Nexans Sa · EURONEXT:NEX
Nexans Sa — H1 2013 Earnings Presentation
30 slides from Nexans Sa's earnings presentation, Jul 25, 2013
Slide 1: 2013 Half Year results
2013 Half Year results July 25, 2013
Slide 2: Safe Harbor
2013 Half Year results 2 Safe Harbor This presentation contains forward-looking statements In addition to the risk factors, the main uncertainties weighing on relating to the Group’s expectations for future the second half of 2013 concern in particular: financial performance, including sales and • T
Slide 3: Activity overview
Frédéric Vincent Chairman & CEO Activ ity ov erv iew XXXXXXXXXXXXXXXXX
Slide 4: Key figures (in M€)
2013 Half Year results 4 Key figures (in M€) S 2,474 Sales at constant metal prices A Q2’13 Significant improvement L 2,398 -3.4% YoY organic in Q2 +9% growth 2,351 E Particularly true for Q1’13 all emerging markets S H1'12 H2'12 H1'13 EBITDA(*) & OM Operating margin 190 113(**) 161(**) 151 89(*
Slide 5: H1 2013: a difficult but expected start
2013 Half Year results 5 H1 2013: a difficult but expected start SALES ORGANIC GROWTH (year on year) 4 +2.3% 2 +0.6% -0.3% Sales -1.3% 0 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Pick up in Q2’13 vs -2 -3.8% 2 previous quarters -4 -5.6% -6 Slowdown in Europe Slowdown in the other Sales pick up in all area
Slide 6: Sales and profitability by business
2013 Half Year results 6 Sales(*) and profitability by business (in M€) Sales(*) & YoY Operating Q2/Q1 organic organic growth Margin growth 1,221 H1’12 H1’13 H1’12(**) H1’13 1,130 +9% TD&O 1,006 993 23 34 -3.9% +13% 523 470 Industry 585 622 21 21 +12% +2.7% 294 328 +3% D&I 652 596 43 24 -7.3% 295 30
Slide 7: Sales evolution by area
2013 Half Year results 7 Sales evolution by area (Sales at constant metal prices and year on year organic growth) H1’13 Q2/Q1 organic +11.9% growth 1,221 M€ 1,130 M€ +9% Transmission Land -15.3% +4% -3.5% +8.3% APAC +1.2% +20% +6.4% -4.1% Americas -6.1% +9% -3.6% -8.9% Europe & MERA -4.8% +8% -8.3%
Slide 8: Distributors and Installers: few upsides in the market environment
2013 Half Year results 8 Distributors and Installers: few upsides in the market environment during the first 6 months Sales (* ) and organic grow th by area SALES(*): 596M€ 652M€ -7.3% H1’13 vs H1’12 633M€ +2.5% Q2’13 vs Q1’13 +4% 596M€ MERA -6% +2% Europe -17% APAC Stable at low level since H2’12 +
Slide 9: Industry: a well-oriented first half-year
2013 Half Year results 9 Industry: a well-oriented first half-year Sales grow th by sector (* * ) Sales(*) 622M€,+2.7%(**) -10% 0% +10% Resources -1% US, Korea OM Oil &Gas 22% 21M€, 3.4% of sales(*) Australia Mining of Europe Nuclear sales Germany, Brazil Sales grow th by area (* * ) Renewables +19.
Slide 10: Utilities & Operators: Europe and emerging markets under opposite trends
2013 Half Year results 10 Utilities & Operators: Europe and emerging markets under opposite trends Utilities: 540M€ Sales (* ) quarterly ev olution H1’13: 630M€ Stronger Q2 not sufficient to pull H1 up to last year level. 340M€ 334M€ 340M€ 319M€ 301M€ 290M€ Europe Acquisition Slower activity in a ma
Slide 11: Transmission: sales repositioning ongoing in land, recovery in submarine
2013 Half Year results 11 Transmission: sales repositioning ongoing in land, recovery in submarine LAND Sales organic growth: -15% vs H1’12 +17% Projects postponed from Q1 to Q2, leading to significant improvement Q2 over Q1. No upside in the market environment in Middle-East. Q1’13 Q2’13 Backlog: u
Slide 12: Financial Results
Nicolas Badré CFO Financial Results XXXXXXXXXXXXXXXXX Frédéric Vincent Chairman and CEO
Slide 13: Key Figures
2013 Half Year results 13 Key Figures (in M€) H1 2012(*) H1 2013 Sales 3,577 3,412 At current metal prices Sales 2,398 2,351 At constant metal prices EBITDA(**) 161 151 Operating margin 89 75 Operating margin rate at constant metal 3.7% 3.2% prices Operating margin rate at current metal 2.5% 2.2% pr
Slide 14: Income statement (1/3)
2013 Half Year results 14 Income statement (1/3) (in M€) H1 2012(*) H1 2013 Sales 2,398 2,351 At constant metal prices Margin on variable costs 736 30.7% 727 30.9% Indirect costs (575) (576) EBITDA(**) 161 6.7% 151 6.4% Depreciation (73) (76) Operating margin 89 3.7% 75 3.2% Core exposure impact 3 (
Slide 15: EBITDA evolution
2013 Half Year results 15 EBITDA evolution (in M€) FX & Scope 2 Transmission 161(*) 25 151 Australia Price & Mix (9) (1) Volume (24) Operating costs (3) EBITDA EBITDA H1’12 H1’13 (*) 2012 restated after adoption of IAS 19 Revised
Slide 16: Income statement (2/3)
