WINDS OF CHANGE - 17 FEBRUARY 2021 - Nexans
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WINDS OF CHANGE 17 FEBRUARY 2021
01 02 03 04 05
INTRODUCTION WHY CHANGE? WHAT TO CHANGE? HOW TO CHANGE? NEW FINANCIAL TRAJECTORY
SAFE HARBOUR
NB: Any discrepancies are due local content requirements; operating profit and financial might occur in particular in the industry which has led our and for imposing changes to – The inherent risks associated Without having major
to rounding. position; context of further waves of the customers to revisit their order the agreed delivery schedules with major capital projects, operational impacts, the two
– Geopolitical and political
coronavirus pandemic; books for the coming months for contracted projects in the particularly the risk of following uncertainties may
This presentation contains instability, particularly in certain – The increase in credit risk
and years; context of the coronavirus completion delays and the risks have an impact on the financial
forward-looking statements countries, cities or regions such in certain countries (including – In the current context of
pandemic. of delays to win projects to fill statements:
which are subject to various as Qatar, Libya, Lebanon, Iraq, Brazil, Morocco and Turkey) in marked increase in non- – The fact i) that automotive
the new capacities. These risks
expected or unexpected risks the Persian/Arabian Gulf, Hong the context of the coronavirus ferrous metal prices, should sales may continue to be – The risk of the award or entry – Sudden changes in metal
notably concern the construction
and uncertainties that could Kong, Ivory Coast and Nigeria; pandemic; this increase trend continues adversely affected in the context into force of subsea and land prices that may affect customers’
of a new subsea cable laying
have a material impact on the it might have on impact of the of the coronavirus pandemic cable contracts being delayed buying habits in the short term;
– The instability of banking – Political, social and economic ship, the transformation of
Company’s future performance. non-ferrous market which could on a global basis with issues in or advanced, which could
system in Lebanon and uncertainty in South America, the Charleston plant in North – The impact of foreign
potentially lead to rarefaction of components supplies and slower interfere with schedules in a
Readers are also invited to visit uncertainties on the Lebanese such as in Brazil, Venezuela and America to produce subsea high exchange fluctuations on the
non-ferrous metal offers; recovery of the cars demand, given year;
the Group’s website where pound; Bolivia, which is i) affecting the voltage cables, two projects that translation of the financial
as well as that ii) the progress
they can view and download building market as well as major – The sustainability of growth – Inherent risks related to i) will be instrumental in ensuring statements of the Group’s
– The impact that the of electrical propulsion solutions
the 2020 annual results press infrastructure projects in the rates of the fiber and copper carrying out major turnkey that we meet our objectives; subsidiaries located outside the
coronavirus pandemic and the will penetrate markets slower
release as well as the 2020 region (such as the Maracaibo structured cabling (LAN) market projects for high-voltage cables, euro zone.
adoption by State authorities, than predicted; – The challenges created by
financial statements and project in Venezuela), ii) and the Group’s capacity to which will be exacerbated
in many countries around the the coronavirus pandemic Scenarios considered in the
Nexans Universal Registration creating exchange rate volatility seize opportunities relating to – Fluctuating oil and gas prices, in the coming years as this
world, of national restrictive (with subsequent measures current presentation will be
Document, which includes a and iii) increasing the risks of the move to higher performing and the downturn in the Oil & business becomes increasingly
measures (including prolonged taken by national States such further analyzed prior to
description of the Group’s risk customer default; categories in this market; Gas sector which have lead concentrated and centered on
measures to control the as country lockdowns or travel deciding their implementation
factors. Oil & Gas sector customers to a small number of large-scale
pandemic such as travel bans, – A marked drop in non-ferrous – The speed of deployment bans) for the performance of and projects resulting from those
revise their exploration and projects, ii) the high capacity
In addition to the risk factors curfews and country lockdowns) metal prices resulting in the of “ftth” (“fiber to the home”) projects in countries like the studies will be submitted to
production capex programs. utilization rates of the plants
described in Section 3.1 of the in particular in the context of impairment of Core exposure solutions in Europe and North United States (e.g. to meet relevant legal bodies including
The considerable uncertainty involved, iii) the projects’
2020 Universal Registration further waves of the pandemic (non-ferrous metal owned by West Africa and the Group’s the defined manufacturing to employees’ representative
about the implementation geographic location and the
Document, the uncertainties for in countries around the world Nexans and integral part of capacity to seize opportunities schedule in Charleston) as well bodies if applicable and when
of these customers’ capex political, social and economic
2021 mainly include: together with the appearance the production chain), not relating to the development of as for turnkey projects such as needed.
