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		<raw><![CDATA[CONTENTSOVERVIEW01 02 04 05 10 12 14 Nexans at a glance Message from the Chairman The Executive Committee Corporate governance Key figures The Nexans share Shareholders’ informationSTRATEGY: GOALS FOR 200916 19 Our goals for 2009 2007 results by businessOUR ACTIVITIES IN 200722 24 25 26 Europe North America Asia-Pacific Rest of the WorldOUR IMPROVEMENTS IN 200728 30 32 33 35 Meeting the needs of our customers Helping our employees develop their potential Improving our efficiency Respecting the environment Nexans, sponsor of the Palace of VersaillesFINANCIAL AND LEGAL INFORMATION38 78 Management report Consolidated financial statements161 Parent company financial statements 182 Legal informationNB : This registration document contains Nexans’ annual financial report for fiscal year 2007This registration document was filed with the “Autorité des Marchés Financiers” (French stock market authorities) on March 5, 2008, in accordance with article 212-13 of the General regulations of the AMF. It may be used in connection with a financial transaction only if supplemented by a transaction memorandum which has been reviewed by the AMF.* *Free translation from the original French version of the AMF certificate.This document is a free translation from French into English and has no other value than an informative one. Should there be any difference between the French and English version, only the text in French language shall be deemed authentic and considered as expressing the exact information published by Nexan]]></raw>
		<basicChars><![CDATA[CONTENTSOVERVIEW01 02 04 05 10 12 14 Nexans at a glance Message from the Chairman The Executive Committee Corporate governance Key figures The Nexans share Shareholders’ informationSTRATEGY: GOALS FOR 200916 19 Our goals for 2009 2007 results by businessOUR ACTIVITIES IN 200722 24 25 26 Europe North America Asia-Pacific Rest of the WorldOUR IMPROVEMENTS IN 200728 30 32 33 35 Meeting the needs of our customers Helping our employees develop their potential Improving our efficiency Respecting the environment Nexans, sponsor of the Palace of VersaillesFINANCIAL AND LEGAL INFORMATION38 78 Management report Consolidated financial statements161 Parent company financial statements 182 Legal informationNB : This registration document contains Nexans’ annual financial report for fiscal year 2007This registration document was filed with the “Autorité des Marchés Financiers” (French stock market authorities) on March 5, 2008, in accordance with article 212-13 of the General regulations of the AMF. It may be used in connection with a financial transaction only if supplemented by a transaction memorandum which has been reviewed by the AMF.* *Free translation from the original French version of the AMF certificate.This document is a free translation from French into English and has no other value than an informative one. Should there be any difference between the French and English version, only the text in French language shall be deemed authentic and considered as expressing the exact information published by Nexan]]></basicChars>
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		<raw><![CDATA[GLOBAL LEADER IN CABLESWith energy as the basis of its development, Nexans, the worldwide leader in the cable industry, offers an extensive range of cables and cabling systems in the infrastructure, industry, building and Local Area Network (LAN) markets. Nexans’ products meet the most demanding requirements in terms of quality and respect for the environment. The Group’s services cover the entire value chain, from upstream to downstream: research, design, manufacturing, installation, and maintenance. With its technological leadership, global expertise, and local presence, Nexans operates around the world to satisfy essential needs while maintaining the highest levels of safety and performance. Nexans is listed on the Paris stock exchange.INDUSTRIAL PRESENCE IN MORE THAN 30 COUNTRIES COMMERCIAL ACTIVITIES WORLDWIDEEMPLOYEESBILLION EUROSIN SALES AT CONSTANT METAL PRICESMILLION EUROSIN OPERATING MARGIN0121900 ,4.2 84]]></raw>
		<basicChars><![CDATA[GLOBAL LEADER IN CABLESWith energy as the basis of its development, Nexans, the worldwide leader in the cable industry, offers an extensive range of cables and cabling systems in the infrastructure, industry, building and Local Area Network (LAN) markets. Nexans’ products meet the most demanding requirements in terms of quality and respect for the environment. The Group’s services cover the entire value chain, from upstream to downstream: research, design, manufacturing, installation, and maintenance. With its technological leadership, global expertise, and local presence, Nexans operates around the world to satisfy essential needs while maintaining the highest levels of safety and performance. Nexans is listed on the Paris stock exchange.INDUSTRIAL PRESENCE IN MORE THAN 30 COUNTRIES COMMERCIAL ACTIVITIES WORLDWIDEEMPLOYEESBILLION EUROSIN SALES AT CONSTANT METAL PRICESMILLION EUROSIN OPERATING MARGIN0121900 ,4.2 84]]></basicChars>
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		<raw><![CDATA[ALL THEADVANTAGESTO LEAD OUR INDUSTRYGÉRARD HAUSER, CHAIRMAN AND CHIEF EXECUTIVE OFFICER]]></raw>
		<basicChars><![CDATA[ALL THEADVANTAGESTO LEAD OUR INDUSTRYGÉRARD HAUSER, CHAIRMAN AND CHIEF EXECUTIVE OFFICER]]></basicChars>
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		<raw><![CDATA[2007: a historic year for the Group In 2007, we set a new record for growth and performance. Our cable operations (Energy and Telecom businesses combined) generated sales growth of 12% on a like-for-like basis and improved throughout all geographical areas and our three main markets: infrastructure, industry, and building. Our operating margin grew 57%, from 5.8% to 8.5% of sales at constant metal prices. Cash flow from operations rose 65%. Net income, excluding extraordinary gains on disposals in 2006, doubled in one year, and we reduced our net debt from 40% to 16% of consolidated equity by the end of 2007. Based on these strong results, we have proposed to distribute a dividend of 2 euros per share, up by 67%, and we have launched a share buyback/cancellation program for 70 million euros in shares. A relevant, ambitious strategy One year after we launched our three-year strategic plan, our choices have already proven to be relevant and successful. By placing energy at the core of our development, strengthening our positions in high-growth regions, and improving the value-added of our product range, we have strengthened our positioning in markets that have excellent short-, medium-, and long-term prospects for growth and profit. We live in an ever-changing world; our markets are shifting; and Nexans embodies these trends. We continually strive to develop the best solutions to improve the Group’s profile in terms of growth and profitability. Our goal is to optimize capital employed so that it is concentrated in rapidlygrowing businesses, offering strong synergies. To this end, between 2005 and 2007, we sold our distribution and winding wires businesses. We also became the leader in the cable industry in Asia-Pacific with the acquisition of Olex, the leading Australian cable manufacturer. Olex’s operational consolidation has proven to be a tremendous success. Over 2008, we plan to continue to actively manage our business portfolio. Optimizing our business portfolio We have entered into sales negotiations for the disposal of our coppercable telecom infrastructure activities in Spain, which represent 55 million euros in sales. An exclusive agreement has been signed with a UK-based group, and the deal is slated for completion by the end of the first quarter of 2008. We are also looking into selling our automotive harnesses activity, which accounts for 250 million euros in sales. These activities are not core businesses, and they do not offer enough critical mass worldwide.In terms of acquisitions, the year has been full of activity, and we have continued to expand in rapidly-developing countries. One such project is the planned acquisition of the cable manufacturing business of Madeco in South America which should be finalized toward the middle of 2008. In 2006, this business represented 672 million dollars in sales at current metal prices, or 490 million euros. With this acquisition, Nexans will become the leading cable manufacturer in South America. This acquisition, which will be paid for partly in cash and partly in new Nexans shares, will allow us to maintain our capacity for financial leverage if other acquisition opportunities arise. Once the deal is completed, Madeco will own approximately 9% of Nexans’ capital, which shows that Madeco’s managers are very confident about our Group’s prospects for growth. Adjusted, strong and sustainable outlook By June 2007, we had already reached our goals set for the end of 2009. As such, we have reassessed our prospects. For 2008-2009, with the Group’s new scope of consolidation, i.e. after we sell the harnesses and copper cable telecom infrastructure businesses in Spain and acquire Madeco’s cable manufacturing business, we expect average annual organic sales growth of approximately 6% per year. Operating margin should reach 7% to 10%, depending on the economic environment, and should give rise to a significant increase in free cash flow. The financial markets have been impacted by the US mortgage lending crisis, the declining dollar, and rising oil prices. Like many other companies, Nexans saw its share price fall sharply during the second half of 2007. This trend seems completely unjustified to me and in no way affects the confidence that I have in our Group. Our positioning and financial firepower should enable us to enjoy sustained growth despite a possible global slowdown. More profitable, more resistant, and well-positioned in high-growth markets and geographical areas, Nexans offers a strong, sustainable outlook and has the strategic advantages to lead the industry.]]></raw>
		<basicChars><![CDATA[2007: a historic year for the Group In 2007, we set a new record for growth and performance. Our cable operations (Energy and Telecom businesses combined) generated sales growth of 12% on a like-for-like basis and improved throughout all geographical areas and our three main markets: infrastructure, industry, and building. Our operating margin grew 57%, from 5.8% to 8.5% of sales at constant metal prices. Cash flow from operations rose 65%. Net income, excluding extraordinary gains on disposals in 2006, doubled in one year, and we reduced our net debt from 40% to 16% of consolidated equity by the end of 2007. Based on these strong results, we have proposed to distribute a dividend of 2 euros per share, up by 67%, and we have launched a share buyback/cancellation program for 70 million euros in shares. A relevant, ambitious strategy One year after we launched our three-year strategic plan, our choices have already proven to be relevant and successful. By placing energy at the core of our development, strengthening our positions in high-growth regions, and improving the value-added of our product range, we have strengthened our positioning in markets that have excellent short-, medium-, and long-term prospects for growth and profit. We live in an ever-changing world; our markets are shifting; and Nexans embodies these trends. We continually strive to develop the best solutions to improve the Group’s profile in terms of growth and profitability. Our goal is to optimize capital employed so that it is concentrated in rapidlygrowing businesses, offering strong synergies. To this end, between 2005 and 2007, we sold our distribution and winding wires businesses. We also became the leader in the cable industry in Asia-Pacific with the acquisition of Olex, the leading Australian cable manufacturer. Olex’s operational consolidation has proven to be a tremendous success. Over 2008, we plan to continue to actively manage our business portfolio. Optimizing our business portfolio We