Prysmian S p A : ANNUAL INTEGRATED REPORT 2023

CONNECT TO LEAD

2023

Integrated Annual Report

The planet's pathways

Disclaimer

This document contains forward-looking statements, specifically in the section entitled and "Business outlook", that relate to future events and the operating, economic and financial results of Prysmian. By their nature, forward-looking statements involve risk and uncertainty because they depend on the occurrence of future events and circumstances. Actual results may diverge even significantly from those announced in forward-looking statements due to a variety of factors.

"Connect, to lead" represents the essence of Prysmian's mission and strategic vision. We want to connect the world and together lead the energy transition and digital transformation. We want to push ourselves further and further. Beyond the boundaries of innovation, developing sustainable technologies and solutions in tune with the evolving dynamics of the market. To be the leaders. To be a driving force behind the transformation

Index

Letter from the CEO	7
A. INTEGRATED ANNUAL REPORT	9
1.	Introduction: Prysmian approach to the integrated report	9
2.	Highlights	10
	Key financial, operating and ESG performance data	10
3.	Prysmian: Connect, to lead	12
	Global leadership	12
	The DNA of Prysmian: mission, vision and values of the Group	14
	Favorable market development: 4 macro-trends	15
	Prysmian's competitive advantages	16
	Prepared for the future	17
	The pillars of the Prysmian's strategy	18
	Prysmian's business model	20
4.	Prysmian: Sustain, to lead	22
	Prysmian's approach to sustainability: a model based on four pillars	22
	Prysmian's commitment to sustainable development and the achievement of the UN SDGs	23
5.	Prysmian's two ambitions: Climate Change and Social Ambition	25
	Climate Change Ambition	25
	Social Ambition	26
6.	The sustainability scorecard	27
7.	An international network	30
	Prysmian in ESG indices	30
	Proactive role in trade associations and organizations	32
8.	Corporate governance	34
	Directors and auditors	34
	Governance and corporate structure	34
	Organization chart	40
	Ownership structure	42
	Shareholders' meeting	45
9.	Business environment and financial markets	47
	Macroeconomic environment	47
	Financial market performance	48
10.	Significant events during the year	50
11.	Group performance and results	60
	Financial performance	60
	Review of Projects operating segment	62
	Review of Energy operating segment	63
	Review of Telecom operating segment	66
	Results by geographical area	67
	Group statement of financial position	68
	Alternative performance indicators	72

2	Prysmian - Relazione Annuale Integrata 2023

12.	Risk factors	76
	Prysmian Risk Model	76
	Risk assessment criteria	78
	Strategic risks	79
	Financial risks	80
	Operational risks	83
	Legal and compliance risks	85
	Planning and reporting risks	85
13.	Other information	86
14.	Business outlook	87
15.	Certification pursuant to Art. 2.6.2. of the regulation of markets organized
	and managed by Borsa italiana S.p.A.	87
16.	Consolidated non-financial statement	88
	Introduction	88
	Stakeholder engagement and materiality analysis	89
	Prysmian's impact materiality	91
	Dialogue with Prysmian's stakeholders	93
	Sustainability week	94
	2023 Sustainability Call for Ideas Project	94
	Prysmian's Financial Materiality	101
	Ethics and integrity	106
	Business ethics and integrity: the pillars of sustainability	106
	Prysmian's tax strategy	110
	Cybersecurity	120
	Environmental responsibility	123
	Environmental performance of Prysmian	124
	Environmental investments	125
	Environmental data reporting	127
	People, Prysmian's human capital	140
	Composition of human capital	142
	Training and development	152
	Remuneration policy and welfare plans	155
	Respect for Human Rights	159
	Health and safety in the workplace	161
	Sustainable value chain	166
	Prysmian's supply chain	167
	Logistics and transportation	174
	Prysmian's Customers. The Customer Excellence approach	176
	Positive impact on communities	178
	Sustainable innovation for products, applications and processes	180
	The pillars of innovation and the Innovation Steering Committee	182
	Introduction of New Products	193
	Group Investment for a sustainable future	195
	Intellectual Property	197
	Methodology	200
	Calculation of GHG emissions	201
	Calculation of Scope 3 GHG emissions	202
	GRI Content Index	208
17.	SASB e TCFD	213
	SASB Index	213
	TCFD correlation table	214
	Annexes to the Consolidated Non-Financial Statement	214
18.	EU Taxonomy	222
	The process for determining eligibility	222
	The process for determining alignment	223
	Criteria for the calculation of KPIs and background information	229
	Commentary on performance trend and future development	231
19.	Audit report on non-financial disclosure	239

