61 348
61
Financial Performance
Sales to third parties by the Industrial & Network Compo-
nents business area amounted to Euro 1,708 million in 2014,
compared with Euro 1,788 million in 2013, posting a negative
change of Euro 80 million (-4.4%) due to the combined
effect of the following main factors:
• negative organic sales growth of Euro 5 million (-0.3%);
• reduction of Euro 38 million (-2.1%) for exchange rate
fluctuations;
• sales price reduction of Euro 37 million (-2.0%) for metal
price fluctuations.
Overall performance in 2014 by the industrial applications
business was affected by the instability of investment
demand in the energy resources business (Mining, Oil &
Gas), while still having to maintain the necessary geograph-
ical and product differentiation, given the wide range of
products developed specially for the market and the highly
customised nature of the solutions.
In Europe, Prysmian Group saw its order book slow in the
high-end OEM sector (mining cables for European markets,
mainly Germany) and in the infrastructure sector (power
generation cables, mainly for Central-North European
markets). Performance in the Oil & Gas sector was basically
in line with the previous year thanks to a recovery in the
second half of the year and despite a steep downturn in
exports by energy-producing nations in the Middle East,
the result of a general slowing in investment in the face of
regional political and economic instability, and a weak oil
price.
In the renewables business, demand improved considerably,
particularly in Northern Europe, North America and China,
while persistent weakness prevailed in Southern Europe.
The strategy of technological specialisation of the solutions
offered allowed Prysmian Group to consolidate its Elevator
market leadership in North America and to expand into
the Chinese and European markets; its exposure to the
European market in particular was still marginal although
significantly greater than in the previous year.
Asia, Australia and China were the regions offering the
Group the main growth opportunities in 2014, thanks to
consolidation of its market share in Australia and the devel-
opment of Offshore projects in Singapore and China.
Lastly, the Network Components business area reported a
slight increase in sales volumes in all product segments,
allowing the prior year level of profitability to be maintained
despite growing pressure on prices. Sales on European
markets remained stable, despite weak medium voltage
demand, with similar weakness in High Voltage demand in
North America; sales of high voltage accessories recovered
in the Chinese market, supported by local production by the
Suzhou plant.
Given the factors described above, Adjusted EBITDA for 2014
came to Euro 126 million, down from Euro 141 million in the
previous year.
2014
2013 (*)
2012 (*)
Sales
106
114
134
Adjusted EBITDA before share of net profit/(loss) of equity-accounted companies
5
5
1
Adjusted EBITDA
5
8
6
Adjusted operating income
3
4
3
This business area encompasses occasional sales by
Prysmian Group operating units of intermediate goods, raw
materials or other products forming part of the production
process. These sales are normally linked to local business
situations, do not generate high margins and can vary in size
from period to period.
(*) 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.
OTHER
(in millions of Euro)