have entered into sales negotiations for the disposal of our coppercable telecom infrastructure activities in Spain, which represent 55 million euros in sales. An exclusive agreement has been signed with a UK-based group, and the deal is slated for completion by the end of the first quarter of 2008. We are also looking into selling our automotive harnesses activity, which accounts for 250 million euros in sales. These activities are not core businesses, and they do not offer enough critical mass worldwide.In terms of acquisitions, the year has been full of activity, and we have continued to expand in rapidly-developing countries. One such project is the planned acquisition of the cable manufacturing business of Madeco in South America which should be finalized toward the middle of 2008. In 2006, this business represented 672 million dollars in sales at current metal prices, or 490 million euros. With this acquisition, Nexans will become the leading cable manufacturer in South America. This acquisition, which will be paid for partly in cash and partly in new Nexans shares, will allow us to maintain our capacity for financial leverage if other acquisition opportunities arise. Once the deal is completed, Madeco will own approximately 9% of Nexans’ capital, which shows that Madeco’s managers are very confident about our Group’s prospects for growth. Adjusted, strong and sustainable outlook By June 2007, we had already reached our goals set for the end of 2009. As such, we have reassessed our prospects. For 2008-2009, with the Group’s new scope of consolidation, i.e. after we sell the harnesses and copper cable telecom infrastructure businesses in Spain and acquire Madeco’s cable manufacturing business, we expect average annual organic sales growth of approximately 6% per year. Operating margin should reach 7% to 10%, depending on the economic environment, and should give rise to a significant increase in free cash flow. The financial markets have been impacted by the US mortgage lending crisis, the declining dollar, and rising oil prices. Like many other companies, Nexans saw its share price fall sharply during the second half of 2007. This trend seems completely unjustified to me and in no way affects the confidence that I have in our Group. Our positioning and financial firepower should enable us to enjoy sustained growth despite a possible global slowdown. More profitable, more resistant, and well-positioned in high-growth markets and geographical areas, Nexans offers a strong, sustainable outlook and has the strategic advantages to lead the industry.]]></basicChars>
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		<raw><![CDATA[COMMITTEETHE EXECUTIVEFrom left to right:PASCAL PORTEVIN, FRÉDÉRIC VINCENT, FRÉDÉRIC MICHELLAND,Vice-President, Strategic OperationsMICHEL LEMAIRE,Chief Operating OfficerVÉRONIQUE GUILLOT-PELPEL,Chief Financial OfficerYVON RAAK,Vice-President, Asia-Pacific Area04Vice-President Human Resources and CommunicationsWOLFGANG BEDORF,Vice-President, Europe AreaGORDON THURSFIELD,GÉRARD HAUSER,Chairman and Chief Executive OfficerVice-President, North America AreaVice-President, Rest of the World Ar]]></raw>
		<basicChars><![CDATA[COMMITTEETHE EXECUTIVEFrom left to right:PASCAL PORTEVIN, FRÉDÉRIC VINCENT, FRÉDÉRIC MICHELLAND,Vice-President, Strategic OperationsMICHEL LEMAIRE,Chief Operating OfficerVÉRONIQUE GUILLOT-PELPEL,Chief Financial OfficerYVON RAAK,Vice-President, Asia-Pacific Area04Vice-President Human Resources and CommunicationsWOLFGANG BEDORF,Vice-President, Europe AreaGORDON THURSFIELD,GÉRARD HAUSER,Chairman and Chief Executive OfficerVice-President, North America AreaVice-President, Rest of the World Ar]]></basicChars>
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		<raw><![CDATA[GOVERNANCEGÉRARD HAUSERChairman and CEO of Nexans66 YEARS OLD | 16 RUE DE MONCEAU, 75008 PARIS NUMBER OF NEXANS SHARES HELD: 18,268 (AS OF FEBRUARY 29, 2008) DATE OF FIRST APPOINTMENT: OCTOBER 17, 2000 DATE OF LATEST TERM RENEWAL: MAY 15, 2006 DATE OF TERM EXPIRATION AS DIRECTOR: 2010 ANNUAL SHAREHOLDERS’ MEETING DATE OF TERM EXPIRATION AS CHAIRMAN AND CEO: 2009 ANNUAL SHAREHOLDERS’ MEETINGCORPORATEINFORMATION ABOUT MEMBERS OF THE BOARD OF DIRECTORS AND OTHER CORPORATE OFFICERS AS OF DECEMBER 31, 2007• Expertise/Experience : Joined Alcatel in 1986 after working for a major auditing firm from 1978 to 1985. Moved to Alcatel’s Cables and Components sector in 1989, and in 1994 was appointed Deputy Managing Director (Administration and Finance) for Alcatel’s submarine telecommunications activities, and in 1997, of Saft, Alcatel’s batteries activity. He became Nexans’ Chief Financial Officer and a member of the Executive Committee in 2000, and was appointed as its Chief Operating Officer on May 15, 2006.• Other Directorships and positions held: - Director of Alstom, Faurecia, Aplix, and Ipsen • Directorships expired in the past five years: - Director of Electro-Banque • Expertise/Experience : Held various positions of responsibility within the Philips Group from 1965 to 1975. From 1975 to 1996, he was Chairman and CEO, first of Pechiney World Trade, then of Pechiney Rhénalu and finally Senior Executive Vice President of American National Can and member of the Group’s Executive Committee. In 1996, he joined Alcatel Câble France and became Vice President of the Cables and Components sector of Alcatel in 1997. In 2000, he was appointed Chairman and CEO of Nexans.GIANPAOLO CACCINIDirector of Nexans69 YEARS OLD | PRESIDENT OF ASSOVETRO, THE ITALIAN ASSOCIATION OF GLASS MANUFACTURERS VIA CARADOSSO N°17, 20123 MILAN – ITALY NUMBER OF NEXANS SHARES HELD: 487 DATE OF FIRST APPOINTMENT: JUNE 15, 2001 DATE OF TERM EXPIRATION: 2011 ANNUAL SHAREHOLDERS’ MEETINGFRÉDÉRIC VINCENTChief Operating Officer of Nexans (Proposed as a Director at the 2008 Annual Shareholders’ Meeting)53 YEARS OLD | 16 RUE DE MONCEAU, 75008 PARIS NUMBER OF NEXANS SHARES HELD: 836 (AS OF FEBRUARY 29, 2008) NUMBER OF EMPLOYEE MUTUAL FUND UNITS INVESTED IN NEXANS SHARES: 3,305 (VALUE OF ONE UNIT = VALUE OF ONE SHARE) DATE OF APPOINTMENT: MAY 15, 2006• Other Directorships and positions held: - Director of Saint-Gobain, JM Huber Corporation*, and Saint-Gobain Corporation* • Directorships expired in the past five years: - Director of Nybron Flooring International* - Chief Operating Officer of Saint-Gobain Group - Senior Vice President of Saint-Gobain Corporation* • Expertise/Experience : From 1973 to 1980, he worked at the Saint-Gobain Group as Vice President Sales, then managed several divisions, units, and subsidiaries including Vetrotex Italie Spa and Saint-Gobain Desjonquères SA France. From1996 to 2000, he was Vice President, North America and Deputy CEO of this Group, and CEO, from 2000 to 2004. He has been the President of Assovetro (the Italian Association of Glass Manufacturers) since 2004.• Other Directorships and positions held : - Director of Electro-Banque • Directorships expired in the past five years: - Director of Essex Nexans Europe* Offices and positions held in foreign companies.]]></raw>
		<basicChars><![CDATA[GOVERNANCEGÉRARD HAUSERChairman and CEO of Nexans66 YEARS OLD | 16 RUE DE MONCEAU, 75008 PARIS NUMBER OF NEXANS SHARES HELD: 18,268 (AS OF FEBRUARY 29, 2008) DATE OF FIRST APPOINTMENT: OCTOBER 17, 2000 DATE OF LATEST TERM RENEWAL: MAY 15, 2006 DATE OF TERM EXPIRATION AS DIRECTOR: 2010 ANNUAL SHAREHOLDERS’ MEETING DATE OF TERM EXPIRATION AS CHAIRMAN AND CEO: 2009 ANNUAL SHAREHOLDERS’ MEETINGCORPORATEINFORMATION ABOUT MEMBERS OF THE BOARD OF DIRECTORS AND OTHER CORPORATE OFFICERS AS OF DECEMBER 31, 2007• Expertise/Experience : Joined Alcatel in 1986 after working for a major auditing firm from 1978 to 1985. Moved to Alcatel’s Cables and Components sector in 1989, and in 1994 was appointed Deputy Managing Director (Administration and Finance) for Alcatel’s submarine telecommunications activities, and in 1997, of Saft, Alcatel’s batteries activity. He became Nexans’ Chief Financial Officer and a member of the Executive Committee in 2000, and was appointed as its Chief Operating Officer on May 15, 2006.• Other Directorships and positions held: - Director of Alstom, Faurecia, Aplix, and Ipsen • Directorships expired in the past five years: - Director of Electro-Banque • Expertise/Experience : Held various positions of responsibility within the Philips Group from 1965 to 1975. From 1975 to 1996, he was Chairman and CEO, first of Pechiney World Trade, then of Pechiney Rhénalu and finally Senior Executive Vice President of American National Can and member of the Group’s Executive Committee. In 1996, he joined Alcatel Câble France and became Vice President of the Cables and Components sector of Alcatel in 1997. In 2000, he was appointed Chairman and CEO of Nexans.GIANPAOLO CACCINIDirector of Nexans69 YEARS OLD | PRESIDENT OF ASSOVETRO, THE ITALIAN ASSOCIATION OF GLASS MANUFACTURERS VIA CARADOSSO N°17, 20123 MILAN – ITALY NUMBER OF NEXANS SHARES HELD: 487 DATE OF FIRST APPOINTMENT: JUNE 15, 2001 DATE OF TERM EXPIRATION: 2011 ANNUAL SHAREHOLDERS’ MEETINGFRÉDÉRIC VINCENTChief Operating Officer of Nexans (Proposed as a Director at the 2008 Annual Shareholders’ Meeting)53 YEARS OLD | 16 RUE DE MONCEAU, 75008 PARIS NUMBER OF NEXANS SHARES HELD: 836 (AS OF FEBRUARY 29, 2008) NUMBER OF EMPLOYEE MUTUAL FUND UNITS INVESTED IN NEXANS SHARES: 3,305 (VALUE OF ONE UNIT = VALUE OF ONE SHARE) DATE OF APPOINTMENT: MAY 15, 2006• Other Directorships and positions held: - Director of Saint-Gobain, JM Huber Corporation*, and Saint-Gobain Corporation* • Directorships expired in the past five years: - Director of Nybron Flooring International* - Chief Operating Officer of Saint-Gobain Group - Senior Vice President of Saint-Gobain Corporation* • Expertise/Experience : From 1973 to 1980, he worked at the Saint-Gobain Group as Vice President Sales, then managed several divisions, units, and subsidiaries including Vetrotex Italie Spa and Saint-Gobain Desjonquères SA France. From1996 to 2000, he was Vice President, North America and Deputy CEO of this Group, and CEO, from 2000 to 2004. He has been the President of Assovetro (the Italian Association of Glass Manufacturers) since 2004.• Other Directorships and positions held : - Director of Electro-Banque • Directorships expired in the past five years: - Director of Essex Nexans Europe* Offices and positions held in foreign companies.]]></basicChars>