programs may also affect the environments in the countries
of variants to the coronavirus having an impact on cash or this market; Seagreen (United Kingdom) and
– The impact of protectionist Group’s ability to plan for future concerned (such as Philippines
(including in UK, Brazil and operating margin, but impacting Visayas-Mindanao (Philippines)
trade policies globally, as well – The impact of the coronavirus means of producing cables and for Visayas-Mindanao project);
South Africa) could have on net income. Such marked drop and onshore projects in Europe.
as growing pressure to increase pandemic on the aeronautic umbilicals for these customers,
our Group’s business prospects, in non-ferrous metal prices
INVESTOR RELATIONS:
Contact: Aurélia Baudey-Vignaud
Telephone: +33 1 78 15 03 94
Email: aurelia.baudey-vignaud@nexans.com
002 @2021 Nexans CMD presentation
01 02 03 04 05
INTRODUCTION WHY CHANGE? WHAT TO CHANGE? HOW TO CHANGE? NEW FINANCIAL TRAJECTORY
INTRODUCTION
FOCUS ON THE
WORLD’S
ELECTRIFICATION
003 @2021 Nexans CMD presentation
01 02 03 04 05
INTRODUCTION WHY CHANGE? WHAT TO CHANGE? HOW TO CHANGE? NEW FINANCIAL TRAJECTORY
1879
120
YEARS’
2001
NEX ANS
IPO
2018
NEW
NEX ANS
EDISON PATENTED THE
FIRST COM MERCIALLY INDUSTRIAL COMPANY
SUCCESSFUL BULB
Nexans is at the
heart of electricity
and pioneer of its
deployment
1870 1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050
004 @2021 Nexans CMD presentation
01 02 03 04 05
INTRODUCTION WHY CHANGE? WHAT TO CHANGE? HOW TO CHANGE? NEW FINANCIAL TRAJECTORY
ELECTRIFICATION
IS IN OUR
DNA
It is at the heart of our existence.
It is the reason why we give the
best of ourselves to build a better
future for the world.
ELECTRIFY
THE
0 1990 2000 2010 2020 2030 2040 2050 FUTURE
005 @2021 Nexans CMD presentation
01 02 03 04 05
INTRODUCTION WHY CHANGE? WHAT TO CHANGE? HOW TO CHANGE? NEW FINANCIAL TRAJECTORY
ELECTRIFY
OUR
PURPOSE
THE
FUTURE Our past, present
and future converge
to electrification
006 @2021 Nexans CMD presentation
01 02 03 04 05
INTRODUCTION WHY CHANGE? WHAT TO CHANGE? HOW TO CHANGE? NEW FINANCIAL TRAJECTORY
OUR WE ARE PIONEERS
VALUES OF ENERGY TRANSITION.
WE ARE DEDICATED
TO DELIVERING TO THE HIGHEST
STANDARDS OF PERFORMANCE.
WE ARE UNITED
TO ACHIEVE OUR AMBITIOUS
GOAL: ELECTRIFY THE FUTURE.
