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PRYSMIAN GROUP | DIRECTORS’ REPORT

120

A partnership has been started with an American organisation to define new composite armouring

systems for submarine cables, umbilicals and flexible pipes.

Research has been started to find substances able to absorb water in a stable way without release.

The purpose of this research is to construct new barriers in place of metal in telecom and submarine

cable production.

Research has begun to develop oil-resistant polymers, starting with both thermoplastic and cross-

linkable materials: this development could bring significant benefits especially for Oil & Gas

applications.

New Afumex compounds have been introduced to replace the previous versions. Work is currently in

progress to develop and optimise new high performance recipes for the top CPR classification levels.

There has been continued research into new recipes for compounds that leave a particularly small

volume of ash in the event of fire.

Research continues into alternative materials for diversifying the supplier base and reducing sole

supplier risk as much as possible, especially in the case of key materials in both commercial and

technical terms. In some cases, this requires long laboratory experimentation and collaboration with

suppliers.

Lastly, work on cost optimisation continued throughout the year. The package of DTC (Design to Cost)

projects, of which there are now 1,200, made it possible to make progress in the process of rationalising

compounds and optimising cable design. All these R&D activities resulted in a saving of some Euro 29

million in 2015, helping to enhance the competitiveness of our products.

Intellectual property rights

Protecting its portfolio of patents and trademarks is a key part of the Group's business, particularly in view of

its strategy of growth in high-tech market segments. In particular, the Group's intense R&D activities, in the

Energy Projects, Energy Products and Telecom operating segments, have allowed it to continue to add to its

patent portfolio, especially in high-tech and higher value-added areas, in order to support its major

investment in these areas in recent years and to protect the related businesses, both now and in the future.

As at 31 December 2015, the Prysmian Group had 4,785 patents and pending patent applications

throughout the world, covering 771 inventions (of which 228 in the Energy Projects and Energy Products

segments and 543 in the Telecom segment). During 2015, 45 new patent applications were filed, of which 20

in the Telecom area and 9 in the Energy area, and 164 patents were granted after examination, of which 17

by the European Patent Office (EPO) and 34 in the United States.

The most important products, typically distinguished by particular characteristics or a specific production

process, are protected by trademarks that allow them to be identified and guarantee their uniqueness. As at

31 December 2015, the Prysmian Group owned 589 trademarks, corresponding to 2,762 trademark