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		<raw><![CDATA[CORPORATE GOVERNANCEJEAN-MARIE CHEVALIERDirector of Nexans66 YEARS OLD | PROFESSOR OF ECONOMICS AT THE UNIVERSITY OF PARIS IXDAUPHINE PLACE DU MARÉCHAL DE LATTRE DE TASSIGNY, 75116 PARIS NUMBER OF NEXANS SHARES HELD: 420 DATE OF FIRST APPOINTMENT: OCTOBER 23, 2003 DATE OF TERM EXPIRATION: 2011 ANNUAL SHAREHOLDERS’ MEETING• Other Directorships and positions held: Director of Cambridge Energy Research Associates • Directorships expired in the past five years: None • Expertise/Experience : Successively professor of economics at the universities of Grenoble, Paris XIII Nord, and Paris IX-Dauphine (since 1991). Also professor at IEP Paris (1982-1990) and at ENA (1988-1990). He has been Consultant for various companies, banks, government agencies, and international organizations. Since 1984, Consultant for the Energy Department at the World Bank. Vice President at Cambridge Energy Research Associates (CERA) since 1997.- Director of Bouygues SA, Alstom, F.F.P. (Société Foncière Financière et de Participations), Verner Investissements SAS, Erbé SA*, BNP Paribas ZAO*, BNL* (Banca Nazionale del Lavoro), and Scor Holding (Switzerland) AG* - Member of the Supervisory Board of Lagardère SA - Non-voting director of Exane, Scor SA, and Safran • Directorships expired in the past five years: - Chairman of BNP Paribas Bank Polska*, BNP US Funding*, BNP Paribas Emergis SAS, and BNP Paribas UK Holdings Ltd* - Director of Sommer SA*, BNP Paribas Canada*, BNP Paribas Peregrine Ltd*, BNP Prime Peregrine Holdings Ltd*, and BNP Paribas Securities Corp* - Member of the Supervisory Board of Sagem (now Safran). Non-voting director of Scor Vie (now Scor Global Life) • Expertise/Experience : Joined BNP in 1972. After holding several management positions, became deputy CEO in 1993, then Managing Director in 1996. From 1999 to 2003, Member of the Executive Committee and Head of the Finance and Investment Bank of BNP-Paribas, then Managing Director since 2003.FRANÇOIS POLGE DE COMBRETDirector of Nexans67 YEARS OLD | SENIOR ADVISOR OF UBS INVESTMENT BANK 65 RUE DE COURCELLES, 75008 PARIS NUMBER OF NEXANS SHARES HELD: 500 DATE OF FIRST APPOINTMENT: MAY 15, 2006 DATE OF TERM EXPIRATION: 2010 ANNUAL SHAREHOLDERS’ MEETINGJÉRÔME GALLOTDirector of Nexans48 YEARS OLD | CHAIRMAN OF CDC ENTERPRISES, TOUR MAINE MONTPARNASSE 33, AVENUE DU MAINE BP 174 - 75755 PARIS CEDEX 15 NUMBER OF NEXANS SHARES HELD: 200 DATE OF FIRST APPOINTMENT: MAY 10, 2007 DATE OF TERM EXPIRATION: 2011 ANNUAL SHAREHOLDERS’ MEETING• Other Directorships and positions held: - Director of Renault and Bouygues Telecom - Member of the Supervisory Board of Safran • Directorships expired in the past five years: - Director of Fonds Partenaires Gestion, Institut Pasteur, and Sagem (now Safran). • Expertise/Experience : He was successively Honorary Advisor to the Cour des Comptes, Advisor for economic and industrial affairs under Valéry Giscard d’Estaing (1971-1978), first at the Ministry of Finance and Economics, then to the President of the Republic, before being appointed Deputy General Secretary (1978-1981). He was recruited by the bank Lazard in 1982, then spent three years in New York before being appointed a partner and manager of the bank in Paris in 1985. He left the bank Lazard in 2006 to become a Senior Advisor at the bank UBS.GEORGES CHODRON DE COURCELDirector of Nexans57 YEARS OLD | CHIEF OPERATING OFFICER OF BNP PARIBAS AND MEMBER OF THE EXECUTIVE COMMITTEE 3 RUE D’ANTIN, 75002 PARIS NUMBER OF NEXANS SHARES HELD: 229 DATE OF FIRST APPOINTMENT: JUNE 15, 2001 DATE OF TERM EXPIRATION: 2011 ANNUAL SHAREHOLDERS’ MEETING06• Other Directorships and positions held: - Chairman of Financière BNP Paribas SAS, Compagnie d’Investissement de Paris SAS, and BNP Paribas (Switzerland) SA*• Other Directorships and positions held: -- Member of the Supervisory Board of NRJ Group and Schneider Electric SA - Director of CNP Assurances, ICADE, Caixa Seguros*, and Plastic Omnium - Non-voting director of Oseo • Directorships expired in the past five years: - Director of Schneider Electric SA, Crédit Foncier de France, Galaxy Fund, and Galaxy Management Services - Member of the Supervisory Board of CNP Assurances and Compagnie Nationale du Rhône (CNR) - Chairman of Sicav Austral - Vice President of Caisse des Dépôts et Consignations • Expertise/Exprience : After serving as Auditor at the Cour des Comptes for three years, he joined the Secretary General of the Inter-Ministry Committee for issues regarding the Organization for European Economic Cooperation (1989 to 1992), then the Budget Department. He was successively Cabinet Director of the Ministries of Industry, Post, and Telecommunications, Foreign Trade, and Public Services, then became Deputy Finance Minister (1993 to 1997). He was appointed Director General of the Department of Competition, Consumer Affairs, and Repression of Fraud within the French Ministry of the Economy, Finance, and Industry (1997 to 2003) before becoming Vice President and Member of the Executive Committee of Caisse des Dépôts and Consignations. He was appointed Chairman of CDC Entreprises in 2006.* Offices and positions held in foreign companie]]></raw>
		<basicChars><![CDATA[CORPORATE GOVERNANCEJEAN-MARIE CHEVALIERDirector of Nexans66 YEARS OLD | PROFESSOR OF ECONOMICS AT THE UNIVERSITY OF PARIS IXDAUPHINE PLACE DU MARÉCHAL DE LATTRE DE TASSIGNY, 75116 PARIS NUMBER OF NEXANS SHARES HELD: 420 DATE OF FIRST APPOINTMENT: OCTOBER 23, 2003 DATE OF TERM EXPIRATION: 2011 ANNUAL SHAREHOLDERS’ MEETING• Other Directorships and positions held: Director of Cambridge Energy Research Associates • Directorships expired in the past five years: None • Expertise/Experience : Successively professor of economics at the universities of Grenoble, Paris XIII Nord, and Paris IX-Dauphine (since 1991). Also professor at IEP Paris (1982-1990) and at ENA (1988-1990). He has been Consultant for various companies, banks, government agencies, and international organizations. Since 1984, Consultant for the Energy Department at the World Bank. Vice President at Cambridge Energy Research Associates (CERA) since 1997.- Director of Bouygues SA, Alstom, F.F.P. (Société Foncière Financière et de Participations), Verner Investissements SAS, Erbé SA*, BNP Paribas ZAO*, BNL* (Banca Nazionale del Lavoro), and Scor Holding (Switzerland) AG* - Member of the Supervisory Board of Lagardère SA - Non-voting director of Exane, Scor SA, and Safran • Directorships expired in the past five years: - Chairman of BNP Paribas Bank Polska*, BNP US Funding*, BNP Paribas Emergis SAS, and BNP Paribas UK Holdings Ltd* - Director of Sommer SA*, BNP Paribas Canada*, BNP Paribas Peregrine Ltd*, BNP Prime Peregrine Holdings Ltd*, and BNP Paribas Securities Corp* - Member of the Supervisory Board of Sagem (now Safran). Non-voting director of Scor Vie (now Scor Global Life) • Expertise/Experience : Joined BNP in 1972. After holding several management positions, became deputy CEO in 1993, then Managing Director in 1996. From 1999 to 2003, Member of the Executive Committee and Head of the Finance and Investment Bank of BNP-Paribas, then Managing Director since 2003.FRANÇOIS POLGE DE COMBRETDirector of Nexans67 YEARS OLD | SENIOR ADVISOR OF UBS INVESTMENT BANK 65 RUE DE COURCELLES, 75008 PARIS NUMBER OF NEXANS SHARES HELD: 500 DATE OF FIRST APPOINTMENT: MAY 15, 2006 DATE OF TERM EXPIRATION: 2010 ANNUAL SHAREHOLDERS’ MEETINGJÉRÔME GALLOTDirector of Nexans48 YEARS OLD | CHAIRMAN OF CDC ENTERPRISES, TOUR MAINE MONTPARNASSE 33, AVENUE DU MAINE BP 174 - 75755 PARIS CEDEX 15 NUMBER OF NEXANS SHARES HELD: 200 DATE OF FIRST APPOINTMENT: MAY 10, 2007 DATE OF TERM EXPIRATION: 2011 ANNUAL SHAREHOLDERS’ MEETING• Other Directorships and positions held: - Director of Renault and Bouygues Telecom - Member of the Supervisory Board of Safran • Directorships expired in the past five years: - Director of Fonds Partenaires Gestion, Institut Pasteur, and Sagem (now Safran). • Expertise/Experience : He was successively Honorary Advisor to the Cour des Comptes, Advisor for economic and industrial affairs under Valéry Giscard d’Estaing (1971-1978), first at the Ministry of Finance and Economics, then to the President of the Republic, before being appointed Deputy General Secretary (1978-1981). He was recruited by the bank Lazard in 1982, then spent three years in New York before being appointed a partner and manager of the bank in Paris in 1985. He left the bank Lazard in 2006 to become a Senior Advisor at the bank UBS.GEORGES CHODRON DE COURCELDirector of Nexans57 YEARS OLD | CHIEF OPERATING OFFICER OF BNP PARIBAS AND MEMBER OF THE EXECUTIVE COMMITTEE 3 RUE D’ANTIN, 75002 PARIS NUMBER OF NEXANS SHARES HELD: 229 DATE OF FIRST APPOINTMENT: JUNE 15, 2001 DATE OF TERM EXPIRATION: 2011 ANNUAL SHAREHOLDERS’ MEETING06• Other Directorships and positions held: - Chairman of Financière BNP Paribas SAS, Compagnie d’Investissement de Paris SAS, and BNP Paribas (Switzerland) SA*• Other Directorships and positions held: -- Member of the Supervisory Board of NRJ Group and Schneider Electric SA - Director of CNP Assurances, ICADE, Caixa Seguros*, and Plastic Omnium - Non-voting director of Oseo • Directorships expired in the past five years: - Director of Schneider Electric SA, Crédit Foncier de France, Galaxy Fund, and Galaxy Management Services - Member of the Supervisory Board of CNP Assurances and Compagnie Nationale du Rhône (CNR) - Chairman of Sicav Austral - Vice President of Caisse des Dépôts et Consignations • Expertise/Exprience : After serving as Auditor at the Cour des Comptes for three years, he joined the Secretary General of the Inter-Ministry Committee for issues regarding the Organization for European Economic Cooperation (1989 to 1992), then the Budget Department. He was successively Cabinet Director of the Ministries of Industry, Post, and Telecommunications, Foreign Trade, and Public Services, then became Deputy Finance Minister (1993 to 1997). He was appointed Director General of the Department of Competition, Consumer Affairs, and Repression of Fraud within the French Ministry of the Economy, Finance, and Industry (1997 to 2003) before becoming Vice President and Member of the Executive Committee of Caisse des Dépôts and Consignations. He was appointed Chairman of CDC Entreprises in 2006.* Offices and positions held in foreign companie]]></basicChars>
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		<raw><![CDATA[JACQUES GARAÏALDEDirector of Nexans51 YEARS OLD | MANAGING DIRECTOR DE KOHLBERG KRAVIS ROBERTS et CO. LTD. STIRLING SQUARE, 7 CARLTON GARDENS, LONDON SW1Y 5AD – UNITED KINGDOM NUMBER OF NEXANS SHARES HELD: 500 DATE OF FIRST APPOINTMENT: JUNE 15, 2001 DATE OF TERM EXPIRATION: 2011 ANNUAL SHAREHOLDERS’ MEETINGfor McKinsey. He became Chief Executive Officer of the Zodiac Group in 1974, and was appointed Chairman of the Zodiac Management Board in 1980. Since 2007, he has served as a Member of the Management Board of the Zodiac Group.COLETTE LEWINERDirector of Nexans62 YEARS OLD | VICE PRESIDENT, GLOBAL LEADER ENERGY, UTILITIES et CHEMICALS OF CAP GEMINI CAP GEMINI, TOUR EUROPLAZA, LA DÉFENSE 4 20, AVENUE ANDRÉ PROTHIN 92927 PARIS LA DÉFENSE CEDEX NUMBER OF NEXANS SHARES HELD: 1,000 DATE OF FIRST APPOINTMENT: JUNE 3, 2004 DATE OF TERM EXPIRATION: 2008 ANNUAL SHAREHOLDERS’ MEETING• Other Directorships and positions held: - Chairman of the PagesJaunes Group’s Board of Directors - Chairman and CEO of Mediannuaire Holding - Director of Legrand and Tarkett SA - Member of the Executive Committee of Société d’Investissement Familiale • Directorships expired in the past five years: - Director of Legrand France and Lumina Participation - Chairman of the Supervisory Board of Solsoft and Egencia • Expertise/Experience : After Exxon Corporation, he joined the Boston Consulting Group in 1982, where he worked successively as Consultant, Vice President, Senior Vice President, and Vice President Operations, Belgium and France (1995 to 2000). He was Managing Director Europe for the Carlyle Group in London from 2000 to 2003 before signing on with the Kohlberg Kravis Roberts et Co group as Managing Director.JEAN-LOUIS GERONDEAUDirector of Nexans64 YEARS OLD MEMBER OF THE MANAGEMENT BOARD OF THE ZODIAC GROUP 2, RUE MAURICE MALLET 92130 ISSY LES MOULINEAUX NUMBER OF NEXANS SHARES HELD: 100 DATE OF FIRST APPOINTMENT: MAY 10, 2007 DATE OF TERM EXPIRATION: 2011 ANNUAL SHAREHOLDERS’ MEETING• Other Directorships and positions held: - Director of La Poste and TGS-NOPEC Geophysical Company ASA* - Member of the Information Technology Strategic Board reporting to the Prime Minister - Member of the Académie des Technologies • Directorships expired in the past five years: None • Expertise/Experience : After several years of physics research and teaching at the university level (Maître de conférences at the university of Paris 7) she joined Electricité de France in 1979 and set up the Development and Commercial Strategy Department in 1989. She was appointed Chief Executive Officer of SGN-Réseau Eurysis in 1992, before joining Cap Gemini in 1998 to set up the international Utilities Department. After the merger with ErnstetYoung, she was made Head of the extended Energy, Utilities et Chemicals Department. In 2004, she set up the Global Marketing Department of Cap Gemini which she managed until 2007.ERVIN ROSENBERGDirector of Nexans72 YEARS OLD | ADVISOR TO THE CHAIRMAN OF COMPAGNIE FINANCIÈRE EDMOND DE ROTHSCHILD BANQUE 47 RUE DU FAUBOURG SAINT HONORÉ, 75008 PARIS NUMBER OF NEXANS SHARES HELD: 500 DATE OF FIRST APPOINTMENT: JUNE 15, 2001 DATE OF TERM EXPIRATION: 2011 ANNUAL SHAREHOLDERS’ MEETING• Other Directorships and positions held: - Director of Faurecia, Sicma Aero Seat, Avox-Eros Services Inc*, Avox Systems Inc*, Evac International OY*, Evac OY*, Marine Holding Corp*, Zodiac Espanola*, Zodiac Automotive UK*, Air Cruisers*, Sicma Aero Seat Services*, Zodiac Automotive US*, Zodiac US Corporation*, Zodiac Group of Australia*, MAG Aerospace Industries Inc*, CetD Zodiac*, and CetD Aerospace Canada* - Chairman and Vice Chairman of the Supervisory Board of the Institute for Industrial Development (IDI) - Chairman of Aerazur, Intertechnique, Aerazur Newco, Zodiac Marine Holding, and Zodiac Airline Equipment LLC* • Directorships expired in the past five years: - Chairman of the Management Board of the Zodiac Group - Director of Ferma and Optim Actif • Expertise/Experience : He began his career in 1965 at the French Ministry of Equipment, within the Department of International and Economic Affairs, where he worked for 5 years. From1970 to 1974, he worked• Other Directorships and positions held: - Member of the Supervisory Board of LCF Rothschild Financial Services and Mobility Saint Honoré - Chairman and CEO of Financière Savoisienne - Non-voting director of Compagnie Financière Edmond de Rothschild Banque • Directorships expired in the past five years: - Director of Thomson SA and Carbone Lorraine - Member of the Supervisory Board of Compagnie Financière Edmond de Rothschild Banque, Ifrah Finance, and Entreprise Minière et Chimique • Expertise/Experience : He started working at BNP in 1965 where he joined the Industrial Business Division (1984), then the Large Business* Offices and positions held in foreign companies.]]></raw>
