177 348
177
(*) The previously published prior year consolidated financial statements have been restated following the adoption of IFRS 10 and IFRS 11. Further details can
be found in Section C. Restatement of comparative figures.
Gross investments in property, plant and equipment amount
to Euro 145 million in 2014.
The investments made during 2014 are analysed as follows:
• Euro 62 million, approximately 43% of the total, for
structural projects. These projects mainly relate to:
the conversion of the cable ship owned by Prysmian
PowerLink Services Ltd to allow it to perform different
types of installation work; the purchase of the Pikkala
site in Finland, to ensure production capacity for the
Submarine business and other high value-added busines-
ses; and lastly, work on buildings and production lines for
compliance with the latest regulations;
• Euro 46 million, approximately 32% of the total, for
projects to increase production capacity and develop new
products. In particular, these investments concerned: the
Arco Felice plant in Naples and the Drammen plant in
Norway for the realisation of the Exxon Mobile and Baltic
2 submarine projects; the Sorocaba plant in Brazil for the
construction of preforms needed in optical fibre manufac-
turing; the Abbeville plant in the United States to cope
with the growth in local demand for the E&I business;
• Euro 31 million, approximately 21% of the total, for
projects to improve industrial efficiency. In particular
these projects have involved the installation of a trige-
neration system at the Battipaglia plant in Italy in order
to generate electricity and reuse exhaust gases for air
conditioning, which will significantly reduce energy costs;
lastly, other investments to improve efficiency and reduce
optical fibre manufacturing costs have been made at the
plants in Douvrin (France), Eindhoven (Netherlands) and
Battipaglia (Italy);
• Euro 6 million, approximately 4% of the total, for projects
to improve the R&D facilities.
There are liens for Euro 10 million against the value of
machinery in connection with long-term loans (Euro 12 million
at 31 December 2013).
When closing the present financial year, the Prysmian Group
reviewed whether there was any evidence that its CGUs might
be impaired, and then tested for impairment those CGUs
potentially at “risk”.
This test has led to the full impairment of Plant and
machinery, Equipment, Other assets and Assets under con-
struction for the CGU Energy Products - Italy (Euro 16 million)
and for the CGU Energy Products - Oceania (Euro 7 million).
The net book value of the Land and Buildings of the Italy and
Oceania CGUs has been compared with their fair value at the
Land Buildings
Plant and Equipment
Other assets
Assets under
Total
machinery
construction and advances
Balance at 31 December 2012 (*)
246
543
502
21
54
118 1,484
Movements in 2014:
- Investments
13
15
16
2
2
70
118
- Disposals
(1)
(2)
(1)
-
-
-
(4)
- Depreciation
-
(25)
(76)
(6)
(9)
-
(116)
- Impairment
(3)
(11)
(9)
(1)
-
(2)
(26)
- Impairment reversals
-
1
-
-
-
-
1
- Currency translation differences
(8)
(18)
(25)
-
(4)
(7)
(62)
- Reclassifications to Assets held for sale (3)
(8)
-
-
-
-
(11)
- Other
-
6
47
3
5
(55)
6
Total movements
(2)
(42)
(48)
(2)
(6)
6
(94)
Balance at 31 December 2013 (*)
244
501
454
19
48
124 1,390
Of which:
- Historical cost
250
668
1.023
68
93
126
2,228
- Accumulated depreciation and impairment (6)
(167)
(569)
(49)
(45)
(2)
(838)
Net book value
244
501
454
19
48
124 1,390
(in millions of Euro)