Group Annual Report 2020

Group Annual Report A
Annual Report
2020
Linking
the future
1
Contents
LETTER FROM THE CEO 3
GROUP ANNUAL REPORT 6
01_DIRECTORS’ REPORT 9
02_CONSOLIDATED FINANCIAL STATEMENTS 129
03_EXPLANATORY NOTES 135
CERTIFICATION OF THE CONSOLIDATED FINANCIAL STATEMENTS

PURSUANT TO ART. 81-TER OF CONSOB REGULATION 11971
DATED 14 MAY 1999AND SUBSEQUENT AMENDMENTS AND ADDITIONS247
INDEPENDENT AUDITORS’ REPORT 248
Disclaimer
This document contains forward-looking statements, specifically in the sections entitled “Events after the reporting
period” and “Business outlook”, that relate to future events and the operating, economic and financial results of
Prysmian Group. By their nature, forward-looking statements involve risk and uncertainty because they depend on the
occurrence of future events and circumstances. Actual results may differ materially from those reflected in forward-
looking statements due to multiple factors.
Annual Report 2020

3
Letter from the CEO
Back in January 2020, the CEO of our Chinese affiliate began to tell
me about a health crisis likely to explode there, in Wuhan.
About one year on, the whole world has felt the dramatic effects
of the Covid-19 pandemic. In introducing our 2020 Sustainability
Report, it is therefore both my duty and an opportunity to focus
immediate attention on how our business tackled this “black
swan” event that, in all probability, has changed global economic
and social priorities for ever.
Our priorities in tackling the Covid-19 pandemic have been, first

and foremost, the health and safety of individuals, together
Valerio Battista with supply chain continuity and the creation of value for all
CEO Prysmian Group stakeholders.
Reviewing the results of this past year, we can conclude with satisfaction that we have achieved
our objectives. The pandemic has obviously had its effect but, thanks to the priorities assigned to
our personnel, we managed to ensure a high level of business continuity, meet our profitability
objectives with ease and, above all, generate record cash flows.
Giving priority to our people made it possible to protect our manufacturing organisation and, indeed,
the entire supply chain. Activity levels at our 104 plants never fell below 80%, with intensified
collaboration between countries as, inexorably, they were hit by Covid-19.
Consequently, we retained our ability to assure continuous customer service, regardless of the
challenges.
Uncertainty still reigns, apparently, but the strong resilience of our organisation enables us to look
ahead with confidence, in the knowledge that we have the resources needed to relaunch the growth
challenge following the acquisition of General Cable.
Our ambition is to play a central role, as a technological enabler, in the energy transition and
digitalisation processes. To achieve this, we will continue to invest in product innovation and the
sustainability of our manufacturing footprint. The decision to set ourselves rigorous, challenging
and, above all, science-based targets for the reduction of CO2 emissions reinforces the credibility
and transparency of our commitment to be an ESG Company.
Annual Report 2020

4
RESULTS FOR THE YEAR

Group sales amounted to Euro 10,016 million, with an organic change of -10.3%; excluding the
Projects business, the organic change was -8.3%, improving in Q4 to -4.8%. A good contribution
to the Group’s resilience came from the Energy segment, which limited the organic reduction of
revenues to -7.1% and recovered as of the third quarter also thanks to the positive performance of
Power Distribution and Renewables in North America.
Adjusted EBITDA was Euro 840 million, confirming the Group’s resilience to the highly deteriorated
market context, also thanks to the timely cost containment actions and the business mix
improvement, which allowed the Group to preserve margins. The drop compared to Euro 1,007 million
Adjusted EBITDA in 2019 also reflected the negative effects of exchange rates for approximately Euro
32 million. The ratio of Adjusted EBITDA to sales was 8.4% compared to 8.7% in 2019, confirming the
Group’s ability to protect profitability.
The Energy segment benefited from the brilliant profitability performance of Power Distribution
and Overhead Lines in North America.
In the Telecom segment, the impact on adjusted EBITDA of the volume reduction and price pressure
in Europe was partly offset by the cost efficiency actions which also contributed to stabilising
margins. Q4 saw signs of a recovery in the optical cable business, mainly in Nord America.
Margins were also maintained in the Projects segment, where profitability was hit by production
and installation inefficiencies attributable to the pandemic, as well as by an unfavourable mix
of projects. Signs of recovery were seen during the fourth quarter. The contribution from the
integration of General Cable was significant.
Efforts to protect the cash generation capacity allowed the Group to achieve record-high Free Cash
Flow at Euro 375 million in 2020 (Euro 487 million, excluding antitrust-related cash outs), higher
than the guidance.
Based on the results for 2020, the Board of Directors will recommend to the forthcoming AGM that
a dividend of Euro 0.50 per share be distributed, involving a total pay-out of approximately Euro 132
million.
COVID-19: “PEOPLE FIRST”, PROTECTION OF BUSINESS, INNOVATION/DIGITALISATION
A significant presence in China enabled the Group to understand the outbreak of the pandemic at
an early stage. “People first” — people’s health and safety first —, technological innovation, lean
manufacturing and protection of the business are the three guidelines adopted by the Group to tackle
the pandemic. “People First” entailed increased investment in health and safety (+29% to Euro 17
million), in the massive supply of medical equipment and the carrying out of tests and analyses
to detect contagions, in the redefinition of procedures for the safe use of workplaces, and in the
extensive use of remote working, in the digitalisation of the Academy and initiatives in favour of
the communities impacted by the virus (from donating cables to the Wuhan hospital, to citizenship
initiatives also in other areas of the world). In a context that is redefining social and economic
priorities, the Group has confirmed its ambition to be an energy and digitalisation transition enabler.
Prysmian Group
5
From the flagship 525 kV P-Laser cable to fibre and optical cable innovations like Sirocco, the world
record cable in fibre density, and the submarine power cable for record-depth installation up to
3,000 m, the Group has strengthened its commitment to technological innovation. There was also an
important focus on digitalising its manufacturing processes (Fast Forward Project). Putting health
and safety first allowed the Group to ensure supply chain and business continuity. The operations at
production sites never dropped below 80%, thus maintaining the ability to serve customers nearly
unaltered (on time delivery exceeded 94%). The Group also promptly implemented a robust cost
containment plan and measures to protect its cash generation capacity.
ACCELERATION ON CLIMATE CHANGE. ‘ZERO EMISSION’ PRYSMIAN BY 2040 (SCOPE 1 AND 2)
Prysmian Group confirms its ambition to be one of the leading technology players in the transition
to the use of renewable energy sources and to a decarbonised economy. 48% of the Group’s sales
are attributable to business segments and products that contribute to a low-carbon economy.
With the goal of supporting the expected acceleration of the development of new submarine and
underground power interconnections (chiefly links and interconnections of offshore wind farms),
the Group has planned investments in the range of Euro 450 million by 2022 (over 50% of total
investments), which are also intended to further improve the sustainability of its organisation and
supply chain.
Prysmian Group has also announced a new ambitious climate strategy adopting science-based
targets, in line with the requirements of the Paris Agreement, and endorsing the Business Ambition
(1.5°C) with the “net zero” target expected to be achieved between 2035 and 2040 with regard to the
emissions generated by its operations (Scope 1 and 2) and by 2050 for emissions generated by the
value chain (Scope 3). Among the most important initiatives in this area is the Group’s Pikkala plant,
chiefly dedicated to the production of cables for offshore wind farms, which will become the first
net zero plant, where 100% of the energy used will be obtained from certified renewable sources.
Annual Report 2020

Group Annual Report
Bilancio Consolidato 7
Contents
01_DIRECTORS’ REPORT 9
Directors and auditors 9
Preface10
Financial highlights 11
Prysmian Group 14
Prysmian and the financial markets 48
Business environment 56
Significant events during the year 60
Group performance and results 67
Review of Projects Operating Segment 71
Review of Energy Operating Segment 74
Review of Telecom Operating Segment 80
Results by Geographical Area 83
Group Statement of Financial Position 85
Alternative Performance Indicators 89
Risk Factors and Uncertainties 93
Research and Development 108
Incentive Plans 123
Other Information 124
Business Outlook 125
Certification pursuant to art. 262 of the italian stock exchange
market regulations 127
02_CONSOLIDATED FINANCIAL STATEMENTS 129

Consolidated Statement of Financial position 129
Consolidated Income Statement 130
Other Comprehensive Income 131
Consolidated Statement of Changes in Equity 132
Consolidated Statement of Cash Flows 133
03_EXPLANATORY NOTES 135
Certification of the Consolidated Financial Statements

Pursuant to art. 81-ter of consob regulation 11971
dated 14 may 1999and subsequent amendments and additions 247
Independent Auditors’ Report 248
Annual Report 2020

Group Annual Report 9
01_DIRECTORS’ REPORT
Directors and auditors
BOARD OF DIRECTORS (4)

Chairman Claudio De Conto (*) (2)
Chief Executive Officer Valerio Battista
Directors Maria Elena Cappello (**) (3)

Monica de Virgiliis (**) (3)
Francesco Gori (**) (1) (5)
Joyce Victoria Bigio (**) (1)
Massimo Battaini
Pier Francesco Facchini
Maria Letizia Mariani (**) (1) (3)
Fabio Ignazio Romeo
Paolo Amato (**) (2)
Mimi Kung (**) (3)
BOARD OF STATUTORY AUDITORS (5)

Chairman Pellegrino Libroia
Standing Statutory Auditors Laura Gualtieri

Paolo Francesco Lazzati
Alternative Statutory Auditors Michele Milano

Claudia Mezzabotta
Independent Auditors (6) EY S.p.A.
(*) Independent director as per Italian Legislative Decree 58/1998.

(**) Independent director as per Italian Legislative Decree 58/1998 and Italy’s Corporate Governance Code issued by Borsa Italiana S.p.A..
(1) Members of the Control and Risks Committee.
(2) Members of the Remuneration and Nomination Committee.
(3) Members of the Sustainability Committee.
(4) Appointed by the Shareholders’ Meeting on 12 April 2018.
(5) Appointed by the Shareholders’ Meeting on 5 June 2019.
(6) Appointed by the Shareholders’ Meeting on 16 April 2015.
Annual Report 2020

10 Group Annual Report
Preface
In compliance with the provisions of art. 5, par. 3 (b) of Italian Legislative Decree 254/2016, the Group
has prepared its Consolidated Non-Financial Statement in a separate document (Sustainability Report
2020). This document, covering environmental, social and personnel-related matters, respect for
human rights, and the fight against active and passive corruption, aims to provide its users with an
understanding of the Group’s business, its performance, results and impact. The Consolidated Non-
Financial Statement 2020, drawn up in accordance with the GRI Sustainability Reporting Standards
(published by the GRI – Global Reporting Initiative — in 2016), was approved by the Board of Directors
on 10 March 2021. As required by Italian Legislative Decree 254/2016, this document is submitted
to a limited review by the independent auditors, in accordance with the International Standard on
Assurance Engagement (ISAE 3000 Revised). The document is available on the Group’s website at
www.prysmiangroup.com.
Prysmian Group
Financial highlights
MAIN FINANCIAL AND OPERATING DATA (*)
(Euro/million) 2020 2019 % change 2018 (**)

Sales 10,016 11,519 -13.0% 10,104
Adjusted EBITDA before share of net profit/(loss) of equity- 822 983 -16.4% 634
accounted companies
Adjusted EBITDA (1) 840 1,007 -16.6% 693
EBITDA (2)
781 907 -13.9% 501
Adjusted operating income (3) 515 689 -25.3% 466
Operating income 353 569 -38.0% 215
Profit/(loss) before taxes 252 444 -43.2% 103
Net profit/(loss) 174 296 -41.2% 58
(Euro/million) 31.12.2020 31.12.2019 Change 31.12.2018

Net capital employed 4,915 5,236 (321) 5,059
Employee benefit obligations 506 494 12 463
Equity 2,423 2,602 (179) 2,374
of which attributable to non-controlling interests 164 187 (23) 188
Net financial debt 1,986 2,140 (154) 2,222
(Euro/million) 2020 2019 % change 2018 (**)

Net capital expenditure (4) 244 248 -1.6% 278
Employees (at period-end) 28,321 28,714 -1.4% 29,159
Earnings/(loss) per share
– basic 0.68 1.11 0.24
– diluted 0.68 1.11 0.24
Number of patents (5) 5,581 5,881 5,627

Number of plants 104 106 112
(1) Adjusted EBITDA is defined as EBITDA before income and expense for company reorganisation, non-recurring items and other non-operating income and
expense.
(2) EBITDA is defined as earnings/(loss) for the year, before the fair value change in metal derivatives and in other fair value items, amortisation, depreciation and
impairment, finance costs and income, dividends from other companies and taxes.
(3) Adjusted operating income is defined as operating income before income and expense for company reorganisation, non-recurring items and other non-operating
income and expense, and before the fair value change in metal derivatives and in other fair value items.
(4) Net capital expenditure reflects cash inflow from disposals of Assets held for sale and outflow for additions to Property, plant and equipment and Intangible
assets not acquired under specific financing arrangements, meaning that additions of leased assets are excluded.
(5) These are the total number of patents, comprising patents granted plus patent applications pending worldwide
(*) All percentages contained in this report have been calculated with reference to amounts expressed in thousands of Euro.
(**) The results of General Cable have been consolidated with effect from 1 June 2018.
Annual Report 2020

2020 SALES BY GEOGRAPHICAL AREA
€10,016 million
53% EMEA (*)

31% North America
8% Latin America
8% Asia Pacific
(*) Europe, Middle East, Africa.
2020 SALES BY BUSINESS AREA
€10,016 million
14% Projects
72% Energy
47% of which Energy &
Infrastructure
23% of which Industrial &
Network Components
2% of which Others
14% Telecom
Prysmian Group
KEY FINANCIALS
Amounts in millions of Euro – percentages on sales
SALES (1) ADJUSTED ADJUSTED NET OPERATING NET FINANCIAL DEBT

EBITDA (2) OPERATING WORKING CAPITAL (4)
INCOME (3)
Organic growth
-0.9% -10.3%
11,519 1,007 689 749 2,222

707 2,140
10,104 1,986
10,016
840
515
693 466
432
8.7% 6.0% 6.5%

6.3%
8.4%
5.1%
6.9% 4.6%
4.3%
2018 2019 2020 2018 2019 2020 2018 2019 2020 2018 2019 2020 2018 2019 2020
(1) Organic growth is defined as growth in sales calculated net of changes in the scope of consolidation, changes in commodity prices and exchange rate effects. The
results of General Cable have been consolidated with effect from 1 June 2018.
(2) Adjusted EBITDA is defined as EBITDA before income and expense for company reorganisation, non-recurring items and other non-operating income and
expense. The results of General Cable have been consolidated with effect from 1 June 2018.
(3) Adjusted operating income is defined as operating income before income and expense for company reorganisation, non-recurring items and other non-operating
income and expense, and before the fair value change in metal derivatives and in other fair value items. The results of General Cable have been consolidated with
effect from 1 June 2018.
(4) Net Operating Working Capital is defined as Net Working Capital excluding the effect of derivatives. The percentage is calculated as Net Working Capital/
Annualised last-quarter sales.
Annual Report 2020

Prysmian Group
HIGHLIGHTS 2020
Intelligent virtual assistant for Innovative technology for monitoring

managing drums and electrical cables electrical systems
ALESEA is the new IoT solution that provides PRY-CAM is the proprietary technology of
virtual assistance in the management of drums: Prysmian Group that allows the main parameters
this is the first innovation from Corporate of an electrical system to be measured on-line,
Hangar, the innovation hub of Prysmian. An accurately and reliably, as well as the remote
intelligent device is installed on the drum and diagnosis and localisation of faults, thanks to a
cloud infrastructure makes it possible to file and series of electronic products that facilitate the
process the data, accessible via an intuitive web efficient management of electrical systems
platform. To date, over 1,000 Alesea devices have using a predictive approach.
been tested in 7 countries.
P-Laser Prysmian launches the first optical

fibre network with 90% recycled
P-Laser is the first technology to offer fully- plastic and record low diameter cable
recyclable, eco-sustainable, high performance
cables based on HPTE (High Performance With a cable diameter of 4.5 mm in a 10 mm
Thermoplastic Elastomer). P-Laser is suitable conduit, compared with the traditional 6 mm cable
for higher voltages, offering advanced thermal in a 14 mm conduit, the volume of plastic used is
performance and high reliability for more flexible reduced by about 50%. The reduced diameters
mean that each drum contains a longer length of
and sustainable solutions. Fully recyclable with
cable, thus lowering transportation, storage and
higher productivity, P-Laser lowers production
packaging costs significantly.
CO2 emissions by 35%.
Crete-Attica submarine EHC Global

interconnection in Greece
Prysmian Group has acquired EHC Global,
This 500 kV submarine cable system will join Canadian leader in the supply of strategic
the island to the Greek power transmission grid. components and integrated solutions for vertical
Prysmian will also provide two submarine cable mobility.
links for telecommunications.
Prysmian Group
Sirocco HD Sirocco Extreme

The Sirocco High Density range delivers record The first cable with 180µm fibre for FTTx and 5G
diameters and fibre density for blown mini- networks. The Sirocco Extreme cable delivers
cables. The new range boasts optical fibre record diameter and fibre density for mini-
densities of 10.5 fibre/mm2, making it possible to cables, ensuring faster, cheaper and more
offer cables with a larger number of fibres for use sustainable installations.
in microtubes with standard dimensions. Sirocco
HD mini-cables use Prysmian BendBright-A2
200µm (ITU-T G.657.A2), a single-mode fibre
insensitive to bending, to provide a truly future-
proof solution that is ready to support advanced
systems.
First 180µm optical fibre cable German Corridors

installed in Germany
The Group has obtained contracts worth more
This was the first project to use the new than 1.8 billion euro for the SuedLink, SuedOstLink
Sirocco Extreme optical cable. The world’s first and A-Nord Corridor projects, which are the
installation of 180µm optical fibre cable will main energy transition projects. Underground
enable a large number of private dwellings transmission systems will be supplied for all three
and businesses located in Germany to benefit German projects. Our ±525 kV cable systems will
from access to high performance FTTx and 5G link the regions rich in renewable energy from the
networks. Sirocco Extreme is the first 180µm wind farms in northern Germany with the main
optical fibre cable available on the market. areas of consumption in the south of the country.
Dow Jones Sustainability Index 2020 The “Leonardo da Vinci”

The Prysmian Group was confirmed as part of the The “Leonardo da Vinci” will be the most advanced
Dow Jones Sustainability World in 2020. This is cable-laying vessel on the market, offering greater
the most important international index for the flexibility in the execution of projects due to its
assessment of performance in environmental, advanced characteristics. This ship is designed to
social and governance (ESG) terms. Inclusion be the most efficient and effective on the market,
in this index recognises the efforts made by guaranteeing a lower environmental impact.
Prysmian to define a sustainable business Operational from the second quarter of 2021,
approach and serve as an enabler in developing the cable handling and installation equipment
the best cable and optical fibre technologies, on board the vessel was entirely designed and
thus supporting the transition towards a more developed by Prysmian, in order to consolidate the
sustainable use of energy resources, digitalisation leadership of the Group in the submarine cables
and the decarbonisation of economies. business.
Annual Report 2020

THE PRYSMIAN GROUP, A GLOBAL LEADER
Leadership in strategic sectors
Our identity is underpinned by solid leadership in the power and telecom cable systems industry. As such, we
are at the centre of the transition to a low carbon economy. Our vision of the future is founded on this role.
Prysmian Group is world leader in the power and telecom cable systems industry.
With sales in excess of 10 billion euro and about 28,000 employees, our heavily international presence
is evidenced by 104 plants in more than 50 countries. The Group has a consolidated presence in
technologically advanced markets, offering a broad range of products, services, technologies and know
how are offered to manufacturers that use cabling systems in the production and distribution of energy
and telecommunications.
Sales of over € 10 bln 104 production plants in more than 50 countries
Established as Pirelli Cables at the end of the 1800s, the Group has grown by acquisitions: from integration
of the power cables manufactured by Siemens and Nokia, to acquisition of the Draka group based in
the Netherlands, and, in 2018, absorption of General Cable, a US group. These aggregations sustained
expansion of the range of products and services, with innovations to improve standards and a greater
geographical presence, which is a strength when serving regional market needs. This evolution over
time evidences the expansion of our know-how and technological capabilities, as well as our operational
ability, enabling us to become an industry leader in the area of operational efficiency as well. Operations
are guided at all times by strong convictions that support our ESG Identity in what we do, how we do it
and with what vision for the future, as embodied in our Values, Mission and Vision.
1879 1998 2005 2007
Prysmian Group’s The commpany begins Prysmian is founded Prysmian becomes

history has its roots targeted acquisitions, in July 2005 through a listed company
in the history of the iincluding the power the acquisition quoted in the Milan
Pirelli Group. cable business of the energy and stock exchange after
Società Cavi Pierelli of Siemens, BICC, Telecom cables the sale of 46% of
is established in Italy Metal Manufacturers and system activities the shares held by the
as the able division Ltd and NKF. of Pirelli. Goldman Sachs Group.
of the recently
founded company. 2011
The combination
of the two market
leading companies
1910 1970 1986 1987 culminated in
Prysmian Group. 2018
Draka was founded The company is The business became A spree of global
under the name or acquired by Philips and independednt throught acquisitions over
Hollandsche Draad became part of the a buyout financed a 20 year period General Cable joins
8 Kabel Fabriek. Wire and Cable Division. by Parcom and Flinet followed including Prysmian Group.
Beheer. The name Philips Optical Fiber
Draka was born. and Alcatel.
1927 1990 2005 2007 2012
Originally incorporated Acquired the Carol Acquired Silec, Acquired NSW, an Acquired Stabiloy and Nual
in New Jersey Cable Company and a leader energy and offshore submarine aluminium building wire
bringing together industry Leading Carol® industrial business, cable supplier and brands, acquired Procables
several older Brand cord, cordset and Helix/HiTemp, installer in Germany. of Colombia, and aquired
companies founded and automotive a manufacturer of Prestolite Wire, serving
in the 1800s. product lines. high-end enterprise predominately origina
networks products. equipment manufacturerts
(DEM) and distributors.
Prysmian Group
A history of innovation
At the start of the 20th century, Prysmian Group laid the first submarine cables for telecommunications
that linked the Americas and Europe.
Cables and optical fibres supplied by Prysmian Group comprise a significant part of the main electricity
grids and telecommunications networks around the world, with installations in such iconic buildings as
the Burj Khalifa in Dubai, The Shard in London, the World Trade Center in New York and the Guggenheim
Museum in Bilbao.
Prysmian submarine cables are integral to numerous key projects around the world: from the Hudson
Transmission Project linking New York and New Jersey, to Viking Link, which is the first submarine cable
interconnection between the United Kingdom and Denmark; from German Corridors, comprising three
underground cables that link northern and southern Germany, to the Italy-France link; from the West of
Adlergrund offshore wind farm in the Baltic, to Hornsea Two in the North Sea.
THE SHARD. LONDRA HUDSON TRANSMISSION PROJECT. NEW YORK-NEW JERSEY
GUGGENHEIM MUSEUM. BILBAO BURJI KHALIFA. DUBAI WTC. NEW YORK
Annual Report 2020

A TRULY GLOBAL GROUP

Prysmian operates in over 50 countries worldwide, with 104 plants and approximately 28,000 employees.
Our business model is diversified by portfolio and geographical area.
23
NORTH
AMERICA
plants
Canada
St. Maurice
St. Jerome
Saguenay
Prescott
U.S.A.
Rocky Mountain Williamsport
Du Quoin Willimantic
Lincoln Lawrenceburg
Indianapolis Abbeville
Jackson Bridgewater
Manchester Claremont
Marion Lexington
Marshall North Dighton
Paragould Schuylkill Haven
Sedalia
23
+50
countries
104
plants
25
R&D
centers
13
about LATAM
28,000
Colombia
Bogotá
Argentina
plants La Rosa Costa Rica
Heredia
employees Brazil MEXICO

KEY Joinville Durango
4
Poços de Caldas Tetla
Sorocaba Boa Vista
(1) Energy Piedras Negras
cable-laying Sorocaba Eden
Vila Velha
Nogales
ships Telecom
Chile
Shared Santiago
(1) The cable-layer Leonardo da Vinci will be operational from 2021.
Prysmian Group
48
EUROPE France Germany Italy Portugal Spain
Calais Wuppertal Battipaglia Morelena Abrera
Douvrin Berlin Giovinazzo Santa Perpetua
Czech Republic Sainte Geneviève Nurnberg
plants Velke Mzirici
Livorno Romania Villanueva
Amfreville Nordenham Merlino Milcov Santander
Paron Neustadt Pignataro M, Slatina
Estonia Charvieu Schwerin Quattordio Sweden
Cornimont Arco Felice
Keila Russia Nassjo
Gron Hungary Rybinsk
Chavanoz Kistelek Norway
Finland Montreau The Netherlands
Balassagyarmat Drammen
Pikkala Slovakia Eindhoven
Oulu Presov Delft
Nieuw Berger
Emmen
U.K.
Washington
Wrexham
Bishopstoke
Aberdare
7
plants Oman
Sohar
MEAT Muscat
Tunisia
Angola Grombalia
Luanda Menzel Bouzelfa
Ivory Coast Turkey

Abidjian Mudanya
Mudanya Tianjin
Yixing
Zhongyao
Haixun
Suzhou
Wuxi
Cebu
13
Chiplun
Melaka APAC India Philippines
Chiplun Cebu
Cikampek
plants Australia Indonesia Thailand
Liverpool
Cikampek Rayong
Dee Why
Dee Why
Liverpool Malaysia
Auckland
China Melaka
Zhongyao
Haixun
Yixing New Zealand
Tianjin Auckland
Suzhou
Annual Report 2020

BUSINESS AREAS
The Group is organised in a matrix structure by reference market and business unit, identifying three
macro-areas of activity.
Energy Projects Telecom
Comprising business segments Comprising high-tech and high Comprising businesses devoted to
that offer a complete and value-added businesses focused making the cabling systems and
innovative portfolio of products on the design, production and connectivity products used in TLC
designed to satisfy the many customisation of HV and EHV networks. The product portfolio
needs of the markets served. cabling systems for terrestrial includes optical fibre, optical
This macro-area is organised as and submarine applications. cables, connectivity components
follows: Energy & Infrastructure, The Group develops pioneering and accessories, OPGW (Optical
which includes Trade & Installers, “turnkey” submarine cable systems Ground Wire) and copper cables.
Power Distribution and Overhead for installation at depths of up to The Group is also among the leaders
Transmission Lines, and Industrial 3,000 metres, assisted by its cable- in the production of optical fibre
& Network Components, which laying fleet comprising the Giulio - the essential component of all
includes Oil & Gas, Elevators, Verne, the Cable Enterprise and types of optical cables. A wide range
Automotive, Network Components, the Ulisse (as well as the Leonardo of optical fibres is designed and
Specialties & OEM (serving in turn da Vinci, which will become made using proprietary technology
the following sectors: Cranes, operational in 2021). Prysmian to cater to the broadest possible
Mining, Railways, Rolling Stock, Group also offers advanced services spectrum of customer applications:
Marine and Renewables - cables for terrestrial and submarine single-mode, multimode and
for the solar energy industry and interconnections between various specialty fibres. In both cables and
for the operation and connection countries and between offshore connectivity, the Group focuses
of wind turbines) and Electronics wind farms and the mainland, on the design of products that
(Asset Monitoring Solutions). used for both the generation and provided greater density in a
distribution of electricity. smaller diameter, with ease of use
and optimal fibre management.
The ENERGY business area generated 7,207 million euro in 2020, representing 72% of the Group’s total
revenues, while the PROJECTS business area generated 1,438 million euro or 14% of revenues; lastly, the
TELECOM business area generated 1,371 million euro, contributing 14% of revenues.
Prysmian Group
A BUSINESS MODEL BALANCED BY SEGMENT AND GEOGRAPHICAL AREA

The diversified portfolio of activities is a strength for the Prysmian Group, as the only global leader with
a business model balanced among areas with differing profiles, where each segment plays a precise role
in the overall strategy, considering stability, growth potential and the generation of opportunities.
Historically, the Energy area has delivered the most stable results, while the Projects and Telecom areas
have been marked by greater dynamism.
Acquisitions have always fit in with the strategy of maintaining balance: General Cable enabled the Group
to diversify geographically, with strong exposure to the North American market, which is structured
differently with more consolidated dynamics.
Additionally, while the positioning of the Prysmian Group as a cable manufacturer remains central,
part of our activities makes us a network solution provider, drawing on the ability to integrate ever
more closely the various components - engineering, installation, network monitoring and after-sales
services - to provide value-added services that ensure recurring revenue streams and build long-term
partnerships with customers.
Alongside this, the Group is also able to identify and develop value-added market niches – such as
solutions for the elevator industry, cables for multimedia applications, monitoring solutions developed
by Prysmian Electronics – while releasing the synergies needed to be cost-effective and offer end-to-end
solutions integrated with advanced digital equipment.
Annual Report 2020

PRYSMIAN GROUP FOR THE ENERGY TRANSITION

We explain how our Vision leads us into a world of cleaner energy that is more intelligent and efficient. Our
technology enables us to play a central role in the energy transition towards a decarbonised economy.
The Prysmian Group seeks to be the go-to technology player, facilitating the production and transmission
of cleaner, more intelligent, more efficient and more competitive energy.
The energy transition from fossil fuels to renewable sources is one of the greatest and most urgent
challenges faced by humanity. The production of electricity and heat generates 25% of all global
CO2 emissions. The European Union was one of the first economies to make a formal commitment by
establishing objectives for 2030. By signing the new Green Plan, the European Commission seeks to
become carbon neutral by 2050, highlighting the priority need for an integrated energy market that is
both digitalised and interconnected with renewable sources. Renewable energy must be transmitted
from the places of production (including offshore wind farms) to the places of consumption (communities
and urban centres), ensuring a constant flow of energy at a grassroots level. Cable technology will be
decisive in this scenario, making it possible to improve the grids needed for this energy transition, while
optical fibre will enable the digitalisation of society as an essential step in the development of a low-
carbon economy and a new growth model.
MARKET EVOLUTION: THE LONG TERM PERSPECTIVE
151
144
207
122
150
86
73
113
62
53
51 50 48 46
77
45
27
19
12
4 7
2
2009 2011 2013 2015 2017 2019 2021 2023 2025 2027 2030
Global installed capacity Offshore wind LCOE in Europe (€/MWh)
Offshore wind: Global installed capacity (GW. navy bars) vs LCOE in Europe (€/MWh)
Source: Goldman Sachs Global Investment Research, IRENA
Prysmian Group
PRYSMIAN A CLEAR BENEFICIARY AND ENABLER OF ENERGY TRANSITION
1 2 3
GW of offshore wind requires: Factors that increase cable market: IEA estimate 1.3 trillion euro to be
Submarine Transmission cable Distance from shore invested in Offshore Wind from 2020
(AC or DC) to 2040, implying 250 billion euro in
German legislation cabling in the same period
Land Transmission Cable (AC or DC)
Inter-Array cables (MV 33 or 66kV)
Installation for all
Approx. value for all these items on
average 300 € million per Gigawatt
Indicative shares of capital cost 30-40% Turbine

by component 20-30% Inter-array cabling
20-25% Foundation
Split based on historical figures
and projecting the cost per GW 15-20% Installation
INTERCONNECTORS EXPECTED ORDERS BY REGION (B€, commercial award year) 1
4.6
4.5 4.5
4.1
1.1
2.6 2.6
2.2
0.7
3.4
1.0
0.8
1.5
Avg, 2020 2021 2022 2023 2024 2025 2026 2027

Historical 2
Europe North America
1 Avg. 3.9 years of anticipation of ordering date vs start-up date.

2 Last 5 years average.
Sources: ENTSOE, Prysmian 3 A North, Ariadne Connection, SuedLink, SuedOst Link.
Annual Report 2020

OFFSHORE WIND EXPECTED ORDERS BY REGION (B€, commercial award year) 1
4.1 3.0
0.5
0.4
0.7 B€ already assigned 3
1.9
1.6
1.8 3.6 0.2
1.1 1.3 0.1
2.4
2.6
1.4 0.1 0.2
1.0
1.7
1.5
1.0 1.0 1.1
Avg, 2020 2021 2022 2023 2024 2025 2026 2027

Historical2
Expected awards 4 8.6 7.3 13.9 9.3 8.3 4.8 5.3 5.9
(GW)2
Europe North America

1 Based on expected commissioning of pipeline, assuming an anticipation of ordering date by 3 years when not specified.
2 Last 5 years average (2015-2019).
3 Parc des Iles d’Yeu et de Noirmoutier, Projet éolien en mer de la Baie de Saint-Brieuc, Hollandse Kust Zuid Holland I and II – Chinook, Dogger Bank A/B.
4 Total expected awards of 63.4 GW. With respect to the 67.2 GW of pipeline 2020-2030, it does not include 5.4 GW of projects awarded before 2020 and still in
administrative / authorized phase, and it includes 1.6 GW of projects with commercial award year between 2020 and 2027, but start up year >2030.
Sources: 4COffshore, Insight Report, Prysmian
Highlights
From the commercial perspective, the pipeline is expected to lead to 17 B€ of new orders in 2020-2027 (avg. 2.1 B€/yr)
Values including the supply of inter-array and export as well as the installation works
No impacts on inter-array cable needs expected vs current values due to the potential increase in the size of the turbines
In 2020, the commitment of Prysmian Group to the energy transition towards a low-carbon economy
translated into 48% of total Group revenues attributable to products, using the Climate Bond Initiative
taxonomy, that facilitate the energy transition and achievement of the COP 21 target, as well as the
digitalisation of grids. The Group also announced investment totalling 450 million euro by 2022 in order to
improve further the sustainability of its organisation and supply chain, and accelerate the development
of advanced cable technologies, assets and services. The new project, supported by Carbon Trust, seeks
to establish scientific carbon reduction objectives for the Prysmian Group, taking into consideration the
Scope 1 & 2 (own organisation) and Scope 3 (value chain) GHG emissions. Objectives for the reduction of
carbon emissions are considered “Science-Based Targets’’ if consistent with those deemed necessary
by climate science in order to achieve the Paris accord objectives: limit global warming to less than 2°C
above pre-industrial levels and pursue efforts to limit warming to 1.5°C.
CLIMATE-RELATED
INFORMATION
48% total Group revenue from

“low carbon enabling” products
450 mln € of investment by 2022
Prysmian Group
CABLE TECHNOLOGY AND INNOVATION
With a view to facilitating the development of ever more efficient, sustainable and integrated grids,
Prysmian Group strives constantly to improve the performance of its terrestrial and submarine HV
cables.
Cables are an essential component of the energy transition, representing the backbone of power grids
and facilitating the distribution and transportation of energy between various areas marked by different
consumption patterns.
Distinctive characteristics
Cables are the backbone of power grids, without which it would not be possible to transmit and transport
energy from one country to another.
Cables make the entire power grid more efficient, facilitating the exchange of energy between different
countries/consumption areas with different consumption patterns. Accordingly, they enable consumers
to obtain access to cheaper and cleaner energy.
Submarine cables transmit clean and sustainable energy from offshore wind farms to the mainland,
where the primary distribution network is located.
Terrestrial cables ensure greater integration between the various power grids, balancing demand and
supply and transmitting electricity from the areas in which it is generated (the landfall of submarine
cables) to the places where it is consumed.
The research objectives of Prysmian Group
Cables that can be installed at ever greater depths and in any marine environment, even reaching a
depth of 3,000 metres, partly as a result of lower weight reinforcements.
Ever longer interconnections, to link countries that are far apart or cable the floating wind farms located
far offshore in more windy areas that provide a constant flow of electricity.
Increase the intrinsic reliability of cables, limiting their dispersion, and equipping them with sensors
capable of monitoring the system.
Increase cable productivity, contributing to a significant reduction in system installation costs. Higher
performance and more reliable cables help to optimise installation costs.
With regard to optical fibres, ensure ever greater levels of flexibility without degrading the signal
quality. The 5G challenge requires the market to make an infrastructure effort almost without historical
precedent.
Annual Report 2020

SUSTAINABILITY IS IN OUR DNA

We have decided to build social, environmental and governance factors into our DNA. This path represents
a natural evolution of our nature as a public company and the decision to be people-centric, consistent with
the model of stakeholder capitalism adopted.
Public Company
Prysmian Group is, in primis, a Prysmian Group has always invested
public company with a broad in these values of stakeholder
shareholder base and, as such, it is capitalism, striving to comply with
fundamental to align the interests the highest international standards
of the Group with those of all of governance. For example, 67%
stakeholders. This special nature of Board members are independent
requires an ability to develop open and 42% are women. Integrity as a
and transparent dialogue with corporate value is expressed using
our shareholders, employees, a series of instruments and policies
customers and suppliers, with disseminated throughout the entire
the institutions and with the organisation, including: the Code of
communities in which we work. Ethics, the anti-corruption policy,
privacy and data protection, and the
helpline programme.
People Company
Prysmian Group is people-centric,
supporting and recognising the
abilities of those who work for the
Group and for the community in
which it operates. To achieve this,
continuous multi-disciplinary and
specialist training programmes have
been developed for employees.
Out of around 28,000 employees,

about one third are stable
shareholders. Together with
management, these employees
own more than 3% of the share
capital, investing directly in the
Company and demonstrating their
confidence in us.
PUBLIC COMPANY
We are one of the few Italian manufacturers with a global presence that has achieved widespread share
ownership. This provides the DNA for our ESG identity. Indeed, over the past two years the weighting of our
ESG-focused investors has increased substantially, from about 13% to 35% now.
Prysmian Group
VALUES, MISSION, VISION

The ESG Identity of a leading group must be supported by Values, Mission and Vision that guide operations,
translate into products made and fuel the ambitions for our role in tomorrow’s world.
Drive Trust
Our objective is to guide We intend to create an
Values the evolution of our sector:

we develop our people and
environment that inspires trust,
where diversity and collaboration
our business, following a clear are recognised and people are
strategy while anticipating empowered to make decisions
customer needs. with integrity.
Simplicity
Our challenge is to simplify all
that we can, focusing on activities
that generate considerable value
and timely decisions that enhance
the results achieved by the Group.
We believe in the efficient,
effective and sustainable supply
of energy and information as the
main driver for the development
Vision
of community.
The Prysmian Group provides

its customers worldwide with
superior cable solutions based
on pioneering technology and
Mission
consistent excellence in execution,
ultimately delivering sustainable
growth and profit.
Annual Report 2020

SDGS – SUSTAINABLE DEVELOPMENT GOALS

Discussing sustainability today means describing our ability to create shared value for our stakeholders. This
approach, which characterises our DNA as a public company, has resulted in the definition of a strategic
sustainability plan that is ambitious and sustainable, consistent with international standards. This section
describes how we tackled the challenge of incorporating the various ESG aspects that link Prysmian’s
employees, our main stakeholder, with our sustainable objectives.
In 2017, Prysmian published its own Sustainability Policy, which defines the vision and reference values for
the various areas of Business Integrity, Governance, Product, Social and Environmental Responsibility.
The policy aims to provide sustainability guidelines for all Group companies and operations, based
on the strategic priorities identified in the business plan to which Prysmian is committed as part of a
medium to long-term vision.
The ESG strategy of Prysmian Group is sustained by three strategic pillars:
Priority
SUSTAINABLE AND INNOVATIVE RESPONSIBLE USE OF ENERGY DEVELOPMENT OF PEOPLE
SOLUTIONS FOR THE BUSINESS AND WATER RESOURCES AND COMMUNITIES
Facilitate the deployment of Pursue the responsible consumption Contribute to the development
accessible energy and innovation of natural resources and sustainable of people and local communities
in telecommunications and supplies
infrastructure
Action
1. Develop innovative products 5. Pursue the efficient and 7. Participate in and contribute to
and solutions that support sustainable use of energy and the socio-economic development
improvement of the sustainability natural resources by reducing of the communities in which the
of telecommunication and energy consumption and greenhouse Group operates, via the adoption
infrastructures. gas emissions, while minimising of an appropriate Corporate
the generation of waste and Citizenship and Philanthropy
2. Boost the sale of high quality, promoting the recycling and reuse policy.
reliable and “green” products of materials.
and services. 8. Promote ethical conduct and the
6. Promote sustainable business training and professional growth
3. Contribute to the universal practices between our suppliers of personnel, protect diversity and
dissemination of energy and and business partners. the rights of workers and develop
telecommunications via reliable a healthy workplace environment.
and accessible infrastructure.
9. Develop effective, transparent and
4. Facilitate access to clean responsible communications with
energy, via the development stakeholders.
of solutions for the producers
of renewable energy and support
for the research into sustainable
technologies.
Prysmian Group
The long-term strategy translates into a search for stable equilibrium, balancing the adoption of
innovative and efficient processes (organization), the responsible management of performance
throughout the entire value chain (operations), the safeguarding of personnel and the recognition of
talent (people).
The Group completed the priority definition process in 2016. Analysis considered the main global and
industry trends, the 17 Sustainable Development Goals for 2030 (SDGs) defined by the United Nations,
requests from major International Sustainability Indexes (Dow Jones Sustainability Index, FTSE4GOOD,
CDP, Bloomberg ESG, etc.) and the needs and expectations of our stakeholders.
Sustainability strategy
SUSTAINABILITY INDICES UN SDGS STAKEHOLDERS
DOW JONES
SUSTAINABILITY INDEXES Employees
CDP
Customers
and Business Partners
STANDARD
ETHICS
Institutions
and Governments
FTSE4GOOD
ECOVADIS
SUPPLIER SUSTAINABILITY RATINGS
Universities
and Research Centers
STOXX
Society
BLOOMBERG and Communities
CLEAN 200
Shareholders
and Financial institutions
MSCI
SUSTAINALYTICS
Suppliers
and sub-contractors
Annual Report 2020

The Prysmian Group has implemented concrete actions designed to achieve the sustainability objectives
identified in the scorecard. In particular:
MAKE CITIES AND HUMAN SETTLEMENTS INCLUSIVE, SAFE, RESILIENT AND SUSTAINABLE
Increase the percentage of cables covered by the carbon footprint calculation: to this end,
a platform has been implemented that can calculate the carbon footprint of various types of
cable (Common Analysis).
ENSURE ACCESS TO AFFORDABLE, RELIABLE, SUSTAINABLE AND MODERN ENERGY FOR ALL
Develop innovative solutions that contribute actively to the transition towards the use of
renewable sources and the digitalisation of networks, such as cables for the production and
distribution of solar and wind energy, undersea cables for interconnections between countries
and optical fibre cables.
TAKE URGENT ACTION TO COMBAT CLIMATE CHANGE AND ITS IMPACTS, REGULATING
EMISSIONS AND PROMOTING THE DEVELOPMENT OF RENEWABLE ENERGY
Increase the number of plants with environmental, health and safety management certification.
Investments and other initiatives designed to reduce GHG emissions.
ENSURE SUSTAINABLE CONSUMPTION AND PRODUCTION PATTERNS
Increase third-party audits in specific areas, such as governance, the environment and human
resources.
ACHIEVE GENDER EQUALITY AND EMPOWER ALL WOMEN AND GIRLS
Increase the percentage of women in executive positions via the adoption of specific “diversity
and inclusion” programmes, such as the “Side-by-Side” project for the promotion of diversity
within the business, and the mentoring of female talents, such as the WLP (Women Leadership
Programme).
Prysmian Group
TACKLING THE PANDEMIC: PEOPLE FIRST

Despite the especially difficult year caused by the reaction to Covid-19, we have continued to invest
in the three pillars that support the creation of value (People, Culture & Organisation; Sustainable
Innovation & Lean Manufacturing; Extended Value Chain), obtaining concrete results for our people and
our stakeholders. And demonstrating the resilience of our ESG Identity.
Stakeholders value creation
PEOPLE. CULTURE SUSTAINABLE EXTENDED

& ORGANIZATION INNOVATION & LEAN VALUE CHAIN
MANUFACTURING
+29% investments in health Sustainability at the heart On Time Delivery at above

and safety of our innovation strategy 94% 1
Safety in work environments: Innovative P-Laser 525 kV Re-design of procurement
ongoing tests; distribution of HVDC cable flows
healthcare materials and PPEs
FlexRibbonTM cable, ultra- Emergency management of
Promotion of remote working compact outside plant cable the logistics
and its extension to all design that contains bend
Continuity of the supply chain
employees insensitive fibres
Constant dialogue with
Diversity in terms of gender Alesea, smart virtual assistant
customers
and age and focus on culture for cable drums
German Corridors, installation
Citizenship and social PG Connect, digital and
project of 2,300 km of high
responsibility sustainable solution based
voltage undergrounds
on the “Augmented Reality
Digitalisation of the Academy’s electrical cables, from the
technology”
activities North Sea to the south of the
Kablee, digital platform to Germany
Remuneration policy aligned
provide sustainable services,
with ESG objectives Submarine interconnection
as connectivity in rural areas
project between Crete and the
Peloponnese region
(1) Relates to the fully-consolidated perimeter, excluding the plants in Chiplun (India) and Sohar (Oman).
Annual Report 2020

CREATION OF VALUE FOR OUR STAKEHOLDERS
Prysmian Group’s strategy is founded on the sustainability principles on which the Group’s ESG identity is based. These principles are
applied at each phase of Prysmian’s value chain and are managed through the ESG governance model. Within the Group, value creation
is boosted by the significant inputs generated by Prysmian’s approach in reference to three pillars of the corporate identity: People,
Culture & Organisation, Sustainable Innovation & Lean Manufacturing and Extended Value Chain.
These inputs feed the Group’s value chain and allow Prysmian to create outputs that have the potential to generate an impact outside
the organisation, helping to achieve specific Sustainable Development Goals.
The Group’s value creation cannot overlook the external drivers that impact on Prysmian’s business and outputs, such as energy
transition, digitalisation, scarcity of resources and social issues.
ENERGY GOVERNANCE NATURAL

TRANSITION RESOURCES SCARCITY
SIGNIFICANT INPUT SIGNIFICANT OUPUT
PEOPLE, CULTURE & ORGANIZATION PEOPLE, CULTURE & ORGANIZATION

� Human rights policy � Employees welfare
� Diversity and Inclusion Policy � Improved People performances
� Investments in health & safety � Women in top management
� Whistleblowing channel SOURCING � Employees volunteering activities
� Corporate citizenship and philanthropy � High standard of cybersecurity
policy CUSTOMERS
� Cybersecurity procedures
SUSTAINABLE INNOVATION RESEARCH AND SUSTAINABLE INNOVATION

& LEAN MANUFACTURING DEVELOPMENT/ & LEAN MANUFACTURING
INNOVATION
ESG IDENTITY
� R&D investments � Innovative products
� Products carbon footprint analysis � Low carbon enabling products
Value chain phases
� Investments in energy efficiency and � More sustainable products
PROJECT
environmental impact IMPLEMENTATION
� GHG emission reduction
� New efficient and technological cable- � Waste recycling
laying vessel � Improved submarine installations
capabilities
LEAN
MANUFACTURING
EXTENDED VALUE CHAIN EXTENDED VALUE CHAIN
�
PEOPLE
Base metal and raw material � Engaged Suppliers to enhance ESG iniatives
� ESG evaluation of suppliers � Drums reused
� Conflict Minerals Policy � Greener logistic
� Digital tools for logistic � Customer satisfaction
� Customer centric approach � On time delivery
� Digital solutions for Clients support � Engaged stakeholders
� Continuous stakeholder engagement
DIGITALIZATION PUBLIC COMPANY SOCIAL ISSUES
The definition and implementation of effective governance, also inspired by the macro-factors that, in terms
of risks and opportunities, influence our Company and the sector in which we operate, hence results in the
creation of value for all our stakeholders, both internal and external.
Prysmian’s commitment to considering the human dimension as a priority has also been further reinforced
when addressing the dramatic effects of the Covid-19 pandemic. In 2020, investment in workplace health
and safety rose significantly. Particular efforts were made in distributing health material and protective
equipment, the use of rigorous prevention tests, as well as in redefining the procedures regulating workplace
access and use and the extensive implementation of remote working. Again, regarding the people dimension,
mention should be made of the improvement in the Diversity & Inclusion indicators (+2% compared to 2019)
and of our employee satisfaction level (65% in 2020).
Sustainable Innovation & Lean Manufacturing represent a strategically important pillar in pursuing the
creation of sustainable value. The Group’s efforts are directed primarily to the adoption of materials with
a reduced environmental impact, as well as to the improvement of the cable design to make them more
high-performing and sustainable. Lean Manufacturing also means a commitment to making the production
structure more efficient and sustainable, through investment in energy efficiency and process digitalisation
for a gross amount of Euro 246 million. Giving priority to people’s health and safety has allowed the Company’s
operations to be protected, with a level of activity in plants that has not suffered particular contractions, also
thanks to our highly diversified geographical presence.
Prysmian Group
The creation of sustainable value for all stakeholders is also profoundly linked to supply chain management.
The procurement of raw materials and the performance of the activities are based on strict sustainability
policies, both as regards environmental impact and respect for human rights and business ethics. Particular
attention is paid to the engagement and satisfaction of customers and all stakeholders relevant to the
business, as well as the impact on the communities in which the Company operates. On time delivery has
improved to 94%(1).
The resilience exhibited by the Company in dealing with the impacts of the pandemic has made it possible to secure
economic and financial solidity and ensure the creation of economic value for shareholders even in such a dramatic
year as 2020. Prysmian shares in 2020 recorded a positive performance of 35.3%, outperforming not only the
Italian market but also the European reference sector. From the second quarter of 2020, the stock started a growth
trend supported by market appreciation due to the efficacy and timeliness of the measures adopted to deal with
the pandemic, as well as the development of activities linked to renewable energies (the interconnection projects
such as the German Corridors, offshore wind farms and onshore activities).
PERFORMANCE OF PRYSMIAN STOCK TOTAL SHAREHOLDER RETURN
+37.1 %
220
200
In 2020
180
160
140
120
+155.5 %
100
80 Since its date

of listing
60
40
20
0
May-07
Nov-07
May-08
Nov-08
May-09
Nov-09
May-10
Nov-10
May-11
Nov-11
May-12
Nov-12
May-13
Nov-13
May-14
Nov-14
May-15
Nov-15
May-16
Nov-16
May-17
Nov-17
May-18
Nov-18
May-19
Nov-19
May-20
Nov-20
Prysmian FTSE MIB EURO STOXX 600 Industrial Goods & Services
The total economic value generated, namely the overall value created by the Group for all stakeholders,
stood at €10,273 million in 2020. A large part of the value was redistributed for a total of €10,099 million in
the form of:
80% Spending on Suppliers

14% Payment to Staff
5.6% Payment to Lenders
0.8% Payment to the Public Administration
0.04% Contributions to the Community
Finally, in the year of the pandemic, the Group also pursued its non-organic growth strategy with the
acquisition of 100% of EHC Global, a company operating in the vertical mobility industry. This transaction thus
allowed Prysmian Group to consolidate its growth strategy in value-added businesses. The integration with
General Cable was also completed, leading to significant value creation for all stakeholders, driven by a more
extensive and balanced geographical presence, as well as an expanded and synergistic product portfolio.
(1) Figure calculated excluding General Cable perimeter
Annual Report 2020

CLIMATE CHANGE
In view of the growing attention to Environmental, Social and Governance issues and the major
commitment involved in their oversight, as proposed by its Chairman, the Board of Directors has set
up a Sustainability Committee (the “Committee”) from among its members, to which the duties and
supervisory functions concerning sustainability previously the responsibility of the Remuneration,
Nominations and Sustainability Committee (now the Remuneration and Nominations Committee)
were transferred with effect from 5 March 2020. Among its duties, the Committee supports the Group
by advising it on the main initiatives to combat climate change, such as the adoption of Science-Based
Targets.
In addition, a dedicated Control and Risks Committee, consisting of members of the Group’s Senior
Management, ensures, through the Group’s Chief Risk Officer (CRO), that the Enterprise Risk Management
(ERM) process develops dynamically, taking into account changes in the business, needs and events
that impact the Group over time, including issues related to climate change. The Sustainability
Committee oversees, together with the Control and Risks Committee, the monitoring of both physical
and transitional risks arising from climate change and the implementation of projects and initiatives to
manage them.
As described in detail in the section “Risk factors and uncertainties”, the Group has identified a number
of physical and transitional risks related to climate change. In particular, the Group is exposed to
physical risks arising from the greater severity of extreme weather events that could potentially damage
production facilities, as well as risks related to the availability of water and risks related to rising sea
levels that could potentially damage production facilities. The Group monitors these risks over time and
identifies appropriate actions to mitigate them.
In 2020, the Group began work on developing science-based targets for emissions from its global
operations (Scope 1 and 2) and for emissions from the wider value chain (Scope 3). Prysmian
has defined an ambitious set of science-based targets in line with the requirements of the Paris
Agreement and has signed the 1.5° Business Ambition pledge with a “Net Zero” target between 2035
and 2040 for emissions from own activities (Scope 1 and 2) and by 2050 for value chain emissions
(Scope 3), in keeping with a 1.5°C scenario. As part of its decarbonisation strategy, Prysmian
Group is working with its sites and operations around the world, including to assess opportunities
for energy efficiency, renewable energy procurement and generation, as well as for reducing SF6
emissions. These opportunities will be managed through a Group-wide implementation and project
coordination program. Progress and opportunities for decarbonisation will be continually reviewed
as part of normal business processes.
In addition, Prysmian recognises its unique position in the global transition to Net Zero as a provider of
technologies and solutions that enable the global economy to decarbonise. In order to understand the
wider positive impact of its products and services, the Group is working with the Carbon Trust to define
an effective approach to quantifying their impact and using it to guide decision-making.
The risks and opportunities associated with Prysmian’s business strategy are identified, assessed
and managed using the ERM (Enterprise Risk Management) model, which incorporates the issues
of economic, social and environmental sustainability and those related to climate change using a
common, clearly defined methodology for measuring and assessing specific risk events in terms of
impact, probability of occurrence and adequacy of existing controls.
The Group has defined a Sustainability Scorecard with quantitative targets for the reduction of
greenhouse gas emissions by 2022 using specific indicators, as reported in its Disclosure of Non-Financial
Information.
Prysmian Group
CORPORATE GOVERNANCE
Effective and efficient, in order to create long-term sustainable value and produce a virtuous circle with
business integrity at its core.
Prysmian is aware of the importance of a good system of corporate governance system in achieving
strategic objectives and creating 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, 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 adopted principles, rules and procedures that govern and guide the conduct of activities
by all its organisational and operating units, as well as ensuring that all business transactions are carried
out in an effective and transparent manner.
During 2020 Prysmian continued to abide by the Corporate Governance Code(1). On 31 January 2020, the
Italian Corporate Governance Committee, supported among others by Borsa Italiana S.p.A., published
a new “Corporate Governance Code” which is applicable to the first financial year beginning after
31 December 2020, with related disclosures in the Corporate Governance Report to be published in 2022.
During the current financial year, the Board of Directors will evaluate any actions that may be needed to
comply with the new recommendations introduced by the new Corporate Governance Code.
Further information about:

i) compliance with the principles and recommendations of the Corporate Governance Code and the
reasons for any non-compliance with one or more of its provisions and;
ii) any corporate governance practices actually applied by the Company going above and beyond
statutory or regulatory obligations;
can be found in the “Report on Corporate Governance and Ownership Structure”, approved by
the Board of Directors and available in the Group/Governance section of the corporate website at
www.prysmiangroup.com.
CORPORATE GOVERNANCE STRUCTURE
The model of governance and control adopted by Prysmian is the traditional one, with the presence of a
general meeting of the shareholders, a Board of Directors and a Board of Statutory Auditors. Prysmian’s
corporate governance structure is based on the central role of the Board of Directors (as the most senior
body responsible for managing the company in the interests of shareholders) in shaping strategy, in
ensuring the transparency of the decision-making process and in establishing an effective system of
internal control and risk management, including decision-making processes for both internal and
external affairs.
(1) “Corporate Governance Code for Listed Companies - Ed. July 2018” - approved by the Corporate Governance Committee and promoted by Borsa Italiana S.p.A.,
ABI, Ania, Assogestioni, Assonime and Confindustria.
Annual Report 2020

An overview of the Company’s corporate governance structure at 31 December 2020 now follows, along
with a description of its main features.
GOVERNANCE STRUCTURE
SHAREHOLDERS’
MEETING
BOARD OF STATUTORY
LEGAL AUDITORS
AUDITING FIRM
P. Libroia (Chair)
EY S.p.A. P.F. Lazzati
L. Gualtieri
BOARD OF DIRECTORS
C. De Conto
Chair - Independent Director
EXECUTIVES RESPONSIBLE
FOR PREPARING
Executive Independent CORPORATE REPORTS
Directors Directors
A. Brunetti and C. Soprano
V. Battista P. Amato
CEO
SUPERVISORY BODY J.V. Bigio
pursuant to Decree 231/01 P. F. Facchini M.E. Cappello
CFO
M.L. Mosconi (Chair) M. de Virgiliis
S. Corbella F.I. Romeo COMPLIANCE
F. Gori
Senior Advisor AND AUDIT OFFICER
A. Nespoli
M.L. Mariani
M. Battaini A. Nespoli
COO M. Kung
CONTROL SUSTAINABILITY COMPENSATION

AND RISK COMMITTEE COMMITTEE AND APPOINTMENTS
COMMITTEE
F. Gori (Chair) M. de Virgilis (Chair)
M. Kung P. Amato (Chair)
J.V. Bigio M.L. Mariani M.E. Cappello
M.L. Mariani C. De Conto
Prysmian Group
In compliance with the provisions of art. 14 of the By-laws, the Company is currently managed by a
Board of Directors consisting of twelve members - who will remain in office until the date of the annual
general meeting called to approve the financial statements for the year ended 31 December 2020 - of
whom eight are non-executive.
At 31 December 2020, seven of the Directors were men and five women, with four of them in the 45-55
age bracket and eight in the over 55 bracket.
The Board of Directors is vested with the broadest possible powers of ordinary and extraordinary
management of the business, except those which by law are the exclusive prerogative of the
shareholders in general meeting. In line with the recommendations of the Corporate Governance Code,
the non-executive Directors are sufficiently numerous and have enough authority to ensure that their
judgement carries significant weight in Board decision-making. Seven of the non-executive Directors
are independent within the meaning of art. 148, par. 3 of Legislative Decree 58 dated 24 February 1998
(known as the Unified Finance Act) and of art. 3.C.1. and art. 3.C.2. of the Corporate Governance Code,
while one non-executive Director is independent within the meaning of art. 148, par. 3 of the Unified
Finance Act. The Board of Directors has appointed a Chief Executive Officer and General Manager from
among its members and granted him all the authority and powers of ordinary management of the
company necessary or useful for conducting its business.
Management of the business is the responsibility of the Directors, who carry out those activities
necessary to implement the corporate purpose. The Board of Directors is also responsible for the Group’s
internal control and risk management system, requiring it to verify the system’s adequacy and adopt
specific guidelines; in so doing the Board acts with the support of other bodies involved in the internal
control and risk management system, namely the Control and Risks Committee, the Director in charge
of the internal control and risk management system, the Chief Audit & Compliance Officer, the Board of
Statutory Auditors and the Managers responsible for preparing company financial reports.
Completing the Prysmian corporate governance structure is a Remuneration and Nomination

Committee, a Sustainability Committee and a Monitoring Board instituted under Legislative Decree
231/2001.
Further information regarding (i) the corporate governance system of Prysmian S.p.A. (ii) its ownership
structure, as required by art. 123-bis of the Unified Finance Act and (iii) Directors’ disclosures about
directorships or statutory auditor appointments held in other listed or relevant companies, can be
found in the “Report on Corporate Governance and Ownership Structure”, prepared in accordance with
art. 123-bis of the Unified Finance Act and available in the Group/Governance section of the corporate
website at www.prysmiangroup.com.
Annual Report 2020

CORPORATE STRUCTURE
The companies consolidated on a line-by-line basis at 31 December 2020 are presented below.
Grupo General
Cable Sistemas. S.L.
(Spain) 1
100%
Draka
Holding B.V.
PRYSMIAN S.P.A. 100%
100% 100% 100% 100% 100% 100% 100% 100%
Prysmian Fibre Ottiche Prysmian Prysmian Prysmian General Cable Brasil Prysmian Draka Cableteq
PowerLink S.r.l. Sud - FOS S.r.l. Treasury S.r.l. Pension Scheme Cavi e Sistemi Industria e Comercio Cavi e Sistemi S.r.l. Asia Pacific
Trustee Ltd. Italia S.r.l. de Condutores Holding Pte Ltd.
Eletricos Ltda. (Brazil)3
95% 100% 100% 91.844% 100%
Prysmian Prysmian Comergy Ltd. Prysmian Grupo General

PowerLink Electronics S.r.l. Cabos e Sistemas Cable Sistemas. S.L.
Saudi LLC do Brasil S.A.16
83.746% 67% 100% 100% 99.999985%
Turk Prysmian Prysmian Tianjin Prysmian Prysmian Cables Suzhou Draka

Kablo Ve Cables Co. Ltd. MKM Magyar Chile S.p.A. Cable Co. Ltd.
Sistemleri A.S.21 Kabel Muvek KFT
59.74% 95% 100% 100% 100% 99.999991% 100%
Prysmian Energia Prysmian Prysmian Prysmian Prysmian Jaguar Draka Offshore

Cables y Sistemas 59.74% Consultora Wuxi Cable (China) Investment Hong Kong Communication Asia Pacific Pte Ltd.
de Argentina S.A.19 Conductores e Company Ltd. Company Ltd. Holding Ltd. Consultancy Services
Instalaciones SAIC4 Private Ltd.8
50% 100% 100% 100% 100% 70.250172%
Prysmian Cable Prysmian Prysmian Cable Prysmian Prysmian MCI-Draka

Systems Pte Ltd.1 Cables and Systems (Shanghai) Co. Ltd. Technology Australia Pty Ltd. Cable Co. Ltd.11
Canada Ltd. Jiangsu Co. Ltd.
100%
100% 100% 100%
Prysmian Cables Prysmian Re Prysmian Sindutch Cable

Asia-Pacific Pte Ltd. Company Designated New Zealand Ltd. Manufacturer
Activity Company Sdn Bhd
99.48%
99.9995% 99.95% 100% 100%
P.T. Prysmian Prysmian Cabluri Prysmian Prysmian Singapore Cables

Cables Indonesia2 Si Sisteme S.A.5 Kablo S.r.o.7 OEKW GmbH Manufacturers
Pte Ltd.
100%
99% 100%
P.T. Prysmian Limited Liability 50.998%

Prysmian Prysmian (French) Cable Supply and
Cables Indonesia2 Company Prysmian Cables et Systemes 100% Holdings S.A.S. 100% Consulting
RUS6 Auto Cables France SAS Company Pte Ltd.
Tunisie S.A.
100%
100%
Draka (Malaysia)
Eurelectric Sdn Bhd
Tunisie S.A.3
100% 100%
SICABLE Draka Marketing

Societé Ivoirienne and Services
de Cables S.A. 77.7972% Sdn Bhd
Prysmian Group
Finland OY9
19.93%
100% 100% 99.996% 99.9983% 100% 100% 100%
Prysmian Group Prysmian Group Draka Durango Draka Mexico Prysmian Group Draka NK Cables NK Mexico
Denmark A/S North Europe AB S. De R.L. de C.V.21 Holdings Baltics AS (Asia) Pte Ltd. Holdings S.A. de CV
S.A. de CV10
100%
99.9983% 100% 100%
Prysmian Group
Sverige AB Prysmian Prysmian Group Prysmian
Cables y Sistemas Norge AS Cables and Systems
de Mexico (US) INC.
S. De R.L.De C.V.18
99.9999975% 100%
100% 100%
Draka Draka
Philippines Inc. France S.A.S. Prysmian Prysmian Cables
Construction and Systems
Services Inc USA LLC
100% 100% 100% 100%