007 @2021 Nexans CMD presentation
01 02 03 04 05
INTRODUCTION WHY CHANGE? WHAT TO CHANGE? HOW TO CHANGE? NEW FINANCIAL TRAJECTORY
OUR
A
COMMITMENT
CARBON
NEUTRAL
COMPANY
BY 2030
008 @2021 Nexans CMD presentation01 02 03 04 05
INTRODUCTION WHY CHANGE? WHAT TO CHANGE? HOW TO CHANGE? NEW FINANCIAL TRAJECTORY
SIMPLIFY
OUR
STRATEGY
OUR BUSINESS
TO AMPLIFY
OUR IMPACT
009 @2021 Nexans CMD presentation01 02 03 04 05
INTRODUCTION WHY CHANGE? WHAT TO CHANGE? HOW TO CHANGE? NEW FINANCIAL TRAJECTORY
OUR
SOLUTIONS FROM
GENERATION OF ENERGY,
TO TRANSMISSION OF ENERGY,
TO DISTRIBUTION OF ENERGY,
TO USAGE OF ENERGY
010 @2021 Nexans CMD presentation01 02 03 04 05
INTRODUCTION WHY CHANGE? WHAT TO CHANGE? HOW TO CHANGE? NEW FINANCIAL TRAJECTORY
OUR
PURPOSE
ELECTRIFY THE FUTURE OUR
OUR PATH
VALUES OUR VALUE GROWTH
WE ARE PIONEERS OF
STRATEGY BY FOCUSING ON
ELECTRIFICATION
ENERGY TRANSITION. SIMPLIFY
WE ARE DEDICATED TO OUR BUSINESS OUR
DELIVERING TO THE HIGHEST TO AMPLIFY
STANDARDS OF PERFORMANCE. OUR IMPACT COMMITMENT
WE ARE UNITED TO ACHIEVE A CARBON NEUTRAL
OUR
OUR AMBITIOUS GOAL: COMPANY BY 2030
ELECTRIFY THE FUTURE. SOLUTIONS
FROM GENERATION OF ENERGY,
TO TRANSFORMATION OF ENERGY,
TO DISTRIBUTION OF ENERGY,
TO USAGE OF ENERGY
011 @2021 Nexans CMD presentation01 02 03 04 05
INTRODUCTION WHY CHANGE? WHAT TO CHANGE? HOW TO CHANGE? NEW FINANCIAL TRAJECTORY
WHAT IS Distributed generation
(Utility scale)
Distributed generation
(Private)
ELECTRIFICATION?
Offshore wind
Residential
Onshore wind
Datacentres
Solar Infrastructures
Hydro Industrial
Centralised Transmission Distribution Usages
generation subsea and land Commercial
Nuclear
Mobility
Fossil
GENERATION AND TRANSMISSION DISTRIBUTION USAGES
012 @2021 Nexans CMD presentation01 02 03 04 05
INTRODUCTION WHY CHANGE? WHAT TO CHANGE? HOW TO CHANGE? NEW FINANCIAL TRAJECTORY
RE
E D TU
Y RN
A LICENCE M
P LO
ENVIRONMENT FINANCIALS
O
E
MANAGEMENT
TO OPERATE
N
N
CA
BO
CIRCULAR 1 1 CUSTOMERS
AR
E
ECONOMY
PI
3
TA
NC
EC
2 2
N T
L EM
E
RETURN O
CLIMATE
M INNOVATION
O
ENVIRON
3 3
NO
PLOYED
MIC
LOW CARBON
OFFER 4
E
3 4 COMPETI-
TIVENESS
EN
GAGEMEN
T
COMMITTED
TO PERFORM 1
2 3
4
INCLUSION
AND DIVERSITY SAFETY
SUPPLIER
LEARNING
RE ENGAGEMENT
D
TU G E
RN A
ON EN G
COMPETENCE
013 @2021 Nexans CMD presentation01 02 03 04 05
INTRODUCTION WHY CHANGE? WHAT TO CHANGE? HOW TO CHANGE? NEW FINANCIAL TRAJECTORY
2020 2024
WINDS
OF
CHANGE FROM: TO:
Nexans is historically a 6 Billion Euro generalist Nexans will simplify to amplify its role
covering 8 macro sectors offering mainly components as Electrification Pure Player
A €6bn COMPANY A COMPANY
SUPPORTED BY SUPPORTED BY
8 MACRO
SECTORS
Buildings Territories Industry Harnesses
4 MACRO
SECTORS
Generation & Transmission Distribution Usage
34 SUBSECTORS 12 SUBSECTORS
Telecom Subsea Inland Metallurgy
Network Grid Grid
Sales: Sales:
2020
2024
OTHERS 45% 55% ELECTRIFICATION €6bn 100% ELECTRIFICATION
014 @2021 Nexans CMD presentation01 02 03 04 05
INTRODUCTION WHY CHANGE? WHAT TO CHANGE? HOW TO CHANGE? NEW FINANCIAL TRAJECTORY
TIME TO
MAKE
CHOICES 02 04
WHY HOW
CHANGE? TO CHANGE?
