Nexans Sa · EURONEXT:NEX
Nexans Sa — Debt Investor Presentation (March 2023)
40 slides from Nexans Sa's debt investor presentation, Mar 13, 2023
Slide 1: Electrify the Future
J\lexa ns ELECTRIFY THE FUTURE ’ JEAN-CHRISTOPHE JUILLARD, DEPUTY CEO & CFO | BENOIT CUIGNET, VP TREASURY & METAL i || BODk ROEBE: ‘MOUILLOT, VP.INVE iil i Lie | “MARCH 14 & 15, 202
Slide 2: Safe Harbour
Ol 02 03 O04 JNexans SAFE HARBOUR This presentation contains forwardlooking statements which are subject to various expected or unexpected risks and uncertainties that could have a material impact on the Company's future performance. Readers are also invited to visit the Group's website where they c
Slide 3: Agenda
Ol NEXANS OVERVIEW 02 2022 HIGHLIGHTS 03 ‘CREDIT PROFILE O04 ESG STRATEGY JNexans AGENDA #01 NEXANS OVERVIEW JEAN — CHRISTOPHE JUILLARD DEPUTY CEO & GROUP CFO #02 2022 HIGHLIGHTS #03 CREDIT PROFILE 9 BENOIT CUIGNET »_™ VP TREASURY & METAL #OA EsG STRATEGY ELODIE ROBBE-MOUILLOT VP INVESTOR RELATIONS
Slide 4: Nexans Overview
01 02 03 04 J\Jexans NEXANS OVERVIEW 2022 HIGHLIGHTS ‘CREDIT PROFILE ESG STRATEGY 2023 FIKED INCOME INVESTOR PRESENTATION
Slide 5: Nexans at a Glance
Ol NEXANS OVERVIEW 02 2022 HIGHLIGHTS 03 ‘CREDIT PROFILE O04 ESG STRATEGY JNexans NEXANS AT A GLANCE A GLOBAL PLAYER OF THE ENERGY TRANSITION €6.7Bn 28,000 42 STANDARD SALES PEOPLE COUNTRIES OUR dU) v@)sj=) WE ELECTRIFY THE FUTURE sy DEDICATED . PIONNEERS . UNITED OUR = onl 1X@)Ni\s\m) SCALE-UP TO S
Slide 6: Providing Advanced Cable Technologies and Services Across 5 Business Segments
NON-ELECTRIFICATION ELECTRIFICATION Ol NEXANS OVERVIEW 02 2022 HIGHLIGHTS 03 ‘CREDIT PROFILE O04 ESG STRATEGY JNexans PROVIDING ADVANCED CABLE TECHNOLOGIES AND SERVICES ACROSS 5 BUSINESS SEGMENTS AND GEOGRAPHIES 2022 SALES & EBITDA BY BUSINESS SEGMENTS 2022 SALES BY GEOGRAPHY") % based on sales at s
Slide 7: Company history timeline
2018 2001 1879 1870 1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050
Slide 8: Cable Markets Forecast
Ol NEXANS OVERVIEW 02 2022 HIGHLIGHTS 03 ‘CREDIT PROFILE O04 ESG STRATEGY JNexans CABLE MARKETS FORECAST THE URGENCY OF 6 e@ ® GENERATION TRANSMISSION DISTRIBUTION USAGES E LECTRI F ICATION NET-ZERO TRANSITION GRID RENEWAL & STRENGTHENING SMART & SAFE BUILDINGS a ~ Shift from fossil fuel to renewabl
Slide 9: Becoming an Electrification Pure Player
01 02 03 04 JNexa n s NEXANS OVERVIEW 2022 HIGHLIGHTS CREDIT PROFILE ESG STRATEGY BECOMING AN ELECTRIFICATION PURE PLAYER COVERING THE VALUE CHAIN CENTRALISED TRANSMISSION DISTRIBUTION USAGES GENERATION SUBSEA AND LAND = Onshore and offshore wind = Subsea and land = Centralized grid — Residential =
Slide 10: Generation & Transmission Strategic Capex
Ol NEXANS OVERVIEW 02 2022 HIGHLIGHTS 03 ‘CREDIT PROFILE O04 ESG STRATEGY exans GENERATION & TRANSMISSION STRATEGIC CAPEX TURNKEY CAPABILITIES TO SUPPORT THE ENERGY TRANSITION 2018 - 2021 CONVERTED THE 15’ SUBSEA HV =< MANUFACTURING FACILITY IN THE US BUILT A STATE-OF-THE ART CABLE LAYING VESSEL WIT
Slide 11: Our 2024 Commitments
