European Commission’s decision relating to the antitrust proceedings in the terrestrial HV and submarine cables markets.

Prysmian S.p.A. announces that the European Commission, following the proceedings that began in January 2009, has issued a decision today ruling that all major worldwide cable manufacturers, including Prysmian S.p.A.’s Italian affiliate Prysmian Cavi e Sistemi S.r.l., participated from February 18, 1999 to January 28, 2009, in anticompetitive practices in the terrestrial high voltage cables and submarine cables European markets.

The Commission has found a) Prysmian Cavi e Sistemi S.r.l. jointly liable with Pirelli & C. S.p.A. for the period from 18 February 1999 to 28 July 2005 and has ordered them to pay a fine of EUR 67,310,000 and b) Prysmian Cavi e Sistemi S.r.l. jointly liable with Prysmian S.p.A. and The Goldman Sachs Group Inc. for the period from July 29, 2005 to January 28, 2009 and has ordered them to pay a fine of EUR 37,303,000.

Prysmian believes that the decision is based on a superficial and erroneous analysis of the relevant facts and, therefore, considers the decision unlawful. Accordingly, Prysmian intends to bring an appeal before the Tribunal of the European Union.

Since 2011, Prysmian has recognised balance sheet reserves totaling approximately EUR 200 million in relation to the risks linked to the antitrust investigations launched by the European Commission and the antitrust authorities of the US, Canada and Australia. Prysmian has not allocated any reserve in respect of the proceedings initiated by the Brazilian antitrust authority thus far.