An increasingly Transform
electric world and innovate
03 05
WHAT NEW FINANCIAL
TO CHANGE? TRAJECTORY
Simplify our business. Scale-up to
Amplify our impact. step-up performance
015 @2021 Nexans CMD presentation01 02 03 04 05
INTRODUCTION WHY CHANGE? WHAT TO CHANGE? HOW TO CHANGE? NEW FINANCIAL TRAJECTORY
WHY
CHANGE?
AN INCREASINGLY
ELECTRIC WORLD
016 @2021 Nexans CMD presentation01 02 03 04 05
INTRODUCTION WHY CHANGE? WHAT TO CHANGE? HOW TO CHANGE? NEW FINANCIAL TRAJECTORY
2021 TO 2050 THE WORLD WILL BECOME ELECTRIC AND CARBON NEUTRAL.
ONLY A DECADE TO MAKE THE BIG SHIFT
POPULATION
GROWTH
ELECTRICITY
DEMAND
RENEWABLE
ENERGIES $2 TRILLION
BIDEN PLAN
11,763
9.7
4.4
$2tn to achieve 100% clean energy
& net-zero emissions at latest 2050
8.5
3.8
7.8
3.5
$1 TRILLION
7,037
EUROPE GREEN DEAL
4.1
$1tn investments over next 10 years
1.4
2,707
843
CARBON-NEUTRAL
CHINA GREEN DEAL
2000
2019
2030
2040
1975
2020
2030
2050
1975
2019
2030
2040
China to be carbon-neutral state by 2060*
WORLD POPULATION ELECTRICITY DEMAND RENEWABLE CAPACITY *On September 22 at the UN headquarters, President Xi Jinping announced a plan to
(BILLION PEOPLE) (MWH/CAPITA) (GW) make China a carbon-neutral state by 2060 and to reach an emissions peak by 2030
017 – Data source: Roland Berger
@2021 Nexans CMD presentation01 02 03 04 05
INTRODUCTION WHY CHANGE? WHAT TO CHANGE? HOW TO CHANGE? NEW FINANCIAL TRAJECTORY
ELECTRIFICATION RISKS RISE FASTER THAN SOLUTIONS. ACTION IS NEEDED
MAJOR FIGHT GLOBAL WARMING & BIODIVERSITY ATTRITION AVOID BLACKOUT IN BIG CITIES GUARANTEE END USERS ELECTRICAL SAFETY
UPCOMING RISKS
NEW NEEDS
GREEN DEAL NEEDED GRID MODERNISATION NEEDED ELECTRICAL SAFETY NEEDED
NEW STAKES
€7 TRILLION 30 YEARS 1 FIRE EVERY 2 MINUTES
Investments in energy transition by 2030 Life time of a cable caused by an electrical origin in the EU
X4.3 +40 YEARS UP TO 80% OF FIRES
Renewable capacity between 2019 and 2040 Average age of grids in Europe & North America. are triggered by counterfeit cables in emerging area
IMPACTING THE GENERATION
DISTRIBUTION USAGES
ELECTRIFICATION AND TRANSMISSION
018 – Data source: Roland Berger
@2021 Nexans CMD presentation01 02 03 04 05
INTRODUCTION WHY CHANGE? WHAT TO CHANGE? HOW TO CHANGE? NEW FINANCIAL TRAJECTORY
NEW CHALLENGES LEADING
TO NEW CLIENT NEEDS
ted
Client needs are changing to face CLIENTS DEMAND
ca
SOLUTIONS
isti
these challenges, and the cable
SY
2000 2010 2020
ph
NOT (ONLY)
ST
So
industry needs to shift from products
EM
COMPONENTS
Early Mid Early Mid Early to sub-systems & services
MA
OP
:
AS
ds
NA
ee
ER
SE
GE
rn
AT
TM
me
ME
IO
CA
AN
sto
NS
NT
BL
Cu
AG
ES
EM
ER
EN
VIC
CA
T
ES
BL
ES
sic
Ba
Automotive Electrical Cable
OEMs Equipment Manufacturers (World value including
accessories and assembly)
OEMs
€220bn €120bn
Telecom
OEMs