100% 100% 100%
Draka Draka Comteq Draka P.O.R. S.A.S.
Paricable S.A.S France S.A.S. Fileca S.A.S. Draka Elevator Draka Elevator Draka Transport
Products Products. Inc. USA. LLC
Incorporated
6 0% 75%
Nantong Zhongyao Nantong Haixum

Draka Elevator Draka Elevator
Continues on next page
Products Co. Ltd. Products Co. Ltd.
Prysmian Group
Continues from previous page
100% 100% 100% 100% 100% 100% 100%
Draka Comteq Draka Prysmian Prysmian UK Draka U.K. Draka U.K. Ltd. Prysmian
Singapore Pte Ltd. Comteq B.V. Netherlands Group Ltd. Group Ltd. Powerlink
Holding B.V. Services Ltd.
100% 100% 100% 100% 100%
Draka Comteq Draka Comteq Draka Comteq Draka Comteq Prysmian Cable
Germany GmbH Germany Fibre B.V. UK Ltd. Cables & Systems Makers Properties
& Co. KG Verwaltungs Ltd. 75% and Services Ltd.
GmbH
5 5% 49.352319% 100%
Shanghai Guang Draka Comteq Prysmian Prysmian Cables

Ye Optical Fibre Cabos Brasil S.A.17 Netherlands B.V. 100% (2000) Ltd.
Cable Co. Ltd.
100% 100% 100%
Draka Kabel B.V. Donne NKF Vastgoed Prysmian

Draad B.V. III B.V.22 100% Construction
Company Ltd.
51.17% 100% 100%
Oman Cables Draka Deutschland NKF Holding Prysmian Telecom

Industry (S.A.O.G.) Zweite (Deutschland) 100% Cables and Systems
Beteiligungs GmbH i.L. UK Ltd.
GmbH
100% 100% 100% 90% 10% 49.9%
Associated Oman Aluminium Draka Deutschland Draka Deutschland Draka Comteq

Cables PVT Ltd. Processing Erste Beteiligungs GmbH Berlin GmbH
Industries (SPC) GmbH & Co. KG15
98.52% 100% 100%
Draka Hohn GmbH Kaiser Kabel

Belgium N.V.12 GmbH
100% 100% 93.75% 100%
Draka Kabely S.r.o. Draka Service Prysmian Kabel Draka Deutschland

GmbH Und Systeme Verwaltungs GmbH
GmbH14
99% 100%
NKF Vastgoed I Prysmian

B.V.13 Unterstuetzun- Wholly owned
gseinrichtung
Lynen GmbH Third-party ownership
100% 100% Italy
Draka Holding. S.L. Prysmian Cables

UK - Ireland
(Sociedad Spain S.A.
Unipersonal) (Sociedad
Unipersonal) France
Netherlands
Nordics
Germany
100% 100% 100% 99.99%
Spain
Silec Cable. SAS Norddeutsche General Cable General Cable
(France) Seekabelwerke Italia Sarl in Nordic A/S
Danubian Area
GmbH liquidazione (Norway)
(Germany) (Italy)
Switzerland
Oceania
NSW Technology
Limited ASEAN
(Scotland. UK)
China
Russia
1. Prysmian Cables & Systems Ltd. 50% 12. Draka Kabel B.V. 1.48% South America
2. Prysmian Cavi e Sistemi S.r.l. 0.52% 13. Prysmian Netherlands B.V. 1%
3. Prysmian (French) Holdings S.A.S. 0.005%. 14. Prysmian S.p.A. 6.25%
Prysmian Cavi and Sistemi S.r.l. 0.005% 15. Prysmian Netherlands B.V. 50.10% North America
4. Prysmian Cavi and Sistemi S.r.l. 5% 16. Prysmian S.p.A. 0.0401%
5. Prysmian Cavi and Sistemi S.r.l. 0.0005% Draka Holding B.V. 1.6874% Turkey
6. Prysmian Cavi and Sistemi S.r.l. 1% Draka Comteq B.V. 6.42828%
7. Prysmian S.p.A. 0.005% 17. Prysmian Cabos and Sistemas do Brasil S.A. 50.647681%
Africa
8. Prysmian S.p.A. 0.000009% 18. Draka Mexico Holdings S.A. de CV 0.0017%
9. Draka Comteq B.V. 2.27% 19. Prysmian Cabos and Sistemas do Brasil S.A. 0.11%
10. Draka Comteq B.V. 0.000002% 20. Turk Prysmian Kablo Ve Sistemleri A.S 0.4614% Luxembourg
11. Draka (Malaysia) Sdn Bhd 0.000023%. 21. Draka Holding B.V. 0.004%
Sindutch Cable Manufacturer Sdn Bhd 0.000023%. 22. Prysmian Netherlands B.V. 1.00% Oman
Singapore Cables Manufacturers Pte Ltd 0.000023%
Bilancio Annuale 2020

Continues from previous page Prysmian

Cables and Systems
(US) INC.
100%
GK Technologies.
Inc.
(US-New Jersey)
100% 100% 99.995% 100% 99.8% 95.5%
General Cable General Cable General Cable General Cable General de Cable General Cable
Holdings (UK) Trinidad Limited Caribbean S.r.l. Industries. Inc. de Mexico del Norte. Holdings
Limited (Trinidad) (Dominican (US-Delaware) S.A. de CV (Mexico)7 Netherlands CV
(England) Republic)6 (Netherlands)8
100% 100%
General Cable GC Global

Services Europe Holdings. Inc.
Limited (US-Delaware)
(England)
100% 100% 100% 100% 80.41734%
Phelps Dodge Prestolite Wire Prestolite de General Cable General Cable de 100%
Enfield Corporation (Shanghai) Mexico. S.A. de CV Technologies Mexico S.A. de CV
(US-Delaware) Co. Ltd. (China) (Mexico)9 Corporation (Mexico)11
(US-Delaware)
100% 30.7% 99.998%
Phelps Dodge National Cables Servicios

National Cables 69.3% (Pty) Ltd Latinoamericanos
Corporation (South Africa) GC S.A. de CV
(US-Delaware) (Mexico)10
100%
General Cable
Industries. LLC
(US-Delaware)
100%
General Cable
Canada
Holdings LLC 100%
(US-Delaware)
General Cable
Company Ltd.
100% (Canada)
Diversified
Contractors. Inc.
(inactive) 100%
(US-Delaware)
YA Holdings Ltd.
(Cayman Islands)
66.67%
Phelps Dodge Yantai

China Holdings. Inc.
(Cayman Islands)
Prysmian Group
100% 100% 100% 100% 100% 99.349%
General Cable Asia General Cable Cahosa S.A. General Cable General Cable General Cable
Pacific & Middle Investments. (Panama) Phoenix South Overseas Holdings. Holdings (Spain).
East Company SGPS S.A. Africa Pty. Ltd. LLC (US-Delaware) S.L. (Spain)4
Limited (Thailand) (Madeira) (South Africa)
100% 59.39% 67.14% 100%
General Cable Alambres y Cables Electroconductores Cables Electricos GC Latin America

Celcat. Energia e de Panama S.A. de Honduras Ecuatorianos C.A. Holding. S.L.
Telecomunicaçoes (Panama)1 S.A. de CV CABLEC (Ecuador) (Spain)
S.A. (Portugal) (Honduras)2
78.08%
99.80%
99.80% 73.52%
Cobre Cerrillos S.A.
General Cable Condel. Conducen. SRL (Chile)
Cabos de Energia e (Costa Rica)3
Telecomunicaçoes
S.A. (Angola)
99.96%
99%
Productora de Cables
Proveedora de Procables S.A.S.
Cables y Alambres (Colombia)5
PDCA Guatemala.
S.A. (Guatemala)
99.99999%
1 00%
General Cable
Alcap Comercial S.A. Peru S.A.C.
(Panama) (Peru)
99.95%
Conducen Phelps Dodge

Centroamerica-El
Salvador. S.A. de CV
(El Salvador)
99.998%
PDIC Mexico.
S.A. de CV
(Mexico)
Wholly owned
Third-party ownership
Italy
UK - Ireland
France
Netherlands
Nordics
Germany
Spain
Portugal
Oceania
1. Cahosa S.A. 21.92%
2. Cahosa S.A. 40.61% ASEAN
3. Cahosa S.A. 26.48%
4. General Cable Overseas Holdings. LLC 0.6510%
5. GK Technologies. Incorporated 0.04% China
6. Diversified Contractors. Inc. 0.005%
7. General Cable Industries. Inc. (US-Delaware) 0.2% South America
8. GC Global Holdings. Inc. (US-Delaware) 1%
Phelps Dodge National Cables Corporation (US-
North America
Delaware) 3.5%
9. GK Technologies. Incorporated 0.20%
10. General Cable Technologies Corporation (US-Delaware) Turkey
0.002%
11. General Cable Technologies Corporation 0.00000015% Africa
GK Technologies. Incorporated 0.00000015%
Annual Report 2020

ORGANISATIONAL STRUCTURE (*)
BOARD OF DIRECTORS
Audit and
CEO
Compliance
A. Nespoli V. Battista
Senior Advisor
F. Romeo
Finance Admin Hr & Corporate Corporate Digital

GROUP Communication Innovation Sustainability
& Control & It Organization Affairs Strategy & Dev. Innovation
FUNCTIONS
P.F. Facchini F. Rutschmann J. Zirulia I. Longhi L. Caruso S. Siripurapu S. Brandinali M.C. Bifulco
Also reporting Also reporting
to CFO as CIO to CFO as IR
Projects Energy Telecom

DIVISIONS
H. Ozmen F. Fanciulli P. Vanhille
Chief Operating Officer
M. Battaini
Business Research &

BUSINESS Operations Development
OPERATIONS
G. Sofia S. Siripurapu
North South (**) Cent.East North

UK Latam 5 MEAT & India China Osea 6
REGIONS Europe 1 Europe 2 Europe 3 America 4
M. Del Brenna J. M. Arata L. Tardif F. Persson A. Pirondini J. Mogollon A. Habaj M. Bavaresco E. Aydogdu
Intermediate BU Integrated BU
(*) The organisation chart presented reflects the organisational structure in February 2021.
(**) France Aerospace representative.
1. NORTHERN EUROPE: Estonia, Finland, Norway, Russia, Scandia (Denmark and Sweden), Netherlands.
2. SOUTHERN EUROPE: Belgium, France, Italy, Portugal, Spain, Tunisia, Côte d’Ivoire and Angola.
3. CENTRAL EASTERN EUROPE: Austria, Czech Republic, Hungary, Germany, Romania, Slovak Republic.
4. NORTH AMERICA: Canada, USA.
5. LATAM: Argentina, Brazil, Central America, Chile, Mexico, Peru, Colombia, Ecuador.
6. MEAT: Middle East & Africa, Turkey, India.
Prysmian Group
TOP MANAGEMENT
Directors
VALERIO BATTISTA
Chief Executive Officer.

Managing Director of the Prysmian Group.
Born in Arezzo on 8 January 1957. With a degree in Mechanical Engineering

from the University of Florence, Valerio Battista is a manager with
extensive skills and experience built up in the industrial sector over 30
years, first with the Pirelli Group and then with the Prysmian Group, where
he took the helm in 2005. His earlier roles within the Pirelli Group gave him
increasing responsibilities, including the restructuring and reorganisation
of Pirelli Cables in the period 2002-2004. As a result, the division became
one of the sector’s most profitable and competitive businesses.
He then played a key role in the 2005 creation of the Prysmian Group,
which obtained a stock exchange listing in 2007. The Group is a world
leader in the supply of power and telecom cables.
He was the Chairman of Europacable from June 2014 to March 2019 and
has been the Lead Independent Director at Brembo S.p.A. since April
2017. Valerio Battista became an Executive Director of the Company in
December 2005. With reference to his current mandate, he was elected
on 12 April 2018 from the list presented by the Board of Directors, which
obtained the majority of the votes cast at the Shareholders’ Meeting.
MASSIMO BATTAINI
Chief Operating Officer Prysmian Group.

Executive Director.
Member of the Board of Directors of Prysmian Group since 2014. Before

his appointment as Chief Operating Officer Prysmian Group in February
2021, he was the CEO of Prysmian Group North America. His career in the
Pirelli Group began in 1987 where, over a period of 18 years, he held various
positions in R&D and Operations. After leading the Business Development
department from 2000 to 2002, with responsibility for the Tyres, Power
Cables and Telecom Cables businesses, he was appointed as the Pirelli
Group Operations Director for Power Cables and Telecom Cables.
Following the creation of Prysmian Group on acquisition of the power

and telecom cable activities of Pirelli in 2005, he became the CEO of
Prysmian UK. Between 2011 and 2014 he served as the Chief Operating
Officer of Prysmian Group, and then as Senior Vice President Business
Energy Project and Chairman and CEO of Prysmian PowerLink S.r.l. He was
the CEO of Prysmian Group North America from June 2018 to February
2021. Battaini graduated in Mechanical Engineering from Politecnico di
Milano has an MBA from SDA Bocconi.
Prysmian Group
PIER FRANCESCO FACCHINI
Chief Financial Officer.

Executive Director.
Born in Lugo (RA) on 4 August 1967. Graduated from Milan’s Bocconi

University in 1991 with a degree in Business Economics. His initial
work experience was gained at Nestlè Italia, where he held various
roles in the Administration and Finance area from 1991 to 1995.
Between 1995 and 2001 he worked for several companies within the
Panalpina group, including as Regional Financial Controller for the
Asia and South Pacific area and as Administration, Finance and Control
Manager at Panalpina Korea (Seoul) and at Panalpina Italia Trasporti
Internazionali S.p.A. In April 2001 he become the Finance and Control
Director of the Consumer Services BU at Fiat Auto, which he left in
2003 on appointment as the CFO of Benetton Group, where he stayed
until November 2006. Facchini joined the Board of Directors of the
Company in February 2007. With reference to his current mandate,
he was elected on 12 April 2018 from the list presented by the Board
of Directors, which obtained the majority of the votes cast at the
Shareholders’ Meeting.
FABIO IGNAZIO ROMEO
Senior Advisor
Executive Director.
Born in Rho (MI) on 25 August 1955. Graduated with a degree in

Electronic Engineering from Politecnico di Milano in 1979 and later
obtained an MS and a Ph.D in Electronic Engineering and Computer
Sciences from the University of California, Berkeley, in 1986 and
1989 respectively. His working career started in 1981 as a designer of
control systems for chemical plants at Tema (part of the Eni group). In
1982 he moved to Honeywell as a member of the Technical Staff and,
later, as a Technical Advisor to the CEO. In 1989 he transferred to the
Electronics division of Magneti Marelli as the Innovation Manager. In
1995 he became the Managing Director of the Rearview division and
then, in 1998, took the same role at the Electronic Systems division,
again at Magneti Marelli. In 2001 he moved to Pirelli & C. S.p.A. as
Director of the Truck division of Pirelli Tyre and, one year later, became
the Utilities Director of Pirelli’s Cables division. In December 2004 he
was appointed as Director of the Prysmian Group’s Power Cables and
Systems BU, a position that he held until December 2013 when he took
responsibility for Corporate Strategy and Development. Romeo joined
the Board of Directors of the Company in February 2007. With reference
to his current mandate, he was elected on 12 April 2018 from the list
presented by the Board of Directors, which obtained the majority of
the votes cast at the Shareholders’ Meeting.
Annual Report 2020

Senior Managers
FRANCESCO FANCIULLI
Executive Vice President Energy.
Francesco Fanciulli has been EVP of the Energy segment since

February 2018. He graduated in law from Milan’s Università Cattolica
del Sacro Cuore. Joining Procter & Gamble in 1988, he held various
leadership roles in sales and marketing before taking responsibility
for Mass Distribution in Italy. He moved to Pirelli in 1998 as Marketing
Director of the Tyres division, after which he took various sales-related
responsibilities within that division, rising to become SVP Sales &
Marketing. Since 2008 his vast Sales & Marketing experience has been
at the service of Prysmian, where he has held numerous geographical
responsibilities, including CEO India, CEO Turkey and CEO Danubian
Area. From 2015, on creation of the Central East Europe Region, he has
served as its CEO with responsibility for integration between Germany
and the Danubian area and for developing the industrial footprint of
the Region.
PHILIPPE VANHILLE
Executive Vice President Telecom.
Philippe Vanhille has been EVP Telecom Division since May 2013.
After graduating in 1989 with a degree in Mechanical Engineering from

Lyon University (France), he commenced his professional career as a
Research Engineer, working on the development of Renault’s Formula
1 programme, before moving to the cables sector in 1991 with Alcatel
Cable. Over a period of two decades he held various Operations and
General Management positions in the cables industry, with Alcatel
and Draka, and then in copper and optical fibre cables for the power
and telecom sectors. At the time of the Prysmian-Draka merger he was
responsible for Draka’s Optical Fibre BU and then held the same position
within the Prysmian Group until his appointment as EVP Telecom
Division.
Prysmian Group
HAKAN OZMEN
Executive Vice President Projects.
Hakan Ozmen has been EVP Projects and Chairman and Managing
Director of Prysmian Powerlink S.r.l. since June 2018. After graduating
in Industrial Engineering, he began his professional career as an
Internal Auditor and corporate secretary at Siemens AS in Istanbul. In
August 1999, he obtain an MBA from Istanbul’s Yeditepe University. In
September 1999, he joined Pirelli S.p.A. as Internal Audit Manager for the
EMEA region, performing audits in Germany, Italy, Finland, the United
Kingdom, Turkey, Romania and the Czech Republic. In January 2001, he
was appointed as the Administration, Finance and Control Director of
Turk Pirelli in Istanbul, and later become Chairman of the Board there.
After serving as the Global Director of Prysmian Telecom for two years,
in 2011 he was Chairman and CEO North America of Prysmian Group until
May 2018.
Annual Report 2020

Prysmian and the financial markets
OWNERSHIP STRUCTURE
Prysmian Group has been a Public Company to all intents and purposes for many years with a free float of
100% of capital, of which around 78% held by institutional investors.
The listing of Prysmian’s ordinary shares, resulting from the sale of 46% of the shares held by
the Goldman Sachs Group Inc., took place on 3 May 2007 at a price of Euro 15.0 per share,
corresponding to a capitalisation of Euro 2.7 billion. Subsequent to the listing, the Goldman Sachs
Group Inc. gradually reduced its interest in the company, control of which it had acquired in July
2005, by placing the remaining 54% of the shares with institutional and selected investors in several
successive stages: i) approx. 22% in November 2007, ii) approx. 14% in November 2009, iii) approx.
17% in March 2010. Valerio Battista, Prysmian’s Chief Executive Officer, announced on occasion of
the last sale that he had purchased 1,500,000 shares, corresponding to around 0.8% of share capital
and taking his total shareholding to 1.2%, climbing to approximately 1.5% during the course of
subsequent years.
At 31 December 2020, the Company’s free float was equal to 100% of the outstanding shares and
significant shareholdings (in excess of 3%) accounted for approximately 26% of total share capital,
meaning there were no majority or controlling interests. Prysmian is now one of Italy’s few globally
present industrial concerns to have achieved true Public Company status in recent years.
At 31 December 2020, the share capital of Prysmian S.p.A. amounted to Euro 26,814,424.60, comprising
268,144,246 ordinary shares with a nominal value of Euro 0.10 each. The ownership structure at this date
is shown below.
SHARE OWNERSHIP BY TYPE AND SIGNIFICANT SHAREHOLDERS
78.0% Institutional 5.2% BlackRock. Inc.

Investors 4.0% UBS AG
8.3% Retail 3.9% T. Rowe Price Group. Inc.
1.8% Treasury shares 3.7% Crédit Agricole S.A.
11.9% Other (*) 3.2% Sun Life Financial, Inc.
3.1% AXA S.A.
3.0% Schroders PLC
2.8% The Vanguard Group. Inc.
2.7% Hardman Johnston Global
Advisors LLC
Source: Nasdaq, January 2021 68.4% Other
(*) Mainly comprises shares held by non-institutional investors and by third-party holders of shares for trading purposes.
Prysmian Group
INSTITUTIONAL INVESTORS BY GEOGRAPHICAL AREA
30% US
25% UK
11% France
8% Italy
3% Sweden
18% RoE
Source: Nasdaq, January 2021 5% RoW
INSTITUTIONAL INVESTORS BY INVESTMENT STYLE
37% Growth
19% GARP
17% Value
15% Index
4% Hedge Fund
Source: Nasdaq, January 2021 8% Other
ESG INSTITUTIONAL INVESTORS
65% Other investors

Source: Nasdaq, January 2021 35% ESG-Focused
Annual Report 2020

The geographical ownership structure shows a predominant presence of the United States, which
represents 30% of the institutional investor total, followed by the United Kingdom, which accounted
for 25%, both up on the previous year when these countries represented 28% and 21% of the total
respectively. Italy accounted for around 8% of the capital held by institutional investors, down from
13% in 2019. France’s share was slightly down on the year before at about 11%. The proportion of Asian
investors (primarily from Japan and Hong Kong) was essentially stable.
Overall, around 73% of share capital is held by investment funds with Value, Growth or GARP (Growth
at Reasonable Price) strategies, which therefore expect value creation from the stock in the medium
to long term and consider the current valuation to be below the prospects offered by the company’s
fundamentals. The proportion of investors adopting an Index or passive investment strategy, based on
the principal stock indexes, was slightly down on 2019, while the Hedge Fund component, focused on a
shorter time horizon, increased in weight to 4% of the total from 2% a year earlier.
The presence of ESG investors, i.e. those who place Environmental, Social and Governance issues at the
centre of their investment strategies, has also continued to grow. Over the last two years, the proportion
of such investors in Prysmian’s shareholder base has increased substantially, from around 13% to 35% at
present.
ANNUAL GENERAL MEETING

The Annual General Meeting saw participation by over 66% of share capital, with 1,973 shareholders present
by proxy.
The Annual General Meeting of the shareholders of Prysmian S.p.A. was held on 28 April 2020 in single
call to adopt resolutions on a number of items: approval of the 2019 financial statements, allocation
of profit for the year and declaration of a dividend, adoption of an employee incentive plan with
related authorisation for a capital increase serving this plan, approval of the remuneration policy and
consultation on the remuneration report. The meeting, attended by proxy by 1,973 shareholders,
representing more than 66% of share capital, approved every item on the agenda by a wide majority.
The Annual General Meeting also approved the declaration of a dividend of Euro 0.25 per share. The
dividend was paid on 20 May 2020, involving a total pay-out of approximately Euro 66 million.
FINANCIAL CALENDAR
10 March 2021 Approval of the draft financial statements and consolidated financial statements as of 31 December 2020
28 April 2021 Shareholders’ Meeting to approve the Annual Report as of 31 December 2020
13 May 2021 Approval of the quarterly financial report as of 31 March 2021
28 July 2021 Approval of the half-year financial report as of 30 June 2021
11 November 2021 Approval of the quarterly financial report as of 30 September 2021
Prysmian Group
SHAREHOLDERS’ MEETING: REPRESENTED CAPITAL
70%
Public Company (no controlling shareholders)
60%
50%
40%
30%
20%
10%
0%
2008 2009 2010 2011 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Jan Apr
Capital represented in the Shareholders’ Meeting Participation of the main shareholder in the Shareholders’ Meeting
SHAREHOLDERS’ MEETING: NUMBER OF PARTICIPANTS PRESENT OR REPRESENTED
2,500
Public Company (no controlling shareholders)
2,000
1,500
1,000
500
0
2008 2009 2010 2011 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Jan Apr
Number of shareholders attending the meeting
Annual Report 2020

FINANCIAL MARKET PERFORMANCE

2020 was a mixed year for financial markets, with a steep decline in the first few months sparked by the
Covid-19 pandemic, and a recovery in the second half of the year, thanks in part to expansionary measures
adopted in the major economic areas and the gradual easing of restrictive measures necessitated by the
pandemic.
Prysmian S.p.A. was floated on the Italian Stock Exchange on 3 May 2007 and since September 2007
has been included in the FTSE MIB index, comprising the top 40 Italian companies by capitalisation and
stock liquidity. The Prysmian stock has since entered the principal world and sector indexes, including
the Morgan Stanley Capital International index and the Stoxx Europe 600, made up of the largest
companies by capitalisation, and the FTSE4Good, composed of a select basket of listed companies that
demonstrate excellent Environmental, Social and Governance (ESG) practice. Since 2019, Prysmian
Group has also been included in the Dow Jones Sustainability World index, one of the most important
international sustainability indexes for tracking ESG performance.
The main European stock indexes reported a predominantly negative performance in 2020, mainly due
to the Covid-19 pandemic, with the exception of the German one (DAX 30), which ended the year up
3.5%. The Spanish index (IBEX 35) recorded the biggest slump with -15.5%, followed by those in the
UK (FTSE 100) with -14.3% and France (CAC 40) with -7.1%. The Italian market index (FTSE MIB), on the
other hand, was a bit better but still negative with -5.4%. The US stock market outperformed Europe
in 2020, with all three major indexes sharply up: S&P 500 +16.3%; Nasdaq Composite +43.6% and Dow
Jones Industrial +7.2%. Among the major emerging countries, the Brazilian index (Bovespa) climbed
2.9%. In China, the Shanghai Composite index rose by 13.9%, while in Hong Kong, the Hang Seng index
turned down by -3.4%.
The Prysmian stock gained 35.3% in 2020, closing the year at Euro 29.08 per share compared with Euro
21.49 at the end of 2019. It thus outperformed not only the Italian market whose FTSE MIB index closed
the year down 5.4%, but also the European benchmark sector (Capital Goods Industrial Services), whose
STOXX Europe 600/Ind Goods & Svcs index closed 2020 up 4.9%.
The average share price was Euro 21.81 in 2020, up from Euro 18.55 in 2019. Including dividend pay-outs,
the Total Shareholder Return (TSR) offered by the Prysmian stock was +37.1% in 2020 and +155.5% since
its original listing. Excluding the contribution of dividends and so just considering the change in price,
the performance was +35.3% in 2020 and +89.3% since listing.
The stock’s performance during 2020 was influenced both by external factors (such as general
stockmarket trends affected by spread of the pandemic) and by factors relating to Prysmian’s specific
business and financial performance. Since the second quarter of 2020, the stock initiated an upward
trend, supported by market appreciation for the Group’s effective and swift measures to cope with the
pandemic, as well as by the development of its renewable energy business (involving interconnection
projects such as the German Corridors, wind farms and onshore activities).
The Group’s solidity and expectations of growth in its key markets, partly thanks to Energy Transition
and Digitalisation megatrends, have enabled the Prysmian stock to retain its strong market appeal,
as confirmed by financial analyst recommendations at year end, of which 73% were “Buy” and 27%
“Hold”.
Prysmian Group
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PERFORMANCE OF PRYSMIAN STOCK

May-11
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PERFORMANCE OF PRYSMIAN STOCK SINCE IPO
Nov-12
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EURO STOXX 600 Industrial Goods & Services

Nov-13
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Group Annual Report
2.0
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Volume - Mln shares
20.0
Annual Report 2020

53
During 2020, the stock’s liquidity saw average daily trading volumes of approximately 1.3 million shares,
with an average daily turnover of Euro 27 million.
PRYSMIAN: KEY DATA
2020 2019 2018 2017 2016 2015 2014 2013 2012 2011
Price at 31 December (Euro) 29.08 21.49 16.87 27.19 24.40 20.26 15.15 18.71 15.01 9.60
Change in year 35.3% 27.4% -38.0% 11.4% 20.4% 33.7% -19.0% 24.7% 56.4% -24.7%
Average price (Euro) 21.81 18.55 22.17 26.31 20.93 19.10 16.38 16.68 13.00 12.90
Maximum price (Euro) 29.08 22.06 28.54 30.00 24.42 22.23 19.54 19.30 15.43 15.95
Minimum price (Euro) 13.96 14.93 14.97 23.34 16.45 14.43 12.78 14.03 9.77 9.25
Capitalisation at year end (millions 7,798 5,762 4,523 5,913 5,288 4,319 3,283 4,015 3,220 2,057
of Euro)
Average capitalisation in year 5,849 4,975 5,361 5,701 4,536 4,140 3,521 3,578 2,787 2,701
(millions of Euro)
Ave no. of shares traded (millions) 1.3 1.7 1.3 1.0 1.0 1.4 1.4 1.2 1.5 2.2
Average amount traded (millions 27 31 28 26 20 27 23 20 20 28

of Euro)
No. of shares at 31 December 268,144,246 268,144,246 268,144,246 217,482,754 216,720,922 216,720,922 216,712,397 214,591,710 214,508,781 214,393,481
Source: processing of data from Nasdaq Inc.
Prysmian Group
INVESTOR RELATIONS
Transparency in communication, growth in market confidence in the company and promotion of a long-
term investment approach to its stock.
Creating value for shareholders, and other stakeholders, is a key priority for Prysmian, whose policy
of strategic and financial communication is based on the highest standards of accuracy, clarity and
transparency. Its conduct and procedures are designed to provide the market with credible information,
with the goal of boosting market confidence in the group by seeking to encourage a long-term
investment approach, avoiding unequal access to information and ensuring effective compliance with
the principle that all existing and potential investors have the right to receive the same information so
as to make informed investment decisions.
On occasion of the publication of its quarterly results, Prysmian organises conference calls with
institutional investors and financial analysts and also invites industry press representatives to take
part. In addition, it promptly informs existing and potential shareholders of any action or decision that
could have a material impact on their investment. Intense contact with the financial market during
2020 on more than 500 occasions involved conference calls and one-to-one or group meetings, mostly
conducted virtually due to the Covid-19 pandemic. The company also participated in numerous industry
conferences organised by leading international brokers (virtual meetings since March), as well as
thematic roadshows (e.g. focused on Energy Transition, Telecom Developments, Innovation).
In addition, the mounting attention of ESG investors focused on environmental, social and governance
issues was further confirmed by their growing participation in specially organised meetings and
conferences.
Coverage of the Prysmian stock remained very high and geographically diversified. There are 20
independent analysts who regularly cover the Prysmian stock: AlphaValue, Banca Akros, Banca
Profilo, Bestinver, Barclays Capital, BofA Merrill Lynch, Citi, Credit Suisse, Equita, Exane BNP Paribas,
Goldman Sachs, Hammer Partners, HSBC, Intermonte, Intesa Sanpaolo, JP Morgan, Kepler Cheuvreux,
Mediobanca, Morgan Stanley and Société Generale.
The Investor Relations office has also maintained continuous relations with institutional investors
through the group website www.prysmiangroup.com, which contains recordings of conference calls
and presentations to the financial community, corporate documents, press releases and all other
information concerning the Group, in both English and Italian. The Investor Relations section also
includes the financial calendar, documents relating to shareholders’ meetings, the Code of Ethics, the
contact details of analysts who cover the stock as well as specific sections about Corporate Governance,
Risk Factors and Share Performance.
Investor Relations contact details:
Investor Relations Office Maria Cristina Bifulco - IR Director
+39 02 6449 1 +39 02 6449 51400
investor.relations@prysmiangroup.com mariacristina.bifulco@prysmiangroup.com
Annual Report 2020

Business environment
MACROECONOMIC ENVIRONMENT
The year 2020 saw an unprecedented deterioration of the global macroeconomic scenario following
spread of the Covid-19 pandemic, including the most severe recession since the Great Depression
of 1929. National economic recovery plans against this critical situation are being drawn up by every
country, such as the Next Generation EU in Europe, or the USD 1.9 trillion plan promised by the new Biden
administration in the US.
The macroeconomic scenario worsened in 2020 as the Covid-19 pandemic spread around the globe.
The health emergency and the related containment measures have generated a global recession,
unprecedented in its magnitude and scale, recovery from which still remains very uncertain. The
International Monetary Fund, one of the most important world financial institutions, has slashed its
economic growth estimates for 2020. According to its latest forecasts in January 2021*, it expects the
global economy to contract by 3.5% in 2020, in contrast with a pre-pandemic 3.3% growth forecast a
year ago. However, much uncertainty surrounds these forecasts, due to a lack of visibility for a number
of factors, such as the protraction of the pandemic, the intensity and effectiveness of containment
measures, and progress on the healthcare front, especially with regard to the speed of the vaccination
campaign currently underway in many countries.
National economic recovery plans against this critical situation are being drawn up by every country,
including the Next Generation EU in Europe for a total of Euro 750 billion, of which Euro 390 billion in
grants and Euro 360 billion in loans. In the United States, too, a USD 1.9 trillion relief package is being
agreed to revive the economy, as promised by the new Biden administration.
Regarding country trends, emerging markets have generally performed less negatively than advanced
countries. Among high-income economies, the pandemic is estimated to have had less impact on the
United States than on Europe, despite the high number of Covid-19 infections. Accordingly, IMF estimates
put the rate of economic contraction in 2020 at around -7.2 % for the Eurozone versus -3.4% in the
United States. Within Europe, the pandemic has had different economic impacts in different countries,
depending on the extent of viral spread, the stringency of public health measures taken to contain it,
the sectoral composition of national economies and the intensity of national policy responses. South
European countries have suffered the most, with Spain expected to record negative growth in 2020 of
-11.1%, followed by Italy with -9.2% and France with -9.0%. The situation in North Europe however has
been slightly better, with Germany expected to contract by -5.4% in 2020.
In Great Britain too, the pandemic has had a major impact on the economy, further exacerbated by
Brexit-related uncertainty, with the agreement to ease this uncertainty only reached at the end of the
year. Accordingly, the IMF expects Britain’s economy to shrink by -10.0% in 2020.
Thanks to growth in industry, China will be the only one of the large economies to end the year in positive
territory (+2.3%), albeit at a much lower rate than pre-Covid forecasts, which expected the economy to
grow by +6.1%. At the other end of the scale is India, still trying to keep the pandemic under control and
therefore experiencing one of the worst recessions, with the economy expected to shrink by -8.0%. As
for the Brazilian economy, the IMF is estimating a contraction of -4.5%.
Prysmian Group
CHANGE IN GDP 2019-2020 BY COUNTRY
8.0%
6.0%
4.0%
2.0%
0.0%
-2.0%
-4.0%
-6.0%
-8.0%
-10.0%
-12.0%
World USA Euro Germany France Italy Spain Japan United Russia China India Brazil
area Kingdom
2019 2020
Source: IMF, World Economic Outlook Update - January 2021.
CABLE INDUSTRY TRENDS

Like the rest of the economy, the cable market was also extremely weak in 2020 due to the Covid-19
pandemic.
The global cable market recorded a major contraction in 2020, mainly due to the Covid-19 pandemic,
whose adverse impacts initially emerged in China and then spread to the rest of the world essentially
from March onwards. At the same time, the market has already started to recover, thanks in part to the
expansionary measures adopted in the major economic areas and the gradual easing of the restrictions
imposed by the pandemic.
Geographically, China is expected to be the only major country whose cable market – in line with GDP
trends – will show positive, albeit marginal, growth in 2020. This is in sharp contrast with the contraction
experienced by the rest of the global cable market. The recovery in China has been partly driven by the
manufacturing sector, supported by domestic demand and government stimulus. The resilience of the
construction sector has also contributed to positive growth in cable demand in 2020.
In Europe, the cable market has shrunk significantly as a result of the Covid-19 pandemic, with the trend
varying from country to country: a steeper contraction in southern countries such as France, Italy and
Spain, has been partly offset by better performance in Germany and the Nordics. There was a similar
trend in North America, with a steep plunge in Mexico, particularly reflecting a construction sector
downturn, and a better, though still negative performance in the United States, thanks in part to the
renewables sector.
It was also a difficult year for the optical cables market, with demand dropping sharply in all major
regions except the US, where optical fibre cable consumption remained steady year-on-year. In Europe,
among the larger markets, only the UK and Germany reported marginal growth in demand for optical
cables in 2020, thanks to vibrant FTTH programs driven by both private and public investment. The
biggest drops were recorded in South European countries, where the major operators implemented an
Annual Report 2020

aggressive destocking policy that produced a significant reduction in their optical cable procurement
estimates, in turn leading to a steep market contraction.
Prysmian Group’s various market segments saw a mixed performance in 2020. Market demand for
Submarine Power cables continued to show signs of recovery during the year: several bids are now
at an advanced stage of the tendering process, and despite being later than originally forecast, are
expected to be awarded in the next few months. The market is expected to grow over the medium
term, especially the Offshore Wind segment, fostered by the continuous reduction in electricity
generation costs.
In the High Voltage underground business, the HVAC market was largely stable in Europe, with mixed
trends between the different countries, while reporting growth in North America but persistently soft
demand in Southeast Asia, which having already turned down in 2019 was exacerbated by the impact of
Covid-19.
In the HVDC market, typically for interconnectors, tendering activities for major underground power
lines in Germany (Suedlink, Suedostlink and A-Nord) reached their conclusion, with Prysmian Group
being awarded a substantial share of all the projects concerned, with a total value of over Euro 1.8
billion.
During 2020, the Trade & Installers business saw demand turn down in most of the European countries
served, particularly in South Europe and the UK due not only to difficulties associated with the Covid-19
pandemic but also with Brexit. The decline in business in the regions of ASEAN, MEAT and LATAM reflected
not only the complications of the Covid-19 pandemic but also steep currency devaluation in Central and
South American countries, making an already troubled market more uncertain. Even in North America
the Trade & Installers market reported a year-on-year downturn, mainly due to the Covid-19 pandemic.
As for Power Distribution, markets in North America continued to be buoyant, also thanks to Onshore
Wind demand, which benefited from the Production Tax Credit (PTC), a tax incentive based on electricity
generated and expected to be extended until mid-2021 to encourage completion of existing projects
delayed because of the pandemic.
Markets for Industrial cables, while growing as a whole, displayed inconsistencies within the various
business lines and between the different geographical areas. Some market segments grew despite
the pandemic, thanks to a strong existing order backlog and the resilience of customer investment
programs. Some applications for the OEM sector (Railway, Nuclear, Marine, Water and Electromedical)
performed well, while the Crane and Defence segments remained stable. The Mining business posted a
major slowdown as a result of lower MRO demand in the United States and the phasing of some projects
in Eastern Europe and South America. The Renewables business enjoyed an uptick in demand for both
Solar and Wind products, which benefited from favourable phasing of some projects, completed despite
the pandemic. However, both segments saw an increase in competitive pressure, affecting prices and
partially eroding the healthy trend in volumes.
Oil & Gas demand was significantly inhibited by the Covid-19 pandemic and lower oil prices. The Elevator
market however showed a certain stability thanks to the good performance of the North American
market.
After a positive first quarter, the Automotive segment recorded a drastic first-half drop in volumes
originating in the second quarter, mainly affecting the European, North American and APAC markets,
while showing good signs of recovery in the third quarter and especially the fourth quarter with the
reopening of major car manufacturers, whose production schedules were revised for the impact of
Covid-19. The largest reductions were seen in the mid- to low-end segments.
The Network Components market saw demand contract in 2020 in both the MV and HV/EHV segments
as a result of the Covid-19 pandemic in South Europe, LATAM and APAC, while remaining stable in the rest
of the world.
Prysmian Group
As for the Telecom segment, the downturn in the global optical fibre cables market, already observed
in the last part of 2019, was confirmed over the year. In Europe, overall demand was down, with uneven
behaviour in the various national markets. The markedly negative contribution of the South Europe
region was only partially mitigated by some virtuous behaviour in North Europe. In North America,
however, optical fibre cable consumption was stable year-on-year. In South America, a region when
fibre penetration rates are still low, the optical cables market reported a slight decline attributable to a
slowing of investment by major telecom operators.
The copper cable market is experiencing a slowdown linked to product maturity. The drop in demand,
already evident during 2019, was confirmed but without showing any acceleration.
The MMS cable market reported a downturn, most pronounced in South Europe and North America due
to Covid-related difficulties. The decline in Latin American business reflected not only the complications
of the Covid-19 pandemic but also steep currency devaluation in Central and South American countries,
making an already troubled market more uncertain.
Annual Report 2020

Significant events during the year

Prysmian Group’s leadership team invests in the Company as a sign of its commitment and confidence in
recovery from the pandemic-related crisis and in the Company’s long-term growth prospects
On 3 April 2020, Prysmian Group’s leadership team, consisting of CEO Valerio Battista and his 20 worldwide
direct reports (the “Group Leadership Team”), informed the Group that it had accepted the CEO’s proposal
to invest in Prysmian S.p.A. shares 50% of the net incentive earned by each based on the positive
performance in financial year 2019, whose results were in line with company targets. On 1 June 2020,
Prysmian Group announced the finalisation of agreements between the Group Leadership Team and the
financial intermediary engaged to execute the above share investment scheme. Under the terms of these
agreements, the Group Leadership Team engaged a financial intermediary to purchase the Company’s
shares on the market for a total of approximately Euro 1,500,000, corresponding to approximately 50% of
the net incentive earned by each manager in respect of financial year 2019 (the “2019 MBO”).
The financial intermediary made the share purchases between the first and fifth business day after the
date on which the funds for the purchases were made available to it, namely 1 June 2020. The instructions
given by each of the Group Leadership Team’s managers to the financial intermediary included the
authorisation to lock up the shares purchased until the end of 2022.
Long-term incentive plan
The Prysmian S.p.A. Shareholders’ Meeting of 28 April 2020 approved a long-term incentive plan,
designed to motivate management to create sustainable value over time, including by deferring part
of their annual bonus in shares. The plan is also tied to long-term ESG objectives (Environment Social
Governance). The Shareholders’ Meeting authorised a bonus capital increase, as proposed by the Board
of Directors, to be reserved for Prysmian Group employees in execution of the above plan. This capital
increase can reach a maximum nominal amount of Euro 1,100,000 through transfer, pursuant to art.
2349 of the Italian Civil Code, of a corresponding amount from profits or earnings reserves, with the
issue of no more than 11,000,000 ordinary shares of nominal value Euro 0.10 each. At the same time,
the shareholders’ resolution of 12 April 2018 relating to a similar capital increase was revoked, amending
article 6 of the By-laws. Recognition of the effects of the long-term incentive plan in the year ended 31
December 2020 has resulted in recording personnel costs of Euro 29 million in a specific equity reserve.
Termination of the contract relating to Carlisle Companies Incorporated’s offer to acquire

the business of Draka Fileca SAS
On 22 October 2019, the Group had announced the receipt of an offer of Euro 73 million from Carlisle
Companies Incorporated to acquire the business of Draka Fileca SAS (directly or through one of the Carlisle
subsidiaries). On 19 June 2020, Prysmian Group announced that the contract relating to this transaction
had been terminated, as the required regulatory approvals had not been obtained by the agreed deadline.
Prysmian Group announces the acquisition of EHC Global, a leading manufacturer of strategic
components and provider of integrated solutions for the vertical transportation industry
Prysmian Group announced on 22 July 2020 that it had signed an agreement to acquire 100% of EHC
Global in a transaction valued at CAD 130 million. The acquisition was completed on 8 January 2021,
more details of which can be found in the note on “Events after the reporting period”.
Prysmian Group
New industrial projects and initiatives
Contract for a broadband TLC cable project in Mexico
On 15 January 2020, the Group announced it had won a contract worth USD 38 million from Comision
Federal de Electricitad (CFE), a government-owned company, for a cable project in Mexico called
“Proyecto de Conectividad Fibra Óptica Red Eléctrica Inteligente REI”. This is the largest ever project
in terms of quantity of TLC cables commissioned by a Mexican government and will connect remote
regions of the country with high-speed broadband. Under the terms of the contract, Prysmian will
oversee the engineering, supply and installation of at least 9,800 km of optical ground wires (OPGW)
and 5,100 km of all-dielectric self-supporting (ADSS) cables. The OPGW will be produced at the Group’s
plant in Vilanova i la Geltrù, Spain, while the ADSS cables will be manufactured in Durango, Mexico, once
again demonstrating the Group’s ability to tap into its global organisation and the strong teamwork
between its LATAM, HQ and OPGW operations.
Contract for Libra Mero project

On 23 January 2020, the Group announced it had won a contract from Libra, a consortium of leading
international oil & gas operators, to supply Steel Tube Umbilicals for installation in the Mero offshore
oilfield. The contract refers to Mero 1, an ultra-deep-water drilling field, which will consist of 17 wells
and one FPSO vessel, situated approximately 180 km off Rio de Janeiro in the pre-salt Santos basin at
a depth of some 2,000 metres below sea level. Oil production is due to commence in 2021. The Mero 1
project is a milestone in the technological development of the Oil & Gas industry in Brazil, being the first
in the region to use Steel Tube Umbilicals.
Contract for the construction of an offshore wind farm in France

On 4 March 2020, the Group announced it had won a contract worth approximately Euro 150 million
from Réseau de Transport d’Électricité (RTE) for the construction of two submarine and onshore cable
systems to connect the offshore wind farm located between the islands of Yeu and Noirmoutier to the
French mainland power grid. The submarine cables will be manufactured at Prysmian Group’s centres
of excellence in Pikkala (Finland) and Arco Felice (Italy), while the onshore cables will be produced in
Gron (France). Installation will be carried out by the Cable Enterprise, one of the Group’s state-of-the-art
cable-laying vessels. Delivery and commissioning are scheduled for 2023.
Contract for two new projects with Terna for development of the Italian power transmission grid
On 10 March 2020, following a public tender, the Group signed two major new cable solution agreements
with Terna, through its subsidiary Terna Rete Italia S.p.A.. The first agreement, worth Euro 40 million
with an option for a further Euro 10 million, refers to an HVAC cable system covering the Italian section of
the Italy-Austria cross-border interconnection between the Glorenza and the Nauders substations, due
to start operating by 2022. The second agreement, worth Euro 40 million with an option for a further
Euro 40 million and relating to the on-site supply of 220 kV HVAC cable systems, is a framework contract,
valid until 2022, intended to serve the needs of power transmission systems in Southern Italy. Both
contracts include design and installation engineering, the supply of cables - manufactured at the plant
in Gron, France, the Group’s excellence centre for high and extra-high voltage cables - and accessories,
as well as civil engineering works and other possible optional supplies.
SuedOstLink project for the first of the three German Corridors

On 5 May 2020, Prysmian Group announced that TenneT TSO GmbH, operator of the Dutch-German
grid, had awarded it a contract for the SuedOstLink project in Germany, one of the world’s longest HVDC
Annual Report 2020

underground transmission lines. The total value awarded to the Group for this contract, according to the
options, is approximately Euro 500 million. Prysmian will be responsible for the design, manufacture,
supply, installation, splicing, testing and commissioning of a 2GW underground transmission cable
running through the TenneT-operated section of this first German Corridor. The project is expected to
be completed in early 2026.
A-Nord project for the second of the three German Corridors

On 11 May 2020, Prysmian Group announced that Amprion GmbH, a German grid operator, had awarded
it a contract for the A-Nord underground cable, part of the German “Corridor A” 2GW power transmission
project. Under this contract, worth over Euro 500 million for the Group, Prysmian will be responsible
for the design, manufacture, supply, installation, jointing, testing and commissioning of a 1GW
underground transmission cable covering the entire northern route of the German Corridors. Work on
the HVDC system is scheduled to begin by 2023.
Contract with Vattenfall for the first zero-subsidy offshore wind farm
On 20 May 2020, Prysmian Group finalised a contract for a project awarded by Vattenfall, a
leading European energy company, to supply the submarine inter-array cable systems for the
Hollandse Kust Zuid III and IV offshore wind farm in The Netherlands. The cables, which will be
manufactured at the Prysmian centre of excellence in Nordenham (Germany), are due to be delivered
in 2022.
Crete-Attica submarine interconnection project in Greece

On 26 May 2020, Prysmian Group was awarded a contract worth approximately Euro 270 million
by Ariadne Interconnection, a wholly-owned subsidiary of IPTO, Greece’s transmission system
operator, for submarine interconnections between the island of Crete and the Greek mainland
(Attica region). The first lot, worth Euro 250 million, involves the design, supply, installation and
commissioning of an end-to-end HVDC cable along a 335 km route between the island of Crete and
the Attica region. The second lot, worth Euro 20 million, involves the design, supply, installation
and commissioning of two submarine telecommunication links for a total length of 670 km between
the island of Crete and the Attica region. Prysmian will install the submarine cables using one of its
own cable-lay vessels. Delivery and commissioning for both projects are scheduled over the period
2020-2023.
Contract for the Saint-Brieuc wind farm in France

On 27 May 2020, Ailes Marines, in charge of the development, construction, installation and operation
of an offshore wind farm in the bay of Saint-Brieuc, awarded Prysmian Group a contract worth about
Euro 80 million to supply the submarine inter-array cable systems for the Saint-Brieuc offshore wind
farm in France. Delivery and commissioning are scheduled by the end of 2022.
SuedLink project for the third and longest of the three German Corridors
On 29 June 2020, Prysmian Group was awarded contracts for the SuedLink Corridor in Germany, the
longest ever underground cable project, by the German transmission system operators TransnetBW
GmbH and TenneT. Under this project, worth a total of approximately Euro 800 million for the Group,
Prysmian will design, manufacture, supply, lay, joint, test and commission a 2GW underground cable
system linking the north of Germany to its regions in the south. The project is due to be completed in
2026.
Prysmian Group
Prysmian launches the first fibre-optic network with 90% recycled plastic
On 15 September 2020, the Group announced that it will be working with Dutch operator KPN on a
pilot project to install a fibre-optic network containing 90% recycled plastic. KPN will be the first
telecommunications firm in Europe to use the new Prysmian cable concept to install connections for its
customers. Pilot projects will take place in Buitenpost (Friesland) and Nijmegen, both in the Netherlands.
Further benefits are expected to emerge during installation, such as a reduced need for excavation at
network concentration sites, leading to less soil for removal and disposal. In addition, approximately
50% fewer raw materials (plastic or PE) are required for the production of the new cables and tubes than
for traditional cabling. On top of these direct savings, the new concept offers an indirect environmental
benefit since over 90% of the tubes are manufactured using high-quality recycled PE. These savings
translate into an immediate reduction of the CO2 emissions and ultimately of end-of-life waste. Lastly,
Prysmian expects to achieve a further reduction in CO2 emissions through savings in logistics, storage,
and packaging materials, which will be evaluated in a real-life test for KPN.
Preferred bidder agreement signed for Sofia offshore wind farm project worth over Euro 200
million
On 17 November 2020, the Group announced it had signed a preferred bidder agreement worth
over Euro 200 million with RWE Renewables Sofia Offshore Wind Farm, the world’s second largest
offshore wind farm developer, for the construction of a turnkey submarine and land high voltage
cable system to connect the Sofia offshore wind farm to the mainland. The 1.4 GW Sofia offshore
wind farm is the largest offshore wind project currently under development, and, once fully
operational in 2025, it will be able to generate enough power to supply over 1.2 million UK homes
with renewable electricity.
World-first installation of a 180µm optical fibre cable in Germany

On 17 December 2020, the Group announced it had completed its first project using its new Sirocco
Extreme optical fibre cable for Stadtwerke Landau a.d. Isar, a utility provider. This world-first installation
of a 180µm optical fibre cable will enable a large number of households and businesses in Landau to
benefit from high-performance FTTx and 5G networks. Sirocco Extreme is the first 180µm optical fibre
cable available on the market. It enables faster, cheaper and more sustainable installations and is fully
compatible for splicing with any standard fibre. Home office, online schooling and increased levels of
video streaming during the Covid-19 pandemic have led to a significant rise in internet data traffic and
hence greater demand for secure, high-performance optical fibre networks that can reduce the risk of
future data bottlenecks.
Other significant events
Ravin Cables Limited
In January 2010, Prysmian Group acquired a 51% interest in the Indian company Ravin Cables Limited (the
“Company”), with the remaining 49% held by other shareholders directly or indirectly associated with
the Karia family (the “Local Shareholders”). Under the agreements signed with the Local Shareholders,
after a limited transition period, management of the Company would be transferred to a Chief Executive
Officer appointed by Prysmian. However, this failed to occur and, in breach of the agreements, the
Company’s management remained in the hands of the Local Shareholders and their representatives.
Consequently, having now lost control, Prysmian Group ceased to consolidate the Company and its
subsidiary Power Plus Cable Co. LLC. with effect from 1 April 2012. In February 2012, Prysmian was thus
Annual Report 2020

forced to initiate arbitration proceedings before the London Court of International Arbitration (LCIA),
requesting that the Local Shareholders be declared in breach of contract and ordered to sell the shares
representing 49% of the Company’s share capital to Prysmian. In a ruling handed down in April 2017, the
LCIA upheld Prysmian’s claims and ordered the Local Shareholders to sell the shares representing 49%
of the Company’s share capital to Prysmian. However, the Local Shareholders did not voluntarily enforce
the arbitration award and so Prysmian had to initiate proceedings in the Indian courts in order to have
the arbitration award recognised in India. Having gone through two levels of the court system, these
proceedings were finally concluded on 13 February 2020 with the pronouncement of a ruling by the
Indian Supreme Court under which the latter definitively declared the arbitration award enforceable
in India. In view of the continuing failure of the Local Shareholders to comply voluntarily, Prysmian has
requested the Mumbai court to enforce the arbitration award so as to purchase the shares representing
49% of the Company’s share capital as soon as possible. This case is currently still pending, slowed down
by the ongoing Covid-19 emergency in India, and so control of the company is considered to have not yet
been acquired.
Covid-19 “People First”, Business protection, Innovation/Digitalisation

The Group’s significant presence in China enabled it to understand the emergence of the Covid
Pandemic at an early stage. “People first”, i.e. putting people’s health and safety first, technological
innovation and lean manufacturing, and business protection are the three mainstays of the Group’s
strategy in response to the Pandemic. “People First’ has translated into increased investment in health
and safety (+29% to Euro 17 million), the mass procurement of hygiene supplies and equipment and
performance of tests and analyses to detect infections, the redefinition of procedures for staying safe
at work and the extensive use of remote working, the digitalisation of the Academy’s training activities
and actions for the benefit of communities affected by the virus (from the wiring of the Wuhan
hospital to citizenship initiatives in other parts of the world). In a context in which our very social
and economic priorities are being redefined, the Group has confirmed its ambition to be an enabler
of energy transition and digitalisation. The Group has deepened its commitment to technological
innovation: from its flagship 525 kV P-Laser cable and innovations in fibres and optical cables, like
Sirocco, its record-breaking cable for fibre density, to its submarine cable for record depths of up to
3,000 metres. Equally significant is the Fast Forward Project to digitalise manufacturing processes.
Putting health and safety first has also enabled the Group to ensure continuity of its supply chain
and business. Uptime at its production facilities has never dropped below 70-80%, keeping the level
of customer service practically intact, with on-time delivery performance at over 94%. The Group
has also swiftly deployed a robust cost containment program as well as measures to protect cash
generation.
Update on the 2011 Antitrust proceedings in Brazil

On 15 April 2020, Prysmian Group announced that the Tribunal of the Brazilian antitrust authority had
issued the operative part of its decision in relation to proceedings initiated in 2011 in which it has ruled
that Prysmian Group participated in anti-competitive practices in the Brazilian market for high voltage
underground and submarine cables. The Tribunal has held Prysmian Group liable for the period from
February 2001 to March 2004 and ordered it to pay a fine of BRL 10.2 million (approximately Euro 1.8
million), in line with the amount contained in the provisions recognised by the Group for this specific
matter. Prysmian Group has filed an appeal against the CADE ruling.
Approval of financial statements at 31 December 2019 and dividend distribution

On 28 April 2020, the shareholders of Prysmian S.p.A. approved the financial statements for 2019 and
the distribution of a gross dividend of Euro 0.25 per share, for a total of some Euro 66 million. The
Prysmian Group
dividend was paid out from 20 May 2020, with record date 19 May 2020 and ex-dividend date 18 May
2020.
Ruling by the EU Court of Justice on the appeals filed against the European Commission
decision relating to the Antitrust investigation into high voltage underground and submarine
power cables markets
On 24 September 2020, the Group announced that the Court of Justice of the European Union had
issued its ruling on the appeal filed by Prysmian S.p.A. and Prysmian Cavi e Sistemi S.r.l. against
the General Court’s ruling dated 12 July 2018 which, as already communicated to the market on
the same date, upheld the European Commission decision of 2 April 2014 concerning the Antitrust
investigation into high voltage underground and submarine power cables markets. Under this ruling,
the Court dismissed the appeal filed by Group companies and, by so doing it upheld the liability
and fine envisaged under the European Commission’s original decision. It will be recalled that the
European Commission had held Prysmian Cavi e Sistemi S.r.l. jointly liable with Pirelli & C. S.p.A. for
the alleged infringement in the period 18 February 1999 - 28 July 2005, ordering them to pay a fine of
Euro 67,310,000, and it had held Prysmian Cavi e Sistemi S.r.l. jointly liable with Prysmian S.p.A. and
The Goldman Sachs Group Inc. for the alleged infringement in the period 29 July 2005 - 28 January
2009, ordering them to pay a fine of Euro 37,303,000. Further to the EU Court of Justice’s ruling, the
European Commission requested the Prysmian Group to pay half of the fine it was jointly and severally
liable for with Pirelli & C. S.p.A. and The Goldman Sachs Group Inc., amounting to approximately Euro
52 million plus interest. Using the provisions already set aside in previous years, the Group has gone
ahead and made this payment.
The Group also made other payments in 2020 to settle follow-on litigation initiated by third parties
to obtain compensation for damages allegedly suffered as a result of Prysmian’s involvement in the
anti-competitive practices fined by the European Commission, as well as for legal expenses. The total
disbursements for all the above, and therefore including payment of half of the fine imposed by the
European Commission, came to approximately Euro 112 million.
Lastly, it should be noted that the Group has adequate provisions in place in order to be able to meet
claims for damages arising from this decision.
Race to zero net CO2 emissions begins

On 25 November 2020, the Group announced the launch of a new project aimed at accelerating its race to
zero net CO2 emissions. The announcement was made on the occasion of Prysmian Group’s “Sustainability
Day”, a digital stakeholder engagement event during which the Group’s top management shared
Prysmian’s vision, priorities and plans for its sustainability roadmap. The project aims to set science-
based carbon reduction targets for the Group and will consider both Scope 1&2 (own organisation) and
Scope 3 (value chain) GHG emissions. Carbon reduction targets are considered “Science-Based Targets’’
if they are in line with what climate science says is necessary to achieve the Paris Agreement goals: to
limit global warming to below 2°C above pre-industrial levels and pursue efforts to limit warming to
1.5°C. Prysmian Group is supported in the project by the Carbon Trust, the leading organisation helping
companies and governments to realise ambitious plans for a sustainable, low carbon future. By 2022
Prysmian plans to invest around Euro 450 million to further improve the sustainability of its organisation
and supply chain and accelerate the development of cutting-edge cable technologies, assets and
services. Energy consumption reduction, the circular economy, waste recycling, and promoting a
health & safety culture are key in Prysmian’s efforts to improve the sustainability of its supply chain.
The transition to renewable energy is closely linked to the ability to transmit and dispatch energy
from one place to another, from those locations where renewable energy is produced (offshore wind
farms) to those where it is consumed (urban centres). Prysmian Group is committed to supporting the
development of greener and smarter power grids, by making available innovative cable technologies
Annual Report 2020

capable of covering longer distances and suitable for installation at greater depths, ensuring higher
performance, reliability and sustainability.
Legal action for patent infringements in the UK brought against Emtelle UK Limited
On 27 November 2020, Prysmian Group announced that it had commenced legal action against Emtelle
UK Limited for infringement of some of its patents in the UK. Prysmian claims that Emtelle’s FibreFlow
products infringe the UK designations of Prysmian’s European Patents EP(UK) 1,420,279 B1 and EP (UK)
1,668,392B1 for optical fibre cables.
Plan to close the Manlleu and Montcada i Reixac production facilities in Spain – Follow up
With reference to the restructuring of industrial activities in Spain that involved the Manlleu and
Montcada i Reixac sites in Catalonia last year, necessary for organisational and manufacturing reasons
in order to recalibrate production capacity to market demand, the Group has maintained a constant
dialogue and active collaboration with trade union representatives at these sites for the effective
implementation of the plan envisaged in the November 2019 agreement.
The industrial plan aims to concentrate Spanish energy cable production at the Group’s Catalan sites in
Santa Perpètua de Mogoda and Vilanova i la Geltrú, as well as at General Cable’s centre of excellence for
low-voltage copper cables in Abrera, thereby maintaining the business’s competitiveness in Spain. The
total number of workers involved is 487 (of whom 334 at Manlleu and 153 at Montcada i Reixac).
Among the measures envisaged by the November 2019 agreement, unanimously approved by workers’
representatives, was the gradual cessation of production activity at the sites concerned, which took
place in April 2020 for the Montcada plant and in November 2020 for the Manlleu plant, although certain
industrial activities will continue at the latter site during 2021.
Prysmian Group
Group performance and results
FINANCIAL PERFORMANCE
(Euro/million) 2020 2019 % change 2018 (*)

Sales 10,016 11,519 -13.0% 10,104
Adjusted EBITDA before share of net profit/(loss) 822 983 -16.4% 634
of equity-accounted companies
% of sales 8.2% 8.5% 6.3%
Adjusted EBITDA 840 1,007 -16.6% 693
% of sales 8.4% 8.7% 6.9%
EBITDA 781 907 -13.9% 501
% of sales 7.8% 7.9% 5.0%
Fair value change in metal derivatives (4) 15 (48)
Fair value stock options (31) 1 (6)
Amortisation, depreciation, impairment and impairment reversal (393) (354) (232)
Operating income 353 569 -38.0% 215
% of sales 3.5% 4.9% 2.1%
Net finance income/(costs) (101) (125) (112)
Profit/(loss) before taxes 252 444 -43.2% 103
% of sales 2.5% 3.9% 1.0%
Taxes (78) (148) (45)
Net profit/(loss) 174 296 -41.2% 58
% of sales 1.7% 2.6% 0.6%
Attributable to: -
Owners of the parent 178 292 58
Non-controlling interests (4) 4 -
Reconciliation of Operating Income/EBITDA to Adjusted

Operating Income/Adjusted EBITDA
Operating income (A) 353 569 -38.0% 215
EBITDA (B) 781 907 -13.9% 501
Adjustments: -
Company reorganisation 32 85 66
Non-recurring expenses/(income) 9 (32) 94
Other non-operating expenses/(income) 18 47 32
Total adjustments (C) 59 100 192
Fair value change in metal derivatives (D) 4 (15) 48
Fair value stock options (E) 31 (1) 6
Assets impairment and impairment reversal (F) 68 36 5
Adjusted operating income (A + C + D + E + F) 515 689 -25.3% 466
Adjusted EBITDA (B + C) 840 1,007 -16.6% 693
(*) The results of General Cable have been consolidated with effect from 1 June 2018.
The Group’s sales in 2020 came to Euro 10,016 million, compared with Euro 11,519 million in 2019, posting
a negative change of Euro 1,503 million (-13.0%).
Annual Report 2020

