Nexans Sa · EURONEXT:NEX
Nexans Sa — FY2011 Earnings Presentation
27 slides from Nexans Sa's earnings presentation, Feb 8, 2012
Slide 1: 2011 Full Year results
2011 Full Year results February 8, 2012
Slide 2: Safe Harbor
2011 Full Year results 2 Safe Harbor This presentation contains forward-looking statements relating (4) the maintenance of sales volumes generally in the context of to the Group’s expectations for future financial performance, a possible decrease in macroeconomic growth; including sales and profitab
Slide 3: 2011 achievements
2011 Full Year results 3 2011 achievements Frédéric Vincent Chairman and CEO
Slide 4: 2011 key figures: targets have been met
2011 Full Year results 4 2011 key figures: targets have been met Full year sales(*) Quarterly sales evolution(**) 4,594 13% 4,309 +6.5% org (* * ) M€ 5.9% 4% 3.9% 2010 2011 Q1 Q2 Q3 Q4 Operating margin(***) Net debt 5.6% 4.8% 366 256 M€ 207 M€ 222 144 2010 2011 Dec. 2010 June 2011 Dec. 2011 (*) Sale
Slide 5: 2011: growth in all businesses
2011 Full Year results 5 2011: growth in all businesses Sales at constant metal prices in M€ and year over year organic growth Energy Infrastructures Industry 1,814 +6.4% org (* ) 1,956 +10.6% org (* ) 955 875 M€ M€ 2010 2011 2010 2011 B uilding Telecom +7.1% org (* ) 941 879 426 + 5.4% org
Slide 6: Further improvement in profitability
2011 Full Year results 6 Further improvement in profitability Operating margin rate on constant metal sales 7.6% 2010 6.8% 6.8% 2011 6.3% 6.0% 5.6% 4.8% 3.7% 3.2% 2.6% Energy Group Industry Building Telecom Infrastructures
Slide 7: Energy Infrastructures: sales and margin improvement in power distribution in H2 '11
2011 Full Year results 7 Energy Infrastructures: sales and margin improvement in power distribution in H2 ‘11 Submarine Power transmission Power distribution ∼25 % of sales ∼60 % of sales • Double digit organic growth thanks to new • Positive sales momentum in 2011 in all capacity ramp-up in Norway
Slide 8: Industry: volume upturn driving margin recovery
2011 Full Year results 8 Industry: volume upturn driving margin recovery Breakdown of sales at constant metal prices Operating Margin (% of constant metal sales) Resources(*) Others ~15% ~25% 3.7% ~25% Transportation ~35% 2.6% Automotive 2010 2011 Transportation Resources(*) Auto & other segments •
Slide 9: Building: Continuing overall positive sales evolution leading to profitability uplift
2011 Full Year results 9 Building: Continuing overall positive sales evolution leading to profitability uplift Sales evolution by area in M€(*) Operating margin (% of constant metal sales) 941 879 +7.1% org 7.0% 6.5% ROW 4.2% Europe 2.1% 2010 2011 H1 '10 H2 '10 H1 '11 H2 '11 • Overall widespread upt
Slide 10: Telecom: Improved profitability
2011 Full Year results 10 Telecom: Improved profitability LAN Telecom Infrastructures • Overall stable activity level: • Copper cables: strong sales upturn in Stable in the USA and Europe South America and mid single digit Growing in South America growth in Europe Down in China • Optical fiber
Slide 11: Financial results
2011 Full Year results 11 Financial results Frédéric Michelland CFO, Senior Corporate Executive VP
Slide 12: Key Figures
2011 Full Year results 12 Key Figures (in Million €) 2010 2011 Sales 6,179 6,920 At current metal prices Sales 4,309 4,594 +6.5% At constant metal prices organic EBITDA(*) 345 392 Operating margin 207 256 Operating margin rate at constant metal 4.8% 5.6% prices Operating margin rate at current metal
Slide 13: Income statement (1/3)
2011 Full Year results 13 Income statement (1/3) (in Million €) 2010 2011 Sales 4,309 4,594 At constant metal prices Margin on variable costs 1,332 30.9% 1,478 32.2% Indirect costs (987) (1,086) EBITDA(*) 345 8.0% 392 8.5% Depreciation (138) (136) Operating margin 207 4.8% 256 5.6% Core exposure imp
Slide 14: EBITDA evolution: volumes, price and mix driving top line growth