Consumer
Electronics
OEMs
019 – Data source: Nexans internal analysis
@2021 Nexans CMD presentation01 02 03 04 05
INTRODUCTION WHY CHANGE? WHAT TO CHANGE? HOW TO CHANGE? NEW FINANCIAL TRAJECTORY
REMAINING A GENERALIST
WILL BE A WEAKNESS NOT A STRENGTH
EVOLUTION OF MARKET DEMAND… …CANNOT BE MATCHED BY A GENERALIST
• Differentiated products • Inability to lead innovation on all segments
• Combination of sub-systems, services and software • Product portfolio too large to focus on system development
• Sector specific skills • Larger but shallower skillset
• Long-standing partnerships • Spread customer base
• Investments focused on Innovation and scale • Fragmented investments
020 @2021 Nexans CMD presentation01 02 03 04 05
INTRODUCTION WHY CHANGE? WHAT TO CHANGE? HOW TO CHANGE? NEW FINANCIAL TRAJECTORY
REINVENT OUR MODEL
TO TRANSFORM CUSTOMER EXPERIENCE
SWITCH FOCUS FROM COMPLEXITY
FROM: VOLUME GROWTH FOCUS MANAGEMENT TO CLIENT INTIMACY TO: VALUE SCALE FOCUS
Exhaustive coverage of markets 01. Deep understanding
of clients markets
Global expertise
of one ecosystem
Do-it-all cable range 02. Build up high added
value solutions
Cable + Sub-systems
& services
Invest to scale
Diluted maintenance &
growth investments 03. up and innovate
Focused value
scale investments
021 @2021 Nexans CMD presentation01 02 03 04 05
INTRODUCTION WHY CHANGE? WHAT TO CHANGE? HOW TO CHANGE? NEW FINANCIAL TRAJECTORY
ELECTRIFICATION PURE PLAYER
ENGINEERING A NEW MODEL
By positioning ourselves as an electrification This unique positioning enables us to scale up
pure player, Nexans will combine market focus, offers and specialize assets on an ecosystem that
scale effect and a specialist customer intimacy will represent more than 65% of the total cable
REGIONAL /
with our global client reach, typical of a major
cable generalist.
business in 2030, while providing an end-to-end
management of the electrification challenge.
GLOBAL LOCAL
>3 regions 1 or 2 regions
AMPLIFY SIMPLIFY FOCUS ELECTRIFICATION
Electrification Portfolio Markets Coverage Resources PURE PLAYER
– M&A – Product range – CAPEX
CABLE
– Innovation – Industrial assets – Management
GENERALIST
– Selective organic growth – R&D
SEGMENT
SPECIALIST
022 – Data source: Nexans internal analysis
@2021 Nexans CMD presentation01 02 03 04 05
INTRODUCTION WHY CHANGE? WHAT TO CHANGE? HOW TO CHANGE? NEW FINANCIAL TRAJECTORY
ELECTRIFICATION PURE PLAYER
ENGINEERING A NEW MODEL
#01 #02 #03
A HUGE ELECTRICITY A NEED FOR SYSTEMS A NEED FOR
BOOM TO COME AND SOLUTIONS GLOBAL REACH ELECTRIFICATION
PURE PLAYER
REQUIRING SELECTIVITY ENABLED BY AN IN A FRAGMENTED
ECOSYSTEMIC VIEW MARKET OFFER
023 @2021 Nexans CMD presentation01 02 03 04 05
INTRODUCTION WHY CHANGE? WHAT TO CHANGE? HOW TO CHANGE? NEW FINANCIAL TRAJECTORY
WHAT TO
CHANGE?