		<basicChars><![CDATA[JACQUES GARAÏALDEDirector of Nexans51 YEARS OLD | MANAGING DIRECTOR DE KOHLBERG KRAVIS ROBERTS et CO. LTD. STIRLING SQUARE, 7 CARLTON GARDENS, LONDON SW1Y 5AD – UNITED KINGDOM NUMBER OF NEXANS SHARES HELD: 500 DATE OF FIRST APPOINTMENT: JUNE 15, 2001 DATE OF TERM EXPIRATION: 2011 ANNUAL SHAREHOLDERS’ MEETINGfor McKinsey. He became Chief Executive Officer of the Zodiac Group in 1974, and was appointed Chairman of the Zodiac Management Board in 1980. Since 2007, he has served as a Member of the Management Board of the Zodiac Group.COLETTE LEWINERDirector of Nexans62 YEARS OLD | VICE PRESIDENT, GLOBAL LEADER ENERGY, UTILITIES et CHEMICALS OF CAP GEMINI CAP GEMINI, TOUR EUROPLAZA, LA DÉFENSE 4 20, AVENUE ANDRÉ PROTHIN 92927 PARIS LA DÉFENSE CEDEX NUMBER OF NEXANS SHARES HELD: 1,000 DATE OF FIRST APPOINTMENT: JUNE 3, 2004 DATE OF TERM EXPIRATION: 2008 ANNUAL SHAREHOLDERS’ MEETING• Other Directorships and positions held: - Chairman of the PagesJaunes Group’s Board of Directors - Chairman and CEO of Mediannuaire Holding - Director of Legrand and Tarkett SA - Member of the Executive Committee of Société d’Investissement Familiale • Directorships expired in the past five years: - Director of Legrand France and Lumina Participation - Chairman of the Supervisory Board of Solsoft and Egencia • Expertise/Experience : After Exxon Corporation, he joined the Boston Consulting Group in 1982, where he worked successively as Consultant, Vice President, Senior Vice President, and Vice President Operations, Belgium and France (1995 to 2000). He was Managing Director Europe for the Carlyle Group in London from 2000 to 2003 before signing on with the Kohlberg Kravis Roberts et Co group as Managing Director.JEAN-LOUIS GERONDEAUDirector of Nexans64 YEARS OLD MEMBER OF THE MANAGEMENT BOARD OF THE ZODIAC GROUP 2, RUE MAURICE MALLET 92130 ISSY LES MOULINEAUX NUMBER OF NEXANS SHARES HELD: 100 DATE OF FIRST APPOINTMENT: MAY 10, 2007 DATE OF TERM EXPIRATION: 2011 ANNUAL SHAREHOLDERS’ MEETING• Other Directorships and positions held: - Director of La Poste and TGS-NOPEC Geophysical Company ASA* - Member of the Information Technology Strategic Board reporting to the Prime Minister - Member of the Académie des Technologies • Directorships expired in the past five years: None • Expertise/Experience : After several years of physics research and teaching at the university level (Maître de conférences at the university of Paris 7) she joined Electricité de France in 1979 and set up the Development and Commercial Strategy Department in 1989. She was appointed Chief Executive Officer of SGN-Réseau Eurysis in 1992, before joining Cap Gemini in 1998 to set up the international Utilities Department. After the merger with ErnstetYoung, she was made Head of the extended Energy, Utilities et Chemicals Department. In 2004, she set up the Global Marketing Department of Cap Gemini which she managed until 2007.ERVIN ROSENBERGDirector of Nexans72 YEARS OLD | ADVISOR TO THE CHAIRMAN OF COMPAGNIE FINANCIÈRE EDMOND DE ROTHSCHILD BANQUE 47 RUE DU FAUBOURG SAINT HONORÉ, 75008 PARIS NUMBER OF NEXANS SHARES HELD: 500 DATE OF FIRST APPOINTMENT: JUNE 15, 2001 DATE OF TERM EXPIRATION: 2011 ANNUAL SHAREHOLDERS’ MEETING• Other Directorships and positions held: - Director of Faurecia, Sicma Aero Seat, Avox-Eros Services Inc*, Avox Systems Inc*, Evac International OY*, Evac OY*, Marine Holding Corp*, Zodiac Espanola*, Zodiac Automotive UK*, Air Cruisers*, Sicma Aero Seat Services*, Zodiac Automotive US*, Zodiac US Corporation*, Zodiac Group of Australia*, MAG Aerospace Industries Inc*, CetD Zodiac*, and CetD Aerospace Canada* - Chairman and Vice Chairman of the Supervisory Board of the Institute for Industrial Development (IDI) - Chairman of Aerazur, Intertechnique, Aerazur Newco, Zodiac Marine Holding, and Zodiac Airline Equipment LLC* • Directorships expired in the past five years: - Chairman of the Management Board of the Zodiac Group - Director of Ferma and Optim Actif • Expertise/Experience : He began his career in 1965 at the French Ministry of Equipment, within the Department of International and Economic Affairs, where he worked for 5 years. From1970 to 1974, he worked• Other Directorships and positions held: - Member of the Supervisory Board of LCF Rothschild Financial Services and Mobility Saint Honoré - Chairman and CEO of Financière Savoisienne - Non-voting director of Compagnie Financière Edmond de Rothschild Banque • Directorships expired in the past five years: - Director of Thomson SA and Carbone Lorraine - Member of the Supervisory Board of Compagnie Financière Edmond de Rothschild Banque, Ifrah Finance, and Entreprise Minière et Chimique • Expertise/Experience : He started working at BNP in 1965 where he joined the Industrial Business Division (1984), then the Large Business* Offices and positions held in foreign companies.]]></basicChars>
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	<page id="10">
		<raw><![CDATA[CORPORATE GOVERNANCEDivision (1985). He was appointed Director of the Large Business Division in 1993 and was appointed successively a member of the General Management Committee of BNP and then Central Director in 1994, before being appointed honorary Deputy Managing Director in 2000. He joined Compagnie Financière Edmond de Rothschild Banque in 2000 as Advisor to the Chairman of the Management Board. He also served as a member of the Supervisory Board from 2000 to 2006, and in 2006, he became a non-voting director of Compagnie Financière Edmond de Rothschild Banque.PROPOSAL SUBMITTED TO THE ANNUAL SHAREHOLDERS’ MEETING TO BE HELD ON APRIL 22, 2008 (HELD UPON SECOND CALL): RENEWAL OF DIRECTORS’ TERM OF OFFICE AND APPOINTMENT OF NEW DIRECTORS TO THE BOARDNICOLAS DE TAVERNOSTDirector of Nexans57 YEARS OLD CHAIRMAN OF THE MANAGEMENT BOARD OF THE M6 GROUP 89, AVENUE CHARLES DE GAULLE 92575 NEUILLY CEDEX NUMBER OF NEXANS SHARES HELD: 501 DATE OF FIRST APPOINTMENT: MAY 10, 2007 DATE OF TERM EXPIRATION: 2011 ANNUAL SHAREHOLDERS’ MEETINGThe renewal, for a period of four years, of the term of office of Mrs. Colette Lewiner and the appointment, for a four-year term, of Mr. Frédéric Vincent, Chief operating officer of Nexans since May 2006 (see the description on page 5), and Mr. Guillermo Luksic Craig (see below), as two new directors, will be submitted for approval at the next Shareholders' Meeting.GUILLERMO LUKSIC CRAIG52 YEARS OLD• Other Directorships and positions held: - Member of the Supervisory Board of Ediradio SA (RTL) - Director of Antena 3* and GL Events SA, and within the M6 Group, Extension TV SA, TF6 Gestion SA, and Société Nouvelle de Distribution SA - President of the Association of European Commercial Television (ACT)* • Directorships expired in the past five years: Director of Business Interactif and Hotel Saint Dominique (on his own behalf) • Expertise/Experience : First of all employed by the French Ministry of International Commerce (1974) then appointed General Secretary of the French Chamber of Commerce in Zurich (1976), he joined the cabinet of the Secretary of State of Post and Telecommunications in 1977 where he was posted in 1981 to the Telecommunications Department and then to the public services division of the Video Communications Department. He joined Lyonnaise des Eaux in 1986 as Director of the Audiovisual activities. He has been Managing Director of M6 since its creation in 1987, and was made Chairman of the M6 Group in 2000.• Expertise/Experience : : Guillermo Luksic Craig is Chairman of the Board of Directors of Quiñenco, a business conglomerate listed in Chile, of which he is also a shareholder. He began his career in 1975 with the Quiñenco group and was appointed Chairman of the Board in 1982. He is currently Chairman of the Boards of Directors of the Chilean companies Madeco, CCU (beverage company held by Quiñenco and its strategic partner Heineken, listed in Chile and in the United States), CNT Telefónica del Sur (a leading telecommunications company in the south of Chile), and Viña San Pedro (a company specialized in wine production). Since 2001, he has been a member of the Board of Directors of the second largest bank in the country, Banco de Chile. In 2005, he was appointed member of the Board of Directors of Antofagasta plc, a London-based Chilean mining company with extensive investments in Chile. He is member of and advisor to management bodies of various nonprofit organizations, including the Ena Craig foundation and the Centro de Estudios Publico. He is also a trustee of the Finis Terrae University in Chile.SUMMARY OF THE TERM OF OFFICE EXPIRATION DATES OF NEXANS BOARD MEMBERSYear: 2008 2010 2011 Board member: C. Lewiner G. Hauser F. Polge de Combret G. Caccini JM. Chevalier G. Chodron de Courcel J. Gallot J. Garaïalde JL. Gerondeau E. Rosenberg N. de TavernostORGANIZATION OF THE BOARD OF DIRECTORSSince its listing on the stock exchange, Nexans has adopted a number of rules relating to corporate governance with a view to ensuring transparency of information with respect to both its directors and its shareholders. The Board of Directors is currently made up of 11 members. They come from diverse backgrounds and were selected for their expertise and experience in industry, banking or consultancy, enabling them to give informed opinions and advice in the best interests of the Company. The Combined Shareholders’ Meeting of June 3, 2004 decided to reduce the length of Directors’ term of office from six to four years, starting with terms beginning during the 2004 financial year. No category of shareholder is represented on the Board of Directors, and there is no Director elected by the employees.08* Offices and positions held in foreign companie]]></raw>