2013 Half Year results 16 Income statement (2/3) (in M€) H1 2012(*) H1 2013 Sales 2,398 2,351 At constant metal prices Margin on variable costs 736 30.7% 727 30.9% Indirect costs (575) (576) EBITDA(**) 161 6.7% 151 6.4% Depreciation (73) (76) Operating margin 89 3.7% 75 3.2% Core exposure impact 3 (
Slide 17: Income statement (3/3)
2013 Half Year results 17 Income statement (3/3) (in M€) H1 2012(*) H1 2013 Operating income 76 (78) Financial charge (58) (46) Income before tax 18 (124) Income tax (5) (21) Net income from operations 13 (145) Net income Group share 13 (145) (*) 2012 restated after adoption of IAS 19 Revised
Slide 18: Balance sheet
2013 Half Year results 18 Balance sheet (in M€) Dec 31, 2012 Jun 30, 2013 Long-term fixed assets 2,069 1,912 of w hich goodw ill 509 442 Deferred tax assets 141 137 Non-current assets 2,210 2,049 Working Capital 1,124 1,181 Other - 24 Total to finance 3,335 3,254 Net financial debt 606 820 Reserves
Slide 19: Net debt evolution
2013 Half Year results 19 Net debt evolution To be updated - LD Working capital (in M€) variation 820 2 Others 166 Restructuring costs 15 606 CAPEX 20 Dividends OCF(*) 66 81 Net debt Net debt Same level as 2012 at the same Dec’12 Jun’13 period, excluding acquisition Yanggu acquisition 820 678 130M€
Slide 20: Working Capital evolution
2013 Half Year results 20 Working Capital evolution % of working capital based on last quarter sales at current metal prices multiplied by 4 20.2% 19.8% 19.1% Increase of total WC 18.9% Total Group due to a significant payment to receive in Group excl. August, but important Transmission decrease of
Slide 21: 2013-2015: Accelerating the transformation
Frédéric Vincent Chairman & CEO 2013-2015: Accelerating the transformation
Slide 22: Reminder of strategic plan 2013-2015
2013 Half Year results 22 Reminder of strategic plan 2013-2015 2012 - Actual 2015 - Target Sales (constant metal prices) 4,872M€ 5,600M€ Operating Margin 200M€ 350/400M€ OM/Sales 4.2% 7.1% Return on Capital Employed 6.6% 11.6% (in M€) Attractive markets by market Mature markets 60 350/ 400 100 High
Slide 23: H1 2013: initiate the transformation plan
2013 Half Year results 23 H1 2013: initiate the transformation plan Team strengthened Appointment of Arnaud Poupart-Lafarge, COO Bringing a new trend Structuring the transformation Shaping the future Propose a new Simplify the decision- Implement a Project organization reflecting the making process
Slide 24: H1 2013: structure the transformation
2013 Half Year results 24 H1 2013: structure the transformation Example of initiatives included in the 18 followed streams 30% 20% 25% 10% 25% -10% Organic Fixed cost Variable cost Growth reduction Turnaround Innovation savings Perimeter COMEX Sponsors Program Leaders Recovery plan in Land High Indu
Slide 25: H1 2013: all initiatives launched, some delivering first results
2013 Half Year results 25 H1 2013: all initiatives launched, some delivering first results High voltage - Submarine Mature markets H1’13 sales level Cost saving study ongoing with a target of 40M€ by 2015 FY’13: catch up of 2/3 (to be finalized and communicated of 2012 missing sales at latest togeth
Slide 26: Development of a new business model in APAC on the back of Yanggu integration
2013 Half Year results 26 Development of a new business model in APAC on the back of Yanggu integration Significant changes in environment Consequences on Nexans Olex: CHINA New low cost platform available New strategic Acquisition of Yanggu late 2012 positioning necessary Redefinition of the busine
Slide 27: FY 2013 guidance
2013 Half Year results 27 FY 2013 guidance EBITDA(*) 330-350M€ Operating Margin H2’13~H2’12 Additional loss in Net Income in H2’13 (if saving plan study results in restructuring reserves) Net Debt at Dec.13 ~600M€(**) (*) Operating margin before depreciation (**) Excluding eventual EEU fine, at stab
Slide 28: Appendices
Appendices
Slide 29: Sales and profitability by segment
2013 Half Year results 31 Sales and profitability by segment H1 2012(*) H1 2013 (in M€) Sales OM OM % Sales OM OM % Transmission, Distribution & 1,006 23 2.3% 993 34 3.4% Operators Industry 585 21 3.5% 622 21 3.4% Distributors and Installers 652 43 6.6% 596 24 4.1% Other 156 2 1.3% 140 -4 -3.3% Tota
Slide 30: Impact of foreign exchange and consolidation scope
2013 Half Year results 32 Impact of foreign exchange and consolidation scope Organic H1 2012 FX growth Scope H1 2013 (in M€) Transmission, 1,006 -11 -39 37 993 Distributors & Operators Industry 585 - 15 22 622 Distributors & Installers 652 -7 -47 -2 596 Other 156 -3 -11 -2 140 Total Group 2,398 -21