The main factors behind this change were:

y negative organic sales growth, accounting for a decrease of Euro 1,185 million (-10.3%);
y unfavourable exchange rate movements, leading to a decrease of Euro 324 million (-2.8%);
y fluctuation in the price of metals (copper, aluminium and lead), generating a sales price increase of
Euro 6 million (+0.1%).
Organic sales growth by the three operating segments was as follows:

y Projects -20.6%;
y Energy -7.1%;
y Telecom -14.1%.
Overall organic sales growth for the year was -10.3%. Excluding the Projects segment, organic sales
growth would have been -8.3% (-4.8% in the fourth quarter), the main factors behind which were as
follows:
y a steep decline in the Telecom segment of -14.1% year-on-year and -3.8% in the final quarter, despite
a second-half improvement in North America driven by the optical cables business;
y a slowdown in the Energy & Infrastructure business, with negative organic growth of -7.5% year-on-
year and -4.0% in the final quarter, adversely affected by the impact of Covid-19 especially in the
second quarter although showing a second-half improvement;
y good performance by Onshore Wind (forming part of the E&I business) in the United States and by
Renewables.
The Group’s Adjusted EBITDA (before net expenses for company reorganisation, net non-recurring
expenses and other net non-operating expenses) came to Euro 840 million in 2020, down Euro 167
million (-16.6%) on the corresponding 2019 figure of Euro 1,007 million. The main factors affecting
performance are described below:
y Energy segment, in which the Power Distribution business (especially Onshore Wind in North America)
performed well with an improvement in earnings, as for Overhead lines;
y Projects segment, in which the constraints arising from the Covid-19 pandemic led to inefficiencies
in production and installation for the High Voltage underground business in the first half of the year,
although improving in the second half. In addition, the segment suffered from an unfavourable mix
and incomplete saturation of production capacity in the Submarine business;
y Telecom segment, in which margins stabilised despite lower volumes and strong price pressure, only
partially absorbed by cost efficiencies. Among other things, there was a final-quarter recovery in the
optical cables business.
On the whole, despite also being affected by adverse exchange rate movements, the Group showed
good resilience to the current macroeconomic context, thanks to the adoption of swift and targeted
actions to contain both fixed and variable costs and improve the business mix, allowing it to keep
margins stable.
In addition, the Group completed the process of integrating General Cable ahead of time, achieving an
annualised addition of around Euro 200 million to EBITDA and annualised cost efficiencies of around Euro
175 million, having already incurred a total of some Euro 200 million in restructuring costs. These results
were achieved thanks to the Group’s improved geographical diversification, greater complementarity
between product portfolios and cross-selling activities.
EBITDA is stated after net expenses for company reorganisation, net non-recurring expenses and other
net non-operating expenses, totalling Euro 59 million (Euro 100 million in 2019). These adjustments
mainly consist of reorganisation costs for Euro 32 million (Euro 85 million in 2019).
Prysmian Group
Amortisation, depreciation and impairment amounted to Euro 393 million in 2020, reporting a year-on-
year increase, primarily because of the impairment loss of Euro 66 million recognised against property,
plant and equipment in the Energy segment’s South Europe Region CGU, as discussed in the Explanatory
Notes.
The fair value change in metal derivatives was a negative Euro 4 million in 2020, compared with a positive
Euro 15 million in 2019.
After adopting hedge accounting for most of its metal derivatives, which was affected by price increases
for copper, aluminium and lead, the Group has recognised a positive pre-tax amount of Euro 68 million
in the cash flow hedge reserve.
A total of Euro 31 million in costs were recognised in 2020 to account for the effects of the long-term
incentive plan and employee share purchase scheme.
Reflecting the effects described above, the Group’s operating income came to Euro 353 million,
compared with Euro 569 million in the previous year, thus reporting a decline of Euro 216 million.
Net finance costs amounted to Euro 101 million in 2020, down on the prior year figure of Euro 125 million.
The decrease is mainly due to exchange rate trends and an interest saving after repayment in 2019 of
part of the loans previously taken out for the General Cable acquisition.
Taxes came to Euro 78 million, representing an effective tax rate of around 31% (33.3% in 2019).
Net profit for 2020 was Euro 174 million, of which Euro 178 million attributable to the Group, compared
with Euro 296 million in 2019, of which Euro 292 million attributable to the Group.
The Group has continued to reduce its net financial debt, which stood at Euro 1,986 million at 31 December
2020, down Euro 154 million from Euro 2,140 million at 31 December 2019. The reduction was achieved
thanks to Euro 375 million in cash flow provided in the past twelve months by operating activities after
net finance costs paid (excluding cash flows arising from acquisitions and/or disposals).
The 2020 reporting period saw the Group win a number of major contracts, including a 50% share of
the three “German Corridors” projects worth a total of some Euro 1,800 million, confirming Prysmian
Group’s primary role as an energy transition facilitator. The award of these contracts has allowed the
Group’s order backlog to reach a record level of around Euro 3,500 million.
The Group has also given priority to safeguarding the needs of its employees and customers, protecting
the business, and focusing increasingly on innovation and digitalisation.
With regard to safeguarding its employees, the Group has taken steps to enable continuous testing for
Covid-19 and to providing medical devices and masks for its employees. In addition, the Group has made
flu vaccines available to its employees and their families.
With regard to safeguarding the needs of its customers, the Group has focused on a customer-oriented
strategy that has enabled it to meet delivery times in more than 94% of cases.
With regard to protection of the business, as mentioned earlier, the Group has taken actions designed
to contain fixed and variable costs, to rigorously monitor the trend in net working capital and to apply
greater discipline in making investments. These latter actions have benefited cash generation, which
reached a level of Euro 375 million in 2020.
With regard to innovation and digitalisation, the Group has passed tests in two cutting-edge
technologies, namely P-Laser and XPLE, for 525KV HVDC cables, installed three submarine cables at
Annual Report 2020

depths of more than 900 metres (Crete-Peloponnese), installed the first ever 180µm fibre cable for
FTTx and 5G networks and continued to digitalise the production process.
The Group also believes in sustainability and aims to make Pikkala the Group’s first zero emission plant.
The Group also intends to invest Euro 450 million by 2022 to support sustainability, energy transition to
renewable sources and digitalisation.
During the year, the Group improved its position in the Dow Jones Sustainability index, ranking number
two in the sector, and has since been awarded an Ecovadis platinum rating
Prysmian Group
Review of Projects Operating Segment

Sales 1,438 1,844 -22.0% 1,635
Adjusted EBITDA before share of net profit/(loss) 186 228 -18.4% 89
of equity-accounted companies
% of sales 13.0% 12.3% 5.4%
Adjusted EBITDA 186 228 -18.2% 89
% of sales 13.0% 12.4% 5.4%
Adjustments (13) (23) (105)
EBITDA 173 205 -16.0% (16)
% of sales 12.1% 11.1% -0.9%
Amortisation and depreciation (64) (64) (54)
Adjusted operating income 122 164 -23.1% 35
% of sales 8.5% 8.9% 2.1%
The Projects Operating Segment incorporates the high-tech businesses of High Voltage underground,
Submarine Power, Submarine Telecom, and Offshore Specialties, whose focus is projects and their
execution, as well as product customisation.
The Group engineers, produces and installs high and extra high voltage cables for electricity
transmission both from power plants and within transmission and primary distribution grids. These
highly specialised, tech-driven products include cables insulated with oil or fluid-impregnated paper
for voltages up to 1100 kV and extruded polymer insulated cables for voltages up to 600 kV. These
are complemented by laying and post-laying services, grid monitoring and preventive maintenance
services, power line repair and maintenance services, as well as emergency services, including
intervention in the event of damage.
In addition, Prysmian Group engineers, produces and installs “end-to-end” submarine cable solutions
for power transmission and distribution. The products offered include cables with different types of
insulation: cables insulated with layers of oil or fluid-impregnated paper for AC and DC transmission up
to 700 kV; cables insulated with extruded polymer for AC transmission up to 400 kV and DC transmission
up to 600 kV. The Group uses specific technological solutions for power transmission and distribution in
underwater environments, which satisfy the strictest international standards.
With the acquisition of General Cable, Prysmian Group has re-entered the Submarine Telecom cables
business, specialised in the production and installation of data transmission cables.
The Offshore Specialties business incorporates a wide range of products for the oil industry, including
umbilical cables, flexible pipes and all electrical, optical and signalling components for oil well
management from seabed to offshore platform.
Annual Report 2020

MARKET OVERVIEW
Market demand for Submarine Power cables continued to show signs of recovery during the year:
several bids are now at an advanced stage of the tendering process, and despite being later than
originally forecast, are expected to be awarded in the next few months. The market is expected to grow
over the medium term, especially the Offshore Wind segment, fostered by the continuous reduction in
electricity generation costs.
Market demand remained stable for Submarine Telecom cables.
In the High Voltage underground business, the HVAC market was largely stable in Europe, with mixed
trends between the different countries, while reporting growth in North America but persistently soft
demand in Southeast Asia, which having already turned down in 2019 was exacerbated by the impact of
Covid-19.
In the HVDC market, typically for interconnectors, tendering activities for major underground power
lines in Germany reached their conclusion, with Prysmian Group being awarded a substantial share of
all the projects concerned. In fact, Prysmian Group has secured about 50% of both the Suedostlink
and A-Nord contracts, worth a total of approximately Euro 1 billion, and two lots worth about Euro 850
million for the Suedlink project.
The Offshore Specialties business continued to experience declining prices and volumes.
Sales to third parties by the Projects segment amounted to Euro 1,438 million in 2020, versus Euro 1,844
million in 2019, recording a negative change of Euro 406 million (-22.0%).
The factors behind this change were:

y negative organic sales growth, accounting for a decrease of Euro 379 million (-20.6%);
y exchange rate trends, producing a decrease of Euro 25 million (-1.3%);
y metal price fluctuations, producing a decrease of Euro 2 million (-0.1%).
The Projects segment’s negative organic growth of -20.6% for the year and -34.4% in the final quarter
primarily reflects the impact of the Covid-19 pandemic on every line of business; this was compounded
by lower sales volumes in some High Voltage markets, primarily France and APAC, and a negative
contribution from the mix of Submarine Power contracts in progress, where a high level of operating
efficiency partially offset the impact of having underutilised assets. The Submarine Telecom and
Offshore Specialties businesses reported a limited reduction in sales.
The main Submarine Power projects on which work was performed during the period were: the
interconnector between Norway and the UK (North Sea Link), the interconnector between France and
the UK (IFA2), the interconnection projects in Bahrain and Greece (Crete-Peloponnese interconnector),
the Viking Link interconnector and the offshore wind projects in France.
Sales in the period were the result of cable manufacturing activities by the Group’s industrial facilities
(Pikkala in Finland, Arco Felice in Italy, Drammen in Norway and Nordenham in Germany) and installation
services, performed with the assistance of both its own assets and third-party equipment.
Prysmian Group
The value of the Group’s Submarine Power order backlog stands at around Euro 1.5 billion, mainly
consisting of the following contracts: the offshore wind contracts in France (St. Nazaire and Fecamp)
and Germany (Dolwin5); the interconnector between the UK and Denmark (Viking Link); and the project
for the Crete-Attica link awarded during second quarter 2020. The value of the Group’s High Voltage
order backlog has increased considerably during 2020, thanks to the award of the German Corridors
HVDC contracts in Germany, taking it to approximately Euro 2 billion.
The Group’s overall order backlog has thus reached a record level of Euro 3.5 billion.
Adjusted EBITDA for year came to Euro 186 million, down from the prior year figure of Euro 228 million;
the main source of contraction can be laid at the door of Covid-19, causing orders to slow and be
postponed, especially in the businesses of High Voltage Underground (although recovering in the last
quarter of the year) and Offshore Specialties, combined with a negative mix of work in progress in the
Submarine Energy business, which also suffered from underutilised production capacity.
Annual Report 2020

Review of Energy Operating Segment

Sales 7,207 8,027 -10.2% 6,975
accounted companies
% of sales 6.1% 6.3% 4.5%
% of sales 6.1% 6.3% 4.6%
Adjustments (45) (60) (71)
EBITDA 395 445 -11.4% 249
% of sales 5.5% 5.5% 3.6%
% of sales 3.5% 4.0% 2.8%
The Energy Operating Segment, incorporating those businesses able to offer a complete and innovative
product portfolio to a variety of industries, is organised around the business areas of Energy &
Infrastructure (comprising Trade & Installers, Power Distribution and Overhead Transmission Lines)
and Industrial & Network Components (comprising Oil & Gas, Downhole Technology, Specialties & OEM,
Elevators, Automotive and Network Components).
Sales to third parties by the Energy operating segment came to Euro 7,207 million in 2020, compared
with Euro 8,027 million in 2019, posting a negative change of Euro 820 million (-10.2%), the main
components of which are as follows:
y negative organic sales growth of Euro 574 million (-7.1%). Fourth-quarter organic growth was -4.9%;
y decrease of Euro 256 million (-3.2%) for adverse exchange rate fluctuations;
y sales price increase of Euro 10 million (+0.1%) for metal price fluctuations.
Adjusted EBITDA came to Euro 440 million in 2020, down Euro 65 million (-12.8%) from Euro 505 million
in 2019, reflecting the difficulties experienced in connection with the Covid-19 pandemic.
The following paragraphs describe market trends and financial performance in each of the Energy
operating segment’s business areas.
ENERGY & INFRASTRUCTURE

Sales 4,735 5,285 -10.4% 4,462
accounted companies
% of sales 5.8% 5.8% 3.7%
% of sales 5.8% 5.8% 3.7%
% of sales 3.2% 3.5% 1.8%
Prysmian Group
Prysmian produces high and medium voltage cable systems to connect industrial and/or civilian
buildings to primary distribution grids and low voltage cables and systems for power distribution and the
wiring of buildings. All the products offered comply with international standards regarding insulation,
fire resistance, smoke emissions and halogen levels. The low voltage product portfolio includes rigid
and flexible cables for distributing power to and within residential and commercial buildings. The Group
concentrates product development and innovation activities on high performance cables, such as Fire-
Resistant and Low Smoke zero Halogen cables, capable of guaranteeing specific safety standards. The
product range has been lately expanded to satisfy the demand for cables serving infrastructure such
as airports, ports and railway stations, by customers as diverse as international distributors, buying
syndicates, installers and wholesalers.
MARKET OVERVIEW
The product markets have distinct geographical characteristics (despite international product
standards) both in terms of customer and supplier fragmentation and the range of items produced and
sold.
During 2020, the Trade & Installers business saw demand turn down in most of the European countries
served, particularly in South Europe and the UK due not only to difficulties associated with the Covid-19
pandemic but also with Brexit. The decline in business in the regions of APAC, MEAT and LATAM (the latter
nonetheless showing signs of improvement in the final quarter), reflected not only the complications
making an already troubled market more uncertain. Even in North America the Trade & Installers market
reported a year-on-year downturn, mainly due to the Covid-19 pandemic.
As for Power Distribution, markets in North America continued to be buoyant, also thanks to Onshore
Wind demand, which benefited from the Production Tax Credit (PTC), a tax incentive based on electricity
generated. Following the pandemic, the deadline for installations was extended until the end of next
year, without increasing the amounts incentivised.
The principal European countries have experienced a general stagnation in energy consumption
in recent years, in turn adversely affecting demand by the major utilities. The latter, operating in a
recessionary economic environment, have either maintained cautious positions, given the impossibility
of forecasting future growth, or else they have concentrated on business restructuring to improve
efficiency and contain supply-side costs. This situation has exacerbated the competitive dynamics in
terms of price and mix, leaving an extremely challenging environment almost everywhere. During
2020, demand for the Power Distribution business versus the prior year benefited from a growth in
consumption in North Europe, and remained resilient in Germany and the Danube area, while flagging
slightly in South Europe and the UK mainly due to Covid-19 issues and the Brexit effect.
Lastly, demand was down in the Middle East, LATAM and APAC, partly owing to the Covid-19 pandemic.
The Overhead Transmission Lines business saw its North American and LATAM volumes grow on the same
period last year, in line with market expectations.
Sales to third parties by the Energy & Infrastructure business area amounted to Euro 4,735 million in
2020, compared with Euro 5,285 million in 2019, posting a negative change of Euro 550 million (-10.4%),
the main components of which are as follows:
y negative organic sales growth of Euro 398 million (-7.5%);
Annual Report 2020

y negative change of Euro 171 million (-3.2%) for exchange rate fluctuations;
The Energy and Infrastructure business area recorded negative organic sales growth of -7.5% over the
year (-4% in the final quarter).
The Trade & Installers business had negative organic growth, albeit with geographical differences,
especially pronounced in South Europe, UK, LATAM and North America, the hardest hit regions by the
Covid-19 pandemic, while a resilient market in Central Eastern Europe and North America managed to
make up for part of the reduction in volumes. Despite a drop in volumes mainly because of Covid-19,
the APAC region boosted its profitability. Middle East markets were also in retreat because of strong
pressure on oil prices. Overall profitability of the Trade & Installers business was down on 2019 primarily
as a consequence of Covid-19. The Power Distribution business had negative organic growth, reflecting
different performances by region: strong positive growth in North America and North Europe, stable
in Central-East Europe but negative in South Europe, the Middle East, LATAM and APAC. There was an
overall improvement in profitability, driven mainly by North America and also thanks to prompt action
on the cost front. Strong price pressure persisted in Europe.
The Overhead Lines business enjoyed strong positive organic growth in LATAM, while remaining stable
in North America.
Given the above factors, Adjusted EBITDA for 2020 came to Euro 275 million, compared with Euro 308
million in the previous year, reflecting a decrease of Euro 33 million.
INDUSTRIAL & NETWORK COMPONENTS

Sales 2,252 2,492 -9.6% 2,277
accounted companies
% of sales 7.3% 7.8% 6.8%
% of sales 7.4% 7.9% 6.8%
% of sales 4.8% 5.6% 5.2%
The extensive range of cables developed specially for certain industries is characterised by the highly
specific nature of the solutions offered. In the transport market, Prysmian cables are used in the
construction of ships and trains, and in the automotive and aerospace industries; in the infrastructure
market, the principal applications for its cables are found in railways, docks and airports. The product
range also includes cables for the mining industry, for elevators and for applications in the renewable
energy field (solar and wind power), cables for military use and for nuclear power stations, able to
withstand the highest radiation environments.
Prysmian also offers a wide range of products for the petrochemicals sector able to serve every
onshore and offshore need, including the design and supply of systems for power transmission and
data communication from offshore platforms and/or floating hydrocarbon storage vessels to the well-
heads; flexible offshore pipes for hydrocarbon transport; Downhole Technology (DHT) solutions, which
include steel tubing encased cables to control and power monitoring systems inside extraction wells
both offshore and onshore.
Prysmian Group
The range of products for the petrochemicals industry also includes low and medium voltage power
cables, and instrumentation and control cables. The onshore product range is able to support
applications in all three segments of the petrochemical production chain: Upstream, Midstream and
Downstream.
Lastly, the Group produces accessories and network components, as well as sophisticated control
systems; for example, joints and terminations for low, medium, high and extra high voltage cables
and submarine systems to connect cables with one another and/or connect them with other network
devices, suitable for industrial, construction and infrastructure applications and for use within power
transmission and distribution networks.
MARKET OVERVIEW
Markets for Industrial cables, while growing as a whole, displayed inconsistencies within the various
business lines and between the different geographical areas. Some market segments grew despite
the pandemic, thanks to a strong existing order backlog and the resilience of customer investment
programs. Some applications for the OEM sector (Railway, Nuclear, Marine, Water and Electromedical)
performed well, while the Crane and Defence segments remained stable. The Mining business posted a
major slowdown as a result of lower MRO demand in the United States and the phasing of some projects
in Eastern Europe and South America. The Rolling stock segment also saw lower volumes due to the
Covid-induced postponement of CRRC call-offs under a multi-year program announced in 2020. The
Renewables business enjoyed an uptick in demand for both Solar and Wind products which benefited
from favourable phasing of some projects, completed despite the pandemic. The Wind segment
benefited from a significant acceleration in the latter part of the year, especially in China in view of
the imminent ending of incentives in 2021. However, both segments saw an increase in competitive
pressure, affecting prices and partially eroding the healthy trend in volumes.
O&G demand was significantly inhibited by the Covid-19 pandemic and lower oil prices. The first
quarter of the year saw a lull in activity in China, the first country hit by Covid-19 which then recovered
over the course of the year. Starting in the second quarter, the slowdown in activity spread to the rest
of the world in tandem with the proliferation of the pandemic, with this slowdown persisting during
the third and fourth quarters. The hardest hit areas in the second half of the year were North and South
America. EMEA and Asia Pacific maintained a higher level of activity thanks to the large order backlog
built up in the previous year. However, the rate of order intake slowed over the course of 2020 with
the spread of the pandemic and postponement of further investment decisions by major oil company
customers.
The Elevator market showed a certain stability thanks to the good performance of the North American
market.
After a positive first quarter, the Automotive segment recorded a drastic first-half drop in volumes
primarily originating in the second quarter, mainly affecting the European, North American and APAC
markets, while showing good signs of recovery in the third quarter and especially the fourth quarter with
the reopening of major car manufacturers, whose production schedules were revised for the impact of
Covid-19. The largest reductions were seen in the mid- to low-end segments.
The Network Components market saw demand contract in 2020, in both the MV and HV/EHV segments
as a result of the Covid-19 pandemic in South Europe, LATAM and APAC, while remaining stable in the rest
of the world.
Annual Report 2020

Sales to third parties by the Industrial & Network Components business area amounted to Euro 2,252
million in 2020, compared with Euro 2,492 million in 2019, recording a negative change of Euro 240
million (-9.6%), the main components of which were as follows:
y negative organic sales growth of Euro 176 million (-7%). Fourth-quarter organic growth was -4.9%;
y negative change of Euro 76 million (-3.1%) for exchange rate fluctuations;
The principal business lines of Industrial & Network Components performed less well in 2020 than in
2019, particularly so in the case of the Automotive, Oil & Gas and Aviation businesses.
The Oil & Gas business saw business volumes steadily deteriorate in the EMEA region, while remaining
depressed in North and South America. Asia Pacific as a whole had a positive level of activity. The
business’s overall margins degenerated due to the contraction in activity and parallel increase in
competitive pressure.
The Downhole Technology business recorded a decrease in volumes and profits on the previous year,
reflecting a reduction in volumes and orders related not only to the Covid-19 pandemic but also lower
oil prices.
Specialties, OEM and Renewables recorded a healthy level of profit in line with expectations, displaying
good resilience to the global economic situation, particularly thanks to the contribution of North Europe
and North America and the businesses of Cranes, Railway, Nuclear and Renewables especially in China.
This positive performance was partially tempered by worse results in the Mining and Infrastructure
businesses as well as by a general slowdown in the regions most affected by the Covid-19 pandemic,
namely South Europe, LATAM and APAC.
The profitability of the Elevator business, which performed well in North America, was in line with
expectations. A few problems were experienced on the Chinese market in connection with Covid-19-
related difficulties in the first quarter.
The acquisition of the EHC group was completed in January 2021, enabling the Group to integrate vertical
transportation solutions into the product portfolio of its Elevator business.
The Automotive business recorded a sharp downturn in volumes everywhere, especially in the second
quarter of 2020. The third quarter showed signs of recovery with improved efficiencies confirmed in the
last quarter of the year.
The Network Components business experienced a deteriorating performance in the regions

hardest hit by the Covid-19 pandemic, but managed to keep margins stable. The impact was most
pronounced in South Europe, China and LATAM, both for the medium/low voltage sector and for
HV products, while North Europe and the North American medium voltage sector were stable or
marginally growing.
Given the above factors, Adjusted EBITDA for 2020 came to Euro 166 million, down from Euro 196 million
in the previous year, reflecting a negative change of Euro 30 million (-15.5%).
Prysmian Group
OTHER
(Euro/million) 2020 2019 2018 (*)

Sales 220 250 236
Adjusted EBITDA before share of net profit/(loss) of equity-accounted (1) 1 (2)
companies
Adjusted EBITDA (1) 1 (2)
Adjusted operating income (6) (2) (4)
This business area encompasses occasional sales by Prysmian Group operating units of intermediate
goods, raw materials or other products forming part of the production process. These sales are normally
linked to local business situations, do not generate high margins and can vary in size from period to
period.
Annual Report 2020

Review of Telecom Operating Segment

Sales 1,371 1,648 -16.8% 1,494
accounted companies
% of sales 14.6% 15.3% 15.4%
% of sales 15.6% 16.6% 19.0%
Adjustments 8 - 22
EBITDA 222 274 -19.1% 306
% of sales 16.2% 16.6% 20.5%
% of sales 10.1% 12.3% 15.9%
As partner to leading telecom operators worldwide, Prysmian Group produces and manufactures a wide
range of cable systems and connectivity products used in telecommunication networks. The product
portfolio includes optical fibre, optical cables, connectivity components and accessories and copper
cables.
MARKET OVERVIEW
The downturn in the global optical fibre cables market, already observed in the last part of the previous
year, was confirmed in 2020.
Demand was additionally constrained by the impact of Covid-19 throughout the entire year. The
phenomenon observed on the Chinese market at the beginning of first quarter 2020 spread to the rest
of the world, most evidently in South Europe, North America and Latin America.
In North America, consumption of optical fibre cables remained steady year-on-year.
In Europe, overall demand was down, with uneven behaviour in the various national markets. In such a
climate, the markedly negative contribution of the South Europe region was only partially mitigated by
some virtuous behaviour in North Europe. In South Europe, the main operators adopted an aggressive
destocking policy, which sharply reduced their optical cable procurement estimates, triggering a sharp
market contraction.
In Italy, France and Spain, the first countries to take measures to contain the Covid-19 virus, a drop in
demand for optical cables could be observed throughout 2020. Even though the Telecom segment is
classified as strategic, difficulties in finding personnel to perform installations effectively prevented
demand from accelerating much.
Thanks to plans under the Digital Agenda for Europe 2025, European demand is expected to revive from
2021. This Agenda envisages the provision of three levels of minimum service depending on the type of
user. In fact, government offices and entities like schools and hospitals will benefit from a bandwidth
Prysmian Group
of at least 1 Gb/s. Likewise, the entire residential population will be connected with 100 Mb/s, while
all urban areas and transport corridors should have broadband mobile coverage with 5G technology. In
Europe, the network architectures used vary as decided by each individual country.
FTTH networks are the preference in France, Spain, Portugal and the Nordics, while G.Fast is the norm
in Germany and Britain; although these systems use the last metres of the existing copper network,
massive volumes of optical cables are nonetheless required to upgrade the distribution networks. In
other places like Italy, the two technologies coexist.
In South America, a region when fibre penetration rates are still low, the optical cables market reported
a slight decline attributable to a slowing of investment by major telecom operators.
The copper cable market continued to slow as a result of product maturity. The drop in demand, already
evident during 2019, was confirmed but without showing any acceleration.
Given the high demand for internet access, the major operators have opted to renew their networks
using optical fibre, rather than perform extensive maintenance work or upgrade existing networks.
It is still worth retaining a presence in this segment since the gradual decommissioning of assets by
competitor cable manufacturers nonetheless offers attractive opportunities.
The MMS cable market reported a downturn, most pronounced in South Europe and North America due
to Covid-related difficulties. The decline in Latin American business reflected not only the complications
making an already troubled market more uncertain.
Sales to third parties by the Telecom operating segment came to Euro 1,371 million at the end of 2020,
compared with Euro 1,648 million in 2019.
The negative change of Euro 277 million (-16.8%) is explained by:

y negative organic sales growth of Euro 232 million (-14.1%). Fourth-quarter organic growth was -3.8%;
y negative change of Euro 2 million (-0.1%) in sales prices for metal price fluctuations;
y negative change of Euro 43 million (-2.6%) for exchange rate fluctuations.
The organic decrease in sales during 2020 reflected the negative trend already observed since the
second half of 2019 and mainly stemmed from softer demand in 2020 for optical fibre and specialty
cables, further exacerbated by the impact of Covid-19. However, there was an improving trend from the
second half of 2020, thanks to North America, with optical fibre cable volumes accelerating in the last
quarter of the year.
European volumes trended down in 2020 on the previous year, although picking up in the fourth quarter,
with continuing price pressure offset by greater cost efficiency.
In Brazil and Argentina, the Group’s performance was in line with the downward market trend.
Globally, copper cables continued their steady decline with the retirement of traditional networks in
favour of new-generation ones.
The positive performance of the high value-added business of optical connectivity accessories,
prompted by the development of new FTTx networks (for last mile broadband), dwindled during year.
While performance improved in the UK, other European markets reported a year-on-year deterioration.
Annual Report 2020

The Multimedia Solutions business saw its growth slow on 2019, mainly due to the pandemic’s effects on
South European and North American markets.
The return on investments in relocating some cable manufacturing sources to Eastern Europe also made
a substantial contribution to the segment’s overall results.
Adjusted EBITDA for 2020 came to Euro 214 million, reporting a decrease of Euro 60 million (-21.9%)
from Euro 274 million in 2019. This decline is mainly attributable to the negative results of the Group
as described above and to those of the associate Yangtze Optical Fibre and Cable Joint Stock Limited
Company in China, involving a negative impact of some Euro 8 million, only partially mitigated by a
stabilisation in margins despite pressure on prices and achieved thanks to cost efficiencies.
Prysmian Group
Results by Geographical Area
Sales Adjusted EBITDA

(Euro/million)
2020 2019 2020 2019
EMEA (*)
5,344 6,196 370 491
North America 3,084 3,441 354 352
Latin America 775 931 68 102
Asia Pacific 813 951 48 62
Total 10,016 11,519 840 1,007
(*) EMEA = Europe, Middle East and Africa.
As stated in the Explanatory Notes to this Annual Report, the Group’s operating segments are: Energy,
Projects and Telecom, reflecting the structure used in the periodic reports prepared to review business
performance. The primary performance indicator used in these reports, presented by macro type of
business (Energy, Projects and Telecom), is Adjusted EBITDA, defined as earnings (loss) for the period
before non-recurring items, the fair value change in metal price derivatives and in other fair value items,
amortisation, depreciation and impairment, finance costs and income and taxes.
In order to provide users of the financial statements with information that is more consistent with
the Group’s greater geographical diversification following the General Cable acquisition, Sales and
Adjusted EBITDA have been reported above by geographical area, even though the primary operating
segments remain those by business. For this purpose, sales of goods and services are analysed
geographically on the basis of the location of the registered office of the company that issues the
invoices, regardless of the geographic destination of the products sold. This type of presentation does
not produce significantly different results from analysing sales of goods and services by destination
of the products sold.
EMEA
The EMEA region recorded negative year-on-year organic sales growth of -11.9% in 2020 (-8.9% excluding
the Projects segment) and -4.2% in 4Q 2020. This reflected adverse performance above all in 2Q 2020 in
South Europe, the UK and the Middle East with the spread of the Covid-19 pandemic. Starting in 2H 2020,
there was a sequential improvement in the Energy & Infrastructure business, which achieved weakly
positive organic growth in 4Q 2020.
North America
North America recorded negative year-on-year organic sales growth of -7.1% in 2020 (-6.5% excluding
the Projects segment) and -7.9% in 4Q 2020. The Energy & Infrastructure business posted a solid
performance, mainly thanks to Power Distribution (dwindling however in the 2H 2020) and Overhead
Transmission Lines, as well as continuous improvement in the optical cables business. Margins were
supported by a favourable business mix and targeted actions to reduce costs.
LATAM
LATAM recorded negative year-on-year organic sales growth of -9.0% in 2020 (-10.4% excluding the
Projects segment) and +1.4% in 4Q 2020. This region, severely impacted by the adverse consequences
of the Covid-19 pandemic in 2Q 2020, saw a strong second-half recovery. Positive fourth-quarter organic
growth was driven primarily by Trade & Installers, Overhead Transmission Lines and Telecom.
Annual Report 2020

APAC
APAC recorded negative year-on-year organic sales growth of -13.0% in 2020 (-10.1% excluding the
Projects segment) and -1.8% in 4Q 2020, reflecting the impact of the Covid-19 pandemic. There was
nonetheless a significant fourth-quarter recovery thanks to the Energy segment (especially Trade and
Installers, Renewables and Elevator), partly mitigated by the performance of Telecom.
COVID-19 EFFECTS
Sales in 2020 have decreased by 13% year-on-year, a reduction of Euro 1,503 million. Group Management
has estimated that around 67% of this reduction is attributable to the loss in sales versus pre-pandemic
forecasts caused by delays in the award of contracts and the drop in demand experienced by the most
cyclically sensitive businesses, as well as by restrictions imposed by some governments on production
activities.
As far as operating costs are concerned, Management has estimated the impact of shutting down
certain production facilities in response to preventive measures adopted by some governments and of
having operated at a much lower capacity than usual to be approximately Euro 37 million, net of related
government financial support. In addition, the Group has recorded about Euro 8 million for ineffective
hedges and inventory write-downs after items underlying derivatives were no longer realised due to the
pandemic.
In addition to the above, approximately Euro 16 million in costs, treated as EBITDA adjustments, have
been incurred to disinfect workplaces and buy personal protective equipment in order to allow industrial
activities to continue safely and in compliance with the mandatory standards of hygiene dictated by the
situation.
The spread of the Covid-19 pandemic has led to the recognition of certain impacts specifically as a result
of adjusting the estimates and assumptions made by Group Management. In particular, an impairment
loss of some Euro 66 million has been recognised against the property, plant and equipment allocated
to the Energy segment’s South Europe Region CGU.
Prysmian Group
Group Statement of Financial Position

RECLASSIFIED STATEMENT OF FINANCIAL POSITION

Net fixed assets 4,971 5,301 (330) 5,101
Net working capital 523 755 (232) 692
Provisions and net deferred taxes (579) (820) 241 (734)
Net capital employed 4,915 5,236 (321) 5,059
Employee benefit obligations 506 494 12 463
Total equity 2,423 2,602 (179) 2,374
of which attributable to non-controlling interests 164 187 (23) 188
Total equity and sources of funds 4,915 5,236 (321) 5,059
NET FIXED ASSETS

Property, plant and equipment 2,648 2,804 (156) 2,629
Intangible assets 1,997 2,154 (157) 2,162
Equity-accounted investments 312 314 (2) 294
Other investments at fair value through other comprehensive 13 13 - 13
income
Assets and liabilities held for sale (*) 1 16 (15) 3
Net fixed assets 4,971 5,301 (330) 5,101
(*) Excluding the value of financial assets and liabilities held for sale.
At 31 December 2020, net fixed assets amounted to Euro 4,971 million, compared with Euro 5,301 million
at 31 December 2019, posting a decrease of Euro 330 million mainly due to the combined effect of the
following factors:
y Euro 244 million in net capital expenditure on property, plant and equipment and intangible assets;
y Euro 393 million in depreciation, amortisation and impairment charges for the period;
y Euro 79 million in increases in property, plant and equipment for new lease agreements accounted
for in accordance with IFRS 16;
y Euro 255 million in negative currency translation differences affecting property, plant and equipment
and intangible assets;
y Euro 2 million for the net decrease in equity-accounted investments, mainly comprising a positive
Euro 18 million for the share of net profit/(loss) of equity-accounted companies, less Euro 8 million
in dividend payments and Euro 10 million in negative currency translation differences.
Annual Report 2020

NET WORKING CAPITAL
The following table analyses the main components of net working capital:

Inventories 1,531 1,523 8 1,511
Trade receivables 1,374 1,475 (101) 1,635
Trade payables (1,958) (2,062) 104 (2,132)
Other receivables/(payables) (515) (187) (328) (307)
Net operating working capital 432 749 (317) 707
Derivatives 91 6 85 (15)
Net working capital 523 755 (232) 692
Net working capital of Euro 523 million at 31 December 2020 was Euro 232 million lower than the
corresponding figure of Euro 755 million at 31 December 2019. Net operating working capital, which
excludes the value of derivatives, amounted to Euro 432 million (4.3% of fourth-quarter annualised
sales) at 31 December 2020, down Euro 317 million from Euro 749 million (6.5% of sales) at 31 December
2019, reflecting the following factors:
y a reduction in working capital employed in multi-year Submarine projects, reflecting their stage of
completion;
y an increase in working capital due to a decrease in without-recourse factoring of trade receivables;
y a reduction for the effect of currency differences.
EQUITY
The following table reconciles the Group’s equity and net profit/(loss) for 2020 with the corresponding
figures reported by Prysmian S.p.A., the Parent Company.
Equity at Net profit/ Equity at Net profit/

(Euro/million)
31.12.2020 (loss) 2020 31.12.2019 (loss) 2019
Parent Company Financial Statements 2,209 80 2,161 179
Share of equity and net profit of consolidated subsidiaries, 253 212 485 289
net of carrying amount of the related investments
Reversal of dividends distributed to the Parent Company by - (123) - (154)
consolidated subsidiaries
Deferred taxes on earnings/reserves distributable by subsidiaries (30) - (30) (14)
Elimination of intercompany profits and losses included in (9) 5 (14) (4)
inventories
Non-controlling interests (164) 4 (187) (4)
Consolidated Financial Statements 2,259 178 2,415 292
Prysmian Group
NET FINANCIAL DEBT
The following table provides a detailed breakdown of net financial debt:

Long-term financial payables
CDP Loans 100 100 - 100
EIB Loans 110 118 (8) 135
Non-convertible bond 748 746 2 745
Convertible Bond 2017 489 478 11 467
Term Loan 996 995 1 993
Bridge Loan - - - 500
Unicredit Loan 200 199 1 199
Mediobanca Loan 100 100 - -
Intesa Loan 150 149 1 -
Derivatives 12 15 (3) 8
Lease liabilities 143 135 8 11
Other financial payables 9 12 (3) 11
Total long-term financial payables 3,057 3,047 10 3,169
Short-term financial payables

CDP Loans 1 100 (99) -
EIB Loans 8 17 (9) 17
Non-convertible bond 14 14 - 14
Term Loan 1 1 - 1
Derivatives 16 10 6 8
Other financial payables 51 36 15 65
Total short-term financial payables 143 222 (79) 106
Total financial liabilities 3,200 3,269 (69) 3,275
Long-term financial receivables 2 2 - 2

Long-term bank fees 3 4 (1) -
Financial assets at amortised cost 4 4 - 5
Short-term derivatives 4 6 (2) 2
Short-term financial receivables 4 2 2 7
Short-term bank fees 2 2 - 1
Financial assets at fair value through profit or loss 20 27 (7) 25
Financial assets at fair value through other comprehensive 11 11 - 10
income
Financial assets held for sale 1 1 - -
Cash and cash equivalents 1,163 1,070 93 1,001
Total financial assets 1,214 1,129 85 1,053
Net financial debt of Euro 1,986 million at 31 December 2020 has decreased by Euro 154 million from
Euro 2,140 million at 31 December 2019. The main factors contributing to this change are summarised in
the comments on the statement of cash flows in the next section.
Annual Report 2020

STATEMENT OF CASH FLOWS
(Euro/million) 2020 2019 Change 2018

EBITDA 781 907 (126) 501
Changes in provisions (including employee benefit obligations) (163) (72) (91) 147
and other movements
(Gains)/losses on disposal of property, plant and equipment and (20) (1) (19) (37)
intangible assets
Share of net profit/(loss) of equity-accounted companies (18) (24) 6 (59)
Net cash flow from operating activities (before changes in net 580 810 (230) 552
working capital)
Changes in net working capital 259 67 192 4
Taxes paid (142) (111) (31) (110)
Dividends from investments in equity-accounted companies 8 9 (1) 16
Net cash flow from operating activities 705 775 (70) 462
Cash flow from acquisitions and/or disposals (5) (7) 2 (1,290)
Net cash flow used in operating investing activities (244) (248) 4 (278)
Free cash flow (unlevered) 456 520 (64) (1,106)
Net finance costs (86) (94) 8 (84)
Free cash flow (levered) 370 426 (56) (1,190)
Dividend distribution (70) (119) 49 (105)
Capital contributions and other changes in equity 1 2 (1) 496
Net cash flow provided/(used) in the year 301 309 (8) (799)
Opening net financial debt (2,140) (2,222) 82 (436)
Net cash flow provided/(used) in the year 301 309 (8) (799)
Conversion of Convertible Bond 2013 - - - 283
Net financial debt General Cable - - - (1,215)
Increase due to IFRS 16 (79) (211) 132 -
Other changes (68) (16) (52) (55)
Closing net financial debt (1,986) (2,140) 154 (2,222)
Net cash flow provided by operating activities (before changes in net working capital) amounted to Euro
580 million at the end of 2020.
The decrease in net working capital, described earlier, provided Euro 259 million in cash flow. After Euro
142 million in tax payments and Euro 8 million in dividend receipts, operating activities in 2020 therefore
provided a net cash inflow of Euro 705 million.
Net operating capital expenditure used Euro 244 million in cash in 2020, a large part of which relating to
projects to increase and rationalise production capacity and to develop new products.
In addition, Euro 86 million in net finance costs were paid and Euro 70 million in dividends were
distributed during the year.
Prysmian Group
Alternative Performance Indicators
In addition to the standard financial reporting formats and indicators required under IFRS, this document
contains a number of reclassified statements and alternative performance indicators. The purpose is to
help users better evaluate the Group’s economic and financial performance. However, these statements
and indicators should not be treated as a substitute for the accepted ones required by IFRS.
In this regard, on 3 December 2015, Consob adopted the ESMA guidelines in Italy with publication of
“ESMA Guidelines/2015/1415” which supersede the “CESR Recommendation 2005 (CESR/05-178b)”. The
alternative performance measures have therefore been revised in light of these guidelines.
The alternative indicators used for reviewing the income statement include:
y Adjusted operating income: operating income before income and expense for company
reorganisation(1), before non-recurring items(2), as presented in the consolidated income statement,
before other non-operating income and expense(3) and before the fair value change in metal
derivatives and in other fair value items. The purpose of this indicator is to present the Group’s
operating profitability without the effects of events considered to be outside its recurring operations;
y EBITDA: operating income before the fair value change in metal price derivatives and in other fair
value items and before amortisation, depreciation and impairment. The purpose of this indicator is
to present the Group’s operating profitability before the main non-monetary items;
y Adjusted EBITDA: EBITDA as defined above calculated before income and expense for company
reorganisation, before non-recurring items, as presented in the consolidated income statement,
and before other non-operating income and expense. The purpose of this indicator is to present the
Group’s operating profitability before the main non-monetary items, without the effects of events
considered to be outside the Group’s recurring operations;
y Adjusted EBITDA before share of net profit/(loss) of equity-accounted companies: Adjusted EBITDA
as defined above calculated before the share of net profit/(loss) of equity-accounted companies;
y Organic growth: growth in sales calculated net of changes in the scope of consolidation, changes in
metal prices and exchange rate effects.
The alternative indicators used for reviewing the reclassified statement of financial position include:
y Net fixed assets: sum of the following items contained in the statement of financial position:
Intangible assets
Property, plant and equipment
Equity-accounted investments
Other investments at fair value through other comprehensive income
Assets held for sale involving Land and Buildings (excluding financial assets and liabilities held
for sale)
y Net working capital: sum of the following items contained in the statement of financial position:
Inventories
Trade receivables
Trade payables
Other non-current receivables and payables, net of long-term financial receivables classified in
net financial debt
Other current receivables and payables, net of short-term financial receivables classified in net
financial debt
(1) Income and expense for company reorganisation: these refer to income and expense that arise as a result of the closure of production facilities and/or as a result
of projects to enhance the organisational structure’s efficiency;
(2) Non-recurring income and expense: these refer to income and expense related to unusual events that have not affected the income statement in past periods
and that will probably not affect the results in future periods;
(3) Other non-operating income and expense: these refer to income and expense that management considers should not be taken into account when measuring
business performance.
Annual Report 2020

Derivatives net of financial instruments for hedging interest rate and currency risks relating to
financial transactions, classified in net financial debt
Current tax payables
Assets and liabilities held for sale involving current assets and liabilities
y Net operating working capital: sum of the following items contained in the statement of financial
position:
Inventories
Trade receivables
Trade payables
Other non-current receivables and payables, net of long-term financial receivables classified in
net financial debt
Other current receivables and payables, net of short-term financial receivables classified in net
financial debt
Current tax payables
y Provisions and net deferred taxes: sum of the following items contained in the statement of financial
position:
Provisions for risks and charges – current portion
Provisions for risks and charges – non-current portion
Provisions for deferred tax liabilities
Deferred tax assets
y Net capital employed: sum of Net fixed assets, Net working capital and Provisions.
y Employee benefit obligations and Total equity: these indicators correspond to Employee benefit
obligations and Total equity reported in the statement of financial position.
y Net financial debt: sum of the following items:
Borrowings from banks and other lenders – non-current portion
Borrowings from banks and other lenders – current portion
Derivatives on financial transactions recorded as Non-current derivatives and classified under
Long-term financial receivables
Derivatives on financial transactions recorded as Current derivatives and classified under Short-
term financial receivables
Derivatives on financial transactions recorded as Non-current derivatives and classified under
Long-term financial payables
Derivatives on financial transactions recorded as Current derivatives and classified under Short-
term financial payables
Medium/long-term financial receivables recorded in Other non-current receivables
Loan arrangement fees recorded in Other non-current receivables
Short-term financial receivables recorded in Other current receivables
Loan arrangement fees recorded in Other current receivables
Financial assets at amortised cost
Financial assets at fair value through profit or loss
Financial assets at fair value through other comprehensive income
Cash and cash equivalents
Prysmian Group
RECONCILIATION BETWEEN THE RECLASSIFIED STATEMENT OF FINANCIAL POSITION PRESENTED IN THE DIRECTORS’
REPORT AND THE STATEMENT OF FINANCIAL POSITION CONTAINED IN THE CONSOLIDATED FINANCIAL STATEMENTS
AND EXPLANATORY NOTES AT 31 DECEMBER 2020
31.12.2020 31.12.2019
(Euro/million) Note As per As per

financial financial
statements statements
Total net fixed assets A 4,971 5,301
Inventories 6 1,531 1,523

Trade receivables 5 1,374 1,475
Trade payables 13 (1,958) (2,062)
Other receivables 5 522 854
Other payables 13 (1,001) (980)
Current tax payables (25) (51)
Derivatives 8 67 (13)
Items not included in net working capital:

Financial receivables 5 6 4
Prepaid finance costs 5 5 6
Interest rate swaps 8 (19) (21)
Forward currency contracts on financial transactions 8 (5) 2
Total net working capital B 523 755
Provisions for risks and charges 14 (591) (777)

Deferred tax assets 16 207 170
Deferred tax liabilities 16 (195) (213)
Total provisions C (579) (820)
Net capital employed D=A+B+C 4,915 5,236
Employee benefit obligations E 15 506 494
Total equity F 11 2,423 2,602
Borrowings from banks and other lenders 12 3,172 3,244

Financial assets at amortised cost (4) (4)
Financial assets at fair value through other comprehensive income 4 (20) (27)
Financial assets at fair value through profit or loss 7 (11) (11)
Financial assets held for sale 10 (1) (1)
Cash and cash equivalents 9 (1,163) (1,070)
Financial receivables 5 (6) (4)
Prepaid finance costs 5 (5) (6)
Interest rate derivatives 8 19 21
Forward currency contracts on financial transactions 8 5 (2)
Net financial debt G 1,986 2,140
Total equity and sources of funds H=E+F+G 4,915 5,236
Annual Report 2020

RECONCILIATION BETWEEN THE PRINCIPAL INCOME STATEMENT INDICATORS AND THE INCOME STATEMENT
CONTAINED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND EXPLANATORY NOTES FOR 2020
2020 2019
(Euro/million) As per As per

income income
statement statement
Sales A 10,016 11,519
Change in inventories of finished goods and work in progress 69 (16)

Other income 99 96
Raw materials, consumables and goods (6,464) (7,218)
Personnel costs (1,409) (1,539)
Other expenses (1,579) (1,958)
Operating costs B (9,284) (10,635)
Share of net profit/(loss) of equity-accounted companies C 18 24

Fair value stock options D 31 (1)
EBITDA E=A+B+C+D 781 907
Other non-recurring expenses and revenues F (9) 32

Personnel costs for company reorganisation G (24) (69)
Other costs and revenues for company reorganisation H (8) (16)
Other non-operating expenses I (18) (47)
Total adjustments to EBITDA L=F+G+H+I (59) (100)
Adjusted EBITDA M = E – L 840 1,007
Share of net profit/(loss) of equity-accounted companies N 18 24
Adjusted EBITDA before share of net profit/(loss) of equity-accounted 822 983
companies O =M–N
2020 2019
(Euro/million) As per As per

income income
statement statement
Operating income A 353 569
Other non-recurring expenses and revenues (9) 32

Personnel costs for company reorganisation (24) (69)
Other costs and revenues for company reorganisation (8) (16)
Other non-operating expenses (18) (47)
Total adjustments to EBITDA B (59) (100)
Fair value change in metal derivatives C (4) 15

Fair value stock options D (31) 1
Non-recurring impairment and releases E (68) (36)
Adjusted operating income G=A-B-C-D-E 515 689
Prysmian Group
Risk Factors and Uncertainties
Prysmian Group’s value creation policy has always been based on effective risk management. Since
2012, by adopting the provisions on risk management introduced by the “Italian Stock Exchange
Corporate Governance Code for Listed Companies” (Corporate Governance Code), Prysmian has taken
the opportunity to strengthen its governance model and implement an advanced system of Risk
Management that promotes proactive management of risks using a structured and systematic tool to
support the main business decision-making processes. In fact, this Enterprise Risk Management (ERM)
model, developed in line with internationally recognised models and best practices, enables the Board
of Directors and management to make informed assessments of risk scenarios that could jeopardise
the achievement of strategic objectives, and to adopt additional tools able to anticipate, mitigate or
manage significant exposures.
The Group Chief Risk Officer (CRO), designated to manage the ERM process, is responsible for ensuring,
together with management, that the main risks facing Prysmian and its subsidiaries are promptly
identified, assessed and monitored over time. A special Internal Risk Management Committee
(consisting of the Group’s Senior Management) also ensures, through the CRO, that the ERM process
develops dynamically, by taking account of changes in the business, needs and events that have an
impact on the Group over time. The CRO reports periodically (at least twice a year) on such developments
to senior management. Reference should be made to the “Corporate Governance” section of this report
for a discussion of the governance structure adopted and the responsibilities designated to the bodies
involved.
The ERM model adopted (and formalised within the Group ERM Policy which incorporates the guidelines
for the Internal Control and Risk Management System approved by the Board of Directors back in
2014) follows a top-down approach, meaning it is directed by Senior Management and medium/long-
term business objectives and strategies. It extends to all the types of risk/opportunity for the Group,
represented in the Risk Model - shown in the following diagram - that uses five categories to classify the
risks of an internal or external nature characterising the Prysmian business model:
y Strategic Risks: risks arising from external or internal factors such as changes in the market
environment, from bad and/or improperly implemented corporate decisions and from failure to react
to changes in the competitive environment, which could therefore threaten the Group’s competitive
position and achievement of its strategic objectives;
y Financial Risks: risks associated with the amount of financial resources available, with the ability to
manage currency and interest rate volatility efficiently;
y Operational Risks: risks arising from the occurrence of events or situations that, by limiting the
effectiveness and efficiency of key processes, affect the Group’s ability to create value;
y Legal and Compliance Risks: risks related to violations of national, international and industry-
specific legal and regulatory requirements, to unprofessional conduct in conflict with company
ethics, exposing the Group to possible penalties and undermining its reputation in the marketplace;
y Planning and Reporting Risks: risks related to the adverse effects of incomplete, incorrect and/
or untimely information with possible impacts on the Group’s strategic, operational and financial
decisions.
Annual Report 2020

THE PRYSMIAN RISK MODEL
STRATEGIC FINANCIAL OPERATIONAL

Macroeconomic. demand trends & Competivie environment Raw materials price volatility Sales & Tendering
Stakeholder expectations and Corporate Social Responsibility Exchange rate volatility Production Capaccity / Efficiency
Key customer & business partners Interest rate volatility Supply Chain Capaity / Efficiency
Emerging country risk Financial instruments Business interruption / Catastrophic events
Law & regulation evolution Credit risk Contract execution / liabilities
Research & Development Liquidy risk / Working Capital risk Product quality / liabilities
M&A / JVs and integration process Capital availability / cost risk Environmental
Operative CAPEX Financial counterparties Information Technology
Strategy implementation Human Resources
Organizational framework & governance Outsourcing
Members of management involved in the ERM process are required to use a clearly defined common
method to measure and assess specific risk events in terms of Impact, Probability of occurrence and
adequacy of the existing Level of Risk Management, meaning:
y economic-financial impact on expected EBITDA or cash flow, net of any insurance coverage and
countermeasures in place, and/or qualitative impact on reputation and/or operational efficiency/
continuity, measured on a scale that goes from negligible (1) to critical (4);
y probability that a particular event may occur within the specific planning period, measured on a
scale that goes from remote (1) to high (4);
y level of control, meaning the maturity and efficiency of existing risk management systems and
processes, measured on a scale that goes from adequate (green) to inadequate (red).
The overall assessment must also take into account the future outlook for risk, i.e. the possibility that
the exposure is increasing, constant or decreasing over the period considered.
The results of measuring exposure to the risks analysed are then represented on a 4x4 heat map, which,
by combining the variables in question, provides an immediate picture of the most significant risk
events.
Prysmian Group
RISK ASSESSMENT CRITERIA
Critical
Assessment criteria
Impact
Probability
High
Level of Control
Impact
Level of Risk Management
Moderate
Risk NOT ADEQUATELY
understood and/or managed
Risk understood and/or managed
Insignificant
with ROOM FOR IMPROVEMENT
Risk ADEQUATELY understood and/or managed
Remote Low Average High
Probability
This overall picture of the Group’s risks allows the Board of Directors and Management to reflect
upon the level of the Group’s risk appetite, and so identify the risk management strategies to adopt,
by assessing which risks and with what priority it is thought necessary to implement, improve and
optimise mitigation actions or simply to monitor the exposure over time. The adoption of a particular
risk management strategy, however, depends on the nature of the risk event identified, so in the case
of:
y external risks outside the Group’s control, it will be possible to implement tools that support the
assessment of scenarios should the risk materialise, by defining the possible action plans to mitigate
impacts (e.g. continuous monitoring activities, stress testing of the business plan, taking out of
insurance coverage, disaster recovery plans, and so on);
y risks partially addressable by the Group, it will be possible to intervene through systems of risk
transfer, monitoring of specific indicators of risk, hedging activities, and so on;
y internal risks addressable by the Group, it will be possible, as risks inherent in the business, to take
targeted actions to prevent risk and minimise impacts by implementing an adequate system of
internal controls and related monitoring and auditing.
ERM is a continuous process that, as stated in the ERM Policy, forms part of the Group’s strategic planning
process through identifying potential events that could affect its sustainability, and which is updated
annually with the involvement of key members of management.
In 2020, this process involved the main business/function managers of the Group, allowing the most
significant risk factors to be identified, assessed and managed; this process also covered factors related
to the Group’s economic, environmental and social sustainability, to ensure lasting value creation for
shareholders and stakeholders.
The main risk factors to which the Group’s particular type of business model is exposed will now be
presented according to the classification used in the Risk Model described earlier, and describing the
strategies adopted to mitigate these risks.
Among the main risk factors, those that can have an impact in terms of economic, environmental
and social sustainability (ESG Environmental, Social, Governance risks) have also been assessed.
More details can be found in the annual Sustainability Report, available on the Company’s website at
www.prysmiangroup.com in the section media/media-library/sustainability-report.
Annual Report 2020

Financial risks are discussed in detail in the Explanatory Notes to the Consolidated Financial Statements
(Financial Risk Management). As stated in the Explanatory Notes to the Consolidated Financial
Statements (Basis of preparation), the Directors have assessed that there are no financial, operating
or other kind of indicators that might provide evidence of the Group’s inability to meet its obligations
in the foreseeable future and particularly in the next 12 months. In particular, based on its financial
performance and cash generation in recent years, as well as its available financial resources at 31
December 2020, the Directors believe that, barring any unforeseeable extraordinary events, there are
no material uncertainties, such as to cast significant doubts upon the business’s ability to continue as a
going concern.
STRATEGIC RISKS
Risks associated with the competitive environment

Many of the products offered by Prysmian Group, primarily in the Trade & Installers and Power
Distribution businesses, are made in conformity with specific industrial standards and so are
interchangeable with those offered by major competitors. Price is therefore a key factor in customer
choice of supplier. The entry into mature markets (e.g. Europe) of non-traditional competitors,
meaning small to medium manufacturing companies with low production costs, and the need to
saturate production capacity, together with the possible occurrence of a contraction in market
demand, translate into strong competitive pressure on prices, with possible consequences for the
Group’s expected margins.
In addition, high value-added segments - like High Voltage underground cables, Optical Cables and
Submarine cables - are seeing an escalation in competition from both existing operators and new
market entrants with leaner more flexible organisation models, with potentially negative impacts on
both sales volumes and selling prices. With particular reference to the Submarine cables business, the
high barriers to entry, linked to difficult-to-replicate ownership of technology, know-how and track
record, are driving large market players to compete not so much on the product as on the related
services.
The strategy of rationalising production facilities currently in progress, the consequent optimisation of
cost structure, the policy of geographical diversification and, last but not least, the ongoing pursuit of
innovative technological solutions, all help the Group to address the potential effects arising from the
competitive environment.
Risks associated with changes in macroeconomic conditions and demand

Factors such as trends in GDP and interest rates, the ease of getting credit, the cost of raw materials,
and the general level of energy consumption, significantly affect the energy demand of countries
which, in the face of persistent economic difficulties, then reduce investments that would otherwise
develop the market. Government incentives for alternative energy sources and for developing telecom
networks also face reduction for the same reason. Prysmian Group’s transmission business (high voltage
submarine cables) and Power Distribution and Telecom businesses, all highly concentrated in the
European market, are being affected by shifting contractions of demand within this market, caused by
the region’s prolonged economic downturn.
To counter this risk, the Group is pursuing, on the one hand, a policy of geographical diversification in
non-European countries and, on the other, a strategy to reduce costs by rationalising its manufacturing
footprint around the world in order to mitigate possible negative effects on the Group’s performance in
terms of lower sales and shrinking margins.
In addition, the Group constantly monitors developments in the global geopolitical environment
which, as a result - for example - of the introduction of specific industrial policies by individual countries,
could require it to revise existing business strategies and/or adopt mechanisms to safeguard the Group’s
competitive position.
Prysmian Group
Key customer dependence risks

The many and diverse types of customers (power transmission and telecom systems operators,
distributors, installers, etc.) and their distribution across an equally wide number of different countries
mitigate customer dependence risk at a group level.
Risk of instability in the Group’s countries of operation

Prysmian Group operates and has production facilities and/or companies in Asia, Latin America,
the Middle East, Africa and Eastern Europe. The Group’s operations in these countries are exposed to
different risks linked to local regulatory and legal systems, the imposition of tariffs or taxes, exchange
rate volatility, and political and economic instability affecting the ability of business and financial
partners to meet their obligations.
Significant changes in the macroeconomic, political, tax or legislative environment of such countries
could have an adverse impact on the Group’s business, results of operations and financial condition;
consequently, as already mentioned in an earlier paragraph, the Group constantly monitors
developments in the global geopolitical environment which could require it to revise existing business
strategies and/or adopt mechanisms to safeguard its competitive position.
Risk of market contraction or softer demand due to Covid-19

The global macroeconomic situation deteriorated over the course of 2020 due to the spread of the
Covid-19 pandemic.
In response to this health emergency, governments in most countries have adopted containment
measures, including travel bans, quarantines and other public emergency measures, with serious
repercussions for economic activity and the entire production system. The program of extraordinary
measures, swiftly deployed by the Group since the onset of the Covid-19 pandemic, is proving
effective and has put people first. Accordingly, in order to preserve the permanent employment of
its resources, steps have been taken to safeguard the health of employees, including through the
ongoing performance of tests and provision of hygiene materials and personal protective equipment.
The Group has also implemented a series of measures intended to mitigate risks arising from the
Covid-19 pandemic with the purpose of defending its cash generating capability, through rigorous
working capital management and effective cost monitoring designed to reduce both fixed and variable
expenditure. A much more rigorous investment policy has also been adopted, while preserving a
strategic allocation of resources.
FINANCIAL RISKS
Prysmian Group’s risk management strategy focuses on the unpredictability of markets and aims to
minimise the potentially negative impact on the Group’s financial performance. Some types of risk are
mitigated by using financial instruments (including derivatives).
Financial risk management is centralised with the Group Finance department which identifies, assesses
and hedges financial risks in close cooperation with the Group’s operating companies. The Group Finance,
Administration and Control department provides guidelines on risk management, with particular
attention to exchange rate risk, interest rate risk, credit risk, the use of derivative and non-derivative
instruments, and on how to invest excess liquidity. Such financial instruments are used solely to hedge
risks and not for speculative purposes.
Risks associated with availability of financial resources and their cost

The volatility of the international banking and financial system could be a potential risk factor in terms
of obtaining finance and its associated cost. In addition, non-compliance with the financial and non-
Annual Report 2020

financial covenants contained in the Group’s credit agreements could restrict its ability to increase
its net indebtedness, other conditions remaining equal. In fact, should it fail to satisfy one of these
covenants, this would trigger a default event which, unless resolved under the terms of the respective
agreements, could lead to their termination and/or early repayment of any credit drawn down. In such
an eventuality, the Group might be unable to repay the amounts demanded early, in turn giving rise to
a liquidity risk.
Given the current amount of financial resources and undrawn committed credit lines, totalling in excess
of Euro 2 billion at 31 December 2020, and six-monthly monitoring(1) of financial covenant compliance
(fully satisfied at 31 December 2020), the Group is of the opinion that this risk is significantly mitigated
and that it is capable of raising sufficient financial resources at a competitive cost. A more detailed
analysis of the risk in question, including a description of the Group’s principal sources of finance, can be
found in the Explanatory Notes to the Consolidated Financial Statements.
Exchange rate volatility

Prysmian Group operates internationally and is therefore exposed to exchange rate risk on the currencies
of the different countries in which it operates. Exchange rate risk occurs when future transactions or
assets and liabilities recognised in the statement of financial position are denominated in a currency
other than the functional currency of the company which undertakes the transaction.
To manage exchange rate risk arising from future trade transactions and from the recognition of foreign
currency assets and liabilities, most Prysmian Group companies use forward contracts arranged by
Group Treasury, which manages the various positions in each currency.
However, since Prysmian prepares its consolidated financial statements in Euro, fluctuations in the
exchange rates used to translate the financial statements of subsidiaries, originally expressed in a
foreign currency, could affect the Group’s results of operations and financial condition. Exchange rate
volatility is monitored both locally and centrally, by the Group Finance department, also using specific
indicators designed to intercept potential risk situations which, when thought to exceed the defined
tolerance limits, will trigger immediate mitigating actions.
A more detailed analysis of the risk in question can nonetheless be found in the “Financial Risk
Management” section of the Explanatory Notes to the Consolidated Financial Statements.
Interest rate volatility

Changes in interest rates affect the market value of Prysmian Group’s financial assets and liabilities
as well as its net finance costs. The interest rate risk to which the Group is exposed is mainly on long-
term financial liabilities, carrying both fixed and variable rates. Fixed rate debt exposes the Group
to a fair value risk. The Group does not operate any particular hedging policies in relation to the risk
arising from such contracts since it considers this risk to be immaterial. Variable rate debt exposes
the Group to a rate volatility risk (cash flow risk). The Group is able to use interest rate swaps (IRS) to
hedge this risk, which transform variable rates into fixed ones, thus reducing the rate volatility risk.
IRS contracts make it possible to exchange on specified dates the difference between contracted
fixed rates and the variable rate calculated with reference to the loan’s notional value. A potential
rise in interest rates, from the record lows reached in recent years, could represent a risk factor in
coming quarters.
(1) The financial covenants are measured at the half-year reporting date of 30 June and at the full-year reporting date of 31 December.
Prysmian Group
Credit risk
Credit risk is represented by Prysmian Group’s exposure to potential losses arising from the failure
of business or financial partners to discharge their obligations. This risk is monitored centrally by
the Group Finance department, while customer-related credit risk is managed operationally by the
individual subsidiaries. The Group does not have any excessive concentrations of credit risk, but given
the economic and social difficulties faced by some countries in which it operates, the exposure could
undergo a deterioration that would require closer monitoring. Accordingly, the Group has procedures
in place to ensure that its business partners are of proven reliability and that its financial partners have
high credit ratings. In addition, in mitigation of credit risk, the Group has a global trade credit insurance
program covering almost all its operating companies; this is managed centrally by the Risk Management
department, which monitors, with the assistance of the Group’s Credit Management function, the level
of exposure to risk and intervenes when tolerance limits are exceeded due to possible difficulty in
finding coverage on the market.
It should be noted that credit risk was not particularly impacted during 2020 by the spread of the
Covid-19 pandemic.
Liquidity risk
Liquidity risk indicates the sufficiency of an entity’s financial resources to meet its obligations to business
or financial partners on the agreed due dates.
With regard to Prysmian Group’s working capital cash requirements, these increase significantly during
the first half of the year when it commences production in anticipation of order intake, with a consequent
temporary increase in net financial debt.
Prudent management of liquidity risk involves the maintenance of adequate levels of cash, cash
equivalents and short-term securities, the availability of sufficient committed credit lines, and
timely renegotiation of loans before their maturity. Given the dynamic nature of the business in which
Prysmian Group operates, the Group Finance department prefers flexible forms of funding in the form
of committed credit lines.
As at 31 December 2020, the Group’s total financial resources and undrawn committed credit lines are in
excess of Euro 2 billion.
Commodity price volatility risk

