|Type||Società per azioni|
|Traded as||BIT: PRY|
|Founded||2011 through merger
(est. 1879 as Pirelli Cavi e Sistemi)
|Key people||Valerio Battista (CEO), Massimo Tononi (Chairman)|
|Products||Telecommunications and power cables|
|Revenue||€7.273 billion (2013)|
|Operating income||€457 million (2013)|
|Profit||€154 million (2013)|
|Total assets||€5.702 million (2013)|
|Total equity||€1.195 million (2013)|
The Prysmian Group is an Italian-based multinational corporation headquartered in Milan, operating in the Energy and Telecom cables and systems industry. It is the largest manufacturer of cables in the world measured by revenues.
Prysmian Group has sales of some €7 billion in 2013 and employs about 19,000 employees across 50 countries, 91 production plants and 17 Research and Development centres.
Prysmian Group is a public company, listed on the Milan Stock Exchange in the FTSE MIB index.
Prysmian Group was created in 2011 through the union of Prysmian and Draka, both market leaders for innovation and technological know-how in the cable industry. In 2009, Italian cable manufacturer Prysmian made a takeover offer for Draka, but doubts began to emerge in August. Prysmian called off the takeover talks in early September. In October 2010, French cable maker Nexans made a €15/share offer to buy the 43.9% of the company held by Flint Beheer, an investment fund owned by the wealthy Fentener van Vlissingen family. Nexans indicated that it would sell off Draka's telecommunications activities. However, Draka rejected Nexans' offer, and on 22 November 2010 instead accepted Prysmian's new offer of €17.20/share (9.1x EBITDA). Prysmian intended to integrate Draka's operations into their own, rather than breaking it up; integration costs are estimated at €170 million over three years. The merger of Prysmian and Draka, and the integration of the two market-leading companies, culminated in the creation of the world's largest cable maker by revenue, the Prysmian Group.
Prysmian was originally founded in 1879, as Pirelli Cavi e Sistemi. Indirectly controlled by The Goldman Sachs Group Inc., the company signed an agreement in 2005 to purchase the Cables and Systems division of Pirelli & C. S.p.A. On June 1, 2005, Prysmian Srl signed an agreement to purchase the Energy Cables and Systems and Telecom Cables and Systems activities of Pirelli & C. S.p.A. The transaction was completed on July 28, 2005, after regulatory approval by the relevant antitrust authorities. On January 16, 2007 Prysmian Srl was transformed into a stock corporation called Prysmian SpA and quoted in the FTSE Mib index of the Milan stock exchange. On 22 November 2010 Prysmian announced its intention of making a public mixed exchange and cash offer for the shares of Draka. The offer was launched on 5 January 2011 and concluded successfully on 8 February 2011.
Draka was founded in 1910 by Jan Teewis Duyvis as Hollandsche Draad & Kabel Fabriek. In 1970, Draka was acquired by Philips and became part of the Philips' Wire and Cable division. Through a buyout financed by Parcom and Flint Beheer, Draka became independent in 1986 at which point the name Draka was born. It formerly had a joint venture with Alcatel-Lucent for manufacturing optical fibre, but bought out its partner's 49.9% stake for €209 million in December 2007.
Analysis of Prysmian Group’s 2013 financial statement:
2013 sales were €7,273 million (Organic growth -3,1%), Adj. EBITDA were €612 million (-5,5%), Adj. operating income €457 million (-5,41%) and Adj. net profit €268 million (-4,3%). Net Financial Position €834 million as of 31 December 2013 versus €918 million as of 31 December 2012.
Prysmian Group is involved in the development, design, production, supply and installation of a wide range of cables for many different applications in the energy and telecom cables and systems industry. Prysmian Group has its corporate headquarters in Milan, Italy. It operates in 50 countries with 91 plants and employs around 19,000 people as of 31 December 2013.
The Group is organised in two operating sectors: Energy and Telecom, comprising 17 business units:
- Business Energy Projects and Business Energy Products
- Comprising 14 divisions: Accessories & Services, Aerospace, Automotive, Elevator, Heavy Industry, HV & Submarine, Infrastructure, Military & Defense, Oil & Gas, Power Distribution, Renewable Energy, Specialties & OEM, Trade & Installers, Transportation.
- Telecom Sector
- Comprising three divisions: Fibre, Multimedia, Telecom Solutions
In the Energy sector, Prysmian Group is organised in multiple business units and operates in the business of underground and submarine systems, special cables for applications in many different industrial sectors and medium and cables for the construction and infrastructure industry.
Prysmian engineers, produces and installs high voltage and extra high voltage cables for underground and submarine power transmission cables transmission directly from power stations or offshore wind farms to the primary distribution grids. The solutions offered include turnkey submarine cable systems for installation at depths of up to 2,000 metres, possible thanks to the Group's cable-laying vessels "Giulio Verne".
The Group also offers services for the construction of submarine power lines particularly serving offshore wind farms, and supplies wind turbine, inter-array and export cables. In the field of power distribution, the Group produces medium voltage cables and systems to connect industrial and residential buildings to primary distribution grids and low voltage cables and systems for power distribution and the wiring of buildings.
Within the Industrial business unit, Prysmian Group offers integrated cabling solutions for a wide variety of industrial sectors.
Active in the wind and solar energy markets, Prysmian Group produces connections for offshore wind farms, with the technology to supply both wind turbine and inter-array cables.
