How Prysmian is strengthening its commitment to the environment, local communities, and its people. Sustainability as a business driver for Prysmian. GOING GREEN, GOING DIGITAL: THE TWIN TRANSITIONS
2 Going Green, Going Digital: the twin transitions CONTENTS Focus On How Prysmian is strengthening its commitment to the environment, local communities, and its people p. 3 Prysmian pledges further emissions reduction cuts in its new 2023-2025 ESG targets p. 4 Going Green, Going Digital Sustainability as a business driver for Prysmian Highlights from Sustainability Week p. 8 Climate subsidies adopted by EU and US governments will have knock-on effect on trade p. 12 Formula E: advancing decarbonized mobility through motorsport p. 14 Sustainability Call 4 Ideas: your answers for our sustainability p. 16 Financial highlights p. 18
3 How Prysmian is strengthening its commitment to the environment, local communities, and its people Continue reading on the following pages Focus On In this issue of INSIGHT dedicated to Sustainability Week 2023, management discusses how the Group’s sustainability commitment has expanded beyond its own operations to encompass the entire value chain. At the end of June, Prysmian Group top executives welcomed 20 external speakers and over 300 stakeholders at Milan headquarters to illustrate progress on achieving net zero targets approved by the Science-Based Targets initiative, which call for cutting Scope 1 and 2 emissions by 47% and Scope 3 emissions by 28% by 2030, as it moves towards reaching a 90% reduction of Scope 1 and 2 emissions by 2035 and a 90% cut in Scope 3 emissions by 2050. Prysmian Group’s Sustainability Week 2023 launched its new, more challenging net zero targets for 2023-2025. These include having a concrete impact by connecting 110 million households to green electricity and 15 million households with fast digital access, by developing technologically advanced products and network components essential for supporting the energy transition, decarbonisation and digitalisation processes.
4 Going Green, Going Digital: the twin transitions Prysmian pledges further emissions reduction cuts in its new 2023-2025 ESG targets Prysmian unveiled new emission reduction targets for 2023-2025, confirming the company’s commitment to decarbonization to help mitigate climate change, the Group’s Chief Sustainability Officer Cristina Bifulco announced during Prysmian’s Sustainability Week 2023.
5 AN UPGRADED COMMITMENT INSIGHT | Focus On The new near-term and net-zero targets – which have been approved by the Science Based Targets initiative (SBTi) – include the goal to reduce Scope 1 and 2 greenhouse gas emissions by 47% and to cut Scope 3 emissions by 28% by 2030, compared to the 2019 baseline. This is an upgrade from the previous targets of 46% (Scope 1&2) and 21% (Scope 3). Prysmian’s net-zero commitment to reduce all the greenhouse gas emissions throughout the value chain by 2050, was also approved by SBTi. “We were the first cable maker to receive the approval from the Science Based Targets initiative for our decarbonization targets, in September 2021. At the beginning of this year, we upgraded our commitment, and we have just received the validation,” Cristina Bifulco said during the “Going Green and Digital” Sustainability Week event on June 28 which brought together company stakeholders in Milan. The Science Based Targets initiative mobilizes firms to set science-based targets and boost their competitive advantage in the transition to a zerocarbon economy. It is a collaboration between CDP, the United Nations Global Compact, World Resources Institute (WRI) and the Worldwide Fund for Nature (WWF). SBTi defines and promotes best practice in science-based target setting and independently assesses and approves companies’ targets. “This is a great achievement, and it confirms our commitment to decarbonizing our footprint and innovating products in this direction.” The first cable maker to receive the approval from the Science Based Targets initiative for our decarbonization targets. SEPTEMBER 2021
6 Going Green, Going Digital: the twin transitions Sustainability Week 2023 was an opportunity to highlight how the Group approaches sustainability, pursuing high standards of environmental responsibility for manufacturing processes, reinforcing its efforts to protect the environment, and managing relations with local communities, as well as in terms of people’s inclusion and growth. Over 300 internal and external stakeholders gathered at Prysmian’s Milan headquarter to engage with over 20 executives and guest speakers, with 6,500 more listeners connected to the platform via streaming. “As leader of our sector, we feel even more responsibility to act concretely, with rigor, and to leave a long-lasting effect - through our business directly, inside our organization, and across the value chain,” Bifulco said at the event. “We have long-term ambitions, but at the same time, we have designed a very concrete roadmap with shorter term targets to make sure that