SIMPLIFY
TO AMPLIFY
024 @2021 Nexans CMD presentation01 02 03 04 05
INTRODUCTION WHY CHANGE? WHAT TO CHANGE? HOW TO CHANGE? NEW FINANCIAL TRAJECTORY
01
SIMPLIFY
OUR BUSINESS
Focus on electrification
02
AMPLIFY
OUR IMPACT
Pursue transformation
and value growth
025 @2021 Nexans CMD presentation01 02 03 04 05
INTRODUCTION WHY CHANGE? WHAT TO CHANGE? HOW TO CHANGE? NEW FINANCIAL TRAJECTORY
WHAT IS THE NEXANS METALLURGY INDUSTRIAL SERVICES & PROJECTS
WE WISH TO SIMPLIFY? 18 Automotive Automation
% Harnesses
Wind turbine Aerospace Pumps, generator
internal cabling & drives
Nexans 2020 split of sales Solar LV O&G Rolling Handling
at constant metal price ME
TA
L LU
RG
Y
cabling downstream Stock
Nuclear plant O&G Shipbuilding Medical
internal cabling Upstream
Other gen. Mining Railway Electrical
internal cabling appliances
ELECTRIFICATION
Generators Resources Transport Industry
NEXANS
Residential Cabling
& SOLUTIONS
Commercial
SALES
ELECTRIFIC
20
Industrial
2020
Y
%
USTR
ATIO
IN D
N
Offshore Infrastructure
Wind Farms TELECOM
Onshore Distribution Mobility CO
M
LE
Renewable Farms Network TE
Other Centralised Interconnections Distributed Data Centres
Generators Generators Power Cables
55
Submarine
7 Telecom
Generation Transmission Distribution Usages %
% Telecom infra.
Fibre
Data Centers
- Data Cables
NEXANS SCALING PLAYGROUND Antennas Offices
Transmission Local Systems
026 @2021 Nexans CMD presentation01 02 03 04 05
INTRODUCTION WHY CHANGE? WHAT TO CHANGE? HOW TO CHANGE? NEW FINANCIAL TRAJECTORY
3 REASONS TO SIMPLIFY OUR BUSINESS
BY FOCUSING ON ELECTRIFICATION
A tremendous organic & inorganic growth potential
#01 #02 #03
IN 2019, ELECTRIFICATION THANKS TO STRONG MEGATRENDS, ELECTRIFICATION AS A SEGMENT IS
REPRESENTED ABOUT 65% CAGR WILL BE ABOVE OTHER STILL FRAGMENTED AND OFFERS A
OF THE WORLD CABLE MARKET SEGMENTS ON THE PERIOD LARGE M&A PLAYING FIELD
Cable Market: €236bn 2019-2030 CAGR (in %) Number of manufacturers Totalling>40% of Market Share:
(in number of manufacturers)
Electrification €154bn €156bn
€99bn 4.3% 3.4% 3.6% >25
Telecom €39bn
€27bn
Industrial €40bn 4 5
(Inc. Harnesses) €28bn
Electrification Telecom Industrial Electrification Telecom Industrial
2019 2030 (Inc. harnesses) (Inc. harnesses)
027 – Data source: Nexans internal analysis
@2021 Nexans CMD presentation01 02 03 04 05
INTRODUCTION WHY CHANGE? WHAT TO CHANGE? HOW TO CHANGE? NEW FINANCIAL TRAJECTORY
01
SIMPLIFY
OUR BUSINESS
Focus on electrification
02
AMPLIFY
OUR IMPACT
Pursue transformation
and value growth
028 @2021 Nexans CMD presentation01 02 03 04 05
INTRODUCTION WHY CHANGE? WHAT TO CHANGE? HOW TO CHANGE? NEW FINANCIAL TRAJECTORY
AMPLIFY VALUE
MANAGEMENT FOCUS
GROWTH Pursue our
TRANSFORM OUR
OPERATIONAL MODEL
Pay our performance Debt
transformation
FOCUS ON programs on
Business Unit Portfolio Management 1.0 Business Unit Portfolio Management 2.0
ALL SEGMENTS
ELECTRIFICATION Cost reduction & efficiency initiatives
WHILE PUSHING SHIFT
ONE STEP FURTHER
THE FULL GROUP 2018 2019 2020 2021 2022 2023 2024
TRANSFORMATION
PROGRAM
MANAGEMENT FOCUS
