Nexans SA · EURONEXT:NEX
Nexans SA — Merger or Acquisition (February 2008)
33 slides from Nexans SA's merger presentation, Feb 19, 2008
Slide 1: Nexans / Polycab Press conference
Nexans / Polycab Press conference Mumbai (India), February 19, 2008 Nexans / Polycab Press Conference – Mumbai, February 19, 2008 1
Slide 2: A key partnership
A key partnership Signature of a draft agreement between Nexans and Polycab for the creation of a joint venture • Nexans, the worldwide leader in the cable industry, gains a foothold in India, and continues its geographic redeployment in high-growth regions. • Polycab, the Indian leader in the cable
Slide 3: Agenda
Agenda 1 Nexans: global expert in cables and cabling systems 2 Nexans in Asia-Pacific and in India 3 Polycab: the Indian leader in the cable industry 4 A booming cable market in India 5 Nexans Polycab Pvt Ltd: a key step for both companies 6 Q&A Nexans / Polycab Press Conference – Mumbai, February 1
Slide 4: Nexans, global expert in cables and cabling systems
Nexans, global expert in cables andexpert Nexans, global cabling systems in cables and cabling systems Michel Lemaire Nexans Executive Vice President Asia-Pacific Area Nexans / Polycab Press Conference – Mumbai, February 19, 2008 4
Slide 5: Presentation of the Corporate Video
Presentation of the Corporate Video Nexans / Polycab Press Conference – Mumbai, February 19, 2008 5
Slide 6: A worldwide leader
A worldwide leader • 7.4 Billion Euro sales in 2007 (at current metal prices) Sales by destination * * Based on sales at current metal prices Nexans / Polycab Press Conference – Mumbai, February 19, 2008 6
Slide 7: Global presence
Global presence • Plants in more than 30 countries and commercial activities worldwide • 22,000 employees • Mastery of national and international standards Nexans / Polycab Press Conference – Mumbai, February 19, 2008 7
Slide 8: Three main markets
Three main markets • A global player in the infrastructure, industry, building markets with energy as the basis of its leadership development. Sales by key market** ** Based on sales at constant metal prices Nexans / Polycab Press Conference – Mumbai, February 19, 2008 8
Slide 9: At the core of advanced technological achievements
At the core of advanced technological achievements • Horns Rev: the biggest • Airbus A380: new offshore windfarm worldwide generation of passenger aircraft • Petronas Towers: 2 super skyscrapers in Malaysia • Queen Mary II: one of the biggest cruise • Transrapid: first ships in the world magnetic le
Slide 10: Building the future through innovation
Building the future through innovation • 1 international research center • 8 competence centers • 450 researchers, engineers and technicians • 450 families of patents registered Leading position in advanced technologies: • High data transmission capacity • Insulation material • Superconductors • Saf
Slide 11: A great step forward: India!
A great step forward: India ! Concentration on core business and geographical repositioning Minority interests in Korea November 2006 NVC Japan (JV with Viscas) July 2006 CONFECTA January 2006 LIOA Vietnam MADECO January 2006 November 2007 (closing expected mi-2008) OLEX November 2006 Acquisitions :
Slide 12: Nexans in Asia-Pacific
Nexans in Asia-Pacific Nexans in Asia-Pacific Nexans / Polycab Press Conference – Mumbai, February 19, 2008 12
Slide 13: Nexans in Asia-Pacific – Key figures
Nexans in Asia-Pacific – Key figures • Asia-Pacific sales 564 Million Euros (2007) • Asia-Pacific Organic growth 6,6% in 2007 • Asia-Pacific sales are 13% of Nexans • Factories in 6 countries • Sales and support offices in 12 countries Nexans / Polycab Press Conference – Mumbai, February 19, 2008 13
Slide 14: Nexans in India
Nexans in India • Sales in India in 2007: 17 million Euros • Head office in New Delhi • Staff in Mumbai, Bangalore and Chennai • No industrial presence until now • Breakdown of sales by product families: Power cables: 6 Meuros Special cables: 1 Meuros Telecommunications cables: 10 Meuros • Major cus
Slide 15: First step of Nexans in India
First step of Nexans in India • Reasons for investing in India? Nexans is a global player, hence must be active in all important markets India is a booming country with strong growth perspectives Nexans is willing to bring its expertise and contribute to that growth Request by our global customers •
Slide 16: Joining Forces in India
Silent Leader in THE the SILENT Cable Industry LEADER IN THE CABLE INDUSTRY Joining Forces in India 19th Feb 2008
Slide 17: Mr. R.S. Vaidyanathan, CEO Polycab
Silent Leader in THE the SILENT Cable Industry LEADER IN THE CABLE INDUSTRY Mr. R.S. Vaidyanathan CEO Polycab Group of Companies 19th Feb 2008