		<basicChars><![CDATA[CORPORATE GOVERNANCEDivision (1985). He was appointed Director of the Large Business Division in 1993 and was appointed successively a member of the General Management Committee of BNP and then Central Director in 1994, before being appointed honorary Deputy Managing Director in 2000. He joined Compagnie Financière Edmond de Rothschild Banque in 2000 as Advisor to the Chairman of the Management Board. He also served as a member of the Supervisory Board from 2000 to 2006, and in 2006, he became a non-voting director of Compagnie Financière Edmond de Rothschild Banque.PROPOSAL SUBMITTED TO THE ANNUAL SHAREHOLDERS’ MEETING TO BE HELD ON APRIL 22, 2008 (HELD UPON SECOND CALL): RENEWAL OF DIRECTORS’ TERM OF OFFICE AND APPOINTMENT OF NEW DIRECTORS TO THE BOARDNICOLAS DE TAVERNOSTDirector of Nexans57 YEARS OLD CHAIRMAN OF THE MANAGEMENT BOARD OF THE M6 GROUP 89, AVENUE CHARLES DE GAULLE 92575 NEUILLY CEDEX NUMBER OF NEXANS SHARES HELD: 501 DATE OF FIRST APPOINTMENT: MAY 10, 2007 DATE OF TERM EXPIRATION: 2011 ANNUAL SHAREHOLDERS’ MEETINGThe renewal, for a period of four years, of the term of office of Mrs. Colette Lewiner and the appointment, for a four-year term, of Mr. Frédéric Vincent, Chief operating officer of Nexans since May 2006 (see the description on page 5), and Mr. Guillermo Luksic Craig (see below), as two new directors, will be submitted for approval at the next Shareholders' Meeting.GUILLERMO LUKSIC CRAIG52 YEARS OLD• Other Directorships and positions held: - Member of the Supervisory Board of Ediradio SA (RTL) - Director of Antena 3* and GL Events SA, and within the M6 Group, Extension TV SA, TF6 Gestion SA, and Société Nouvelle de Distribution SA - President of the Association of European Commercial Television (ACT)* • Directorships expired in the past five years: Director of Business Interactif and Hotel Saint Dominique (on his own behalf) • Expertise/Experience : First of all employed by the French Ministry of International Commerce (1974) then appointed General Secretary of the French Chamber of Commerce in Zurich (1976), he joined the cabinet of the Secretary of State of Post and Telecommunications in 1977 where he was posted in 1981 to the Telecommunications Department and then to the public services division of the Video Communications Department. He joined Lyonnaise des Eaux in 1986 as Director of the Audiovisual activities. He has been Managing Director of M6 since its creation in 1987, and was made Chairman of the M6 Group in 2000.• Expertise/Experience : : Guillermo Luksic Craig is Chairman of the Board of Directors of Quiñenco, a business conglomerate listed in Chile, of which he is also a shareholder. He began his career in 1975 with the Quiñenco group and was appointed Chairman of the Board in 1982. He is currently Chairman of the Boards of Directors of the Chilean companies Madeco, CCU (beverage company held by Quiñenco and its strategic partner Heineken, listed in Chile and in the United States), CNT Telefónica del Sur (a leading telecommunications company in the south of Chile), and Viña San Pedro (a company specialized in wine production). Since 2001, he has been a member of the Board of Directors of the second largest bank in the country, Banco de Chile. In 2005, he was appointed member of the Board of Directors of Antofagasta plc, a London-based Chilean mining company with extensive investments in Chile. He is member of and advisor to management bodies of various nonprofit organizations, including the Ena Craig foundation and the Centro de Estudios Publico. He is also a trustee of the Finis Terrae University in Chile.SUMMARY OF THE TERM OF OFFICE EXPIRATION DATES OF NEXANS BOARD MEMBERSYear: 2008 2010 2011 Board member: C. Lewiner G. Hauser F. Polge de Combret G. Caccini JM. Chevalier G. Chodron de Courcel J. Gallot J. Garaïalde JL. Gerondeau E. Rosenberg N. de TavernostORGANIZATION OF THE BOARD OF DIRECTORSSince its listing on the stock exchange, Nexans has adopted a number of rules relating to corporate governance with a view to ensuring transparency of information with respect to both its directors and its shareholders. The Board of Directors is currently made up of 11 members. They come from diverse backgrounds and were selected for their expertise and experience in industry, banking or consultancy, enabling them to give informed opinions and advice in the best interests of the Company. The Combined Shareholders’ Meeting of June 3, 2004 decided to reduce the length of Directors’ term of office from six to four years, starting with terms beginning during the 2004 financial year. No category of shareholder is represented on the Board of Directors, and there is no Director elected by the employees.08* Offices and positions held in foreign companie]]></basicChars>
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	<page id="11">
		<raw><![CDATA[Each year, the Board of Directors reviews the situation of each of its members with regard to the criteria governing independence defined in the combined Viénot-Bouton Report of June 2003 as reflected in the Company’s Internal Regulations. The latter specifies in particular that in the Group’s relations with businesses and banks in which any of its directors have an interest, independence will be determined according to the level of sales made to such companies, which is fixed at 10%, or in respect of investment banks and financial share of business given to them. The aim is to determine whether these relationships are of an importance and nature such that they could affect the independence and freedom of judgment of the directors concerned. Based on these criteria, Gérard Hauser, Georges Chodron de Courcel, and Ervin Rosenberg have declared that they are not independent directors: Gérard Hauser, in view of his position as Chairman and Chief Executive Officer of the Company, and Georges Chodron de Courcel and Ervin Rosenberg, owing to their positions within BNP Paribas and La Compagnie Financière Edmond de Rothschild Banque, respectively, which are two banks with whom the Group has business relationships. The other directors are deemed to be independent directors: Gianpaolo Caccini, Jean-Marie Chevalier, Jérôme Gallot, Jacques Garaïalde, JeanLouis Gerondeau, Colette Lewiner, François Polge de Combret, and Nicolas de Tavernost. Eight out of the eleven directors are therefore independent, representing more than half of the Board members, a proportion in accordance with the recommendations of the Viénot-Bouton Report. There are no family links between the Board members. There are no service contracts between any of the Board members and the Company or any of its subsidiaries. No loans or guarantees have been granted or established for the benefit of a corporate officer by the Company or a company within its Group. To the best knowledge of the Company, during the past five years: • no Board member has been convicted of fraud; • no Board member has been associated with any bankruptcy, placing into receivership, or liquidation of a company; • no Board member has been the subject of an incrimination or official public sanction by any statutory or regulatory authorities; • no Board member has been prohibited by court order from serving on an administrative, executive, or supervisory body of a public company, or from participating in the management of business of a public company.Apart from the related-party transactions discussed on pages 195 and 196 of this Registration document and the agreements relating to the transaction with Madeco described on page 47, no agreements or arrangements have been concluded with the primary shareholders, customers, suppliers, or other parties, under the terms of which a Board member has been selected. Board members are not subject to any restrictions on the sale of their ownership interest in Nexans’ capital, with the exception of any regulations governing insider trading.COMPENSATION PAID TO MEMBERS OF THE BOARD OF DIRECTORSThe Board of Directors Meeting on March 27, 2007 approved the following changes to the methods for setting and paying the Directors’ fees described in the Management Report presented by the Board of Directors on page 61of this Registration document: • each of the Directors, including the Chairman, receives 17,500 euros for the fixed portion; • each of the Directors, including the Chairman, receives an additional 2,000 euros for each Board Meeting attended, subject to a 12,000 euros maximum per Director; • each of the members of the Accounts and Audit Committee receives 3,000 euros per meeting, subject to a12,000 euros maximum per year; • each of the members of the Appointments and Compensation Committee receives 3,000 euros per meeting, subject to a 12,000 euros maximum per year.SUMMARY OF TRANSACTIONS COMPLETED BY CORPORATE OFFICERS AND SENIOR MANAGERS RELATING TO THE COMPANY’S SECURITIES, AS REQUIRED BY ARTICLE L.621-18-2 OF THE FRENCH MONETARY AND FINANCIAL CODEThe table included in the Management Report presented by the Board of Directors on pages 64 and 65 of this Registration document summarizes the transactions completed by Nexans’ corporate officers and Executive Committee members in relation to the Company’s securities during 2007 and disclosed to the AMF.ADDITIONAL INFORMATIONAdditional information regarding the Board of Directors, its various Committees, and Nexans’ senior managers are provided in the Management Report presented by the Board of Directors on pages 59 to 63 of this Registration document, and in the Chairman’s Report on the Board of Directors’ Operations and the Company’s Internal Control Procedures on pages 200 to 209 of this Registration document.ABSENCE OF CONFLICTS OF INTERESTAs mentioned above, some Board members serve as corporate officers and/or senior managers for companies that may enter into contractual agreements with Nexans for commercial and/or financial transactions (as investment advisors and/or managers). Such contracts having been negotiated and signed under normal conditions, the Company is not aware of any possible conflicts of interest between the Board members’ duties towards Nexans and their private interests and/or any of their other obligations.]]></raw>
		<basicChars><![CDATA[Each year, the Board of Directors reviews the situation of each of its members with regard to the criteria governing independence defined in the combined Viénot-Bouton Report of June 2003 as reflected in the Company’s Internal Regulations. The latter specifies in particular that in the Group’s relations with businesses and banks in which any of its directors have an interest, independence will be determined according to the level of sales made to such companies, which is fixed at 10%, or in respect of investment banks and financial share of business given to them. The aim is to determine whether these relationships are of an importance and nature such that they could affect the independence and freedom of judgment of the directors concerned. Based on these criteria, Gérard Hauser, Georges Chodron de Courcel, and Ervin Rosenberg have declared that they are not independent directors: Gérard Hauser, in view of his position as Chairman and Chief Executive Officer of the Company, and Georges Chodron de Courcel and Ervin Rosenberg, owing to their positions within BNP Paribas and La Compagnie Financière Edmond de Rothschild Banque, respectively, which are two banks with whom the Group has business relationships. The other directors are deemed to be independent directors: Gianpaolo Caccini, Jean-Marie Chevalier, Jérôme Gallot, Jacques Garaïalde, JeanLouis Gerondeau, Colette Lewiner, François Polge de Combret, and Nicolas de Tavernost. Eight out of the eleven directors are therefore independent, representing more than half of the Board members, a proportion in accordance with the recommendations of the Viénot-Bouton Report. There are no family links between the Board members. There are no service contracts between any of the Board members and the Company or any of its subsidiaries. No loans or guarantees have been granted or established for the benefit of a corporate officer by the Company or a company within its Group. To the best knowledge of the Company, during the past five years: • no Board member has been convicted of fraud; • no Board member has been associated with any bankruptcy, placing into receivership, or liquidation of a company; • no Board member has been the subject of an incrimination or official public sanction by any statutory or regulatory authorities; • no Board member has been prohibited by court order from serving on an administrative, executive, or supervisory body of a public company, or from participating in the management of business of a public company.Apart from the related-party transactions discussed on pages 195 and 196 of this Registration document and the agreements relating to the transaction with Madeco described on page 