Nexans SA · EURONEXT:NEX
Nexans SA — H1 2018 Earnings Presentation
26 slides from Nexans SA's earnings presentation, Jul 26, 2018
Slide 1: 2018 Half Year Results
2018 Half Year Results July 26, 2018
Slide 2: Safe Harbor
Safe Harbor This presentation contains forward-looking statements which are subject to various expected or unexpected risks and uncertainties that could have a material impact on the Company's future performance. The uncertainty in the economic and political environment in Europe including the pos
Slide 3: Key Take-aways
Key Take-aways Organic growth ● Sales of 3,282 M€ ; -1.6% organic growth in cables ● Cables and wires activity at +2.7% (+3.7% excluding Oil & Gas); High Voltage & Projects activity at -19.6% vs. Reduced volumes ● Improved momentum in Q2’18 (+14.0% compared to Q1’18; +1.1% organic) in Projects ● EBI
Slide 4: Agenda
Agenda 1 Business review 2 Key Financials 3 Outlook 4 Appendix
Slide 5: Business Review
1 Business Review Christopher GUÉRIN, CEO
Slide 6: Half Year 2018 key figures
BUSINESS REVIEW 1 Half Year 2018 key figures -1.6% organic growth EBITDA Sales at constant metal prices in M€ EBITDA in M€ 2,336 M€ 211 M€ 200 M€ -1.6% 153 M€ 2,201 M€ June’ 17 FX Organic growth Scope June’ 18 H1’ 17 H2’ 17 H1’ 18 ROCE and Working Capital Net debt evolution ROCE* OWC/Sales** Net Deb
Slide 7: Sales by geographies
BUSINESS REVIEW 1 Sales by geographies A contrasted business environment % of Standard Sales H1 2018 Organic Growth of which O&G Impact SAM 5% SAM -3.1% -0.9% MERA 6% MERA 3.2% APAC 11% APAC -0.4% -5.1% NAM 13% NAM 8.8% -0.5% Europe 37% Europe 3.3% High Voltage 17% High Voltage -19.6% -3.0% Harnesse
Slide 8: Building & Territories
BUSINESS REVIEW 1 Building & Territories Sales volumes accelerate progressively Sales at constant metal: 846 M€ Business Update Organic growth -5.3% +6.2% +2.9% Organic growth % of Sales at constant metal Q2 / Q4 456 438 450 +6.0% +6.6% 0.0% +4.2% +1.8% Sales Q1 / Q3 427 436 396 Europe NAM APAC MERA
Slide 9: High Voltage & Projects
BUSINESS REVIEW 1 High Voltage & Projects Lower subsea as planned, Challenging situation in Terrestrial Sales at constant metal: 348 M€ Business Update Organic growth +31.0% +31.4% -19.6% SUBSEA: -18.6% organic growth ● Lower level activity of installations versus H1’17 ● Flawless execution of ongoi
Slide 10: Telecom & Data
BUSINESS REVIEW 1 Telecom & Data Soft start Sales at constant metal: 249 M€ Business Update Organic growth +2.7% +11.5% -4.2% +4.2% -9.6% -8.8% -8.8% +11.3% -22.0% Organic growth Q2 / Q4 139 LAN Infrastructure STSC 124 127 Sales Q1 / Q3 131 119 121 Europe NAM NAM APAC APAC MERA SAM STSC STSC H1’ 17
Slide 11: Industry & Solutions
BUSINESS REVIEW 1 Industry & Solutions Overall steady, but uneven performance per business Sales at constant metal: 589 M€ Business Update Organic growth Organic growth -0.7% -2.5% +1.1% % of Sales at constant metal TRANSPORT RESOURCES OTHERS +29% +11% Q2 / Q4 292 271 298 +4% +4% +18% Sales -21% -4%
Slide 12: Key financials
2 Key financials Nicolas BADRÉ, CFO
Slide 13: Income Statement (1/2)
KEY FINANCIALS 2 Income Statement (1/2) Key figures Gross Margin evolution 32.3% In M€ June 2017 June 2018 (31) 30.9% (8) (1) FX Scope Labor (33) T&D Other Sales at actual metal prices 3,206 3,282 Inflation B&T (12) I&S 5 5 HV June’ June’ Sales at constant metal prices 2,336 2,201 2017 2018 Margin o
Slide 14: Income Statement (2/2)
KEY FINANCIALS 2 Income Statement (2/2) Key figures From Operating Margin to Operating Income In M€ June’17 June’18 In M€ June 2017 June 2018 Core exposure Impact 40 9 Operating margin 140 82 Restructuring (20) (20) Net asset Impairment (1) (18) Restructuring (20) (20) Antitrust investigation 0 (3)