we are able to track our achievement and to adjust if necessary.” At the beginning of the year, the company launched a new threeyear scorecard for 202325, including a goal to enable green electricity access for 110 million households and fast digital access for 15 million households, working every day to develop technologically advanced products and network components. Moreover, it is aiming for a share of revenues from sustainable products of 57% in the EU and 19% in the rest of the world, as well as a share of recycled content in polyethylene and copper cable insulations of 15-16%. The Diversity & Inclusion target is expected to increase the percentage of women hired from 44.9% in 2022 to 47-49% in 2025 and reach 50% in 2030. THE NEW SCORECARD Cristina Bifulco, Chief Sustainability Officer and Investor Relations Vice President "We feel even more responsibility to act concretely, with rigor, and to leave a longlasting effect." SUSTAINABILITY WEEK 2023 300 Over internal and external stakeholders 20 Over executives and guest speakers 6,500 Over listeners connected
7 “Our goal is to drive the energy and digital conversion that is taking place in the world of energy and electrification,” said Prysmian Chief Operating Officer Massimo Battaini. The company has seen a rise in ESG (Environmental, Social and Governance) investors over the years, so much so that now almost one out of two are ESG-driven, reflecting the high level of sensitivity it has on these issues. Bifulco leads Prysmian’s Sustainability Steering Committee, which is responsible for developing, designing, and implementing ESG policies and targets; effectively managing resources; and monitoring sustainability activities across regions, business units and corporate functions. It works closely with the board-level ESG Committee (where Bifulco is Secretary), which is in charge of setting guidelines and procedures to integrate sustainability into the business model. ESG-DRIVEN INVESTORS INSIGHT | Focus On “We want to encourage and make this market growth even more sustainable, thanks to our ability to innovate products and provide more competitive solutions from the viewpoint of costs and at the same time with a lower environmental impact.”
8 Going Green, Going Digital: the twin transitions Sustainability as a business driver for Prysmian HIGHLIGHTS FROM SUSTAINABILITY WEEK Going Green and Digital
9 Chief Operating Officer Massimo Battaini explained at the “Going Green and Digital” summit how sustainability had recently become much more embedded in Prysmian’s organization. The Group has realized it can also have an impact across the whole value chain, enhancing the sustainability focus of clients. Innovations such as using recycled materials in cable manufacturing, producing recyclable cables and digitalizing the supply chain will contribute to lowering customers’ greenhouse gas emissions, and are appealing to those with advanced sustainability strategies. “The energy transition implies that additional cables will have to be deployed to connect renewable sources to where the consumption is, to provide additional cables for electrifying housing, and so on. But the way to lead is not just to consider ourselves the enabler of the transition.” “It is important that we innovate in order to provide customers with a real benefit for their sustainability goals. This is why we consider sustainability not only an immense responsibility from our side, but also a vehicle to make business in a more sustainable way in the long term.” Companies should look at both their suppliers and clients to improve sustainability, he said, describing how Prysmian has prompted its suppliers to provide raw materials with higher content of recycled waste so that their CO2 content was lower. “If every actor in the supply chain works on both sides, suppliers on one hand and customers on the other hand, to make supplierscapable of producing raw materials with a lower carbon footprint, and to help our customers achieve their CO2 emissions goals, the entire supply chain becomes more sustainable and impactful to the world,” Battaini said. INSIGHT | Going Green and Digital Sustainability will increasingly become a business driver in coming years, and cable maker Prysmian can play a leading role in this shift, both as an enabler of the energy transition and by innovating to help achieve environmental and social aims, company executives said during its Sustainability Week 2023. Massimo Battaini Prysmian’s Chief Operating Officer
