163
and installers market for the wiring of buildings and
distribution of electricity to or in commercial and
residential buildings, including fire-resistant and low
smoke halogen-free cables as part of one of the widest
and most comprehensive product ranges in the world;
3. Industrial: cables and accessories for special
industrial applications based on specific requirements
(Specialties&OEM; Oil&Gas; Automotive; Renewable;
Surf; Elevator);
4. Other: occasional sales of residual products.
B) Telecom operating segment: produces cable systems and
connectivity products used in telecommunication networks.
The segment is organised in the following lines of business:
optical fibre, optical cables, connectivity components and
accessories, OPGW (Optical Ground Wire) and copper cables.
All Corporate fixed costs are allocated to the Energy and
Telecom segments. Revenues and costs are allocated to
each operating segment by identifying all revenues and
costs directly attributable to that segment and by allocating
indirect costs on the basis of Corporate resources (personnel,
space used, etc.) absorbed by the operating segments.
Group operating activities are organised and managed
separately based on the nature of the products and services
provided: each segment offers different products and
services to different markets. Sales of goods and services are
analysed geographically on the basis of the location of the
registered office of the company that issues the invoices,
regardless of the geographic destination of the products sold.
This type of reporting does not significantly differ from the
breakdown of sales of goods and services by destination of
the products being sold. Transfer pricing between segments
is determined using the same conditions as applied between
Group companies and is generally determined by applying a
mark-up to production costs.
