Strategy of the Group

Strategy

OVERVIEW

Development strategies and objectives

Prysmian is a world leader in the energy and telecom cables and systems industry, a position it has achieved through strategic decisions aligned with its medium- to long-term growth objectives. These objectives are rooted in the shared principles of the company's Vision and Mission.

Prysmian expresses in its Vision that it believes the efficiency, effectiveness, and sustainability of energy and information delivery are essential for the development of communities. In its Mission, Prysmian is dedicated to creating and implementing technologically advanced solutions that provide customers worldwide with cables and systems for energy and telecommunications. These solutions are designed to be effective, efficient, and, above all, sustainable to meet their customers' needs.

Prysmian aims to enable economic and social development in the countries where it operates, demonstrating the essential role played by the cable industry. By promoting industry-wide improvements and developing state-of-the-art products, Prysmian aligns its growth strategy with its commitment to innovation, which promises exciting prospects for the future. At Prysmian, we prioritize our stakeholders in our business strategy, which is guided by the following core principles: 

 

  1. Customer-Centricity: We are committed to understanding and proactively addressing customer needs by offering innovative products and cable systems, all driven by a solution-oriented approach. Our dedication to customers is at the heart of our innovation. 
  2. Value Creation for Shareholders: We strive to deliver strong returns on investment and short-term profitability, while also ensuring sustainable and meaningful value creation in the medium to long term.

Our key success factors are outlined through the implementation of the following strategies:

The technologies and processes should develop products and solutions that anticipate and meet customer needs. This is why Prysmian focuses on enhancing its expertise in research and development, as well as in human resources and environmental sustainability.

Prysmian's ability to balance short-term and long-term goals is measured not only by financial performance but also by the sustainable value it aims to create. This ability is supported by a strong governance system and a business model designed to ensure that these outcomes can be maintained over time, instilling confidence in Prysmian's long-term viability.

Prysmian's financial management is based on a commitment to sound and prudent principles. The company places great emphasis on operating profitability and cash generation, focusing specifically on managing working capital, reducing fixed costs, and maximizing cash flow and return on investment. Notably, Prysmian's strategy of pursuing both organic growth and growth through acquisitions is supported by maintaining appropriate financial leverage.

Due to its status as a publicly traded company, Prysmian places great importance on its relationships with financial markets, shareholders, and investors. Our strong commitment to transparency and credibility is central to our operations, allowing us to maintain precise commitments and deliver targeted results. This commitment is reflected in our corporate governance system, which complies with relevant rules and guidelines and incorporates standards derived from international best practices.

Prysmian's development strategy focuses on two main goals: expanding the company's size and continuously improving profitability. When choosing which business sectors and geographic areas to target for expansion, Prysmian prioritizes maintaining adequate profitability levels, even if it means sacrificing some market share growth. However, preserving market share remains crucial, especially in high-value-added segments. 

The company aims for organic growth by implementing a selective investment policy and fostering commercial and production synergies, alongside pursuing growth through acquisitions. Prysmian primarily seeks growth opportunities in high-tech businesses that offer higher value, such as high voltage underground & submarine cables and systems, cables for the renewable energy sector, cables for extraction, mining, and petrochemicals, industrial cables for infrastructure, and optical fibers and cables for broadband network development. These sectors are tied to long-term investment programs, underscoring our stability and resilience throughout economic cycles. 

In terms of geographical expansion, Prysmian invests in countries and markets that provide strong growth and profitability potential. The company aims to play a leading role in the fragmented cable industry, acting as an aggregator that spearheads rationalization and consolidation efforts in the sector.

Prysmian has enhanced its ability to optimize industrial processes by integrating and streamlining its acquired companies, which includes consolidating product lines and improving customer service.

Market Approach

Over the years, Prysmian has refined its market approach to prioritize customer needs in its strategic, organizational, and business decisions. Our commitment to understanding and meeting customer expectations has resulted in the development of organizational and operating models that enable us to respond quickly, efficiently, and effectively to market demands. This level of efficiency assures our stakeholders of our capability to meet their needs.