Value-Driven Growth Model Sets Strong Foundation for the Year
PRESS RELASE
VALUE-DRIVEN GROWTH MODEL
SETS STRONG FOUNDATION FOR THE YEAR
- First-quarter 2023 standard sales of 1,674 million euros, up +2.2% organically year-on-year and +6.5% excluding Other activities
- Distribution segment benefiting from expanding grid investments in Europe and North America and renewable energy projects more globally
- Accelerating innovation and deployment of solutions: +100% growth in Connected Objects and 40 million euros investment in Autun plant for Fire Safety Technology
- Healthy adjusted backlog1 for Generation & Transmission at 3.2 billion euros, up +32% compared to March 2022 with unique risk-reward model
- 2023 guidance confirmed underpinned by strategic focus on value-driven growth and Nexans’ transformation platform
- Step-up in Electrification Pure Player strategic roadmap:
- Exclusive negotiations to divest Telecom Systems
- Antitrust clearance obtained for Reka Cables acquisition in Finland - closing of the transaction imminent
- Revised S&P outlook from Stable to Positive, with BB+ rating confirmed
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Paris, April 26th, 2023 – Today, published its financial information for the first quarter of 2023. Commenting on the Group’s performance, Christopher Guérin, Nexans’ Chief Executive Officer, said:
“We continued our momentum from a successful 2022 and began 2023 with a strong start. Our success can be attributed to our strategic approach that combines value-driven growth with a focus on our key customers.
We are proud to announce that our recent innovations and solutions have led to exceptional development, with a growth rate of over 100% in Connected Objects in just one quarter. Furthermore, we are investing 40 million euros in our Autun plant in France over the next three years to accelerate the deployment of our Fire Safety technology.
We are continuing to pursue our strategy of inorganic regional growth in the Electrification market, with the Reka Cables acquisition in Finland to be finalized imminently. We actively work towards a safer and more sustainable world by applying our E3 performance model of economics, engagement, and the environment to all of our business decisions.
We are confident that we will achieve our 2023 financial objectives thanks to a resilient electrification tailwind and our proven ability to execute on our commitments, even in uncertain times.”
CONSOLIDATED SALES BY SEGMENT
| (in millions of euros) At standard metal prices Copper reference at €5,000/t | Q1 20222 | Q1 2023 | Organic growth Q1 2023 vs. Q1 2022 | Sequential growth Q1 2023 vs. Q4 2022 | |
| Electrification | 927 | 942 | -0.1% | -1.3% | |
| Generation & Transmission | 246 | 200 | -10.7% | -25.8% | |
| Distribution | 242 | 277 | +7.1% | +10.5% | |
| Usages | 439 | 465 | +1.5% | +6.9% | |
| Non-electrification (Industry & Solutions) | 367 | 449 | +22.3% | +14.3% | |
| Total Group (excl. Other activities) | 1,294 | 1,391 | +6.5% | +3.2% | |
| Other activities | 329 | 282 | -14.4% | -13.2% | |
| Total Group | 1,623 | 1,674 | +2.2% | +0.0% |
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About Nexans
For over a century, Nexans has played a crucial role in the electrification of the planet and is committed to electrifying the future. With around 28,000 people in 42 countries, the Group is leading the charge to the new world of electrification: safe, sustainable, renewable, decarbonized and accessible to everyone. In 2022, Nexans generated 6.7 billion euros in standard sales. The Group is a leader in the design and manufacturing of cable systems and services across four main business areas: Generation & Transmission, Distribution, Usages, and Industry & Solutions. Nexans was the first company in its industry to create a Foundation supporting sustainable initiatives bringing access to energy to disadvantaged communities worldwide. The Group pledged to contribute to carbon neutrality by 2030.
Nexans. Electrify the future.
Nexans is listed on Euronext Paris, compartment A.
For more information, please visit
Contacts:
| Investor relations Elodie Robbe-Mouillot | Communication Emmanuel Guinot |
NB: Any discrepancies are due to rounding
This press release 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 invited to visit the Group’s website where they can view and download the 2022 Universal Registration Document, which includes a description of the Group’s risk factors.
1 Pro forma adjusted backlog, including Special Telecom.
2 Pro forma sales at standard non-ferrous metal prices. The detailed impact of changes is set out in the appendix to this press release.
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