CONSOLIDATED FINANCIAL STATEMENTS >
DIRECTORS’ REPORT
52
| 2013 ANNUAL REPORT | PRYSMIAN GROUP
SEGMENT PERFORMANCE: ENERGY BUSINESS
Slightly higher profitability despite lower sales.
(*) Includes the Draka Group’s results for the period 1 March – 31 December 2011.
(in millions of Euro)
2013
2012
% change
2011 (*)
Sales to third parties
6,018
6,382
-5.7%
6,268
Adjusted EBITDA
492
487
1.0%
447
% of sales
8.2%
7.6%
7.1%
EBITDA
469
417
12.5%
186
% of sales
7.8%
6.5%
2.9%
Amortisation and depreciation
(105)
(108)
-2.9%
(99)
Adjusted operating income
387
379
2.1%
348
% of sales
6.4%
5.9%
5.5%
RECONCILIATION OF EBITDA TO ADJUSTED EBITDA
EBITDA (A)
469
417
12.5%
186
Non-recurring expenses/(income):
Company reorganisation
33
53
42
Antitrust
(6)
1
205
Draka integration costs
-
4
2
Tax inspections
-
1
-
Environmental remediation and other costs
(3)
3
5
Italian pensions reform
-
1
-
Release of Draka inventory step-up
-
-
8
Gains on asset disposals
(4)
(3)
(1)
Other net non-recurring expenses
3
10
-
Total non-recurring expenses/(income) (B)
23
70
261
Adjusted EBITDA (A+B)
492
487
1.0%
447
Energy business sales to third parties amounted to Euro 6,018
million in 2013, compared with Euro 6,382 million in 2012,
posting a negative change of Euro 364 million (-5.7%).
This negative change is attributable to the following principal
factors:
• negative exchange rate effects of Euro 209 million (-3.3%);
• negative organic growth of Euro 65 million (-1.0%);
• negative change of Euro 134 million (-2.1%) in sales prices
due to fluctuations in metal prices;
• negative change of Euro 20 million (-0.3%) due to non-
consolidation of the results of Ravin Cables Limited
(India) and Power Plus Cable CO LLC (Middle East – 49%
consolidated), both of which deconsolidated since
1 April 2012;
• positive change of Euro 64 million (+1.0%) due to
consolidation of Prysmian Powerlink Services Ltd (formerly
Global Marine Systems Energy Ltd) as from November 2012.
Adjusted EBITDA for 2013 came to Euro 492 million, posting an
increase of Euro 5 million (+1.0%) on the corresponding figure
of Euro 487 million in 2012.
The following paragraphs describe market trends and financial
performance in each of the Energy segment’s business areas.
