cables and systems - pirelli · pirelli cables & systems turnover 1999 (excluding nkfturnover...

CABLES AND SYSTEMS

CABLES AND CABLES AND SYSTEMSSYSTEMS

Pirelli Cables & SystemsPirelli Cables & Systems

MARKET TRENDS1998-1999

MARKET TRENDS1998-1999

CABLESCABLES

ENERGYENERGY COMMUNICATIONSCOMMUNICATIONS

Stable volumeEurope and S. America:continuous price erosion

Stable volumeEurope and S. America:continuous price erosion

N. America: growing volume and price erosionEurope: volumeincrease, price shock

N. America: growing volume and price erosionEurope: volumeincrease, price shock

End of monopoliesMarkets opening

End of monopoliesMarkets opening

INDUSTRY RESTRUCTURING

INDUSTRY RESTRUCTURING

NORTHAMERICANORTH

AMERICA

SOUTHAMERICASOUTH

AMERICA

AUSTRALIAAUSTRALIA

EUROPEEUROPE


TURNOVER 1999 (EXCLUDING NKF-BICC)TURNOVER 1999 (EXCLUDING NKF-BICC)

Total Sales: 3,9Total Sales: 3,92121 Euro MlnEuro Mln

GEOGRAPHICAL BREAKDOWN

GEOGRAPHICAL BREAKDOWN

PRODUCTSPRODUCTS

ItalyItaly

RestRestof Europeof Europe

21%21%

15%15%Australia,Australia,

Asia, AfricaAsia, Africa

43%43%

11%11%

10%10%

Central andCentral andSouth AmericaSouth America

North AmericaNorth America Enamelled, building Enamelled, building wires and special wires and special cablescables

TelecomTelecomcables & systemscables & systems

Energy Energy cablescables

Installation services, Installation services, accessories and other accessories and other ProductsProducts

29%29%

31%31%

26%26%

14%14%


1999 SALES (Euro Bln)1999 SALES (Euro Bln)

GENERAL MKT

Pirelli Cables and Systems

COMMUNICATIONENERGY

UTILITIES + ACC.

SPECIAL CABLES+ ENAMELLED

SUBMARINE & HV + INSTALL.


- Strengthening competitive position through:

- Technology innovation

- Cost leadership

- Global leadership in the industry restructuring

PIRELLI ENERGY STRATEGY

POWER CABLES INNOVATION

AFUMEX COMPACTAIR BAG

ZIP


ABERDAREABERDAREABERDARE

CAVIMARCAVIMARCAVIMARBARCELONABARCELONABARCELONAGIOVINAZZOGIOVINAZZOGIOVINAZZO

MUDANYAMUDANYAMUDANYA

SLATINASLATINASLATINA

BALASSAGYARMATBUDAPESTKISTELEK

BALASSAGYARMATBALASSAGYARMATBUDAPESTBUDAPESTKISTELEKKISTELEK

BRATISLAVABRATISLAVABRATISLAVA

DELFTDELFTSCHWERINBERLINOSCHWERINSCHWERINBERLINOBERLINO

AMFREVILLEAMFREVILLEAMFREVILLEPARONPARONPARON

LAONLAONLAON

CHARVIEUCHARVIEUCHARVIEU

INVEXLIVORNO F.BICOCCAMILANOACSALFACAVI

INVEXINVEXLIVORNO F.LIVORNO F.BICOCCABICOCCAMILANOMILANOACSACSALFACAVIALFACAVI

ARCO F.BATTIPAGLIA

F.O.S.

ARCO F.ARCO F.BATTIPAGLIABATTIPAGLIA

F.O.S.F.O.S.

LIVORNOLIVORNOLIVORNO

EASTLEIGHEASTLEIGHEASTLEIGHB’STOKEB’STOKEB’STOKE

NEWPORTNEWPORTNEWPORT HARLOWHARLOWHARLOW

SOUTHAMPTONSOUTHAMPTONSOUTHAMPTON

SVFOSVFOSVFOANGYANGYANGY

GRONGRONGRONVOLOGNEVOLOGNEVOLOGNE

XOULCESXOULCESXOULCES

CHAVANOZCHAVANOZCHAVANOZ

ESMARESMARESMARCAVIGELCAVIGELCAVIGEL

DESCODESCODESCO

NEUSTADTNEUSTADTNEUSTADTWUPPERTALWUPPERTALWUPPERTAL

PIKKALAPIKKALA

MERLINOMERLINMERLINOO

PIGNATARO MAREPIGNATARO MAREPIGNATARO MARE

LEIGHLEIGHPRESCOTTPRESCOTTWREXHAMWREXHAMERITHERITH

SETTIMO T.SETTIMO T.

