Slide 1: FY2023 Robust Performance
FY2023 ROBUST PERFORMANCE Christopher Guérin, CEO Jean-Christophe Juillard, Deputy CEO & CFO February 15, 2024 – Paris
Slide 2: Safe Harbour
2023 FULL-YEAR EARNINGS Safe Harbour 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. Readers are also invited to visit the Group’s website where th
Slide 3: Nexans to acquire iconic La Triveneta Cavi in Italy
2023 FULL-YEAR EARNINGS Nexans to acquire iconic La Triveneta Cavi in Italy Founded in 1965, primarily manufacturing low-voltage cables, mainly for the European market. MONTECCHIO MAGGIORE ‒ In-house copper drawing facility A profitable player with best-in-class innovation and PEOPLE 2023 CURRENT SA
Slide 4: Section 01
2023 FULL-YEAR EARNINGS SECTION 01 Nexans 2024 © All right Reserved Page 4
Slide 5: Delivering on our targets upgraded in July
2023 FULL-YEAR EARNINGS Delivering on our targets upgraded in July OBJECTIVES 2023 GUIDANCE 2023 PERFORMANCE Adj. EBITDA OUTSTANDING ADJUSTED EBITDA Incl. share-based compensation expenses incl. share-based compensation expenses (€570m to €630m previously) NORMALIZED OUTSTANDING FREE CASH FLOW (€150
Slide 6: Main highlights
2023 FULL-YEAR EARNINGS Main highlights FINANCIAL STRONG FINANCIAL RESULTS SUPERIOR CASH GENERATION ROBUST CAPITAL ELEVATED AHEAD OF TARGETS REFLECTING STRICT MANAGEMENT EFFICIENCY SHAREHOLDER RETURN OWC MANAGEMENT Group Adj. EBITDA margin Normalized cash conversion Group ROCE Proposed dividend per
Slide 7: Structurally improved our business
2023 FULL-YEAR EARNINGS Structurally improved our business REPORTED EBITDA(1) (€M) AND NORMALIZED FREE CASH ROCE(5) (%) EBITDA MARGIN(2) (%) FLOW(3) (€M) & NCCR(4) ELECTRIFICATION 665 14% 22% 29% 26% 599 GROUP 463 454 20.5% 20.7% 10% 376 393 16.4% 347 9% 108% 227 68% 10.2% 66% 8% 6% 49% 2020 2021 20
Slide 8: Accelerated decarbonization journey
2023 FULL-YEAR EARNINGS Accelerated decarbonization journey GHG EMISSION REDUCTION LEVERS OUTPERFORMING TARGETS Target Actual SCOPE 1 & 2: ‒ Optimize production processes and machinery to -4% reduce energy consumption -8% -13% -17% ‒ Decarbonize upstream and downstream transportation Carbon emission
Slide 9: Electrification strategic initiatives powering resilience
2023 FULL-YEAR EARNINGS Electrification strategic initiatives powering resilience INCREMENTAL CONTRIBUTION STRATEGIC – €M Targets Actuals TO ELECTRIFICATION EBITDA INITIATIVES IN 2023 100 €80M 100 ACTUAL 80 80 €47M 60 60 ACTUAL €50M 40 40 TARGET €40M TARGET 20 20 STRATEGIC CAPEX 0 0 Halden plant exp
Slide 10: Shift transformation upgraded targets
2023 FULL-YEAR EARNINGS Shift transformation upgraded targets ELECTRIFICATION PORTFOLIO CLUSTERING 3.0 UNLEASH PROFITABILTIY % of Electrification businesses 2023 standard sales ‒ 5 units deployed driving EBITDA margin x3 in 2023 INNOVATION 20% DRIVERS ‒ Strict OWC management and cash focus 2% EBITDA
Slide 11: Enhancing Electrification profile with recent acquisitions
