INSIGHT Issue 4|2014

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QUARTERLY OVERVIEW
4 Prysmian Group Insight
Slightly positive organic growth
Continued increase in Telecom volumes
The approved financial
of 2014 showed generally stable
profitability, excluding the adverse
impact of the Western Link project.
CEO Valerio Battista explained that
the pace of volume recovery in the
telecom cables business continued
to exceed expectations, while the
building cables market is showing a
slight improvement in volumes.
Positive performance in North
America and Asia has served as
a partial counterbalance to the
weak environment in Europe and
deterioration in South America.
Group sales amounted to €5,014
million, compared with €5,297
million one year earlier, posting
organic growth of +0.2% assuming
the same group perimeter and
excluding metal price and exchange
rate effects. Without the Western
Link effect, organic growth would
have been +1.7%, confirming an
upsurge in volumes in the Trade &
Installers and Telecom businesses.
Adjusted EBITDA was €355 million,
or €438 million excluding Western
Link, which is basically in line with
the first nine months of 2013 (€442
million).
The policy of targeted investments
in the higher value-added
businesses has also continued,
with a new €40 million plan for
the submarine cable plants in Arco
Felice, Italy and Pikkala, Finland.
Adjusted operating income came
in at €249 million, or €332 million
excluding Western Link (in line with
€333 million in the first nine months
of 2013). Net finance income and
costs reported a negative balance
of €108 million, down from €114
million in the first nine months of
2013, thanks to the improvements
in financial structure and in the
cost of Group debt. Adjusted net
profit was €134 million; however
excluding the Western Link project,
it would have been €191 million,
up +6.7% from the first nine
months of 2013. The net financial
position at the end of September
2014 was €1,292 million, compared
with €1,193 million at the end of
September 2013, with the target
to achieve approx. €900 million by
year end.
The Board of Directors also
decided to launch a share buy-
back programme with a maximum
total value of €50 million, with the
purpose of providing the company
with a ‘pool of securities’ to be used
for possible extraordinary corporate
actions, meeting obligations arising
from debt instruments convertible
or supporting the share-based
incentive plans for the Group’s
employees.
Good performance for Power
Transmission and Telecom.
Ongoing volume improvement
in Trade & Installers. The
launch of a share buy-back
programme.
Sales at €5,014 million and ADJ. EBITDA at €355 million in the first nine months
Profitability in line with last year, excluding the WL effect
Adj. EBITDA evolution (Euro million)
2013
Q1 Q2 Q3 9M
2014
Western Link
114 115
168 160
442 438
160
151
126
355
163
78
37
37
83
9