10 Going Green, Going Digital: the twin transitions As a key player in the energy and digital transformation processes, Prysmian can set an example with its own green targets and strategy. Its new and ambitious emission reduction targets have recently been approved by the Science Based Targets initiative (SBTi), Chief Sustainability Officer Cristina Bifulco announced during the event in Milan. Prysmian is now committed to reducing total Scope 1 and 2 greenhouse gas emissions by 47% and Scope 3 emissions by 28% by 2030, compared to the 2019 baseline. The new targets are more challenging than the previous ones, which were a reduction of 46% (Scope 1&2) and 21% (Scope 3). Its net-zero goals, to cut Scope 1 and 2 emissions by 90% by 2035 compared to the 2019 baseline and to reduce Scope 3 emissions by at least 90 % by 2050, have also received SBTi approval, she said. Bifulco said. This year the company launched a new three-year scorecard for 202325, including a goal to enable green electricity access for 110 million households and fast digital access for 15 million households by 2025. Operating in such a vital industry for the energy transition has meant that Prysmian’s approach has moved from a focus on shareholder return to a multistakeholder strategy, Chief Financial Officer Pier Francesco Facchini told the summit. This has meant that integrated reporting (delivered for the first time in Prysmian history on fiscal year 2022) combining financial and nonfinancial elements has become a very important communication and strategy tool. He said integrated reporting is already providing significant benefits for Prysmian, with many customers looking for high quality and extensive Environmental, Social and Governance (ESG) reporting when deciding on tenders. It also helps to attract and retain talented younger employees who are often particularly attentive to these factors, and to access sustainable finance. NEW TARGETS APPROVED ADVANCES IN INTEGRATED REPORTING “We have long-term ambitions, but at the same time, we have designed a very concrete roadmap with shorter-term targets to make sure that we are able to track our achievement and to adjust, if necessary.” Cristina Bifulco Prysmian’s Chief Sustainability Officer
11 Nevertheless, he said the shift to this new form of reporting still pose many challenges, including those of a regulatory nature, which have encouraged Prysmian to act on this front well ahead of any mandatory requirements. “We needed time to adapt and to align the robustness of the nonfinancial reporting processes, and internal control system, to the same level of the financial reporting,” he said. “The bar will dramatically increase overnight, and if you did not start well in advance you could struggle to comply.” Other challenges include integrating both financial and ESG aspects when making decisions, assessing the long-term resilience of strategy and corporate health, and simplifying and streamlining reporting frameworks for clarity. The energy transition is not just about targets, indicators, and reports, but it also involves people, and engaging them to be part of the change, said Prysmian’s Chief Human Resources Officer, Fabrizio Rutschmann. “This is a cultural change and cultural changes do not normally happen in a second,” he told the event, adding that this was the reason for establishing the Sustainability Academy initiative. This aims to reach Prysmian’s more than 30,000 employees digitally, explaining sustainability themes from a broad perspective and showing how contributions can be made at the individual level. He said another tool being used to boost staff engagement is rewarding schemes based not only on financial factors but also taking into account ESG indicators. Prysmian’s Social Ambition for 2030 includes steps to improve gender equality and ethnicity inclusion, upskilling for employees, health and safety advances and projects supporting developing countries and vulnerable communities. “It is people that make the difference in the end. People are firstly people who work in Prysmian, but also communities in which we are working,” said Rutschmann. “We have more than 100 communities within which we work in our plants. It is important for people to know that the company is not looking only at profits, but it is also looking at how it can help communities to be better in the future.” THE ROLE OF PEOPLE INSIGHT | Going Green and Digital Fabrizio Rutschmann Prysmian’s Chief Human Resources Officer
12 Going Green, Going Digital: the twin transitions Carlo Carraro President Emeritus and Professor of Environmental Economics at the Ca' Foscari University of Venice CLIMATE SUBSIDIES ADOPTED BY EU AND US GOVERNMENTS WILL HAVE KNOCK-ON EFFECT ON TRADE "The climate-driven industrial policies recently adopted by the US and the EU will have an impact on international trade and economics alongside the beneficial effect of reducing global warming." Outlining some recently introduced US and EU climate-related industrial subsidies during Prysmian’s Sustainability Week 2023, Carraro firstly turned to the United States’ Inflation Reduction Act (IRA), signed into law by President Joe Biden in August 2022. This law calls for nearly $400 billion in subsidies and tax credits to encourage investment in green technologies, with the total amount uncapped. The IRA combines these incentives with local content requirements, which imply that eligible new power plants, electric vehicles or other infrastructure must be either produced in the United States or contain enough components made in the US.