47, no agreements or arrangements have been concluded with the primary shareholders, customers, suppliers, or other parties, under the terms of which a Board member has been selected. Board members are not subject to any restrictions on the sale of their ownership interest in Nexans’ capital, with the exception of any regulations governing insider trading.COMPENSATION PAID TO MEMBERS OF THE BOARD OF DIRECTORSThe Board of Directors Meeting on March 27, 2007 approved the following changes to the methods for setting and paying the Directors’ fees described in the Management Report presented by the Board of Directors on page 61of this Registration document: • each of the Directors, including the Chairman, receives 17,500 euros for the fixed portion; • each of the Directors, including the Chairman, receives an additional 2,000 euros for each Board Meeting attended, subject to a 12,000 euros maximum per Director; • each of the members of the Accounts and Audit Committee receives 3,000 euros per meeting, subject to a12,000 euros maximum per year; • each of the members of the Appointments and Compensation Committee receives 3,000 euros per meeting, subject to a 12,000 euros maximum per year.SUMMARY OF TRANSACTIONS COMPLETED BY CORPORATE OFFICERS AND SENIOR MANAGERS RELATING TO THE COMPANY’S SECURITIES, AS REQUIRED BY ARTICLE L.621-18-2 OF THE FRENCH MONETARY AND FINANCIAL CODEThe table included in the Management Report presented by the Board of Directors on pages 64 and 65 of this Registration document summarizes the transactions completed by Nexans’ corporate officers and Executive Committee members in relation to the Company’s securities during 2007 and disclosed to the AMF.ADDITIONAL INFORMATIONAdditional information regarding the Board of Directors, its various Committees, and Nexans’ senior managers are provided in the Management Report presented by the Board of Directors on pages 59 to 63 of this Registration document, and in the Chairman’s Report on the Board of Directors’ Operations and the Company’s Internal Control Procedures on pages 200 to 209 of this Registration document.ABSENCE OF CONFLICTS OF INTERESTAs mentioned above, some Board members serve as corporate officers and/or senior managers for companies that may enter into contractual agreements with Nexans for commercial and/or financial transactions (as investment advisors and/or managers). Such contracts having been negotiated and signed under normal conditions, the Company is not aware of any possible conflicts of interest between the Board members’ duties towards Nexans and their private interests and/or any of their other obligations.]]></basicChars>
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	<page id="12">
		<raw><![CDATA[KEY FIGURESSTRONGER PERFORMANCE7,489 7,412 5,449 4,263 4,442 4,822+8.5%050607050607SALES AT CURRENT NON-FERROUS METAL PRICES In millions of eurosSALES AT CONSTANT NON-FERROUS METAL PRICES In millions of eurosSales at constant non-ferrous metal prices climbed 8.5%; based on constant exchange rates and a comparable scope of consolidation (like-for-like), the increase came to 4.8% over 2006. This increase reflects the 12.1% organic growth in the cable activities, buoyed by the Group’s dynamic sales throughout all its geographical Areas, in infrastructure, industry, and buildings alike.409 260 1868.5 %241 189163+57%4.4 %5.8 %+290050607050607050607OPERATING MARGIN In millions of euros Operating margin jumped 57% compared with 2006. This very positive trend can be attributed to an increase in business activities as well as an increase in high value-added businesses in the Group’s product range.OPERATING MARGIN AT CONSTANT NON-FERROUS METAL PRICES In %ATTRIBUTABLE NET INCOME In millions of euros Net income for the fiscal year grew in line with operating margin. Net income came to 189 million euros in 2007. Excluding extraordinary gains on asset disposals in 2006, net income has doubled in one year.1]]></raw>
		<basicChars><![CDATA[KEY FIGURESSTRONGER PERFORMANCE7,489 7,412 5,449 4,263 4,442 4,822+8.5%050607050607SALES AT CURRENT NON-FERROUS METAL PRICES In millions of eurosSALES AT CONSTANT NON-FERROUS METAL PRICES In millions of eurosSales at constant non-ferrous metal prices climbed 8.5%; based on constant exchange rates and a comparable scope of consolidation (like-for-like), the increase came to 4.8% over 2006. This increase reflects the 12.1% organic growth in the cable activities, buoyed by the Group’s dynamic sales throughout all its geographical Areas, in infrastructure, industry, and buildings alike.409 260 1868.5 %241 189163+57%4.4 %5.8 %+290050607050607050607OPERATING MARGIN In millions of euros Operating margin jumped 57% compared with 2006. This very positive trend can be attributed to an increase in business activities as well as an increase in high value-added businesses in the Group’s product range.OPERATING MARGIN AT CONSTANT NON-FERROUS METAL PRICES In %ATTRIBUTABLE NET INCOME In millions of euros Net income for the fiscal year grew in line with operating margin. Net income came to 189 million euros in 2007. Excluding extraordinary gains on asset disposals in 2006, net income has doubled in one year.1]]></basicChars>
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	<page id="13">
		<raw><![CDATA[10.5%14%19%11.0%12% 12% 8% 8%78.5%2007 SALES BY ACTIVITY AT CONSTANT NON-FERROUS METAL PRICES Change compared with 2006*: Én Energy + 20% Telecom + 8% Electrical wires – 37% * At current exchange rates and scope of consolidation.66%2007 SALES BY GEOGRAPHICAL AREA BY ORIGIN AT CONSTANT NON-FERROUS METAL PRICES65%2007 OPERATING MARGIN BY GEOGRAPHICAL AREA AT CONSTANT NON-FERROUS METAL PRICES Change compared with 2006: Europe + 78% North America + 23% Asia-Pacific + 163% Rest of the World – 15% Note: Operating margin on unallocated operations = –14 million eurosChange compared with 2006*: Europe + 6% North America – 18% Asia-Pacific + 106% Rest of the World + 13%165 120174 1,2781,5891,758 633+5.5%+10.6%374 290-54.2%050607050607050607MANUFACTURING CAPITAL EXPENDITURES In millions of euros The amount of the Group’s expenditures was in line with the plan announced at the beginning of 2007. The largest portion of planned expenditures was allocated to energy infrastructure operations (40%), where demand is very high; the Group’s next biggest area for expenditures was industry (22%).TOTAL EQUITY In millions of euros Total equity rose in line with the increase in income over the year (197 million euros). The Group’s significant equity and its considerably lower net debt enabled the Group to lower its net debt/total equity ratio, which stood at a solid 16% (compared with 40% in 2006).11NET DEBT In millions of euros The Group cut its net debt in half over 2007 (down to 290 million euros) compared with 633 million euros in 2006. These positive results can be attributed to considerably higher cash flow from operations along with successful initiatives taken to lower working capital requirement]]></raw>
		<basicChars><![CDATA[10.5%14%19%11.0%12% 12% 8% 8%78.5%2007 SALES BY ACTIVITY AT CONSTANT NON-FERROUS METAL PRICES Change compared with 2006*: Én Energy + 20% Telecom + 8% Electrical wires – 37% * At current exchange rates and scope of consolidation.66%2007 SALES BY GEOGRAPHICAL AREA BY ORIGIN AT CONSTANT NON-FERROUS METAL PRICES65%2007 OPERATING MARGIN BY GEOGRAPHICAL AREA AT CONSTANT NON-FERROUS METAL PRICES Change compared with 2006: Europe + 78% North America + 23% Asia-Pacific + 163% Rest of the World – 15% Note: Operating margin on unallocated operations = –14 million eurosChange compared with 2006*: Europe + 6% North America – 18% Asia-Pacific + 106% Rest of the World + 13%165 120174 1,2781,5891,758 633+5.5%+10.6%374 290-54.2%050607050607050607MANUFACTURING CAPITAL EXPENDITURES In millions of euros The amount of the Group’s expenditures was in line with the plan announced at the beginning of 2007. The largest portion of planned expenditures was allocated to energy infrastructure operations (40%), where demand is very high; the Group’s next biggest area for expenditures was industry (22%).TOTAL EQUITY In millions of euros Total equity rose in line with the increase in income over the year (197 million euros). The Group’s significant equity and its considerably lower net debt enabled the Group to lower its net debt/total equity ratio, which stood at a solid 16% (compared with 40% in 2006).11NET DEBT In millions of euros The Group cut its net debt in half over 2007 (down to 290 million euros) compared with 633 million euros in 2006. These positive results can be attributed to considerably higher cash flow from operations along with successful initiatives taken to lower working capital requirement]]></basicChars>
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	<page id="14">
		<raw><![CDATA[THE NEXANS SHARENEXANS IS LISTED ON EURONEXT PARIS (COMPARTMENT A)• Deferred settlement service • ISIN Code: FR0000044448 • Par value: 1 euroAVERAGE DAILY TRADING VOLUME236,127 shares in 2007INDEXES• SBF 120: 0.18% of the index as of December 31, 2007 • CACMid 100: 2.24% of the index as of December 31, 2007MARKET CAPITALIZATION2,196 million euros as of December 31, 2007NEXANS’ SHARE PRICE FROM JANUARY 1, 2007 TO FEBRUARY 22, 20081,200,000 1,000,000 800,000 600,000 400,000 200,000 029/12/06 27/02/07 13/04/07 05/06/07 16/08/07 15/10/07 20/12/07- 150 - 120 - 90 - 60 - 30 -0 Share price in euros Volume of traded securities22/02/08Traded volumesSTOCK MARKET DATA (THROUGH 12/31/2007)Share price in euros (except ratios) 2007 2006 2005Highest Lowest Year closing price Change over the year Change in the SBF 120 over the year Market capitalization as of December 31(1) Average daily trading volume(2) Number of issued shares as of December 31 Share turnover (3)(1) In millions of euros. (2) In number of shares. (3) Daily average over the year.131.71 82.69 85.5 – 11.9% + 0.3% 2,195.5 236,127 25,678,355 0.92%97 39.75 97 +141.7% +19.1% 2,450.70 153,335 25,264,955 0.65%41.44 28.91 40.13 + 38.7% + 25.2% 943.35 104,831 23,507,322 0.49%]]></raw>
		<basicChars><![CDATA[THE NEXANS SHARENEXANS IS LISTED ON EURONEXT PARIS (COMPARTMENT A)• Deferred settlement service • ISIN Code: FR0000044448 • Par value: 1 euroAVERAGE DAILY TRADING VOLUME236,127 shares in 2007INDEXES• SBF 120: 0.18% of the index as of December 31, 2007 • CACMid 100: 2.24% of the index as of December 31, 2007MARKET CAPITALIZATION2,196 million euros as of December 31, 2007NEXANS’ SHARE PRICE FROM JANUARY 1, 2007 TO FEBRUARY 22, 20081,200,000 1,000,000 800,000 600,000 400,000 200,000 029/12/06 27/02/07 13/04/07 05/06/07 16/08/07 15/10/07 20/12/07- 150 - 120 - 90 - 60 - 30 -0 Share price in euros Volume of traded securities22/02/08Traded volumesSTOCK MARKET DATA (THROUGH 12/31/2007)Share price in euros (except ratios) 2007 2006 2005Highest Lowest Year closing price Change over the year Change in the SBF 120 over the year Market capitalization as of December 31(1) Average daily trading volume(2) Number of issued shares as of December 31 Share turnover (3)(1) In millions of euros. (2) In number of shares. (3) Daily average over the year.131.71 82.69 85.5 – 11.9% + 0.3% 2,195.5 236,127 25,678,355 0.92%97 39.75 97 +141.7% +19.1% 2,450.70 153,335 25,264,955 0.65%41.44 28.91 40.13 + 38.7% + 25.2% 943.35 104,831 23,507,322 0.49%]]></basicChars>
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	<page id="15">
