product portfolio

designed to meet the various and many demands of the

market: Energy & Infrastructure, (including Power Distribu-

tion and Trade & Installers) and Industrial & Network Com-

ponents (comprising Specialties & OEM, Oil & Gas, Elevators,

Automotive and Network Components).

• In the field of power transmission and distribution, the

Group manufactures medium voltage cables and systems

to connect industrial and residential buildings to primary

distribution grids and low voltage ones for power distri-

bution and the wiring of buildings. Prysmian solutions

are developed to support utilities and grid operators,

industrial companies, installers and wholesalers in the

electricity sector. In particular, the products made for the

Trade & Installers market include cables and systems for

distributors and installers for the wiring of buildings and

distribution of power to or within commercial and residen-

tial structures. Fire-resistant and low smoke halogen-free

cables complete one of the widest and most comprehen-

sive product ranges in the world.

• The Group's offer of integrated cabling solutions for the

Industrial market constitutes the most comprehensive

and technologically advanced response to the needs of

a wide variety of industries. For the Specialties and OEM

business, Prysmian offers cable systems for various

specific industrial applications such as trains, aircraft,

ships, port systems, cranes, mines, the nuclear industry,

defence, the electro-medical sector and renewable energy.

Products for the petrochemicals market include power,

instrumentation and control cables used in the various ac-

tivities of exploration, production, processing and storage.

Other solutions are produced for the elevator market,

such as flexible connectorised cables and hoistway cables,

and for the automotive industry, in which the Group

collaborates with the sector's leading international man-

ufacturers. The product range is completed with network

accessories and components to connect cables and other

network elements.