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Presentation Regional Analysis:European Cable Markets

Philip RadbourneDirector – Research, Wire & Cable Team

Integer Research Ltd, London Office

ICF Congress, Amsterdam 2014

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• Introduction• Global Wire & Cable industry• Overview of European cable markets• Leading suppliers• Conclusions – questions & answer session

European Cable Markets

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• Founded in 2002 in London

• Integer tracks range of industries, from cable,

power systems, metals, mining, through

chemicals and emissions

• 55 staff in London, 95% of business outside the

UK

• Offices in Beijing and Tokyo

• Running 3rd Advanced Cable Asia Conference in

Shanghai in December 2014

• Advanced Cable Middle East in Abu Dhabi in

February 2015

Integer Research Ltd – London office

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Our Experts & Authors of the ICF SurveyPhilip Radbourne is Research Director at Integer Research Ltd. He is one of the founders of the company. Philip has more than 20 years of experience in business analysis and consulting. He presented the ICF’s South American survey in Brazil in 2012.

Josie Armstrong is Business Manager for Integer’s consulting business. Josie has experience in managing and undertaking single client assignments covering a range of industries including wire and cable, aluminium, copper and fertilizers. Josie worked for BP Australia, and spent time working in China.

Julia Belyava is a Analyst and Russian speaker. Julia has worked on a number projects in Russia and Ukraine in the Chemical and Fertilizer Industries. Julia was the main contributor to the Russian wire and cable survey and chapter.

Louisa Winnik is an analyst working across in Integer’s business areas. She is the editor for the Wire & Cable Data Service. Louisa has a BA in Geography and an MA in Public Policy from King’s College, London.

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• Introduction• Global Wire & Cable industry• Overview of European cable markets• Leading cable suppliers and manufacturing clusters• Conclusions & questions

European Cable Markets

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Rest of the world copper demand has been increasing faster than in Europe and Russia in the last 50 years

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5000

10000

15000

20000

25000

Russia/CISWestern EuropeWorld refined copper consumption, '000 tonnes

Source: ICSG, ICA, World Bank, Integer Research, Bloomberg

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Russia finally catching up in terms of copper demand and recovery in its industrial base in the last decade

Source: ICSG, ICA, World Bank, Integer Research, Bloomberg

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1000

2000

3000

4000

5000

6000

Western Europe

Russia/CIS

Break-up of the Soviet Union‘000 tonnes refined copper

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• Introduction• Global Wire & Cable industry• Overview of European cable markets• Cable suppliers and manufacturing clusters• Conclusions & questions

European Cable Markets

Overall economic growth has slowed across the EU-28 and Russia in last 18 months

Source: IMF, Integer, Eurostat, Industry sources

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2007 2008 2009 2010 2011 2012 2013

EU-28

Russia

GDP % Change Year-on-Year

Cable demand still lacklustre in Europe and Russia in 2013

Source: IMF, Integer, Eurostat, Industry sources

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5.000

10.000

15.000

20.000

25.000

2007 2008 2009 2010 2011 2012 2013

EU-28 RussiaCable production, € million

Cable demand versus GDP in Europe

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500

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Germany France UK Italy Spain Poland

GDP in 2013, € billion

Cable demand, € million

Source: IMF, Integer, Eurostat, Industry sources

European cable demand remains under pressure in 2014

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2.000

4.000

6.000

8.000

10.000

12.000

14.000

2007 2008 2009 2010 2011 2012 2013

PolandFranceUKSpainItalyGermany

Cable demand, € million

Source: Integer, Eurostat, Industry sources – ICF members

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• Introduction• Global Wire & Cable industry• Overview of European cable markets• Cable suppliers and manufacturing clusters• Conclusions & questions

European Cable Markets

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Germany is the leading manufacturing base in Europe

Source:

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Rest of EU-28 Germany Italy France Russia Spain Poland UK

Cable production in 2013, € million

Source: Integer, Eurostat, Industry sources – ICF members

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A snapshot of key European cable producers

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Prysmian leads production in Europe, followed by Nexans and General Cable in 2013

Source:

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5Revenues, € million

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Germany has a diverse manufacturing base, with cable plant across the country in 2014

Source:

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A snapshot of cable producers in Russia

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Four major producers in 2013, but long tale of medium sized producers in Russia

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KamskyiKabel

Uncomtech UMMC GK Sevkabel Ludnovokabel CCM Farial Others

Revenues, € million

Almost 100 cable companies across Russia

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Cablemaking in Russia is spread geographically from Baltic, the Urals to eastern Siberia

Source:

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• Introduction• Global Wire & Cable industry• Overview of Latin America cable markets• Cable suppliers and manufacturing clusters• Conclusions & questions

European Cable Markets

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Thankfully we are not discussing implications of an independent Scotland…

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Thank you for your attention

For further information and questions on the survey, please contact

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Peter DarlingtonBusiness Development Wire & Cable

peter.darlington@integer-research.com

Philip RadbourneDirector – Research

philip.radbourne@integer-research.com

Tel: +44 20 7503 1265Fax: +44 20 7503 1266Integer Research Ltd

London office, Invicta House108-114 Golden Lane

London, EC1Y 0TL, UK