TRANSFORM OUR POSITIONING
Amplify & accelerate Change playing field to grow value
our growth in value on
ELECTRIFICATION
M&A - Divestments
SEGMENTS
SCALE VALUE UP
SHIFT PRIME as an electrification
pure player
Innovation & Ecosystemic Partnerships
029 @2021 Nexans CMD presentation01 02 03 04 05
INTRODUCTION WHY CHANGE? WHAT TO CHANGE? HOW TO CHANGE? NEW FINANCIAL TRAJECTORY
AMPLIFY VALUE
MANAGEMENT FOCUS
GROWTH Pursue our
TRANSFORM OUR
OPERATIONAL MODEL
Pay our performance Debt
transformation
PURSUE OUR programs on
Business Unit Portfolio Management 1.0 Business Unit Portfolio Management 2.0
ALL SEGMENTS
TRANSFORMATION Cost reduction & efficiency initiatives
PROGRAMS ON SHIFT
ALL SEGMENTS
2018 2019 2020 2021 2022 2023 2024
MANAGEMENT FOCUS
TRANSFORM OUR POSITIONING
Amplify & accelerate Change playing field to grow value
our growth in value on
ELECTRIFICATION
M&A - Divestments
SEGMENTS
SCALE VALUE UP
SHIFT PRIME as an electrification
pure player
Innovation & Ecosystemic Partnerships
030 @2021 Nexans CMD presentation01 02 03 04 05
INTRODUCTION WHY CHANGE? WHAT TO CHANGE? HOW TO CHANGE? NEW FINANCIAL TRAJECTORY
NEXANS TRANSFORMATION MODEL 2.0
HUGE VALUE CREATION POTENTIAL ON THE EXISTING PORTFOLIO
BUSINESS PORTFOLIO ANALYSIS
– AN UPDATED PERSPECTIVE #01 BY DRIVING STRONG VALUE CHAIN MOVE
ON OUR INNOVATION DRIVERS
Our portfolio management model keeps the same spirit and principles while improving itself along side 2 axis:
– The matrix axis will display a stronger focus on cash generation trough CCR CUSTOMERS NEXANS
which represent our capability to convert EBITDA in Free Cash Flow
– A new category is introduced: Innovation Drivers – Productivity and cost efficiency improvement – Improved customer loyalty
– Increased thresholds to raise targets – Optimization of project Capex – ROCE and cash conversion improvement
– Reduction of Opex (e.g. smart inventory) (at ISO revenues)
– Guarantee of safe & reliable products – Synergies between services & hardware
Innovation Drivers
#02 BY TRANSFORMING THE REMAINING
UNITS WITHIN THE GROUP
0%
EBITDA %
Strategic Investments Profit Drivers Sales
Transformation Candidates EBITDA
Value Burners
FCF
Cash Conversion Ratio (%)
031 @2021 Nexans CMD presentation01 02 03 04 05
INTRODUCTION WHY CHANGE? WHAT TO CHANGE? HOW TO CHANGE? NEW FINANCIAL TRAJECTORY
NEXANS TRANSFORMATION MODEL 2.0
A SYSTEMIC AND UNIQUE VALUE CREATION PROCESS
Nexans is today segmented into about 30 business units They are brought through a standardized transformation
each with their own financial statements, manufacturing process which covers cost structure, business model WORK IN PROGRESS
units and client portfolios. These units are managed trough engineering and offer engineering to maximize value
COMPLETED
a portfolio approach based on financial KPI’s. creation and reach upper range financial ratios.
EXAMPLE VALUE TRANSFORM. PROFIT INNOVATION
LEVERS BURNER CANDIDATE DRIVER DRIVERS
L23-31 – Innovation, Solutions
SEQUENCE 3 L22 – Brand Prime
SHIFT Prime L21 – Superior service offer
10 Levers
L6 to 20...