The main commodities purchased by Prysmian Group are copper, aluminium and lead, accounting for
more than 50% of the total raw materials used to manufacture its products. The Group neutralises the
impact of possible variations in the price of copper and aluminium and, although less significant, of lead
through hedging activities and automatic sales price adjustment mechanisms. Hedging activities are
based on sales contracts or sales forecasts, which if not met, could expose the Group to the risk of price
volatility in the underlying assets.
A dedicated team within the Group Purchasing department monitors and coordinates centrally
those sales transactions requiring the purchase of metals and the related hedging activities carried
out by each subsidiary, ensuring that the level of exposure to risk is kept within defined tolerance
limits.
Annual Report 2020

OPERATIONAL RISKS
Liability for product quality/defects

Possible defects in the design and manufacture of Prysmian Group’s products could give rise to civil or
criminal liability towards its customers or third parties. Therefore, the Group, like other companies in
the industry, is exposed to the risk of legal action for product liability in the countries where it operates.
In line with the practice followed by many industry operators, the Group has taken out insurance which
it considers provides adequate protection against the risks arising from such liability. Should such
insurance coverage prove insufficient, the Group’s results of operations and financial condition could
be adversely affected.
In addition, the Group’s involvement in this kind of legal action and any resulting liability could expose
it to reputational damage, with potential further adverse consequences for its results of operations and
financial condition.
Risks associated with non-compliance with the contractual terms of turnkey projects
Projects for high/medium voltage submarine or underground power cables are characterised by
contractual forms entailing a “turnkey” or end-to-end type of project management that therefore
demands compliance with deadlines and quality standards, guaranteed by penalties calculated as an
agreed percentage of the contract value and that can even result in contract termination.
The application of such penalties, the obligation to pay damages as well as indirect effects on the
supply chain in the event of late delivery or manufacturing problems, could significantly affect project
performance and hence the Group’s margins. Possible damage to market reputation cannot be ruled out.
Given the complexity of “turnkey” projects, Prysmian has implemented a quality management process
involving a wide range of tests on cables and accessories before delivery and installation, as well as
specific ad hoc insurance coverage, often through insurance syndicates, able to mitigate exposure to
risks running from the manufacturing stage through to delivery.
In addition, the ERM assessments for this particular risk have led the Risk Management department, with
the support of the Sales department, to implement a systematic process of Project Risk Assessment for
all “turnkey” projects, involving the assignment of a Project Risk Manager, right from the bidding stage,
with the aim of identifying, assessing and monitoring over time the Group’s exposure to specific risks
and of foreseeing the necessary mitigation actions. The decision to present a bid proposal to a customer
will therefore also depend on the results of risk assessment.
Management periodically carries out risk assessment for completed and ongoing contracts and analyses
the risks involved. The Group has set aside specific provisions for such risks that represent the best
estimate of the related liabilities based on available information.
Business interruption risk due to dependence on key assets

The submarine cables business is heavily dependent on certain key assets, such as the Arco Felice plant
in Italy for the production of a particular type of cable and one of the cable-laying vessels owned by the
Group (the “Giulio Verne”), some of whose technical capabilities are hard to find on the market. The
loss of one of these assets due to unforeseen natural disasters (e.g. earthquakes, storms, etc.) or other
incidents (e.g. fire, terrorist attacks, etc.) and the consequent prolonged business interruption could
have a critical economic impact on the Group’s performance.
Work began in 2018 on building the “Leonardo da Vinci”, a new cable-laying vessel with a best-in-class
specification. The new vessel will enter into service in the second quarter of 2021, as a result of which the
risk of dependence on the “Giulio Verne” will be significantly reduced.
Prysmian addresses asset dependency risk by having:

y a systematic Loss Prevention program, managed centrally by the Risk Management department,
which, through periodic on-site inspections, allows the adequacy of existing systems of protection
Prysmian Group
to be assessed and any necessary remedial actions decided to mitigate the estimated residual risk.
As at 31 December 2020, the Group’s operating plants were sufficiently protected and there were no
significant exposures to risk. All the plants have been classified as “Excellent Highly Protected Rated
(HPR)”, “Good HPR” or “Good not HPR”, in accordance with the methodology defined by internationally
recognised best practices in the field of Risk Engineering & Loss Prevention;
y specific disaster recovery & business continuity plans which allow appropriate countermeasures
to be activated as soon as possible in order to minimise the impact of a catastrophic event and to
manage any consequent crisis;
y specific insurance schemes covering damage to assets and loss of associated contribution margin
due to business interruption, such as to minimise the financial impact of this risk on cash flow.
Environmental risks
The Group’s production activities are subject to specific environmental regulations, amongst which
those concerning the management of raw materials, energy resources and hazardous substances, water
discharges, air emissions and waste, including pollution prevention and minimisation of impacts on
environmental factors (soil, subsoil, water resources, atmosphere).
The evolution of such regulations is towards an ever stricter compliance burden on businesses, often
implying adaption of technologies (Best Available Techniques) and risk prevention systems, with the
associated costs.
Considering the Group’s large number of plants, the probability of an accident, with consequences not
only for the environment but also for the continuity of production, cannot be ignored or the resulting
economic and reputational impact, which could be significant.
In order to prevent and mitigate environmental risks, the Group has adopted an ISO14000 certified
environmental management system at most of its production sites.
Environmental issues are managed centrally by the HQ Health Safety & Environment (HSE) department
which, by coordinating local HSE departments, is responsible for adopting systems to ensure strict
compliance with legislation in accordance with best practice, for collecting and analysing environmental
data via a centralised platform, for monitoring risk exposure using specific indicators, for organising
specific training activities and carrying out audits at production sites.
Cyber security risks

The growing spread of web-based technologies and business models allowing the transfer and sharing
of sensitive information through virtual spaces (i.e. social media, cloud computing, etc.) carries
computing vulnerability risks which Prysmian Group cannot ignore in the conduct of its business.
Exposure to potential cyberattacks could be due to several factors such as the necessary distribution
of IT systems around the world, and the possession of high value-added information such as patents,
technology innovation projects, as well as financial projections and strategic plans not yet disclosed
to the market, unauthorised access to which could damage a company’s results, financial situation
and image. In partnership with the Risk Management department, the Group’s IT Security function
periodically performs specific assessments to identify any vulnerabilities in IT systems locally and
centrally that could compromise business continuity.
Furthermore, since 2016 Prysmian Group has started to implement a structured and integrated process
for managing cyber security risks which, under the leadership of the Group IT Security function, in
partnership with the Risk Management department, aims to strengthen the Group’s IT systems and
platforms and introduce robust mechanisms to prevent and control any cyberattacks. A clear Information
Security strategy has been defined in this regard setting out the governance structure adopted by the
Group and the guidelines for managing cyber risk within IT architectures and business processes. A
special Information Security Committee, consisting of the key figures involved in managing cyber risk(1),
(1) The following sit, as permanent members, on the Information Security Committee: the Chief Operating Officer, the Vicepresident HR&Organization, the Chief
Security Officer, the Chief Information Officer, the Chief Risk Officer, the Chief Audit & Compliance Officer and the Group’s IT Security Manager.
Annual Report 2020

has been appointed with the mission of defining the strategic and operational Cyber Security objectives,
of coordinating the main initiatives undertaken, and of examining and approving policies, operating
procedures and instructions. The Committee is convened on a periodic basis (twice a year) and in any
case upon the occurrence of any significant events or crises. Lastly, specific e-learning training sessions
have been provided to all the Group’s IT staff with the aim of raising their awareness of this issue.
Risk of lack or loss of key resources

The Group is exposed to the risk of lack or loss of key resources with strategic operational roles. Such
persons can be identified by their managerial responsibilities and/or specific know-how, necessary for
the implementation of corporate strategies, and are hard to replace quickly.
In order to ensure business continuity in line with its strategic objectives, the Group has established the
following:
y “Job Band Program” to define the classification of personnel through a due job weighting with respect
to responsibility, problem solving and know-how, in line with company strategies, using a common,
global organisational language;
y “Group Academy” to train and develop the following skills within the Group: Leadership (Management
School), Technical (Professional School) and E-Learning (Digital School);
y “Make it”, “Sell it”, “Sum it” recruitment programs for professionals in the production, quality,
procurement, logistics, sales and finance functions;
y “People Performance Program” to manage career paths;
y “Talent management program” to accelerate development of our talents;
y “Long-Term Incentive Program” to motivate and retain the Group’s key managers;
y “Graduate Program” aimed at attracting and recruiting talented, high-potential personnel to ensure
successful future staff replacements internally;
y “Non-compete agreements” formalised for those employees who possess technical process and
product innovation know-how representing strategic value added for the business in its particular
competitive sector.
Finally, Internal Job Posting was launched at a regional level in 2020, with the aim of making it global
at a later date, to facilitate the development of people’s cross-functional skills and continue to build a
global corporate culture.
Key supplier dependence risks

In carrying out its operations, Prysmian Group relies on many suppliers of goods and services, some of
which are important suppliers of raw materials like, for example, certain metals (copper, aluminium
and lead) and some polymer compounds, especially in the high voltage and submarine cables business.
Dependence on key suppliers obviously constitutes a risk in the event of delivery problems, quality
issues or price rises, and, in the case of certain raw material suppliers, Prysmian is potentially exposed
to their industrial risk (fire, explosion, flood, etc.).
With the objective of preventing and mitigating these risks, the Group has a well-established
qualification system for selecting and working with reliable suppliers of goods and services and, where
possible, identifying possible alternatives to therefore avoid single-source situations.
The mitigation strategy is therefore based on partnerships with a number of key suppliers aimed at
reducing the Group’s exposure to supply shortages, on close monitoring of their performance and on
projects and investments in R&D to develop alternative technical solutions.
Brexit risks
In June 2016 the UK electorate voted in a referendum to withdraw from the European Union (EU). In
January 2020 the UK Parliament passed the Withdrawal Agreement Bill setting out the terms of Brexit.
Prysmian Group
The process of the UK’s withdrawal from the European Union came to an end on 31 December 2020, after a
long transition period during which the European Union and the United Kingdom negotiated their future
relationship, with an agreement signed on 24 December 2020. In general, this agreement includes not
only restrictions on the movement of people but also additional customs requirements for goods.
Although a withdrawal agreement has been reached, the climate of uncertainty arising from Brexit
will continue to affect investment and consumption in the coming months, with possible consequent
impacts on the Group’s profitability, as well as possible impacts on the UK subsidiary’s supply chain.
LEGAL AND COMPLIANCE RISKS

Risks of non-compliance with Code of Ethics, Policies and Procedures
Non-compliance risk generically represents the possibility of incurring legal or administrative
sanctions, material financial losses or reputational damage as a result of violations of prevailing laws
and regulations. Prysmian Group deploys a series of organisational procedures designed to define
the principles of legality, transparency, fairness and honesty through which it operates. In particular,
since its inception, the Group has adopted a Code of Ethics, a document which contains the ethical
standards and the behavioural guidelines that all those engaged in activities on behalf of Prysmian or its
subsidiaries (including managers, officers, employees, agents, representatives, contractors, suppliers
and consultants) are required to observe. Through its Internal Audit & Compliance department, the
Group undertakes to constantly monitor compliance with and effective application of these rules, not
tolerating any kind of violation.
However, despite this ongoing endeavour, strict vigilance and periodic information campaigns, it is
not possible to rule out future episodes of misconduct in breach of policies, procedures or the Code of
Ethics, and hence of current legislation and regulations, by persons carrying out activities on Prysmian’s
behalf, which could result in legal sanctions, fines or reputational damage, even on a material scale.
Risks of non-compliance with Data Protection (Privacy) legislation

In today’s increasingly globalised business environment, with a proliferation of channels and ways to
access information, as well as growth in the volume and types of data managed, Prysmian is addressing
the various data management issues, ranging from compliance with recent legislation to defence
against potential threats to confidentiality, integrity and availability of information.
Accordingly, it is fundamental to have an overall vision when managing sensitive information, not only
with respect to regulatory compliance but also with respect to security and business priorities.
Furthermore, Europe’s General Data Protection Regulation (GDPR), which came into force in May 2018,
has now become one of the main reference points for a renewed commitment to data protection,
particularly personal data.
The personal data protection program adopted by Prysmian is based on the following key elements,
involving the entire corporate structure:
y Implementation of a data-based model, through mapping the personal data processed by company
departments and keeping a record of processing activities;
y Definition of a governance model, intended to comply with the requirements of the GDPR and other
emerging data protection regulations, featuring:
an organisational structure under which the Data Protection Officer (DPO) serves in an advisory
and monitoring capacity where personal data management is concerned, with the duties and
related responsibilities delegated to those materially engaged in data processing activities;
a set of policies and documents supporting the model (company policies, disclosure statements,
internal appointments, clauses applicable to suppliers, etc.);
y Evaluation and adoption of appropriate technical and organisational measures to ensure a level
of security appropriate to the risk, also with the help of new tools such as Data Protection Impact
Assessment introduced by the GDPR;
Annual Report 2020

y Definition of communication and training material specifically for those parties identified within
the data protection organisational model, so that all the parties involved are aware of the revised
regulatory requirements and take steps to fulfil them;
y Review of video surveillance systems, with particular reference to the new European guidelines and
the regulations applicable in Italy.
Monitoring and support have been provided to Prysmian’s many European legal entities, including the
most recent ones acquired from General Cable, in applying the model to ensure its consistent application
and the establishment of an internationally shared corporate culture in this regard.
The activities to comply with the recent European legislation are capitalised on as much as possible in the
compliance activities required by other national regulations, including the “Ley General de Proteccion
de Datos”, now applicable in Brazil and inspired by the same principles.
Risks of non-compliance with anti-bribery legislation

In recent years, legislators and regulators have devoted much attention to the fight against bribery
and corruption, with a growing tendency to extend responsibility to legal entities as well as to natural
persons. With growing internationalisation, organisations more and more often find themselves
operating in contexts exposed to the risk of bribery and having to comply with a variety of relevant
legislation, such as Italian Legislative Decree 231/2001, Italy’s Anti-bribery Law (Law 190/2012), the
Foreign Corrupt Practices Act, the UK Bribery Act etc., all with a common objective: to fight and repress
corruption.
The Group’s business model, with a global presence in over 50 countries and a multitude of product
applications, brings it into constant contact with multiple third parties (suppliers, intermediaries,
agents and customers). In particular, the management of large international projects in the Energy
(submarine and high voltage) and Oil & Gas businesses involves having business relationships, often
through local commercial agents and public officials, in countries at potential risk of corruption (as per
the Corruption Perception Index(1)).
Prysmian Group has therefore implemented a series of actions designed to manage bribery and
corruption on a preventive basis; foremost amongst these is the adoption of an Anti-Bribery Policy which
prohibits the bribery of both public officials and private individuals and requires employees to abide by
it and to observe and comply with all anti-bribery legislation in the countries in which they are employed
or active, if this is more restrictive. In addition, specific e-learning activities (training and testing) for all
Group personnel are periodically conducted to raise awareness about compliance with this legislation.
In 2019, carrying on from the previous year, Prysmian Group continued the activities defined in its Anti-
Bribery Compliance Program, inspired by the ISO 37001 guidelines for Anti-bribery management systems,
published on 15 October 2016, and intended to strengthen its monitoring of and focus on compliance
issues. This program, in addition to providing greater control over the management of bribery risk, also
aims to minimise the risk of punishment if crimes of corruption are committed by employees or third
parties. The core of the ISO 37001 standard is the control of third parties (suppliers, intermediaries,
agents and customers) through a due diligence system designed to reveal any critical issues or negative
events that undermine the reputation of third parties with whom Prysmian Group deals.
In this regard, it is noted that in 2019 the Group implemented a “Third Party Program”, a new Group Policy
aimed at preventing and managing the risk of corruption arising from relationships with third parties
(such as distributor agents, and certain categories of suppliers). In particular, prior to establishing
any business relationship with third parties, it is mandatory to perform - through a dedicated online
platform - due diligence checks on the third party. As a result, each third party receives a risk rating
(high, medium, low) and is consequently submitted to an approval process, differing according to the
level of risk. This program, introduced in 2019, continued to run throughout 2020.
(1) The Corruption Perception Index (CPI) is an indicator published annually by Transparency International, used to measure the perception of public sector
corruption in various countries around the world.
Prysmian Group
Following the acquisition of General Cable, Prysmian Group’s Anti-Bribery Compliance Program has been
updated and expanded to include the additional activities in this area envisaged by the General Cable
Compliance Program.
In addition, during 2019, General Cable and Prysmian’s compliance policies were revised, updated and
merged in order to have single documents valid for the entire Group.
With specific reference to the Anti-Bribery Compliance Program, during 2020 the related Policy was
revised, along with the Policy on Gifts and Entertainment Expenses.
Lastly, in line with the Group’s ongoing commitment to ensure that the financial and personal interests
of its employees and consultants do not conflict with the ability to perform their duties in a professional,
ethical and transparent manner, a new Conflict of Interest policy was issued in 2019.
In accordance with this policy, in 2020 all employees and consultants were required to disclose all
potential conflicts of interest, which were then duly analysed and evaluated. With the assistance of
the Human Resources department, the necessary corrective actions were then taken to mitigate or
eliminate any potential conflicts.
Further details about the actions taken by the Group to prevent corrupt practices can be found in the
specific section of the annual Sustainability Report.
Risks of non-compliance with antitrust law

Competition rules on restrictive agreements and abuse of dominant position now play a central role in
governing business activities in all sectors of economic life. Its extensive international presence in more
than 50 countries means the Group is subject to antitrust law in Europe and every other country in the
world in which it operates, each with more or less strict rules on the civil, administrative and criminal
liability of parties that violate the applicable legislation. In the last decade, local Antitrust Authorities
have paid increasing attention to commercial activities by market players, also involving a tendency for
international collaboration between authorities themselves. Prysmian aspires to operate on the market
in compliance with the competition rules.
In keeping with the priorities identified by the ERM process, the Board of Directors has adopted an
Antitrust Code of Conduct that all Group employees, Directors and managers are required to know and
abide by in the conduct of their duties and in their dealings with third parties.
Like with other Policies, following the acquisition of General Cable, the Antitrust Code of Conduct has
also been updated in order to have a single document, valid for the entire Prysmian Group and designed
to provide an overview of the problems associated with applying antitrust law and the consequent
standards of conduct to follow.
More detailed documents on the antitrust regulations in force in the European Union, North America,
China and Australia have also been adopted.
The Antitrust Code of Conduct is an integral part of the training program and is intended to provide an
overview of the issues concerning application of EU and Italian competition law on collusive practices
and abuse of dominant positions, within which specific situations are assessed on a case-by-case
basis. These activities represent a further step in establishing an “antitrust culture” within the Group
by promoting knowledge and raising the accountability of individuals for their professional duties
under antitrust legislation. Training in this area continued to be pursued in 2020. In particular, due to
the Covid-19 emergency, classroom lessons were replaced by specific online training delivered via the
Microsoft Skype/Teams platforms for certain functions, including Sales, Finance and Procurement. In
addition, e-learning modules are available on the company intranet to support and raise awareness of
and attention to this issue on an ongoing basis.
With regard to the antitrust investigations still in progress, details of which can be found in the note
on Provisions for risks and charges in the Explanatory Notes to the Consolidated Financial Statements,
the Group has a specific provision for risks and charges amounting to approximately Euro 120 million as
at 31 December 2020. Despite the uncertainty of the outcome of the investigations and legal actions in
progress, the amount of this provision is considered to represent the best estimate of the liability based
on the information available at the date of the current report.
Annual Report 2020

Risks arising from export restrictions

Many countries regulate international trade transactions and enforce laws and regulations
governing trade in products, software, technology and services, including financial transactions
and brokering.
Export control regimes, governed by laws of the United States, the EU (article 215 of the Treaty on the
Functioning of the EU) and the United Nations (Chapter VII of the UN Charter), identify the parties
(natural or legal persons) to whom the application of targeted restrictions (e.g. arms embargoes, travel
bans, financial or diplomatic sanctions, etc.) is mandatory.
Failure to comply may result in the imposition of fines and criminal and/or civil penalties, including
imprisonment.
In order to prevent and mitigate this risk, Prysmian Group has adopted a policy to manage and control
its exports that involves among other things:
y Monitoring of countries and parties subject to restrictions, as well as the level of restrictions in
force;
y Due Diligence on restricted persons, in order to avoid transactions with prohibited parties, including
screening of Prysmian Group employees and visitors;
y Product classification to determine the applicable export compliance regulations. Classification
allows the Group to understand where and to whom products may be exported and whether a licence
or other permit is required;
y Basic training for all employees on export controls and specific training for staff in functions
responsible for international trade transactions and export controls;
y Requirement for an end-user declaration certifying that the buyer or end-user of goods/technology
complies with applicable export regulations.
PLANNING AND REPORTING RISKS
Planning and reporting risks are related to the adverse effects that irrelevant, untimely or incorrect
information might have on the Group’s strategic, operational and financial decisions. At present, in view
of the reliability and effectiveness of internal procedures for reporting and planning, the Group does
not consider these risks to be relevant.
In addition, the risks related to climate change are reproduced below from the Consolidated Non-
Financial Statement (Sustainability Report 2020), in which further details can be found.
Risks related to climate change
Risks related to the availability of water

Prysmian’s plants primarily consume water for industrial purposes, in particular for certain cooling
phases of their processes.
Prysmian has analysed water stress, defined as the ratio of demand for water to the amount available,
assuming a time horizon until 2040 and a scenario of high CO2 emissions, to assess the geographical
location of the Group’s plants exposed to the risk of reduced water availability.
Most of the plants for which a potential risk was identified adopt production processes that involve
water recirculation designed to reduce consumption. Risk mitigation measures also include further
improvement in the water recirculation percentage and/or the opportunity to install new recirculation
systems to optimise water consumption, where necessary or cost effective, thus resulting in a low
exposure to risk.
Prysmian Group
Risks associated with rising sea levels, involving potential damage to production facilities
The Group has been monitoring the risk of climate change since 2017 and, in particular of rising sea
levels, with the aim of assessing potential impacts on its production facilities.
The results confirm that in the time horizon considered, extending to 2080, in a scenario of high CO2
emissions, no direct impacts on the Group’s production facilities are expected. It should be noted,
however, that the rise in sea level could change with an increased exposure to the risk of coastal flooding
in the wake of severe weather conditions; this scenario, nonetheless, applies to a very limited number
of production facilities and will be monitored to anticipate developments and introduce additional
systems of control where necessary.
Risks related to greater severity of extreme weather events, involving potential damage to production
facilities
The Group constantly monitors the exposure of its production sites to weather events like storms, floods,
hailstorms, etc. and has also assessed its exposure with a time horizon running to 2035, in a scenario of
high CO2 emissions; this assessment has confirmed a low overall exposure to risks arising from changes
in summer and winter rainfall and from rising temperatures, with the exception of a very small number
of facilities in areas with a maximum expected temperature rise of +1.5°. A sensitivity analysis carried
out for the period 2020-2035, assuming an additional increase in the severity and frequency of extreme
weather events, also based on weather events that have impacted the Group’s assets in the last 20 years,
has confirmed a low exposure.
Risk of increased production costs due to increased prices for greenhouse gas emissions (Carbon Tax or
Emission Trading Scheme)
This risk relates to a potential increase in production costs due to a wider application of laws and
regulations on GHG emissions, both in the form of taxes (carbon tax) and as an emissions market
(Emission Trading Scheme). In order to mitigate the consequences, the Group constantly monitors the
evolution of laws and regulations on GHG emissions around the world, especially in countries where it
has production sites, and has drawn up a strategic plan with quantitative targets for the reduction of
GHG emissions, monitored using specific indicators.
In addition, in 2020 the Group initiated a process to set medium- and long-term targets for the reduction
of Scope 1 and 2 emissions and to quantify and manage Scope 3 emissions. These targets will be set on a
scientific basis in accordance with the Science-Based Target Initiative and taking into account expected
temperature rise scenarios.
Risk of non-compliance with environmental regulations and those concerning energy efficiency and
management of greenhouse gas emissions, including more stringent reporting requirements
Prysmian conducts its business in compliance with national and international environmental norms
and regulations, paying particular attention to the risk of failure to comply or to comply swiftly with
changes in regulations that may occur in its business context. In particular, the Group has analysed the
potential risk of non-compliance with any changes in local legislation transposing the Energy Efficiency
Directive 2012/27/EU (EED) on end-use energy efficiency. In order to manage this risk, several measures
have been deployed, including Energy Audit Plans at plants, energy efficiency projects, specific training
sessions, and adoption of specific indicators to monitor risk exposure and take prompt action to reduce
the risk below the tolerance thresholds.
In addition, in 2020 the Group began a process to set medium- and long-term targets for the reduction
of Scope 1 and 2 emissions and to quantify and manage Scope 3 emissions. These targets will be set on a
scientific basis in accordance with the Science-Based Target Initiative and taking into account expected
temperature rise scenarios.
Annual Report 2020

Research and Development

Sustainable Innovation
We ensured that R&D activities continued during the pandemic, confirming the strategic priority to innovate
in support of the energy transition process. In order to intensify exchange and discussion with the entire
value chain, we have invested in the creation of an ecosystem, a multi-stakeholder partnership.
Globally, Prysmian Group R&D consists of more than 900 professionals, working in 25 R&D centres
around the world. The R&D HQ, located near the Headquarters in Milan, coordinates the activities of
local R&D centres and promotes breakthrough innovations via projects that take a medium/long-term
approach. It includes laboratories where development of new cables and technologies can be performed
in full autonomy, being able to count on an experimental prototype room for production of cables and
compounds, on an electrical testing facility, equipped with the most advanced systems for EHV cables
testing, and a physical-chemical lab gifted with cutting-edge instruments dedicated to deeply analyze
cable and material properties.
Group R&D is responsible for the overall innovation strategy, aimed at making Prysmian a key player in the
value chain supporting Energy Transition, Digitalization and Sustainability. Local R&D centres participate
actively in new product development, the Design-to-Cost (DTC) program and the rationalisation of
product families. The Design to Cost program represents a tangible initial example of this model. Using
the best materials, adopting efficient processes and implementing innovative projects, this program
has achieved in 2020 cost savings totaling more than Euro 42 million, with more than 1,800 projects
completed at our manufacturing plants.
Since the end of February, the Covid-19 emergency has definitely impacted the daily activity of the
Group R&D and obliged the Company to adopt all necessary measures in order to safeguard the health of
the workforce. Nevertheless, R&D is considered a strategic priority for the Company and the continuity
of its activities was guaranteed at all levels, through the application of differentiated measures in
consideration of the typology of projects, their urgency and the impact on the business, especially in
terms of service continuity towards our customers.
2020 numbers
104 mln€ 5,600 25

ABOUT
invested Patents covering the Research Centres

in Research Centres* main innovations
203 50 900
Product families launched Collaborations with Professionals
during the year research centres and universities
* Euro 90 million in operating expenses and Euro 14 million in investment expenditure.
Prysmian Group
INNOVATION ECO-SYSTEM
When carrying out research, the Prysmian Group is aware that today – as evidenced by the UN SDGs –
it is essential to develop partnerships with all relevant stakeholders: from the academic world to
independent research centres, from suppliers and all supply chain counterparties to our customers. The
feedback they are able to provide is extremely important for the identification of those requirements
and aspects that need the greatest attention.
Accordingly, in order to work on innovation and carry out research, the Prysmian Group has created
an eco-system in close contact with customers and suppliers, as well as with the best universities in
the world, in order to focus the objectives when releasing synergies and collaborating in the areas of
innovation of greatest interest for their environmental impact and the evolution of the sector.
INNOVATION
ECO-SYSTEM
ACADEMIC CENTRES CUSTOMERS SUPPLIERS
Annual Report 2020

PARTNERSHIP
Prysmian and General Cable have established consolidated collaborative relations with more than
50 major universities and research centres around the world. These collaborations, strategic for the
Prysmian Group, support cutting-edge technological research and allow the adoption of state-of-the-
art innovations in all areas relevant to the wire and cable industry.
Among the numerous collaborations, those with the following bodies are particularly worthy of mention:
Politecnico di Milano Centro de Pesquisa e Desenvolvimento em

Telecomunicações (Brazil)
Università degli Studi di Milano, Genova, Salerno,
Università di Palermo and Padova (Italy) Universidade de São Paulo (Brazil)
National Electrical Energy Research & Application Universitat Politecnica de Catalunya (Spain)
Center (USA)
Shanghai TICW (China)
National Science Foundation High Voltage and
National Chemical Laboratory (India)
Temperature IUCRC (USA)
Infosys Advanced Engineering Laboratory (India)
Rice University (USA)
University of Applied Science Südwestfalen
Purdue University (USA)
(Germany)
University of Cincinnati (USA)
Fraunhofer Institute (Germany)
Massachusetts Institute of Technology (USA)
Università di Lille 1 (France)
Georgia Institute of Technology (USA)
Nokia Bell Labs USA and (France)
University of South Carolina (USA)
Università di Strasburgo (France)
University of Central Florida (USA)
Technical University of Eindhoven (Holland)
Electric Power Research Institute (USA)
Nano Carbon Enhanced Materials Consortium
Oak Ridge National Laboratory (USA) (United Kingdom)
University of Quebec at Chicoutimi (Canada) Norner (Norway)
The specific research carried out includes:

y In 2020 Carbon Hub was initiated as a consortium with Prysmian as one of the co-founding members.
The activities, led by Rice University, have covered the first loop of definition and selection of the
relevant topics for the call of proposal. The call has been issued on 5 main streams fitting with Carbon
Hub view and a total of 15 Proposals have been shortlisted for the final step. 3 projects have been
selected as winners to get founded by Carbon Hub and additional 5 are in a second bucket for possible
additional founding.
y Together with Politecnico di Milano and the University of Salerno, the Group has studied and defined
the crystalline structure of extruded PP blends;
y Together within the University of Padova, the Group has studied the behaviour of several flame -
retardant additives, which will provide a basis for developing a new line of LS0H compounds;
y Together with the University of Palermo, the Group is working on the advanced characterisation and
testing of high voltage cables and materials.
y In order to effectively support the future evolution of the electrification process, Prysmian has
started to study (in partnership with Universities and Research Centers) specific solutions for the
LV and MV distribution networks also in DC (Direct Current). The continuously increasing use of
DC in several steps of the supply chain of electrical energy will require dedicated connections with
improved performances.
Prysmian Group
y On the path towards the development of technologies for the mobility of the future, Prysmian
Group has continued and further expanded its support and cooperation with Hardt, a business leader
active in the development of a network of Hyperloop links in Europe. Following the approval of the
Hyperloop Development Program by the Dutch Ministries of Infrastructure & Water Management
and Economic Affairs & Climate in 2020, Prysmian has developed and supplied the first motor cable
for the electromagnetic levitation and propulsion system for the European Hyperloop Center, which
will be located in Groningen (NL).
SPEAKING PLATFORMS
In the context of sharing the direction of research and best practices, the Prysmian Group and its
managers have attended the most important international conferences held in a virtual manner
because of the protective measures against Covid-19, with a view of illustrating the active role played by
the Group in guiding the changes currently under way.
The Group attended the following conferences:

y FTTH Council Europe Conference, December 2020: workshop on the sustainability of fixed optical
networks, speaking slot on minicables;
y IWCS (International Wire & Cables Symposium), October 2020: attended with technical papers on
optical cables;
y CRU World Optical Fibre & Cable conference, October 2020: Optical Fibre and Cable Leadership Panel
(A. Bosch), Speech on the sustainability of optical fibre (O. Delwal);
y CRU Cable and Wire Conference, 3 July 2020: 3 speeches: keynote speech on Covid-19 impact on the
cable industry (S. Siripurapu);
y FT ETNO Tech and Politics Forum, December 2020: speech on the role of innovation, sustainability
and investments in building future-proof telecom networks;
y FT - Prysmian Group Digital Talks “Telecoms Role on the Recovery”: an event organized by Prysmian
and Financial Times about infrastructure, innovation and sustainability;
y Wind Europe Technology Workshop - Assessment & Analysis of Operating Wind Farms, 8 – 11 June
2020: “Digital tools and remote sensing solution to monitor the operations of electrical components”,
Opening session (speaker: R.Gil) along with G.Dickson, Wind Europe CEO;
y Recharge Digital Round Table, 24 June 2020: “Offshore Wind: engine of the Global Energy Transition”,
Prysmian as Sponsor & Panelist (R.Gil), together with Equinor, GE and Goldwind;
y Wind Europe Sofa Talk, 9 July 2020: “Tomorrow’s technology: away from the politics, what will the
wind industry look like in 20 years time?”, Prysmian as Panelist (R.Gil), together with Siemens Gamesa
and Ørsted;
y CIGRE Digital E-session, 24 August–3 September 2020: 21 contributions from engineers and
researchers, who authored or co-authored 6 papers on several topics;
y FINANCIAL TIMES DIGITAL DIALOGUE - The future of offshore wind, 19 November 2020: Digital
Dialogue/Panel discussion with H.Ozmen, Siemens & Ørsted;
y REUTERS EVENT - Energy transition European summit, 23 November 2020: Opening CEO Keynote Panel
”Is the Energy Transition Failing?”, Panelists: V. Battista & National Grid, Lundin Energy, Mainstream
Renewable Power, Enviva.
Annual Report 2020

R&D BY THE PRYSMIAN GROUP: FOCUS
Core areas
The main aspect guiding the strategy of the Prysmian Group is the need to concentrate on factors that
facilitate the development of cabled infrastructures for the transportation of power and information.
These, today, are essential elements in all current transformations of society, from the new electric
mobility to smart cities, from the expansion of 5G to the use of artificial intelligence to collect and
interpret data, and much more.
The ever more advanced search for EHV electricity transmission systems that can be buried, for longer
and more efficient cables that can be laid at greater depth, for optical fibre solutions that can contain
the largest number of cables in a miniaturised space and that can be used easily in the field, are therefore
core areas in which the majority of the investment made by the Group is dedicated.
ENABLING
ENERGY
TRANSITION &
DIGITALIZATION
PUSHING THE GOING DEEPER TRANSFORMING

BOUNDARIES OF UHVDC INTO THE SEA WITH THE OPTICAL FIBER
LONGER LENGTHS LANDSCAPE
Industry first to qualify 1st high depth submarine cable 180μm Fiber Nano Cables
both 525kV XLPE and P Laser with synthetic armor
solutions Super high density FlexRibbon
up to 6912f
Prysmian Group
Another three areas of innovation
Prysmian Electronics, Corporate Hangar and the new area known as Digital Ambition represent further
important areas of innovation. Prysmian Electronics has a vast range of sensors and monitoring
systems for increasing grid reliability and provide advanced tools for trouble shooting. Corporate
Hangar is an accelerator of innovation that seeks to generate start-ups every year in fields adjacent or
complementary to the core business of Prysmian. Lastly, the Digital Ambition area strives to optimise
business performance using digital solutions and develop new digital products that add value to the
growth of the Group.
ENABLING
ENERGY
TRANSITION &
DIGITALIZATION
DIGITIZATION OF ACCELERATING MONITORING THE

PROCESS AND PRODUCTS INNOVATION WITH GRIDS WITH PRYSMIAN
CORPORATE HANGAR ELECTRONICS
START-UPS
Smart cable solutions Alesea Pry-Cam

From Data to Insight Kablee Pry-Cam DTS
Augmented
user experience
Annual Report 2020

Digital Ambition
Prysmian Group’s “digital ambition”

is the guiding principle that will
enable the transition from leading
manufacturer of cabling systems
to solution provider for the energy
and telecom sectors. By optimizing
business performance through data
leveraging digital tools and solutions,
growth will be sustained by a combination of products and digital services, supporting collective
intelligence by digitalizing the company’s culture. This ambition is based on 3 pillars:
y efficiency through data, to reduce waste and improve performance;
y develop value-added digital products, by extracting and generating value from enterprise data;
y foster new digital practices in the organization, to empower the entire workforce.
In this framework, data are at the core of the Company “digitalization” process to keep a leadership
position in the current fast-changing market. In line with this approach, Prysmian Group has started a
program to deliver value from the data collected in the plants to prevent quality issues, reduce costs and
improve efficiency through new enhanced tools based on advanced statistical algorithms and machine
learning. Digital Innovation brings us closer to an holistically approached sustainable development,
addressing economic sustainability by amplifying outputs from the same amount of inputs, social
sustainability by bringing people closer from afar and environmental sustainability by allowing for the
most efficient use of resources.
Prysmian’s
Open Innovation
Infrastructure: Corporate Hangar
Prysmian Group established

Corporate Hangar, an accelerator
focused on supporting the Group in
its open innovation goals. Corporate
Hangar has incubated 3 start
ups: Alesea, a virtual assistant for
cable management; Kablee, a digital business development tool for cable makers that aims at
bringing data connectivity to rural areas and creates a marketplace for scrap cables; and Cultifutura,
that develops vertical farming solutions for offices. In 2020, over 5000 Alesea tracking devices
have been deployed around the world; Kablee’s e-commerce platform has supported the first
transactions; and Cultifutura has successfully tested its proprietary IoT system for vertical farming
technology.
While Corporate Hangar’s focus is to accelerate innovation in Prysmian Group, it is free to explore
innovation projects with other partners. Indeed, Corporate Hangar is moving in this direction
with a focus on sustainability. For example, together with the Italian paper mill association
Prysmian Group
and the Italian paper recycling association, Corporate Hangar studies ways to reduce the
paper recycling waste (pulper waste) and to separate and re-use the plastic found in the waste.
Similarly, Corporate Hangar studies how to improve the quality of the ashes generated by biomass
combustion processes and to transform those ashes into building materials to be used, for example,
in air filters.
Prysmian Electronics
In 2020 Prysmian Electronics focused

on the completion of the development
of a new monitoring system for low
voltage market. This is a system for
monitoring low voltage applications
based on Pry-Cam technology, which
uses a device to measure the main
parameters of a low voltage domestic
electrical installation. The device has been designed to help electricians make the necessary checks
during the acceptance testing of new electrical installations, or when carrying out maintenance or
periodic checks. This can be defined as a “prosumer” device, as it can be used by both professional
electricians and end consumers, with different functionalities depending on the skills of the user, but
with the same purpose: check the proper functioning of the electrical installation and, therefore, its
safety. The system is also focused on energy consumption and CO2 equivalent with the aim of create a
new energy awareness. The product is on the market since beginning of the 2021. Due to the Covid-19
the launch was delayed.
Innovation steering committee
In 2020 Prysmian Group created an Innovation Steering Committee bringing together R&D, Prysmian
Electronics, Corporate Hangar, and Digital Innovation, responsible for mapping the Group’s innovation
portfolio and reinforcing the relevance for corporate strategy.
The Innovation Steering Committee aims to achieve three things. Firstly, to position Prysmian as a
leader in the cables industry by continually improving its products and services. Secondly, to present an
overview of the innovation portfolio both inside the company and outside, consolidating each group’s
efforts in a way that makes it possible to communicate more effectively internally and to customers.
Thirdly, to create an innovation culture that promotes an entrepreneurial spirit. This process has already
started with an internal “innovation contest” where employees can propose new ideas and innovation
projects through cross-functional calls for ideas
Annual Report 2020

New products introduction (npi)
The introduction of new products (NP) is tracked using an internal tool created in order to support the
analysis and the economic results of new products vitality (Global Turnover/NP Turnover perimeter)
and to track the key projects (top NP projects) during the period of vitality of three years.
The main purpose of this tool is to increase awareness of the growing importance of innovation as a
success factor and of the development of new products as a driver for improving the performance of the
organization.
The consolidation of the New products process, together with GC Legacy, provides a new value in order
to sustain the business, overcome competitors and acquire new customers.
The number of NP families generated in 2020 and the mix of projects between Innovation and Product
Development allowed the achievement of an overall 2,4% vitality compared with 2,0% in Q3 2019.
Despite the Covid-19 crisis impact on all business segments, the overall NP results of the Group (PG +
GC) analysed in 2020 identified a greater resilience. The Group receives a strong contribution from the
869 new product families, introduced in the system, with an overall vitality of 13% in 3Q 2020, compared
to the 12,3% of 3Q 2019 led by Energy segment, Telecom Segment and Submarine cable for Project
Segment. New products Turnover generated 836 million through Q3 2020 with an increase compared to
Q3 2019 (800 million).
The R&D group generated a huge number of new products during 2020. Some statistics:
over over
70 600
New products in the New products in the product

Innovation category Development category
The global number of new products is driven by a huge increase in the turnover of the innovation
category. It is mainly due to the Business Submarine and North America region, with an overall growth
to 33.4% in the 3Q 2020 respect to 29.6% in the 3Q 2019.
The good results of the product development category were principally attributable to the Trade &
Installers and Power Distribution BU (65% of the entire category).
Prysmian Group
OVERALL NP RESULT 2020 – ACTIVE NEW PRODUCT FAMILIES BY REGION (1)
300
285
250
200
200
150
132
100
61
51
50
37 41
26
8 13 8
0
OCSEA
CEE
CHINA
Electronics
GB
LATAM
NA
NE
PPL
SR
Trade &
Installers
869 Total number of families
OVERALL NP RESULT 2020 – ACTIVE NEW PRODUCT FAMILIES BY BUSINESS UNIT (1)
250
215 213
200
150
115
100
76
64
52
50
30
23 20
6 8 8
4 4
2 2
0
AC-Network
Component
Automotive
Connectivity
Elevators
High Voltage
Industrial
MMS
Oil & Gas
Prysmian
Downhole
Technology
Prysmian
Electronics
Submarine
SURF
Telecom
ISWH
Trade &
Installer
Power
Distribution
(1) Certain families of new products are not included in the classification by Region or by Business Unit and, as a result, the total number of families “869” and the
total reported in the chart “842” do not coincide.
Annual Report 2020

INNOVATIVE MATERIALS
Prysmian Group invests in advanced research to push the boundaries of innovation in the context of
materials and surface science for the production of cables and accessories. The main results achieved
during 2020 are related to following areas:
y Halogen-free, flame retardant compounds;
y PP blends and XLPE for HV insulations;
y Thermal properties of polymers and compounds;
y Ultra-high molecular weight polyethylene (UHMWPE) fibres;
y Nanocarbon structures, such as carbon nanotubes (CNTs) and graphene.
MONITORING OF HAZARDOUS SUBSTANCES
The system implemented in France, based on the specially developed SAP transaction aimed to
report the presence of hazardous substances in every single cable item, has been extended in 2020
to Italy, Spain and Germany, as planned. The system tracks the presence of hazardous substances
based on Reach/Rohs regulations but is applicable also for monitoring other type of substances
requested by specific industry regulation (automotive, OEMs …) and allows the identification of
the cable items for which the hazardous substance exceeds the maximum allowed limit. Based on
the above mentioned system and within the wider activity related to the development of the Eco-
Label rating system, a special application has been developed by IT in order to allow the tracking
of dangerous substances in cables for every Prysmian Groups affiliate where the IT systems are
currently live.
CARBON FOOTPRINT (CFP)
The system implemented in CA (Common Analysis software platform), for assessment of CFP and
Potential recyclability of the cable items calculated in the proprietary cable design system, has been
extended to the new areas following the roll-out plan of CA / SAP1C. In particular, the extension has been
fully completed in France, Spain, Portugal and Chile. As far as the implementation of the CFP calculation
system in Cable Builder is concerned, the general data structure of CB has been conceived and built in
view of allowing the environmental parameters calculation for each cable, with same base criteria as
currently applied in CA.
In December 2020 an updated version of Ecoinvent database (Ecoinvent 3.6) has been loaded in CA,
related to the materials’ CFP factors (classified according to technical families in CA) and the energy mix
of each country where the factory is located. In the same time also the average machine power data
for each factory, used to calculate the CFP contribution of the production process, have been updated,
CLIMATE-RELATED
based on 2019 values.

INFORMATION
The system is providing a very helpful base of data for the environmental information of each cable,
as requested by the market. This aspect is evidenced especially by the DSO and TSO that are using this
information in order to rate their suppliers form the sustainability point of view.
ECO-LABEL FOR CABLES
In 2020 the activity for the conceptual definition of the internal Eco-Label rating for cables was
performed, collecting the inputs from various Company functions (R&D, HSE, Communications, BUs).
Prysmian Group
The concept of the Eco-Label rating was defined based on the identification of 6 criteria, under which
each single cable item will be judged and classified. The 6 criteria are the following:
· Carbon Footprint;
· Absence of extremely hazardous substances;
· Recyclability/Circularity;
· Recycling input rate (usage of recycled as raw materials);
· Environmental benefits (Low Carbon products + CPR);
· Cable transmission efficiency.
Carbon footprint and Recyclability are information already available for the vast majority of PG products
in CA. These parameters are calculated according to a simplified approach (cradle to gate and potential
recyclability) but effective in order to allow precise numerical values for each cable item. The concept
of absence of very high concern substances is strictly connected to the Reach / Rohs regulation
classification and is already mentioned in a specific chapter of this document. Recycling input rate is
considering the presence of recycled materials in the RMs or the metals used for the production of the
cable and is applied introducing a dedicated field in the SAP database of Raw Materials. Environmental
benefit is rated as combination of 2 characteristics: the fact that the cable is considered as Low Carbon
product, according to the CBI (Climate Bonds Initiative) taxonomy, and the cable performance in terms
of reaction to fire, especially related to the production of smokes and halogen gas release in case of
fires. The last criteria (transmission efficiency) is taken into account considering the electrical voltage
class for which the cable is rated, that is related to the ratio between the joule losses in the conductor
and the transmitted power.
The application of the 6 parameters, their combination and the valorization of the final on-off
condition that triggers the assignation of the Eco-Label class have been extensively tested via
simulation on the products portfolio of Italy, France and Spain. The launch in the market of the Eco-
Label cable rating will happen in Italy in early 2021, and will follow in France, Spain, The Netherlands
and Germany.
PROJECTS
• Sirocco HD microduct optical cables
In 2020 Prysmian continued its development of a new range of micro blowable cables with “Pico” tubes.
The new tube technology, combined with the use of 200µm optical fibres enables loose tubes to be
made smaller, resulting in significantly lower cable diameters and the introduction of Sirocco HD, a new
range of cables.
In September 2020, KPN (a Dutch landline and mobile telecommunications company) were the first
telecom company in Europe to start a field trial for a more sustainable installation of a fiber optic network
using the Sirocco HD cables. The pilot projects were developed in the Netherlands, in Buitenpost and
Nijmegen.
The use of Sirocco HD provides reductions in the volume of plastics used by approximately 50%. In
addition, more cable and tube could be supplied on a reel, which reduced cutting losses and the
number of wooden reels by 70%. For the 11,000 connections required in the trial this resulted in
approximately 6 full freight transports less than if the conventional cable had been used. The ducts
used were also made from 90% recycled plastic, providing overall a much more sustainable solution.
This field trial involving 11,000 households, saves an average of approximately 760 plastic carrier bags
per connection.
Annual Report 2020

Further advantages emerged during the installation, such as less excavation works were required at the
network concentration points, which led to less soil that had to be removed and processed.
Also due to the smaller and more flexible cables and ducts, the often-full cable routes are less stressed
making the solution easier to install.
• Prysun range solar cables
Prysmian Group’s solar PV cable portfolio consists of a full range of quality solar photovoltaic products,
renowned in the field for their easy installation, reliability and longevity attributes and complying with
all major international standards. In the last 2 years Prysmian’s PV portfolio has been optimized as a result
CLIMATE-RELATED
of the synergies of PG &GC R&D teams all over the world, with a global technology and know-how sharing
INFORMATION
to find the best solutions with or combined capabilities. Thanks to Prysmian’s global presence, PV cables
are manufactured in different locations in four different continents to serve both our global and our
local customers and business partners and to reduce the environmental impact of the transportation of
the cables between different continents and regions.
• High depth submarine cables

The Crete Peloponnese project met significant technological challenges, far exceeding what has
been achieved so far in similar international projects. These are mainly the length and the maximum
installation depth. Prysmian decided to face this challenging target developing an innovative cable
solution with a synthetic armour together with all the necessary improvements on accessories and
installation methodologies for a safe and reliable deployment of the link. The link has been installed
successfully in 2020 and represents most powerful 3 core design cable transporting 200 MW, installed
at the maximum depth of 1000 m.
This project must be considered as a starting point of a new technological platform that will allow to
exceed many technical barriers, up to now considered not feasible, for an efficient and effective creation
of a grid able to optimize the usage of renewable energy sources.
• EHVDC solutions for german corridors
In the field of the EHV application for DC current, Prysmian pursued the development and industrialization
program of 525 kV extruded cables systems, after the successful completion of the pre-qualification
tests at 525 kV obtained in 2019 for the two qualified solutions: XLPE and P-Laser.
In the case of XLPE, other two prototypes were produced in two different Prysmian Factories and are
now under PQ test according Cigre TB 496.
In the case of P-Laser, the Prysmian proprietary technology to produce thermoplastic recyclables
cables, other pilot production runs were performed in Gron Plant (France) aimed at industrializing the
technology and increasing reliability of product performance.
Prysmian Group
• EV charging cables
As the worldwide leader of cable manufacturing, Prysmian has dedicated R&D efforts to this sector for
years. In US, we have consolidated experience on offering for the North American market starting from
the General cable era. Instead in Europe and for international market, we have successfully developed
and certified the products starting from 2 years ago.
Nowadays, Prysmian can offer a wide range of products for AC and DC charging to many well-known
international customers. We are also part of CharIN, the association that seeks to establish and accelerate
the development of standards for charging systems, thus contributing directly to the evolution of the
e-mobility eco-system.
PROTECTION OF INTELLECTUAL PROPERTY
Protecting the portfolio of patents and trademarks is a key part of the Group’s business, particularly in
relation to its strategy of growth in high-tech market segments. The Group filed new patent applications
during the year, especially in segments with higher added value and in support of the significant
investments made in recent years. Nevertheless, the Prysmian Group has a smaller number of patents
and patent applications under examination globally at 31 December 2020 than in the prior year.
This is because fewer patents were filed than those that expired or were abandoned because no longer
of interest. In order to contain costs in a complex period such as that linked to the Covid-19 pandemic,
the Group decided to review the patents portfolio more closely and abandon patents that would be
difficult, if not impossible, to enforce for market protection purposes. The number of inventions
covered by at least one patent or patent application has decreased slightly in both the Energy and
Telecom sectors.
There was a slight fall in the number of inventions covered by at least one patent or patent application in
the Telecom sector, which has historically owned a larger number of inventions than the Energy sector,
because the portfolio of Telecom patents comprises a considerable number of old patents that resulted
from the earlier rush to patent optical fibre technologies.
A total of 29 patent applications were filed during 2020, of which 11 relating to the Energy sector and 18
to the Telecom sector. In addition to the effects of the Covid-19 pandemic, the reduction in the number
of new filings was also partly a natural effect of the merger of Prysmian Group and General Cable.
in 2020 of which of which
29 11 18
patent relating to the relating to the
applications Energy sector Telecom sector
Annual Report 2020

The number of patents granted during the year was essentially the same as in the prior year, with an
increase in those granted by the US patents office. In view of the different examination procedures
followed in the various countries/regions and their timing, no significant conclusions can be drawn from
the above information.
It is important to note that Group patents have been used in a number of counterfeiting cases filed in
Italy, Germany and the United Kingdom during 2020. These legal initiatives are integral to a broader
strategy adopted by the Group to safeguard the investment made in research and development.
Prysmian Group owns a significant number of trademarks deriving from the pre-existing Prysmian
Group and the pre-existing General Cable group. This portfolio has been and is currently being revised
and optimised, in line with the brand protection policies adopted by the Prysmian Group following the
merger.
As a consequence, the total number of trademarks decreased during 2020; however, given the
greater internationalization of the Group, a number of established trademarks have been registered
in additional countries. The trademarks of the Prysmian Group protect the main brands and the most
important products, typically involving specific characteristics or production processes that enable
them to be identified in the marketplace and guarantee their uniqueness.
IP HIGHLIGHTS FY 2020 FY 2019 (1)

Patents and patent applications filed 5,581 5,881
Inventions covered by patents and patent applications filed 806 857
Inventions linked to the Energy Products and Projects segment 289 317
Inventions linked to the Telecom segment 517 540
Patent applications filed during the year 29 41
Patent applications in the Energy Products and Projects segment 11 17
Patent applications in the Telecom segment 18 24
Patents granted during the year 194 225
Patents granted by the European Patent Office (EPO) 52 45
Patents granted in the USA 40 50
Number of trademarks owned 877 927
Number of registrations 5,068 4,769
(1) The data disclosed in the 2019 NFS about the patents granted during that year and the patents granted in the USA has been restated. The change reflects a
communication about the grant of patents received subsequent to the preparation of that NFS.
Prysmian Group
Incentive Plans
Governance). The Shareholders’ Meeting authorised a bonus capital increase, as proposed by the
Board of Directors, to be reserved for Prysmian Group employees in execution of the above plan. This
capital increase can reach a maximum nominal amount of Euro 1,100,000 through transfer, pursuant
to art. 2349 of the Italian Civil Code, of a corresponding amount from profits or earnings reserves, with
the issue of no more than 11,000,000 ordinary shares of nominal value Euro 0.10 each. At the same time,
the shareholders’ resolution of 12 April 2018 relating to a similar capital increase was revoked, amending
article 6 of the By-laws. Recognition of the effects of the long-term incentive plan in the year ended
31 December 2020 has resulted in recording personnel costs of Euro 29 million in a specific equity reserve.
Annual Report 2020

Other Information
Related party transactions
Related party transactions do not qualify as either atypical or unusual but form part of the normal course
of business by Group companies. Such transactions take place under market terms and conditions,
according to the type of goods and services provided.
The Group has published, including on its website, the procedures adopted to ensure the transparency
and substantive and procedural fairness of related party transactions.
Information about related party transactions, including that required by the Consob Communication
dated 28 July 2006, is presented in Note 33 to the Consolidated Financial Statements at 31 December
2020.
Atypical and/or unusual transactions
In accordance with the disclosures required by Consob Communication DEM/6064293 dated 28 July
2006, it is reported that no atypical and/or unusual transactions took place during 2020.
Secondary offices and basic corporate information
The list of secondary offices and basic corporate information about the legal entities making up the
Group can be found in Appendix A of the Explanatory Notes to the Consolidated Financial Statements.
Financial risk management
The management of financial risks is discussed in the Explanatory Notes to the Consolidated Financial
Statements (Financial risk management).
Treasury shares
Information about treasury shares can be found in Note 11 to the Consolidated Financial Statements at
31 December 2020.
Prysmian Group
Business Outlook
The year 2020 was marked by the spread of the Covid-19 pandemic, which had unprecedented negative
impacts on the global economic macroscenario. In response to this health emergency, most countries
took containment measures such as restrictions on movement, quarantines and other public emergency
initiatives, with severe repercussions on global economic activity and the entire manufacturing system.
According to the International Monetary Fund estimates updated at January 2021, the global growth
contraction for 2020 is estimated at 3.5% compared to the 3.3% growth projected in the pre-pandemic
forecast. In the Euro area, the contraction of economy in 2020 is estimated at around 7.2%, compared to
-3.4% for the United States. Estimates call for China being the only country among the big economies to
end the year on a positive territory (+2.3%), albeit at a level far below the pre-Covid projections (+6.1%).
Within this scenario, many countries are preparing national economic revitalisation plans, such as Next
Generation EU in Europe, which amounts to Euro 750 billion in support of infrastructure development
and digitalisation projects. A $1,900 billion aid plan is also being formulated in the United States to
stimulate the economy according to the Biden administration’s programme.
In addition to the positive effects of the beginning of vaccinations in many countries, the positive
impacts of these revitalisation plans on economic growth are reflected in the growth expectations for
2021 prepared by the IMF. According to these estimates, the global economy is expected to grow by
5.5% in 2021 and by 4.2% in 2022. The growth estimate is 5.1% in the United States, which is expected
to return to pre-2019 levels as early as the second half of 2021, whereas the Eurozone and the United
Kingdom are predicted to reach this milestone in 2022. The Chinese economy is expected to pick up
pace, with estimated growth of 8.1% in 2021 and of 5.6% in 2022.
The extraordinary effects of the Covid-19 pandemic impacted also Prysmian Group’s results, firstly in
China, where production and market demand were severely affected throughout the first quarter
of 2020, to then start to recover as of the second quarter. As of mid-March, the impact spread also to
other geographical areas (Europe, Middle East, North and South America), particularly in the businesses
related to the construction sector (e.g., Trade & Installers) and characterised by significant installation
activities. In the second half of the year, business activities recovered gradually in most countries,
while remaining at levels far below those of the previous year. This recovery, promptly accompanied by
attentive cost management, an extremely flexible supply chain and a highly focused level of customer
service, enabled management to protect the Group’s performance and limit the impact of the pandemic
on the Group’s margins. The performance achieved appears even more significant in the light of the
negative impact of exchange rates on the Group’s EBITDA of Euro 32 million.
Prysmian Group’s long-term growth drivers, mainly related to the energy transition to renewable
sources, the upgrade of telecommunication networks (digitalisation) and the electrification process,
remain unchanged. The Group may also rely on broad diversification by business and geographical
areas, a solid financial structure, an efficient, flexible supply chain and a lean organisation — all factors
enabling the Group to face the emergency with confidence.
2021 started with encouraging signs in some segments and geographical areas (Energy business in
Europe and LatAm, optical cables in North America and Europe), despite the persisting high level of
uncertainty at global level. Within this macroeconomic scenario, Prysmian Group expects that demand
in the construction and industrial cable businesses will recover in 2021 compared to the previous year.
In the Submarine Cables and Systems business, the Group is committed to confirming its leadership in
Annual Report 2020

a market expected to grow in the coming years, thanks to the development of the offshore wind farms
and interconnections required for fostering renewable energy in support of the energy transition. With
regard to this segment, the Group expects an improvement compared to the previous year’s results,
with a more marked growth starting in 2022, when also the German Corridors projects will reach a more
advanced stage of execution. In the Telecom segment, the Group forecasts an increase in volumes of
the optical cable business in North America and Europe and a persisting price pressure, particularly
in Europe. According to estimates, this could generate a decrease in margins, despite the action plan
implemented to contain cost and improve production efficiency.
In light of the foregoing, the Group expects to achieve an Adjusted EBITDA for FY 2021 in the range of
Euro 870-940 million. The Group also predicts to generate cash flows of approximately Euro 300 million
± 20% (FCF before acquisitions & disposals) in 2021. These projections are based on the absence of
significant changes in the evolution of the health emergency and of possible further discontinuities and
slowdowns in the global economic activities. In addition, these forecasts are based on the Company’s
current business scope and do not include antitrust-related impacts on cash flow. In 2021 as well, the
translation effect resulting from the conversion of the subsidiaries’ results into the reporting currency
used in the consolidated accounts is expected to generate a negative impact on the Group’s operating
income for approximately Euro 20-25 million.
The (expected) cumulative amount of the negative impact of exchange rates in the two-year period
2020-2021 is estimated at around Euro 55 million.
Prysmian Group
Certification pursuant to art. 262

of the italian stock exchange market
regulations
Suitable measures have been taken to ensure compliance with art. 15 of the Regulations issued by
Consob under Resolution no. 20249 of 28 December 2017, concerning conditions for the listing of shares
of parent companies that control companies incorporated under and regulated by the law of countries
other than EU member states and which are material to the Consolidated Financial Statements, and
whose conditions apply to the Company.
Milan, 10 March 2021
ON BEHALF OF THE BOARD OF DIRECTORS
THE CHAIRMAN
Claudio De Conto
Annual Report 2020

Group Annual
Bilancio Report
Consolidato 129
02_CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Statement of Financial
position
of which of which
(Euro/million) Note 31.12.2020 related 31.12.2019 related
parties parties
Non-current assets
Property, plant and equipment 1 2,648 2,804
Goodwill 2 1,508 1,590
Other intangible assets 2 489 564
Equity-accounted investments 3 312 312 314 314
Other investments at fair value through other 4 13 13
comprehensive income
Financial assets at amortised cost 4 4
Derivatives 8 44 7
Deferred tax assets 16 207 170
Other receivables 5 30 38
Total non-current assets 5,255 5,504
Current assets
Inventories 6 1,531 1,523
Trade receivables 5 1,374 3 1,475 7
Other receivables 5 492 3 816 3
Financial assets at fair value through profit or loss 7 20 27
Derivatives 8 82 33
Financial assets at fair value through other comprehensive 4 11 11
income
Cash and cash equivalents 9 1,163 1,070
Total current assets 4,673 4,955
Assets held for sale 10 2 27
Total assets 9,930 10,486
Equity
Share capital 11 27 27
Reserves 11 2,054 2,096
Group share of net profit/(loss) 11 178 292
Equity attributable to the Group 2,259 2,415
Equity attributable to non-controlling interests 164 187
Total equity 2,423 2,602
Non-current liabilities
Borrowings from banks and other lenders 12 3,045 3,032
Employee benefit obligations 15 506 494
Provisions for risks and charges 14 39 60
Deferred tax liabilities 16 195 213
Derivatives 8 13 18
Other payables 13 6 11
Total non-current liabilities 3,804 3,828
Current liabilities
Borrowings from banks and other lenders 12 127 212
Provisions for risks and charges 14 552 9 717 4
Derivatives 8 46 35
Trade payables 13 1,958 2 2,062 5
Other payables 13 995 5 969 4
Current tax payables 25 51
Total current liabilities 3,703 4,046
Liabilities held for sale 10 - 10
Total liabilities 7,507 7,884
Total equity and liabilities 9,930 10,486
Annual Report 2020

Consolidated Income Statement

of which of which
(Euro/million) Note 2020 related 2019 related
parties parties
Sales 17 10,016 25 11,519 35
Change in inventories of finished goods and work in 18 69 (16)
progress
Other income 19 99 5 96 3
Total sales and income 10,184 11,599
Raw materials, consumables and supplies 20 (6,464) (3) (7,218) (8)
Fair value change in metal derivatives (4) 15
Personnel costs 21 (1,409) (19) (1,539) (11)
Amortisation, depreciation, impairment and impairment 22 (393) (354)
reversals
Other expenses 23 (1,579) (8) (1,958) (5)
Share of net profit/(loss) of equity-accounted companies 24 18 18 24 24
Operating income 353 569
Finance costs 25 (569) (494)
Finance income 26 468 369
Profit/(loss) before taxes 252 444
Taxes 27 (78) (148)
Net profit/(loss) 174 296
Of which:
– attributable to non-controlling interests (4) 4
– Group share 178 292
Basic earnings/(loss) per share (in Euro) 28 0.68 1.11
Diluted earnings/(loss) per share (in Euro) 28 0.68 1.11
Prysmian Group
Other Comprehensive Income