13 This has roiled several trade partners, including the European Union, Britain, Canada and South Korea. Critics say it is protectionist, damaging for foreign manufacturers which could become uncompetitive on US markets, detrimental to global supply chains, and contrary to the rules of the World Trade Organization (WTO). “It is going to exclude some foreign producers from these kinds of subsidies, or favor relocation of producers to the United States in order to get the benefits of these subsidies. This is clearly inconsistent with WTO rules, and it may induce trade retaliations,” said Carraro, who is also Vice Chair of Working Group III at the Intergovernmental Panel on Climate Change (IPCC). Alongside the potential adverse effects for trade and competition that could lead to further restrictions and disputes, the subsidies may have a positive effect for the climate transition, by lowering prices for key technologies. “These subsidies reduce the price of these technologies and by reducing the price they help spread the technologies around the world” Carraro explained. Faced with this international scenario, the EU unveiled its Green Deal Industrial Plan this year, including the Net-Zero Industry Act (NZIA), which aims to support industrial manufacturing capacity and strategic and multi-country projects through fast-track permitting and developing European standards. It is designed in particular to boost EU capacity for netzero technologies such as solar photovoltaic and solar thermal power, heat pumps and geothermal energy, batteries and storage, and onshore and offshore wind power. This can help prevent the bloc from becoming more reliant on third countries such as China. INSIGHT | Going Green and Digital “The focus in the Net-Zero Industry Act is on fast permitting, but not only this; there are net-zero strategic projects, there are projects to attract new investments into these technologies, and the netzero industry academies to get the skills,” he said. The funding structure differs for the NZIA, with most of it to come from existing EU programs such as RePower EU, the Recovery and Resilience Facility, InvestEU and the Innovation Fund. Carraro said the EU was taking the right approach by focusing on its structural competitiveness and that it should not introduce local content requirements of its own, or loosen state-aid rules, or copy the IRA’s approach to manufacturing subsidies. In particular, he said the EU should adopt specific measures in favor of clean technologies. These include better regulation, green procurement rules and EU-level financing supporting new or early-stage clean-tech areas in which EU firms have the potential for sustainable competitive positions. Additionally, he suggested the EU should continue negotiating with the US administration to obtain an exemption from IRA local content requirements, and possibly launch WTO proceedings to obtain redress. “Diffusion of clean technology is important, and both the Inflation Reduction Act and the European Net-Zero Industry Act are aiming at targeting this important objective.” “We should focus on our own capacity to do better than the others and to be faster than the others and develop better technologies.”