L5 – Cash Conversion Pool
SEQUENCE 2 L4 – Portfolio reegineering
SHIFT Performance
20 Levers (250 pages
handbook,15 tools)
L3 – Complexity reduction
Restructuration L2 – Lean Management
SEQUENCE 1
L1 – Fixed costs reduction
032 @2021 Nexans CMD presentation01 02 03 04 05
INTRODUCTION WHY CHANGE? WHAT TO CHANGE? HOW TO CHANGE? NEW FINANCIAL TRAJECTORY
BUSINESS UNIT PORTFOLIO MANAGEMENT 2.0
OUR 2024 AMBITIONS
BUILDING BUSINESS UNITS PORTFOLIO TURNOVER EVOLUTION PER PERFORMANCE CLUSTER
2021E
Innovation Drivers
Building 2024E
EBITDA %
2021E
Strategic Investments Profit Drivers
Utilities 2024E
Transformation Candidates
2021E
High Voltage 2024E
Value Burners & Projects
Cash Conversion Ratio (%)
033 @2021 Nexans CMD presentation01 02 03 04 05
INTRODUCTION WHY CHANGE? WHAT TO CHANGE? HOW TO CHANGE? NEW FINANCIAL TRAJECTORY
AMPLIFY VALUE
MANAGEMENT FOCUS
GROWTH Pursue our
TRANSFORM OUR
OPERATIONAL MODEL
Pay our performance Debt
transformation
AMPLIFY & programs on
Business Unit Portfolio Management 1.0 Business Unit Portfolio Management 2.0
ALL SEGMENTS
ACCELERATE Cost reduction & efficiency initiatives
OUR GROWTH SHIFT
IN VALUE ON
ELECTRIFICATION 2018 2019 2020 2021 2022 2023 2024
SEGMENTS
MANAGEMENT FOCUS
TRANSFORM OUR POSITIONING
Amplify & accelerate Change playing field to grow value
our growth in value on
ELECTRIFICATION
M&A - Divestments
SEGMENTS
SCALE VALUE UP
SHIFT PRIME as an electrification
pure player
Innovation & Ecosystemic Partnerships
034 @2021 Nexans CMD presentation01 02 03 04 05
INTRODUCTION WHY CHANGE? WHAT TO CHANGE? HOW TO CHANGE? NEW FINANCIAL TRAJECTORY
FOCUSING ON
CUSTOMERS & INNOVATION
UP TO 200BPS
Gross Margin
observed on average
after 12 months
INITIAL SUPERIOR
PRIME
PERFORMANCE SERVICE VENDOR PERFORMANCE
BRAND PRIME SALES AMPLIFIERS MIX OPTIMIZATION SMART INNOVATION
Ensure higher availability, Develop Brand intimacy Enrich offers with Add incremental Replace generic offers by
reduce lead-times & through marketing accessories or services features to products to smarter ones
digital supply chain improve value
035 @2021 Nexans CMD presentation01 02 03 04 05
INTRODUCTION WHY CHANGE? WHAT TO CHANGE? HOW TO CHANGE? NEW FINANCIAL TRAJECTORY
M&A AMPLIFY OUR ELECTRIFICATION SCOPE & OFFER
Nexans articulates its M&A strategy alongside two complementary axis: BOLT-ON INNOVATION ACQUISITIONS
– Consolidation deals in the field of electrification
– Bolt-On deals enabling to enrich our value offer in the
field of electrification
TRANSFORMATIVE CONSOLIDATION ACQUISITIONS
GENERATION TRANSMISSION DISTRIBUTION USAGES
Nexans is currently screening bolt on acquisition opportunities to enhance
its offer alongside the electrification value chain alongside 3 axes:
8 NORTH
AMERICA
32 EUROPE
39 ASIA #01 #02 #03
DATA COLLECTION,
DESIGN & ENGINEERING SMART
14 SOUTH
AMERICA 37 AFRICA &
MIDDLE EAST
SERVICES MANAGEMENT &
EXPLOITATION PRODUCTS
130 Amplify the impact of SHIFT PRIME and Nexans
OPPORTUNITIES HAVE
BEEN ALREADY IDENTIFIED
& 20 SHORTLISTED innovation program through our bolt on
acquisition portfolio
036 @2021 Nexans CMD presentationYou can also read