Ol NEXANS OVERVIEW 02 2022 HIGHLIGHTS 03 ‘CREDIT PROFILE O04 ESG STRATEGY JNexans OUR 2024 COMMITMENTS AMPLIFY AND SCALE-UP WITH DISCIPLINE ROTATE TO ELECTRIFICATION SCALE-UP IN VALUE SALES AT STANDARD METAL PRICES: EXISTING ELECIRIFICATION OVERALL GROUP (Organic, including (Including M&A, Divestmen
Slide 12: 2022-2024 Cash Allocation
JNexans Ol 02 03 O04 2022-2024 CASH ALLOCATION .»- WITH BALANCED ALLOCATION BETWEEN SHAREHOLDER RETURN AND INVESTMENT... €500 - 600m SOLID CASH GENERATION... €500 - 600m 2019-2021 2022-2024 FCF GENERATION 012 {N}OWC% os Closing / (Previous Quarter Actua Soles x 4) {2)CAPEX%asRecuringCAPEX/_12rnts St
Slide 13: 2022 Highlights
IN 01 02 03 04 CX8NS OO _ cans vere | 222 ices | EO PRO ue 56 STRATEGY HIGHLIGHTS snscusengu
Slide 14: 2022 Highlights: Record Year Continued
Ol NEXANS OVERVIEW 02 2022 HIGHLIGHTS 03 ‘CREDIT PROFILE O04 ESG STRATEGY JNexans 2022 HIGHLIGHTS RECORD YEAR CONTINUED #0)| WITH STRONG #()) DEPLOYMENT OF #03 OY cUSTARUABITTY PROFITABLE GROWTH STRATEGIC ROADMAP All-time high EBITDA, Normalized FCF Announced one new acquisition in Accelerated decar
Slide 15: All-Time High Financial Performance
Ne mone Ol 02 03 O4 ALL-TIME HIGH FINANCIAL PERFORMANCE EBITDA TARGET FULLY MET, CASH GENERATION EXCEEDING GUIDANCE EBITDA (€M) & : NORMALIZED FREE CASH FLOW®) (€M EBITDA ce (%) | &NCCRE(%) en EBITDA OUTSTANDING Between €580m & €600m eceeee . NORMALIZED FREE CASH (*) («) oO FLOW OUTSTANDING Between
Slide 16: Successfully Balancing Cost Inflation
Ol 02 03 O04 JNexans SUCCESFULLY BALANCING COST INFLATION THANKS TO COST PASS THROUGH AND HEDGING NEXANS OVERVIEW 2022 HIGHLIGHTS ‘CREDIT PROFILE ESG STRATEGY SUPPLY CHAIN AND RAW INFLATION & SHORTAGE MITIGATION MATERIAL IMPACTS EMBEDDED IN OUR OPERATIONS VARIABLE DIRECT COSTS" COST PASS THROUGH FUL
Slide 17: Electrification SHIFT Programs Implementation
03 O04 ‘CREDIT PROFILE ESG STRATEGY Ol NEXANS OVERVIEW 02 2022 HIGHLIGHTS S\exa ns ELECTRIFICATION. SHIFT PROGRAMS IMPLEMENTATION @e@@ HIGH POTENTIAL FOR FURTHER STRUCTURAL VALUE CREATION ELECTRIFICATION BUSINESS PORTFOLIO CLUSTERING 2.0 SHIFT PROGRAMS STRUCTURAL RESULTS C) % of Electrification busi
Slide 18: Continued Profitable Growth in Electrification Businesses
Ol NEXANS OVERVIEW 02 2022 HIGHLIGHTS 03 ‘CREDIT PROFILE O04 ESG STRATEGY JNexans CONTINUED PROFITABLE GROWTH IN ELECTRIFICATION BUSINESSES +4.9% ORGANIC SALES GROWTH IN Q4 2022 OF WHICH GRE 7 GROUP ELECTRIFICATION BUSINESSES®! | NON-ELECTRIFICATION BUSINESSES’ | OTHER ACTIVITIES (MAINLY METALLURGY)
Slide 19: Group financial results
Organic growth +8.3% +6.3% EBITDA margin (%) (1) 7.6% 8.9% Operating margin (% ) (1) 4.9% 6.2%
Slide 20: Strong Operational Performance: Net Debt Evolution
Ol 02 03 O4 Nexa ns 'NEXANS OVERVIEW 2022 HIGHUGHTS CREDIT PROFILE ESG STRATEGY STRONG OPERATIONAL PERFORMANCE BEFORE CENTELSA ACQUISITION AND EQUITY OPERATIONS NET DEBT LAST 12 MONTHS EVOLUTION (€M) 152 451 L| G2) | 0.2!) 0.4x") FCF GENERATION 73 — excl. M&A || €271m (298) (C3) (86) NORMALIZED FCF
Slide 21: 2023 Guidance
