20 2020 20 An Annual al Shareholders’ Meeting Paris, s, May 13, 2020
Age genda nda 1 Nexans ans managing aging the e Covid id-19 situati ation on 2019 High ghligh ights ts 2 Main Achievement ievements 3 Full-Yea ear r Finan ancials als 4 Q1 2020 Sales 5 Them emat atic presen entat tation on : L Leading ing the e energ ergy y transiti sition on 6 Appoi pointment ments, Compen pensati ation on and d Corporate porate Govern rnan ance e Commi mitt ttee 7 Renewal ewal and d appoi ointmen tment t of m members bers of t the e Board of D Direc ecto tors rs Auditors’ reports 8 Presen entatio tation of t the e resoluti lution ons 9 2020 Annual Shareholders' Meeting 2 I
Leveraging on more than a century of experience, this is Nexans living History 2020 Annual Shareholders' Meeting 3 I
MANAGING THE COVID-19 SITUATION 01 Christopher GUÉRIN CEO
Main Highlights Crisis Management under unprecedented Outbreak Financials ials | 2020 Guidance suspended | Proposed dividend of 0.40 euro per share for the 2019 financial Covid id-19 9 : Nexans ns Crisis isis Nerv rve Cent nter er year withdrawn | Premium of 750 euros per month for frontline workers in certain The Executive committee of Nexans and all the company turned into crisis mode since European plants mid-February. To set a mitigation plan, we have leveraged on the daily monitoring done | | Management of the group has cut its pay for social cohesion with our Chinese team since the January 15 th . Safe fety & Health 1 2 3 | 26 employees tested positive out of total 26,000 Supply ly chain in & operation tion Workfor force ce protection ction Custom tomer engage gement ment | 1 Million masks and gloves sent to our units stabi bili lization zation | 300,000 masks and gloves given to local hospitals | 50 to 100 actions per units to protect our teams 4 5 | | None of 900 Chinese employees have been contaminated Financial cial stress ss test st, Extern rnal al stakehold olders rs & liquid idity ity & financial cial hardwi wire re flows ws with th Board d modeli lization zation of Directo ctors rs Opera rations ns | 90% of units running from 50 to 90% load in full adequation with customer demand | No raw materials shortage or supply chain disruption | Agreement with unions in all countries | | No line disruption due to Covid-19 | | Nexans in China load utilization ratio 90% end of April 2020 Annual Shareholders' Meeting 5 I
Nexans teams' commitment to business continuity and supporting communities SOLIDARITY 6 I 2020 Annual Shareholders’ Meeting
Nexans teams' commitment to business continuity and supporting communities PRODUCTION 7 I 2020 Annual Shareholders’ Meeting
Nexans teams' commitment to business continuity and supporting communities DECONTAINMENT PREMISES FULLY READY TO WELCOME THE TEAMS 8 I 2020 Annual Shareholders’ Meeting
02 01 02 03 04 05 06 HIGHLIGHTS Christopher GUÉRIN CEO
Nexans ans in 20 2019 19 – Res estored tored Trust st A n new w & co compel pelli ling g Industr dustrial al Ambiti bition on 2019-21 21 1 A m move to Energy rgy Transiti sition on and d Renewable ewables 2 with th tangible gible achiev evement ements Record backlog (*) , long-term contract signed with Ørsted A n new w Operating erating Model el focused ed on Cash Generati eration on 3 supported by SHIFT proprietary method A ch chang ange e of cu culture ure and d minds dset et with united ted teams ms 4 determined termined to build ld the e New Nexans Unpr prec eced edent ented ed effort rts over the e last t 18 m month ths s to reinforc orce e our 5 Funda ndame mentals tals while le managing ging risks s effecti tive vely 6 Nexans ans committ tted ed to be Carb rbon on Neutral ral by 2030 (*) Adjusted subsea backlog of € 1.8 Bn at December 2019 including contracts secured and not yet enforced 2020 Annual Shareholders' Meeting 10 I
Financial Performance: Double Digit EBITDA Growth across all Businesses BUILDING DING & INDU DUST STRY Y TELECOM COM HIGH H TERRIT RITORIES ORIES & SOLUTI TIONS ONS & DATA VOLTAGE AGE & PROJECT ECTS Sound momentum both in Improved profitability in Upturn for Special Telecom Solid performance in Europe and South North America and China and LAN business Subsea and recovery America underway in Land EBITDA at 105 M€ (+23% (*) ) EBITDA at 52 M€ (+16% (*) ) EBITDA at 155 M€ (+27% (*) ) EBITDA at 103 M€ (+46% (*) ) versus 120 M€ in 2018 versus 86 M€ in 2018 versus 44 M€ in 2018 versus 68 M€ in 2018 2020 Annual Shareholders' Meeting 11 I (*) At comparable data, excluding IFRS 16 impact in 2019