2023 FULL-YEAR EARNINGS Enhancing Electrification profile with recent acquisitions EXIT TELECOM & DATA AMPLIFY USAGE & DISTRIBUTION Nexans’ M&A Blueprint Integration – €M Base Case Revised Case 15 15 12 11 10 10 10 7 5 +20% 5 +50% run-rate synergies run-rate synergies significantly 6-12 months DISPO
Slide 12: High expected return on investments
2023 FULL-YEAR EARNINGS High expected return on investments HALDEN PLANT EXPANSION, THIRD CABLE-LAYING MoU FOR A MEDIUM VOLTAGE €40M FIRE SAFETY AND NORWAY VESSEL GREENFIELD IN MOROCCO INDUSTRY 4.0 INVESTMENT IN AUTUN PLANT, FRANCE Completed on-time Benefits in 2026 and beyond Driving growth in 2026
Slide 13: Attractive shareholder returns: +270% over 5 years
2023 FULL-YEAR EARNINGS Attractive shareholder returns: +270% over 5 years DIVIDEND/SHARE (€) +92% TOTAL SHAREHOLDER RETURN AT DECEMBER 31, 2023(3) 2.3 2.1 Dividend payout in 2023(2) 3-year TSR 1.2 2021-2024 target: 0.7 0.3 5-year TSR – 2018 2019 2020 2021 2022 2023 PROPOSED DIVIDEND(1) (1) Subject
Slide 14: Section 02
2023 FULL-YEAR EARNINGS SECTION 02 Nexans 2024 © All right Reserved Page 14
Slide 15: Robust profitability: 10.2% Group adj. EBITDA margin
2023 FULL-YEAR EARNINGS Robust profitability: 10.2% Group adj. EBITDA margin GROUP ELECTRIFICATION BUSINESSES NON-ELECTRIFICATION OTHER ACTIVITIES (INDUSTRY & SOLUTIONS) (MAINLY METALLURGY) +3.0% EXCL. OTHER ACTIVITIES +2.4% EXCL. UMBILICALS €6,745M €6,512M €3,884M €3,736M €1,559M €1,750M €1,302M €1
Slide 16: Gradual performance improvement in H2
2023 FULL-YEAR EARNINGS Gradual performance improvement in H2 +1%(1) Adjusted EBITDA impacted by a combination RECORD GENERATION & TRANSMISSION +17% excl. of project mix and one-offs especially in H1. ADJUSTED BACKLOG (€Bn) Umbilicals Gradual margin upturn in H2 from improved project execution, and
Slide 17: Secular trends driving record margins
2023 FULL-YEAR EARNINGS Secular trends driving record margins +5%(1) +78% Momentum supported by secular trends, INNOVATION including grid modernization and FROM PRODUCTS TO SOLUTIONS renewable energy projects. Absolute numbers reflecting Reka Cables acquisition 1,186 completed in April 2023. 1,088 E
Slide 18: Structural profitability improvement offsetting volume normalization
2023 FULL-YEAR EARNINGS Structural profitability improvement offsetting volume normalization -6%(1) INNOVATION Focus on structural performance and FROM PRODUCTS TO SOLUTIONS selectivity supporting robust EBITDA margin at 14%. Performance resulting from successful transformation and Active and suppor
Slide 19: Section 03
2023 FULL-YEAR EARNINGS SECTION 03 Nexans 2024 © All right Reserved Page 19
Slide 20: Adj. EBITDA up 8% in 2023 vs 2022
2023 FULL-YEAR EARNINGS Adj. EBITDA up 8% in 2023 vs 2022 ADJ. EBITDA(1) EVOLUTION (€M) – GROUP In €M 2022 2023 +8% SALES AT CURRENT METAL PRICES 8,369 7,790 SALES AT STANDARD METAL PRICES 6,745 6,512 Organic growth +6.3% -0.9% Adj. EBITDA(1) 616 665 665 Adj. EBITDA on standard sales (%) 9.1% 10.2%
Slide 21: Superior cash generation and robust balance sheet maintained
