44 348
Consolidated Financial Report |
DIRECTORS’ REPORT
2014 Annual Report
Prysmian Group
44
GROUP PERFORMANCE AND RESULTS
INTRODUCTION
Adoption of IFRS 10-11
Following the adoption of
IFRS 10 - Consolidated Financial
Statements
and
IFRS 11 - Joint Arrangements
, applicable
retrospectively from 1 January 2014, the Group's consolidated
figures have been restated as from 1 January 2013.
The main effects of applying the new standards relate to use
of the equity method to consolidate Yangtze Optical Fibre and
Cable Joint Stock Limited Co., Yangtze Optical Fibre and Cable
(Hong Kong) Co. Ltd., Precision Fiber Optics Ltd. and Power
Cables Malaysia Sdn Bhd, previously consolidated using the
proportionate method, and Yangtze Optical Fibre & Cable
(Shanghai) Co. Ltd., previously consolidated line-by-line.
Reclassification of share of net profit/(loss)
of equity-accounted companies
The Group has adopted a new method of classifying its share
of the net profit/(loss) of associates and joint ventures,
whereby it recognises this amount as a component of
"Operating income" when relating to companies that operate
in the same sector as the Group. The comparative figures
have been reclassified accordingly.
Change in segment reporting
From 1 January 2014 the Group embarked on a process of
organisational 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 execution, as well as on product customisation, namely:
High Voltage underground, Submarine and SURF (comprising
umbilical cables, flexible pipes and special DHT (Downhole
Technology) 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, namely: Energy & Infrastructure (including Trade &
Installers and Power Distribution) and Industrial & Network
Components (comprising Specialties & OEM, Oil & Gas,
Elevators, Automotive and Network Components).
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.
More details can be found in the section on Alternative
Performance Indicators contained in the present Directors'
Report.