Nexans: Full-year 2021 earnings

• Strong 2021 execution across all businesses drives outstanding EBITDA, Free Cash Flow and ROCE performance
• High quality 2.2 billion euros adjusted Subsea High Voltage backlog reflecting unique risk-reward model
• As per new strategic plan, investment in Halden plant capacity extension initiated
• Upturn in net income at 164 million euros supported by copper price increase
• Proposed dividend of 1.2 euro per share, progressing from 0.7 euro in 2020
• On track on our ESG Commitments, and stepping up thanks to the appointment of Marc Grynberg as “Climate Director”
• Successful turnaround as Nexans closes the first chapter of the “New Nexans” Transformation and powering ahead to electrification as the Group initiates the second chapter, “Winds of Change”
• Standard[1] sales up +8.3% organic growth[2] year-on-year at 6,054 million euros in 2021, with a sound fourth quarter up +8.5%, supported by strong demand, positive mix/price management and High Voltage & Projects year-end ramp up in line with project phasing
• Current sales at 7,374 million euros in 2021, up +26% vs. 2020, in light of copper price inflation
• EBITDA of 463 million euros and EBITDA margin at 7.6%, up +157 bps against 2020, thanks to selective growth, effective handling of raw material supply and cost inflation, structural complexity and cost reductions powered by “New Nexans” Transformation plan
• Outperformance in ROCE[3] at 16.4% end of December 2021 despite strategic capex
• Outstanding Free Cash Flow[4] of 179 million euros, exceeding expectations and reflecting Group’s SHIFT transformation, strict working capital management and cash generation mindset
• Solid balance sheet with a new record low Net Debt at 74 million euros, implying a leverage ratio of 0.2x EBITDA and supporting Nexans 2022-2024 Strategic Ambition
• High quality €2.2bn adjusted Subsea High Voltage backlog[5] reflecting unique risk-reward model, solid track record and prime assets, which best position the Group on projects such as Empire Winds, Thyrrhenian Links, Moray West and South Fork
• State-of-the-art Nexans Aurora vessel and Charleston US plant strategic High Voltage & Projects capex fully operational in Q4 2021
• 2022 Guidance announced: EBITDA to 500-540 million euros and Normalized Free Cash Flow 150 to 200 million euros

Today, Nexans published its financial statements for the year ending 31st December, 2021, as approved by the Board of Directors at its meeting on 15th February, 2022 chaired by Jean Mouton. Commenting on the Group’s performance, Christopher Guérin, Nexans’ Chief Executive Officer, said: “2021 earnings illustrate our perfect alignment with our 10-year industrial view, named “New Nexans”, presented in November 2018 and for which we have closed the first chapter. We are now ready for the second chapter, to turn the Company into a full-fledged Electrification Pure Player. We are confident and we are determined. Our “Winds of Change” 2022-2024 strategy is well defined and our roadmap perfectly laid out. We will pursue our ambition and deploy our action plan step by step, as rigorously and successfully as we have over the last three years. Nexans stands on solid grounds, we will grasp the energy transition momentum and unlock the Company’s full potential.”

Footnotes

[1] To neutralize the effect of fluctuations in non-ferrous metal prices and therefore measure the underlying sales trend, Nexans also calculates its sales using standard prices for copper (standard price at 5,000 €/t) and aluminum (standard price at 1,200 €/t).
[2] The 2020 sales figure used for like-for-like comparisons corresponds to sales at standard non-ferrous metal prices, adjusted for the effects of exchange rates and changes in the scope of consolidation. Exchange rates and changes in the scope of consolidation impacted sales at standard non-ferrous metal prices by €38m and -€158m respectively.
[3] 12 months operating margin on end of period capital employed excluding antitrust provision.
[4] Excluding M&A and equity operations.
[5] Adjusted Subsea backlog including contracts secured not yet enforced.