ANNUAL REPORT 2015

PRYSMIAN GROUP | DIRECTORS’ REPORT

Customer centrality and satisfaction are a strategic approach that is implemented by having a fast, smooth

organisation throughout the supply chain, capable of expediting decision-making and time to market by

adapting itself to the needs of the various industries through continuous investment in innovation.

One of the ways of implementing customer centricity is through

Factory Reliability

, a process that makes it

possible not only to improve the reliability of planning and the execution of manufacturing output, in terms of

both mix and volumes in ever faster response times, but also to have stricter control over inventory levels for

every type of stock (raw materials, intermediate and finished goods); this enables the Group to deal

effectively and efficiently with upswings and downswings in sales volumes and consequent variation in

manufacturing output.

In addition to the Customer Centricity and Factory Reliability propositions, Prysmian Group has also started

Supply Chain Integration

projects with some of its most important global customers with the goal of

improving process effectiveness and efficiency throughout the supply chain, from the producers of raw

materials and intermediate goods used in manufacturing through to the end cable user.

CORPORATE GOVERNANCE

Effective and efficient, in order to create long-term sustainable value and produce a virtuous circle with

business integrity at its centre.

Prysmian is aware of the importance of a good corporate governance system in order to achieve strategic

objectives and create long-term sustainable value, by having a system that is

effective

in complying with the

legal and regulatory framework,

efficient

in terms of cost-effectiveness, and

fair

towards all the Group's

stakeholders.

Accordingly, the Prysmian Group keeps its corporate governance system constantly in line with latest

recommendations and regulations, adhering to national and international best practices.

In addition, the Group has put in place standards, rules and procedures that govern and guide the conduct of

activities by all its organisational and operating structures, as well as ensuring that all business transactions

are carried out effectively and transparently.

Once again in 2015, Prysmian undertook several initiatives to implement the recommendations of the

Corporate Governance Code

, to which it has adhered.

"Corporate Governance Code for Listed Companies - Ed. July 2015" - approved by the Corporate Governance Committee and

promoted by Borsa Italiana S.p.A., ABI, Ania, Assogestioni, Assonime and Confindustria