ASCOLI P.ASCOLI P.

PLANT MAP (EUROPE) - 2000(including BICC)

PLANT MAP (EUROPE) - 2000(including BICC)

PirelliPirelli 4444New New acquisitionacquisition 88

TOTALTOTAL 5252


LA ROSALA ROSA

SOROCABASOROCABAST. ANDRE’ST. ANDRE’

ST. JEANST. JEAN

SICABLESICABLE

VEREENGINGVEREENGINGMINTOMINTO

LIVERPOOLLIVERPOOLCLAYTONCLAYTON

COLUSACOLUSA

SOLACSOLAC

CERQUILHOCERQUILHO

QUILMESQUILMES

BAOYINGBAOYING

DEE WHYDEE WHY

WUXI TONGLINGWUXI TONGLING

MOZAMBICOMOZAMBICO

ZIMBABWEZIMBABWE

MALAYSIAMALAYSIA

PirelliPirelli 6565New acquisitionNew acquisition 1313

TOTALTOTAL 7878

SURREYSURREY

TIANJINTIANJIN

PLANT MAP (WORLD) - 2000(including BICC)

PLANT MAP (WORLD) - 2000(including BICC)

ABBEVILLEABBEVILLE

PRESCOTTPRESCOTTLEXINGTONLEXINGTON

JAKARTAJAKARTAANGOLAANGOLA


1999 SALES (Euro Bln)1999 SALES (Euro Bln)

OPTICAL FIBRE

Pirelli Cables and Systems

COMMUNICATIONENERGY

TLC CABLES

OPTICAL COMPONENTS

TERRESTRIAL OPTICAL SYSTEMS

SUBMARINE OPTICAL SYSTEMS


90%90%90%90%

10%10% 10%10%100%100%

TERRESTRIALOPT. SYSTEMSTERRESTRIALTERRESTRIALOPT. SYSTEMSOPT. SYSTEMS

SUBMARINE OPTICAL SYSTEMS

SUBMARINE SUBMARINE OPTICAL SYSTEMSOPTICAL SYSTEMS

OPTICAL COMPONENTS

OPTICAL OPTICAL COMPONENTSCOMPONENTS

STRATEGICSTRATEGIC

ALLIANCEALLIANCE

CISCO TRANSACTION OVERVIEW

TRANSACTION STRUCTURE AND RESULTING OWNERSHIP

CISCO TRANSACTION OVERVIEW

TRANSACTION STRUCTURE AND RESULTING OWNERSHIP

OPTICAL CABLES

OPTICAL OPTICAL CABLESCABLES FIBER OPTICSFIBER OPTICSFIBER OPTICS

100%100% 100%100%


LiNbOLiNbO33

TechnologyTechnology

GaAsGaAsTechnologyTechnology

Fiber GratingsFiber Gratings

DeviceDevicepackagingpackaging

Modulators…Modulators…

Pump laser…Pump laser…

FiltersFilters

Packaging of allPackaging of alldevicesdevices

PHOTONIC TECHNOLOGIES OWNED BY PIRELLI(after Cisco deal)


Thermal Diffusion Thermal Diffusion OvenOven

Wafer Cleaning MachineWafer Cleaning Machine6x6 Polarization6x6 Polarization

IndepIndep. Switch. Switch

LITHIUM NIOBATE TECHNOLOGY: LABSLITHIUM NIOBATE TECHNOLOGY: LABS


Clean room for Clean room for device fabricationdevice fabrication

MBE chamber MBE chamber for material growthfor material growth

Material Material characterization characterization lablab

GaAs TECHNOLOGY - LABSGaAs TECHNOLOGY - LABS


FIBER GRATING TECHNOLOGY - LABSFIBER GRATING TECHNOLOGY - LABS

??Grating writing setGrating writing set--upup

??Grating recoatingGrating recoating

??Chromatic Dispersion Chromatic Dispersion ??Compensator packagingCompensator packaging


TELECOM CABLES & FIBERS

NEW CABLES

FIBER TOHOME

is leading INTERNET technology capability at competitive

costs

INTERNET PROTOCOL

“Broadband” services expansion

EXISTING OPTICAL NETWORK

• Narrow bandwidth (“last mile”)

