Nexans Sa · EURONEXT:NEX
Nexans Sa — Q1 2025 Earnings Presentation
28 slides from Nexans Sa's earnings presentation, Apr 30, 2025
Slide 1: Q1 2025: Promising Start to the Year
Q1 2025 PROMISING START TO THE YEAR Christopher Guérin, CEO Jean-Christophe Juillard, Deputy CEO & CFO April 30, 2025 - Paris
Slide 2: Safe Harbour
Safe Harbour This presentation contains forward-looking INVESTOR RELATIONS: statements which are subject to various expected Contact: Audrey Bourgeois or unexpected risks and uncertainties that could Telephone: +33 1 78 15 00 43 have a material impact on the Company’s future performance. Email: audr
Slide 3: Main highlights
Q1 2025 Main highlights GROUP ELECTRIFICATION TRANSMISSION SUCCESSFUL ORGANIC GROWTH ORGANIC GROWTH BACKLOG INTEGRATION LA TRIVENETA +4.1% +6.8% €8.1bn CAVI (Q1 2025 vs Q1 2024) (Q1 2025 vs Q1 2024) RECORD ADJUSTED BACKLOG DELIVERING EXPECTED SYNERGIES MAJOR STEP IN THE PORTFOLIO ROTATION €1,815m €1
Slide 4: Q1 2025 Group organic growth at +4.1%
Q1 2025 Group organic growth at +4.1% Strong performance of Electrification businesses at +6.8% GROUP ELECTRIFICATION BUSINESSES OTHER ACTIVITIES NON-ELECTRIFICATION (MAINLY METALLURGY) (INDUSTRY & SOLUTIONS) ORGANIC GROWTH +4.1% +6.8% +5.7% -4.1% REVENUE (€M) REVENUE (€M) REVENUE (€M) REVENUE (€M)
Slide 5: In a world of constant crisis, Nexans stands firm
In a world of constant crisis, Nexans stands firm… …and our people grow more EMPLOYEE ENGAGEMENT RATE committed every day (thanks to promising careers perspective, and inspiration 72% 77% 78% 79%* at work) At Nexans, rising engagement powers E3—driving performance, responsibility, and purpose Record
Slide 6: PWR-Transmission: Quality of the backlog and good mid-term visibility
PWR-Transmission Quality of the backlog and good mid-term visibility Activity remained strong, supported by the ORGANIC GROWTH (%) ADJUSTED BACKLOG (€BN) manufacturing of Celtic and Great Sea Interconnector projects that progressed well in the first-quarter. Installation activity was roughly stable
Slide 7: PWR-Transmission: Charleston, a strategic asset in the US
PWR-Transmission Charleston, a strategic asset for Nexans in the US, that can serve both the US and the rest of the world ~90% PLANT LOAD 2025 US OFFSHORE WIND EUROPEAN FARM PROJECTS ENDING PROJECTS No impacts from US tariffs* MALTA SICILY INTERCONNECTOR Import of copper from Montreal CONTRACT (awar
Slide 8: PWR-Grid: Strong underlying trends despite phasing effect in Q1
PWR-Grid Strong underlying trends supporting our activity despite a phasing effect in Q1 ORGANIC GROWTH (%) +1.7% Organic growth impacted in Q1 by phasing effect in Europe and a particularly challenging comparison basis in 2024, but should gain momentum in Q2. In addition, PWR-Grid first-quarter of
Slide 9: PWR-Connect: Good momentum as strategic positioning takes shape
PWR-Connect Good momentum as Nexans’ strategic positioning takes shape ORGANIC GROWTH (%) In line with the Group’s strategy, to focus on high added value solutions and premium customers, the segment benefited from a +1.9% good momentum linked to new products (helping our customers to install, mainta
