CONSOLIDATED FINANCIAL STATEMENTS >
DIRECTORS’ REPORT
24
| 2013 ANNUAL REPORT | PRYSMIAN GROUP
value through the adoption of a system of governance and a
business model that allows such results to be sustained in the
long run.
“Healthy” management and financial discipline
. The Group
aims to implement “healthy” and prudent principles in its
financial management. In particular, it pays great attention to
operating profitability and cash generation, with a particular
focus on working capital management and the reduction of
fixed costs and capital employed in order to maximise cash
flow generation and the return on investment. The Group also
aims to maintain adequate financial leverage for its strategy
of organic and acquisition-led growth.
Transparency, good Governance and confidence of markets
and investors
. The Group pays particular attention to its
relations with financial markets, shareholders and investors,
also because of its public company status. Its focus in this
sense is on ensuring precise maintenance of commitments
and delivery of target results. Transparency and credibility
are also expressed in a system of corporate governance based
on compliance with the related rules and guidelines and
the adoption of standards drawn from international best
practices.
Expansion and balanced growth
. The Group’s development
strategy follows the dual track of growth in size and
continuous improvement in profitability. When deciding in
which business sectors and geographical areas to expand,
the Group tends to give priority to the maintenance of
adequate levels of profitability, even at the expense of growth
in market share, whose preservation is nonetheless treated
as vitally important, especially in high value-added market
segments. The Group therefore pursues both organic growth
of the business, based on a selective investment policy and
development of commercial and production synergies, and
acquisition-led growth. The search for growth opportunities,
both organically and through acquisitions, is primarily focused
on higher value-added high-tech businesses, such as High
Voltage Underground and Submarine Cables and Systems,
Cables for the Renewable Energy sector, Cables for the
Extraction, Mining and Petrochemicals sector, Industrial Cables
for infrastructure, as well as Optical Fibres and Optical Cables
for the development of broadband networks. These businesses
are linked to long-term investment programmes and so are
less affected by economic cycles. In terms of geographical
expansion, the Group mainly invests in countries and markets
capable of ensuring high rates of growth and profitability. The
role of Prysmian in the fragmented cable industry will continue
to be that of an “aggregator”, capable of serving as a leader in
the current processes of rationalisation and consolidation.
Rationalisation and efficiency of industrial and commercial
processes
. Prysmian has consolidated over time the ability to
optimise its industrial processes, including by integrating and
rationalising acquired companies. In line with its objectives, the
Group is successfully pursuing synergies with Draka, on both
the organizational and commercial fronts, involving integration
of product ranges and enhancement of customer service.