2023 FULL-YEAR EARNINGS Superior cash generation and robust balance sheet maintained NET DEBT LAST 12 MONTHS EVOLUTION (€M) Strategic Capex Leverage Leverage 0.4x(1) 0.4x(1) NORMALIZED FCF NET DEBT Cash from Change in Reorganization Capital Other Financial Dividend & M&A IFRS16 & NET DEBT DEC 2022 o
Slide 22: Reinforced by inaugural sustainability-linked bond issued in 2023
2023 FULL-YEAR EARNINGS Reinforced by inaugural sustainability-linked bond issued in 2023 NET DEBT BREAKDOWN LIQUIDITY AND DEBT REDEMPTION SCHEDULE (€M) TOTAL AVAILABLE In €M DEC 22 DEC 23 LIQUIDITY GROSS DEBT 1,316 1,345 1,931 Cash & cash equivalents (1,134) (1,131) Undrawn 800 GROSS facility DEBT
Slide 23: Delivering on our 2024 commitments
2023 FULL-YEAR EARNINGS Delivering on our 2024 commitments 2021 CMD COMMITMENTS 2024 OBJECTIVES 2023 ACHIEVEMENTS GROUP INLINE EBITDA MARGIN % (1) ELECTRIFICATION ACTIVITIES INLINE NORMALIZED CASH CONVERSION % (1) GROUP OUTSTANDING ROCE ELECTRIFICATION ACTIVITIES INLINE OWC GROUP OUTSTANDING LEVERAG
Slide 24: Section 04
2023 FULL-YEAR EARNINGS SECTION 04 Nexans 2024 © All right Reserved Page 24
Slide 25: 2024 guidance: Adj. EBITDA and normalized free cash flow
2023 FULL-YEAR EARNINGS TAILWINDS OVERALL GROUP (Excluding non-closed ‒ Continuation of buoyant market acquisitions and divestments) demand, supported by global megatrends in electrification ‒ Transformation and value-added solutions to support structural profitability improvements ‒ Risk-reward bac
Slide 26: Nexans Capital Markets Day 2024
NEXANS CAPITAL MARKETS DAY 2024 November 13th, 2024 London For more information contact investor.relations@nexans.com Page 26
Slide 27: Section 05
2023 FULL-YEAR EARNINGS SECTION 05 Nexans 2024 © All right Reserved Page 27
Slide 28: Nexans actively engaging with investors
2023 FULL-YEAR EARNINGS Nexans actively engaging with investors JUNE 12TH JP Morgan CEO conference, London FEB 15TH & 19TH FEB 26TH-27TH MARCH 4TH MARCH 19TH MAY 14TH MAY 28TH Paris roadshow NYC roadshow Berenberg Pan BofA Global Industrials ODDO BHF Sustainability Société Générale Nice with ODDO BH
Slide 29: A global player of the energy transition
2023 FULL-YEAR EARNINGS A global player of the energy transition ELECTRIFICATION BUSINESSES 2023 OUR PURPOSE WE ELECTRIFY THE FUTURE STANDARD SALES GENERATION & TRANSMISSION DISTRIBUTION USAGE OUR VALUES DEDICATED PIONNEERS UNITED PEOPLE OUR PROMISE COUNTRIES SCALE-UP TO STEP-UP OTHER (MAINLY METALL
Slide 30: and balanced geographic footprint
2023 FULL-YEAR EARNINGS and balanced geographic footprint 22% 45% 57% 70% NORTH AMERICA EUROPE 16% 2% OTHERS ELECTRIFICATION OTHERS ELECTRIFICATION 13% 12% GENERATION & GENERATION & TRANSMISSION TRANSMISSION €6.5Bn €665m 2023 SALES AT STANDARD 2023 ADJUSTED METAL PRICE 18% EBITDA 23% DISTRIBUTION DI
Slide 31: Unleashing the Group's full potential
2023 FULL-YEAR EARNINGS Unleashing the Group’s full potential +69% Reported EBITDA(1) (€m) 670-730 665 599 463 411 413 375 350 333 347 316 325 288 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 GUIDANCE (1) EBITDA is defined as operating margin before depreciation and amortization.