A. Relazione sulla gestione

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B.	CONSOLIDATED FINANCIAL STATEMENTS	243
1.	Consolidated financial statements	243
2.	Explanatory Notes	247
3.	3. Certification of the Consolidated Financial Statements pursuant
	to Art. 81-ter of CONSOB Regulation 11971 dated 14 May 1999 as amended	343
4.	Auditor's Report	344

C.	PARENT COMPANY FINANCIAL STATEMENTS	351
1.	Directors' report	351
2.	Financial statements	359
3.	Explanatory notes	363
4.	Certification of the separate financial statements pursuant
	to Art. 81-ter of CONSOB regulation 11971 dated 14 may 1999 as amended	416
5.	Auditors' Report	418
6.	Report of the Board of Statutory Auditors	423

4	Prysmian - Relazione Annuale Integrata 2023

Letter from the CEO

The year 2023 was an extraordinary year for our Company, as we continued with the positive results achieved during the previous year. Despite a challenging economic environment

• characterized by a still fragile macroeconomic and market scenario - we have confirmed our position as market leader through a comprehensive and balanced portfolio that is well exposed to structural trends and great resilience. Once again
  Prysmian ended 2023 with excellent performance, ensu- ring a creation of value for all our stakeholders.

By carefully understanding the market dynamics, we experienced solid margin expansion and strong cash genera- tion. The revenue figure proves to be essentially stable at €15,354M with significant growth in the Projects business (organic growth +15.3%), supported by solid execution of interconnection and offshore wind farm projects, as well as projects with better profitability in the backlog. We closed the year with a record backlog of about €18 billion.

The results in terms of profitability were significant, with a major increase in Adj EBITDA growing to €1,628M (+9.4% vs 2022). Margins also improved to 10.6% (9.3% in 2022), in addition to an increase in net profit to €547M (+7.5% vs. 2022).

Cash generation remains a key factor in our success, with Free Cash Flow at €724M (+29.5% vs. 2022). The soundness of

the financial structure enables us to sustain with balance the sizeable investments to support growth, to make our leadership even more solid and to seize the opportunities offered by the market.

No less important has been our commitment to ESG performance. Prysmian recognizes that sustainability is an essential element in creating value for all our stakeholders. We have further revised our decarbonization plan upward to contribute even more proactively to the fight against climate change. We continue to drive innovation in the cable industry by developing products that have a lower environmental impact and that can support our customers in their decarbonization goals.

Significant improvements have also been recorded in the goals of inclusiveness and focus on people. The results of initiatives implemented by Prysmian in recent years have enabled the company to intensify its efforts to anticipate achieving some of the targets set for 2030 as early as 2027, such as the KPI on gender equality. I am also proud to note that 46% of our employees, including blue collars, are shareholders in the group, an important lever for the future success of the company, as well as a source of great pride.

In conclusion, I would like to express my gratitude for having had the honor of leading this company for almost two decades. I am extremely pleased with the milestones we have achieved together, supported by a competent and well-established management team and talented colleagues, without whom Prysmian would not be what it is today: a world leader in the cable industry.

With confidence I place the helm in the hands of Massimo Battaini, who has been part of the team since the beginning of this great project and has played a key role in the most important moments for the Group. It is, therefore, a source of pride for me to complete my term, handing over to my successors a solid company with a clear vision for its future. It is a story that, starting tomorrow, I will support from a different position, but with the same closeness.

Valerio Battista

Chief Executive Officer, Prysmian

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Prysmian - Integrated Annual Report 2023