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Consolidated Financial Report |
DIRECTORS’ REPORT
2014 Annual Report
Prysmian Group
56
2014
2013 (*)
Change %
2012 (*)
Sales
4,491
4,649
-3.4% 5,122
Adjusted EBITDA before share of net profit/(loss)
of equity-accounted companies
221
259
-15.0% 289
% of sales
4.9%
5.6%
5.6%
Adjusted EBITDA
239
276
-13.6% 304
% of sales
5.3%
5.9%
5.9%
EBITDA
195
250
-22.0% 235
% of sales
4.3%
5.4%
4.6%
Amortisation and depreciation
(62)
(66)
(72)
Adjusted operating income
177
210
-16.2% 232
% of sales
3.9%
4.5%
4.5%
Reconciliation of Operating Income / EBITDA to Adjusted Operating Income / Adjusted EBITDA
EBITDA (A)
195
250
-22.0% 235
Non-recurring expenses/(income):
Company reorganisation
38
29
50
Draka integration costs
-
-
4
Tax inspections
-
-
1
Environmental remediation and other costs
-
(3)
3
Gains on asset disposals
-
(2)
(1)
Other net non-recurring expenses
6
2
11
Total non-recurring expenses/(income) (B)
44
26
69
Adjusted EBITDA (A+B)
239
276
-13.6% 304
(*) The previously published prior year comparative figures have been restated following the introduction of IFRS 10 and IFRS 11 and a new method of classifying
the share of net profit (loss) of associates and joint ventures.
The Energy Products Operating Segment, covering the busi-
nesses offering a complete and innovative product portfolio
for a variety of industries, is organised into the businesses of
Energy & Infrastructure (including Power Distribution, Trade &
Installers) and Industrial & Network Components (comprising
Specialties & OEM, Oil & Gas, Elevators, Automotive and
Network Components).
Sales to third parties by the Energy Products operating
segment amounted to Euro 4,491 million in 2014, compared
with Euro 4,649 million in 2013, posting a negative change of
Euro 158 million (-3.4%), due to the combined effect of the
following main factors:
• increase of Euro 65 million (+1.4%) due to organic sales
growth, reflecting volume recovery in Northern and
Eastern Europe and growth in Asian countries, as partially
offset by negative organic growth in South America;
• reduction of Euro 130 million (-2.0%) for exchange rate
fluctuations;
• sales price reduction of Euro 93 million (-2.8%) for metal
price fluctuations.
Adjusted EBITDA for 2014 came to Euro 239 million, down
Euro 37 million (-13.6%) from Euro 276 million in 2013.
The following paragraphs describe market trends and
financial performance in each of the business areas of the
Energy Products operating segment.
REVIEW OF ENERGY PRODUCTS OPERATING SEGMENT
(in millions of Euro)