Slide 32: Sales at standard metal price and profitability
2023 FULL-YEAR EARNINGS Sales at standard metal price and profitability 2022 PRO FORMA(1) 2023 Adj. Adj. Adj. Standard Organic EBITDA Standard Organic In €M EBITDA EBITDA EBITDA EBITDA% Sales growth (2) reported Sales growth (2) % ELECTRIFICATION 3,884 +12.6% 468 12.0% 468 3,736 -1.5% 467 12.5% → Ge
Slide 33: Impact of foreign exchange and consolidation scope
2023 FULL-YEAR EARNINGS impact of foreign exchange and consolidation scope 2022 Allocation 2022 Organic Scope Organic FX FX 2023 reported changes pro forma Growth effect growth ELECTRIFICATION 3,816 69 3,884 (226) (53) 131 3,736 -1.5% → Generation & Transmission 897 61 958 (95) 7 - 870 +0.8% → Distr
Slide 34: EBITDA reconciliation
2023 FULL-YEAR EARNINGS In €M 2020 2021 2022 2023 EBITDA (incl. share-based payment expenses - 2021 CMD guidance) 347 463 599 652 EBITDA margin on Standard sales 5.8% 7.6% 8.9% 10.0% IFRS 2 Share-based payment expenses 4 8 16 13 ADJUSTED EBITDA 351 470 616 665 Adjusted EBITDA on Standard sales 6.1%
Slide 35: Normalized net income and free cash flow
2023 FULL-YEAR EARNINGS In €M 2022 2023 OPERATING MARGIN 420 432 Cost of debt (net) (35) (59) Other financial income and expense restated (26) (23) Income taxes (incl. impact from normalization adjustments) (101) (96) Minority interests (3) (2) NORMALIZED NET INCOME (GROUP SHARE) 255 253 Proposed di
Slide 36: Debt covenants
2023 FULL-YEAR EARNINGS as of December 31, 2023 In €M DEC 2022 DEC 2023 GEARING RATIO Fixed assets and other non-currentassets 2,271 2,611 Covenant @120% Net Debt Gearing(1) of which: goodwill 289 293 Deferred tax assets 122 129 11% 12% NON-CURRENT ASSETS 2,393 2,740 5% Working Capital 27 (216) DEBT
Slide 37: Our strategy
2023 FULL-YEAR EARNINGS Our strategy Distributed Distributed generation generation (Utility scale) (Private) DEMAND FOR ELECTRICITY Offshore WORLDWIDE BY 2030 Onshore wind wind Residential Datacenters OF THE ADDITIONAL Solar Infra- GENERATION CAPACITY TO structures BE ROLLED OUT BY 2040 WILL COME FR
Slide 38: The urgency of Electrification
2023 FULL-YEAR EARNINGS The urgency CABLE MARKETS FORECAST of Electrification NET-ZERO TRANSITION GRID RENEWAL & STRENGTHENING SMART & SAFE BUILDINGS The beginning of a demand ‒ Shift from fossil fuel to renewables ‒ Replace and monitor ageing grids to ‒ Supply renovation wave and smart super cycle
Slide 39: €20Bn project pipeline for offshore wind and interconnection projects
2023 FULL-YEAR EARNINGS €20Bn project pipeline for offshore wind and interconnection projects SELECTION OF FUTURE SUBSEA OFFSHORE WIND PROJECTS SELECTION OF FUTURE SUBSEA INTERCONNECTION PROJECTS Installation Capacity Fully Capacity Project AC / DC Country Project Countries date (MW) commissioned (M
Slide 40: Robust corporate governance and board practices
2023 FULL-YEAR EARNINGS Robust corporate governance and board practices 14 MEMBERS (50%WOMEN, 50%MEN) JEAN MOUTON ANNE LEBEL JANE BASSON LAURA MARC GRYNBERG SYLVIE JÉHANNO HUBERT PORTE 4 DIRECTORS 11 MAIN AREAS 3 DIRECTORS Chairman Lead Independent Independent Director BERNARDELLI Independent Direct
Slide 41: GHG emissions reduction targets validated by the SBTi
2023 FULL-YEAR EARNINGS Targets validated by the SBTi SCOPE 3 SCIENCE BASED INITIATIVE (SBTi) TARGETS VS 2019 BASE YEAR EMISSIONS UPSTREAM PURCHASE OF FREIGHT RAW MATERIALS SCOPE 1 GHG emissions reduction (in -22% EMISSIONS -30% DIRECT INDUSTRIAL OPERATIONS -29% SCOPE 1&2 -46% SCOPE 3 SCOPE 2 EMISSI
Slide 42: Definitions
2023 FULL-YEAR EARNINGS Adjusted Generation & Transmission backlog: Backlog adjusted for secured but not yet Organic growth: Standard sales growth as a percentage of prior-year standard sales. Organic implemented Subsea, Land and Special Telecom contracts. growth is a measure of growth excluding the
Slide 43: Thank you
Thank you