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CONSOLIDATED FINANCIAL REPORT | EXPLANATORY NOTES
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of the production process, in turn permitting faster execution of the project itself, as well as stronger
contractual guarantees and longer project timing agreed with the customer.
Plant closures
On 27 February 2015, Prysmian Cavi e Sistemi Italia S.r.l. informed trade union representatives of the
closure of the Ascoli Piceno plant, employing 114 people, dictated by the need to optimise overall country
manufacturing footprint through improved utilisation of production capacity, as well as overall economic
performance through economies of scale.
After a series of meetings at Italy's Ministry of Economic Development, on 15 May an agreement was signed
with plant union representatives and provincial and national unions that ratified the plant's closure on the
same date and the contents of the social plan.
In addition to the usual voluntary redundancy packages and use of the available social safety nets, the social
plan has offered employees the opportunity to relocate to the plants in Merlino and Arco Felice or,
alternatively, to be included in an outplacement program within the local area, also involving a possible re-
industrialisation of the site. Both these activities are being managed by a specialist advisor.
Share buy-back and disposal programme and Long-term incentive plan 2015-2017
The Shareholders' Meeting held on 16 April 2015 authorised a share buy-back and disposal programme,
revoking at the same time the previous authorisation under the shareholder resolution dated 16 April 2014.
This programme provides the opportunity to purchase, on one or more occasions, a maximum number of
ordinary shares whose total cannot exceed 10% of share capital, equal to 18,847,439 ordinary shares as at
the date of 16 April 2015, after deducting the treasury shares already held by the Company.
The same Shareholders' Meeting also approved an incentive plan for employees of the Prysmian Group,
including members of the Board of Directors of Prysmian S.p.A., and granted the Board of Directors the
necessary powers to establish and implement this plan.
The reasons behind the introduction of the Plan are:
to generate strong commitment by the Group's Management to achieving the targets for additional
growth in profits and return on capital employed over the next three years;
to align the interests of Management with those of shareholders by using share-based incentives,
and promoting stable share ownership of the Company;
to ensure the long-term sustainability of the Group's annual performance through the mechanism of
co-investing part of the annual bonus and consequent retention effect.
During the extraordinary session of the above meeting, the shareholders authorised an increase in share
capital by a maximum amount of Euro 536,480, through the issue of up to 5,364,800 new ordinary shares
with a nominal value of Euro 0.10 each, to be allotted for no consideration to Group employees who are
beneficiaries of the above incentive plan.