(Euro/million) 2020 2019
Net profit/(loss) 174 296
Other comprehensive income:
A) Change in cash flow hedge reserve: 55 1
– Profit/(loss) for the year 78 -
– Taxes (23) 1
B) Change in currency translation reserve (358) 67
C) Financial instruments at fair value: - 1
– Profit/(loss) for the year - 1
D) Actuarial gains/(losses) on employee benefits (*)
(19) (22)
– Profit/(loss) for the year (28) (33)
– Taxes 9 11
Total other comprehensive income (A + B + C + D): (322) 47
Total comprehensive income/(loss) (148) 343
Of which:
– attributable to non-controlling interests (20) 8
– Group share (128) 335
(*) Components of comprehensive income that will not be reclassified to profit or loss in subsequent periods.
Annual Report 2020

Consolidated Statement of Changes in

Equity
Equity
Cash flow Currency Group share Equity attributable
Other
(Euro/million) Share capital hedge translation of net attributable to non- Total
reserves
reserve reserve profit/(loss) to the Group controlling
interests
Balance at 31 December 27 (14) (313) 2,428 58 2,186 188 2,374
2018
Allocation of prior year net - - - 58 (58) - - -
result
Fair value - stock options - - - (1) - (1) - (1)
Dividend distribution - - - (113) - (113) (6) (119)
Acquisition of non- - - - (2) - (2) (5) (7)
controlling interests
Capital paid in by non- - - - - - - 2 2
Effect of hyperinflation - - - 10 - 10 - 10
Total comprehensive - - 64 (21) 292 335 8 343
income/(loss)
2019
Equity
Cash flow Currency Group share Equity attributable
Other
(Euro/million) Share capital hedge translation of net attributable to non- Total
reserves
reserve reserve profit/(loss) to the Group controlling
interests
2019
Allocation of prior year net - - - 292 (292) - - -
result
Fair value - stock options - - - 30 - 30 1 31
Dividend distribution - - - (66) - (66) (4) (70)
Other changes in equity - - - 1 - 1 - 1
Capital paid in by non- - - - - - - - -
Effect of hyperinflation - - - 7 - 7 - 7
Total comprehensive - 54 (341) (19) 178 (128) (20) (148)
income/(loss)
Balance at 31 December 27 40 (590) 2,604 178 2,259 164 2,423
2020
Prysmian Group
Consolidated Statement of Cash Flows

of which of which
(Euro/million) 2020 related 2019 related
parties parties
Amortisation, depreciation and impairment 393 354
Net gains on disposal of property, plant and equipment (20) (1)
Share of net profit/(loss) of equity-accounted companies (18) (18) (24) (24)
Dividends received from equity-accounted companies 8 8 9 9
Share-based payments 31 (1)
Fair value change in metal derivatives 4 (15)
Net finance costs 101 125
Changes in inventories (101) (7)
Changes in trade receivables/payables 13 1 14 (4)
Changes in other receivables/payables 347 4 60 3
Change in employee benefit obligations (13) (15)
Change in provisions for risks and other movements (150) (57)
Net income taxes paid (142) (111)
A. Cash flow from operating activities 705 775
Cash flow from acquisitions and/or disposals (5) (7)
Investments in property, plant and equipment (240) (240)
Disposals of property, plant and equipment and assets held 18 20
for sale
Investments in intangible assets (22) (28)
Investments in financial assets at fair value through profit or (3) (6)
loss
Disposals of financial assets at fair value through profit or loss 2 1
B. Cash flow from investing activities (250) (260)
Capital contributions and other changes in equity 1 2
Dividend distribution (70) (119)
Proceeds of new loans - 350
Repayments of loans (117) (517)
Changes in other net financial receivables/payables (53) (70)
Finance costs paid (1) (524) (418)
Finance income received (2) 438 324
C. Cash flow from financing activities (325) (448)
D. Exchange (losses) gains on cash and cash equivalents (36) 2
E. Net increase/(decrease) in cash and cash equivalents 94 69
(A + B + C + D)
F. Cash and cash equivalents at the beginning of the year 1,070 1,001
G. Cash and cash equivalents at the end of the year (E + F) 1,164 1,070
Cash and cash equivalents presented in consolidated 1,163 1,070
statement of financial position
Cash and cash equivalents presented in assets held for sale 1 -
(1) Finance costs paid of Euro 524 million include interest payments of Euro 55 million in 2020 (Euro 62 million in 2019).
(2) Finance income received of Euro 438 million includes interest income of Euro 6 million in 2020 (Euro 5 million in 2019).
Annual Report 2020

Group Annual
Bilancio Report
Consolidato 135
03_EXPLANATORY NOTES
A. General Information

Prysmian S.p.A. (“the Company”) is a company incorporated and domiciled in Italy and organised under
the laws of the Republic of Italy. The Company has its registered office in Via Chiese 6, Milan (Italy).
Prysmian S.p.A. was floated on the Italian Stock Exchange on 3 May 2007 and since September 2007
has been included in the FTSE MIB index, comprising the top 40 Italian companies by capitalisation and
stock liquidity.
The Company and its subsidiaries (together “the Group” or “Prysmian Group”) produce cables and
systems and related accessories for the energy and telecommunications industries, and distribute and
sell them around the globe.
The consolidated financial statements contained herein were approved by the Board of Directors on 10
March 2021.
A.1 SIGNIFICANT EVENTS IN 2020

Prysmian Group’s leadership team invests in the Company as a sign of its commitment and
confidence in recovery from the pandemic-related crisis and in the Company’s long-term
growth prospects
On 3 April 2020, Prysmian Group’s leadership team, consisting of CEO Valerio Battista and his 20
worldwide direct reports (the “Group Leadership Team”), informed the Group that it had accepted the
CEO’s proposal to invest in Prysmian S.p.A. shares 50% of the net incentive earned by each based on the
positive performance in financial year 2019, whose results were in line with company targets. On 1 June
2020, Prysmian Group announced the finalisation of agreements between the Group Leadership Team
and the financial intermediary engaged to execute the above share investment scheme. Under the
terms of these agreements, the Group Leadership Team engaged a financial intermediary to purchase
the Company’s shares on the market for a total of approximately Euro 1,500,000, corresponding to
approximately 50% of the net incentive earned by each manager in respect of financial year 2019 (the
“2019 MBO”).
The financial intermediary made the share purchases between the first and fifth business day after the
date on which the funds for the purchases were made available to it, namely 1 June 2020. The instructions
given by each of the Group Leadership Team’s managers to the financial intermediary included the
authorisation to lock up the shares purchased until the end of 2022.
Governance). The Shareholders’ Meeting authorised a bonus capital increase, as proposed by the
Board of Directors, to be reserved for Prysmian Group employees in execution of the above plan. This
capital increase can reach a maximum nominal amount of Euro 1,100,000 through transfer, pursuant
to art. 2349 of the Italian Civil Code, of a corresponding amount from profits or earnings reserves, with
Annual Report 2020

the issue of no more than 11,000,000 ordinary shares of nominal value Euro 0.10 each. At the same
time, the shareholders’ resolution of 12 April 2018 relating to a similar capital increase was revoked,
amending article 6 of the By-laws. Recognition of the effects of the long-term incentive plan in the
year ended 31 December 2020 has resulted in recording personnel costs of Euro 29 million in a specific
equity reserve.
Termination of the contract relating to Carlisle Companies Incorporated’s offer to acquire the
business of Draka Fileca SAS
On 22 October 2019, the Group had announced the receipt of an offer of Euro 73 million from Carlisle
Companies Incorporated to acquire the business of Draka Fileca SAS (directly or through one of the
Carlisle subsidiaries). On 19 June 2020, Prysmian Group announced that the contract relating to this
transaction had been terminated, as the required regulatory approvals had not been obtained by the
agreed deadline.
Prysmian Group announces the acquisition of EHC Global, a leading manufacturer of

strategic components and provider of integrated solutions for the vertical transportation
industry
Prysmian Group announced on 22 July 2020 that it had signed an agreement to acquire 100% of EHC
Global in a transaction valued at CAD 130 million. The acquisition was completed on 8 January 2021,
more details of which can be found in the note on “Events after the reporting period”.
New industrial projects and initiatives
Contract for a broadband TLC cable project in Mexico
On 15 January 2020, the Group announced it had won a contract worth USD 38 million from Comision
Federal de Electricitad (CFE), a government-owned company, for a cable project in Mexico called
“Proyecto de Conectividad Fibra Óptica Red Eléctrica Inteligente REI”. This is the largest ever project
in terms of quantity of TLC cables commissioned by a Mexican government and will connect remote
regions of the country with high-speed broadband. Under the terms of the contract, Prysmian will
oversee the engineering, supply and installation of at least 9,800 km of optical ground wires (OPGW)
and 5,100 km of all-dielectric self-supporting (ADSS) cables. The OPGW will be produced at the Group’s
plant in Vilanova i la Geltrù, Spain, while the ADSS cables will be manufactured in Durango, Mexico, once
again demonstrating the Group’s ability to tap into its global organisation and the strong teamwork
between its LATAM, HQ and OPGW operations.
Contract for Libra Mero project
On 23 January 2020, the Group announced it had won a contract from Libra, a consortium of leading
international oil & gas operators, to supply Steel Tube Umbilicals for installation in the Mero offshore
oilfield. The contract refers to Mero 1, an ultra-deep-water drilling field, which will consist of 17 wells
and one FPSO vessel, situated approximately 180 km off Rio de Janeiro in the pre-salt Santos basin at
a depth of some 2,000 metres below sea level. Oil production is due to commence in 2021. The Mero 1
project is a milestone in the technological development of the Oil & Gas industry in Brazil, being the first
in the region to use Steel Tube Umbilicals.
Prysmian Group
Contract for the construction of an offshore wind farm in France
On 4 March 2020, the Group announced it had won a contract worth approximately Euro 150 million
from Réseau de Transport d’Électricité (RTE) for the construction of two submarine and onshore cable
systems to connect the offshore wind farm located between the islands of Yeu and Noirmoutier to the
French mainland power grid. The submarine cables will be manufactured at Prysmian Group’s centres
of excellence in Pikkala (Finland) and Arco Felice (Italy), while the onshore cables will be produced in
Gron (France). Installation will be carried out by the Cable Enterprise, one of the Group’s state-of-the-art
cable-laying vessels. Delivery and commissioning are scheduled for 2023.
Contract for two new projects with Terna for development of the Italian power transmission
grid
On 10 March 2020, following a public tender, the Group signed two major new cable solution agreements
with Terna, through its subsidiary Terna Rete Italia S.p.A.. The first agreement, worth Euro 40 million
with an option for a further Euro 10 million, refers to an HVAC cable system covering the Italian section of
the Italy-Austria cross-border interconnection between the Glorenza and the Nauders substations, due
to start operating by 2022. The second agreement, worth Euro 40 million with an option for a further
Euro 40 million and relating to the on-site supply of 220 kV HVAC cable systems, is a framework contract,
valid until 2022, intended to serve the needs of power transmission systems in Southern Italy. Both
contracts include design and installation engineering, the supply of cables - manufactured at the plant
in Gron, France, the Group’s excellence centre for high and extra-high voltage cables - and accessories,
as well as civil engineering works and other possible optional supplies.
SuedOstLink project for the first of the three German Corridors
On 5 May 2020, Prysmian Group announced that TenneT TSO GmbH, operator of the Dutch-German
grid, had awarded it a contract for the SuedOstLink project in Germany, one of the world’s longest HVDC
underground transmission lines. The total value awarded to the Group for this contract, according to the
options, is approximately Euro 500 million. Prysmian will be responsible for the design, manufacture,
supply, installation, splicing, testing and commissioning of a 2GW underground transmission cable
running through the TenneT-operated section of this first German Corridor. The project is expected to
be completed in early 2026.
A-Nord project for the second of the three German Corridors
On 11 May 2020, Prysmian Group announced that Amprion GmbH, a German grid operator, had awarded
it a contract for the A-Nord underground cable, part of the German “Corridor A” 2GW power transmission
project. Under this contract, worth over Euro 500 million for the Group, Prysmian will be responsible
for the design, manufacture, supply, installation, jointing, testing and commissioning of a 1GW
underground transmission cable covering the entire northern route of the German Corridors. Work on
the HVDC system is scheduled to begin by 2023.
Contract with Vattenfall for the first zero-subsidy offshore wind farm
On 20 May 2020, Prysmian Group finalised a contract for a project awarded by Vattenfall, a leading
European energy company, to supply the submarine inter-array cable systems for the Hollandse Kust
Annual Report 2020

Zuid III and IV offshore wind farm in The Netherlands. The cables, which will be manufactured at the
Prysmian centre of excellence in Nordenham (Germany), are due to be delivered in 2022.
Crete-Attica submarine interconnection project in Greece
On 26 May 2020, Prysmian Group was awarded a contract worth approximately Euro 270 million by
Ariadne Interconnection, a wholly-owned subsidiary of IPTO, Greece’s transmission system operator,
for submarine interconnections between the island of Crete and the Greek mainland (Attica region).
The first lot, worth Euro 250 million, involves the design, supply, installation and commissioning of an
end-to-end HVDC cable along a 335 km route between the island of Crete and the Attica region. The
second lot, worth Euro 20 million, involves the design, supply, installation and commissioning of two
submarine telecommunication links for a total length of 670 km between the island of Crete and the
Attica region. Prysmian will install the submarine cables using one of its own cable-lay vessels. Delivery
and commissioning for both projects are scheduled over the period 2020-2023.
Contract for the Saint-Brieuc wind farm in France
On 27 May 2020, Ailes Marines, in charge of the development, construction, installation and operation
of an offshore wind farm in the bay of Saint-Brieuc, awarded Prysmian Group a contract worth about
Euro 80 million to supply the submarine inter-array cable systems for the Saint-Brieuc offshore wind
farm in France. Delivery and commissioning are scheduled by the end of 2022.
SuedLink project for the third and longest of the three German Corridors
On 29 June 2020, Prysmian Group was awarded contracts for the SuedLink Corridor in Germany, the
longest ever underground cable project, by the German transmission system operators TransnetBW
GmbH and TenneT. Under this project, worth a total of approximately Euro 800 million for the Group,
Prysmian will design, manufacture, supply, lay, joint, test and commission a 2GW underground cable
system linking the north of Germany to its regions in the south. The project is due to be completed in
2026.
Prysmian launches the first fibre-optic network with 90% recycled plastic
On 15 September 2020, the Group announced that it will be working with Dutch operator KPN on a
pilot project to install a fibre-optic network containing 90% recycled plastic. KPN will be the first
telecommunications firm in Europe to use the new Prysmian cable concept to install connections
for its customers. Pilot projects will take place in Buitenpost (Friesland) and Nijmegen, both in the
Netherlands. Further benefits are expected to emerge during installation, such as a reduced need for
excavation at network concentration sites, leading to less soil for removal and disposal. In addition,
approximately 50% fewer raw materials (plastic or PE) are required for the production of the new
cables and tubes than for traditional cabling. On top of these direct savings, the new concept offers
an indirect environmental benefit since over 90% of the tubes are manufactured using high-quality
recycled PE. These savings translate into an immediate reduction of the CO2 emissions and ultimately
of end-of-life waste. Lastly, Prysmian expects to achieve a further reduction in CO2 emissions through
savings in logistics, storage, and packaging materials, which will be evaluated in a real-life test for
KPN.
Prysmian Group
Preferred bidder agreement signed for Sofia offshore wind farm project worth over Euro 200
million
On 17 November 2020, the Group announced it had signed a preferred bidder agreement worth over
Euro 200 million with RWE Renewables Sofia Offshore Wind Farm, the world’s second largest offshore
wind farm developer, for the construction of a turnkey submarine and land high voltage cable system to
connect the Sofia offshore wind farm to the mainland. The 1.4 GW Sofia offshore wind farm is the largest
offshore wind project currently under development, and, once fully operational in 2025, it will be able
to generate enough power to supply over 1.2 million UK homes with renewable electricity.
World-first installation of a 180µm optical fibre cable in Germany
On 17 December 2020, the Group announced it had completed its first project using its new Sirocco
Extreme optical fibre cable for Stadtwerke Landau a.d. Isar, a utility provider. This world-first installation
of a 180µm optical fibre cable will enable a large number of households and businesses in Landau to
benefit from high-performance FTTx and 5G networks. Sirocco Extreme is the first 180µm optical fibre
cable available on the market. It enables faster, cheaper and more sustainable installations and is fully
compatible for splicing with any standard fibre. Home office, online schooling and increased levels of
video streaming during the Covid-19 pandemic have led to a significant rise in internet data traffic and
hence greater demand for secure, high-performance optical fibre networks that can reduce the risk of
future data bottlenecks.
Other significant events
Ravin Cables Limited
In January 2010, Prysmian Group acquired a 51% interest in the Indian company Ravin Cables Limited (the
“Company”), with the remaining 49% held by other shareholders directly or indirectly associated with
the Karia family (the “Local Shareholders”). Under the agreements signed with the Local Shareholders,
after a limited transition period, management of the Company would be transferred to a Chief Executive
Officer appointed by Prysmian. However, this failed to occur and, in breach of the agreements, the
Company’s management remained in the hands of the Local Shareholders and their representatives.
Consequently, having now lost control, Prysmian Group ceased to consolidate the Company and its
subsidiary Power Plus Cable Co. LLC. with effect from 1 April 2012. In February 2012, Prysmian was thus
forced to initiate arbitration proceedings before the London Court of International Arbitration (LCIA),
requesting that the Local Shareholders be declared in breach of contract and ordered to sell the shares
representing 49% of the Company’s share capital to Prysmian. In a ruling handed down in April 2017, the
LCIA upheld Prysmian’s claims and ordered the Local Shareholders to sell the shares representing 49%
of the Company’s share capital to Prysmian. However, the Local Shareholders did not voluntarily enforce
the arbitration award and so Prysmian had to initiate proceedings in the Indian courts in order to have
the arbitration award recognised in India. Having gone through two levels of the court system, these
proceedings were finally concluded on 13 February 2020 with the pronouncement of a ruling by the
Indian Supreme Court under which the latter definitively declared the arbitration award enforceable
in India. In view of the continuing failure of the Local Shareholders to comply voluntarily, Prysmian has
requested the Mumbai court to enforce the arbitration award so as to purchase the shares representing
49% of the Company’s share capital as soon as possible. This case is currently still pending, slowed down
by the ongoing Covid-19 emergency in India, and so control of the company is considered to have not yet
been acquired.
Annual Report 2020

Covid-19 “People First”, Business protection, Innovation/Digitalisation
The Group’s significant presence in China enabled it to understand the emergence of the Covid
Pandemic at an early stage. “People first”, i.e. putting people’s health and safety first, technological
innovation and lean manufacturing, and business protection are the three mainstays of the Group’s
strategy in response to the Pandemic. “People First’ has translated into increased investment in health
and safety (+29% to Euro 17 million), the mass procurement of hygiene material and equipment and
performance of tests and analyses to detect infections, the redefinition of procedures for staying safe
at work and the extensive use of remote working, the digitalisation of the Academy’s training activities
and actions for the benefit of communities affected by the virus (from the wiring of the Wuhan
hospital to citizenship initiatives in other parts of the world). In a context in which our very social
and economic priorities are being redefined, the Group has confirmed its ambition to be an enabler
of energy transition and digitalisation. The Group has deepened its commitment to technological
innovation: from its flagship 525 kV P-Laser cable and innovations in fibres and optical cables, like
Sirocco, its record-breaking cable for fibre density, to its submarine cable for record depths of up to
3,000 metres. Equally significant is the Fast Forward Project to digitalise manufacturing processes.
Putting health and safety first has also enabled the Group to ensure continuity of its supply chain
and business. Uptime at its production facilities has never dropped below 70-80%, keeping the level
of customer service practically intact, with on-time delivery performance at over 94%. The Group
has also swiftly deployed a robust cost containment program as well as measures to protect cash
generation.
Update on the 2011 Antitrust proceedings in Brazil
On 15 April 2020, Prysmian Group announced that the Tribunal of the Brazilian antitrust authority had
issued the operative part of its decision in relation to proceedings initiated in 2011 in which it has ruled
that Prysmian Group participated in anti-competitive practices in the Brazilian market for high voltage
underground and submarine cables. The Tribunal has held Prysmian Group liable for the period from
February 2001 to March 2004 and ordered it to pay a fine of BRL 10.2 million (approximately Euro 1.8
million), in line with the amount contained in the provisions recognised by the Group for this specific
matter. Prysmian Group has filed an appeal against the CADE ruling.
Approval of financial statements at 31 December 2019 and dividend distribution
On 28 April 2020, the shareholders of Prysmian S.p.A. approved the financial statements for 2019 and the
distribution of a gross dividend of Euro 0.25 per share, for a total of some Euro 66 million. The dividend
was paid out from 20 May 2020, with record date 19 May 2020 and ex-dividend date 18 May 2020.
Ruling by the EU Court of Justice on the appeals filed against the European Commission
decision relating to the Antitrust investigation into high voltage underground and submarine
power cables markets
On 24 September 2020, the Group announced that the Court of Justice of the European Union had
issued its ruling on the appeal filed by Prysmian S.p.A. and Prysmian Cavi e Sistemi S.r.l. against
the General Court’s ruling dated 12 July 2018 which, as already communicated to the market on
the same date, upheld the European Commission decision of 2 April 2014 concerning the Antitrust
investigation into high voltage underground and submarine power cables markets. Under this ruling,
Prysmian Group
the Court dismissed the appeal filed by Group companies and, by so doing it upheld the liability
and fine envisaged under the European Commission’s original decision. It will be recalled that the
European Commission had held Prysmian Cavi e Sistemi S.r.l. jointly liable with Pirelli & C. S.p.A.
for the alleged infringement in the period 18 February 1999-28 July 2005, ordering them to pay a
fine of Euro 67,310,000, and it had held Prysmian Cavi e Sistemi S.r.l. jointly liable with Prysmian
S.p.A. and The Goldman Sachs Group Inc. for the alleged infringement in the period 29 July 2005-28
January 2009, ordering them to pay a fine of Euro 37,303,000. Further to the EU Court of Justice’s
ruling, the European Commission requested the Prysmian Group to pay half of the fine it was jointly
and severally liable for with Pirelli & C. S.p.A. and The Goldman Sachs Group Inc., amounting to
approximately Euro 52 million plus interest. Using the provisions already set aside in previous years,
the Group has gone ahead and made this payment.
The Group also made other payments in 2020 to settle follow-on litigation initiated by third parties
to obtain compensation for damages allegedly suffered as a result of Prysmian’s involvement in the
anti-competitive practices fined by the European Commission, as well as for legal expenses. The total
disbursements for all the above, and therefore including payment of half of the fine imposed by the
European Commission, came to approximately Euro 112 million.
Lastly, it should be noted that the Group has adequate provisions in place in order to be able to meet
claims for damages arising from this decision.
Race to zero net CO2 emissions begins
On 25 November 2020, the Group announced the launch of a new project aimed at accelerating its race to
zero net CO2 emissions. The announcement was made on the occasion of Prysmian Group’s “Sustainability
Day”, a digital stakeholder engagement event during which the Group’s top management shared
Prysmian’s vision, priorities and plans for its sustainability roadmap. The project aims to set science-
based carbon reduction targets for the Group and will consider both Scope 1&2 (own organisation) and
Scope 3 (value chain) GHG emissions. Carbon reduction targets are considered “Science-Based Targets’’
if they are in line with what climate science says is necessary to achieve the Paris Agreement goals: to
limit global warming to below 2°C above pre-industrial levels and pursue efforts to limit warming to
1.5°C. Prysmian Group is supported in the project by the Carbon Trust, the leading organisation helping
companies and governments to realise ambitious plans for a sustainable, low carbon future. By 2022
Prysmian plans to invest around Euro 450 million to further improve the sustainability of its organisation
and supply chain and accelerate the development of cutting-edge cable technologies, assets and
services. Energy consumption reduction, the circular economy, waste recycling, and promoting a
health & safety culture are key in Prysmian’s efforts to improve the sustainability of its supply chain.
The transition to renewable energy is closely linked to the ability to transmit and dispatch energy
from one place to another, from those locations where renewable energy is produced (offshore wind
farms) to those where it is consumed (urban centres). Prysmian Group is committed to supporting the
development of greener and smarter power grids, by making available innovative cable technologies
capable of covering longer distances and suitable for installation at greater depths, ensuring higher
performance, reliability and sustainability.
Legal action for patent infringements in the UK brought against Emtelle UK Limited
On 27 November 2020, Prysmian Group announced that it had commenced legal action against Emtelle
UK Limited for infringement of some of its patents in the UK. Prysmian claims that Emtelle’s FibreFlow
products infringe the UK designations of Prysmian’s European Patents EP(UK) 1,420,279 B1 and EP (UK)
1,668,392B1 for optical fibre cables.
Annual Report 2020

Plan to close the Manlleu and Montcada i Reixac production facilities in Spain – Follow up
With reference to the restructuring of industrial activities in Spain that involved the Manlleu and
Montcada i Reixac sites in Catalonia last year, necessary for organisational and manufacturing reasons
in order to recalibrate production capacity to market demand, the Group has maintained a constant
dialogue and active collaboration with trade union representatives at these sites for the effective
implementation of the plan envisaged in the November 2019 agreement.
The industrial plan aims to concentrate Spanish energy cable production at the Group’s Catalan sites in
Santa Perpètua de Mogoda and Vilanova i la Geltrú, as well as at General Cable’s centre of excellence for
low-voltage copper cables in Abrera, thereby maintaining the business’s competitiveness in Spain. The
total number of workers involved is 487 (of whom 334 at Manlleu and 153 at Montcada i Reixac).
Among the measures envisaged by the November 2019 agreement, unanimously approved by workers’
representatives, was the gradual cessation of production activity at the sites concerned, which took
place in April 2020 for the Montcada plant and in November 2020 for the Manlleu plant, although certain
industrial activities will continue at the latter site during 2021.
Prysmian Group
B. Accounting Principles
The main accounting principles used to prepare the consolidated financial statements and Group
financial information are discussed below.
B.1 BASIS OF PREPARATION

The consolidated financial statements at 31 December 2020 have been prepared on a going concern
basis, with the directors having assessed that there are no financial, operating or other kind of indicators
that might provide evidence of material uncertainties as to the Group’s ability to meet its obligations
in the foreseeable future and particularly in the next 12 months. The assessments carried out confirm
Prysmian Group’s ability to operate in compliance with the going concern presumption and with its
financial covenants.
Prysmian Group’s consolidated financial statements at 31 December 2020 have been prepared in
accordance with the International Financial Reporting Standards (IFRS) issued by the International
Accounting Standards Board (IASB), based on the text published in the Official Journal of the European
Union (OJEU).
The primary financial statements adopted have the following characteristics:

y the consolidated income statement is presented in a stepped format with individual lines classified
by nature and showing other comprehensive income, which reports components of profit or loss
deferred in equity;
y the consolidated statement of financial position presents assets and liabilities according to maturity,
with current items shown separately from non-current ones;
y the statement of cash flows is prepared by presenting cash flows using the “indirect method”, as
permitted by IAS 7;
In application of art. 264b HGB of the German Commercial Code (“Handelsgesetzbuch”), the present
financial statements exempt Draka Comteq Berlin GMBH & Co.KG and Draka Comteq Germany GMBH &
Co.KG. from the requirement to present statutory financial statements.
All the amounts shown in the Group’s financial statements are expressed in millions of Euro, unless
otherwise stated.
B.2 NEWLY ADOPTED ACCOUNTING STANDARDS AND PRINCIPLES

The accounting policies and basis of consolidation used to prepare the 2020 Consolidated Financial
Statements are consistent with those used for the 2019 Consolidated Financial Statements. This means
there are no new standards or interpretations that have been applied for the first time in these financial
statements and that have had an impact on them. More complete details can be found in Note 39. Basis
of consolidation and accounting policies.
A description of the standards and interpretations applicable from 1 January 2020 and of their effects
will now follow.
Annual Report 2020

Metal derivatives
As from 1 January 2020, in the case of centrally managed derivatives, and as from 1 July 2020, in the case
of derivatives arranged by subsidiaries in North America, Brazil and China, the Group has designated
certain derivatives denominated in EUR, GBP, USD and RMB entered into with brokers and aimed at
mitigating the risk of fluctuations in copper and aluminium prices, as cash flow hedges, being hedging
instruments associated with highly probable transactions. These derivative financial instruments, which
qualify for recognition as hedging instruments, are designed to hedge the price risk of commodities
that are the subject of highly probable future purchase transactions (hedged items). A derivative that
sets the commodity’s purchase price is designated as a hedging instrument, since it relates to a physical
commodity purchase that will be made. When the physical purchase is made, the Group unwinds the
buy derivatives with sell derivatives. The effectiveness of the hedging relationships is assessed from
the inception of each derivative instrument until its closure. The fair values of the various derivative
financial instruments used as hedging instruments are presented in Note 8. Derivatives. Movements in
the “Cash flow hedge reserve” forming part of equity are reported in Note 11. Share capital and reserves.
In the case of derivatives designated as cash flow hedges and managed centrally, the new accounting
treatment, based on cash flow hedge accounting, has been applied to the fair value changes since
31 December 2019 in derivatives outstanding at 31 December 2020 (just for those commodities included
in the period covered by the cash flow hedge accounting method), meaning both those entered into since
31 December 2019 and those already recorded at 31 December 2019. In the case of derivatives arranged
by North American, Brazilian and Chinese subsidiaries, the new accounting treatment, based on cash
flow hedge accounting, has been applied to the fair value changes since 30 June 2020 in derivatives
outstanding at 31 December 2020 (just for those commodities included in the period covered by the
cash flow hedge accounting method), meaning both those entered into since 30 June 2020 and those
already recorded at 30 June 2020.
As a result of the above, in 2020 the Group has recognised a positive movement of Euro 68 million pre-
tax in the cash flow hedge reserve forming part of equity for the positive change in the fair value of
derivatives designated as hedging instruments during the year.
Other new standards, interpretations and amendments
The following is a list of other new accounting standards, interpretations and amendments whose
application became mandatory from 1 January 2020 but which have not had a material impact on the
consolidated financial statements at 31 December 2020:
y Amendments to IFRS 3: Definition of business;
y Amendments to IAS 1 and IAS 8: Definition of material;
y Amendments to IFRS 7, IFRS 9 and IAS 39: Interest Rate Benchmark Reform.
Prysmian Group
B.3 ACCOUNTING STANDARDS, AMENDMENTS AND INTERPRETATIONS

NOT YET APPLICABLE AND NOT ADOPTED EARLY BY THE GROUP
The following new Standards, Amendments and Interpretations have been issued at the date of
preparing the present report but are not yet applicable:
Mandatory
New Standards, Amendments and Interpretations
application as from
IFRS 17 Insurance Contracts 1 January 2021
Amendments to IFRS 3: Reference to the conceptual Framework 1 January 2022
Amendments to IAS 16: Proceed before Intended Use 1 January 2022
Amendments to IAS 37: Costs of Fulfilling a Contract 1 January 2022
Amendments to IFRS 1: Subsidiary as a first-time adopter 1 January 2022
Amendments to IFRS 9: Fees in the ‘10%’ test for derecognition financial liabilities 1 January 2022
Amendments to IAS 41: Taxation in fair value measurements 1 January 2022
Amendments to IAS 1: Classification of Liabilities as Current or Non-current 1 January 2023
Preliminary review of the new Standards, Amendments and Interpretations listed above indicates that
they have no material impact on the Group’s consolidated financial statements.
B.4 PRINCIPAL CHANGES IN THE SCOPE OF CONSOLIDATION

The Group’s scope of consolidation includes the financial statements of Prysmian S.p.A. (the Parent
Company) and the companies over which it exercises direct or indirect control, which are consolidated
from the date when control is obtained until the date when such control ceases.
The changes in the scope of consolidation at 31 December 2020, compared with 31 December 2019, are
listed below. In any case, such changes have not had a material impact on the Group’s consolidated
financial statements at 31 December 2020.
Liquidations
Liquidated companies Nation Date

General Cable Middle East Mauritius 13 January 2020
Draka Cables (Hong Kong) Ltd China 28 January 2020
Draka Distribution Aberdeen Ltd United Kingdom 28 January 2020
Tasfiye Halinde Draka Comteq Kablo Ld. Şti Turkey 25 June 2020
General Cable New Zealand Limited New Zealand 27 July 2020
General Cable Holdings New Zealand New Zealand 27 July 2020
GC Specialty & Automotive Mauritius 23 October 2020
General Cable Trading Mauritius 27 October 2020
General Cable Botswana (Pty) Ltd Gaborone West 3 December 2020
Annual Report 2020

Mergers
Merged company Merged into Nation Date

Phelps Dodge International Corporation General Cable Industries Inc. Cayman Islands 31 December 2020
Name changes
For the sake of better understanding the scope of consolidation, the name changes occurring in the
period are as follows:
Original name New name Nation Date

Draka Shanghai Optical Fibre Cable Co. Shanghai Guang Ye Optical Fibre Cable China 3 September 2020
Ltd Co. Ltd
Appendix A contains a complete list of the companies included in the scope of consolidation at
31 December 2020.
Prysmian Group
C. Financial Risk Management

The Group’s activities are exposed to various forms of risk: market risk (including exchange rate, interest
rate and price risks), credit risk and liquidity risk. The Group’s risk management strategy focuses on the
unpredictability of markets and aims to minimise the potentially negative impact on the Group’s results.
Certain types of risk are mitigated using derivative instruments.
Monitoring of key financial risks is centrally coordinated by the Group Finance Department, and by the
Purchasing Department where price risk is concerned, in close cooperation with the Group’s operating
companies. Risk management policies are approved by the Group Finance, Administration and Control
Department, which provides written guidelines on managing the above risks and on using (derivative
and non-derivative) financial instruments.
The impact on profit and equity presented in the following sensitivity analyses has been determined net
of tax, calculated using the Group’s weighted average theoretical tax rate.
[a] Exchange rate risk
The Group operates worldwide and is therefore exposed to exchange rate risk caused by changes in the
value of trade and financial flows expressed in a currency other than the unit of account of individual
Group companies.
The principal exchange rates affecting the Group are:

y Euro/US Dollar: in relation to trade and financial transactions in US dollars by Eurozone companies on
the North American and Middle Eastern markets, and similar transactions in Euro by North American
companies on the European market;
y Euro/British Pound: in relation to trade and financial transactions by Eurozone companies on the
British market and vice versa;
y Euro/Canadian Dollar: in relation to trade and financial transactions by Eurozone companies on the
Canadian market and vice versa;
y Euro/Australian Dollar: in relation to trade and financial transactions by Eurozone companies on the
Australian market and vice versa;
y Euro/Hungarian Forint: in relation to trade and financial transactions by Hungarian companies on the
Eurozone market and vice versa;
y Euro/Romanian Leu: in relation to trade and financial transactions by Eurozone companies on the
Romanian market and vice versa;
y Euro/Norwegian Krone: in relation to trade and financial transactions by Eurozone companies on the
Norwegian market and vice versa;
y US Dollar/Brazilian Real: in relation to trade and financial transactions by companies operating on
the South American market;
y US Dollar/Omani Rial: in relation to trade and financial transactions by companies operating on the
Omani market;
y Euro/Swedish Krona: in relation to trade and financial transactions by Eurozone companies on the
Swedish market and vice versa;
y Euro/Singapore Dollar: in relation to trade and financial transactions by Eurozone companies on the
Singapore market and vice versa.
In 2020, trade and financial flows exposed to the above exchange rates accounted for around 84% of the
total exposure to exchange rate risk arising from trade and financial transactions.
Annual Report 2020

The Group is also exposed to exchange rate risks on the following exchange rates: Bahraini Dinar/Euro,
UAE Dirham/Euro, Euro/Czech Koruna. None of these exposures, taken individually, accounted for more
than 2% of the overall exposure to transactional exchange rate risk in 2020.
It is the Group’s policy to hedge, where possible, exposures in currencies other than the unit of account
of its individual companies. In particular, the Group hedges:
y firm cash flows: invoiced trade flows and exposures arising from loans and borrowings;
y projected cash flows: trade and financial flows arising from firm or highly probable contractual
commitments.
Such hedges are arranged using derivative contracts.

The following sensitivity analysis shows the effects on net profit of a 5% and 10% increase/decrease in
exchange rates versus closing exchange rates at 31 December 2020 and 31 December 2019.
2020 2019
(Euro/million)
-5% +5% -5% +5%
Euro (0.49) 0.44 (0.68) 0.61
US Dollar (1.42) 1.29 (2.95) 2.67
Other currencies (1.25) 1.13 (1.00) 0.91
Total (3.16) 2.86 (4.63) 4.19
2020 2019
(Euro/million)
-10% +10% -10% +10%
Euro (1.04) 0.85 (1.43) 1.17
US Dollar (3.01) 2.46 (6.23) 5.10
Total (6.68) 5.46 (9.78) 8.00
When assessing the potential impact of the above, the assets and liabilities of each Group company in
currencies other than their unit of account were considered, net of any derivatives hedging the above-
stated cash flows.
The following sensitivity analysis shows the post-tax effects on equity reserves of an increase/decrease
in the fair value of designated cash flow hedges following a 5% and 10% increase/decrease in exchange
rates versus closing exchange rates at 31 December 2020 and 31 December 2019.
2020 2019
(Euro/million)
-5% +5% -5% +5%
US Dollar (0.56) 0.51 2.07 (2.29)
Euro (0.42) 0.38 1.53 (1.69)
Qatari Riyal (0.53) 0.48 1.11 (1.23)
United Arab Emirates Dirham (0.01) 0.01 1.03 (1.14)
Other currencies (2.41) 2.18 3.79 (4.19)
Total (3.93) 3.56 9.53 (10.54)
Prysmian Group
2020 2019
(Euro/million)
-10% +10% -10% +10%
US Dollar (1.18) 0.96 3.95 (4.83)
Euro (0.88) 0.72 2.92 (3.57)
Qatari Riyal (1.11) 0.91 2.12 (2.59)
United Arab Emirates Dirham (0.02) 0.02 1.97 (2.41)
Other currencies (5.06) 4.14 7.24 (8.84)
Total (8.25) 6.75 18.20 (22.24)
The above analysis ignores the effects of translating the equity of Group companies whose functional
currency is not the Euro.
Further details can be found in the individual notes to the financial statements.
[b] Interest rate risk
The interest rate risk to which the Group is exposed is mainly on long-term financial liabilities, carrying
both fixed and variable rates.
Fixed rate debt exposes the Group to a fair value risk. The Group does not operate any particular hedging
policies in relation to the risk arising from such contracts.
Variable rate debt exposes the Group to a rate volatility risk (cash flow risk). In order to hedge this risk,
the Group can use derivative contracts that limit the impact of interest rate changes on the income
statement.
The Group Finance Department monitors the exposure to interest rate risk and adopts appropriate
hedging strategies to keep the exposure within the limits defined by the Group Administration, Finance
and Control Department, arranging derivative contracts, if necessary.
The following sensitivity analysis shows the effects on consolidated net profit of an increase/decrease
of 25 basis points in interest rates on the interest rates at 31 December 2020 and 31 December 2019,
assuming that all other variables remain equal.
The potential effects shown below refer to net liabilities representing the bulk of Group debt at the
reporting date and are determined by calculating the effect on net finance costs following a change in
annual interest rates.
The net liabilities considered for sensitivity analysis include variable rate financial receivables and
payables, cash and cash equivalents and derivatives whose value is influenced by rate volatility.
2020 2019
(Euro/million)
-0.25% +0.25% -0.25% +0.25%
Euro (0.53) 0.53 0.12 (0.12)
US Dollar (0.23) 0.23 (0.25) 0.25
British Pound (0.08) 0.08 (0.05) 0.05
Total (1.28) 1.28 (0.68) 0.68
Annual Report 2020

At 31 December 2020, the Group had interest rate swap agreements in place that transform the variable
rate into a fixed one. These agreements have been accounted for as cash flow hedges.
[c] Price risk
The Group is exposed to price risk in relation to purchases and sales of strategic materials, whose purchase
price is subject to market volatility. The main raw materials used by the Group in its own production
processes consist of strategic metals such as copper, aluminium and lead. The cost of purchasing such
strategic materials accounted for approximately 58.03% of the Group’s total cost of materials in 2020
(58.8% in 2019), forming part of its overall production costs.
In order to manage the price risk on future trade transactions, the Group negotiates derivative contracts
on strategic metals, setting the price of expected future purchases or the value of stocks.
The derivative contracts entered into by the Group are negotiated with major financial counterparties
on the basis of strategic metal prices quoted on the London Metal Exchange (“LME”), the New York
market (“COMEX”) and the Shanghai Futures Exchange (“SFE”).
The following sensitivity analysis shows the effect on consolidated equity of a 10% increase/decrease
in strategic material prices versus prices at 31 December 2020 and 31 December 2019, assuming that all
other variables remain equal.
2020 2019
(Euro/million)
-10% +10% -10% +10%
LME (34.09) 34.09 (26.08) 26.08
COMEX 4.18 (4.18) (17.18) 17.18
SME (1.27) 1.27 (1.90) 1.90
Total (31.18) 31.18 (45.16) 45.16
The potential impact shown above is solely attributable to increases and decreases in the fair value
of derivatives on strategic material prices which are directly attributable to changes in the prices
themselves. It does not refer to the impact on the income statement of the purchase cost of strategic
materials.
[d] Credit risk
Credit risk is connected with trade receivables, cash and cash equivalents, financial instruments, and
deposits with banks and other financial institutions.
Customer-related credit risk is managed by the individual subsidiaries and monitored centrally by
the Group Finance Department. The Group does not have excessive concentrations of credit risk. It
nonetheless has procedures aimed at ensuring that sales of products and services are made to reliable
customers, taking account of their financial situation, track record and other factors. Credit limits for
major customers are based on internal and external assessments within ceilings approved by local
country management. The utilisation of credit limits is periodically monitored at local level. It should
be noted that credit risk was not particularly impacted during 2020 by the spread of the Covid-19
pandemic.
Prysmian Group
During 2020 the Group had a global insurance policy in place to provide coverage for part of its trade
receivables against any credit losses, net of the deductible.
As for credit risk relating to the management of financial and cash resources, this risk is monitored
by the Group Finance Department, which implements procedures intended to ensure that Group
companies deal with independent, highly rated, reliable counterparties. In fact, at 31 December
2020 (like at 31 December 2019) the vast majority of the Group’s financial and cash resources
were held with investment grade counterparties. Credit limits relating to the principal financial
counterparties are based on internal and external assessments, within ceilings set by the Group
Finance Department.
[e] Liquidity risk
Prudent management of the liquidity risk arising from the Group’s normal operations involves the
maintenance of adequate levels of cash and cash equivalents and short-term securities as well as
ensuring the availability of funds by having an adequate amount of committed credit lines.
The Group Finance Department uses cash flow forecasts to monitor the projected level of the Group’s
liquidity reserves.
The amount of liquidity reserves at the reporting date is as follows:
(Euro/million) 31.12.2020 31.12.2019

Cash and cash equivalents 1,163 1,070
Financial assets at fair value through profit or loss 20 27
Financial assets at fair value through other comprehensive income 11 11
Undrawn committed lines of credit 1,000 1,000
Total 2,194 2,108
Undrawn committed lines of credit at 31 December 2020 refer to the Revolving Credit Facility 2019
(Euro 1,000 million). The following table includes an analysis, by due date, of payables, other liabilities,
and derivatives settled on a net basis; the various due date categories refer to the period between the
reporting date and the contractual maturity of the obligations.
31.12.2020
(Euro/million) Due within Due between Due between Due after
1 year 1 - 2 years 2 - 5 years 5 years
Borrowings from banks and other lenders 174 1,315 1,726 63
Derivatives 46 8 5 -
Trade and other payables 2,953 6 - -
Total 3,173 1,329 1,731 63
Annual Report 2020

31.12.2019
(Euro/million) Due within Due between Due between Due after
1 year 1 - 2 years 2 - 5 years 5 years
Borrowings from banks and other lenders 260 95 2,988 59
Derivatives 35 9 9 -
Trade and other payables 3,031 11 - -
Total 3,326 115 2,997 59
In completion of the disclosures about financial risks, the following is a reconciliation between the
classes of financial assets and liabilities reported in the Group’s consolidated statement of financial
position and the categories used by IFRS 7 to identify financial assets and liabilities:
31.12.2020
Financial
Receivables Financial Financial
Financial assets at
(Euro/million) and other liabilities at liabilities
assets at fair fair value Hedging
assets at fair value carried at
value through through other derivatives
amortised through amortised
profit or loss comprehensive
cost profit or loss cost
income
Other investments at fair value through - - 13 - - -
other comprehensive income
Financial assets at fair value through other - - 11
Financial assets at amortised cost - 4
Trade receivables - 1,374 - - - -
Other receivables - 522 - - - -
Financial assets at fair value through profit 20 - - - - -
or loss
Derivatives (assets) 38 - - - - 88
Cash and cash equivalents - 1,163 - - - -
Borrowings from banks and other lenders - - - - 3,172 -
Trade payables - - - - 1,958 -
Other payables - - - - 1,001 -
Derivatives (liabilities) - - - 31 - 28
Prysmian Group
31.12.2019
Financial
Receivables Financial Financial
Financial assets at
(Euro/million) and other liabilities at liabilities
assets at fair fair value Hedging
assets at fair value carried at
value through through other derivatives
amortised through amortised
profit or loss comprehensive
cost profit or loss cost
income
Other investments at fair value through - - 13 - - -
other comprehensive income
Financial assets at fair value through other - - 11
Financial assets at amortised cost - 4
Trade receivables - 1,475 - - - -
Other receivables - 854 - - - -
Financial assets at fair value through profit 27 - - - - -
or loss
Derivatives (assets) 35 - - - - 5
Cash and cash equivalents - 1,070 - - - -
Borrowings from banks and other lenders - - - - 3,244 -
Trade payables - - - - 2,062 -
Other payables - - - - 980 -
Derivatives (liabilities) - - - 28 - 25
C.1 CAPITAL RISK MANAGEMENT

The Group’s objective in capital risk management is mainly to safeguard business continuity in order to
guarantee returns for shareholders and benefits for other stakeholders. The Group also aims to maintain
an optimal capital structure in order to reduce the cost of debt and to comply with a series of covenants
required by the various Credit Agreements (Note 32. Financial covenants).
The Group also monitors capital using a gearing ratio (i.e. the ratio between net financial debt and
capital). Details of how net financial debt is determined can be found in Note 12. Borrowings from banks
and other lenders. Capital is equal to the sum of equity, as reported in the Group consolidated financial
statements, and net financial debt.
The gearing ratios at 31 December 2020 and 31 December 2019 are shown below:

Net financial debt 1,986 2,140
Equity 2,423 2,602
Total capital 4,409 4,742
Gearing ratio 45.04% 45.13%
Annual Report 2020

C.2 FAIR VALUE MEASUREMENT

IFRS 13 requires assets and liabilities recognised in the statement of financial position at fair value to
be classified according to a hierarchy that reflects the significance of the inputs used in measuring fair
value.
Financial instruments are classified according to the following fair value measurement hierarchy:
y Level 1: Fair value is determined with reference to quoted prices (unadjusted) in active markets for
identical financial instruments. Therefore, the emphasis within Level 1 is on determining both of the
following:
a) the principal market for the asset or liability or, in the absence of a principal market, the most
advantageous market for the asset or liability; and
b) whether the entity can enter into a transaction for the asset or liability at the price in that market
at the measurement date.
y Level 2: Fair value is determined using valuation techniques where the input is based on observable
market data. The inputs for this level include:
a) quoted prices for similar assets or liabilities in active markets;
b) quoted prices for identical or similar assets or liabilities in markets that are not active;
c) inputs other than quoted prices that are observable for the asset or liability, for example:
i. interest rate and yield curves observable at commonly quoted intervals;
ii. implied volatilities;
iii. credit spreads;
d) market-corroborated inputs.
y Level 3: Fair value is determined using valuation techniques where the input is not based on
observable market data.
The following tables present the assets and liabilities that are recurrently measured at fair value:
31.12.2020
(Euro/million)
Level 1 Level 2 Level 3 Total
Assets
Financial assets at fair value:
Derivatives through profit or loss - 38 - 38
Hedging derivatives - 88 - 88
Financial assets at fair value through profit or loss 16 4 - 20
Other investments at fair value through other comprehensive - - 13 13
income
Financial assets at fair value through other comprehensive 11 - - 11
income
Total assets 27 130 13 170
Liabilities
Financial liabilities at fair value:
Total liabilities - 59 - 59
Prysmian Group
31.12.2019
(Euro/million)
Level 1 Level 2 Level 3 Total
Assets
Financial assets at fair value:
Financial assets at fair value through profit or loss 18 9 - 27
Other investments at fair value through other comprehensive - - 13 13
income
Financial assets at fair value through other comprehensive 11 - - 11
income
Total assets 29 49 13 91
Liabilities
Financial liabilities at fair value:
Total liabilities - 53 - 53
Financial assets classified in fair value Level 3 have reported no significant movements in either 2020 or
2019.
Given the short-term nature of trade receivables and trade payables, their carrying amounts, net of
any allowance for doubtful accounts, are treated as a good approximation of fair value. During 2020
there were no transfers of financial assets and liabilities between the different levels of the fair value
hierarchy.
Valuation techniques
Level 1: The fair value of financial instruments quoted in an active market is based on market price at the
reporting date. The market price used for derivatives is the bid price, while for financial liabilities the ask
price is used.
Level 2: Derivative financial instruments classified in this category include interest rate swaps, forward
currency contracts and metal derivative contracts that are not quoted in active markets. Fair value is
determined as follows:
y for interest rate swaps, it is calculated on the basis of the present value of forecast future cash flows;
y for forward currency contracts, it is determined using the forward exchange rate at the reporting
date, appropriately discounted;
y for metal derivative contracts, it is determined using the prices of such metals at the reporting date,
appropriately discounted.
Level 3: The fair value of instruments not quoted in an active market is primarily determined using
valuation techniques based on estimated discounted cash flows.
An increase/decrease in the Group’s credit rating at 31 December 2020 would not have had significant
effects on net profit at that date.
Annual Report 2020

D. Segment Information

The Group’s operating segments are:
y Energy, whose smallest identifiable CGU are Regions/Countries depending on the specific
organisation;
y Projects, whose smallest identifiable CGUs are the High Voltage, Submarine Power, Submarine
Telecom and Offshore Specialties businesses;
y Telecom, whose smallest CGU is the operating segment itself.
Segment information is structured in the same way as the report periodically prepared for the purpose of
reviewing business performance. This report presents operating performance by macro type of business
(Energy, Projects and Telecom) and the results of operating segments primarily on the basis of Adjusted
EBITDA, defined as earnings (loss) for the period before non-recurring items, the fair value change
in metal price derivatives and in other fair value items, amortisation, depreciation and impairment,
finance costs and income and taxes. This report also provides information about the statement of
financial position for the Group as a whole but not by operating segment.
In order to provide users of the financial statements with clearer information, certain economic data is
also reported by sales channels and business areas within the individual operating segments:
A) Projects operating segment: encompassing the following high-tech and high value-added businesses
whose focus is on projects and their execution, as well as on product customisation: High Voltage,
Submarine Power, Submarine Telecom and Offshore Specialties.
B) Energy operating segment: encompassing the businesses offering a complete and innovative product
portfolio designed to meet the various and many needs of the market, namely:
1. Energy & Infrastructure (E&I): this includes Trade and Installers, Power Distribution and Overhead
lines;
2. Industrial & Network Components: this comprises Specialties and OEM, Elevators, Automotive,
Network Components, core Oil & Gas and DHT;
3. Other: occasional sales of residual products.
C) Telecom operating segment: producing cable systems and connectivity products used in
telecommunication networks. This segment is organised in the following lines of business: optical
fibre, optical cables, connectivity components and accessories, OPGW (Optical Ground Wire) and
copper cables.
All Corporate fixed costs are allocated to the Projects, Energy and Telecom operating segments.
Revenues and costs are allocated to each operating segment by identifying all revenues and costs
directly attributable to that segment and by allocating indirect costs on the basis of Corporate resources
(personnel, space used, etc.) absorbed by the operating segments.
Group operating activities are organised and managed separately according to the nature of the products
and services provided: each segment offers different products and services to different markets. Sales
of goods and services are analysed geographically on the basis of the location of the registered office
of the company that issues the invoices, regardless of the geographic destination of the products sold.
This type of presentation does not produce significantly different results from analysing sales of goods
and services by destination of the products sold. All transfer prices are set using the same conditions
applied to other transactions between Group companies and are generally determined by applying a
mark-up to production costs.
Assets and liabilities by operating segment are not included in the data reviewed by management and
so, as permitted by IFRS 8, this information is not presented in the current report.
Prysmian Group
D.1 OPERATING SEGMENTS

The following tables present information by operating segment.
2020
Energy
(Euro/million)
Group
Projects Industrial Total Telecom Corporate
E&I Other total
& NWC Energy
Sales (1) 1,438 4,735 2,252 220 7,207 1,371 - 10,016
Adjusted EBITDA 186 272 165 (1) 436 200 - 822
before share of
net profit/(loss) of
equity-accounted
companies
% of sales 13.0% 5.8% 7.3% 6.1% 14.6% 8.2%
Adjusted EBITDA (A) 186 275 166 (1) 440 214 - 840
% of sales 13.0% 5.8% 7.4% 6.1% 15.6% 8.4%
Adjustments (13) (24) (18) (3) (45) 8 (9) (59)
EBITDA (B) 173 251 148 (4) 395 222 (9) 781
% of sales 12.1% 5.3% 6.6% 5.5% 16.2% 7.8%
Amortisation and (64) (123) (57) (5) (185) (76) - (325)
depreciation (C)
Adjusted operating 122 152 109 (6) 255 138 - 515
income (A + C)
% of sales 8.5% 3.2% 4.8% 3.5% 10.1% 5.1%
Fair value change in (4)
metal derivatives (D)
Fair value stock (31)
options (E)
Asset (impairment) (68) (68)
and impairment
reversal (F)
Operating income 353
(B + C + D + E + F)
% of sales 3.5%
Finance income 468
Finance costs (569)
Taxes (78)
Net profit/(loss) 174
% of sales 1.7%
Attributable to:
Owners of the parent 178
Non-controlling (4)
interests
(1) Sales of the operating segments and business areas are reported net of intercompany transactions and net of transactions between operating segments,
consistent with the presentation adopted in the regularly reviewed reports.
Annual Report 2020

2019
Energy
(Euro/million)
Group
Projects Industrial Total Telecom Corporate
E&I Other total
& NWC Energy
Sales (1) 1,844 5,285 2,492 250 8,027 1,648 - 11,519
Adjusted EBITDA 228 307 195 1 503 252 - 983
before share of
net profit/(loss) of
equity-accounted
companies
% of sales 12.3% 5.8% 7.8% 6.3% 15.3% 8.5%
Adjusted EBITDA (A) 228 308 196 1 505 274 - 1,007
% of sales 12.4% 5.8% 7.9% 6.3% 16.6% 8.7%
Adjustments (23) (43) (19) 2 (60) - (17) (100)
EBITDA (B) 205 265 177 3 445 274 (17) 907
% of sales 11.1% 5.0% 7.2% 5.5% 16.6% 7.9%
Amortisation and (64) (123) (56) (3) (182) (72) - (318)
depreciation (C)
Adjusted operating 164 185 140 (2) 323 202 - 689
income (A + C)
% of sales 8.9% 3.5% 5.6% 4.0% 12.3% 6.0%
Fair value change in 15
metal derivatives (D)
Fair value stock 1
options (E)
Asset (impairment) (36) (36)
and impairment
reversal (F)
Operating income 569
(B + C + D + E + F)
% of sales 4.9%
Finance income 369
Finance costs (494)
Taxes (148)
Net profit/(loss) 296
% of sales 2.6%
Attributable to:
Owners of the parent 292
Non-controlling 4
interests
(1) Sales of the operating segments and business areas are reported net of intercompany transactions and net of transactions between operating segments,
consistent with the presentation adopted in the regularly reviewed reports.
Prysmian Group
D.2 GEOGRAPHICAL AREAS

The following table presents sales of goods and services by geographical area:

Sales 10,016 11,519
EMEA (*) 5,344 6,196
(of which Italy) 1,021 1,292
North America 3,084 3,441
Latin America 775 931
Asia Pacific 813 951
(*) EMEA: Europe, Middle East and Africa.
1. PROPERTY, PLANT AND EQUIPMENT
Details of this line item and related movements are as follows:
Assets under
Plant and construction
(Euro/million) Land Buildings Equipment Other assets Total
machinery and
advances
Balance at 31 December 2019 301 821 1,192 51 105 334 2,804
Movements in 2020:
– Investments - 9 11 3 6 195 224
– Increases for leases (IFRS 16) 4 20 1 6 48 - 79
– Disposals (1) (1) - - - (2)
– Depreciation (1) (54) (135) (17) (52) - (259)
– Impairment (9) (5) (50) - - - (64)
– Currency translation differences (9) (43) (68) (2) (7) (15) (144)
– Reclassifications (to)/from (3) 6 4 - - 1 8
Assets held for sale
– Monetary revaluation for - - 1 - - 1 2
hyperinflation
– Other - 33 74 12 19 (138) -
Of which:
– Historical cost 299 1,208 2,234 177 293 383 4,594
– Accumulated depreciation and (16) (422) (1,205) (124) (174) (5) (1,946)
impairment
Net book value 283 786 1,029 53 119 378 2,648
Annual Report 2020

Assets under
Plant and construction
machinery and
advances
Movements in 2019:
– Investments - 17 44 7 8 179 255
– Increases for leases (IFRS 16) 11 107 17 11 65 - 211
– Disposals - (1) (1) - (1) (6) (9)
– Depreciation (1) (59) (136) (17) (36) - (249)
– Impairment - (1) (29) (1) (3) (2) (36)
– Currency translation differences 3 5 12 (2) 3 - 21
– Reclassifications (to)/from (4) (9) (5) - (1) (1) (20)
Assets held for sale
– Monetary revaluation for 1 1 3 - - - 5
hyperinflation
– Other (3) 40 96 3 9 (148) (3)
Of which:
– Historical cost 309 1,203 2,284 165 244 339 4,544
– Accumulated depreciation and (8) (382) (1,092) (114) (139) (5) (1,740)
impairment
Net book value 301 821 1,192 51 105 334 2,804
In 2020, gross capital expenditure on property, plant and equipment came to Euro 224 million.
Details of this expenditure during the course of 2020 are provided below:
y Projects to increase and technologically upgrade production capacity and develop new products/
markets: Euro 147 million (66% of the total).
Within the Projects operating segment, the most significant investment was the continuation
of work on the new state-of-the-art cable-laying vessel, involving a total estimated investment
in excess of Euro 170 million. This strategic asset will consolidate Prysmian’s turnkey approach,
under which it serves EPCI (Engineering, Procurement, Construction & Installation) projects with
end-to-end solutions which include engineering, manufacturing, installation, and monitoring
and diagnostic services for submarine power transmission lines. In particular, the investment
in this new vessel will support long-term growth prospects in the submarine cables business,
strengthening the Group’s installation and execution capabilities for interconnection and offshore
wind projects.
Energy segment investments focused on certain niche markets to guarantee satisfaction of
growing demand in some value-added sectors: in North America, for example, the Group invested
in Sedalia, Missouri, where it continued the investments begun last year to support the growth
in business for special purpose aluminium cables and serve a market that proved particularly
buoyant this year and that holds good prospects for the years to come; in Taunton, Massachusetts,
work started last year to increase production capacity for special cables for industrial applications
was continued with the aim of optimising the potential of the new compounding plant, due to
become fully operational in 2021 after relocating operations from the nearby plant in North
Dighton, also in Massachusetts. In Latin America, and in particular in Brazil, the plant in Pocos de
Caldas, in the state of Minas Gerais, increased its production capacity for aluminium conductors
used by electricity operators in their energy transmission services.
Prysmian Group
In the Telecom segment, the Group’s Lexington plant in South Carolina confirmed its role
as a centre of excellence in the United States for the production of optical telecom cables:
the Group completed a series of investments in cable production using new state-of-the-
art FlexRibbon technology that compacts the maximum fibre count into the smallest cable
possible by using extremely flexible fibre ribbons that can be rolled up for high packing
densities or laid flat for ribbon splicing, all of which making them easier to install in smaller
ducts than the traditional flat-ribbon design. The significant growth of the Telecom business
in the North American region is also confirmed by an investment in the Claremont plant in
North Carolina, where production will be increased for ADSS (All Dielectric Self Supporting)
cables, used in outdoor applications and mainly installed on transmission towers to reach
North America’s vast rural areas.
y Multiple projects to improve industrial efficiency and rationalise production capacity: Euro 32 million
(14% of the total).
y Structural work: Euro 45 million (20% of the total).
At 31 December 2020, the value of machinery pledged as collateral against long-term loans was virtually
nil.
Impairment test of property, plant and equipment
The spread of the new “Covid-19” coronavirus around the world has been treated by Management as a
compelling indicator of impairment for the Group, leading to the performance of impairment tests for
all its CGUs, both top and second tier ones.
The WACC (Weighted Average Cost of Capital) used for discounting cash flows to determine value in use
for each CGU was calculated specifically taking account of the geographical area and operating segment
to which each CGU belonged.
In particular, the WACC used for the Telecom segment, consisting of a single CGU, was 5.4% for 2021 and
5.3% for 2022 and beyond. The WACC used for all the CGUs within the Projects segment was 6.2% for 2021
and 6% for 2022 and beyond. The WACC used for the Energy segment varied according to CGU and ranged
between a minimum of 5.9% and a maximum of 9.7% for 2021, and a minimum of 5.9% and a maximum
of 8.7% for 2022 and beyond. As will be noted, cash flows for 2021 were discounted at higher rates to
account for the greater degree of uncertainty arising from the Covid-19 pandemic.
A perpetuity growth rate of 2% was used to calculate terminal value for all the CGUs, being a rate
consistent with the IMF’s world economic growth forecasts.
These impairment tests have resulted in a write-down totalling Euro 63 million against the value of Land,
Buildings and Plant and machinery allocated to the Energy - South Europe CGU, while no impairment
losses were identified for other CGUs. Considering also, included into the Other intangible assets, Euro
3 million as impairment of Patents, concessions, licences, trademarks and similar rights, the overall
impairment related to the GGU Energy – South Europe has been Euro 66 million. The cash flow projection
for this CGU has been determined, for 2021, using the post-tax cash flow taken from the Group’s 2021
budget, approved by the Board of Directors on 3 March 2021. This forecast was then extended to 2022-
2023 using growth estimates such that the compound average growth rate (CAGR) from 2020 to 2023
was equal to the estimated CAGR for the two-year period; in addition, specific forecasts were made
regarding margin recovery in the years after 2021.
The WACC (Weighted Average Cost of Capital) used to discount cash flows for determining value in use
for the Energy - South Europe CGU ranged between 6.2% and 9.4%, depending on the individual countries
included within the CGU. A higher WACC has been used for 2021 than for subsequent years due to the
Annual Report 2020

higher degree of uncertainty prevailing this year because of the Covid-19 pandemic. The perpetuity
growth rate (G) projected after 2023 was 2%, consistent with long-term growth forecasts.
Right-of-use assets under IFRS 16
The following table reports movements during 2020 in right-of-use assets recognised in Property, plant
and equipment in accordance with IFRS 16:
Plant and
machinery
Balance at 31 December 2019 10 90 14 7 46 167
Movements in 2020:
– Investments 4 20 1 6 48 79
– Depreciation (1) (18) (2) (4) (32) (57)
– Impairment - - - - - -
– Currency translation differences - (6) (1) (1) (1) (9)
Balance at 31 December 2020 13 86 12 8 61 180
Of which:
– Historical cost 14 118 15 14 104 265
– Accumulated depreciation and (1) (32) (3) (6) (43) (85)
impairment
Net book value 13 86 12 8 61 180
The depreciation charge for right-of-use assets accounted for in accordance with IFRS 16 amounts to
Euro 57 million.
The following table presents the assets and liabilities for leases accounted for in accordance with
IFRS 16:
31.12.2020
(Euro/million) 31.12.2020 IFRS 16 effects
with IFRS 16
Non-current assets
Property, plant and equipment 2,468 180 2,648
Total assets 2,468 180 2,648
Non-current liabilities
Borrowings from banks and other lenders 2,910 135 3,045
Current liabilities
Total liabilities 2,986 186 3,172
Since the effects of deferred tax assets and liabilities (duly offset) are not material, they have not been
reported in the previous table.
Prysmian Group
2. GOODWILL AND OTHER INTANGIBLE ASSETS
Details of this line item and related movements are as follows:
Concessions,
Intangibles
licences, Other
in progress
(Euro/million) Patents trademarks Goodwill Software intangible Total
and
and similar assets
advances
rights
Movements in 2020:
– Investments - 1 - 9 - 12 22
– Amortisation (2) (14) - (9) (41) - (66)
– Impairment - (3) - - (1) - (4)
– Currency translation differences (1) (5) (82) 1 (25) 1 (111)
– Other 1 4 - 26 4 (33) 2
Of which:
– Historical cost 60 187 1,528 164 594 38 2,571
– Accumulated amortisation and (58) (104) (20) (97) (274) (21) (574)
impairment
Net book value 2 83 1,508 67 320 17 1,997
Concessions,
Intangibles
licences, Other
in progress
(Euro/million) Patents trademarks Goodwill Software intangible Total
and
and similar assets
advances
rights
Movements in 2019:
– Investments - - - 1 - 27 28
– Amortisation (3) (15) - (8) (43) - (69)
– Currency translation differences - 2 19 - 7 1 29
– Other 1 - - 12 2 (11) 4
Of which:
– Historical cost 60 187 1,610 128 615 58 2,658
– Accumulated amortisation and (56) (87) (20) (88) (232) (21) (504)
impairment
Net book value 4 100 1,590 40 383 37 2,154
In 2020, gross capital expenditure on intangible assets came to Euro 22 million. Work continued in 2020
on completing the “SAP Consolidation (1C)” program, intended to standardise back office processes,
involving the platform’s roll-out to France (former General Cable), Chile and Oman.
In addition, transitions were successfully completed to the new SAP S4/HANA ERP system by some of
the companies in the United States and to the new SAP BW4/HANA business intelligence system. In
addition, a project was started to migrate all countries currently using SAP 1C to the S4/HANA platform
(scheduled for completion in 2021).
In the Operations area, FastTrack, the new Corporate MES, was implemented at the Telecom plant in
Slatina, the Group’s largest by size and one of the most important by production volumes. Towards the
end of the year implementation projects also got underway at Pikkala (Finland) and Slatina Energy
Annual Report 2020