• Low transmission speed

IP (Internet)

E-Commerce

Broadband Services (voice +video+ data)

END-USERINNOVATIVE

FIBERS


FIBER OPTICS INNOVATION

SMR fibres

APPLICATIONSAPPLICATIONS

Long length terrestrial systems

Long length, high optical power terrestrial systems

Long length submarine systems

Metropolitan area (no compensation)

Premises (last mile area)

PAST PRODUCTSPAST PRODUCTS

NewLightTM +

FreeLightTM

DeepLightTM

NewLightTM -

WideLightTM +

Enhanced FreeLightTM

Enhanced DeepLightTM

PRESENT PRESENT -- FUTURE PRODUCTSFUTURE PRODUCTS

ThinLightTM +


MARKET: DRIVING FACTORSMARKET: DRIVING FACTORS?? Internet as the major source of demand for new capacityInternet as the major source of demand for new capacity??Technological continuous improvement: clients want to Technological continuous improvement: clients want to

buy tomorrow’s technology to be able to compete in buy tomorrow’s technology to be able to compete in terms of bandwidth costs and availabilityterms of bandwidth costs and availability??Time to MarketTime to Market?? Integration of terrestrial Integration of terrestrial -- submarine systemsubmarine system??Cost competitivenessCost competitiveness??System System upgradabilityupgradability

Market Value (Order intake)

Order intake for upgrading on installed systems

Market Value Market Value (Or(Order intake)

Order intake for upgrading on installed systemsOrder intake for upgrading on installed systems

SUBMARINE TELECOM SYSTEMSSUBMARINE TELECOM SYSTEMSMARKET TREND (Euro Mln)MARKET TREND (Euro Mln)

1997 200119971997 20012001

3,200 5,9003,2003,200 5,9005,900

1,9001,9001,900

7,8007,8007,800


SUBMARINE OPTICAL SYSTEMS FUTURE PROJECT

SUBMARINE OPTICAL SYSTEMS FUTURE PROJECT

BALTIC CROSSINGBALTIC CROSSING

MEDCROSSINGMEDCROSSING

SAFESAFESOUTH AFRICA SOUTH AFRICA ?? FAR EASTFAR EAST

APCN 2APCN 2AUSTRALIA AUSTRALIA

?? JAPANJAPAN

SACSACSOUTH AMERICA CROSSINGSOUTH AMERICA CROSSING

LEVEL 3LEVEL 3New York New York -- LondonLondon

AC2AC2

HIBERNIAHIBERNIA

Connectivity ProjectConnectivity ProjectEuropeEurope--IrelandIreland--U.S.A.U.S.A.

TAT15TAT15CABLE NETWORKCABLE NETWORK

FLAG ATLANTICFLAG ATLANTIC

SAT 3SAT 3SOUTH ATLANTIC TELEPHONYSOUTH ATLANTIC TELEPHONY


SYSTEMS INTEGRATION

SYSTEMS SYSTEMS INTEGRATIONINTEGRATION

MAINTENANCEMAINTENANCEMAINTENANCE

INSTALLATIONINSTALLATION

OPTICAL CABLESOPTICAL CABLESFIBER OPTICSFIBER OPTICS

(CONNECTIVITY DATA CABLES)(CONNECTIVITY DATA CABLES)

OEMOEM

OPTICAL OPTICAL COMPONENTSCOMPONENTS

TLC SUBMARINETLC SUBMARINESYSTEMSSYSTEMS

PIRELLI COMMUNICATION

ACCESSNETWORK(F.T.T.H.)

ACCESSACCESSNETWORKNETWORK(F.T.T.H.)(F.T.T.H.)

MODULES DEVICES

CARRIERSCARRIERS


E-BUSINESS PROJECT: LOCAL INTERNET SITES E-Services for Installers & specifiers:

? Online Product Catalogue

? Distributor Locator

? Technical Training / News / Updates/ Software

? Web-enabled Call Center

? On-line Engineering Service & Support

? On-line Interactive Training

? “Push and pull” promotions

? “Frequent Buyer” Program

Web Marketing Plan to support:

technical marketing customer relationship management (e.g. “Pirelli Club”, etc.)

Web Marketing Plan to support:

technical marketing customer relationship management (e.g. “Pirelli Club”, etc.)

cables and systems - pirelli · pirelli cables & systems turnover 1999 (excluding nkfturnover...

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