14 Going Green, Going Digital: the twin transitions At Prysmian Group’s Sustainability Week 2023 industry experts, Andretti Autosport’s Group Commercial Director Jim Wright and Formula E Sustainability Director Julia Pallé together with Prysmian Group’s Chief Innovation and R&D Officer Srini Siripurapu, further remarked how the Formula E electric car racing series is constantly building on sustainability and innovation to drive progress in technologies that can influence the wider automotive sector, aiming to showcase the benefits and opportunities of decarbonized mobility. As a matter of fact, as Jim Wright told Prysmian Group's "Going Green and Digital event, the Andretti team works continuously on improving the technical and sustainable sides of motorsport in the most efficient way, focusing on four pillars: performance, product, sustainability, and cost. “You don’t make a decision just on performance, or just on the endproduct”, said Wright “at the end of the day, cost and sustainability are equally important factors and we are trying to advance electric mobility through motorsport as quickly and as safely and as sustainably as possible,” he added. According to the Intergovernmental Panel on Climate Change (IPCC), the transport industry is responsible for almost a quarter of the global energy-related carbon dioxide emissions, and road transport is the major contributor. FORMULA E: ADVANCING DECARBONIZED MOBILITY THROUGH MOTORSPORT Formula E is the world’s first full-electric racing series, featuring single seater cars racing on iconic street circuits around the world and an acknowledged a platform for the development of electric vehicle technology to accelerate change towards a greener future. In January 2023 Prysmian Group entered a sponsorship agreement with the Avalanche Andretti Formula E team for the Season 9 ABB FIA Formula E World Championship and became the first cable maker to partner with a Formula E team as major sponsor, with the goal of strengthening its value proposition by promoting innovation also in the strategic sector of e-mobility. Julia Pallé Formula E Sustainability Director Jim Wright Andretti Autosport’s Group Commercial Director
15 With most of the world’s transport still powered by polluting fossil fuels, phasing out petrol and diesel cars and promoting more environmentally friendly electric vehicles are crucial steps for governments around the world to meet decarbonization and net-zero targets. “The combination of sustainability and innovation seen in the Formula E racing series has encouraged the Group to collaborate with Andretti, due to the similarities in their work and goals, Prysmian Group’s Chief Innovation and R&D Officer Srini Siripurapu said during the summit. “I think one of the reasons why we decided to do this is that when we look at Formula E and at what the team is trying to do, there are some similarities with the opportunities and the challenges that we face, like pushing the boundaries of innovation and combining them with efficiency and sustainability,” he added. To help fight climate change, government and municipal authorities have introduced laws and incentives to encourage decarbonization of road transport. This presents risks but also opportunities to develop new products and services for companies including manufacturers and suppliers. Siripurapu said Prysmian Group is leveraging its involvement in the Formula E series to further advance in different aspects of technology with a vision on how the latest innovations can be implemented on a larger scale. “We are focusing mainly on materials, sensors and monitoring, and we are coming up with a deeper understanding of the electric vehicle charging infrastructure needs and opportunities in these areas”, he added. Notwithstanding some of the downsides of a widespread roll-out of electric vehicles like the availability of the charging infrastructure, the implications of charging times, and the upfront cost, the benefits are undeniable: helping to reduce polluting emissions, the advantages of electric cars also include reduced maintenance, lower operating costs, enhanced efficiency and reduction of noise pollution. “Formula E has been built around racing in cities because that is where we have on the one side the problem of air pollution and on the other side the advancing of electric vehicles. This is a unique perspective, which makes it really difficult from the logistical point of view, but, at the same time, turns out to be an extremely powerful backdrop”, she claimed. “Now in its nineth season, the Formula E series has been experiencing a remarkable year-onyear surge in terms of social media and broadcast figures”, she added, “fueled by interest from younger audiences, such as families, concerned about how climate change could impact the future of their children”. Expectations are high in the industry that sooner or later the Formula E could converge with the more traditional Formula 1 racing series. Wright said that the timing of this convergence would likely be linked to how quickly the technology can develop. “With the available technology we can afford 40-minute races Formula 1 races are much longer, they are about 1 hour and 40 minutes,” he said. “When batteries will be capable of providing the energy required for the same time, that will be the point of convergence”. RISKS AND OPPORTUNITIES INSIGHT | Going Green and Digital Formula E seeks to increase public understanding and interest in the sustainable side of electric mobility. At the same time, it is also an ideal arena for new technologies to be tested. Formula E Sustainability Director Julia Pallé confirmed that races take place on street tracks in cities on purpose and as a way to raise awareness on these advantages and benefits.