(Romania) and will consolidate the energy cables model and its integrated innovative data analytics
tools.
Two other areas of the business that saw important IT investments were the Human Resources function,
for which a major digitalisation project was launched on the Workday platform, and the Treasury
function, with the consolidation of current systems on the new SAP Treasury S4 platform.
In a year in which the pandemic has severely tested global infrastructure and IT systems, Prysmian’s
IT function has played a key role in increasing the Group’s digital competitive advantage by enhancing
existing resources and implementing new communication and collaboration systems (Microsoft Teams,
telepresence, Workplace virtualisation, digital signatures, WAN extension).
At the same time, a digital strategy (“Digital Ambition”) has been developed to drive innovation and
support Prysmian’s transition from a pure cable manufacturer to a solutions provider, structured around
three application areas: the introduction of new digital products/services, the optimisation of business
performance by using data, and support for collective intelligence and digital culture.
Robotic automation of processes, artificial intelligence, augmented reality and the development
of natural language to facilitate human-machine interaction are some of the solutions now part of
Prysmian’s Digital Innovation portfolio, with significant results in terms of raising plant production
yields and supporting business continuity and customer relations.
Goodwill
At 31 December 2020, Prysmian Group reported Euro 1,508 million in Goodwill (Euro 1,590 million at
31 December 2019).
Goodwill impairment test
As reported in Note 39.4 Impairment of property, plant and equipment and finite-life intangible assets,
the Group’s activities are organised in three operating segments: Projects, Energy and Telecom. The
Projects segment consists of the High Voltage, Submarine Power, Submarine Telecom and Offshore
Specialties CGUs; the Energy segment consists of a number of CGUs corresponding to the Regions or
Countries in keeping with the new organisation structure; lastly, the Telecom segment consists of a single
CGU that coincides with the operating segment itself. Goodwill, acquired on the occasion of business
combinations, has been allocated to groups of CGUs, corresponding to the operating segments, which
are expected to benefit from the synergies of such combinations and which represent the lowest level
at which Management monitors business performance.
Goodwill has therefore been allocated to each of the operating segments: Projects, Energy and Telecom:
Currency
(Euro/million) 31.12.2019 translation 31.12.2020
differences
Energy goodwill 1,055 (55) 1,000
Projects goodwill 238 (12) 226
Telecom goodwill 297 (15) 282
Total goodwill 1,590 (82) 1,508
The value in use of the Projects and Energy segments was calculated as the sum of the value in use of all
their constituent CGUs, which, as described earlier, have been tested specifically, while this approach
was not necessary for the Telecom segment which constitutes a stand-alone CGU.
Prysmian Group
The cash flows for all CGUs, except for those for which specific variables were identified, were determined
as follows:
a) for 2021, the post-tax cash flow was taken from the Group’s 2021 budget, approved by the Board of
Directors on 3 March 2021;
b) the cash flow forecasts were extended to the period 2022-2023 on the basis of growth projections
consistent with the growth rates of the countries concerned;
c) terminal value was calculated using a 2% perpetual growth rate, consistent with expected long-term
world growth forecasts.
The rate used to discount cash flows was determined on the basis of market information about the cost
of money and asset-specific risks (Weighted Average Cost of Capital, WACC). The outcome of the test
has shown that the recoverable amount of the individual operating segments is higher than their net
invested capital (including the allocation of goodwill). In particular, recoverable amount is higher than
carrying amount for the Projects operating segment (146%), Energy operating segment (130%) and
Telecom operating segment (149%). The WACC used for the Projects segment was 6.2% for 2021 and
6.0% for 2022 and beyond. For recoverable amount to be equal to carrying amount, a theoretical WACC
of 10.3% would have to be used. The WACC used for the Energy segment was 6.9% for 2021 and 6.6% for
2022 and beyond. For recoverable amount to be equal to carrying amount, a theoretical WACC of 11.6%
would have to be used. The WACC used for the Telecom segment was 5.4% for 2021 and 5.3% for 2022
and beyond. For recoverable amount to be equal to carrying amount, a theoretical WACC of 10.2% would
have to be used.
In order to take account of the greater uncertainty prevailing in the years assumed to be still impacted
by the Covid-19 pandemic, it was decided that all three segments should use a different WACC for 2021
to that for 2022 and beyond.
For recoverable amount to be equal to carrying amount, the growth rate for all segments would have to
be negative.
3. EQUITY-ACCOUNTED INVESTMENTS
This balance, amounting to Euro 312 million, has decreased by Euro 2 million since 31 December 2019
when it amounted to Euro 314 million, reflecting the effects shown in the following table:
31.12.2020
(Euro/million) Investments in
associates
Opening balance 314
Movements:
– Currency translation differences (10)
– Share of net profit/(loss) 18
– Disposals (2)
– Dividends (8)
Closing balance 312
Annual Report 2020

31.12.2019
(Euro/million) Investments in
associates
Opening balance 294
Movements:
– Currency translation differences 3
– Share of net profit/(loss) 24
– Dividends (9)
– Other movements 2
Closing balance 314
Details of investments in equity-accounted companies are as follows:
(Euro/million) 31.12.2020 31.12.2019

Yangtze Optical Fibre and Cable Joint Stock Limited Company 263 262
Yangtze Optical Fibre & Cable (Shanghai) Co. Ltd. 25 27
Kabeltrommel Gmbh & Co.K.G. 7 6
Elkat Ltd. 6 7
Rodco Ltd. 2 2
Phelps Dodge Yantai China Holdings, Inc - 2
Eksa Sp.Zo.o 3 3
Power Cables Malaysia Sdn Bhd 6 5
Total equity-accounted investments 312 314
The value of investments includes Euro 18 million for the share of net profit (loss) of equity-accounted
companies.
Investments in associates
Information about the nature of the main investments in associates:
Company name Registered office % owned

Yangtze Optical Fibre and Cable Joint Stock Limited Company China 23.73%
Yangtze Optical Fibre & Cable (Shanghai) Co. Ltd China 42.80%
Kabeltrommel GmbH & Co.K.G. Germany 43.18%
Power Cables Malaysia Sdn Bhd Malaysia 40.00%
Elkat Ltd. Russia 40.00%
Yangtze Optical Fibre and Cable Joint Stock Limited Company is a Chinese company formed in 1988 whose
main shareholders are: China Huaxin Post and Telecommunication Economy Development Center,
Wuhan Yangtze Communications Industry Group Company Ltd. and Prysmian Group. The company is one
of the industry’s most important manufacturers of optical fibre and cables. Its products and solutions
are sold in more than 50 countries, including the United States, Japan, the Middle East and Africa.
The company was listed on the Main Board of the Hong Kong Stock Exchange in December 2014 and in
July 2018 it was also listed on the Shanghai Stock Exchange.
At 31 December 2020, the fair value of the investment in Yangtze Optical Fibre and Cable Joint Stock
Limited Company was Euro 196 million (based on the price quoted on the Hong Kong market), while its
carrying amount was Euro 288 million (inclusive of Yangtze Optical Fibre & Cable (Shanghai) Co. Ltd.),
Prysmian Group
thus higher than fair value, identified by the aforementioned market price. However, this should not
be treated as a lasting situation, also in light of the fact that this is the first year carrying amount has
exceeded market value. This difference, moreover, is to be viewed as dependent on the current crisis
triggered by the spread of the Covid-19 pandemic. This situation will continue to be monitored over the
coming months.
Yangtze Optical Fibre & Cable (Shanghai) Co. Ltd, formed in 2002 and based in Shanghai (China), is an
associate company, 25% of whose share capital is held by Prysmian Group and 75% by Yangtze Optical
Fibre and Cable Joint Stock Limited Company. The company specialises in the manufacture and sale of
optical fibre and cables, offering a wide range of optical fibre cables and accessories, services and FTTx
solutions.
Kabeltrommel Gmbh & Co. K.G. is a German company that heads a consortium for the production,
procurement, management and sale of disposable and reusable cable carrying devices (drums). The
services offered by the company include both the sale of cable drums, and the complete management
of logistics services such as drum shipping, handling and subsequent retrieval. The company operates
primarily in the German market.
Power Cables Malaysia Sdn Bhd, a company based in Malaysia, manufactures and sells power cables and
conductors, with its prime specialism high voltage products.
Elkat Ltd. is based in Russia and manufactures and sells copper conductors; it is the only company
certified by the LME to test copper cathodes for the local market.
The following table reports key financial figures for the principal investments in associates:
Yangtze
Yangtze
Kabel- Optical Fibre Power
Optical Fibre
trommel and Cable Cables
Elkat Ltd. & Cable
(Euro/million) GmbH & Joint Stock Malaysia
(Shanghai)
Co.K.G. Limited Sdn Bhd
Co. Ltd
Company
31.12.2020 30.09.2020 31.12.2020 31.12.2020 31.12.2020
Non-current assets n.a. 555 n.a. 9 10
Current assets n.a. 1,057 n.a. 56 18
Total assets n.a. 1,612 n.a. 65 28
Equity n.a. 969 n.a. 41 14
Non-current liabilities n.a. 132 n.a. 5 2
Current liabilities n.a. 511 n.a. 19 12
Total equity and liabilities n.a. 1,612 n.a. 65 28
2020 2020 2020 2020 2020
Sales of goods and services n.a. 692 n.a. 70 33
Net profit/(loss) for the year n.a. 52 n.a. 1 2
Comprehensive income/(loss) for the year n.a. 46 n.a. 1 2
Dividends received 2 6 - 0 -
(*) The figures for Yangtze Optical Fibre and Cable Joint Stock Limited Company, a company listed on the Hong Kong Stock Exchange, refer to its latest published
financial results for the first nine months of 2020.
Annual Report 2020

Yangtze
Yangtze
Kabel- Optical Fibre Power
Optical Fibre
trommel and Cable Cables
Elkat Ltd. & Cable
(Euro/million) GmbH & Joint Stock Malaysia
(Shanghai)
Co.K.G. Limited Sdn Bhd
Co. Ltd
Company
31.12.2019 31.12.2019 31.12.2019 31.12.2019 31.12.2019
Non-current assets 9 540 6 10 11
Current assets 18 1,004 20 52 16
Total assets 27 1,544 26 62 27
Equity 11 993 23 42 13
Non-current liabilities 9 29 - 5 2
Current liabilities 7 522 3 15 12
Total equity and liabilities 27 1,544 26 62 27
2019 2019 2019 2019 2019
Sales of goods and services 34 1,004 193 92 33
Net profit/(loss) for the year 4 101 2 1 (1)
Comprehensive income/(loss) for the year 4 103 2 1 (1)
Dividends received 1 6 - 1 -
4.
OTHER INVESTMENTS AND FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER
COMPREHENSIVE INCOME
Details are as follows:
(Euro/million) 31.12.2020 31.12.2019

Other investments at fair value through other comprehensive income - non 13 13
current
Financial assets at fair value through other comprehensive income - current 11 11
Total 24 24
Other investments at fair value through other comprehensive income (non-current) report shareholdings
that are not intended for sale in the near term.
Financial assets at fair value through other comprehensive income (current) report securities that either
mature within 12 months of the reporting date or could possibly be sold in the near term.
Other investments at fair value through other comprehensive income are analysed as follows:
% owned
(Euro/million) Type of financial asset 31.12.2020 31.12.2019
by the Group
Ravin Cables Limited Unlisted shares 51% 9.00 9.00
Tunisie Cables S.A. Unlisted shares 7.55% 0.91 0.91
Cesi Motta S.p.A. Unlisted shares 6.48% 0.59 0.59
Voltimum S.A. Unlisted shares 13.71% - 0.27
Other 2,08 1.81
Total non-current 12.58 12.58
Prysmian Group
Other investments and financial assets at fair value through other comprehensive income are
denominated in the following currencies:
(Euro/million) 31.12.2020 31.12.2019

Euro 14 14
Tunisian Dinar 1 1
Indian Rupee 9 9
Total 24 24
Other investments at fair value through other comprehensive income are classified in Level 3 of the
fair value hierarchy, while financial assets at fair value through other comprehensive income fall under
Level 1 of the fair value hierarchy.
5. TRADE AND OTHER RECEIVABLES
31.12.2020
(Euro/million)
Non-current Current Total
Trade receivables 1 1,468 1,469
Allowance for doubtful accounts (1) (94) (95)
Total trade receivables - 1,374 1,374
Other receivables:
Tax receivables 6 228 234
Receivables from employees 1 4 5
Pension plan receivables - 3 3
Construction contracts - 162 162
Advances to suppliers 4 21 25
Other 14 68 82
Total other receivables 30 492 522
Total 30 1,866 1,896
Annual Report 2020

31.12.2019
(Euro/million)
Trade receivables - 1,563 1,563
Allowance for doubtful accounts - (88) (88)
Total trade receivables - 1,475 1,475
Other receivables:
Tax receivables 10 227 237
Receivables from employees 1 4 5
Pension plan receivables - 2 2
Construction contracts - 450 450
Advances to suppliers 4 15 19
Other 17 114 131
Total other receivables 38 816 854
Total 38 2,291 2,329
No individual customer accounted for more than 10% of the Group’s net receivables in either 2019 or
2020.
Trade receivables
The gross amount of past due receivables that are totally or partially impaired is Euro 232 million at
31 December 2020 (Euro 322 million at 31 December 2019).
The ageing of past due impaired receivables is as follows:
(Euro/million) 31.12.2020 31.12.2019

1 to 30 days 96 133
31 to 90 days 42 67
91 to 180 days 17 30
181 to 365 days 20 28
More than 365 days 57 64
Total 232 322
The value of trade receivables past due but not impaired is Euro 80 million at 31 December 2020
(Euro 82 million at 31 December 2019). These receivables mainly relate to customers in the Projects
operating segment, which, given the nature of the counterparties, are not considered necessary to
impair.
Prysmian Group
The ageing of receivables that are past due but not impaired is as follows:
(Euro/million) 31.12.2020 31.12.2019

1 to 30 days 5 2
31 to 90 days 1 5
91 to 180 days - -
181 to 365 days 2 2
More than 365 days 72 73
Total 80 82
The value of trade receivables not past due is Euro 1,157 million at 31 December 2020 (Euro 1,159 million
at 31 December 2019). There are no particular problems with the quality of these receivables and there
are no material amounts that would otherwise be past due if their original due dates had not been
renegotiated.
The following table breaks down trade and other receivables according to the currency in which they are
expressed:
(Euro/million) 31.12.2020 31.12.2019

Euro 814 883
US Dollar 447 544
Chinese Renminbi (Yuan) 110 128
Brazilian Real 109 122
Omani Rial 95 127
British Pound 48 148
Mexican Peso 42 23
Turkish Lira 40 36
Canadian Dollar 34 55
Colombian Peso 23 25
Chilean Peso 18 17
Indonesian Rupiah 13 48
Russian Rouble 13 13
Australian Dollar 12 18
Singapore Dollar 11 10
Romanian Leu 11 8
Other currencies 56 124
Total 1,896 2,329
Annual Report 2020

The allowance for doubtful accounts amounts to Euro 95 million at 31 December 2020 (Euro 88 million
at 31 December 2019).
Movements in this allowance are shown in the following table:
(Euro/million) 31.12.2020 31.12.2019

Opening balance 88 88
Movements:
– Increases in allowance 20 14
– Releases (6) (8)
– Bad debt write-offs (3) (2)
– Currency translation differences and other movements (4) (4)
Closing balance 95 88
Increases in and releases from the allowance for doubtful accounts are reported in “Other expenses” in
the income statement.
Other receivables
Other receivables include “Prepaid finance costs” of Euro 5 million at 31 December 2020 (Euro 6 million
at 31 December 2019), primarily relating to arrangement costs for the Revolving Credit Facility 2019
agreed with a syndicate of leading banks on 3 April 2019.
“Construction contracts” represent the value of contracts in progress, determined as the difference
between the costs incurred plus the related profit margin, net of recognised losses, and the amount
invoiced by the Group.
The following table shows how these amounts are reported between assets and liabilities:
(Euro/million) 31.12.2020 31.12.2019

Construction contract revenue to date 10,968 10,270
Amounts invoiced (11,174) (10,118)
Net amount due from/(to) customers for construction contracts (206) 152
Of which:
– Other receivables for construction contracts 162 450
– Other payables for construction contracts (368) (298)
Prysmian Group
6. INVENTORIES
(Euro/million) 31.12.2020 31.12.2019

Raw materials 432 439
of which allowance for obsolete and slow-moving raw materials (52) (47)
Work in progress and semi-finished goods 370 329
of which allowance for obsolete and slow-moving work in progress and semi-finished (16) (15)
goods
Finished goods (*) 729 755
of which allowance for obsolete and slow-moving finished goods (79) (78)
Total 1,531 1,523
(*) Finished goods also include goods for resale.
7. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS
(Euro/million) 31.12.2020 31.12.2019

Listed securities 16 18
Unlisted securities 4 9
Total 20 27
Financial assets at fair value through profit or loss basically refer to units in funds that mainly invest in
short and medium-term government securities. These assets are mostly held by subsidiaries in Brazil
and Argentina which invest temporarily available liquidity in such funds.
Movements in these assets are analysed as follows:
(Euro/million) 31.12.2020 31.12.2019

Movements:
– Currency translation differences (8) (3)
– Purchase of securities 3 6
– Disposal of securities (2) (1)
Annual Report 2020

8. DERIVATIVES
31.12.2020
(Euro/million)
Asset Liability
Non-current
Interest rate derivatives (cash flow hedges) - 12
Forward currency contracts on commercial transactions (cash flow hedges) 2
Metal derivatives (cash flow hedges) 40 -
Total hedging derivatives 42 12
Forward currency contracts on commercial transactions - -
Metal derivatives 2 1
Total other derivatives 2 1
Total non-current 44 13
Current
Forward currency contracts on commercial transactions (cash flow hedges) 6 3
Metal derivatives (cash flow hedges) 40 6
Forward currency contracts on commercial transactions 4 10
Forward currency contracts on financial transactions 4 9
Total current 82 46
Total 126 59
Prysmian Group
31.12.2019
(Euro/million)
Asset Liability
Non-current
Forward currency contracts on commercial transactions - -
Total non-current 7 18
Current
Forward currency contracts on commercial transactions 3 6
Forward currency contracts on financial transactions 6 4
Total current 33 35
Total 40 53
Forward currency contracts have a notional value of Euro 2,249 million at 31 December 2020 (Euro 2,258
million at 31 December 2019); total notional value at 31 December 2020 includes Euro 441 million in
derivatives designated as cash flow hedges (Euro 563 million at 31 December 2019).
Interest rate derivatives designated as cash flow hedges refer to:

y interest rate swaps, for an overall notional value of Euro 1,000 million, with the objective of hedging
variable rate interest flows for the period 2018-2023 on financing contracted by the Group to acquire
General Cable;
y interest rate swaps for an overall notional value of Euro 110 million, with the objective of hedging
variable rate interest flows over the period 2018-2024;
y interest rate swaps for an overall notional value of Euro 100 million, with the objective of hedging
variable rate interest flows over the period 2020-2024.
At 31 December 2020, like at 31 December 2019, almost all the derivative contracts had been entered
into with major financial institutions.
Metal derivatives have a notional value of Euro 1,273 million at 31 December 2020 (Euro 1,219 million at
31 December 2019).
Annual Report 2020

The following tables show the impact of offsetting assets and liabilities for derivative instruments, done
on the basis of master netting arrangements (ISDA and similar agreements). They also show the effect
of potential offsetting in the event of currently unforeseen default events:
31.12.2020
Derivatives
recognised
(Euro/million) Gross Amounts in Amounts Net
derivatives offset statement not offset (1) derivatives
of financial
position
Assets
Forward currency contracts 16 - 16 (13) 3
Interest rate derivatives - - - - -
Metal derivatives 110 - 110 (18) 92
Total assets 126 - 126 (31) 95
Liabilities
Interest rate derivatives 19 - 19 - 19
Metal derivatives 18 - 18 (18) -
Total liabilities 59 - 59 (31) 28
31.12.2019
Derivatives
recognised
(Euro/million) Gross Amounts in Amounts Net
derivatives offset statement not offset (1) derivatives
of financial
position
Assets
Interest rate derivatives - - - - -
Total assets 40 - 40 (20) 20
Liabilities
Interest rate derivatives 21 - 21 - 21
Total liabilities 53 - 53 (20) 33
(1) Derivatives potentially offsettable in the event of default events under master netting arrangements.
Prysmian Group
The following table shows movements in both reporting periods in the cash flow hedge reserve for
designated hedging derivatives:
2020 2019
(Euro/million) Gross Tax Gross Tax
reserve effect reserve effect
Opening balance (20) 7 (20) 6
Changes in fair value 72 (20) (7) 2
Reserve for other finance costs/(income) 4 (1) -
Release to construction contract costs/(revenues) - - 6 (1)
Other - - 1 -
Closing balance 56 (14) (20) 7
9. CASH AND CASH EQUIVALENTS
(Euro/million) 31.12.2020 31.12.2019

Cash and cheques 1 1
Bank and postal deposits 1,162 1,069
Total 1,163 1,070
Cash and cash equivalents, deposited with major financial institutions, are managed centrally through
the Group’s treasury company and in its various operating units.
Cash and cash equivalents managed by the Group’s treasury company amount to Euro 797 million at
31 December 2020, while at 31 December 2019 the figure was Euro 724 million.
The change in cash and cash equivalents is commented on in Note 37. Statement of cash flows.
10. ASSETS AND LIABILITIES HELD FOR SALE
(Euro/million) 31.12.2020 31.12.2019

Assets held for sale:
Buildings - 12
Other assets 1 14
Financial assets 1 1
Total assets held for sale 2 27
Liabilities held for sale:

Other liabilities - (10)
Total liabilities held for sale - (10)
Annual Report 2020

Movements in Assets and Liabilities held for sale are reported below:
31.12.2020
(Euro/million)
Assets Liabilities
– Disposals (3) (2)
– Reclassification (22) (8)
Closing balance 2 -
31.12.2019
(Euro/million)
Assets Liabilities
Opening balance 3 -
– Disposals (10) -
– Reclassification 34 10
Al 31 December 2019, assets and liabilities held for sale amounted to Euro 17 million and related to the
assets and liabilities of Draka Fileca SAS, a group company for which, on 22 October 2019, the Group
had received a binding offer, subject to meeting certain conditions, of Euro 73 million from Carlisle
Companies Incorporated. On 19 June 2020, the Group announced that the contract relating to this
transaction had been terminated, as the required regulatory approvals had not been obtained by the
agreed deadline, meaning that the assets and liabilities of Draka Fileca SAS have been reclassified to the
appropriate balance sheet lines.
Assets held for sale are classified in Level 3 of the fair value hierarchy.
11. SHARE CAPITAL AND RESERVES
Consolidated equity has recorded a negative change of Euro 179 million since 31 December 2019, mainly
reflecting the net effect of:
y negative currency translation differences of Euro 358 million;
y the positive post-tax change of Euro 55 million in the fair value of derivatives designated as cash flow
hedges;
y a positive change of Euro 31 million in the share-based compensation reserve linked to stock option
plans;
y the distribution of Euro 70 million in dividends;
y a decrease of Euro 19 million in the reserves for actuarial gains and losses on employee benefits;
y the net profit for the year of Euro 174 million;
y an increase of Euro 7 million for the effects of hyperinflation.
At 31 December 2020, the share capital of Prysmian S.p.A. comprises 268,144,246 shares, each of
nominal value Euro 0.10 for a total of Euro 26,814,424.60.
Prysmian Group
Movements in the ordinary shares and treasury shares of Prysmian S.p.A. are reported in the following
table:
Ordinary shares Treasury shares Total

Balance at 31 December 2018 268,144,246 (5,097,213) 263,047,033
Allotments and sales (1) - 206,051 206,051
Allotments and sales (2) - 131,729 131,729
(1) Allotment and/or sale of treasury shares under the YES Group employee share purchase plan (206,051 shares).
(2) Allotment and/or sale of treasury shares under the YES Group employee share purchase plan (131,729 shares).
Treasury shares
Movements in treasury shares during 2020 refer to the allotment and sale of treasury shares serving the
employee share purchase plan.
The following table reports movements in treasury shares during the year:
Total Total
Average
Number nominal % of share carrying
unit value
of shares value capital value
(in Euro)
(in Euro) (in Euro)
Balance at 31 December 2018 5,097,213 509,722 1.90% 20.31 103,545,528
– Allotments and sales (206,051) (20,605) - 19.92 (4,104,536)
– Allotments and sales (131,729) (13,173) - 19.92 (2,624,042)
The shareholders’ authorisation to buy back and dispose of own shares dated 5 June 2019 expired on 5
December 2020.
Annual Report 2020

12. BORROWINGS FROM BANKS AND OTHER LENDERS
31.12.2020
(Euro/million)
Term Loan 996 1 997
Unicredit Loan 200 - 200
Mediobanca Loan 100 - 100
Intesa Loan 150 - 150
Non-convertible bond 748 14 762
Convertible Bond 2017 489 - 489
Lease liabilities 143 52 195
Total 3,045 127 3,172
31.12.2019
(Euro/million)
Term Loan 995 1 996
Unicredit Loan 199 - 199
Mediobanca Loan 100 - 100
Intesa Loan 149 - 149
Convertible Bond 2017 478 - 478
Total 3,032 212 3,244
Borrowings from banks and other lenders and Bonds are analysed as follows:
(Euro/million) 31.12.2020 31.12.2019

CDP Loans 100 200
EIB Loans 118 135
Term Loan 997 996
Unicredit Loan 200 199
Mediobanca Loan 100 100
Intesa Loan 150 149
Other borrowings 61 48
Borrowings from banks and other lenders 1,726 1,827
Non-convertible bond 762 760
Convertible Bond 2017 489 478
Total 2,977 3,065
Prysmian Group
The Group’s principal credit agreements in place at the reporting date are as follows:
Revolving Credit Facility 2019

On 3 April 2019, the Group renewed a Euro 1,000 million five-year revolving credit facility with a syndicate
of leading Italian and international banks. The funds are available for business and working capital
needs, including the refinancing of existing facilities. The Revolving Credit Facility 2019 can also be used
for the issue of guarantees. At 31 December 2020, this facility was not being used.
CDP Loans
On 25 September 2017, Prysmian S.p.A. entered into an agreement with Cassa Depositi e Prestiti S.p.A.
(CDP) for a long-term cash loan for a maximum of Euro 100 million, drawn down in its entirety and later
repaid in full on its maturity date of 30 September 2020.
On 28 October 2019, the Group entered into a second agreement with Cassa Depositi e Prestiti S.p.A.
for a Euro 100 million long-term loan for 4 years and 6 months from the date of signing, with a bullet
repayment at maturity. The purpose of this loan is to finance part of the Group’s capital expenditure and
expenditure on research, development and innovation in Italy and Europe.
At 31 December 2020, the fair value of the CDP Loan 2019 approximates its carrying amount. Fair value
has been determined using valuation techniques that refer to observable market data (Level 2 of the fair
value hierarchy).
EIB Loans
On 18 December 2013, Prysmian S.p.A. entered into a first loan agreement with the European Investment
Bank (EIB) for Euro 100 million, to fund the Group’s research & development (R&D) programmes in
Europe over the period 2013-2016.
The EIB Loan was particularly intended to support projects developed in the Group’s R&D centres in six
countries (France, Great Britain, the Netherlands, Spain, Germany and Italy) and represented about
50% of the Prysmian Group’s investment expenditure in Europe during the period concerned.
The EIB Loan, received on 5 February 2014, is repayable in 12 equal half-yearly instalments commencing
5 August 2015 and ending 5 February 2021.
On 10 November 2017, Prysmian S.p.A. entered into a second loan agreement with the EIB for Euro 110
million to support the Group’s R&D programmes in Europe over the period 2017-2020. The loan was
received on 29 November 2017 and involves a bullet repayment at maturity on 29 November 2024.
Interest rate swaps have been arranged in respect of this loan, for an overall notional value of Euro 110
million, with the objective of hedging variable rate interest flows over the period 2018-2024.
At 31 December 2020, the fair value of the EIB Loans approximates their carrying amount. Fair value has
been determined using valuation techniques that refer to observable market data (Level 2 of the fair
value hierarchy).
After repayments against the EIB Loan 2013, the outstanding balance on the EIB Loans as at 31 December
2020 was Euro 118 million.
Term Loan
The Term Loan was drawn down by the Group in June 2018 for the purpose of having the necessary
financial resources to pay the General Cable purchase consideration, to refinance the existing debt
of General Cable and its subsidiaries and to finance acquisition-related fees, commissions, costs and
expenses. The Term Loan is for Euro 1 billion and is repayable on the fifth anniversary of the acquisition
closing date (6 June 2023).
Annual Report 2020

The interest rates applied are indexed to 6M and 3M Euribor, as the company so chooses. The line was
drawn down in full upon acquiring General Cable.
At 31 December 2020, the fair value of the Term Loan approximates its carrying amount. Fair value has
been determined using valuation techniques that refer to observable market data (Level 2 of the fair
value hierarchy).
Interest rate swaps have been arranged in respect of this loan, for an overall notional value of Euro 1,000
million, with the objective of hedging variable rate interest flows.
Unicredit Loan
On 15 November 2018, Prysmian S.p.A. entered into an agreement with Unicredit for a long-term cash
loan for a maximum amount of Euro 200 million for 5 years from the date of signing. The loan was drawn
down in full on 16 November 2018 and is repayable in a lump sum at maturity. The interest rate applied
is indexed to 6M and 3M Euribor, as the company so chooses.
The fair value of the loan approximates its carrying amount. Fair value has been determined using
valuation techniques that refer to observable market data (Level 2 of the fair value hierarchy).
Mediobanca Loan
On 20 February 2019, the Group entered into an agreement with Mediobanca for a Euro 100 million long-
term loan for 5 years from the date of signing. The loan was drawn down in full on 22 February 2019 and
is repayable in a lump sum at maturity. The interest rate applied is indexed to 6M and 3M Euribor, as the
company so chooses.
Intesa Loan
On 11 October 2019, the Group entered into an agreement with Intesa Sanpaolo for a Euro 150 million
long-term loan for 5 years from the date of signing. The loan was drawn down in full on 18 October 2019
and is repayable in a lump sum at maturity.
The following tables summarise the committed lines available to the Group at 31 December 2020 and 31
December 2019:
31.12.2020
(Euro/million)
Total lines Drawn Undrawn
Revolving Credit Facility 2019 1,000 - 1,000
CDP Loans 100 (100) -
EIB Loans 118 (118) -
Term Loan 1,000 (1,000) -
Unicredit Loan 200 (200) -
Mediobanca Loan 100 (100) -
Intesa Loan 150 (150) -
Total 2,668 (1,668) 1,000
Prysmian Group
31.12.2019
(Euro/million)
Total lines Drawn Undrawn
Revolving Credit Facility 2019 1,000 - 1,000
CDP Loans 200 (200) -
EIB Loans 135 (135) -
Term Loan 1,000 (1,000) -
Unicredit Loan 200 (200) -
Mediobanca Loan 100 (100) -
Intesa Loan 150 (150) -
Total 2,785 (1,785) 1,000
The Revolving Credit Facility 2019 is intended to finance ordinary working capital requirements and can
also be used for the issue of guarantees.
Bonds
As at 31 December 2020, Prysmian Group has the bond issues in place described in the following
paragraphs.
Non-convertible bond issued in 2015

On 30 March 2015 Prysmian S.p.A. completed the placement with institutional investors of an unrated
bond, on the Eurobond market, for a total nominal value of Euro 750 million. The bond, with an issue
price of Euro 99.002, has a 7-year maturity and pays a fixed annual coupon of 2.50%. The individual
bonds, maturing on 11 April 2022, have minimum denominations of Euro 100,000, plus integral multiples
of Euro 1,000.
The bond settlement date was 9 April 2015. The bond was admitted to the Luxembourg Stock Exchange,
where it is traded on the related regulated market.
At 31 December 2020, the non-convertible bond has a fair value of Euro 772 million. Fair value has
been determined with reference to the quoted price in the relevant market (Level 1 of the fair value
hierarchy).
Convertible Bond 2017

On 12 January 2017, the Board of Directors approved the placement of an equity-linked bond, known as
“Prysmian S.p.A. Euro 500 million Zero Coupon Equity Linked Bonds due 2022” maturing 17 January 2022
and reserved for institutional investors. The bond settlement date was 17 January 2017.
At the meeting held on 12 April 2017, the Company’s shareholders authorised:

y the convertibility of the Equity-Linked Bond;
y the proposal to increase share capital for cash, in single or multiple issues with the exclusion of
pre-emptive rights, by a maximum nominal amount of Euro 1,457,942.70, by issuing, in single
or multiple instalments, up to 14,579,427 ordinary shares of the Company, with the same
characteristics as its other outstanding ordinary shares, exclusively and irrevocably to serve the
Bond’s conversion.
The conversion price of the bonds of Euro 34.2949 was set by applying a 41.25% premium to the weighted
average price of the Company’s ordinary shares recorded on the Milan Stock Exchange between the start
and end of the book-building process during the morning of 12 January 2017.
Annual Report 2020

The bond matures in 2022.

In addition there is an option to call all (but not just a part) of the outstanding bonds at their principal
amount from 1 February 2020, should the value of the shares exceed 130% of the conversion price for a
specified period of time.
On 30 May 2017, the Bond was admitted to trading on the Third Market (a multilateral trading facility or
MTF) on the Vienna Stock Exchange.
The accounting treatment for the Convertible Bond 2017 has resulted in the recognition of an equity
component of Euro 48 million and a debt component of Euro 452 million, determined at the bond issue
date.
(Euro/million)
Issue value of convertible bond 500
Equity reserve for convertible bond (48)
Issue date net balance 452
Interest - non-monetary 39
Related costs (2)
Balance at 31 December 2020 489
At 31 December 2020, the fair value of the Convertible Bond 2017 (equity component and debt
component) is Euro 511 million, of which the fair value of the debt component is Euro 494 million. In the
absence of trading on the relevant market, fair value has been determined using valuation techniques
that refer to observable market data (Level 2 of the fair value hierarchy). As discussed in the note on
“Events after the reporting period”, on 26 January 2021 the Group repurchased 50% of the Convertible
Bond 2017.
General Cable convertible bond

This bond, originating from the acquisition of General Cable, was issued on 18 December 2009 for an
amount of USD 429.5 million; it allowed bondholders the option, in the event of an acquisition, to
request repayment of the nominal value plus a premium. The Bond was almost fully redeemed in the
two months following the acquisition, with the remaining debt at 31 December 2020 equal to USD 0.4
million.
Prysmian Group
Other borrowings from banks and other lenders and Lease liabilities
The following tables report movements in Borrowings from banks and other lenders:
Unicredit, Other
Loans for
Non-Conv. Mediobanca borrowings/
(Euro/million) CDP Loans EIB Loans Conv. Bond General Cable Total
Bond and Intesa Lease
acquisition
Loans liabilities
Balance at 200 135 478 760 996 448 227 3,244
31 December 2019
Currency translation - - - - - - (15) (15)
differences
New funds - - - - - - 26 26
Repayments (100) (17) - - - - (61) (178)
Amortisation of bank - - 1 2 1 2 - 6
and financial fees
and other expenses
IFRS 16 - - - - - - 79 79
Interest and other - - 10 - - - 10
movements
Balance at 100 118 489 762 997 450 256 3,172
31 December 2020
Loans for Unicredit, Other

Non-Conv. General Mediobanca borrowings/
(Euro/million) CDP Loans EIB Loans Conv. Bond Total
Bond Cable and Intesa Lease
acquisition Loans liabilities
Balance at 100 152 467 759 1,494 199 88 3,259
31 December 2018
Currency translation - - - - - - (2) (2)
differences
New funds 100 - - - - 250 15 365
Repayments - (17) - - (500) - (85) (602)
Amortisation of bank - - 1 2 1 (1) - 3
and financial fees
and other expenses
IFRS 16 - - - - - - 211 211
Interest and other - - 10 (1) 1 - - 10
movements
Balance at 200 135 478 760 996 448 227 3,244
31 December 2019
Annual Report 2020

The following tables provide an analysis by maturity and currency of borrowings from banks and other
lenders (excluding lease liabilities) at 31 December 2020 and 2019:
31.12.2020
Variable interest rate Fixed interest rate
(Euro/million)
Other Other Total
Euro USD Euro USD
currencies currencies
Due within 1 year 14 9 9 39 2 3 76
Due between 1 and 2 years - - - 1,238 - - 1,238
Due between 2 and 3 years 1,196 - - 1 - - 1,197
Due between 3 and 4 years 459 7 - - - - 466
Due between 4 and 5 years - - - - - - -
Due after more than 5 years - - - - - - -
Total 1,669 16 9 1,278 2 3 2,977
Average interest rate in period, 1.0% 1.8% 7.2% 2.1% 2.2% 5.3% 1.5%
as per contract
Average interest rate in period, 1.3% 1.8% 7.2% 2.1% 2.2% 5.3% 1.7%
including IRS effect (a)
(a) Interest rate swaps have been put in place to hedge interest rate risk on variable rate loans in Euro. At 31 December 2020, the total hedged amount equates
to 72.1% of Euro-denominated debt at that date. Interest rate hedges consist of interest rate swaps which exchange a variable rate (3 or 6-month Euribor for
loans in Euro) with an average fixed rate (fixed rate + spread) of 1.4% for Euro-denominated debt. The percentages representing the average fixed rate refer to
31 December 2020.
31.12.2019
Variable interest rate Fixed interest rate
(Euro/million)
Other Other Total
Euro USD Euro USD
currencies currencies
Due within 1 year 124 11 4 23 2 3 167
Due between 1 and 2 years 8 - - 2 - - 10
Due between 2 and 3 years - - - 1,225 1 - 1,226
Due between 3 and 4 years 1,194 - - 1 - - 1,195
Due between 4 and 5 years 459 8 - - - - 467
Due after more than 5 years - - - - - - -
Total 1,785 19 4 1,251 3 3 3,065
Average interest rate in period. 1.0% 3.0% 4.6% 2.1% 8.9% 5.1% 1.5%
as per contract
Average interest rate in period. 1.4% 3.0% 4.6% 2.1% 8.9% 5.1% 1.7%
including IRS effect
Risks relating to sources of finance and to financial investments/receivables are discussed in the section
entitled “Risks factors and uncertainties” forming part of the Directors’ Report.
Prysmian Group
NET FINANCIAL DEBT
(Euro/million) Note 31.12.2020 31.12.2019

CDP Loans 12 100 100
EIB Loans 12 110 118
Convertible Bond 2017 12 489 478
Term Loan 12 996 995
Unicredit Loan 12 200 199
Mediobanca Loan 12 100 100
Intesa Loan 150 149
Interest rate swaps 8 12 15
Other financial payables 12 9 12
Total long-term financial payables 12 3,057 3,047
CDP Loans 12 - 100

EIB Loans 12 8 17
Term Loan 12 1 1
Unicredit Loan 12 - -
Intesa Loan - -
Interest rate swaps 8 7 6
Forward currency contracts on financial transactions 8 9 4
Other financial payables 12 52 36
Total short-term financial payables 143 222
Total financial liabilities 3,200 3,269
Long-term financial receivables 5 2 2

Long-term bank fees 5 3 4
Financial assets at amortised cost 4 4
Forward currency contracts on financial transactions (current) 8 4 6
Short-term financial receivables 5 4 2
Short-term bank fees 5 2 2
Financial assets at fair value through profit or loss 7 20 27
Financial assets at fair value through other comprehensive income 4 11 11
Financial assets held for sale 10 1 1
Cash and cash equivalents 9 1,163 1,070
Total financial assets 1,214 1,129
Net financial debt 1,986 2,140
Annual Report 2020

The following table presents a reconciliation for the periods concerned of the Group’s net financial debt
to the amount reported in compliance with Consob Communication DEM/6064293 issued on 28 July
2006 and the CESR recommendation dated 10 February 2005 “Recommendations for the consistent
implementation of the European Commission’s Regulation on Prospectuses”:
(Euro/million) Note 31.12.2020 31.12.2019

Net financial debt - as reported above 1,986 2,140
Long-term financial receivables and other assets 5 6 6
Long-term bank fees 5 3 4
Net forward currency contracts on commercial transactions 8 1 2
Net metal derivatives 8 (92) (8)
Recalculated net financial debt 1,904 2,144
13. TRADE AND OTHER PAYABLES
31.12.2020
(Euro/million)
Trade payables - 1,958 1,958
Total trade payables - 1,958 1,958
Other payables:
Tax and social security payables 1 218 219
Advances from customers - 408 408
Payables to employees 1 134 135
Accrued expenses - 105 105
Other 4 130 134
Total other payables 6 995 1,001
Total 6 2,953 2,959
31.12.2019
(Euro/million)
Trade payables - 2,062 2,062
Total trade payables - 2,062 2,062
Other payables:
Tax and social security payables 2 201 203
Advances from customers - 357 357
Payables to employees 1 160 161
Accrued expenses - 139 139
Other 8 112 120
Total other payables 11 969 980
Total 11 3,031 3,042
Trade payables include around Euro 340 million (Euro 236 million at 31 December 2019) for the supply
of strategic metals (copper, aluminium and lead), whose payment terms are longer than normal for this
type of transaction.
Prysmian Group
Advances from customers include the liability for construction contracts, amounting to Euro 368 million
at 31 December 2020 and Euro 298 million at 31 December 2019. This liability represents the excess of
amounts invoiced by the Group over costs incurred plus accumulated profits (or losses), recognised
using the percentage of completion method.
The following table breaks down trade and other payables according to the currency in which they are
expressed:
(Euro/million) 31.12.2020 31.12.2019

Euro 1,314 1,326
US Dollar 774 724
British Pound 181 233
Bahraini Dinar 125 67
Chinese Renminbi (Yuan) 118 176
Brazilian Real 99 90
Omani Rial 39 41
Mexican Peso 38 25
Canadian Dollar 34 35
Philippine Peso 29 30
Romanian Leu 28 36
Australian Dollar 25 29
United Arab Emirates Dirham 24 68
Czech Koruna 17 5
Indonesian Rupiah 15 20
Colombian Peso 14 8
Swedish Krona 13 19
Hungarian Forint 13 11
Other currencies 59 99
Total 2,959 3,042
14. PROVISIONS FOR RISKS AND CHARGES
31.12.2020 (*)
(Euro/million)
Restructuring costs - 31 31
Legal, contractual and other risks 22 349 371
Environmental risks 5 92 97
Tax risks 12 80 92
Total 39 552 591
(*) Provisions for risks at 31 December 2020 include Euro 124 million for potential liabilities.
Annual Report 2020

31.12.2019 (*)
(Euro/million)
Restructuring costs 15 57 72
Legal, contractual and other risks 26 468 494
Environmental risks - 107 107
Tax risks 19 85 104
Total 60 717 777
(*) Provisions for risks at 31 December 2019 include Euro 170 million for potential liabilities.
The following table presents the movements in these provisions during the reporting period:
Legal,
Restruc- contractual Environ-
(Euro/million) Tax risks Total
turing costs and other mental risks
risks
Balance at 31 December 2019 72 494 107 104 777
Increases 20 107 - 4 131
Uses (57) (132) (2) (1) (192)
Releases (4) (82) - (1) (87)
Currency translation differences - (12) (7) (18) (37)
Other - (4) (1) 4 (1)
Balance at 31 December 2020 31 371 97 92 591
The provision for contractual, legal and other risks amounts to Euro 371 million at 31 December 2020
(Euro 494 million at 31 December 2019). This provision mainly includes provisions related to and arising
from business combinations, provisions for risks on ongoing and completed contracts and the provision
for Antitrust investigations, details of which now follow.
Antitrust - European Commission proceedings in the high voltage underground and submarine cables
business
The European Commission started an investigation in late January 2009 into several European and Asian
electrical cable manufacturers to verify the existence of alleged anti-competitive practices in the high
voltage underground and submarine cables markets.
On 2 April 2014, the European Commission adopted a decision under which it found that, between
18 February 1999 and 28 January 2009, the world’s largest cable producers, including Prysmian Cavi
e Sistemi S.r.l., had engaged in anti-competitive practices in the European market for high voltage
submarine and underground power cables. The European Commission held Prysmian Cavi e Sistemi
S.r.l. jointly liable with Pirelli & C. S.p.A. for the alleged infringement in the period 18 February 1999 -
28 July 2005, ordering them to pay a fine of Euro 67.3 million, and it held Prysmian Cavi e Sistemi S.r.l.
jointly liable with Prysmian S.p.A. and The Goldman Sachs Group Inc. for the alleged infringement in
the period 29 July 2005 - 28 January 2009, ordering them to pay a fine of Euro 37.3 million. Prysmian
filed an appeal against this decision with the General Court of the European Union along with an
application to intervene in the appeals respectively lodged by Pirelli & C. S.p.A. and The Goldman
Sachs Group Inc. against the same decision. Both Pirelli & C. S.p.A. and The Goldman Sachs Group Inc.
in turn submitted applications to intervene in the appeal brought by Prysmian against the European
Commission’s decision. The applications to intervene presented by Prysmian, Pirelli and The Goldman
Sachs Group Inc. were accepted by the General Court of the European Union. Prysmian did not incur
any financial outlay as a result of this decision having elected, pending the outcome of the appeals,
to provide bank guarantees as security against payment of 50% of the fine imposed by the European
Prysmian Group
Commission (amounting to approximately Euro 52 million) for the alleged infringement in both
periods. As far as Prysmian is aware, Pirelli & C. S.p.A. also provided the European Commission with a
bank guarantee for 50% of the value of the fine imposed for the alleged infringement in the period 18
February 1999 - 28 July 2005.
On 12 July 2018, the General Court of the European Union handed down its rulings on the appeals lodged
by the Prysmian Group, including General Cable. These rulings dismissed the appeals and confirmed the
previously imposed fines. Prysmian Group, including General Cable, disagreeing with the conclusions
reached by the General Court of the European Union, presented an appeal to the Court of Justice of the
European Union. The appeal filed by Prysmian was heard on 23 October 2019. In a ruling handed down
on 14 November 2019, the Court of Justice of the European Union dismissed General Cable’s appeal, thus
conclusively confirming the fine previously imposed by the European Commission. As a result, the Group
went ahead and paid a fine for Euro 2 million.
In rulings handed down on 24 September 2020, 28 October 2020 and 27 January 2021 respectively,
the Court of Justice dismissed the appeals brought by Prysmian, Pirelli & C. S.p.A. and The Goldman
Sachs Group Inc., thus upholding the liability and fine envisaged under the European Commission’s
original decision. Further to the ruling dismissing Prysmian’s appeal, the European Commission
requested Prysmian Group to pay the sum of approximately Euro 20 million, corresponding to half
of the fine for the period from 29 July 2005 to 28 January 2009. Following the ruling dismissing
the Pirelli appeal, the European Commission requested the Prysmian Group to pay the sum of
approximately Euro 37 million, corresponding to half of the fine for the period from 18 February
1999 to 28 July 2005. Using the provisions already set aside in previous years, the Group made this
payment on time.
Pirelli & C. S.p.A. has brought a civil action against Prysmian Cavi e Sistemi S.r.l. in the Milan Courts,
seeking to be held harmless for all claims made by the European Commission in implementation of its
decision and for any expenses related to such implementation. Prysmian Cavi e Sistemi S.r.l. started
legal proceedings in February 2015, requesting that the claims brought by Pirelli & C. S.p.A. be dismissed
in their entirety and that it should be Pirelli & C. S.p.A. which holds harmless Prysmian Cavi e Sistemi
S.r.l., with reference to the alleged infringement in the period 18 February 1999 - 28 July 2005, for
all claims made by the European Commission in implementation of its decision and for any expenses
related to such implementation. The proceedings were then stayed by order of the court concerned in
April 2015, pending the outcome of the appeals made against the European Commission’s decision by
both Prysmian and Pirelli in the European Courts. Pirelli challenged this decision before the Court of
Cassation, Italy’s highest court of appeal, which confirmed the stay of execution ordered by the Milan
Courts. Following the conclusion of the appeal proceedings before the European Court of Justice, Pirelli
has resumed the proceedings in the Court of Milan.
Antitrust - Other proceedings in the high voltage underground and submarine cables business in jurisdictions
other than the European Union
In Brazil, the local antitrust authority started an investigation into several manufacturers of high
voltage underground and submarine cables, amongst whom Prysmian, notified of this investigation
in 2011. Prysmian’s preliminary defence was rejected by the local competition authority in a statement
issued in February 2015. On 3 January 2019, the authority informed Prysmian that the pre-trial phase had
been completed, in response to which Prysmian submitted its brief on 18 January 2019. On 11 February
2019, as a result of its investigation the general superintendence of the Brazilian antitrust authority
(Administrative Council for Economic Defense – “CADE”) published a statement of objections (Technical
Note) in the Brazilian Federal Official Gazette.
On 15 April 2020, the CADE Tribunal issued the operative part of the decision under which it held Prysmian
liable for the contested infringement in the period from February 2001 to March 2004 and ordered it
to pay a fine of BRL 10.2 million (approximately Euro 1.8 million). Prysmian Group has filed an appeal
against the CADE ruling.
Annual Report 2020

Antitrust - Claims for damages as a result of the European Commission’s 2014 decision
During 2015, National Grid and Scottish Power, two British operators, filed claims in the High
Court of London against certain cable manufacturers, including Prysmian Group companies, to
obtain compensation for damages purportedly suffered as a result of the alleged anti-competitive
practices fined by the European Commission in the decision adopted in April 2014. On 29 July 2020,
an agreement was finalised between Prysmian Group and Scottish Power whereby the dispute
between the parties was settled out of court. On 10 November 2020, an agreement was also finalised
between Prysmian Group and National Grid whereby the dispute between the parties was settled out
of court. The pending legal actions have therefore been abandoned and will no longer be pursued.
In both cases, the provisions set aside by the Group were sufficient to cover the amounts negotiated
in settlement.
During the first few months of 2017, in addition to those mentioned in the preceding paragraph, other
operators belonging to the Vattenfall Group filed claims in the High Court of London against certain
cable manufacturers, including companies in the Prysmian Group, to obtain compensation for damages
purportedly suffered as a result of the alleged anti-competitive practices fined by the European
Commission.
During the month of June 2020, the Prysmian companies concerned presented their defence as well as
serving a summons on another party to which the EU decision was addressed.
On 2 April 2019, a writ of summons was served, on behalf of Terna S.p.A., on Pirelli, Nexans and companies
in the Prysmian Group, demanding compensation for damages purportedly suffered as a result of the
alleged anti-competitive practices fined by the European Commission in its April 2014 decision. This
action has been brought before the Court of Milan. On 24 October 2019, the Prysmian Group companies
concerned responded by presenting their preliminary defence. By an order dated 3 February 2020, the
Court upheld the points raised by the defendants, giving Terna until 11 May 2020 to complete its writ of
summons and scheduling a hearing for 20 October 2020. Terna duly completed its summons, which was
filed on time.
In addition, on 4 April 2019, the Group learned that the following legal actions had been brought in the
Court of London, both of which involving claims for damages purportedly suffered as a result of the
alleged anti-competitive practices fined by the European Commission:
y action by Scottish and Southern Energy (SSE) Group companies against certain Prysmian Group
companies involving a series of onshore and submarine projects. On 5 September 2019, a writ of
summons was served in which the plaintiffs substantiated and quantified their claim for damages.
On 5 November 2019, the Prysmian Group companies concerned responded by presenting their
preliminary defence;
y action by Greater Gabbard Offshore Winds Limited and SSE companies against certain Group
companies. On 5 September 2019, a writ of summons was served in which the plaintiffs substantiated
and quantified their claim for damages. On 5 November 2019, the Prysmian Group companies
concerned responded by presenting their preliminary defence.
On 23 April 2020, the initial hearing was held for both the above proceedings, which are being dealt with
jointly and are now in the pre-trial phase.
On 2 April 2019, a writ of summons was served, on behalf of Electricity & Water Authority of Bahrain, GCC
Interconnection Authority, Kuwait Ministry of Electricity and Water and Oman Electricity Transmission
Company, on certain cable manufacturers, including companies in the Prysmian Group, on Pirelli &
C. S.p.A. and The Goldman Sachs Group Inc. This action, brought in the Court of Amsterdam, once
again involved a claim for compensation for damages purportedly suffered as a result of the alleged
Prysmian Group
anti-competitive practices fined by the European Commission. On 18 December 2019, the Prysmian
Group companies concerned presented their preliminary defence, the hearing of which took place
on 8 September 2020, at the end of which the judge reserved passing judgement. On 25 November
2020, the Court of Amsterdam handed down a ruling under which it upheld the submissions made and
declined jurisdiction over defendants not based in the Netherlands and thus excluded them from the
proceedings. On 19 February 2021, the plaintiffs announced that they had filed an appeal against this
ruling.
In view of the circumstances described, the Directors, assisted also by their legal advisors, have
recognised a level of provisions deemed appropriate to cover the potential liabilities related to the
matters in question.
Prysmian S.p.A. and Prysmian Cavi e Sistemi S.r.l. were summoned by Nexans France SAS and Nexans
SA to appear before the Court of Dortmund (Germany) in notifications dated 24 and 25 May 2018
respectively. The plaintiffs have asked the Court concerned to ascertain the existence of joint and
several liability between Prysmian S.p.a. and Prysmian Cavi e Sistemi S.r.l., on the one hand, and
Nexans France SAS and Nexans SA, on the other, for any damages suffered by third parties in Germany
as a result of the alleged cartel in the market for high voltage underground and submarine power
cables condemned in the European Commission’s decision. The Court concerned has issued a stay of
execution dated 3 June 2019 pending the outcome of the appeal against the European Commission’s
decision brought before the European Courts by both Prysmian and Nexans. Following the conclusion
of the appeal proceedings pending before the European Court of Justice, Nexans has resumed the
previously stayed legal action.
On 2 April 2019, certain Group companies received a letter sent on behalf of Tennet TSO BV claiming
compensation for damages purportedly suffered as a result of the alleged anti-competitive practices
fined by the European Commission. However, the letter does not include any quantification of the
damages and explicitly states that its purpose, among others, is to avoid expiry of the statute of
limitations.
Even though a negative outcome is considered likely, the Directors have been unable to estimate
the amount to provide against this and the other actions listed above because the plaintiffs have not
quantified their claims.
Lastly, Prysmian Cavi e Sistemi S.r.l. and Prysmian S.p.A. were served with a writ of summons on 24
October 2019 from Pirelli & C. S.p.A. in which the latter seeks to be released from any third-party claim
for damages relating to the practices forming the subject of the European Commission’s decision and
to be compensated for the damages allegedly incurred and quantified, which it has suffered through
Prysmian having sought, in certain pending proceedings, to attribute liability to Pirelli for the illegal
practices determined by the European Commission in the period from 1999 to 2005. In November 2020,
the Group companies filed an action requesting that the claims brought by Pirelli & C. S.p.A. be rejected
in their entirety and that it be Pirelli & C.. S.p.A. which should hold the Group companies harmless
from any third-party claim for damages relating to the practices forming the subject of the European
Commission’s decision.
Based on the information currently available, and believing this potential liability unlikely to crystallise,
the Directors are of the opinion not to make any provision.
Antitrust - Other claims for damages

On 22 March 2019, National Grid communicated that it had brought a new action in the High Court of
London against certain Group companies in which it claims compensation for damages purportedly
suffered through alleged anti-competitive practices employed over a period running from the 1970s
Annual Report 2020

until 1997. On 10 November 2020, the parties reached an agreement under which the dispute was
settled out of court. The pending legal action has therefore been abandoned and will no longer be
pursued.
Antitrust - Other investigations

At the end of February 2016, the Spanish antitrust authorities initiated proceedings to verify the existence
of anti-competitive practices by local low voltage cable manufacturers and distributors, including the
Group’s local subsidiaries. The Spanish competition authority then sent a statement of objections to
some of the Group’s local subsidiaries in January 2017.
On 24 November 2017, the local competition authority notified the Group’s Spanish subsidiaries of a
decision under which they were held liable for the alleged infringements in the period from June 2002
to June 2015 and were jointly and severally ordered to pay a fine of Euro 15.6 million. The Group’s Spanish
subsidiaries have appealed against this decision. The appeal decision is still pending.
The decision of 24 November 2017 also held the Spanish subsidiaries of General Cable liable for breach of
local antitrust law. However, they have obtained immunity from paying the related fine (quantified at
about Euro 12.6 million) having filed for leniency and collaborated with the local competition authority
in its investigations. The Spanish subsidiaries of General Cable have also appealed against the decision
of the local competition authority; the appeal decision is still pending.
As at the date of writing the present report, the Chilean Antitrust Authority is conducting an investigation
into the Chilean subsidiary Colada Continua Chilena S.A..
In view of the circumstances described, the Directors, also assisted by their legal advisors and in
consistency with the accounting policies, have adjusted the related provisions for risks to a level deemed
appropriate to cover the potential liabilities for the matters in question.
Antitrust - Claims for damages ensuing from other investigations

In February 2020, a writ of summons was served on a number of cable manufacturers, including
Prysmian Group’s Spanish subsidiaries, under which companies belonging to the Iberdrola Group have
claimed compensation for damages supposedly suffered as a result of the alleged anti-competitive
practices condemned by the Spanish competition authority in its decision of 24 November 2017. The case
is pending before the Court of Barcelona.
In July 2020, a writ of summons was served on a number of cable manufacturers, including Prysmian
Group’s Spanish subsidiaries, under which companies belonging to the Endesa Group have claimed
compensation for damages supposedly suffered as a result of the alleged anti-competitive practices
condemned by the Spanish competition authority in its decision of 24 November 2017. The case is
pending before the Court of Barcelona.
Based on the information currently available, and believing these potential liabilities unlikely to
crystallise, the Directors are of the opinion not to make any provision.
As at 31 December 2020, the provision for the above Antitrust matters amounts to approximately Euro
120 million.
Despite the uncertainty of the outcome of the investigations and legal actions in progress, the amount
of this provision is considered to represent the best estimate of the liability based on the information
now available.
Warranty provisions
Provisions for legal, contractual and other risks include those for warranties against completed projects,
among which the most significant is the warranty provision for the Western Link contract. In light of the
Prysmian Group
agreement reached with the customer in January 2021, which revised the terms of the original contract
and helped reduce the Group’s risk exposure in this regard, potential liabilities arising from events
that could occur during the warranty period are considered to be adequately covered by the provisions
already set aside.
15. EMPLOYEE BENEFIT OBLIGATIONS
The Group provides a number of post-employment benefits through schemes that include defined
benefit plans and defined contribution plans.
The defined contribution plans require the Group to pay, under legal or contractual obligations,
contributions into public or private insurance institutions. The Group fulfils its obligations through
payment of the contributions. At the financial reporting date, any amounts accrued but not yet paid
to such institutions are recorded in “Other payables”, while the related costs, accrued on the basis of
employee service, are recognised in “Personnel costs”.
The defined benefit plans mainly refer to Pension plans, Statutory severance benefit (for Italian
companies), Medical benefit plans and other benefits such as seniority bonuses.
The liabilities arising under these plans, net of any assets serving such plans, are recognised in Employee
benefit obligations and are measured using actuarial techniques.
Employee benefit obligations are analysed as follows:
(Euro/million) 31.12.2020 31.12.2019

Pension plans 419 409
Italian statutory severance benefit 15 15
Medical benefit plans 30 27
Termination and other benefits 42 43
Total 506 494
Pension plan amendments in 2020
There were no significant amendments to existing pension plans during 2020. The following notes
provide more details about the three main types of benefit: pension plans, statutory severance benefit
and medical benefit plans.
PENSION PLANS
Pension plans relate to defined benefit pension schemes that can be “Funded” or “Unfunded”.
Pension plan liabilities are generally calculated according to employee length of service with the
company and the remuneration paid in the period preceding cessation of employment.
Liabilities for “Funded pension plans” are funded by contributions paid by the employer and, in some
cases, by employees, into a separately managed pension fund. The fund independently manages
and administers the amounts received, investing in financial assets and paying benefits directly
to employees. The Group’s contributions to such funds are defined according to the requirements
established in the individual countries.
Annual Report 2020

Liabilities for “Unfunded pension plans” are managed directly by the employer who sees to paying the
benefits to employees. These plans have no assets to cover the liabilities.
Pension plan obligations and assets are analysed as follows at 31 December 2020 and 31 December
2019:
31.12.2020
(Euro/million) United Other
Germany Great Britain France Total
States countries
Funded pension obligations:
Present value of obligation - 226 2 142 88 458
Fair value of plan assets - (135) (2) (122) (81) (340)
Asset ceiling - - - - - -
Unfunded pension obligations:
Present value of obligations 243 - 36 4 18 301
Total 243 91 36 24 25 419
31.12.2019
(Euro/million) United Other
Germany Great Britain France Total
States countries
Funded pension obligations:
Present value of obligation - 214 2 151 93 460
Fair value of plan assets - (131) (2) (127) (83) (343)
Asset ceiling - - - - - -
Unfunded pension obligations:
Present value of obligations 237 - 33 6 16 292
Total 237 83 33 30 26 409
At 31 December 2020, the net value of funded plans in “Other countries” of Euro 7 million mainly refers
to Canada, Mexico and Spain.
At 31 December 2020, unfunded plans in “Other countries” primarily refer to Sweden and Chile, the
present value of whose obligations amounts to Euro 9 million and Euro 4 million respectively.
Prysmian Group
Changes during the year in pension plan obligations are analysed as follows:

