CONSOLIDATED FINANCIAL STATEMENTS >
DIRECTORS’ REPORT
60
| 2013 ANNUAL REPORT | PRYSMIAN GROUP
FINANCIAL PERFORMANCE
Organic growth in sales, thanks to increased demand in high value-added businesses.
Sales to third parties by the Industrial business area amounted
to Euro 1,765 million in 2013, compared with Euro 1,801 million
in 2012. The reduction of Euro 36 million (-2.0%) is due to the
following factors:
• positive organic growth of Euro 75 million (+4.1%),
largely due to the growth in volumes in high value-added
businesses (Specialties&OEM, Oil&Gas and Elevator) despite
the slowdown in the renewable energy sector; positive
results for the Automotive business;
• negative change of Euro 5 million (-0.2%) 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;
• negative exchange rate effects of Euro 69 million (-3.9%);
• negative change of Euro 37 million (-2.0%) in sales prices
due to fluctuations in metal prices.
In Europe, Prysmian Group benefited from a solid order book
for the top-end OEM sector (cables for Cranes and Mining for
South American and Asian markets) and continued to focus
its commercial efforts on the Oil&Gas industry, where it was
able to benefit from the growth in demand by the North Sea oil
industry, served by the Norwegian and British markets, despite
a steep downturn in exports to energy-producing nations in
the Middle East.
However, this managed to offset only in part the dramatic
decline in volumes in the renewable energy sector, most
evident 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, where it is still underexposed.
As for SURF products, sales of umbilical cables and flexible
pipes, manufactured for the South American market at
the Vila Velha plant, were in line with 2012 despite the
rescheduling of investment projects requiring flexible pipes.
The Down-Hole-Technology (DHT) business performed
particularly well in North America, thanks to the renewed
contract with Schlumberger.
Asia Pacific and Brazil were the regions that offered the
Group the most attractive growth opportunities, thanks to
consolidation of its market share in Australia and the award
of major international projects in Brazil.
Adjusted EBITDA came to Euro 134 million in 2013, down
Euro 5 million (-3.6%) on Euro 139 million in 2012, mainly
due to lower volumes in the renewable energy sector and the
postponement of onshore and offshore projects in the Middle
and Far East.
OTHER
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 pro-forma figures are calculated by aggregating the Draka Group’s results for the two-month pre-acquisition period (January-February) with the
consolidated figures.
(in millions of Euro)
2013
2012
2011 (*)
Pro-forma
Sales to third parties
115
135
167
Adjusted EBITDA
5
1
5
Adjusted operating income
1
(3)
2