2011 Full Year results 14 EBITDA evolution: volumes, price and mix driving top line growth Mix & price in M€ FX & (40) Others 2011 Volume 58 effect EBITDA Operating costs (12) 2010 EBITDA 41 392 345 EBITDA EBITDA margin: margin: 8.0% 8.5%
Slide 15: Income statement (2/3)
2011 Full Year results 15 Income statement (2/3) (in Million €) 2010 2011 Sales 4,309 4,594 At constant metal prices Margin on variable costs 1,332 30.9% 1,478 32.2% Indirect costs (987) (1,086) EBITDA(*) 345 8.0% 392 8.5% Depreciation (138) (136) Operating margin 207 4.8% 256 5.6% Core exposure imp
Slide 16: Income statement (3/3)
2011 Full Year results 16 Income statement (3/3) (in Million €) 2010 2011 Operating income 195 (48) Financial charge (84) (106) Income before tax 110 (155) Income tax (26) (31) Net income from operations 84 (186) Net income Group share 82 (178) Net income excluding restructuring, core exposure, capi
Slide 17: Balance sheet
2011 Full Year results 17 Balance sheet (in Million €) 31 dec. 2010 31 dec. 2011 Long-term fixed assets 1,815 1,819 of w hich goodw ill 378 386 Deferred tax assets 82 96 Non-current assets 1,897 1,915 Working Capital 1,058 961 Total to finance 2,955 2,876 Net financial debt 144 222 Reserves 474 632
Slide 18: Working Capital kept under control
2011 Full Year results 18 Working Capital kept under control Operational Working Capital in % of sales(*) at current metal prices 21.2% 19.4% 18.9% 18.3% 18.4% 17.0% 16.5% Dec. ‘08 June ‘09 Dec. ‘09 June ‘10 Dec. ‘10 June ‘11 Dec. ‘11 (*) Based on last quarter sales x 4
Slide 19: Strict control of net debt despite significant rise in activity
2011 Full Year results 19 Strict control of net debt despite significant rise in activity Change in Net debt working Others Dec. 11 in M€ capital (10) Net debt Operating (66) Dec. 10 cash flow(*) Dividends Restructuring (32) (222) (48) CAPEX (144) No impact of copper price variation 209 (131) (*) Op
Slide 20: Strategic initiatives
2011 Full Year results 20 Strategic initiatives Frédéric Vincent Chairman and CEO
Slide 21: 6 strategic guidelines
2011 Full Year results 21 6 strategic guidelines Continue focus on customer orientation Develop in attractive growing markets Consolidate our position in mature markets Gain competitiveness through excellence and cost reduction Drive differentiation through technology leadership and services Engage
Slide 22: 2011 strategic initiatives
2011 Full Year results 22 2011 strategic initiatives • China EHV: acquisition of Shandong Yanggu cables in progress • China industrial cables: capacity extension decided • Rolling stock: JV with Alstom in Morocco • USA EHV: Greenfield launched • Madeco confirmed as a key reference shareholder • Euro
Slide 23: Nexans resilience matrix in case of downturn
2011 Full Year results 23 Nexans resilience matrix in case of downturn Telecom LAN & Infrastructure Land Power Europe MERA APAC Transmission Submarine Power Transmission Worldwide Northern Central South- Building ern NAM SAM MERA APAC Europe Europe Europe Industry Automotive Resources Transport Othe
Slide 24: Appendices
2011 Full Year results 24 Appendices
Slide 25: Sales and profitability by segment
2011 Full Year results - Appendices 25 Sales and profitability by segment 2010 2011 (in Million €) Sales OM OM% Sales OM OM% Energy Infrastructures 1,814 138 7.6% 1,956 124 6.3% Industry 875 22 2.6% 955 36 3.7% Building 879 28 3.2% 941 64 6.8% Telecom Infrastructures 182 9 5.1% 208 13 6.4% Private N
Slide 26: Impact of foreign exchange and consolidation scope
2011 Full Year results - Appendices 26 Impact of foreign exchange and consolidation scope Organic (in Million €) 2010 Forex Scope growth 2011 Energy Infrastructures 1,814 18 7 117 1,956 Industry 875 5 (16) 91 955 Building 879 (4) 3 63 941 Telecom Infrastructures 182 4 0 22 208 Private Networks (LAN)
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