Opening defined benefit obligation 752 677
Current service costs 7 7
Interest costs 13 19
Administrative costs and taxes 2 2
Actuarial (gains)/losses recognised in equity - experience (3) (5)
Actuarial (gains)/losses recognised in equity - demographic assumptions - (5)
Actuarial (gains)/losses recognised in equity - financial assumptions 52 83
Disbursements from plan assets (24) (26)
Disbursements paid directly by the employer (13) (15)
Currency translation differences (29) 17
Reclassifications and legislative amendments to existing plans - -
Reclassification to assets and liabilities held for sale 2 (2)
Closing defined benefit obligation 759 752
Changes during the year in pension plan assets are analysed as follows:

Opening plan assets 343 298
Interest income on plan assets 8 10
Actuarial gains/(losses) recognised in equity 25 36
Contributions paid in by the employer 23 26
Contributions paid in by plan participants - -
Disbursements (37) (39)
Plan settlements - -
Closing plan assets 340 343
At 31 December 2020, pension plan assets consisted of equities (36.6% versus 35.3% in 2019),
government bonds (11.9% versus 11.6% in 2019), corporate bonds (19.1% versus 21.4% in 2019), and
other assets (32.4% versus 31.7% in 2019).
The value of the asset ceiling was zero at 31 December 2020, like at 31 December 2019.
Annual Report 2020

Pension plan costs recognised in the income statement are analysed as follows:
2020
(Euro/million) Great United Other
Germany France Total
Britain States countries
Personnel costs 2 - 2 1 4 9
Interest costs 2 4 - 5 2 13
Expected returns on plan assets - (2) - (4) (2) (8)
Total pension plan costs 4 2 2 2 4 14
2019
(Euro/million) Great United Other
Germany France Total
Britain States countries
Personnel costs 2 - 2 2 3 9
Interest costs 4 5 - 6 3 18
Expected returns on plan assets - (3) - (5) (2) (10)
Total pension plan costs 6 2 2 3 4 17
More details can be found in Note 21. Personnel costs.
As evident from the preceding tables, the most significant plans at 31 December 2020 in terms of accrued
employee benefit obligations are those managed in the following countries:
y Germany;
y Great Britain;
y France;
y United States.
Pension plans in these countries account for more than 90% of the related liability.
The principal risks to which they are exposed are described below:
Germany
There are eight types of pension plan in Germany, most of which final salary plans with the retirement
age generally set at 65. Although most plans are closed to new members, additional costs may need to
be recognised in the future. As at 31 December 2020, the plans had an average duration of 14.2 years
(14.4 years at 31 December 2019).
Total plan membership is made up as follows:
31.12.2020 31.12.2019
Number of Number of
participants participants
Active 1,072 1,336
Deferred 1,263 1,040
Pensioners 2,222 2,180
Total membership 4,557 4,556
Prysmian Group
The German plans do not have any assets that fund the liabilities, in line with the practice in this country;
the Group pays these benefits directly.
The benefits payable in 2021 will amount to Euro 9 million (Euro 9 million at 31 December 2019 for
2020).
The increase in benefits, and so in the recorded liability and service costs, mainly depends on inflation,
salary growth and the life expectancy of plan members. Another variable to consider when determining
the amount of the liability and service costs is the discount rate, identified by reference to market yields
of AA corporate bonds denominated in Euro.
Great Britain
Two defined benefit plans were in operation at 31 December 2020: the Draka pension fund and the
Prysmian pension fund. Both are final salary plans, in which the retirement age is generally set at 65
for the majority of plan participants. Neither plan has admitted any new members or incurred any new
liabilities since 2013. Currently all employees participate in defined contribution plans.
As at 31 December 2020, the plans had an average duration of approximately 19.6 years (approximately
19.7 years at 31 December 2019).
31.12.2020 31.12.2019
Draka Prysmian Draka Prysmian
pension pension Total pension pension Total
fund fund Number of fund fund Number of
Number of Number of participants Number of Number of participants
participants participants participants participants
Active - - - - - -
Deferred 492 547 1,039 492 547 1,039
Pensioners 458 379 837 458 379 837
Total membership 950 926 1,876 950 926 1,876
Both plans operate under trust law and are managed and administered by a Board of Trustees on behalf
of members and in accordance with the terms of the Trust Deed and Rules and current legislation. The
assets that fund the liabilities are held by the Trust, for both plans.
For the purposes of determining the level of funding, the Trustees appoint an actuary to value the
plans every three years, with annual updates. The latest valuations of the Draka pension fund and the
Prysmian pension fund were conducted as at 31 March 2018 and 31 December 2017 respectively. The
contribution levels are also set every three years when performing the valuations to determine the level
of plan funding, but can also be revised annually.
The benefits payable in 2021 will amount to Euro 4 million (Euro 4 million at 31 December 2019 for
2020).
The Trustees decide on the investment strategy in agreement with the company. The strategies differ
for both plans. In particular, the Draka pension fund has invested its assets as follows: 17% in equities,
38% in bonds and 45% in other financial instruments. The Prysmian pension fund has invested its assets
as follows: 35% in bonds and the remaining 65% in other financial instruments.
In Great Britain, the main risk for the Group is that mismatches between the expected return and the
actual return on plan assets would require contribution levels to be revised.
Annual Report 2020

The liabilities and service costs are sensitive to the following variables: life expectancy of plan
participants and future growth in benefit levels. Another variable to consider when determining the
amount of the liability is the discount rate, identified according to market yields of AA corporate bonds
denominated in GB pounds.
France
There were five pension plans in operation in France at 31 December 2020, of which four are unfunded
retirement benefit plans and one is a partially funded pension plan.
All the plans generally set the retirement age at 64 for office workers and 63 for other categories. They
are all open to new members, except for the funded plan which does not admit new members or incur
new liabilities. As at 31 December 2020, the plans had an average duration of approximately 11.47 years
(11.4 years at 31 December 2019).
31.12.2020 31.12.2019
Number of Number of
Active 2,689 2,517
Deferred N/A N/A
Pensioners 25 25
In France, the principal risk for the Group is salary growth, which affects the benefits that the company
has to pay the employee. In the case of the retirement benefit plans, the benefits vest only upon
attaining retirement age; consequently, the cost to the company will depend on the probability that
an employee does not leave the company before that date. There are no life expectancy risks relating
to these plans. The liabilities and service costs are sensitive to the following variables: inflation, salary
growth, life expectancy of plan participants and the discount rate, determined according to market
yields of AA corporate bonds denominated in Euro.
The main risks for the funded plan are those associated with inflation and life expectancy, both of which
affect contribution levels. The plan’s assets are entirely invested in insurance funds, whose main risk
is that a mismatch between the expected return and the actual return on plan assets would require a
revision of contribution levels.
United States
There were four pension plans in operation in the United States at 31 December 2020, of which two are
funded plans that pay an income upon retirement; one is a supplementary unfunded plan and another
is an unfunded deferred compensation plan.
All the pension plans generally set the retirement age at 65. They are all closed to new members and
do not admit new members or incur new liabilities, except for the “Master Pension Plan” into which
payments can still be made for employees already enrolled in the plan. As at 31 December 2020, the
plans had an average duration of approximately 9.2 years (9 years at 31 December 2019).
Prysmian Group
31.12.2020 31.12.2019
Number of Number of
Active 453 490
Deferred 581 631
Pensioners 2,896 2,968
The benefits and contributions payable in 2021 will amount to Euro 1 million (Euro 6 million al 31
December 2019 for 2020).
The weighted average actuarial assumptions used to value the pension plans in the principal countries
(Germany, Great Britain, France and United States) are as follows:
31.12.2020
Germany Great Britain France United States
Interest rate 0.60% 1.30% 0.50% 2.30%
Expected future 2.26% N/A 1.58% 2.50%
salary increase
Expected increase in 1.70% N/A 1.00% 0.00%
pensions
Inflation rate 1.70% 3.10% 1.58% 3.00%
Life expectancy Male Female Male Female Male Female Male Female
at age 65:
People currently 20.40 23.80 21.30 23.20 24.16 27.63 19.93 21.83
aged 65
aged 50
31.12.2019
Interest rate 1.00% 1.90% 0.75% 3.20%
Expected future 2.21% N/A 1.83% 2.50%
salary increase
Expected increase in 1.75% N/A 1.00% 0.00%
pensions
Inflation rate 1.75% 3.20% 1.83% 3.00%
Life expectancy Male Female Male Female Male Female Male Female
at age 65:
aged 65
aged 50
Annual Report 2020

The following table presents a sensitivity analysis of the effects of an increase/decrease in the most
significant actuarial assumptions used to determine the present value of benefit obligations, namely
the interest rate, inflation rate and life expectancy.
Inflation rate sensitivity includes those effects relating to assumptions about salary increases and
increases in benefits.
31.12.2020
Interest rate - 0.50% + 0.50% - 0.50% +0.50% - 0.50% + 0.50% - 0.50% + 0.50%
Change in pension 7.35% -6.63% 10.20% -9.11% 5.90% -5.55% 4.62% -4.34%
plans
Inflation rate -0.25% + 0.25% - 0.25% + 0.25% - 0.25% + 0.25% - 0.25% + 0.25%
Change in pension -3.04% 3.10% -3.53% 3.69% -2.90% 2.99% 0.00% 0.00%
plans
31.12.2020
1-year increase in life expectancy 5.84% 3.51% 1.59% 3.13%
31.12.2019
Interest rate - 0.50% + 0.50% - 0.50% +0.50% - 0.50% + 0.50% - 0.50% + 0.50%
Change in pension 7.43% -6.76% 10.19% -9.10% 5.83% -5.49% 4.50% -4.16%
plans
Inflation rate - 0.25% + 0.25% - 0.25% + 0.25% - 0.25% + 0.25% - 0.25% + 0.25%
Change in pension -2.68% 2.74% -3.54% 3.71% -2.89% 3.00% -0.04% 0.04%
plans
31.12.2019
1-year increase in life expectancy 5.70% 3.51% 1.71% 2.94%
STATUTORY SEVERANCE BENEFIT
Statutory severance benefit refers to Italian companies only and is analysed as follows:

Actuarial (gains)/losses recognised in equity 1 1
Net actuarial losses of Euro 1 million have been recognised at 31 December 2020, basically reflecting
variations in the associated economic parameters (the discount and inflation rates).
Prysmian Group
Under Italian law, the amount due to each employee accrues with service and is paid when the employee
leaves the company. The amount due upon termination of employment is calculated on the basis of the
length of service and the taxable remuneration of each employee. The liability is adjusted annually for
the official cost of living index and statutory interest, and is not subject to any vesting conditions or
periods, or any funding obligation; there are therefore no assets that fund this liability.
The benefits are paid in the form of a lump sum, in accordance with the related rules. In certain
circumstances, the benefit plan also allows the payment of partial advances against the full amount of
the accrued benefit.
The main risk is the volatility of the inflation rate and the interest rate, as determined by the market
yield on AA corporate bonds denominated in Euro.
The actuarial assumptions used to value statutory severance benefit are as follows:
31.12.2020 31.12.2019
Interest rate 0.50% 0.75%
Expected future salary increase 1.50% 1.50%
Inflation rate 1.50% 1.50%
significant actuarial assumptions used to determine the present value of benefit obligations, namely
the interest rate and inflation rate:
31.12.2020 31.12.2019
Interest rate -0.50% +0.50% -0.50% +0.50%
Change in statutory severance benefit 4.93% -4.70% 5.04% -4.80%
Inflation rate -0.25% +0.25% -0.25% +0.25%
Change in statutory severance benefit -1.36% 1.70% -1.38% 1.74%
MEDICAL BENEFIT PLANS
Some Group companies provide medical benefit plans for retired employees. In particular, the Group
funds medical benefit plans in Brazil, Canada and the United States. The US plans account for more than
90% of the total obligation for medical benefit plans.
Apart from interest rate and life expectancy risks, medical benefit plans are particularly susceptible to
increases in the cost of meeting claims. None of the medical benefit plans has any assets to fund the
associated obligations, with benefits paid directly by the employer.
The obligation in respect of medical benefit plans is analysed as follows:

Personnel costs 2 2
Interest costs - 1
Actuarial (gains)/losses recognised in equity - experience 5 (5)
Annual Report 2020

The actuarial assumptions used to value medical benefit plans are as follows:
31.12.2020 31.12.2019
Interest rate 2.43% 3.34%
Expected future salary increase 0.00% 0.00%
Increase in claims 5.08% 5.18%
Life expectancy at age 65: Male Female Male Female
People currently aged 65 20.49 22.50 20.60 22.60
People currently aged 50 21.58 23.52 22.10 24.30
significant actuarial assumptions used to determine the present value of benefit obligations, such as
the interest rate, inflation rate/growth in medical care costs and life expectancy.
31.12.2020 31.12.2019
Interest rate -0.5% +0.5% -0.5% +0.5%
Change in medical benefit plans 8.83% -7.90% 8.39% -7.45%
Medical inflation rate -0.25% +0.25% -0.25% +0.25%
Change in medical benefit plans -4.05% 4.31% -3.66% 3.89%
31.12.2020 31.12.2019
1-year increase in life expectancy 4.19% 3.94%
Headcount
Average headcount in the period is reported below, compared with closing headcount at the end of each
period:
2020
Average % Closing %
Blue collar 20,883 73% 20,730 73%
White collar and management 7,579 27% 7,591 27%
Total 28,462 100% 28,321 100%
2019
Average % Closing %
Blue collar 21,565 73% 21,022 73%
White collar and management 7,861 27% 7,692 27%
Total 29,426 100% 28,714 100%
Prysmian Group
16. DEFERRED TAXES
The balance of deferred tax assets at 31 December 2020 is Euro 207 million (Euro 170 million at 31
December 2019) while that of deferred tax liabilities is Euro 195 million (Euro 213 million at 31 December
2019).
Movements in deferred taxes are analysed as follows:
(Euro/million) Fixed assets Provisions (1) Tax losses Other Total

Balance at 31.12.2018 (298) 135 11 104 (48)
Currency translation differences (2) (1) - - (3)
Impact on income statement 16 28 - (48) (4)
Impact on equity - 11 - 1 12
Balance at 31.12.2019 (284) 173 11 57 (43)
Currency translation differences 22 (3) - 2 21
Impact on income statement 28 26 - (11) 43
Impact on equity - 8 - (21) (13)
Other and reclassifications 1 1 - 2 4
Balance at 31.12.2020 (232) 205 11 (26) 12
(1) These comprise Provisions for risks and charges (current and non-current) and Employee benefit obligations.
The Group has not recognised any deferred tax assets on Euro 1,052 million in carryforward tax losses at
31 December 2020 (Euro 1,108 million at 31 December 2019). Unrecognised deferred tax assets relating to
the above carryforward tax losses and to deductible temporary differences amount to Euro 277 million
(Euro 292 million at 31 December 2019).
At 31 December 2020, it has however recognised deferred tax assets of Euro 13 million on carryforward
tax losses of Euro 47 million (Euro 85 million at 31 December 2019).
The following table presents details of carryforward tax losses:
(Euro/million) 31.12.2020 31.12.2019

Carryforward tax losses 1,099 1,193
of which recognised as deferred tax assets 47 85
Carryforward expires within 1 year 35 12
Carryforward expires between 2-5 years 53 89
Carryforward expires beyond 5 years 44 43
Unlimited carryforward 967 1,049
17. SALES

Finished goods 8,825 9,854
Construction contracts 806 1,280
Services 87 111
Other 298 274
Total 10,016 11,519
Annual Report 2020

18. CHANGE IN INVENTORIES OF FINISHED GOODS AND WORK IN PROGRESS

Finished goods 14 9
Work in progress 55 (25)
Total 69 (16)
19. OTHER INCOME

Rental income 2 1
Insurance reimbursements and indemnities 30 36
Gains on disposal of property 20 2
Other revenue and income 47 57
Total 99 96
20. RAW MATERIALS, CONSUMABLES AND SUPPLIES

Raw materials 6,492 7,241
Change in inventories (28) (23)
Total 6,464 7,218
21. PERSONNEL COSTS

Wages and salaries and social security 1,270 1,370
Fair value - stock options 31 (1)
Pension plans 8 9
Medical benefit costs 2 2
Termination and other benefits 29 19
Company reorganisation 24 69
Other personnel costs 45 71
Total 1,409 1,539
Prysmian Group
Share-based payments
At 31 December 2020, the Prysmian Group had share-based compensation plans in place for managers
and employees of Group companies and for members of the Parent Company’s Board of Directors. These
plans are described below.
Employee share purchase plan (2021) – YES 2.0
The Plan is based on financial instruments reserved for employees of Prysmian S.p.A. and/or of its
subsidiaries, including some of the Company’s Directors; the Board of Directors has been granted the
relevant powers to establish and implement this plan.
The main objectives of the Plan are:

y to strengthen the sense of belonging to the Group by offering employees an opportunity to share in
its successes, through equity ownership;
y to align the interests of Prysmian Group’s stakeholders, employees and shareholders, by identifying
a common goal of creating long-term value.
The Plan offers the opportunity to purchase Prysmian’s ordinary shares on preferential terms, with a
maximum discount of 25% on the stock price, given in the form of treasury shares, except for certain
managers, for whom the discount is 15%, and the executive Directors and key management personnel,
for whom the discount is 1% on the stock price.
The Plan therefore qualifies as “of particular relevance” within the meaning of art. 84-bis, par. 2 of the
Issuer Regulations.
The shares purchased or received free of charge are subject to a retention period, during which they
cannot be sold. The Plan contains purchase windows also in the coming year.
All those who have signed up to the plan have also received an entry bonus of six free shares, taken from
the Company’s portfolio of treasury shares, only available at the time of first purchase. If an employee
had already participated in the 2013 plan, they have received eight shares as an entry bonus to the new
plan. For those who already purchased shares in a 2017 purchase window, the entry bonus is three shares.
The shares purchased by participants, as well as those received by way of discount and entry bonus, will
generally be subject to a retention period during which they cannot be sold and the length of which will
vary according to local regulations.
The fair value of the options has been determined using the Montecarlo binomial pricing model, based
on the following assumptions:
Window
Grant date 14 November 2016
Share purchase date from 16 February 2017 to 16 September 2021
End of retention period from 16 February 2020 to 16 September 2024
Residual life (in years) 0.72
Share price at grant date (Euro) 23.40
Expected volatility from 31.74% to 36.05%
Risk-free interest rate from 0.70% to 0.75%
Expected dividend % 2.07%
Option fair value at grant date (Euro) from €21.57 to €23.15
Annual Report 2020

Costs of Euro 2 million have been recognised as “Personnel costs” in the income statement at 31 December
2020 for the fair value of options granted under this plan.
The following table provides details about movements in the plan:
31.12.2020
Number of options
Options at start of year 215,000
Granted -
Change in expected participations (31,922)
Cancelled -
Exercised (75,578)
Options at end of year 107,500
The information memorandum, prepared under art. 114-bis of Legislative Decree 58/98 and
describing the characteristics of the above plan, is publicly available on the Company’s website at
http://www.prysmiangroup.com/, from its registered offices and from Borsa Italiana S.p.A..
Long-term incentive plan 2020-2022
On 12 November 2019, after receiving the Remuneration Committee’s favourable opinion, the Board
of Directors adopted a resolution to revoke the LTI Plan 2018-2020, deeming that the incentive and
retention functions that characterised its nature and constituted its purposes no longer existed. After
extensive benchmarking of best market practices and after gathering feedback from investors, the
Remuneration Committee presented the Board of Directors with a proposal to adopt a new long-term
incentive plan (LTI), subsequently approved by the Shareholders’ Meeting on 28 April 2020 pursuant to
art. 114-bis, par. 1, of Italian Legislative Decree no. 58/1998. The key drivers of change to which the new
LTI Plan responds are:
y simplification and alignment with best market practices;
y sustainability of performance over time;
y greater participation in the creation of long-term value by extending the number of beneficiaries to
a wider group of managers and professionals;
y retention to support the post-merger integration phase, especially in some geographies with a
particularly competitive talent market.
The Plan extends to some 800 Group employees and involves the allocation of a number of options
calculated according to the achievement of operational, economic and financial performance
conditions. The Plan consists of the following components: Performance Share, Deferred Share and
Matching Share. The Performance Share component consists of the free allocation of shares to plan
participants subject to the achievement of performance conditions, measured over a three-year
period and subject to continued employment. The vesting period is three years (2020- 2022), with
disbursement of the shares envisaged in 2023. The Deferred Share component involves the deferred
receipt, through the free allocation of shares subject to continued employment during the vesting
period, of 50% of any bonus earned for the years 2020, 2021 and 2022. The vesting of the annual bonus
depends on the achievement of specific economic, financial, operational and sustainability objectives
defined in advance each year. Lastly, the Matching Share component is combined with the Deferred
Shares and consists of the free allocation to participants of 0.5 additional shares for each Deferred Share
granted and arising from deferred payment of the bonus for each year. In the case of the Chief Executive
Officer and Top Management (consisting of about 40 individuals, including Executive Directors, Key
Prysmian Group
Management Personnel, first-line positions reporting to the CEO and second-line managers of key
areas), the Matching Share component is subject to the achievement of a pre-determined performance
condition related to sustainability (ESG).
The actual allocation of shares, in particular with reference to the Performance Share, is subject to the
level of achievement of the following performance conditions: cumulative Adjusted EBITDA, cumulative
Free Cash Flow, relative TSR measured against a 9-member peer group and ESG, measured by a set of
indicators.
The following table provides details about movements in the plan:
31.12.2020
Number of options
Options at start of year -
Granted 2,074,935
Change in expected participations -
Cancelled -
Exercised -
Options at end of year 2,074,935
Costs of Euro 29 million have been recognised as “Personnel costs” in the income statement at
31 December 2020 for the fair value of options granted under this plan.
In accordance with IFRS 2, the options allotted have been measured at their grant date fair value. The
fair value of the options has been determined using the following assumptions:
Grant date 28 April 2020

Residual life at grant date (in years) 2.68
Exercise price ( Euro) 0
Risk-free interest rate -0.70%
Expected dividend % 2.30%
Option fair value (market based) at grant date (Euro) 13.54
Option fair value (not market based) at grant date (Euro) 13.85
The information memorandum, prepared under art. 114-bis of Legislative Decree 58/98 and
describing the characteristics of the above plan, is publicly available on the Company’s website at
http://www.prysmiangroup.com/, from its registered offices and from Borsa Italiana S.p.A..
As at 31 December 2020, there are no outstanding loans or guarantees by the Parent Company or its
subsidiaries to any of the directors, senior managers or statutory auditors.
Annual Report 2020

22. AMORTISATION, DEPRECIATION, IMPAIRMENT AND IMPAIRMENT REVERSALS

Depreciation of buildings, plant, machinery and equipment 182 188
Depreciation of other property, plant and equipment 20 17
Amortisation of intangible assets 66 69
Depreciation and impairment of right-of-use assets (IFRS 16) 57 45
Impairment of property, plant and equipment 64 35
Impairment of intangible assets 4 -
Total 393 354
Details of the impairment loss of Euro 68 million against property, plant and equipment can be found in
Note 1. Property, plant and equipment and Note 2. Goodwill and other intangible assets.
23. OTHER EXPENSES

Professional services 99 94
Insurance 45 70
Maintenance costs 110 122
Selling costs 62 64
Utilities 167 195
Travel costs 24 55
Vessel charter 32 85
Increases in/(releases of) provisions for risks 38 118
Losses on disposal of assets 2 2
Sundry expenses 110 106
Other costs 849 1,042
Company reorganisation 8 10
Non-recurring other expenses 33 (5)
Total 1,579 1,958
Other costs mainly refer to those incurred for project execution.

The Group expensed Euro 90 million in research and development costs in 2020 (Euro 96 million in 2019),
insofar as there were no criteria to justify their capitalisation.
Prysmian Group
24. SHARE OF NET PROFIT/(LOSS) OF EQUITY-ACCOUNTED COMPANIES

Share of net profit/(loss) of associates 18 24
Total 18 24
Further information can be found in Note 3. Equity-accounted investments.
25. FINANCE COSTS

Interest on loans 15 21
Interest on non-convertible bond 19 19
Interest on convertible bond 2017 - non-monetary component 10 10
Interest Rate Swaps 7 7
Interest on lease liabilities 5 5
Amortisation of bank and financial fees and other expenses 6 6
Employee benefit interest costs net of interest on plan assets 7 10
Other bank interest 5 5
Costs for undrawn credit lines 3 5
Sundry bank fees 16 16
Non-recurring other finance costs 2 2
Finance costs for hyperinflation 2 2
Other 4 10
Finance costs 101 118
Net losses on forward currency contracts 11 -
Losses on derivatives 11 -
Foreign currency exchange losses 457 376
Foreign currency exchange losses 457 376
Total finance costs 569 494
Annual Report 2020

26. FINANCE INCOME

Interest income from banks and other financial institutions 6 5
Other finance income 3 12
Finance income 9 17
Net gains on forward currency contracts - 9
Gains on derivatives - 9
Foreign currency exchange gains 459 343
Total finance income 468 369
27. TAXES

Current income taxes 121 144
Deferred income taxes (43) 4
Total 78 148
The following table reconciles the effective tax rate with the Parent Company’s theoretical tax rate:
(Euro/million) 2020 Tax rate 2019 Tax rate

Theoretical tax expense at Parent Company's nominal tax rate 60 24.0% 107 24.0%
Differences in nominal tax rates of foreign subsidiaries - 0.0% 5 1.1%
Taxes on distributable reserves - 0.0% 14 3.2%
Taxes on dividends 11 4.4% - 0.0%
Release of prior year credit for taxes paid abroad 3 1.2% 3 0.7%
Deferred tax effect on carryforward tax losses - 0.0% 7 1.6%
IRAP (Italian regional business tax) and US State TAX 14 5.6% 5 1.2%
Taxes for prior years (12) -4.8% 3 0.6%
Non-deductible costs/(non-taxable income) and other 2 0.8% 6 1.4%
Effective income taxes 78 31.1% 150 33.8%
28. EARNINGS/(LOSS) AND DIVIDENDS PER SHARE
Both basic and diluted earnings (loss) per share have been calculated by dividing the net result for the
period attributable to owners of the parent by the average number of the Company’s outstanding shares.
Diluted earnings/(loss) per share have been affected by the options under the employee share purchase
plan (YES Plan). They have not been affected by the Convertible Bond 2017, whose conversion is currently
“out of the money”, or by the performance shares under the LTI 2020-2022, not being grantable based
on the level of cumulative EBITDA in the first year of the three-year plan.
Prysmian Group

Net profit/(loss) attributable to owners of the parent 178 292
Weighted average number of ordinary shares (thousands) 263,274 263,139
Basic earnings per share (in Euro) 0.68 1.11
Net profit/(loss) attributable to owners of the parent for purposes of diluted 178 292
earnings per share
Weighted average number of ordinary shares (thousands) 263,274 263,139
Adjustments for:
Dilution from incremental shares arising from bond conversion into shares - -
Dilution from incremental shares arising from exercise of stock options 119 32
(thousands)
Weighted average number of ordinary shares to calculate diluted 263,393 263,171
earnings per share (thousands) 0.68 1.11
Diluted earnings per share (in Euro)
The dividend paid in 2020 amounted to approximately Euro 66 million (Euro 0.25 per share). A dividend
of Euro 0.50 per share for the year ended 31 December 2020 will be proposed at the annual general
meeting to be held on 28 April 2021 in a single call; based on the number of outstanding shares, the
above dividend per share equates to a total dividend pay-out of approximately Euro 132 million. The
current financial statements do not reflect any liability for the proposed dividend.
29. CONTINGENT LIABILITIES
As a global operator, the Group is exposed to legal risks primarily, by way of example, in the areas of
product liability and environmental, antitrust and tax rules and regulations. The outcome of legal
disputes and proceedings currently in progress cannot be predicted with certainty. An adverse outcome
in one or more of these proceedings could result in the payment of costs that are not covered, or not
fully covered, by insurance, which would therefore have a direct effect on the Group’s financial position
and results.
As at 31 December 2020, the contingent liabilities for which the Group has not recognised any provision
for risks and charges, on the grounds that an outflow of resources is unlikely, but which can nonetheless
be estimated reliably, amount to approximately Euro 65 million.
30. COMMITMENTS TO PURCHASE PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS
Contractual commitments already entered into with third parties as at 31 December 2020 and not yet
reflected in the financial statements amount to Euro 125 million for investments in property, plant
and equipment (Euro 244 million at the end of 2019); commitments to third parties for investments in
intangible assets amount to Euro 2 million at 31 December 2020 (zero at 31 December 2019).
31. RECEIVABLES FACTORING
The Group has factored some of its trade receivables on a without-recourse basis. The amount of
receivables factored but not yet paid by customers was Euro 256 million at 31 December 2020 (Euro 339
million at 31 December 2019).
Annual Report 2020

32. FINANCIAL COVENANTS
The credit agreements in place at 31 December 2020, details of which are presented in Note 12, require
the Group to comply with a series of covenants on a consolidated basis. The main covenants, classified
by type, are listed below:
a) Financial covenants
y Ratio between EBITDA and Net finance costs (as defined in the relevant agreements);
y Ratio between Net Financial Debt and EBITDA (as defined in the relevant agreements).
The covenants contained in the relevant credit agreements are as follows:
EBITDA/Net finance costs (1) Net financial debt/EBITDA (1)

not less than: not more than:
4.00x 3.00x
(1) The ratios are calculated on the basis of the definitions contained in the relevant credit agreements. The Net Financial Debt-EBITDA ratio can go as high as 3.5
following extraordinary transactions like acquisitions, no more than three times, including on non-consecutive occasions.
b) Non-financial covenants
A number of non-financial covenants have been established in line with market practice applying to
transactions of a similar nature and size. These covenants involve restrictions on the grant of secured
guarantees to third parties and on amendments to the Company’s by-laws.
Default events
The main default events are as follows:

y default on loan repayment obligations;
y breach of financial covenants;
y breach of some of the non-financial covenants;
y declaration of bankruptcy by Group companies or their involvement in other insolvency proceedings;
y issuing of particularly significant court orders;
y occurrence of events that may adversely and significantly affect the business, the assets or the
financial conditions of the Group.
Should a default event occur, the lenders are entitled to demand full or partial repayment of the
amounts lent and not yet repaid, together with interest and any other amount due. No collateral
security is required.
Actual financial ratios reported at 31 December 2020 and 31 December 2019 are as follows:
31.12.2020 31.12.2019
EBITDA/Net finance costs (1)
14.32x 14.42x
Net financial debt/EBITDA (1) 2.10x 1.99x
(1) The ratios are calculated on the basis of the definitions contained in the relevant credit agreements.
Prysmian Group
The above financial ratios comply with both covenants contained in the relevant credit agreements
and there are no instances of non-compliance with the financial and non-financial covenants indicated
above.
33. RELATED PARTY TRANSACTIONS
Transactions between Prysmian S.p.A. and its subsidiaries with associates mainly refer to:
y trade relations involving purchases and sales of raw materials and finished goods;
y services (technical, organisational and general) provided by head office for the benefit of Group
companies;
y recharge of royalties for the use of trademarks, patents and technological know-how by Group
companies.
The related party disclosures also include the compensation paid to Directors, Statutory Auditors and
Key Management Personnel.
All the above transactions form part of the Group’s continuing operations.
The following tables provide a summary of related party transactions and balances for the years ended
31 December 2020 and 31 December 2019:
31.12.2020
Compensa-
tion of
directors,
(Euro/million) Equity- statutory Total Total Related
accounted auditors related reported party %
companies and key parties amount of total
manage-
ment
personnel
Equity-accounted investments 312 - 312 312 100.0%
Trade receivables 3 - 3 1,374 0.2%
Other receivables 3 - 3 522 0.6%
Trade payables 2 - 2 1,958 0.1%
Other payables - 5 5 1,001 0.5%
Provisions for risks and charges - 9 9 591 1.5%
31.12.2019
Compensa-
tion of
directors,
manage-
ment
personnel
Equity-accounted investments 314 - 314 314 100.0%
Trade receivables 7 - 7 1,475 0.5%
Other receivables 3 - 3 854 0.4%
Trade payables 5 - 5 2,062 0.2%
Other payables - 4 4 980 0.4%
Provisions for risks and charges - 4 4 777 0.5%
Annual Report 2020

2020
Compensa-
tion of
directors,
manage-
ment
personnel
Sales 25 - 25 10,016 0.2%
Other income 5 - 5 99 5.1%
Raw materials. consumables and supplies (3) - (3) (6,464) 0.0%
Personnel costs - (19) (19) (1,409) 1.3%
Other expenses (7) (1) (8) (1,579) 0.5%
Share of net profit/(loss) of equity-accounted companies 18 - 18 18 100.0%
2019
Compensa-
tion of
directors,
manage-
ment
personnel
Sales 35 - 35 11,519 0.3%
Other income 3 - 3 96 3.1%
Raw materials. consumables and supplies (8) - (8) (7,218) 0.1%
Personnel costs - (11) (11) (1,539) 0.7%
Other expenses (4) (1) (5) (1,958) 0.2%
Share of net profit/(loss) of equity-accounted companies 24 - 24 24 100.0%
Transactions with associates
Trade and other payables refer to goods and services provided in the ordinary course of the Group’s
business. Trade and other receivables refer to transactions carried out in the ordinary course of the
Group’s business.
Top management compensation
Top management compensation is analysed as follows:
(Euro/000) 2020 2019

Salaries and other short-term benefits - fixed part 7,316 7,418
Salaries and other short-term benefits - variable part 1,836 3,662
Other benefits 562 610
Share-based payments 3,730 -
Total 13,443 11,690
of which Directors 7,685 6,625
Prysmian Group
The amounts shown in the table are the costs recognised in the income statement during the year.
At 31 December 2020, payables for top management compensation amount to Euro 1.8 million, while
employee benefit obligations pertaining to top managers are Euro 0.1 million.
34. COMPENSATION OF DIRECTORS AND STATUTORY AUDITORS
The compensation of the executive and non-executive Directors of Prysmian S.p.A. came to Euro 7.7
million in 2020 (Euro 6.6 million in 2019). The compensation of the Statutory Auditors of Prysmian S.p.A.
came to Euro 0.2 million in 2020, the same as the year before. Compensation includes emoluments, and
any other types of remuneration, pension and medical benefits, received for their service as Directors or
Statutory Auditors of Prysmian S.p.A. and other companies included in the scope of consolidation, and
that have constituted a cost for Prysmian.
35. ATYPICAL AND/OR UNUSUAL TRANSACTIONS
In accordance with the disclosures required by Consob Communication DEM/6064293 dated 28 July
2006, it is reported that no atypical and/or unusual transactions took place during 2020.
36. SIGNIFICANT NON-RECURRING EVENTS AND TRANSACTIONS
As required by Consob Communication DEM/6064293 dated 28 July 2006 and in accordance with the
ESMA Guidelines/2015/1415, the following table presents the effects of non-recurring events and
transactions on the income statement:
(Euro/000) 2020 2019

Non-recurring other income/(expenses)
Antitrust (9) 32
Non-recurring other finance costs
Non-recurring other finance costs (2) (2)
Total (11) 30
37. STATEMENT OF CASH FLOWS
After accounting for a positive change of Euro 259 million in working capital, Euro 142 million in tax
payments and Euro 8 million in dividend receipts from associates, net cash flow from operating activities
was a positive Euro 705 million at the end of 2020.
Acquisitions and/or disposals during the year produced a net outflow of Euro 5 million, mainly due to the
down payment against the acquisition of the EHC group, discussed in more detail in the note on “Events
after the reporting period”.
Net operating capital expenditure used Euro 244 million in cash in 2020, a large part of which relating to
projects to increase and rationalise production capacity and to develop new products. More details can
be found in Note 1. Property, plant and equipment of these Explanatory Notes.
Cash flow from financing activities was influenced by the distribution of Euro 70 million in dividends.
Finance costs paid, net of finance income received, came to Euro 86 million.
Annual Report 2020

38. INFORMATION PURSUANT TO ART.149-DUODECIES OF THE CONSOB ISSUER REGULATIONS
Pursuant to art. 149-duodecies of the Consob Issuer Regulations, the following table shows the fees
in 2020 for audit work and other services provided by the independent auditors Ernst & Young and
companies in the Ernst & Young network:
(Euro/000) Recipient Supplier of services Fees for 2020 Fees for 2019
Audit services Parent Company - Prysmian S.p.A. Ernst & Young Italy 904 1,469
Italian subsidiaries Ernst & Young Italy 422 417
Foreign subsidiaries Ernst & Young Italy 267 782
Foreign subsidiaries Ernst & Young Network 3,257 2,372
Certification services Parent Company - Prysmian S.p.A. Ernst & Young Italy 185 182
Italian subsidiaries Ernst & Young Italy 3 7
Foreign subsidiaries Ernst & Young Network - -
Other services Parent Company - Prysmian S.p.A. Ernst & Young Italy - -
Italian subsidiaries Ernst & Young Italy 3 -
Foreign subsidiaries (1) Ernst & Young Network 182 364
Total 5,223 5,593
(1) Tax and other services.
39. BASIS OF CONSOLIDATION AND ACCOUNTING POLICIES
The financial statements of Group operating companies used for consolidation purposes have been
prepared for the financial year ended 31 December 2020 and that ended 31 December 2019. They have
been adjusted, where necessary, to bring them into line with Group accounting policies and standards;
for those companies with different financial years to the calendar year, the consolidation has used
financial information approved by the respective Boards of Directors that reflects the Group’s financial
year.
Subsidiaries
The Group consolidated financial statements include the financial statements of Prysmian S.p.A.
(the Parent Company) and the subsidiaries over which the Parent Company exercises direct or indirect
control. Subsidiaries are consolidated from the date control is acquired until the date such control
ceases. Specifically, control exists when the parent Prysmian S.p.A. has all of the following:
y decision-making power, meaning the ability to direct the investee’s relevant activities, i.e. the
activities that significantly affect the investee’s returns;
y exposure, or rights, to variable returns from its involvement with the investee;
y the ability to use its power.
The existence of potential voting rights exercisable at the reporting date is also taken into consideration
for the purposes of determining control.
Subsidiaries are consolidated on a line-by-line basis commencing from the date control is effectively
obtained by the Group; at the date of obtaining control, the carrying amount of an investment is
eliminated against the corresponding portion of the investee’s equity by allocating its fair value to
individual assets, liabilities and contingent liabilities. Any residual difference, if positive, is recognised
as “Goodwill”. If the acquisition is achieved in stages, the entire investment is remeasured at fair
Prysmian Group
value on the date control is obtained; after this date, any additional acquisitions or disposals of equity
interests, without a change of control, are treated as transactions between owners recognised in
equity. Costs incurred for the acquisition are always expensed immediately to profit or loss; changes
in contingent consideration are recognised in profit or loss. The share of equity and share of the result
for the period attributable to non-controlling interests are presented separately within the financial
statements. Subsidiaries cease to be consolidated from the date control is transferred to third parties;
the disposal of an equity interest involving a loss of control results in recognising in profit or loss (i)
the gain or loss arising on the difference between the consideration received and the respective share
of equity transferred to third parties, (ii) any amounts relating to the subsidiary recognised in other
comprehensive income that may be reclassified to profit or loss and (iii) the gain or loss from adjusting
any non-controlling interest retained by Prysmian Group to its fair calculated at the date control is lost.
Associates and joint arrangements: joint ventures and joint operations
Associates are those entities over which the Group has significant influence. Investments in associates
are accounted for using the equity method and are initially recorded at cost.
Companies managed under contractual arrangements whereby two or more parties, who share control
through unanimous consent, have the power to make relevant decisions and govern the exposure to
variable future returns, qualify as joint operations and as such are accounted for in the joint operator’s
accounts directly in proportion to the interest held in the joint operation. In addition to recording
the relevant share of assets, liabilities, revenues and expenses, a joint operator also recognises its
obligations under the related arrangement. Equally, if a party participates in, but does not have joint
control of, a joint operation, it nonetheless recognises in its own financial statements its share of the
joint operation’s assets and liabilities, revenues and expenses as well as its contractual obligations
under the arrangement.
Other investments in joint ventures, over which significant influence is exercised but which do not
qualify as joint operations, are accounted for using the equity method.
Translation of foreign company financial statements
The assets and liabilities of foreign consolidated companies expressed in currencies other than the
Euro are translated using the closing exchange rate on the reporting date; revenues and expenses are
translated at the average exchange rate prevailing in the reporting period. The resulting translation
differences are recognised in equity, specifically in the “Reserve for other comprehensive income”, until
the related foreign company is disposed of.
Foreign currency transactions are recorded at the exchange rate prevailing on the date of the transaction.
Monetary assets and liabilities are translated at the closing exchange rate on the reporting date.
Exchange differences arising on translation and those realised on the extinguishment of transactions
are recorded in finance income and costs.
Hyperinflationary economies
IAS 29 - Financial Reporting in Hyperinflationary Economies establishes that if a foreign entity operates
in a hyperinflationary economy, revenues and expenses are translated using the exchange rate current
at the reporting date; accordingly, all amounts in the income statement are restated by applying the
change in the general price index between the date when income and expenses were initially recorded
in the financial statements and the reporting date.
Annual Report 2020

Since financial year 2018, companies operating in Argentina have been considered to belong to a high
inflation economy, therefore requiring the application of IAS 29 - Financial Reporting in Hyperinflationary
Economies, which lays down specific procedures for restating the financial statements of companies
operating in this type of economy.
With reference to the income statement, income and expenses are restated by applying the change
in the general price index, in order to reflect the loss of the local currency’s purchasing power at the
reporting date. The income statements thus restated have been translated into Euro at the closing rates
at 31 December 2020 instead of at the average rates for the reporting period. The effect of applying the
standard has been to reduce net sales by Euro 6 million and net profit by Euro 7 million.
With reference to the statement of financial position, monetary items have not been restated because
they are already expressed in terms of the monetary unit current at the end of the reporting period;
non-monetary assets and liabilities have been restated to reflect the loss in the local currency’s
purchasing power from the date the assets and liabilities were originally recorded through until the
reporting date.
The overall effect for 2020 is a net cost of Euro 1 million, which has been recognised in the income
statement under Net finance income (costs).
Prysmian Group
The exchange rates applied are as follows:
Closing rates at Period average rates

31.12.2020 31.12.2019 2020 2019
Europe
British Pound 0.899 0.851 0.890 0.878
Swiss Franc 1.080 1.085 1.071 1.112
Hungarian Forint 363.89 330.53 351.25 325.30
Norwegian Krone 10.470 9.864 10.723 9.851
Swedish Krona 10.034 10.447 10.485 10.589
Czech Koruna 26.242 25.408 26.455 25.670
Danish Krone 7.441 7.472 7.454 7.466
Romanian Leu 4.868 4.783 4.838 4.745
Turkish Lira 9.024 6.663 8.028 6.360
Polish Zloty 4.560 4.257 4.443 4.298
Russian Rouble 91.467 69.956 82.725 72.455
North America
US Dollar 1.227 1.123 1.142 1.119
Canadian Dollar 1.563 1.460 1.530 1.485
South America - - - -
Colombian Peso 4,202 3,689 4,216 3,675
Brazilian Real 6.377 4.528 5.891 4.417
Argentine Peso 103.260 67.280 80.638 53.968
Chilean Peso 872.520 844.860 902.955 786.893
Costa Rican Colón 750.556 642.012 668.694 657.623
Mexican Peso 24.416 21.220 24.519 21.557
Peruvian Sol 4.443 3.726 3.996 3.736
Oceania - - - -
Australian Dollar 1.590 1.600 1.655 1.611
New Zealand Dollar 1.698 1.665 1.756 1.700
Africa - - - -
CFA Franc 655.957 655.957 655.957 655.957
Angolan Kwanza 800.345 540.037 661.847 406.169
Tunisian Dinar 3.294 3.139 3.200 3.280
Asia
Chinese Renminbi (Yuan) 8.023 7.821 7.875 7.735
United Arab Emirates Dirham 4.507 4.126 4.195 4.111
Hong Kong Dollar 9.514 8.747 8.859 8.772
Singapore Dollar 1.622 1.511 1.574 1.527
Indian Rupee 89.661 80.187 84.639 78.836
Indonesian Rupiah 17,241 15,596 16,627 15,835
Japanese Yen 126.490 121.940 121.846 122.006
Thai Baht 36.727 33.415 35.708 34.757
Philippine Peso 59.125 56.900 56.615 57.985
Omani Rial 0.472 0.432 0.439 0.430
Malaysian Ringgit 4.934 4.595 4.796 4.637
Qatari Riyal 4.467 4.089 4.158 4.075
Saudi Riyal 4.602 4.213 4.284 4.198
Annual Report 2020

39.1 TRANSLATION OF TRANSACTIONS IN CURRENCIES OTHER THAN THE FUNCTIONAL CURRENCY
Transactions in currencies other than the functional currency of the company which undertakes the
transaction are translated using the exchange rate applicable at the transaction date.
Draka NK Cables (Asia) Pte Ltd (Singapore), Draka Philippines Inc. (Philippines), Draka Durango S. de R.L.
de C.V., Draka Mexico Holdings S.A. de C.V., Prysmian Cables y Sistemas de Mexico S. de R.L. de C.V. and
NK Mexico Holdings S.A. de C.V. (Mexico) present their financial statements in a currency other than that
of the country they operate in, as their main transactions are not conducted in the local currency but in
the reporting currency.
Foreign currency exchange gains and losses arising on completion of transactions or on the year-end
translation of assets and liabilities denominated in foreign currencies are recognised in profit or loss.
Exchange differences arising on loans between group companies that form part of the reporting entity’s
net investment in a foreign operation are recognised in other comprehensive income and reclassified
from equity to profit or loss on disposal of the net investment.
39.2 PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment are stated at the cost of acquisition or production, net of accumulated
depreciation and any impairment. Cost includes expenditure directly incurred to prepare the assets for
use, as well as any costs for their dismantling and removal which will be incurred as a consequence of
contractual or legal obligations requiring the asset to be restored to its original condition.
Depreciation is charged on a straight-line, monthly basis using rates that allow assets to be depreciated
until the end of their useful lives. When assets consist of different identifiable components, whose
useful lives differ significantly from each other, each component is depreciated separately using the
component approach.
The indicative useful lives estimated by the Group for the various categories of property, plant and
equipment are as follows:
Land Not depreciated

Buildings 25-50 years
Plant 10-15 years
Machinery 10-20 years
Equipment and Other assets 3-10 years
The residual values and useful lives of property, plant and equipment are reviewed and adjusted, if
appropriate, at least at each financial year-end.
Right-of-use assets under IFRS 16
A lease is a contract that guarantees the right to use an asset (the leased asset) for a period of time in
exchange for a payment or a series of payments.
Following adoption of the reporting standard IFRS 16 - Leases, at the date leased assets become available
for use, lessees shall recognise the rights of use as non-current assets and a corresponding financial
liability.
Lease payments are divided into interest expense, recognised in profit or loss, and repayment of
principal, accounted for as a reduction in the financial liability. Right-of-use assets are depreciated
every month on a straight-line basis over the shorter of the lease term and the estimated useful lives of
the assets.
Prysmian Group
Right-of-use assets and lease liabilities are initially measured at the present value of future lease
payments.
The present value of lease liabilities includes the following payments:

y fixed payments;
y variable lease payments that depend on an index or a rate;
y exercise price of a purchase option reasonably certain to be exercised;
y payments of penalties for terminating the lease if the termination option is reasonably certain to be
exercised;
y optional payments after the non-cancellable period, if the lease is reasonably certain to be extended
beyond the non-cancellable period;
y future lease payments are discounted using the incremental borrowing rate. This is based on the risk-
free rate of the country in which the contract is negotiated and on the term of the lease, and is also
adjusted for the Group’s credit spread;
y lease extension options are considered for the purposes of determining the lease term, if reasonably
certain to be exercised.
Right-of-use assets are measured at cost, whose initial amount is equal to the lease liability.
The Group uses the exemption for short-term leases since their recognition would have an insignificant
impact on the financial liability.
The financial liabilities recognised under IFRS 16, amounting to Euro 195 million, are analysed by
maturity as follows:
31.12.2020
(Euro/million) Less than From From More than
1 year 1 to 2 years 2 to 5 years 5 years
39.3 GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill
Goodwill represents the difference between the cost incurred for acquiring a controlling interest (in a
business) and the fair value of the assets and liabilities identified at the acquisition date. Goodwill is not
amortised, but is tested for impairment at least annually to identify any impairment losses. This test
is carried out with reference to the cash-generating unit (“CGU”) or group of CGUs to which goodwill is
allocated and at which level it is monitored. Greater information can be found in Note 2. Goodwill and
Other intangible assets.
Other intangible assets
Other intangible assets are recognised in the financial statements at acquisition cost and/or production
cost, including all costs directly attributable to make the assets available for use, net of accumulated
amortisation and any impairment. Amortisation commences when the asset is available for use and is
calculated on a straight-line basis over the asset’s estimated useful life. Other intangible assets have a
finite useful life.
Other intangible assets include Patents, concessions, licences, trademarks and similar rights and
Software.
Annual Report 2020

Patents, concessions, licences, trademarks and similar rights
These assets are amortised on a straight-line basis over their useful lives.
Software
Software licence costs are capitalised on the basis of purchase costs and costs to make the software
ready for use. These costs are amortised on a straight-line basis over the useful life of the software.
39.4 IMPAIRMENT OF PROPERTY, PLANT AND EQUIPMENT AND FINITE-LIFE INTANGIBLE ASSETS
Property, plant and equipment and finite-life intangible assets are analysed at each reporting date for
any evidence of impairment. If such evidence is identified, the recoverable amount of these assets
is estimated and any impairment loss relative to carrying amount is recognised in profit or loss. The
recoverable amount is the higher of the fair value of an asset, less costs to sell, and its value in use,
where the latter is the present value of the estimated future cash flows of the asset. The recoverable
amount of an asset which does not generate largely independent cash flows is determined in relation
to the cash-generating unit to which the asset belongs. In calculating an asset’s value in use, the
expected future cash flows are discounted using a discount rate reflecting current market assessments
of the time value of money, in relation to the period of the investment and the specific risks associated
with the asset.
Following adoption of IFRS 16, the carrying amount of the cash-generating units has been
increased to include right-of-use assets. The calculation of value in use excludes payments for
lease liabilities.
Additional details concerning the composition of cash-generating units can be found in Note 40.
Estimates and assumptions.
39.5 FINANCIAL ASSETS
In accordance with IFRS 9 - Financial instruments, financial assets are initially recorded at fair value and
classified in one of the following categories on the basis of their nature and the purpose for which they
were acquired:
a) Financial assets at amortised cost;
b) Financial assets at fair value through profit or loss;
c) Financial assets at fair value through other comprehensive income (OCI).
Financial assets are derecognised when the right to receive cash flows from the instrument expires and
the Group has substantially transferred all the risks and rewards of ownership of the instrument and the
related control.
(a) Financial assets at amortised cost
The Group classifies in this category receivables and securities that it expects to hold to maturity,
meaning that it receives payments of interest and capital from such assets on specified due dates.
Assets at amortised cost are classified in the statement of financial position under “Financial assets at
amortised cost” and presented as current or non-current assets depending on whether their contractual
maturity is less or more than twelve months from the reporting date.
These assets are reported at amortised cost and written down if any impairment is identified.
Prysmian Group
(b) Financial assets at fair value through profit or loss
Financial assets classified in this category are represented by securities held for trading, having been
acquired for the purpose of selling in the near term.
Financial assets at fair value through profit or loss are measured at fair value, with gains and losses from
changes in fair value reported in the income statement under “Finance income” and “Finance costs”, in
the period in which they arise.
Assets in this category are classified as current assets.
(c) Financial assets at fair value through other comprehensive income (OCI)
The Group uses this category to record equity investments it does not expect to dispose of in the near
term and with which it has no controlling relationship, classified as non-current assets, and securities in
which it invests its liquidity and whose disposal date is not known, classified as current assets.
The above equity investments are measured at fair value through OCI, where fair value belongs to Level
3 of the fair value hierarchy. Dividends from such investments are recognised in finance income.
Securities classified in this category are measured at fair value through OCI, with any impairment
recognised in profit or loss if such impairment is considered permanent. The fair value of these securities
belongs to Level 1 of the fair value hierarchy. Interest from these securities is recognised in finance
income. When these securities are sold, the related equity reserve is recycled to profit or loss.
39.6 DERIVATIVES
Metal derivatives
Metal derivatives are recognised at fair value through equity and therefore designated as hedging
instruments. Further details can be found in section B.2 Newly adopted accounting standards and
principles.
Interest rate derivatives
Interest rate derivatives not designated as hedging instruments are recognised at fair value through
profit or loss. The related income and expenses are classified in finance income and costs. They are
recognised as current assets or liabilities in the statement of financial position if they mature within
twelve months, otherwise they are classified as non-current assets or liabilities.
Interest rate derivatives designated as hedging instruments are recognised at fair value through other
comprehensive income. When the derivative matures, the related reserve is recycled to profit or loss as
finance income and costs.
The relationship between the hedged item and the designated interest rate hedge must be documented.
The effectiveness of each hedge is reviewed both at the derivative’s inception and during its life cycle. In
particular, interest rate derivatives designated as hedging instruments are intended to hedge the risk of
cash flow volatility linked to finance costs arising from variable rate debt.
The fair value of interest rate derivatives belongs to Level 2 of the fair value hierarchy.
Currency derivatives
Currency derivatives not designated as hedging instruments are recognised at fair value through profit
or loss. The related income and expenses are classified in finance income and costs. They are recognised
Annual Report 2020

as current assets or liabilities in the statement of financial position if they mature within twelve months,
otherwise they are classified as non-current assets or liabilities.
Currency derivatives designated as hedging instruments are recognised at fair value through other
comprehensive income. When the derivative matures, the related reserve is recycled to profit or loss as
finance income and costs.
The relationship between the hedged item and the designated currency hedge must be documented.
The effectiveness of each hedge is reviewed both at the derivative’s inception and during its life cycle.
In particular, currency derivatives designated as hedging instruments are intended to hedge exchange
rate risk on contracts or orders. These hedging relationships aim to reduce cash flow volatility due to
exchange rate fluctuations affecting future transactions. In particular, the hedged item is the value
in the company’s unit of account of a cash flow expressed in another currency that is expected to be
received/paid under a contract or an order whose amount exceeds the minimum thresholds set by the
Group Finance Committee: all cash flows thus identified are therefore designated as hedged items in the
hedging relationship. The reserve originating from changes in the fair value of derivative instruments is
transferred to the income statement according to the stage of completion of the contract itself, where
it is classified as contract revenue/costs.
The fair value of currency derivatives belongs to Level 2 of the fair value hierarchy.
39.7 TRADE AND OTHER RECEIVABLES
Trade and other receivables are initially recognised at fair value and subsequently measured at amortised
cost, net of the allowance for doubtful accounts. Impairment of receivables is recognised on the basis
of Expected Credit Loss (ECL). ECLs are based on the difference between the contractual cash flows due
in accordance with the contract and all the cash flows that the Group expects to receive, discounted at
an original effective interest rate.
The expected cash flows will include cash flows from the sale of collateral held or other credit
enhancements that are integral to the contractual terms.
ECLs are recognised in two stages.

y For credit exposures for which there has not been a significant increase in credit risk since initial
recognition, ECLs are provided for credit losses that result from default events that are possible
within the next 12 months (a 12-month ECL).
y For those credit exposures for which there has been a significant increase in credit risk since initial
recognition, a loss allowance is required for credit losses expected over the remaining life of the
exposure, irrespective of the timing of the default (a lifetime ECL).
The Group adopts a simplified approach to calculating ECLs for trade receivables and contract assets:
it does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs
at each reporting date. The Group has established a provision matrix that is based on its historical
credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic
environment.
The Group makes use of without-recourse factoring of trade receivables. These receivables are
derecognised because such transactions transfer substantially all the related risks and rewards of the
receivables to the factor.
39.8 INVENTORIES
Inventories are recorded at the lower of purchase or production cost and net realisable value, defined as
the amount the Group expects to obtain from their sale in the normal course of business, net of selling
Prysmian Group
costs. The cost of inventories of raw materials, ancillaries and consumables, as well as finished products
and goods is determined using the FIFO (first-in, first-out) method.
The exception is inventories of non-ferrous metals (copper, aluminium and lead) and quantities of such
metals contained in semi-finished and finished products, which are valued using the weighted average
cost method.
The cost of finished and semi-finished products includes design costs, raw materials, direct labour costs
and other production costs (calculated on the basis of normal operating capacity).
39.9 CONSTRUCTION CONTRACTS
Construction contracts (hereafter also “contracts”) are recognised at the value agreed in the contract,
in accordance with the percentage of completion method, taking into account the progress of the
project and the expected contractual risks. The progress of a project is measured by reference to the
contract costs incurred at the reporting date in relation to the total estimated costs for each contract.
When the outcome of a contract cannot be estimated reliably, the contract revenue is recognised only
to the extent that the costs incurred are likely to be recovered. When the outcome of a contract can be
estimated reliably, and it is probable that the contract will be profitable, contract revenue is recognised
over the term of the contract. When it is probable that total contract costs will exceed total contract
revenue, the potential loss is recognised immediately as an expense.
If the contract contains a warranty other than those used in standard market practice, this warranty is
recognised separately.
The Group reports as assets the gross amount due from customers for construction contracts, where the
costs incurred, plus recognised profits (less recognised losses), exceed the billing of work-in-progress;
such assets are reported in “Other receivables”. Amounts invoiced but not yet paid by customers are
reported under “Trade receivables”.
The Group records as liabilities the gross amount due to customers for all construction contracts where
billing exceeds the costs incurred plus recognised profits (less recognised losses). Such liabilities are
reported under “Other payables”.
39.10 CASH AND CASH EQUIVALENTS
Cash and cash equivalents comprise cash, demand bank deposits and other short-term investments,
with a maturity of three months or less. Current account overdrafts are classified as financial payables
under current liabilities in the statement of financial position.
39.11 ASSETS AND LIABILITIES HELD FOR SALE
Assets and liabilities held for sale are classified as such if the carrying amount will be recovered principally
through a sale transaction; for this to be the case, the sale must be highly probable and the related
assets/liabilities must be available for immediate sale in their present condition. Assets/Liabilities held
for sale are measured at the lower of carrying amount and fair value less costs to sell.
39.12 TRADE AND OTHER PAYABLES
Trade and other payables are initially recognised at fair value and subsequently measured at amortised
cost.
Annual Report 2020

39.13 BORROWINGS FROM BANKS AND OTHER LENDERS
Borrowings from banks and other lenders are initially recognised at fair value, less directly attributable
costs. Subsequently, they are measured at amortised cost, using the effective interest method. If the
estimated expected cash flows should change, the value of the liabilities is recalculated to reflect this
change using the present value of the expected new cash flows and the effective internal rate originally
established. Borrowings from banks and other lenders are classified as current liabilities, unless the
Group has an unconditional right to defer their payment for at least twelve months after the reporting
date.
Borrowings from banks and other lenders are derecognised when they are extinguished and when the
Group has transferred all the risks and costs relating to such instruments.
39.14 EMPLOYEE BENEFITS
The Group operates both defined contribution plans and defined benefit plans.
Defined contribution plans
A defined contribution plan is a plan under which the Group pays fixed contributions to third-party fund
managers and to which there are no legal or other obligations to pay further contributions should the
fund not have sufficient assets to meet the obligations to employees for current and prior periods. In
the case of defined contribution plans, the Group pays contributions, voluntarily or as established by
contract, to public and private pension insurance funds. The Group has no obligations subsequent to
payment of such contributions, which are recognised as personnel costs on an accrual basis. Prepaid
contributions are recognised as an asset which will be repaid or used to offset future payments, should
they be due.
Defined benefit plans
In defined benefit plans, the total benefit payable to the employee can be quantified only after the
employment relationship ceases, and is linked to one or more factors, such as age, years of service and
remuneration; the related cost is therefore charged to the period’s income statement on the basis of an
actuarial calculation. The liability recognised for defined benefit plans corresponds to the present value
of the obligation at the reporting date, less the fair value of the plan assets, where applicable. Obligations
for defined benefit plans are determined annually by an independent actuary using the projected unit
credit method. The present value of a defined benefit plan is determined by discounting the future cash
flows at an interest rate equal to that of high-quality corporate bonds issued in the liability’s settlement
currency and which reflects the duration of the related pension plan. Actuarial gains and losses arising
from the above adjustments and the changes in actuarial assumptions are recorded directly in equity.
Other post-employment obligations
Some Group companies provide medical benefit plans for retired employees. The expected cost of these
benefits is accrued over the period of employment using the same accounting method as for defined
benefit plans. Actuarial gains and losses arising from the valuation and the effects of changes in the
actuarial assumptions are accounted for in equity. These liabilities are valued annually by a qualified
independent actuary.
Prysmian Group
Termination benefits
The Group recognises termination benefits when it can be shown that the termination of employment
complies with a formal plan communicated to the parties concerned that establishes termination
of employment, or when payment of the benefit is the result of voluntary redundancy incentives.
Termination benefits payable more than twelve months after the reporting date are discounted to
present value.
39.15 PROVISIONS FOR RISKS AND CHARGES
Provisions for risks and charges are recognised for losses and charges of a definite nature, whose
existence is certain or probable, but the amount and/or timing of which cannot be determined reliably.
A provision is recognised only when there is a current (legal or constructive) obligation for a future
outflow of economic resources as the result of past events and it is likely that this outflow is required
to settle the obligation. Such amount is the best estimate of the expenditure required to settle the
obligation. Where the effect of the time value of money is material and the obligation settlement date
can be estimated reliably, the provisions are stated at the present value of the expected outlay, using a
rate that reflects market conditions, the variation in the time value of money, and risks specific to the
obligation.
Increases in the provision due to changes in the time value of money are accounted for as interest
expense.
Risks for which the emergence of a liability is only possible but not remote are reported in the disclosures
about commitments and contingencies and no provision is recognised.
Any contingent liabilities accounted for separately when allocating the cost of a business combination,
are measured at the higher of the amount obtained under the method described above for calculating
provisions for risks and charges and the liability’s original present value.
Additional details can be found in Note 29. Contingent liabilities.
Provisions for risks and charges include an estimate of legal costs to be incurred if such costs are
incidental to the discharge of the provision to which they refer.
39.16 REVENUE RECOGNITION
Revenue is recognised at the fair value of the consideration received for the sale of goods and services
in the ordinary course of the Group’s business. Revenue is recognised net of value-added tax, expected
returns, rebates and discounts.
Revenue is accounted for as follows:
Sale of goods
Revenue from the sale of goods is recognised at the point in time when control of the asset is transferred
to the customer, normally coinciding with shipment or delivery of the goods and acceptance by the
customer. The Group checks whether there are conditions in the contract that represent separate
performance obligations to which a portion of the transaction price must be allocated (e.g., warranties),
as well as the effects arising from the presence of any variable consideration, significant financing
components or non-cash consideration payable to the customer. In the case of variable consideration,
this is estimated based on the amount to which the Group will be entitled when the goods are transferred
to the customer; such consideration is estimated at contract inception and is recognised only when
it is highly probable. The Group grants discounts to certain customers when the quantity of products
purchased during the period exceeds a threshold specified in the contract. Discounts are offset against
Annual Report 2020

amounts payable by the customer. To estimate the variable consideration for expected discounts, the
Group applies the “most likely amount” method for contracts with a single-volume discount threshold
and the “expected value” method for contracts with multiple thresholds. Generally, the Group receives
short-term advances from its customers and the agreed amount of consideration is not adjusted for the
effects of a significant financing component if it expects, at contract inception, that the period between
the transfer of the promised good or service to the customer and when the customer makes the related
payment will not exceed one year.
The method of recognising revenue for construction contracts is outlined in Note 39.9 Construction
contracts.
39.17 GOVERNMENT GRANTS
Government grants are recognised on an accrual basis in direct relation to the costs incurred when
there is a formal resolution approving the grant and, when the right to the grant is assured since it is
reasonably certain that the Group will comply with the conditions for its receipt and that the grant will
be received.
(a) Grants related to assets
Government grants for property, plant and equipment are recorded as deferred income under “Other
payables”, classified as current and non-current liabilities for the long-term and short-term portion of
such grants respectively. Deferred income is recognised in “Other income” in the income statement on a
straight-line basis over the useful life of the asset to which the grant refers.
(b) Grants related to income
Grants other than those related to assets are credited to the income statement as “Other income”.
39.18 COST RECOGNITION
Costs are recognised for goods and services acquired or consumed during the reporting period or to
make a systematic allocation to match costs with revenues.
39.19 TAXATION
Current taxes are calculated on the basis of taxable income for the year, applying the tax rates in force
at the reporting date.
Deferred taxes are calculated on all differences arising between the tax base of an asset or liability and
its carrying amount, except for goodwill and differences arising from investments in subsidiaries, where
the timing of the reversal of such differences is controlled by the Group and it is probable that they will
not reverse in a reasonably foreseeable future. Deferred tax assets, including those relating to past tax
losses, not offset by deferred tax liabilities, are recognised to the extent it is likely that future taxable
profit will be available against which they can be recovered.
Deferred taxes are determined using tax rates that are expected to apply in the years when the differences
are realised or extinguished, on the basis of tax rates that have been enacted or substantively enacted
at the reporting date.
Prysmian Group
Current and deferred taxes are recognised in the income statement with the exception of those relating
to items recognised directly in equity, in which case the tax effect is accounted for directly in equity.
Income taxes are offset if they are levied by the same taxation authority, if there is a legally enforceable
right to offset them and if the net balance is expected to be settled.
Other taxes not related to income, such as property tax, are reported in “Other expenses”.
39.20 EARNINGS PER SHARE
(a) Basic earnings per share
Basic earnings per share are calculated by dividing the profit attributable to owners of the parent by
the weighted average number of ordinary shares outstanding during the reporting period, excluding
treasury shares.
(b) Diluted earnings per share
Diluted earnings per share are calculated by dividing the profit attributable to owners of the parent by
the weighted average number of ordinary shares outstanding during the reporting period, excluding
treasury shares. For the purposes of calculating diluted earnings per share, the weighted average
number of outstanding shares is adjusted so as to include the exercise, by all those entitled, of rights
with a potentially dilutive effect, while the profit attributable to owners of the parent is adjusted to
account for any post-tax effects of exercising such rights.
39.21 TREASURY SHARES
Treasury shares are reported as a deduction from equity. The original cost of treasury shares and revenue
arising from any subsequent sales are treated as movements in equity.
40. ESTIMATES AND ASSUMPTIONS
The preparation of financial statements requires Management to apply accounting policies and methods
which, at times, rely on judgements and estimates based on past experience and assumptions deemed
to be reasonable and realistic under the related circumstances. The application of these estimates and
assumptions affects the amounts reported in the financial statements, meaning the statement of
financial position, the income statement, the statement of comprehensive income and the statement
of cash flows, as well as the accompanying disclosures. Ultimate amounts, previously reported on
the basis of estimates and assumptions, may differ from original estimates because of uncertainty
surrounding the assumptions and conditions on which the estimates were based.
The following is a brief description of the accounting policies that require the Prysmian Group’s
Management to exercise greater subjectivity of judgement in making estimates and a change in whose
underlying assumptions could have a material impact on the consolidated financial statements.
(a) Provisions for risks and charges
Provisions are recognised for legal and tax risks to reflect the risk of an adverse outcome. The value of
the provisions recorded in the financial statements against such risks represents the best estimate by
Annual Report 2020