Ol NEXANS OVERVIEW 02 2022 HIGHLIGHTS 03 ‘CREDIT PROFILE O04 ESG STRATEGY JNexans 2023 GUIDANCE OVERALL GROUP (EXCLUDING NON-CLOSED ACQUISITIONS AND DIVESTMENTS) EBITDA NORMALIZED FREE CASH FLOW") BETWEEN €570M AND €630M BETWEEN €150M AND €250M PROPOSED DIVIDEND AT MAY 11™ AGM €2.10 PER SHARE (1) No
Slide 22: Credit Profile
IN 01 02 03 04 CX8NS OO _ cans vere | 222 ices | EO PRO ue 56 STRATEGY
Slide 23: Net Debt Strong Improvement
Ol NEXANS OVERVIEW 02 2022 HIGHLIGHTS 03 O04 ‘CREDIT PROFILE ESG STRATEGY JNexans NET DEBT STRONG IMPROVEMENT A HISTORICALLY LOW LEVERAGE RATIO OVER THE PAST TWO YEARS NET DEBT (€M) : LEVERAGE RATIO?) | GEARING RATIO®) 7 Covenant @3.2 x EBITDA : Covenant @120% 471 330 179 182 74 | coll lan 20181) 20
Slide 24: S&P Rating Outlook Upgrade
BB+ “ outlook BB+ positive outlook Nexans’ operating performance has improved, thanks to progress stable made in its transformation plan, which focuses on electrification ” and achieving higher and more stable cash flows. BB outlook S&P Global Ratings – 15/02/23 positive BB “ outlook negative S&P’s
Slide 25: High Liquidity Level Further Reinforced
01 02 03 04 JNexa ns NEXANS OVERVIEW 2022 HIGHLIGHTS CREDIT PROFILE ESG STRATEGY HIGH LIQUIDITY LEVEL FURTHER REINFORCED BY A NEW RCF!) AND A BACK-UP FACILITY LINE LIQUIDITY AND DEBT REDEMPTION SCHEDULE (€M) In million euros DEC 21 DEC 22 TOTAL AVAILABLE GROSS DEBT UQUIDITY Gross debt 1,046 1,316 1,
Slide 26: Diversified Financing Structure
Ol 02 03 O04 SNexa n s NEXANS OVERVIEW 2022 HIGHLIGHTS ‘CREDIT PROFILE ESG STRATEGY DIVERSIFIED FINANCING STRUCTURE 61% OF GROSS DEBT AT FIXED RATE FINANCING SOURCES (€M) DEBT REPAYMENT SCHEDULE (€M) DEC 2018 ant A TKerora loart2 €200m €200m wrora loan! 2023 2024 coo 2027 DEC 2022 026 (1) European I
Slide 27: ESG Strategy
01 02 03 J\lexa n Ss NEXANS OVERVIEW 2022 HIGHUGHTS CREDIT PROFILE —_ -2023 FIXED INCOME INVESTOR PRESENTATION
Slide 28: Embed Sustainability Through Our Business
Ne mane 01 02 03 04 E? LICENCE TO OPERATE EMBED SUSTAINABILITY AS THE THREAD THAT RUNS THROUGH OUR BUSINESS LOW CARBON OFFER 2023 FIXED INCOME INVESTOR PRESENTATION
Slide 29: Accelerated Decarbonation Journey
Ol NEXANS OVERVIEW 02 2022 HIGHLIGHTS 03 O04 ‘CREDIT PROFILE ESG STRATEGY JNexans ACCELERATED DECARBONATION JOURNEY GHG EMISSIONS REDUCTION AHEAD OF SBTi TARGETS GHG EMISSIONS REDUCTION LEVERS CARBON FOOTPRINT REDUCTION SCOPES 1 & 2: REDUCING GHG EMISSION BY -4.2% PER YEARIN 2030 AVERAGEN) Group|sco
Slide 30: Combining Financial Performance & Environmental Impact
Ol NEXANS OVERVIEW 02 2022 HIGHLIGHTS 03 ‘CREDIT PROFILE O04 ESG STRATEGY S\exa ns ELECTRIFICATION. COMBINING FINANCIAL PERFORMANCE & ENVIRONMENTALIMPACT @@@@ A DISRUPTIVE APPROACH TO PERFORMANCE SCORING OF UNIT ENVIRONMENTAL (GHG) PERFORMANCE COMBINE ENVIRONMENTAL IMPACT WITH FINANCIAL PERFORMANCE
Slide 31: Sustainability Progresses Recognized by Extra-Financial Agencies
Ol NEXANS OVERVIEW 02 2022 HIGHLIGHTS 03 ‘CREDIT PROFILE O04 ESG STRATEGY JNexans SUSTAINABILITY PROGRESSES RECOGNIZED BY EXTRA-FINANCIAL AGENCIES OUR COMMITMENTS EXTRA-FINANCIAL RATINGS 5 2022 = = ‘wCDP ‘ DEVELOPMENT 2021 GOALS ram ecovadis ° FRENCH BUSINESS CLIMATE PLEDGE 2021 2022 d sustainatytic