Slide 15: Focus on cash management
KEY FINANCIALS 2 Focus on cash management Net Debt last 12 month evolution in M€ Net Debt last 6 month evolution in M€ 9 534 70 4 534 58 4 1 77 FX 111 2 FX 423 (168) & Other & Other Operating Non Equity Non Equity Working Operating Operations* 332 (48) 28 Operating Operations* Restructuring Capital
Slide 16: Balance Sheet
KEY FINANCIALS 2 Balance Sheet Balance Sheet Interest Charge over EBITDA Dec’ June Interest/ 17% 16% In M€ 14% 14% EBITDA 2017 2018 Fixed assets and other non-current assets 1,633 1,637 Interest charge Of which goodwill 236 244 Dec’ 16 June’ 17 Dec’ 17 June’ 18 Deferred tax assets 135 145 Non-curren
Slide 17: Strong liquidity covering future debt refinancing needs
KEY FINANCIALS 2 Strong liquidity covering future debt refinancing needs Net Debt breakdown Debt redemption In M€ June 2018 Refinancing of upcoming convertible bond planned for H2’18 In M€ Long-term ordinary Bonds 448 1,017 Other long-term borrowings 7 Short-term convertible Bonds 266 200 Undrawn fa
Slide 18: Outlook
3 Outlook Christopher GUÉRIN, CEO
Slide 19: Priorities ahead
OUTLOOK 3 Priorities ahead Full confidence in the megatrends Reinforcing financial discipline exercise on which was based the Keeping a strong balance sheet strategic plan “Paced For Growth” in order to maintain financial flexibility 1 2 3 Detailed Plan to be presented in October 19 I 2018 Half
Slide 20: Nexans brings Energy to Life
OUTLOOK 3 Nexans brings Energy to Life Recent success stories Some illustrations of ongoing projects Nexans contribution to the Snøhvit gas field AGICITY®, in the Barents Sea, largest ever The Troll oil and gas field development electric mobility made simple industrial project in North Norway Phase
Slide 21: Appendices
Appendices J\lexans BRINGS ENERGY TO LIFE
Slide 22: Nexans, a global cable solution provider
APPENDICES Nexans, a global cable solution provider End markets Sales by new business segments Strategy • Building • Smart Cities / Smart Grids Building • E-mobility 12% Accelerate 16% & Territories • Local infrastructure growth through portfolio • Decentralized energy systems of activities • Rural
Slide 23: Sales and profitability by segment
APPENDICES Sales and profitability by segment June 2017 June 2018 EBITDA EBITDA In M€ Sales EBITDA Sales EBITDA % % Building & Territories 883 59 6.7% 846 52 6.2% High Voltage & Projects 446 62 14.0% 348 36 10.4% Telecom & Data 270 37 13.6% 249 22 8.8% Industry & Solutions 587 50 8.5% 589 45 7.7% Ot
Slide 24: Impact of foreign exchange and consolidation scope
APPENDICES Impact of foreign exchange and consolidation scope June Organic June Sales at constant metal prices, in M€ FX Scope 2017 growth 2018 Building & Territories 883 (50) 23 (10) 846 High Voltage & Projects 446 (15) (85) 2 348 Telecom & Data 270 (16) (11) 5 249 Industry & Solutions 587 (13) 6 9
Slide 25: Sales by quarter by segment
APPENDICES Sales by quarter by segment Sequential Growth Sales at constant metal in M€ Building & Territories High Voltage & Projects 456 436 438 450 +52.9% 427 396 +13.5% 239 224 207 214 211 +7.9% 137 -1.2% -0.9% +17.0% +10.5% -4.2% +4.7% -6.7% -11.2% -39.0% Q1’17 Q2’17 Q3’17 Q4’17 Q1’18 Q2’18 Q1’1
Slide 26: Financial highlights
APPENDICES Financial highlights Sales at current metal prices (in M€) Sales at standard metal prices (in M€) EBITDA Net income/(Loss) attributable (in M€ and as % of sales at constant metal prices) to the owners of the parent (in M€) 6,403 6,239 6,370 4,587 4,604 4,431 4,571 9.0% 125 5,814 8.5% 411