		<raw><![CDATA[2.00 7.73 1.20 1.0010.257.41 * +93%ESTIMATED OWNERSHIP STRUCTURE AS OF DECEMBER 31, 2007• Total number of shares: 25,678,355 • Total number of voting rights: 25,899,075 • Estimated number of shareholders: approximately 50,000 Share capital+67%050607*050607Institutional shareholders France Institutional shareholders United Kingdom and Ireland Other institutional shareholders Europe Institutional shareholders United States Institutional shareholders Rest of the World Employee shareholders18.9 % 15.4 % 12.9 % 35.1 % 1.6 % 1.0 % 11.3 % 3.8 %NET DIVIDEND In euros* Proposed to the Annual Shareholders’ Meeting on April 22, 2008, for distribution on April 29, 2008.EARNINGS PER SHARE In euros* Excluding extraordinary capital gains in 2006.CHANGES IN CAPITAL IN 2007Share capital Number of shares as of December 31, 2006 Cancelled shares New shares issued* Number of shares as of December 31, 2007 Stock options OCEANE bonds Number of fully diluted shares as of December 31, 2007 25,264,955 – 413,400 25,678,355 1,070,250 3,794,037 30,542,642Individual shareholders Non-identified shareholdersShares registered in the name of the same holder for at least two years carry double voting rights. A shareholder’s voting rights are limited to 8% in the case of single voting rights and 16% in the case of double voting rights of the voting rights attached to shares present or represented when voting on resolutions at an Annual Shareholders’ Meeting.Average number of shares in 2007 used to calculate: - Basic EPS - Fully-diluted EPS* Breakdown of new shares issued: exercise of options.25,553,906 29,895,603PER SHARE DATAIn euros (except ratios) 2007 2006 2005(1)Net assets(2) EPS(3) (4)67.0 7.41 6.67 11.5(6) (5)61.3 10.25 8.93 9.5 1.20 1.2%51.1 7.73 6.63 5.2 1.0 2.5%Diluted EPS PER(5)Net dividend2.00 2.3%Dividend yield(1) IFRS data, restated for the change relating to the recognition of non-ferrous metal inventories. (2) Equity excluding minority interest divided by the number of shares outstanding on December 31. (3) Based on the weighted average number of shares outstanding. (4) Earnings per share if all convertible securities (warrants, convertible bonds, stock options, and rights) are exchanged for common shares, which would increase the number of shares and consequently reduce net earnings per share. (5) Based on the December 31 share price. (6) 2007 dividend proposed to the Annual Shareholders’ Meeting on April 22, 2008.]]></raw>
		<basicChars><![CDATA[2.00 7.73 1.20 1.0010.257.41 * +93%ESTIMATED OWNERSHIP STRUCTURE AS OF DECEMBER 31, 2007• Total number of shares: 25,678,355 • Total number of voting rights: 25,899,075 • Estimated number of shareholders: approximately 50,000 Share capital+67%050607*050607Institutional shareholders France Institutional shareholders United Kingdom and Ireland Other institutional shareholders Europe Institutional shareholders United States Institutional shareholders Rest of the World Employee shareholders18.9 % 15.4 % 12.9 % 35.1 % 1.6 % 1.0 % 11.3 % 3.8 %NET DIVIDEND In euros* Proposed to the Annual Shareholders’ Meeting on April 22, 2008, for distribution on April 29, 2008.EARNINGS PER SHARE In euros* Excluding extraordinary capital gains in 2006.CHANGES IN CAPITAL IN 2007Share capital Number of shares as of December 31, 2006 Cancelled shares New shares issued* Number of shares as of December 31, 2007 Stock options OCEANE bonds Number of fully diluted shares as of December 31, 2007 25,264,955 – 413,400 25,678,355 1,070,250 3,794,037 30,542,642Individual shareholders Non-identified shareholdersShares registered in the name of the same holder for at least two years carry double voting rights. A shareholder’s voting rights are limited to 8% in the case of single voting rights and 16% in the case of double voting rights of the voting rights attached to shares present or represented when voting on resolutions at an Annual Shareholders’ Meeting.Average number of shares in 2007 used to calculate: - Basic EPS - Fully-diluted EPS* Breakdown of new shares issued: exercise of options.25,553,906 29,895,603PER SHARE DATAIn euros (except ratios) 2007 2006 2005(1)Net assets(2) EPS(3) (4)67.0 7.41 6.67 11.5(6) (5)61.3 10.25 8.93 9.5 1.20 1.2%51.1 7.73 6.63 5.2 1.0 2.5%Diluted EPS PER(5)Net dividend2.00 2.3%Dividend yield(1) IFRS data, restated for the change relating to the recognition of non-ferrous metal inventories. (2) Equity excluding minority interest divided by the number of shares outstanding on December 31. (3) Based on the weighted average number of shares outstanding. (4) Earnings per share if all convertible securities (warrants, convertible bonds, stock options, and rights) are exchanged for common shares, which would increase the number of shares and consequently reduce net earnings per share. (5) Based on the December 31 share price. (6) 2007 dividend proposed to the Annual Shareholders’ Meeting on April 22, 2008.]]></basicChars>
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		<raw><![CDATA[SHAREHOLDER INFORMATIONACTIVE DIALOGUE WITH OUR SHAREHOLDERSNexans strives to earn the loyalty of its shareholders by consistently improving its performance, so that its share price climbs and the Group can continue to increase its dividend. Nexans is also concerned with good corporate governance, and provides its investors with faithful, transparent information, while putting all its efforts into keeping its commitments. Registered shares are not subject to safe custody fees, and may receive double voting rights after two years. They also allow the shareholder to receive invitations to the Group’s shareholder meetings and a personal mailing of information about the Company. Investors wishing to purchase pure registered shares should contact their financial intermediary, who will then obtain the necessary registration documents from Société Générale.A WIDE RANGE OF FINANCIAL INFORMATIONNexans strives to earn the trust of its shareholders, and provides regular, complete, and transparent information using a variety of means for different shareholder needs. The Group publishes an Annual Report-Registration Document, a shorter version, the Activity Report, and three Shareholders’ Newsletters. All Nexans’ shareholder information is available on the Group website, www.nexans.com, with a Shareholder’s Corner under “Financial Information” on the home page. For a quick response to questions, contact us or send an e-mail to investor.relation@nexans.com.FINANCIAL CALENDARAnnual Shareholders’ Meeting Publication of 2008 first quarter sales Payment of the dividend Individual shareholders’ information meetings* April 3, 2008 June 5, 2008 September 30, 2008 November 24, 2008* These dates are subject to changeApril 22, 2008 April 22, 2008 April 29, 2008 Saint-Étienne Lille Nice ReimsDIRECT DIALOGUEThe Group gave five presentations for shareholders in Marseille, Clermont-Ferrand, Lille, Strasbourg, and Bordeaux, and for the first time organized a seminar on cables in Paris that was extremely well-received. Shareholders only have to own one share to become a member of the Shareholders’ Club and receive personalized information and invitations to special events. Nexans’ senior managers also held meetings with analysts and investors.SHAREHOLDERS’ CONTACTInvestor Relations Department Nexans – 16, rue de Monceau 75008 Paris Tel.: +33 (0)1 56 69 84 56 Fax: +33 (0)1 56 69 86 40 E-mail: investor.relation@nexans.com Our financial information is also available on the Group’s website: www.nexans.comSECURITIES SERVICESNexans’ securities services are provided by Société Générale, 32, rue du Champ de Tir14BP 81236 - 44312 Nantes Cedex 3 Tel.: +33 (0) 825 820 000 - Fax: +33 (0) 2 51 85 53 ]]></raw>
		<basicChars><![CDATA[SHAREHOLDER INFORMATIONACTIVE DIALOGUE WITH OUR SHAREHOLDERSNexans strives to earn the loyalty of its shareholders by consistently improving its performance, so that its share price climbs and the Group can continue to increase its dividend. Nexans is also concerned with good corporate governance, and provides its investors with faithful, transparent information, while putting all its efforts into keeping its commitments. Registered shares are not subject to safe custody fees, and may receive double voting rights after two years. They also allow the shareholder to receive invitations to the Group’s shareholder meetings and a personal mailing of information about the Company. Investors wishing to purchase pure registered shares should contact their financial intermediary, who will then obtain the necessary registration documents from Société Générale.A WIDE RANGE OF FINANCIAL INFORMATIONNexans strives to earn the trust of its shareholders, and provides regular, complete, and transparent information using a variety of means for different shareholder needs. The Group publishes an Annual Report-Registration Document, a shorter version, the Activity Report, and three Shareholders’ Newsletters. All Nexans’ shareholder information is available on the Group website, www.nexans.com, with a Shareholder’s Corner under “Financial Information” on the home page. For a quick response to questions, contact us or send an e-mail to investor.relation@nexans.com.FINANCIAL CALENDARAnnual Shareholders’ Meeting Publication of 2008 first quarter sales Payment of the dividend Individual shareholders’ information meetings* April 3, 2008 June 5, 2008 September 30, 2008 November 24, 2008* These dates are subject to changeApril 22, 2008 April 22, 2008 April 29, 2008 Saint-Étienne Lille Nice ReimsDIRECT DIALOGUEThe Group gave five presentations for shareholders in Marseille, Clermont-Ferrand, Lille, Strasbourg, and Bordeaux, and for the first time organized a seminar on cables in Paris that was extremely well-received. Shareholders only have to own one share to become a member of the Shareholders’ Club and receive personalized information and invitations to special events. Nexans’ senior managers also held meetings with analysts and investors.SHAREHOLDERS’ CONTACTInvestor Relations Department Nexans – 16, rue de Monceau 75008 Paris Tel.: +33 (0)1 56 69 84 56 Fax: +33 (0)1 56 69 86 40 E-mail: investor.relation@nexans.com Our financial information is also available on the Group’s website: www.nexans.comSECURITIES SERVICESNexans’ securities services are provided by Société Générale, 32, rue du Champ de Tir14BP 81236 - 44312 Nantes Cedex 3 Tel.: +33 (0) 825 820 000 - Fax: +33 (0) 2 51 85 53 ]]></basicChars>
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		<raw><![CDATA[STRATEGY GOALS FOR 2009To boost our development, To become more profitable, more resilient, more focused, and more efficient thanks to increased synergies... ...with energy as the basis of our development.]]></raw>
		<basicChars><![CDATA[STRATEGY GOALS FOR 2009To boost our development, To become more profitable, more resilient, more focused, and more efficient thanks to increased synergies... ...with energy as the basis of our development.]]></basicChars>
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	<page id="18">
		<raw><![CDATA[STRATEGY: GOALS FOR 2009TARGETS FOR 2009 IN FIGURESAverage annual organic growth of 6% (1) Operating margin of between 7 and 10%, depending on the economic environment Positive net cash flow starting from 2008 (2) 30% of earnings from operations paid out in dividends (i.e. net income, Group share excluding non-recurring items)4 CORE ACTIVITIES: ENERGYINFRASTRUCTURE, INDUSTRY, BUILDING, AND LOCAL AREA NETWORKS (LAN)*Nexans has established solid positions in these activities, which offer strong business, technical and operating synergies, and function in accordance with different business cycles. The Group has significant competitive advantages in terms of technology and innovation.The Energy infrastructure market Nexans is working to strengthen its leadership position in power networks, which offer unprecedented prospects for expansion in every area of the world, by enriching its product range, entering new profitable regional markets, and improving its customerfocused culture. The Industry market Nexans plans to increase its positions into profitable, high-growth energy and transport-related market segments in which it can differentiate itself from its competitors. These market segments include oil et gas, nuclear power, railway rolling stock, shipbuilding, material handling, automobiles, aerospace, electronics and robotics.The Building market The building activity allows Nexans to remain solidly established in local markets. Nexans plans to enrich its offering in this market by focusing on high-end products, whose added value is clearly acknowledged by customers. The Local Area Networks market (LAN)* Nexans develops products and services based on high value-added systems combining cables, connectors, administration and security.1 COMPLEMENTARY ACTIVITY:TELECOM INFRASTRUCTUREThis activity completes the Group’s offering. To ensure profitability, only specific niches are being targeted.The Telecom infrastructure market Nexans focuses on high-performing solutions: xDSL applications (high-speed data transfer through copper cables in public switched telephone networks); and systems to deploy Fiber-to-the-Home (FTTH), which allow for internet connection speeds of up to 100 Mbit/s.16(1) Organic growth for the cable businesses, and after changes in scope (disposal of cable harnesses and copper telecom infrastructure cables in Spain, and acquisition of Madeco). (2) Change in net debt. * LANs are communication systems that can link PCs and peripheral devices that are located within a few kilometers of each othe]]></raw>