16 Going Green, Going Digital: the twin transitions SUSTAINABILITY CALL 4 IDEAS: your answers for our sustainability The aims of the initiative are to raise awareness and engagement around sustainability, embed sustainability in the ways of working at a regional and factory level, and to identify highpotential project to enhance the impact of Prysmian Group on sustainability targets. Directed at both desk and non-desk workers, the initiative has been managed separately in each of Prysmian’s nine regions, and ideas have been gathered in four areas: Safety, Customers, Inclusion, and Materials Products & Processes. Selected ideas include increasing cables recycled content in Prysmian products, enhancing recyclability, developing virtual reality tools for safety training, and offering science and technology courses at local schools to encourage curiosity and interest in innovation. “Sustainability is an important topic for our Group and our goals can be achieved only with the contribution of each one of us. That’s why we started this initiative to give all the regions the chance to reflect upon the topic and set their priorities by carrying out the most promising ideas locally and supporting them to be scaled up at a global level.” Srini Siripurapu Prysmian's Chief R&D and Innovation Officer The Call 4 Ideas attracted more than 1.100 ideas globally, submitted by over 1.000 employees that participated individually or in teams. Prysmian Group’s Sustainability Call 4 Ideas is an initiative launched by Prysmian Group in February 2023 addressed to the whole Prysmian population to collect employees’ ideas in key topics related to sustainability and select the ones that will be implemented locally and potentially scaled up worldwide.
17 The ideas were collected through PryInnova, the new open innovation platform for Prysmian Group, hosted on its own intranet and managed by Prysmian’s Venture Builder Corporate Hangar. The ideas have been assessed by local category champions, and local juries have selected those to pursue. They have then been reviewed globally, and similar ideas in different regions have been linked to promote best practice sharing and cross-functional collaboration. Some planning has also started on how to execute the projects. During Prysmian’s Sustainability Week 2023 at the end of June, the submitters of the selected ideas were invited to share their projects in the “Sustainability Fair”, showcasing them to the top management and the other regions. Each region had its own pavilion and the chance to present its ideas to both internal and external stakeholders. “Sustainability and innovation are so intertwined, that we are combining the Sustainability Week with an innovation fair, with ideas coming from our regions, coming from our businesses, to make sure that from tomorrow we can implement solutions driven by sustainability at the regional level and at the global level,” said Prysmian’s Chief Sustainability Officer Cristina Bifulco. “The entire Prysmian population has the chance to be aligned on the main relevant topics in terms of environmental and social sustainability and to give their contribution to shape the sustainability of the Group in the next few years.” From July onwards, the next step is to scale up the selected projects in the regions, and potentially also at the global level. Call 4 Ideas THE NUMBERS 1.100 more than ideas globally 1.000 over employees
18 Going Green, Going Digital: the twin transitions SOLID SALES AND STRONG MARGIN IMPROVEMENT in the first half of 2023 FULL-YEAR 2023 guidance upgraded ADJUSTED EBITDA seen at €1.575-1.675 Bln vs €1.375-1.525 Bln range announced in March FREE CASH FLOW seen at €550- 650 Mln vs €450-550 Mln announced in March ROBUST BUSINESS PERFORMANCE fueled by energy transition and electrification 1H SALES REACH €8.003 Bln, Organic growth at 4.8% ADJUSTED EBITDA grew by 25.6% to €878 Mln, margins reach 11% (up from 8.8% in 1H 2022) GROUP NET PROFIT increased 56.4% to €405 Mln STRONG CASH GENERATION with LTM Free Cash Flow at €567 Mln CAPITAL MARKETS DAY scheduled for October 5 Valerio Battista Chief Executive Officer “Sales growth and, above all, the significant profitability improvement for the first half of 2023 are mainly attributable to our well-balanced business portfolio, both in terms of products offered and geographies. The Group also confirmed its ability to seize the opportunities offered by the energy transition and electrification processes, which require power transmission and distribution grid hardening and development. Worthy of mention is also the strong growth of cash flows from positive business performance and profitability. This allows the Group to support its investments and consolidate its leadership and competitive advantage, at a time when our sector plays an increasingly central and strategic role. The nearly €5.4 billion new orders acquired in the first half of the year clearly confirm the trust that the market places in us. In light of all of the above, we significantly upgrade our guidance for the full year 2023.”
