Nexans Sa · EURONEXT:NEX
Nexans Sa — Q1 2024 Earnings Presentation
20 slides from Nexans Sa's earnings presentation, Apr 24, 2024
Slide 1: Q1 2024 Financial information
Q1 2024 Financial information Good start to the year Christopher Guérin, CEO Jean-Christophe Juillard, Deputy CEO & CFO April 24, 2024 – Paris
Slide 2: Safe Harbour
Q1 2024 FINANCIAL INFORMATION 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 wh
Slide 3: Q1 2024 Main highlights
Q1 2024 FINANCIAL INFORMATION Q1 2024 Main highlights GROUP Q1 GROUP SALES ACCELERATION IN ROBUST BALANCE SHEET Standard Sales (€m) ORGANIC GROWTH ELECTRIFICATION BUSINESSES MAINTAINED +2.8% +6.7% €350m €1,674m €1,692m Q1 2024 vs Q1 2023 Q1 2024 vs Q1 2023 Bond issuance Standard sales organic growth
Slide 4: Nexans to acquire iconic La Triveneta Cavi in Italy
Q1 2024 FINANCIAL INFORMATION Nexans to acquire iconic La Triveneta Cavi in Italy Significant progress toward closing Primarily manufacturing low-voltage cables, mainly for 700 >€800M PEOPLE 2023 CURRENT SALES the European market. A profitable player with best-in-class innovation and industrial plat
Slide 5: Expanding subsea high voltage assets
Q1 2024 FINANCIAL INFORMATION Expanding subsea high voltage assets To selectively capture market growth XLPE manufacturing Cable-laying vessel x2 capacities in Norway Ramp-up early 2024 3rd Nexans Electra Delivery in 2026 Nexans 2024 © All right Reserved Page 5
Slide 6: Engagement & Governance at the heart of Nexans
Q1 2024 FINANCIAL INFORMATION Engagement & Governance at the heart of Nexans Continuous Engagement Rate improvement since 2021 90% PARTICIPATION RATE EMPLOYEE ENGAGEMENT RATE APPOINTMENT OF A NEW CENSOR TAMARA DE GRUYTER 72% 77% 78% 80% President Portfolio Business and member of the 2021 2022 2024 2
Slide 7: Standard sales: good start to the year
Q1 2024 FINANCIAL INFORMATION Good start to the year: +4.7% org. in Q1 2024 excl. Other Continued amplification of Electrification businesses GROUP ELECTRIFICATION BUSINESSES NON-ELECTRIFICATION OTHER ACTIVITIES (INDUSTRY & SOLUTIONS) (MAINLY METALLURGY) ORGANIC GROWTH1 Q1 2024 vs Q1 2023 +2.8% +6.7
Slide 8: Generation & Transmission: Expansion programs supporting growth
Q1 2024 FINANCIAL INFORMATION Generation & Transmission Expansion programs supporting growth +34%2 RECORD GENERATION & TRANSMISSION ADJUSTED BACKLOG (€Bn)1 Robust topline growth thanks to contributions from subsea high voltage 257 plants investment in Charleston (USA), and Halden expansion (Norway)
Slide 9: Distribution: Demand underpinned by grid modernization trend
Q1 2024 FINANCIAL INFORMATION Distribution Demand underpinned by grid modernization trend +3%1 Strong demand from Electric Utilities with ENABLING THE ENERGY TRANSITION grid investment a priority in many countries. Europe benefitted from robust demand from utilities and new frame-agreements, notably
Slide 10: Usage: Sustained demand
Q1 2024 FINANCIAL INFORMATION Usage Sustained demand -2%1 INNOVATION Sales strongly up +11% organically FROM PRODUCTS TO SOLUTIONS versus Q4 2023 reflecting sustained demand across all regions and focus on value-added solutions. Active and engaged users 465 465 Good overall demand in South America a
Slide 11: 2024 Guidance confirmed
Q1 2024 FINANCIAL INFORMATION 2024 Guidance confirmed 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
Slide 12: Nexans Capital Markets Day 2024
NEXANS CAPITAL MARKETS DAY 2024 November 13th, 2024 London For more information contact [email protected] Nexans 2024 © All right Reserved Page 12
Slide 13: Appendices
Q1 2024 FINANCIAL INFORMATION Appendices Nexans 2024 © All right Reserved Page 13
Slide 14: Sales at standard metal prices: impact of foreign exchange and scope
Q1 2024 FINANCIAL INFORMATION Sales at standard metal prices impact of foreign exchange and consolidation scope Organic Scope Organic Q1 2023 FX FX Q1 2024 Growth effect growth ELECTRIFICATION 942 (5) 63 26 1,025 +6.7% → Generation & Transmission 200 (7) 65 - 257 +33.9% → Distribution 277 (1) 9 18 3
Slide 15: Nexans at a glance
Q1 2024 FINANCIAL INFORMATION Nexans at a glance A global player of the energy transition ELECTRIFICATION BUSINESSES 2023 OUR PURPOSE WE ELECTRIFY THE FUTURE €6.5BN STANDARD SALES GENERATION & TRANSMISSION DISTRIBUTION USAGE OUR VALUES DEDICATED 28,500 PIONNEERS UNITED PEOPLE OUR 41 PROMISE SCALE-UP
Slide 16: Diversified end-markets and balanced geographic footprint
Q1 2024 FINANCIAL INFORMATION Diversified end-markets 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
Slide 17: Our strategy: electrifying the future
Q1 2024 FINANCIAL INFORMATION Our strategy electrifying the future Distributed generation Distributed generation (Utility scale) (Private) +20% DEMAND FOR ELECTRICITY Offshore WORLDWIDE BY 2030 Onshore wind wind Residential Datacenters ~80% OF THE ADDITIONAL Solar Infra- GENERATION CAPACITY TO struc
Slide 18: The urgency of Electrification
Q1 2024 FINANCIAL INFORMATION 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
Slide 19: Nexans actively engaging with investors: 2024 agenda
Q1 2024 FINANCIAL INFORMATION Nexans actively engaging with investors 2024 agenda MAY 14TH MAY 23RD MAY 28TH JULY 24TH SEPTEMBER 4TH NOVEMBER 13TH ODDO BHF Berenberg European Société Générale Nice H1 Earnings Jefferies Capital Markets Day, Sustainability Conference, conference, Nice Industrial confe
Slide 20: Glossary
Q1 2024 FINANCIAL INFORMATION Glossary 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 growt