Slide 10: PWR-Connect: Progress on Fire safety technology versus PVC
PWR-Connect Progress on Fire safety technology versus PVC BUILDING CABLE ENHANCED BY THE SUPPORTING THE MARKET GLOBAL DEMAND IS ACCELERATION OF ADOPTION OF FIRE FIRE SAFETY STRUCTURALLY ENHANCES GROWING UNDERLYING TRENDS SAFETY TECHNOLOGY NEXANS CONNECT CABLES PREMIUMIZATION +20% ELECTRICITY CONSUMP
Slide 11: PWR-Connect: Mobiway POP, defining a new standard
PWR-Connect Mobiway POP, defining a new standard COUNTRY ROLLOUT OF MOBIWAY POP BIGGEST USER INNOVATION BROUGHT TO ELECTRICIANS EVER 12 HIGH DEMAND AND PROPRIETARY SOLUTION 8 PILOT COUNTRY IN COLOMBIA IN 2024, LAUNCHED IN FRANCE EXCELLENT IN Q1 2025 (PRESENT IN 600+ CUSTOMERS’ 5 AGENCIES IN FR) FEED
Slide 12: M&A and portfolio rotation
M&A and portfolio rotation We commit to a disciplined path to become a Pure Electrification champion New value pool through tech solutions Invest to grow and scale €20Bn High growth verticals M&A opportunity CENTELSA REKA CABLES LA TRIVENETA CAVI Geographical expansion 2020 2021 2022 2023 2024 2025
Slide 13: Integration of La Triveneta Cavi well on-track
M&A and portfolio rotation Integration of La Triveneta Cavi well on-track, enhancing Nexans’ European footprint and product offerings 700 COST SYNERGIES DELIVERED €20M PEOPLE KEY TERMS OF • Procurement SYNERGIES RUN-RATE THE TRANSACTION (announced (JUNE 2024) • Logistics in June 2024) • Products 4 ~
Slide 14: Divestment of Lynxeo, a major step in our electrification journey
M&A and portfolio rotation Divestment of Lynxeo, marking a major step in our electrification journey EXCLUSIVE NEGOTIATIONS (MARCH 2025) ~€525M ENTERPRISE VALUE PIVOTAL MILESTONE IN OUR ELECTRIFICATION Lynxeo is a powerhouse in specialty industrial cables 2,000 JOURNEY EMPLOYEES ACROSS EUROPE, ASIA
Slide 15: 2025 Guidance confirmed
2025 Guidance confirmed €770M – €850M €225M – €325M ADJUSTED EBITDA FREE CASH FLOW Excluding future changes of scope Page 15 | Q1 2025 FINANCIAL INFORMATION Nexans 2025 © All right Reserved
Slide 16: Appendices
Appendices Page 16 | Q1 2025 FINANCIAL INFORMATION Nexans 2025 © All right Reserved
Slide 17: Guidance for 2025
Guidance for 2025 GROUP ADJUSTED EBITDA, €M €770-850M €804M ~€770M AmerCable divestment & La Triveneta Cavi 12-month contribution Organic growth & 2024 Changes of scope 2024 Pro forma 2025E margin expansion Page 17 | Q1 2025 FINANCIAL INFORMATION Nexans 2025 © All right Reserved
Slide 18: 2028 guidance
2028 guidance GROUP ELECTRIFICATION ORGANIC SALES ADJ. EBITDA €1,150m 2024-2028 CAGR 3-5% (+/- €75M) FCF CONVERSION(1) >45% INCREMENTAL ADJ. EBITDA +€350m (+/- €50m) ROCE >20% DIVIDEND PAYOUT(2) 30% LEVERAGE ≤ 1.0x (1) FCF pre-M&A and equity operations / Adj. EBITDA assuming flat change in WC (2) S
Slide 19: Q1 2024 bridge reported to pro forma
Q1 2024 bridge reported to pro forma Q1 2024 Q1 2024 FX bridge Reported Pro forma ELECTRIFICATION 1,025 1 1,026 → PWR - Transmission 257 - 257 → PWR - Grid 303 6 309 → PWR - Connect 465 (5) 460 NON-ELECTRIFICATION (Industry & Solutions) 447 (8) 439 TOTAL EXCL. OTHER ACTIVITIES 1,472 (7) 1,466 → Othe