Slide 32: Appendices
01 02 03 04 J\Jexans NEXANS OVERVIEW 2022 HIGHLIGHTS ‘CREDIT PROFILE ESG STRATEGY APPENDICES -2023 FIXED INCOME INVESTOR PRESENTATION
Slide 33: Financials: Sales and Profitability by Segment
Ol NEXANS OVERVIEW 02 2022 HIGHLIGHTS 03 ‘CREDIT PROFILE O04 ESG STRATEGY J\exans FINANCIALS SALES AT STANDARD METAL PRICE AND PROFITABILITY BY SEGMENT 2021 AT CONSTANT SCOPE 2022 In million euros Sales" com EBIDA —_EBITDA% Soles" ah EBIDA —_EBNTDA% ensign fransmission 796 49.3% 143 17.9% 897 -+12.1
Slide 34: EBITDA to Normalized Free Cash Flow
S\lexa n Ss oy OVERVIEW C= pS PROFILE == FINANCIALS EBITDA TO NORMALIZED FREE CASH FLOW In million euros DEC 2021 DEC 2022 GUIDANCE 2023 EBITDA 463 599 €570M-€630M Net change in working capital inn 152 Capex (206 (298) Restructuring cashout (99) (59) Income tax paid (47) (114) Other (43 9 FREE CASH
Slide 35: Capital Structure at Dec-22
Ol 02 03 O04 JNexans NEXANS OVERVIEW 2022 HIGHLIGHTS CREDIT PROFILE ESG STRATEGY CAPITAL STRUCTURE AT DEC-22 In million euros Amount xFY2022A EBITDA Coupon Maturity Rating Cash (1,134) Local Borrowings & other"! 319 3.75% Sr. Unsecured Notes due 2023 325 3.75% Aug2023 BB 2.75% Sr. Unsecured Notes du
Slide 36: Copper Demand
Ol NEXANS OVERVIEW 02 2022 HIGHLIGHTS 03 ‘CREDIT PROFILE O04 ESG STRATEGY JNexans COPPER DEMAND LEVERAGE NEXANS’ UNIQUE OPERATIONAL MODEL TO COPE WITH SCARCITY COPPER DEMAND TO OUTSTRIP SUPPLY BY 2024 In million metric tons a hon 35 wat EUROPE, A aN A AMERICA AND SOUTH AMERICA 27 c. = 23 99 5Y AGREE
Slide 37: SHIFT Prime: From Innovation to Value Creation
Ol NEXANS OVERVIEW 02 2022 HIGHLIGHTS 03 ‘CREDIT PROFILE O04 ESG STRATEGY JNexans ELECTRIFICATION. shi; FROM INNOVATION TO VALUE CREATION ee@eo aa SHIFT PRIME OUTPERFORMING INITIAL TARGETS SHIFT PRIME PROGRAM DEPLOYEMENT SHIFT PRIME 2022 RESULTS Electrification units PERFORMANCE is EXPECTED INCREMEN
Slide 38: Deploying Electrification Pure Player Roadmap: Two New Transactions
JNexans 01 02 03 04 NEXANS OVERVIEW 2022 HIGHLIGHTS ‘CREDIT PROFILE ESG STRATEGY DEPLOYING NEXANS’ ELECTRIFICATION PURE PLAYER ROADMAP TWO NEW TRANSACTIONS ANNOUNCED AGREEMENT TO ACQUIRE REKA CABLES IN THE NORDICS Pee, “N + One of the leaders in Nordics countries + Enlarge and strengthen Nexans’ exi
Slide 39: Three Pillars for a Sustainable Future
Ol 02 03 O04 JNexans SUSTAINABILITY NEXANS OVERVIEW 2022 HIGHLIGHTS ‘CREDIT PROFILE ESG STRATEGY THE NEXANS THREE PILLARS FOR A SUSTAINABLE FUTURE PEOPLE Looking after our people and building a diverse and inclusive workplace forall Sey Wensnin | Wonaninop | Employes site Se | pootans” | pounone” |
Slide 40: Generation & Transmission: Project Pipeline
Ol NEXANS OVERVIEW 02 2022 HIGHLIGHTS 03 ‘CREDIT PROFILE O04 ESG STRATEGY JNexans GENERATION & TRANSMISSION €20*Bn PROJECT PIPELINE OFFSHORE WIND AND INTERCONNECTION PROJECTS SELECTION OF FUTURE SUBSEA OFFSHORE WIND PROJECTS SELECTION OF FUTURE SUBSEA INTERCONNECTION PROJECTS Installation date Proje