19 reached €8.003 billion in 1H 2023, achieving organic growth of 4.8%. The Projects business recorded particularly strong organic sales growth of 23.5%, thanks to significant execution progress in offshore wind farm interconnection and cabling projects. The 3.4% organic growth of sales in the Energy business was driven by utilities’ focus on grid hardening and rising demand for wind turbine and solar panel cables. The telecom segment meanwhile saw a 5.2% fall in organic sales mainly due to the decline in the American market. increased by 25.6% to €878 million, with the ratio to sales significantly improving to 11.0% compared to 8.8% for 1H 2022. The Projects business chiefly benefited from the most profitable mix of projects that entered their execution phase in 1H 2023 (Adjusted EBITDA margin at 11.0%). In the Energy business, the strong demand for Power Distribution and Renewables cables allowed the Group to support the price levels with an ensuing profitability benefit (Adjusted EBITDA margin at 10.4%). With regard to Telecom, the Group’s profitability remained substantially stable in 1H 2023 (Adjusted EBITDA margin at 14.8%), despite a volume slowdown chiefly in the North American market. grew to €828 million (€665 million in 1H 2022) including net expenses for company reorganization, net non-recurring expenses and other net non-operating expenses totaling €50 million (€34 million in 1H 2022). r os e to €636 million compared to €423 million in 1H 2022, while Net Profit attributable to owners of the parent rose to €405 million compared to €259 million for the same period of 2022 (+56.4%). declined to €2.065 billion at the end of June 2023 (€2.330 billion at 30 June 2022). The Group was able to translate the sharp profitability increase into cash flows, recording Free Cash Flow at €567 million in the past 12 months. This was thanks to: \ €1.603 billion operating cash flows (before changes in net working capital); \ €160 million cash flows absorbed by the increasing net working capital; \ €498 million cash outflows in net capital investments; \ €327 million taxes paid; \ €61 million net finance expense; \ €10 million dividends received from associates. Group Sales Net Financial Debt Adjusted EBITDA EBITDA Operating Income Financial highlights Prysmian Group expects growing results in the Energy segment in 2023, with a slowdown in the sectors linked to the construction market following last year’s excellent performance. Businesses linked to grid hardening, renewables and industrial applications are expected to expand. In the high-voltage underground and submarine cables and systems business, the Group aims to confirm its leadership on a market that is expected to grow, driven by the development of offshore wind farms and interconnections in support of the energy transition. Thanks to the level achieved by its order book, which exceeded €9 billion, the Group can fully exploit the potential of both its actual and new planned assets, such as the submarine cable plant in Brayton Point, Massachusetts, the increased production capacity in Europe and the new cable-laying vessel Mona Lisa that will join the Leonardo Da Vinci. For the Projects segment, the Group expects results to grow in 2023 compared to the previous year, thanks to the level of its order book, a solid execution, a better mix of the projects under execution, and the full use of the submarine cable business’s capacity. Demand in the Telecom segment is meanwhile affected by a temporary slowdown in the US market, with growth drivers that remain solid in the medium/long term thanks to digitalization. INSIGHT | Financial Highlights
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