The Quarterly Review Issue 1 | 2012

Q1 Results GROWING Sales growth AS A PUBLIC continues into 2012 Draka Integration COMPANY On track to meet the planned goals A global leader committed to delivering value to all its stakeholders: investors, Renewables customers, communities The wind is blowing from all over the world across Europe EDITORIAL COLUMN

Insight into

Understanding, along with Excellence and Integrity, is a primary value of Prysmian Group. Understanding, or closely listening to our customers to better satisfy their needs; but also providing our stakeholders with “insight” into our Group strategic intent and perspectives, after the combination with Draka, witch created the number one cable producer in the world.

That’s why we decided to put “Insight” in the title of our newsletter which stakeholders will start receiving on a regular quarterly basis. Contents Prysmian Group claims that its mission is of providing customers worldwide with superior cable solutions based on world class Quarterly Overview technology and excellence in execution. Our customers are Growing as a public company 3 power and telecom providers from all over the world; in other A World Class Team words, the lifeblood and the nervous system of the globe’s of Independent Directors 4 economy. Within this very crucial industry, which is the platform of sustanible existence for modern mankind, we are the global Significant profit growth leader. in the first quarter 5 In the first issue of INSIGHT, we tried to give a first review on Focus on how Prysmian Group interprets excellence in its corporate and industrial practices. Integration is bearing fruits 6

Synergies on track to reach In corporate governance, excellence means having a world 2012 target 6 class team of independent directors in the boardroom, capable Creating value through people 7 of representing the best interest of our global and diversified shareholders’ base. Excellence also materializes in sustainable long term profitability. But organization and structure too have Global Scenario to be excellent, notably if the efficient integration of two global The wind is blowing across Europe 8 leaders is at stake, as is the case for the Prysmian and Draka combination process underway. We also meet excellence when Forefront in renewables 9 we look at the Prysmian Group approach to renewables along with the sustainability issue. And excellence shows up again when Doing Business we explore our top-end technological solutions. Getting ready for the smart grid era 10 Last but not certainly least, people excellence is rewarded at Prysmian as possibly the most valuable resource, as we PRY-CAM system for distant are continuously in search of talents to fill senior and mid monitoring 10 management positions all over the world with the aim of building the leadership of the future. Getting things done Talented people wanted 11 Editorial Team - INSIGHT

Worldwide News from Prysmian Group 12

INSIGHT is the quarterly review of Prysmian Group created and published by the Communications & Business Department. For information: [email protected] QUARTERLY OVERVIEW Growing as a public company

“For a public company the Group business all over the like the Prysmian Group, The Annual Shareholders Meeting world, as they will contribute their last April marked a crucial step in top end business experience and controlled by a wide Prysmian Group’s path towards market knowledge. array of shareholders and growth as a public company. institutional and private The relevance of the event was The financial results for 2011 year underlined by the great participation approved by shareholders showed investors, the continued of shareholders, with almost 56% of an important growth of sales, up confidence of the markets the voting rights being represented 11.2 per cent to E7,583 million, with at the meeting. an Ebitda of E568 million, up from and its stakeholders is of E387 million reported a year earlier, paramount importance” The shareholders approved the mostly due to the positive impact Valerio Battista, CEO financial statements for 2011 along of the integration with Draka. with the distribution of a dividend of Shareholders also authorized a buy compensation policy drew the euro 0.21 per share. Shareholders attention of opinion makers: approved the list of new directors The Annual Shareholders a recent survey commissioned proposed by the incumbent board Meeting last April marked by Rome’s Luiss University with an overwhelming majority, a crucial step in Prysmian mentions Prysmian as the sole giving the 11 member board a fully public company where minority entrusted three year mandate. Group’s path towards shareholders approved almost growth as a public company unanimously the remuneration The new Board of Directors, policy adopted. composed of 7 independent back scheme up to 10 percent of members and 4 executives fits the share capital in order to provide The newly appointed Board then perfectly the Prysmian Group very the Group with a portfolio that nominated the Compensation and nature of true public company. can be used in any extraordinary Nominations Committee, chaired Independent director Massimo transaction. by Giulio Del Ninno and composed Tononi became chairman, Valerio of Claudio De Conto and chairman Battista was confirmed CEO. The Annual Shareholders Tononi, and the Internal Control Meeting also fully supported the Committee, chaired by Advice and insight from independent proposed executive management De Conto and composed of directors will help the CEO and the remuneration. Prysmian Friedrich Wilhelm Froehlich and top executives team best manage Group’s balanced and entrusted chairman Tononi.

3 Prysmian Group Insight QUARTERLY OVERVIEW A World Class Team of Independent Directors

Last April’s Annual Shareholders meeting appointed the new board of directors for a three year term composed of 4 executives and 7 independent directors including the Chairman.

Advice and insight from independent directors will help secure superior results Prysmian CEO Valerio Battista and its top executives team: Chief Strategy Officer Frank Dorjee, Senior VicePresident Fabio Romeo and Chief Financial Officer Pier Francesco Facchini.

A quick look at the profiles of the independent directors gives some insight into the competence and the experience they can help the management with, in terms of in-depth knowledge of the industry sectors and several top tier boards of different industries. In July global approach to different markets. 2010 he become a member of Prysmian’s Board of > independent director and Chairman directors. of the Board. His outstanding career includes top > Giulio Del Ninno developed a distinguished career government responsibilities, executive experience at in the power industry, as well as in the underlying international investment banks, boardroom experience chemical and materials sector, that gave him a unique in high ranking corporations and financial institutions, expertise of the power production value chain along with including the London Stock Exchange. an extensive knowledge of global developments in the > Maria Elena Cappello boasts 20 years experience in electricity generation sector, including renewables. the telecommunications industry in Italy and abroad with > Friedrich W. Frohlich brings to Prysmian a world continuously increasing responsibilities, up to the current class experience in corporate financial management, CEO level at Nokia Siemens Networks SpA, while also repeatedly awarded by the press and independent developing an entrepreneurial experience in the software institutions during his long career developed at top industry across Europe. tier firms in a range of industries, as he still sits in > Cesare d’Amico built a MD and CEO level experience the supervisory boards of a number of international in the sea transportation field, where he developed corporations. internatio