Slide 18: Polycab: Silent Leader in the Cable Industry
Silent Leader in THE the SILENT Cable Industry LEADER IN THE CABLE INDUSTRY Over three decades of experience in cable manufacture Largest manufacturer of cables and wires in India Strong and renowned brand name Present in wide range of cables & wires - HT / LT Power, Control, Instrumentation, Commun
Slide 19: Polycab distribution network
Silent Leader in THE the SILENT Cable Industry LEADER IN THE CABLE INDUSTRY Focused on single business - an organization which effectively senses the market conditions and competition The Company has a nationwide network of over 300 authorized distributors, dealers, stockist and agents in India and
Slide 20: The Market Leader
Silent Leader in the Cable Industry THE MARKET LEADER With a conscious and strategic direction and growth plan, Over the years, the Company has become a market leader in almost all the product categories: Products 5 years prior Current Market Share H T Power cable H H Market leader L T Power cable H
Slide 21: Industrial Presence
Silent Leader in the Cable Industry INDUSTRIAL PRESENCE Leader in major industrial segments and has a significant presence in the retail segment. Accepted and certified by all leading OEMs, consultants and contractors Po w e r 24% Othe rs 35% Ce me nt 2% Co ns tructio n Offs ho re 20% platfo rm 2% T
Slide 22: Base Manufacturing
Silent Leader in the Cable Industry BASE MANUFACTURING Spread across over 100 acres of land in Daman and Gujarat, produces more than 10,000 km of cables and 150,000 km of Wires per month ISO 9002 certified; products certified at CPRI & ERDA Capacity utilization of almost 100% 19th Feb 2008
Slide 23: Growth: Sales – US$ million
Silent Leader in the Cable Industry GROWTH 600 506.33 Sales – US$ million 500 % 49 – 400 AGR C e ar y 300 5 274.67 214.09 200 122.58 91.71 100 68.9 55.88 39.55 5.12 16.96 0 1989 - 90 1994 - 95 1999 - 00 2000 - 01 2001 - 02 2002 - 03 2003 - 04 2004 - 05 2005 - 06 2006 - 07 19th Feb 2008
Slide 24: Industry Potential
Silent Leader in the Cable Industry INDUSTRY POTENTIAL The Indian Cable industry is currently estimated to be about US$ 6 billion, dependent on growth in consumer sectors like Power generation, transmission and distribution Industrial CAPEX (new plants and factories) Railways Infrastructure - housin
Slide 25: Industry Potential: sector wise cable demand
Silent Leader in the Cable Industry INDUSTRY POTENTIAL Investments in other macro economic sectors like the railways, real estate and other industry of approximately $300 – $400 billion over next 5 years to sustain growth The cable industry is expected to grow over US$ 15-16 billion with a CAGR of a
Slide 26: Nexans Polycab Pvt. Ltd.
Nexans Polycab Pvt. Ltd. A key asset for both companies Nexans / Polycab Press Conference – Mumbai, February 19, 2008 1
Slide 27: Key terms of the agreement (1/2)
Key terms of the agreement (1/2) • Joint venture majority-held by Nexans, named Nexans Polycab Pvt Ltd • Nexans will be in charge of managing the company in close cooperation with Polycab • Nexans, complementing Polycab’s portfolio, will bring: its expertise in high voltage cables its expertise in i
Slide 28: Key terms of the agreement (2/2)
Key terms of the agreement (2/2) The joint-venture Nexans Polycab Pvt Ltd will: • Phase 1: Open its own production facility Manufacture elastomeric products Have its own sales forces, besides Polycab’s teams Distribute Nexans products which are not part of Polycab or joint-venture portfolios • Phase
Slide 29: A strong strategic fit
A strong strategic fit • Alliance between the leading cable producer in India and the worldwide leader in the cable industry Creation of Nexans Polycab Pvt Ltd POLYCAB NEXANS • N° 1 in India • Worldwide leader • 30 years of experience and strong • Recognised industrial know-how and R&D relationships
Slide 30: Objectives of the new company
Objectives of the new company • Answer to market demand for elastomeric cables addressing predominately following segments: Rolling Stocks (cables for trains) Shipyards (cables for boats – Commercial & Navy) Mining (cables for mines) Handling (cables for cranes) Windmills (cables for wind turbines)
Slide 31: The new manufacturing facility
The new manufacturing facility • Location: Daman • Date of opening: 1st quarter 2009 • Workforce: Around 100 • Type of cables manufactured: Elastomeric • Market targeted: Rolling Stocks, Shipyards, Oil&Gas, Windmills, Mining, Handling… • Capacity of production: metallurgy, insulation, CV lines, mixi
Slide 32: Q&A
Q&A Nexans / Polycab Press Conference – Mumbai, February 19, 2008 7
Slide 33: Thank you for your attention
Thank you for your attention Nexans / Polycab Press Conference – Mumbai, February 19, 2008 8