Slide 20: Sales at standard metal prices
Sales at standard metal prices Impact of foreign exchange and consolidation scope Q1 2024 Organic Q1 2025 Organic Scope FXCurrency Pro forma Growth reported growth ELECTRIFICATION 1,026 139 (14) 69 1,221 +6.8% → PWR - Transmission 257 - (5) 55 308 +21.7% → PWR - Grid 309 - (2) 5 312 +1.7% → PWR - Co
Slide 21: Sustainability: In our compass
Sustainability In our compass SCOPE 3 SCIENCE BASED INITIATIVE (SBTi) TARGETS VS 2019 BASE YEAR EMISSIONS UPSTREAM PURCHASE OF FREIGHT RAW MATERIALS -40% -30% Carbon emissions reduction (in %) SCOPE 1 EMISSIONS DIRECT -30% APPROVED INDUSTRIAL OPERATIONS -38% -42% SCOPE 2 -46% EMISSIONS INDIRECT PURC
Slide 22: Sustainability: Supported by a trendsetter operating model
Sustainability Supported by a trendsetter operating model SCIENCE BASED INITIATIVE (SBTi) TARGETS VS 2019 BASE YEAR -40% -30% Carbon emissions reduction (in %) -30% APPROVED -38% -42% -46% 2019 2024 2028 2030 2050 Good performance and progress to date occurs in stages and cannot be extrapolated line
Slide 23: Nexans at a glance
Nexans at a glance A global player of the energy transition ELECTRIFICATION BUSINESSES 2024 OUR €7.1bn PURPOSE STANDARD SALES WE ELECTRIFY THE FUTURE 28,500 PWR-TRANSMISSION PWR-GRID PWR-CONNECT OUR PEOPLE VALUES DEDICATED PIONNEERS UNITED 41 OUR COUNTRIES PURPOSE SCALE-UP TO STEP-UP OTHER (MAINLY M
Slide 24: Diversified end-markets and balanced geographic footprint
Diversified end-markets and balanced geographic footprint 19% 47% 0.3% NORTH AMERICA EUROPE 11% 18% OTHERS 18% OTHERS PWR-TRANSMISSION PWR-TRANSMISSION €7.1Bn 18% €804m 21% PWR-GRID PWR-GRID 2024 SALES 2024 AT STANDARD ADJUSTED EBITDA METAL PRICE 24% 29% 35% NON-ELECTRIFICATION PWR-CONNECT PWR-CONNE
Slide 25: The urgency of Electrification
The urgency of Electrification The beginning of a demand CABLE MARKETS FORECAST super cycle comparable to the 1950-1970’s NET-ZERO TRANSITION GRID RENEWAL & STRENGTHENING SMART & SAFE BUILDINGS ‒ Shift from fossil fuel to renewables ‒ Replace and monitor ageing grids ‒ Supply renovation wave and sma
Slide 26: Our strategy: Electrifying the future
Our strategy Electrifying the future Distributed Distributed generation generation (Utility scale) (Private) x6 ELECTRICITY DEMAND GROWTH BETWEEN 2023 Offshore Onshore wind AND 2035 wind Residential Datacenters ~86% Infra- OF CARS WILL BE Solar structures ELECTRIC BY 2035 Hydro Centralized Transmiss
Slide 27: Glossary
Glossary Adjusted PWR-Transmission backlog: Backlog adjusted for losses on asset disposals, (v) related acquisition costs for Sales at current non-ferrous metal prices: Net sales (at secured but not yet implemented Subsea, Land and Special completed acquisitions and costs and fees related to planned
Slide 28: Financial Calendar and Contact
Financial Calendar and Contact ROADSHOWS & CONFERENCES FINANCIAL CALENDAR May 13, 2025: ODDO BHF Sustainability Forum (Paris, In person) May 15, 2025: Annual General Meeting May 14, 2025: UBS Best of Europe (Virtual) May 19, 2025: Dividend – Ex date May 20, 2025: BERNSTEIN Nice Conference (Nice, In