20 2019 19 Key y Milesto lestones nes Rea eache ched New Nexans ans Pla lan on Track ck EBITDA ROCE** FREE CA CASH FLOW 413 M€ in 2019 11.1% in 2019 +25 M€ in 2019 (*) 411 413 12.5% 54 375 (*) 11.1% 11.1% (*) 25 325 9.0% (32) (83) 2016 2017 2018 2019 2016 2017 2018 2019 2016 2017 2018 2019 (*) Including IFRS 16 impact of 29 M€ in EBITDA and FCF, -0,5% on ROCE (**) 12 months Operating Margin on end of period Capital Employed, excluding antitrust provision 2020 Annual Shareholders' Meeting 12 I
NORDL DLINK INK Project: ject: A Ma Major or Step in the Energy gy Transition nsition Nordli link nk is is now pr providi iding g Green en Energy for mil illi lions s of house seholds holds NordLink in a nutshell in in G Germany any and Norway ay • Client: Statnett, TenneT and the German promotional bank KfW • Facility: Halden, Norway • Contract value for Nexans: 500 M€ Nexans ns has succes essf sfully ully manuf ufac actur ured d and install alled ed the interc rconne onnection ion o between n Germany any and Norway ay to exchange ange green n energie ies s (solar ar/wind ind and hydro dropow power) r) Nexans ns designed, gned, manufac acture ured d and installed alled between n 2015 and 2019 six o 525 kV mass-im impr pregnat gnated ed (MI) high h voltage ge direct ct curre rent nt (HVDC) interc rconnec onnector or cable les s with a to total al length h of 735 km Proj ojec ect comple leted d on-tim ime, e, including uding the final l test which h was ahead d of o schedul dule e August ust 2019 Skage gerr rrak ak laid 6 cables s on the seabed d and 4 in-lin line joint nts s o 2020 Annual Shareholders' Meeting 13 I
High Voltage & Projects > €15 Bn € (** ) total project Building a Resilient Business Portfolio – 1,8 Bn € Backlog pipeline Backlog (*) of 1,8 Bn€ and above 90% load ratio for 2020-2021 Preparing for next deals to come, with robust pipeline ahead A selection future subsea interconnection projects Nexans subsea projects under execution 2019 2020 2021 o NordLink o North Sea Link o North Sea Link o North Sea Link o Mindanao Vizayas o Dolwin 6 o Mindanao Vizayas o Mallorca o Mallorca Menorca Menorca o Lavrion Syros o Lavrion Syros o Hornsea 2 o Fensforden o Dolwin 6 o East Anglia 01 o Balsfjord o Hornsea 2 90% 90% 60% 90% 0% 30% 60% 0% 30% 60% 0% 30% Our capacity / load ratio on Subsea cables o Seagreen o Seagreen New Subsea capacity o Ørsted in Charleston US Plant conversion (*) Adjusted subsea backlog including contracts secured and not yet enforced (**) Subsea/land interconnectors & offshore wind contracts to be attributed by 2024 2020 Annual Shareholders' Meeting 14 I
03 MAIN ACHIEVEMENTS Christopher GUÉRIN CEO
Cost Reduction Plan Restructuring on Track, Leaner Organization in Place BY 2021 WE WILL ACHIEVE 210M€ of Cost savings Cost reduction financial In parallel we will reorganize the Group in a leaner way, re-engineer our Savings 2019 Capex policy, and resize Headquarters. Restructuring implementation in Progress vs. 2019 ambition Europe started in September Fixed costs reduction & reorganization (120 M€) 2019. o LAND HV: Hanover plant closure We reached 75M€ cost reduction A1- Restructuring 0% on-going project o Complete resizing of the organization by focusing on core Business Groups 210 In Million Euros o A leaner and cost effective organization, A2- Indirect Cost 0% rationalization of Top management layers reduction Indire rect ct spend d reductio ction ( 30 M€) To be o All pockets of indirect spend have been 135 achieved by rethought and reduced end-2021 A3- Manufacturing & 0% OWC performance Productivity ctivity ( 60 M€) & Capex Re-engin gineeri ring o Margin improvement through cost reallocation, manufacturing variances improvement, redesign to cost and employee productivity A4- Capex 75 2019 Actual 0% reengineering EBITDA Growth 2020 Annual Shareholders' Meeting 16 I
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