Management at that date. This estimate requires the use of assumptions that depend on factors which
may change over time and which could, therefore, materially impact the current estimates made by
Management to prepare the Group consolidated financial statements.
(b) Impairment of assets
Goodwill
The Group’s activities are organised in three operating segments: Projects, Energy and Telecom. The
Projects segment consists of the High Voltage, Submarine Power, Submarine Telecom and Offshore
Specialties CGUs; the Energy segment consists of a number of CGUs corresponding to the Regions or
Countries in keeping with the new organisation structure; lastly, the Telecom segment consists of a single
CGU that coincides with the operating segment itself. Goodwill, acquired on the occasion of business
combinations, has been allocated to groups of CGUs, corresponding to the operating segments, which
are expected to benefit from the synergies of such combinations and which represent the lowest level
at which Management monitors business performance. In accordance with the accounting standards
adopted and related impairment testing procedures, the Group tests annually whether Goodwill has
suffered an impairment loss. The recoverable amount is determined by calculating value in use, a
calculation that requires the use of estimates.
More details about the Goodwill impairment test can be found in Note 2. Goodwill and Other intangible
assets.
Property, plant and equipment and finite-life intangible assets
In accordance with the Group’s accounting policies and impairment testing procedures, property, plant
and equipment and intangible assets with finite useful lives are tested for impairment, recognised
through write-down, when there are indications that their carrying amount may be difficult to
recover through use. To verify the existence of these indicators Management has to make subjective
judgements based on information available within the Group and from the market, as well as on past
experience. If an impairment loss is identified, the Group will determine the amount of the loss using
suitable valuation techniques. Correct identification of indicators of potential impairment, as well as its
very measurement, depend on factors that may vary over time, thus influencing the judgements and
estimates made by Management.
Prysmian Group has assessed during the course of 2020 whether there was any evidence that its CGUs
might be impaired and has consequently tested for impairment those CGUs considered potentially
at “risk”. It should be noted that during 2020 the spread of the Covid-19 pandemic was treated as a
pervasive indicator of impairment, resulting in the performance of impairment tests for all CGUs.
The outcome of impairment tests at 31 December 2020 does not mean that future results will be the
same, especially in the event of currently unforeseeable developments in the business environment.
Further information can be found in Note 1. Property, plant and equipment.
(c) Climate change
As more fully explained in the Directors’ Report and in the Disclosure of Non-Financial Information, the
Group is developing an ambitious “Net Zero” strategy, in line with the requirements of the Paris Agreement.
At the same time, the Group is analysing and assessing the risks and opportunities of climate change and
has set targets for the reduction of greenhouse gas emissions classified as Scope 1 and 2 (direct and indirect
emissions generated by its own activities) and as Scope 3 (generated by the value chain).
Prysmian Group
The consequences in terms of investments, costs and other impacts on cash flows have been considered
when preparing financial forecasts, consistent with the state of progress of this process. The 2020
impairment tests have taken into account the impacts on investment flows, as far as they can be
currently estimated, without any significant effects on the test results. It is possible that in the future
the carrying amount of assets or liabilities recognised in the Group’s financial statements may be subject
to different impacts as the strategy of managing climate change evolves.
(d) Depreciation and amortisation
The cost of property, plant and equipment and intangible assets is depreciated/amortised on a straight-
line basis over the estimated useful lives of the assets concerned. The useful economic life of Group
property, plant and equipment and intangible assets is determined by Management when the asset
is acquired. This is based on past experience for similar assets, market conditions and expectations
regarding future events that could impact useful life, including developments in technology. Therefore,
actual economic life may differ from estimated useful life. The Group periodically reviews technological
and industry developments to update residual useful lives. This periodic review may lead to a variation
in the depreciation/amortisation period and therefore also in the depreciation/amortisation charge for
future years.
(e) Recognition of revenues and costs from construction contracts
The Group uses the percentage of completion method to account for long-term contracts. The margins
recognised in the income statement depend on the progress of the contract and its estimated margins
upon completion. This means that if work-in-progress and margins on as yet incomplete work are to
be correctly recognised, Management must have correctly estimated contract revenue and completion
costs, including any contract variations and any cost overruns and penalties that might reduce the
expected margin. The percentage of completion method requires the Group to estimate contract
completion costs and involves making estimates dependent on factors that could potentially change
over time and so could have a significant impact on the recognition of revenue and margins the course
of formation.
(f) Taxes
Consolidated companies are subject to different tax jurisdictions. A high level of judgement is needed
to establish the estimated global tax charge, also because of uncertain tax treatments. There are many
transactions for which the relevant tax liability is difficult to estimate at year end. The Group recognises
liabilities for ongoing tax risks on the basis of estimates, possibly made with the assistance of outside
experts.
(g) Inventory valuation
Inventories are recorded at the lower of purchase cost (measured using the weighted average cost
formula for non-ferrous metals and the FIFO formula for all others) and net realisable value, net of
selling costs. Net realisable value is in turn represented by the value of firm sales orders in the order
book, or failing that by the replacement cost of the asset or raw material. If significant reductions in the
price of non-ferrous metals are followed by order cancellations, the loss in the value of inventories may
not be fully offset by the penalties charged to customers for cancelling their orders.
Annual Report 2020

(h) Employee benefit obligations
The present value of the pension plans reported in the financial statements depends on an independent
actuarial calculation and on a number of different assumptions. Any changes in assumptions and in the
discount rate used are duly reflected in the present value calculation and may have a significant impact
on the consolidated figures. The assumptions used for the actuarial calculation are examined by the
Group annually.
Present value is calculated by discounting future cash flows at an interest rate equal to that on high-
quality corporate bonds issued in the currency in which the liability will be settled and which takes
account of the duration of the related pension plan.
Further information can be found in Note 15. Employee benefit obligations and Note 21. Personnel costs.
(i) Incentive and share purchase plans
The employee share purchase plan, directed at almost all the Group’s employees, provides an
opportunity for them to obtain shares on preferential terms and conditions. The operation of this plan is
described in Note 21. Personnel costs. The grant of shares is subject to continued employment with the
Group in the months between signing up to one of the plan’s purchase windows and the purchase of the
shares themselves on the equity market. The plan’s financial and economic impact has therefore been
estimated on the basis of the best possible estimates and information currently available. The incentive
plan 2020-2022 involves the allocation of a number of options calculated according to the achievement
of operational, economic and financial performance conditions. The plan’s financial and economic
impact has therefore been estimated on the basis of the best possible estimates and information
available at the valuation date. More details can be found in Note 21. Personnel costs.
41. EVENTS AFTER THE REPORTING PERIOD
Prysmian Group completes the acquisition of EHC Global
On 8 January 2021, the Group announced it had completed the acquisition of EHC Global, a leading
manufacturer of strategic components and integrated solutions for the vertical transportation
industry. Established in 1977, EHC Global is a manufacturer and supplier of escalator handrails, rollers,
elevator belts, strategic components and integrated solutions for the vertical transportation industry.
EHC Global also offers a comprehensive range of technical and installation services for escalators and
moving walkways.
The acquisition of EHC Global is in line with Prysmian Group’s strategy to develop and strengthen its
value-added businesses. EHC Global is a complementary add-on to the Group’s Draka Elevator business,
broadening its product portfolio to include a wide range of escalator products and services.
The total consideration paid for the acquisition is approximately Euro 80 million. Under the purchase
agreement, the price is subject to adjustment clauses and so the final purchase consideration will be
defined in the coming months. The EHC group’s equity is estimated to be about Euro 34 million at 31
December 2020. The purchase price allocation process has only just begun and will be completed during
2021, as permitted by international accounting standards. Assuming, therefore, that the EHC group’s
equity currently represents the best estimate of the fair value of its assets and liabilities, goodwill of
approximately Euro 46 million would be recognised.
Prysmian Group
Details of the assets and above goodwill are shown below:
(Euro/million)
Cash out 80
Derivatives (collar) for acquisition -
Acquisition price (A) 80
Fair value of net assets acquired (B) 34
Goodwill (A-B) 46
Purchase consideration 80
Cash and cash equivalents held by acquiree (6)
Acquisition cash flow 74
(Euro/million)
Property, plant and equipment 7
Intangible assets 1
Assets held for sale -
Financial assets 6
Derivatives -
Deferred taxes -
Inventories 8
Trade and other receivables 17
Trade and other payables (9)
Borrowings from banks and other lenders (3)
Employee benefit obligations and other provisions -
Cash and cash equivalents 6
Net assets acquired (B) 34
Acquisition-related costs are estimated at around Euro 1 million pre-tax and have been expensed to
income.
Considering the EHC group’s aggregate figures for 2020, it would have contributed Euro 75 million to
Prysmian’s sales and Euro 6 million to profit for the year had it been consolidated from 1 January 2020.
Placement of a Euro 750 million equity-linked bond
On 26 January 2021, the Group announced the successful placement (the “Placement”) of an equity-
linked bond (the “Bonds”) for an amount of Euro 750 million.
The Bonds will have a 5-year maturity and a minimum denomination of Euro 100,000 each, and will be
zero coupon. The issue price is Euro 102.50, representing a yield to maturity of -0.49% per annum. The
initial price for the conversion of the Bonds into the Company’s ordinary shares will be Euro 40.2355,
representing a 47.50% premium on the weighted average price by volume of Prysmian ordinary shares on
the Milan Stock Exchange between launch and pricing. The Bonds may be converted into the Company’s
ordinary shares, subject to approval by an extraordinary shareholders’ meeting, to be held no later than
30 June 2021 (the “Long-stop Date”), of a share capital increase with exclusion of preferential subscription
rights under art. 2441, par. 5, of the Italian Civil Code, to be used exclusively to service conversion of the
Bonds (the ‘’Capital Increase”). After such approval, the Company shall issue a notice to the Bondholders
(the “Physical Settlement Notice”). Under the terms and conditions of the Bonds, and following the date
Annual Report 2020

referred to in the Physical Settlement Notice, the Company shall settle any exercise of conversion rights
with Prysmian ordinary shares issued under the Capital Increase or, at the Company’s discretion, with
existing Prysmian ordinary shares held by the Company.
Should the Capital Increase not be approved on or before the Long-stop Date, the Company may, within
a limited period of time (and in any case no later than 10 dealing days after the Long-stop Date), give
notice to the Bondholders (a “Shareholder Event Notice”) and redeem all of the Bonds in cash at a
premium determined in accordance with the terms and conditions of the Bonds.
Should the Capital Increase not be approved and should the Company not publish a Shareholder Event
Notice by the date stated in the terms and conditions of the Bonds (and in certain limited circumstances
prior to such date), each Bondholder may, in accordance with the Bond terms and conditions, request
early redemption of their Bonds in cash. In such circumstances, the Company shall redeem the Bonds
against payment of a cash amount equal to the market value determined in accordance with the terms
and conditions of the Bonds.
The Company will have the option to redeem all - but not only some - of the Bonds at their principal
amount from 12 February 2024, should the value of the new and/or existing ordinary shares exceed
130% of the conversion price for a specified period of time.
In line with market practice, and subject to the successful issuance of the Bonds, the Company has agreed
not to place any further ordinary shares or related securities or enter into certain derivative transactions
relating to Prysmian ordinary shares for a 90-day lock-up period subject to certain customary exceptions
(including for share options or incentive schemes) and in connection with the Concurrent Repurchase.
Subject to the successful issuance of the Bonds, an application will be made to admit the Bonds to trading
on an internationally recognised, regularly operating, regulated market or a multilateral trading facility
(MTF) by no later than 30 June 2021.
The net proceeds from the Bond issue have been used for the Concurrent Repurchase described below,
for refinancing the 2017 Bonds at maturity, as well as for general corporate purposes.
Repurchase of the 2017 Bonds
On 26 January 2021, the Group announced the repurchase of the Company’s outstanding Euro 500 million
zero-coupon equity-linked bonds due in 2022 and issued on 17 January 2017 (the “2017 Bonds”).
The total principal amount of the 2017 Bonds which the Company has accepted to repurchase is equal to
Euro 250,000,000 representing 50% of the 2017 Bonds initially issued, at a repurchase price (“Repurchase
Price”) of Euro 104,250 per Euro 100,000 in principal amount of the 2017 Bonds.
CDP Loan for Euro 75 million
On 28 January 2021, a new loan for Euro 75 million over 4.5 years was agreed with Cassa Depositi e
Prestiti S.p.A. (CDP), for the purpose of financing part of the Group’s expenditure for the purchase of the
“Leonardo Da Vinci” cable-laying vessel.
This loan was drawn down in its entirety on 9 February 2021, with a bullet repayment envisaged at
maturity on 28 July 2025.
Interest Rate Swap (IRS) to hedge the CDP Loan
On 4 February 2021, two IRSs were negotiated by Prysmian S.p.A. to hedge the new Euro 75 million
loan.
Prysmian Group
Construction of new fibre-optic Telecom link in Brazil
On 24 February 2021, the Group announced that it will supply 770 km of MINISUB submarine optical fibre
telecom cables to link the city of Macapá to Santarém and Alenquer, located in the north of the Amazon
region, as part of the Norte Conectado project awarded by RNP, Rede Nacional de Ensino and Pesquisa,
a Brazilian internet provider. The MINISUB solution is one of the most widely used technologies in the
world. The cables will be produced at Prysmian’s state-of-the-art manufacturing facility in Nordenham
(Germany) and will be delivered in the second half of 2021.
New organisational structure
On 3 February 2021, the Group announced that it had adopted a new organisational structure, in line
with international best practices, with the aim of reinforcing its focus on the strategic opportunities
offered by the global transition to low-carbon energy and digitalisation-based economies.
The introduction of this new structure marks the successful completion of the integration with General
Cable, which has significantly enlarged the Group and broadened its geographical diversification.
Under the leadership of the CEO, the new organisation will pivot around the following key roles:
y Chief Operating Officer
y Business Divisions
y Group Functions
Under the new organisation, the CEO will further intensify the Group’s focus on its organic and
non-organic growth strategy, as well as on accelerating major innovation projects. The two global
megatrends of transition to low-carbon energy and development of telecommunications networks to
support digitalisation are among the major growth opportunities on which the Company will be focusing
to ensure sustainable growth. In order to leverage the Group’s wide geographic presence and customer
proximity, while delivering business synergies at the same time, the new role of Chief Operating Officer
(COO) will oversee the Group’s operational strategy and performance and results of the Regions, in
conjunction with the Group’s three Business Divisions. The Business Divisions, which report directly to the
CEO, are focused on the strategic development of their different segments, with P&L responsibility for
the global Business Units, in conjunction with the COO. In addition, they drive key decisions on product
technology, production allocation and the most important projects. The Group Functions, reporting
directly to the CEO, guide the governance and harmonisation of the main corporate processes, providing
operational support to all Group entities. With the aim of strengthening the focus on ESG objectives, a
Group Chief Sustainability Officer and a Chief Innovation Officer have been appointed.
ON BEHALF OF THE BOARD OF DIRECTORS
THE CHAIRMAN
Claudio De Conto
Annual Report 2020

SCOPE OF CONSOLIDATION – APPENDIX A

The following companies have been consolidated line-by-line:
FULLY CONSOLIDATED SUBSIDIARIES ON A LINE BY LINE BASIS
Legal name Office Currency Share capital % ownership Direct parent company
EUROPE
Austria
Prysmian OEKW GmbH Vienna Euro 2,053,007.56 100.00% Prysmian Cavi e Sistemi S.r.l.
Belgium
Draka Belgium N.V. Antwerpen Euro 61,973.38 98.52% Draka Holding B.V.
1.48% Draka Kabel B.V.
Denmark
Prysmian Group Denmark A/S Albertslund Danish Krone 40,001,000 100.00% Draka Holding B.V.
Estonia
Prysmian Group Baltics AS Keila Euro 1,664,000 100.00% Prysmian Group Finland OY
Finland
Prysmian Group Finland OY Kirkkonummi Euro 100,000 77.7972% Prysmian Cavi e Sistemi S.r.l.
19.9301% Draka Holding B.V.
2.2727% Draka Comteq B.V.
France
Prysmian (French) Holdings S.A.S. Paron Euro 129,026,210 100.00% Prysmian Cavi e Sistemi S.r.l.
Prysmian Cables et Systèmes France S.A.S. Sens Euro 136,800,000 100.00% Prysmian (French) Holdings S.A.S.
Draka Comteq France S.A.S. Paron Euro 246,554,316 100.00% Draka France S.A.S.
Draka Fileca S.A.S. Sainte Geneviève Euro 5,439,700 100.00% Draka France S.A.S.
Draka Paricable S.A.S. Marne La Vallée Euro 5,177,985 100.00% Draka France S.A.S.
Draka France S.A.S. Marne La Vallée Euro 261,551,700 100.00% Draka Holding B.V.
P.O.R. S.A.S. Marne La Vallée Euro 100,000 100.00% Draka France S.A.S.
Silec Cable. S. A. S. Montreau-Fault-Yonne Euro 60,037,000 100.00% Grupo General Cable Sistemas. S.L.
Germany
Prysmian Kabel und Systeme GmbH Berlin Euro 15,000,000 93.75% Draka Deutschland GmbH
6.25% Prysmian S.p.A.
Prysmian Unterstuetzungseinrichtung Lynen GmbH Eschweiler Deutsche Mark 50,000 100.00% Prysmian Kabel und Systeme GmbH
Draka Comteq Berlin GmbH & Co. KG Berlin Deutsche Mark 46,000,000 50.10% Prysmian Netherlands B.V.
Euro 1 49.90% Draka Deutschland GmbH
Draka Comteq Germany Verwaltungs GmbH Koln Euro 25,000 100.00% Draka Comteq B.V.
Draka Comteq Germany GmbH & Co. KG Koln Euro 5,000,000 100.00% Draka Comteq B.V.
Draka Deutschland Erste Beteiligungs GmbH Wuppertal Euro 25,000 100.00% Draka Holding B.V.
Draka Deutschland GmbH Wuppertal Euro 25,000 90.00% Draka Deutschland Erste Beteiligungs
GmbH
10.00% Draka Deutschland Zweite Beteiligungs
GmbH
Draka Deutschland Verwaltungs GmbH Wuppertal Deutsche Mark 50,000 100.00% Prysmian Kabel und Systeme GmbH
Draka Deutschland Zweite Beteiligungs GmbH Wuppertal Euro 25,000 100.00% Prysmian Netherlands B.V.
Draka Service GmbH Norimberga Euro 25,000 100.00% Draka Deutschland GmbH
Höhn GmbH Wuppertal Deutsche Mark 1,000,000 100.00% Draka Deutschland GmbH
Kaiser Kabel GmbH Wuppertal Deutsche Mark 9,000,000 100.00% Draka Deutschland GmbH
NKF Holding (Deutschland) GmbH i.L Wuppertal Euro 25,000 100.00% Prysmian Netherlands B.V.
Norddeutsche Seekabelwerke GmbH Nordenham Euro 50,025,000 100.00% Grupo General Cable Sistemas. S.L.
U.K.
Prysmian Cables & Systems Ltd. Eastleigh British Pound 113,901,120 100.00% Prysmian UK Group Ltd.
Prysmian Construction Company Ltd. Eastleigh British Pound 1 100.00% Prysmian Cables & Systems Ltd.
Prysmian Cables (2000) Ltd. Eastleigh British Pound 1 100.00% Prysmian Cables & Systems Ltd.
Cable Makers Properties & Services Ltd. Esher British Pound 39.08 75.00% Prysmian Cables & Systems Ltd.
25.00% Third parties
Prysmian Group
Comergy Ltd. Eastleigh British Pound 1 100.00% Prysmian Cavi e Sistemi S.r.l.
Prysmian Pension Scheme Trustee Ltd. Eastleigh British Pound 1 100.00% Prysmian S.p.A.
Prysmian UK Group Ltd. Eastleigh British Pound 70,011,000 100.00% Draka Holding B.V.
Draka Comteq UK Ltd. Eastleigh British Pound 14,000,002 100.00% Prysmian UK Group Ltd.
Draka UK Ltd. Eastleigh British Pound 1 100.00% Prysmian UK Group Ltd.
Draka UK Group Ltd. Eastleigh British Pound 2 100.00% Prysmian UK Group Ltd.
Prysmian PowerLink Services Ltd. British Pound 46,000,100 100.00% Prysmian UK Group Ltd.
General Cable Holdings (UK) Limited London British Pound 24,891,054 100.00% GK Technologies. Incorporated
General Cable Services Europe Limited London British Pound 1,178,495 100.00% General Cable Holdings (UK) Limited
NSW Technology Limited Aberdeen British Pound 1 100.00% Norddeutsche Seekabelwerke GmbH
Prysmian Telecom Cables and Systems UK Ltd. Eastleigh British Pound 1 100.00% Prysmian Cables & Systems Ltd.
Ireland
Prysmian Re Company Designated Activity Company Dublin Euro 20,000,000 100.00% Draka Holding B.V.
Italy
Prysmian Cavi e Sistemi S.r.l. Milan Euro 50,000,000 100.00% Prysmian S.p.A.
Prysmian Cavi e Sistemi Italia S.r.l. Milan Euro 77,143,249 100.00% Prysmian S.p.A.
Prysmian Treasury S.r.l. Milan Euro 80,000,000 100.00% Prysmian S.p.A.
Prysmian PowerLink S.r.l. Milan Euro 100,000,000 100.00% Prysmian S.p.A.
Fibre Ottiche Sud - F.O.S. S.r.l. Battipaglia Euro 47,700,000 100.00% Prysmian S.p.A.
Prysmian Electronics S.r.l. Milan Euro 10,000 100.00% Prysmian Cavi e Sistemi S.r.l.
General Cable Italia S.r.l. in liquidation Milan Euro 10,000 100.00% Grupo General Cable Sistemas. S.L.
Norway
Prysmian Group Norge AS Drammen Norwegian 22,500,000 100.00% Draka Holding B.V.
Krone
General Cable Nordic A/S Drammen Norwegian 1,674,000 100.00% Grupo General Cable Sistemas. S.L.
Krone
The Netherlands
Draka Comteq B.V. Amsterdam Euro 1,000,000 100.00% Draka Holding B.V.
Draka Comteq Fibre B.V. Eindhoven Euro 18,000 100.00% Prysmian Netherlands Holding B.V.
Draka Holding B.V. Amsterdam Euro 52,229,320.50 100.000% Prysmian S.p.A.
Draka Kabel B.V. Amsterdam Euro 2,277,976.68 100.00% Prysmian Netherlands B.V.
Donne Draad B.V. Nieuw Bergen Euro 28,134.37 100.00% Prysmian Netherlands B.V.
NKF Vastgoed I B.V. Delft Euro 18,151.21 99.00% Draka Holding B.V.
1.00% Prysmian Netherlands B.V.
NKF Vastgoed III B.V. Delft Euro 18,151.21 99.00% Draka Deutschland GmbH
1.00% Prysmian Netherlands B.V.
Prysmian Netherlands B.V. Delft Euro 1 100.00% Prysmian Netherlands Holding B.V.
Prysmian Netherlands Holding B.V. Amsterdam Euro 1 100.00% Draka Holding B.V.
General Cable Holdings Netherlands C.V. Amsterdam Euro 159,319,137 95.50% GK Technologies. Incorporated
1.00% GC Global Holdings. Inc.
3.50% Phelps Dodge National Cables
Corporation
Portugal
General Cable Investments. SGPS. Sociedade Funchal Euro 8,500,020 100.00% GK Technologies. Incorporated
Unipessoal. S.A.
General Cable Celcat. Energia e Telecomunicaçoes SA Pero Pinheiro Euro 13,500,000 100.00% General Cable Investments. SGPS.
Sociedade Unipes-soal.
Czech Republic
Draka Kabely. S.r.o. Velké Meziříčí Czech Koruna 255,000,000 100.00% Draka Holding B.V.
Annual Report 2020

Romania
Prysmian Cabluri Si Sisteme S.A. Slatina Leu Rumeno 103,850,920 99.9995% Draka Holding B.V.
0.0005% Prysmian Cavi e Sistemi S.r.l.
Russia
Limited Liability Company Prysmian RUS Rybinsk city Russian Rouble 230,000,000 99.00% Draka Holding B.V.
Limited Liability Company "Rybinskelektrokabel" Rybinsk city Russian Rouble 90,312,000 100.00% Limited Liability Company Prysmian RUS
Slovakia
Prysmian Kablo S.r.o. Bratislava Euro 21,246,001 99.995% Prysmian Cavi e Sistemi S.r.l.
Spain
Prysmian Cables Spain. S.A. (Sociedad Unipersonal) Vilanova I la Geltrù Euro 58,178,234.22 100.00% Draka Holding. S.L.
Draka Holding. S.L. (Sociedad Unipersonal) Santa Perpetua de Euro 24,000,000 100.00% Draka Holding B.V.
Mogo-da
GC Latin America Holdings. S.L. Abrera Euro 151,042,030 100% General Cable Holdings (Spain). S.L.
General Cable Holdings (Spain), S.L. Abrera Euro 138,304,698.48 99.349% GK Technologies. Incorporated
0.6510% General Cable Overseas Holdings. LLC
Grupo General Cable Sistemas. S.L. Abrera Euro 22,116,018.7 100.00% Draka Holding B.V.
Sweden
Prysmian Group North Europe AB Nässjö Swedish Krona 100,100 100.00% Draka Holding B.V.
Prysmian Group Sverige AB Nässjö Swedish Krona 100,000 100.00% Prysmian Group North Europe AB
Turkey
Turk Prysmian Kablo Ve Sistemleri A.S. Mudanya Turkish new Lira 216,733,652 83.7464% Draka Holding B.V.
0.4614% Turk Prysmian Kablo Ve Sistemleri A.S.
Hungary
Prysmian MKM Magyar Kabel Muvek Kft. Budapest Hungarian Forint 5,000,000,000 100.00% Prysmian Cavi e Sistemi S.r.l.
NORTH AMERICA
Canada
Prysmian Cables and Systems Canada Ltd. New Brunswick Canadian Dollar 1,000,000 100.00% Draka Holding B.V.
Draka Elevator Products Incorporated New Brunswick Canadian Dollar n/a 100.00% Prysmian Cables and Systems USA. LLC
General Cable Company Ltd. Halifax Canadian Dollar 126,552,215 100.00% General Cable Canada Holdings LLC
Cayman Islands
YA Holdings. Ltd. George Town US Dollar 50,000 100.00% General Cable Company Ltd.
Dominican Republic
General Cable Caribbean. S.R.L Santa Domingo Oeste Dominican Peso 2,100,000 99.995% GK Technologies. Incorporated
0.005% Diversified Contractors. Inc.
Trinidad and Tobago
General Cable Trinidad Limited Port of Spain Trinidadian 100 100.00% GK Technologies. Incorporated
Dollar
U.S.A.
Prysmian Cables and Systems (US) Inc. Carson City US Dollar 330,517,608 100.00% Draka Holding B.V.
Prysmian Cables and Systems USA. LLC Wilmington US Dollar 10 100.00% Prysmian Cables and Systems (US) Inc.
Prysmian Construction Services Inc. Wilmington US Dollar 1,000 100.00% Prysmian Cables and Systems USA. LLC
Draka Elevator Products. Inc. Boston US Dollar 1 100.00% Prysmian Cables and Systems USA. LLC
Draka Transport USA. LLC Boston US Dollar 0 100.00% Prysmian Cables and Systems USA. LLC
Diversified Contractors. Inc. Wilmington US Dollar 1,000 100.00% General Cable Industries. Inc.
GC Global Holdings. Inc. Wilmington US Dollar 1,000 100.00% General Cable Overseas Holdings. LLC
General Cable Canada Holdings LLC Wilmington US Dollar 0 100.00% General Cable Industries. Inc.
General Cable Corporation Wilmington US Dollar 1 100.00% Prysmian Cables and Systems (US) Inc.
General Cable Industries LLC Wilmington US Dollar 0 100.00% General Cable Industries. Inc.
General Cable Industries. Inc. Wilmington US Dollar 10 100.00% GK Technologies. Incorporated
General Cable Overseas Holdings. LLC Wilmington US Dollar 0 100.00% GK Technologies. Incorporated
General Cable Technologies Corporation Wilmington US Dollar 1,000 100.00% General Cable Industries. Inc.
Prysmian Group
Phelps Dodge Enfield Corporation Wilmington US Dollar 800,000 100.00% General Cable Industries. Inc.
Phelps Dodge National Cables Corporation Wilmington US Dollar 10 100.00% General Cable Industries. Inc.
GK Technologies. Incorporated West Trenton US Dollar 1,000 100.00% General Cable Corporation
CENTRAL/SOUTH AMERICA
Argentina
Prysmian Energia Cables y Sistemas de Argentina S.A. Buenos Aires Argentine Peso 992,359,215 40.01% Prysmian Consultora Conductores e
Instalaciones SAIC
59.74% Draka Hold-ing B.V.
0.11% Prysmian Cabos e Sistemas do Brasil S.A.
0.13% Third parties
Prysmian Consultora Conductores e Instalaciones SAIC Buenos Aires Argentine Peso 543,219,572 95.00% Draka Holding B.V.
Brazil
Prysmian Cabos e Sistemas do Brasil S.A. Sorocaba Brazilian Real 547,630,605 91.844% Prysmian Cavi e Sistemi S.r.l.
Draka Comteq Cabos Brasil S.A. Santa Catarina Brazilian Real 27,467,522 49.352% Draka Comteq B.V.
50.648% Prysmian Cabos e Sistemas do Brasil S.A.
General Cable Brasil Indústria e Comércio de Poços de Caldas Brazilian Real 536,087,471 100.00% Prysmian Cavi e Sistemi S.r.l.
Condutores Elétricos Ltd
Chile
Prysmian Cables Chile S.p.A. Santiago Chile Peso 1,900,000,000 100.00% Prysmian Cabos e Sistemas do Brasil S.A.
Cobre Cerrillos S.A. Cerrillos US Dollar 74,574,400 99.80% General Cable Holdings (Spain). S.L.
0.20% Third parties
Colombia
Productora de Cables Procables S.A.S. Bogotà Colombian Peso 1,902,964,285 99.96% GC Latin America Holdings. S.L.
0.04% GK Technologies. Incorporated
Costa Rica
Conducen. S.r.l. Heredia Costa Rican 1,845,117,800 73.52% GC Latin America Holdings. SL
Colón
26.48% Cahosa S.A.
Ecuador
Cables Electricos Ecuatorianos C.A. CABLEC Quito US Dollar 243,957 67.14% General Cable Holdings (Spain). S.L.
El Salvador
Conducen Phelps Dodge Centroamerica-El Salvador. Antiguo Cuscatlan (La US Dollar 22,858 99.95% Conducen. S.r.l.
S.A. de C.V. Li-ber
0.05% Third parties
Guatemala
Proveedora de Cables y Alambres PDCA Guatemala. Guatemala City Guatemalan 100,000 99.00% Conducen. S.r.l.
S.A. Quetzal
1.00% Third parties
Honduras
Electroconductores de Honduras. S.A. de C.V. Tegucigalpa Honduran 27,600,000 59.39% General Cable Holdings (Spain). S.L.
Lempira
40.61% Cahosa S.A.
Mexico
Draka Durango S. de R.L. de C.V. Durango Mexican Peso 163,471,787 99.996% Draka Mexico Holdings S.A. de C.V.
Draka Mexico Holdings S.A. de C.V. Durango Mexican Peso 57,036,501 99.999998% Draka Holding B.V.
NK Mexico Holdings S.A. de C.V. Città del Messico Mexican Peso n/a 100.00% Prysmian Group Finland OY
Prysmian Cables y Sistemas de Mexico S. Durango Mexican Peso 173,050,500 99.9983% Draka Holding B.V.
de R. L. de C. V.
0.0017% Draka Mexico Holdings S.A. de C.V.
Annual Report 2020

General Cable de Mexico. S.A de C.V. Tetla Mexican Peso 1,329,621,471 80.41733609% General Cable Industries. Inc.
19.58266361% Conducen. S.r.l.
0.00000015% General Cable Technologies Corporation
General de Cable de Mexico del Norte. S.A. de C.V. Piedras Negras Mexican Peso 10,000 99.80% GK Technologies. Incorporated
0.20% General Cable Industries. Inc.
PDIC Mexico. S.A. de C.V. San Jose Mexican Peso 50,000 99.998% Conducen. S.r.l.
San Jose 0.002% Third parties
Prestolite de Mexico. S.A. de C.V. Sonora Mexican Peso 50,000 99.80% General Cable Industries. Inc.
Servicios Latinoamericanos GC. S.A. de C.V. Puebla Mexican Peso 50,000 99.998% General Cable de Mexico. S.A de C.V.
0.002% General Cable Technologies Corporation
Panama
Alambres y Cables de Panama. S.A. Panama US Dollar 800,000 78.08% General Cable Industries. Inc.
21.92% Cahosa S.A.
Alcap Comercial S.A. Panama US Dollar 10,000 100.00% Conducen. S.r.l.
Cahosa S.A. Panama US Dollar n/a 100.00% GK Technologies. Incorporated
Perù
General Cable Peru S.A.C. Santiago de Surco Nuevo Sol 90,327,867.50 99.99999% GC Latin America Holdings. S.L.
(Lima) Peruviano
AFRICA
Angola
General Cable Condel. Cabos de Energia e Luanda Angolan Kwanza 20,000,000 99.80% General Cable Celcat. Energia e
Telecomunicaçoes SA Telecomunicaçoes SA
0.20% Third parties
Ivory Coast
SICABLE - Sociète Ivoirienne de Cables S.A. Abidjan CFA Franc 740,000,000 51.00% Prysmian Cables et Systèmes France
S.A.S.
South Africa
General Cable Phoenix South Africa Pty. Ltd. Illovo South African 1,000 100.00% GK Technologies. Incorporated
Rand
National Cables (Pty) Ltd. Illovo South African 101 69.30% Phelps Dodge National Cables
Rand Corporation
30.70% General Cable Holdings Netherlands C.V.
Tunisia
Auto Cables Tunisie S.A. Grombalia Tunisian Dinar 4,050,000 50.998% Prysmian Cables et Systèmes France
S.A.S.
Eurelectric Tunisie S.A. Menzel Bouzelfa Tunisian Dinar 1,850,000 99.97% Prysmian Cables et Systèmes France
S.A.S.
0.005% Prysmian (French) Holdings S.A.S.
0.02% Third parties
OCEANIA
Australia
Prysmian Australia Pty Ltd. Liverpool Australian Dollar 56,485,736 100.00% Prysmian Cavi e Sistemi S.r.l.
New Zealand
Prysmian New Zealand Ltd. Auckland New Zealand 10,000 100.00% Prysmian Australia Pty Ltd.
Dollar
ASIA
Saudi Arabia
Prysmian Powerlink Saudi LLC Al Khoabar Saudi Arabian 500,000 95.00% Prysmian PowerLink S.r.l.
Riyal
5.00% Third parties
Prysmian Group
China
Prysmian Tianjin Cables Co. Ltd. Tianjin US Dollar 36,790,000 67.00% Prysmian (China) Investment Company
Ltd.
Prysmian Cable (Shanghai) Co. Ltd. Shanghai US Dollar 5,000,000 100.00% Prysmian (China) Investment Company
Ltd.
Prysmian Wuxi Cable Co. Ltd. Yixing (Jiangsu US Dollar 29,941,250 100.00% Prysmian (China) Investment Company
Province) Ltd.
Prysmian Hong Kong Holding Ltd. Hong Kong Euro 72,000,000 100.00% Prysmian Cavi e Sistemi S.r.l.
Prysmian (China) Investment Company Ltd. Pechino Euro 72,003,061 100.00% Prysmian Hong Kong Holding Ltd.
Nantong Haixun Draka Elevator Products Co. Ltd. Nantong US Dollar 2,400,000 75.00% Draka Elevator Products. Inc.
Nantong Zhongyao Draka Elevator Products Co. Ltd. Nantong US Dollar 2,000,000 60.00% Draka Elevator Products. Inc.
Shanghai Guang Ye Optical Fibre Cable Co. Ltd. Shanghai US Dollar 15,580,000 55.00% Draka Comteq Germany GmbH & Co. KG
Suzhou Draka Cable Co. Ltd. Suzhou Chinese 304,500,000 100.00% Draka Cableteq Asia Pacific Holding Pte
Renminbi (Yuan) Ltd.
Prysmian Technology Jiangsu Co. Ltd. Yixing Euro 51,150,100 100.00% Prysmian (China) Investment Company
Ltd.
Prestolite Wire (Shanghai) Company. Ltd. Shanghai US Dollar 300,000 100.00% General Cable Industries. Inc.
Philippines
Draka Philippines Inc. Cebu Philippine Peso 253,652,000 99.9999975% Draka Holding B.V.
India
Associated Cables Pvt. Ltd. Mumbai Indian Rupee 61,261,900 100.00% Oman Cables Industry (SAOG)
Jaguar Communication Consultancy Services Private Mumbai Indian Rupee 92,602,218 99.99999% Prysmian Cavi e Sistemi S.r.l.
Ltd.
Indonesia
PT.Prysmian Cables Indonesia Cikampek US Dollar 67,300,000 99.48% Draka Holding B.V.
Malaysia
Sindutch Cable Manufacturer Sdn Bhd Malacca Malaysian 500,000 100.00% Draka Cableteq Asia Pacific Holding
Ringgit Pte Ltd.
Draka Marketing and Services Sdn Bhd Malacca Malaysian 500,000 100.00% Cable Supply and Consulting Company
Ringgit Pte Ltd.
Draka (Malaysia) Sdn Bhd Malacca Malaysian 8,000,002 100.00% Cable Supply and Consulting Company
Ringgit Pte Ltd.
Oman
Oman Cables Industry (SAOG) Al Rusayl Omani Riyal 8,970,000 51.17% Draka Holding B.V.
Oman Aluminium Processing Industries (SPC) Sohar Omani Riyal 4,366,000 100.00% Oman Cables Industry (SAOG)
Singapore
Prysmian Cables Asia-Pacific Pte Ltd. Singapore Singapore Dollar 213,324,290 100.00% Draka Holding B.V.
Prysmian Cable Systems Pte Ltd. Singapore Singapore Dollar 25,000 50.00% Draka Holding B.V.
50.00% Prysmian Cables & Systems Ltd.
Draka Offshore Asia Pacific Pte Ltd. Singapore Singapore Dollar 51,000 100.00% Draka Cableteq Asia Pacific Holding
Pte Ltd.
Draka Cableteq Asia Pacific Holding Pte Ltd. Singapore Singapore Dollar 28,630,503.70 100.00% Draka Holding B.V.
Singapore Cables Manufacturers Pte Ltd. Singapore Singapore Dollar 1,500,000 100.00% Draka Cableteq Asia Pacific Holding
Pte Ltd.
Cable Supply and Consulting Company Private Singapore Singapore Dollar 50,000 100.00% Draka Cableteq Asia Pacific Holding
Limited Pte Ltd.
Draka Comteq Singapore Pte Ltd. Singapore Singapore Dollar 500,000 100.00% Draka Comteq B.V.
Draka NK Cables (Asia) Pte Ltd. Singapore Singapore Dollar 200,000 100.00% Prysmian Group Finland OY
Annual Report 2020

Thailand
MCI-Draka Cable Co. Ltd. Bangkok Thai Baht 435,900,000 70.250172% Draka Cableteq Asia Pacific Holding
Pte Ltd.
0.000023% Draka (Malaysia) Sdn Bhd
0.000023% Sindutch Cable Manufacturer Sdn Bhd
0.000023% Singapore Cables Manufacturers Pte Ltd.
General Cable Asia Pacific & Middle East Co., Ltd. Bangkok Thai Baht 30,000,000 100.00% GK Technologies. Incorporated
Prysmian Group
The following companies have been accounted for using the equity method:
EUROPE
Germany
Kabeltrommel GmbH & Co. KG Troisdorf Euro 10,225,837.65 43.18% Prysmian Kabel und Systeme GmbH
1.75% Norddeutsche Seekabelwerke GmbH
Kabeltrommel GmbH Troisdorf Deutsche Mark 51,000 41.18% Prysmian Kabel und Systeme GmbH
5.82% Norddeutsche Seekabelwerke GmbH
Nostag GmbH & Co. KG Oldenburg Euro 540,000 33.00% Norddeutsche Seekabelwerke GmbH
U.K.
Rodco Ltd. Woking British Pound 5,000,000 40.00% Prysmian Cables & Systems Ltd,
Poland
Eksa Sp.Zo.o. Sokolów Polish Zloty 394,000 29.949% Prysmian Cavi e Sistemi S,r,l,
Russia
Elkat Ltd. Moscow Russian Rouble 10,000 40.00% Prysmian Group Finland OY
CENTRAL/SOUTH AMERICA
Chile
Colada Continua Chilena S.A. Quilicura Chile Peso 100 41.00% Cobre Cerrillos S,A,
(Santiago Chile)
ASIA
China
Yangtze Optical Fibre and Cable Joint Stock Wuhan Chinese 757,905,108 23.73% Draka Comteq B,V,
Limited Co. Renminbi
(Yuan)
Yangtze Optical Fibre and Cable (Shanghai) Co. Ltd. Shanghai Chinese 100,300,000 75.00% Yangtze Optical Fibre and Cable Joint
Renminbi Stock Limite
(Yuan)
25.00% Draka Comteq B,V,
Japan
Precision Fiber Optics Ltd. Chiba Japanese Yen 138,000,000 50.00% Draka Comteq Fibre B,V,
Cayman Islands
Phelps Dodge Yantai China Holdings. Inc. George Town Malaysia 99 66.67% YA Holdings. Ltd,
Malaysia
Power Cables Malaysia Sdn Bhd Selangor Darul Eshan Malaysian 18,000,000 40.00% Draka Holding B,V,
Ringgit
Annual Report 2020

List of other investments not consolidated pursuant to IFRS 10:
NON-CONSOLIDATED COMPANIES
Legal name % ownership Direct parent company

ASIA
India
Ravin Cables Limited 51.00% Prysmian Cavi e Sistemi S.r.l.
United Arab Emirates
Power Plus Cable CO. LLC 49.00% Ravin Cables Limited
AFRICA
South Africa
Pirelli Cables & Systems (Proprietary) Ltd. 100.00% Prysmian Cavi e Sistemi S.r.l.
Prysmian Group
Certification of the
Consolidated Financial Statements
Pursuant to art. 81-ter of consob regulation 11971 dated 14 may 1999
and subsequent amendments and additions
1. The undersigned Valerio Battista, as Chief Executive Officer, and Carlo Soprano and Alessandro
Brunetti, as managers responsible for preparing the corporate accounting documents of Prysmian
S.p.A., certify, also taking account of the provisions of paragraphs 3 and 4, art. 154-bis of Italian
Legislative Decree 58 dated 24 February 1998, that during 2020 the accounting and administrative
processes for preparing the consolidated financial statements:
• have been adequate in relation to the business’s characteristics and
• have been effectively applied.
2. The adequacy of the accounting and administrative processes for preparing the consolidated
financial statements at 31 December 2020 has been evaluated on the basis of a procedure established
by Prysmian in compliance with the internal control framework established by the Committee of
Sponsoring Organizations of the Treadway Commission, which represents the generally accepted
standard model internationally.
It is nonetheless reported that:
• during 2020, several of Prysmian Group’s companies were involved in the information system
changeover project. The process of fine-tuning the new system’s operating and accounting
functions is still in progress for some of them; in any case, the system of controls in place ensures
uniformity with the Group’s system of procedures and controls.
3. It is also certified that:

3.1 The consolidated financial statements at 31 December 2020:
a) have been prepared in accordance with applicable international accounting standards
recognised by the European Union under Regulation (EC) 1606/2002 of the European
Parliament and Council dated 19 July 2002;
b) correspond to the underlying accounting records and books of account;
c) are able to provide a true and fair view of the issuer’s statement of financial position and
results of operations and of the group of companies included in the consolidation.
3.2 The directors’ report contains a fair review of performance and the results of operations, and of
the situation of the issuer and the group of companies included in the consolidation, together
with a description of the principal risks and uncertainties to which they are exposed.
Valerio Battista Carlo Soprano Alessandro Brunetti

Chief Executive Officer Managers responsible for preparing company financial reports
Annual Report 2020

Independent Auditors’ Report
Group Annual
Bilancio Report
Consolidato 249
EY S.p.A. Tel: +39 02 722121

Via Meravigli, 12 Fax: +39 02 722122037
20123 Milano ey.com
Independent auditor ’s repor t pursuant t o ar t icle 14 of Legislat ive

Decree n. 39, dat ed 27 J anuary 2010 and art icle 10 of EU Regulat ion
n. 537/ 2014
(Translat ion from t he original It alian t ext )
To t he Shareholders of
Prysmian S.p.A.
Report on t he Audit of t he Consolidat ed Financial Stat ement s

Opinion
We have audited the consolidated financial statements of Prysmian Group (the Group), which
comprise the consolidated statement of financial position as at 31 December 2020, and the
consolidated statement of income, the consolidated statement of comprehensive income,
consolidated statement of changes in equity and consolidated statement of cash flows for the year
then ended, and notes to the consolidated financial statements, including a summary of significant
accounting policies.
In our opinion, the consolidated financial statements give a t rue and fair view of the financial position
of the Group as at 31 December 2020, and of its financial performance and its cash flows for the year
then ended in accordance wit h International Financial Reporting Standards as adopted by the
European Union and with the regulations issued for implementing art. 9 of Legislative Decree n.
38/ 2005.
Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISA Italia). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the
Audit of the Consolidated Financial Statements section of our report. We are independent of Prysmian
S.p.A. in accordance with the regulations and standards on ethics and independence applicable to
audits of financial statements under Italian Laws. We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our opinion.
Key Audit Mat t ers

Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the consolidated financial statements of the current period. These matters were
addressed in the context of our audit of the consolidated financial statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
We identified the following key audit matters:
EY S.p.A.
Sede Legale: Via Lombardia, 31 - 00187 Roma
Capit ale Sociale Euro 2.525.000,00 i.v.
Iscrit t a alla S.O. del Regist ro delle Imprese presso la C.C.I.A.A. di Roma
Codice fiscale e numero di iscrizione 0 0434000584 - numero R.E.A. 250904
P.IVA 00891 231003
Iscrit t a al Regist ro Revisori Legali al n. 70945 Pubblicat o sulla G.U. Suppl. 13 - IV Serie Speciale del 17/ 2/ 1998
Iscrit t a all’Albo Speciale delle società di revisione
Consob al progressivo n. 2 delibera n.10831 del 16/ 7/ 1997
A member firm of Ernst & Young Global Limit ed
Annual Report 2020

Key Audit Matt ers Audit Response

Recognit ion of revenues and margins from
const ruct ion cont ract s and risks related to
ongoing and complet ed cont ract s
The consolidated financial statements include Our audit procedures related to the key audit
revenues related to the “ Projects” segment for matter included, among the others, the analysis
Euro 1,438 million. These revenues, and the of the accounting treatment adopted by
related margins, are mainly derived from Prysmian Group, as well as the analysis of the
construction contracts and are recognized in the procedures and key controls implemented by
income statement considering the progress of management to assess the criteria for
the project, in accordance with the percentage recognition of revenues and margins from
of completion method, which is determined on construction contracts.
the basis of actual costs, as compared to We performed a detailed analysis of
expected costs. assumptions involving a significant judgment by
Processes and method of revenue recognition directors, in particular with regard to the
and evaluation of construction contracts and the estimate of costs to complete significant
valuation of liabilities related to ongoing and projects, including expected risks and penalties
completed contracts are based on assumptions, and contract modifications expected or under
sometimes complex, which imply, by their negotiation. This analysis included also the
nature, estimates by directors, especially with valuation of liabilities related to completed
regard to forecasted costs to complete each contracts and the expected costs for warranty
project, including the estimate of risks and repairs. The analysis has been performed
penalties where applicable and for warranty through the analysis of the contracts and
repairs on completed projects, as well as to project documentation, the inquiries with
contract modifications either expected or under project managers and the analysis of significant
negotiation as well as to changes in estimates events occurred after the reporting period.
from prior periods. We performed a comparative analysis of
Considering the complexity of assumptions material variances of projects results in
adopted in forecasting costs to complete the comparison with the original budget, and, where
projects, in accounting for contract applicable, with prior period. As part of our
modifications under negotiation and in the procedures, we also performed substantive
valuation of risks related to ongoing and testing on a sample of costs recognized in the
completed contracts as well as the potential fiscal year.
significant impact of changes in estimates on We also requested external confirmations to a
the net result of the fiscal year we assessed this sample of contractors, in order to test the
matter as a key audit matter. existence and completeness of specific contract
Financial statements disclosures related to this clauses.
matter are reported in the notes “ 14. Provisions Finally, we analyzed the disclosures provided in
for risks and charges” , “ 39.9 Construction the consolidated financial statements of
contracts” and “ 40. Estimates and assumptions” Prysmian Group as of 31 December 2020.
of the consolidated financial statements.
Prysmian Group
Recoverability of goodwill
The goodwill recognized in the consolidated Our audit procedures related to the key audit
financial statements of Prysmian Group as of 31 matter included, among the others, the analysis
December 2020 amounts to Euro 1,508 million. of the policy adopted by the Company with
Goodwill has been allocated to groups of CGUs, regard to the impairment testing, the analysis of
corresponding to the operating segments the adequacy of the allocation to each CGU of
(Projects, Energy, Telecom), which are expected the assets and liabilities and the analysis of
to benefit from the synergies of business future cash flows, taking into account the
combinations and which represent the lowest impairment testing procedure approved by the
level at which management monitors segment Board of Directors.
business performance. In addition, our procedures included the
The process as well as the methods of reconciliation of forecasted cash flows per each
evaluation and calculation of the recoverable segment with the Group budget prepared for the
amount of each operating segment are based on 2020 fiscal year, the analysis of the quality of
assumptions, sometimes complex, which imply, the forecasts taking into account the historical
by their nature, estimates by the directors, accuracy of the previous forecasts and the
especially with regard to the forecast of future analysis of the calculation of long-term growth
results, to the identification of long-term growth and discount rates.
and discount rates applied on forecasted future Our procedures were performed with the
cash flows. support of our experts in valuation techniques
Considering the complexity of assumptions who performed independent calculation and
adopted in the estimation of the recoverable sensitivity analysis on the key assumptions in
amount of goodwill we assessed this matter as a order to identify the change in the assumptions
key audit matter. that could have a significant impact on the
valuation of the recoverable amount.
Finally, we analyzed the disclosures provided in
the consolidated financial statements of
Prysmian Group as of 31 December 2020.
Responsibilit ies of Directors and Those Charged wit h Governance for t he

Consolidat ed Financial St atement s
The Directors are responsible for the preparation of the consolidated financial statements that give a
true and fair view in accordance with International Financial Reporting Standards as adopted by the
European Union and with the regulations issued for implementing art. 9 of Legislative Decree n.
38/ 2005, and, wit hin the terms provided by the law, for such internal control as they determine is
necessary to enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error.
The Directors are responsible for assessing the Group’s ability to continue as a going concern and,
when preparing the consolidated financial statements, for the appropriateness of the going concern
assumption, and for appropriate disclosure thereof. The Directors prepare the consolidated financial
statements on a going concern basis unless they either intend to liquidate the Parent Company
Prysmian S.p.A. or to cease operations, or have no realistic alternative but to do so.
The statutory audit committee (“ Collegio Sindacale” ) is responsible, within the terms provided by the
law, for overseeing the Group’s financial reporting process.
Annual Report 2020

Audit or’s Responsibilit ies for t he Audit of t he Consolidat ed Financial St atement s

Our objectives are to obtain reasonable assurance about whether the consolidated financial
statements as a whole are free from material misstatement, whether due to fraud or error, and to
issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance with International Standards on Auditing
(ISA Italia) will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these consolidated
financial statements.
As part of an audit in accordance with International Standards on Auditing (ISA Italia), we have
exercised professional judgment and maintained professional skepticism throughout the audit. In
addition:
 we have identified and assessed the risks of material misstatement of the consolidated
financial statements, whether due to fraud or error, designed and performed audit procedures
responsive to those risks, and obtained audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control;
 we have obtained an understanding of internal control relevant to the audit in order to design
audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Group’s internal control;
 we have evaluated the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the Directors;
 we have concluded on the appropriateness of Directors’ use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the Group’s ability to
continue as a going concern. If we conclude that a material uncer tainty exists, we are required
to draw attention in our auditor’s report to the related disclosures in the financial statements
or, if such disclosures are inadequate, to consider this matter in forming our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the Group to cease to continue as a going
concern;
 we have evaluated the overall presentation, structure and content of the consolidated
financial statements, including the disclosures, and whether the consolidated financial
statements represent the underlying transactions and events in a manner that achieves fair
presentation;
 we have obtained sufficient appropriate audit evidence regarding the financial information of
the entities within the Group to express an opinion on the consolidated financial statements.
We are responsible for the direction, supervision and performance of the group audit. We
remain solely responsible for our audit opinion.
We have communicated with those charged wit h governance, identified at an appropriate level as
required by ISA Italia, regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify
during our audit.
Prysmian Group
We have provided those charged with governance with a statement that we have complied wit h the
ethical and independence requirements applicable in Italy, and we have communicated with them all
matters that may reasonably be thought to bear on our independence, and where applicable, related
safeguards.
From the matters communicated with those charged wit h governance, we have determined those
matters that were of most significance in the audit of the financial statements of the current period
and are therefore the key audit matters. We have described these matters in our auditor ’s repor t.
Addit ional informat ion pursuant to art icle 10 of EU Regulat ion n. 537/ 14
The shareholders of Prysmian S.p.A., in the general meeting held on 16 April 2015, engaged us to
perform the audits of the consolidated financial statements for each of the years ending 31 December
2016 to 31 December 2024.
We declare that we have not provided prohibited non-audit services, referred to article 5, par. 1, of EU
Regulation n. 537/ 2014, and that we have remained independent of the Group in conducting the
audit.
We confirm that the opinion on the consolidated financial statements included in this report is
consistent with the content of the additional report to the audit committee (Collegio Sindacale) in
their capacity as audit committee, prepared pursuant to article 11 of the EU Regulation n. 537/ 2014.
Report on compliance wit h ot her legal and regulat ory requirement s
Opinion pursuant to art icle 14, paragraph 2, subparagraph e), of Legislat ive
Decree n. 39 dated 27 J anuary 2010 and of art icle 123-bis, paragraph 4, of
Legislat ive Decree n. 58, dat ed 24 February 1998
The Directors of Prysmian S.p.A. are responsible for the preparation of the Report on Operations and
of the Report on Corporate Governance and Ownership Structure of Prysmian Group as at 31
December 2020, including their consistency with the related consolidated financial statements and
their compliance with the applicable laws and regulations.
We have performed the procedures required under audit standard SA Italia n. 720B, in order to
express an opinion on the consistency of the Report on Operations and of specific information
included in the Report on Corporate Governance and Ownership Structure as provided for by article
123-bis, paragraph 4, of Legislative Decree n. 58, dated 24 February 1998, with the consolidated
financial statements of Prysmian Group as at 31 December 2020 and on their compliance with the
applicable laws and regulations, and in order to assess whether they contain material misstatements.
In our opinion, the Report on Operations and the above mentioned specific information included in
the Report on Corporate Governance and Ownership Structure are consistent wit h the consolidated
financial statements of Prysmian Group as at 31 December 2020 and comply with the applicable laws
and regulations.
Annual Report 2020

With reference to the statement required by art. 14, paragraph 2, subparagraph e), of Legislative
Decree n. 39, dated 27 January 2010, based on our knowledge and understanding of the entity and
its environment obtained through our audit, we have no matters to report.
Statement pursuant t o art icle 4 of Consob Regulat ion implement ing Legislat ive
Decree n. 254, dat ed 30 December 2016
The Directors of Prysmian S.p.A. are responsible for the preparation of the non-financial information
pursuant to Legislative Decree n. 254, dated 30 December 2016. We have verified that non-financial
information have been approved by Directors.
Pursuant to article 3, paragraph 10, of Legislative Decree n. 254, dated 30 December 2016, such
non-financial information are subject to a separate compliance report signed by us.
Milan, 1 April 2021
EY S.p.A.
Signed by: Pietro Carena, Auditor
This report has been translated into the English language solely for the convenience of
international readers.
Prysmian Group
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Group Annual Report A

LETTER FROM THE CEO 3

GROUP ANNUAL REPORT 6

02_CONSOLIDATED FINANCIAL STATEMENTS 129

03_EXPLANATORY NOTES 135

CERTIFICATION OF THE CONSOLIDATED FINANCIAL STATEMENTS

INDEPENDENT AUDITORS’ REPORT 248

Annual Report 2020

Letter from the CEO

Our priorities in tackling the Covid-19 pandemic have been, first

Annual Report 2020

RESULTS FOR THE YEAR

COVID-19: “PEOPLE FIRST”, PROTECTION OF BUSINESS, INNOVATION/DIGITALISATION

ACCELERATION ON CLIMATE CHANGE. ‘ZERO EMISSION’ PRYSMIAN BY 2040 (SCOPE 1 AND 2)

Annual Report 2020

02_CONSOLIDATED FINANCIAL STATEMENTS 129

03_EXPLANATORY NOTES 135

Certification of the Consolidated Financial Statements

Independent Auditors’ Report 248

Annual Report 2020

Directors and auditors

BOARD OF DIRECTORS (4)

Chief Executive Officer Valerio Battista

Directors Maria Elena Cappello (**) (3)

BOARD OF STATUTORY AUDITORS (5)

Standing Statutory Auditors Laura Gualtieri

Alternative Statutory Auditors Michele Milano

Independent Auditors (6) EY S.p.A.

(*) Independent director as per Italian Legislative Decree 58/1998.

Annual Report 2020

(Euro/million) 2020 2019 % change 2018 (**)

(Euro/million) 31.12.2020 31.12.2019 Change 31.12.2018

(Euro/million) 2020 2019 % change 2018 (**)

Number of patents (5) 5,581 5,881 5,627

Annual Report 2020

2020 SALES BY GEOGRAPHICAL AREA

53% EMEA (*)

(*) Europe, Middle East, Africa.

2020 SALES BY BUSINESS AREA

SALES (1) ADJUSTED ADJUSTED NET OPERATING NET FINANCIAL DEBT

11,519 1,007 689 749 2,222

8.7% 6.0% 6.5%

Annual Report 2020

Intelligent virtual assistant for Innovative technology for monitoring

P-Laser Prysmian launches the first optical

Crete-Attica submarine EHC Global

Sirocco HD Sirocco Extreme

First 180µm optical fibre cable German Corridors

Dow Jones Sustainability Index 2020 The “Leonardo da Vinci”

Annual Report 2020

THE PRYSMIAN GROUP, A GLOBAL LEADER

Leadership in strategic sectors

Sales of over € 10 bln 104 production plants in more than 50 countries

1879 1998 2005 2007

Prysmian Group’s The commpany begins Prysmian is founded Prysmian becomes

1927 1990 2005 2007 2012

THE SHARD. LONDRA HUDSON TRANSMISSION PROJECT. NEW YORK-NEW JERSEY

GUGGENHEIM MUSEUM. BILBAO BURJI KHALIFA. DUBAI WTC. NEW YORK

Annual Report 2020

LETTER FROM THE CEO 3

GROUP ANNUAL REPORT 6

02_CONSOLIDATED FINANCIAL STATEMENTS 129

03_EXPLANATORY NOTES 135

INDEPENDENT AUDITORS’ REPORT 248

02_CONSOLIDATED FINANCIAL STATEMENTS 129

03_EXPLANATORY NOTES 135

Independent Auditors’ Report 248

48% total Group revenue from