Oil & Gas and SURF
Prysmian Group offers the petrochemicals market solutions for offshore and onshore exploration and production activities, and for hydrocarbon refining. The product range includes low and medium voltage cables, power cables, and instrumentation/control cables; special DHT (Downhole Technology) cables, which include cables to control downhole instrumentation, power cables and hydraulic fluid cables; multipurpose umbilical cables to transport energy, telecommunications, fluids and chemicals, which together with flexible pipes and ducts for offshore oil drilling, allow the Group to offer the industry a comprehensive range of SURF (Subsea Umbilical, Riser and Flowline) products and services.
The Group produces standard and specialist cables for the automotive and transport industry.
Prysmian Group's Elevator business produces a wide range of products for the elevator market, such as flexible connectorised cables and hoistway cables, in response to global demand for high-performance, durable and safe cables and parts.
Specialties and OEM
Cable systems for various specific industrial applications such as trains, aircraft, ships, port systems, cranes, mining, nuclear industry, defense and the electromedical sector.
In the Telecom sector, the Group makes cable systems and connectivity products used in telecommunication networks. The product portfolio includes optical fibre, optical cables, connectivity components and accessories, OPGW (Optical Ground Wire) and copper cables. In the Telecom sector, the Prysmian Group is organized in three business units.
Prysmian Group manufactures single-mode, multimode and specialty optical fibres with centres of excellence in Battipaglia (Italy), Eindhoven (Netherlands) and Douvrin (France), and 4 other production sites around the world.
Prysmian Group supplies passive connectivity solutions. The Group's approach in the Telecom Solutions business unit is based on combining existing technologies with innovative, new solutions allowing fibres to be deployed in high-rise buildings and multi-dwelling units. Many of the cables used in FTTx systems feature Prysmian's bend-insensitive BendBrightXS optical fibre, which has been specially developed for this application.
Within the Telecom Solutions business unit, Prysmian Group also produces copper cables for underground and overhead cabling solutions and for both residential and commercial buildings. The product portfolio comprises cables of different capacity, including broadband xDSL cables and those designed for high transmission, low interference and electromagnetic compatibility.
The Group's Multimedia Solutions business unit produces cable solutions serving communication needs in infrastructure, industry and transport for a variety of applications: cables for television and film studios, cables for rail networks such as underground cables for long-distance telecommunications, light-signalling cables and cables for track switching devices.
Research & Development
Prysmian Group has 17 research & development centres with over 500 skilled professionals. Spending on R&D in 2013 amounted to approximately €68 million.
As of 31 December 2013, the Prysmian Group had 5,731 patents and patent applications throughout the world, covering 905 inventions. During 2013, 37 new patent applications were filed, of which 23 in the Telecom business and 14 in the Energy sector. 209 patents were granted after examination, of which 37 by the European Patent Office (EPO) and 59 in the United States.
At 31 December 2013, the share capital of Prysmian S.p.A amounted to Euro 21,459,171.00, comprising 214,591,710 ordinary shares with a nominal value of Euro 0.1 each. The ownership structure at this date was as follows.
- CLUBTRE SRL – 6.2%
- Norges Bank 2.2%
- JP Morgan Chase & Co. Corporation – 2.2%
- State Street Global Advisors Ireland – 2.1%
- T. Rowe Price Associates Inc. – 2.0%
Board of Directors
- Chairman: Massimo Tononi
- Chief Executive Officer and General Manager: Valerio Battista
- Director: Massimo Battaini
- Independent director: Maria Elena Cappello
- Independent director: Cesare d’Amico
- Independent director: Claudio de Conto
- Independent director: Giulio del Ninno
- Director and Chief Financial Officer: Pier Francesco Facchini
- Independent director: Friedrich W. Frohlich
- Director: Fabio Romeo
- Independent director: Giovanni Tamburi
20 December 2013, Prysmian Group announced a new organisational structure and management appointments. Made effective on 1 January 2014, Prysmian Group's top management consists of the following members:
- Chief Executive Officer: Valerio Battista
- Chief Strategy Officer: Fabio Romeo
- Chief Financial Officer: Pier Francesco Facchini
- Chief Operating Officer: Andrea Pirondini
- Senior Vice President Energy Projects: Massimo Battaini
- Senior Vice President Energy Products: Hans Nieman
- Senior Vice President Telecom Business: Philippe Vanhille
Build the Future, launched in 2012, is Prysmian Group’s international Graduate Program. It is an international three-year development program for graduates with a Bachelor’s degree in engineering or business administration or graduates who are currently working towards one. The Graduate Program includes a one year local job rotation: 6 months in product technology, 3 months in operations and 3 months in customer relations, followed by a two year international placement in either Sales, Operations, R&D or Staff functions. Graduates have the chance to apply for a Junior Management role after successfully finishing the Graduate program. Prysmian Group hired 50 new graduates in the last 6 months of 2013.
In 2013 Prysmian Group improved the Application Level of its Sustainability Report, determined in accordance with the Guidelines of the Global Reporting Initiative, from C+ to B+. It achieved ISO 14001 certification for two facilities in France and Italy and OHSAS 18001 for three plants. The Group was recognized by the CDP (formerly the Carbon Disclosure Project) in 2013 as the "Best Newcomer" within the Italy 100 panel and took part in RobecoSAM's assessment for inclusion in the Dow Jones Sustainability Index.
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