		<basicChars><![CDATA[STRATEGY: GOALS FOR 2009TARGETS FOR 2009 IN FIGURESAverage annual organic growth of 6% (1) Operating margin of between 7 and 10%, depending on the economic environment Positive net cash flow starting from 2008 (2) 30% of earnings from operations paid out in dividends (i.e. net income, Group share excluding non-recurring items)4 CORE ACTIVITIES: ENERGYINFRASTRUCTURE, INDUSTRY, BUILDING, AND LOCAL AREA NETWORKS (LAN)*Nexans has established solid positions in these activities, which offer strong business, technical and operating synergies, and function in accordance with different business cycles. The Group has significant competitive advantages in terms of technology and innovation.The Energy infrastructure market Nexans is working to strengthen its leadership position in power networks, which offer unprecedented prospects for expansion in every area of the world, by enriching its product range, entering new profitable regional markets, and improving its customerfocused culture. The Industry market Nexans plans to increase its positions into profitable, high-growth energy and transport-related market segments in which it can differentiate itself from its competitors. These market segments include oil et gas, nuclear power, railway rolling stock, shipbuilding, material handling, automobiles, aerospace, electronics and robotics.The Building market The building activity allows Nexans to remain solidly established in local markets. Nexans plans to enrich its offering in this market by focusing on high-end products, whose added value is clearly acknowledged by customers. The Local Area Networks market (LAN)* Nexans develops products and services based on high value-added systems combining cables, connectors, administration and security.1 COMPLEMENTARY ACTIVITY:TELECOM INFRASTRUCTUREThis activity completes the Group’s offering. To ensure profitability, only specific niches are being targeted.The Telecom infrastructure market Nexans focuses on high-performing solutions: xDSL applications (high-speed data transfer through copper cables in public switched telephone networks); and systems to deploy Fiber-to-the-Home (FTTH), which allow for internet connection speeds of up to 100 Mbit/s.16(1) Organic growth for the cable businesses, and after changes in scope (disposal of cable harnesses and copper telecom infrastructure cables in Spain, and acquisition of Madeco). (2) Change in net debt. * LANs are communication systems that can link PCs and peripheral devices that are located within a few kilometers of each othe]]></basicChars>
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	<page id="19">
		<raw><![CDATA[2 ACTIVITIES FOCUSEDON INTERNAL NEEDS: ELECTRICAL WIRES AND WIRERODSNexans’ electrical wires and wirerod activities allow Nexans to ensure high-quality supplies. However, these activities tie up sizeable capital, which is not fully offset by margins on sales to outside customers. Consequently, the Group is scaling back these activities to focus on internal needs.5 GROWTH-ORIENTED AREASNexans is constantly developing and strengthening its geographical presence by focusing on high-growth countries and on promising activities and markets within each Area.Europe Nexans has advanced manufacturing capacity in Europe and is continuing to make selective capital investments, for example, in Norway (high-voltage submarine cables and umbilicals), Germany (power accessories), and Eastern Europe (special cables for various industries). North America Nexans is adding capacity to keep in step with major development and interconnection projects involving power transmission and distribution networks, and is investing to satisfy demand for the roll out of 10 Gbit Local Area Networks. Asia-Pacific In this Area, Nexans focuses on high-tech and value added products. The Group has built up solid, successful business positions in Australia, Japan, China, Korea and Vietnam. It plans to continue strengthening capacity in these countries. Rest of the World Nexans has successfully steered the focus of its business units towards energy infrastructure and industrial applications. The Group is adding to production facilities in Turkey, Morocco and Brazil and is expanding positions in Russia and the Middle East. South America Once the Madeco transaction is completed, Nexans will be the leading cable manufacturer in South America, which will allow the Group to constitute a new development Area.2 ACTIVITIES EARMARKED FOR SALE:CABLE HARNESSES AND COPPER TELECOM CABLES IN SPAINAs part of its decision to manage business more pro-actively, Nexans is exploring opportunities for selling its non-core cable harnesses and copper telecom cable activities in Spain, whose market positions prevent them from achieving critical mass.3 PRIORITIES TO ENSURE TARGETSARE REACHEDNexans is enriching its products’ offering, expanding into new profitable regional markets, and strengthening its customer-focused culture to better satisfy clients expectations and provide them with complete solutions.]]></raw>
		<basicChars><![CDATA[2 ACTIVITIES FOCUSEDON INTERNAL NEEDS: ELECTRICAL WIRES AND WIRERODSNexans’ electrical wires and wirerod activities allow Nexans to ensure high-quality supplies. However, these activities tie up sizeable capital, which is not fully offset by margins on sales to outside customers. Consequently, the Group is scaling back these activities to focus on internal needs.5 GROWTH-ORIENTED AREASNexans is constantly developing and strengthening its geographical presence by focusing on high-growth countries and on promising activities and markets within each Area.Europe Nexans has advanced manufacturing capacity in Europe and is continuing to make selective capital investments, for example, in Norway (high-voltage submarine cables and umbilicals), Germany (power accessories), and Eastern Europe (special cables for various industries). North America Nexans is adding capacity to keep in step with major development and interconnection projects involving power transmission and distribution networks, and is investing to satisfy demand for the roll out of 10 Gbit Local Area Networks. Asia-Pacific In this Area, Nexans focuses on high-tech and value added products. The Group has built up solid, successful business positions in Australia, Japan, China, Korea and Vietnam. It plans to continue strengthening capacity in these countries. Rest of the World Nexans has successfully steered the focus of its business units towards energy infrastructure and industrial applications. The Group is adding to production facilities in Turkey, Morocco and Brazil and is expanding positions in Russia and the Middle East. South America Once the Madeco transaction is completed, Nexans will be the leading cable manufacturer in South America, which will allow the Group to constitute a new development Area.2 ACTIVITIES EARMARKED FOR SALE:CABLE HARNESSES AND COPPER TELECOM CABLES IN SPAINAs part of its decision to manage business more pro-actively, Nexans is exploring opportunities for selling its non-core cable harnesses and copper telecom cable activities in Spain, whose market positions prevent them from achieving critical mass.3 PRIORITIES TO ENSURE TARGETSARE REACHEDNexans is enriching its products’ offering, expanding into new profitable regional markets, and strengthening its customer-focused culture to better satisfy clients expectations and provide them with complete solutions.]]></basicChars>
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	<page id="20">
		<raw><![CDATA[STRATEGY: GOALS FOR 200905 10 01 06 07 02 11 08 09 16 13 12 15 14 1703 18042007: STRATEGY IN ACTIONCapital expenditure: 174 million eurosCANADA Strong margins earned in the building activity. Disposal of winding wire businesses. Wirerod production cut by one-third. FRANCE Capital investments in the production of cables for the Airbus A380 and A350 aircraft. LEBANON Production expanded to encompass instrumentation cables for the oil and gas industry.0107 0813STATES 02 UNITEDproduction of aerospace Increased cables. Broadened range of cables for the building market. Acquisition of The Valley Group, the world expert in thermal rating systems for overhead lines. BRAZIL Start-up of production of insulated energy copper cables and instrumentation cables for industrial applications.ITALY Production of low-voltage, medium-voltage and special cables split between different production sites.KOREA Increased specialization at each production site.14 150309 TURKEY stepped up in the manufacturing Production of cables for the oil and gas industry. Development of LAN business, in particular for the UK market.RUSSIA Creation of a cable production plant to serve the energy infrastructure market segment. Start-up scheduled for 2008.VIETNAM Started production of power and industrial cables in Hanoi. Currently reorganizing cable production for telecom networks. CHINA Doubled capacity for manufacturing industrial cables in Shanghai. New telecom cable production plant set up in Nanning. Disposal of winding wire businesses.1610CHILE Agreement signed for the acquisition of Madeco’s cables business, which will be slotted into Nexans this year. Madeco is the leading cable manufacturer in South America.04NORWAY Increased manufacturing capacity for the production of submarine cables and umbilicals.05 06MOROCCO Planned start-up of production capacities for aerospace cables, to meet demand from locally based integrators.11JAPAN Started production of submarine cables in association with Viscas.17 181812EGYPT Start-up of high-voltage cable production.AUSTRALIA Currently increasing production capacity for high-voltage terrestrial cables.BELGIUM Production capacity increase planned for high-voltage terrestrial cable]]></raw>
		<basicChars><![CDATA[STRATEGY: GOALS FOR 200905 10 01 06 07 02 11 08 09 16 13 12 15 14 1703 18042007: STRATEGY IN ACTIONCapital expenditure: 174 million eurosCANADA Strong margins earned in the building activity. Disposal of winding wire businesses. Wirerod production cut by one-third. FRANCE Capital investments in the production of cables for the Airbus A380 and A350 aircraft. LEBANON Production expanded to encompass instrumentation cables for the oil and gas industry.0107 0813STATES 02 UNITEDproduction of aerospace Increased cables. Broadened range of cables for the building market. Acquisition of The Valley Group, the world expert in thermal rating systems for overhead lines. BRAZIL Start-up of production of insulated energy copper cables and instrumentation cables for industrial applications.ITALY Production of low-voltage, medium-voltage and special cables split between different production sites.KOREA Increased specialization at each production site.14 150309 TURKEY stepped up in the manufacturing Production of cables for the oil and gas industry. Development of LAN business, in particular for the UK market.RUSSIA Creation of a cable production plant to serve the energy infrastructure market segment. Start-up scheduled for 2008.VIETNAM Started production of power and industrial cables in Hanoi. Currently reorganizing cable production for telecom networks. CHINA Doubled capacity for manufacturing industrial cables in Shanghai. New telecom cable production plant set up in Nanning. Disposal of winding wire businesses.1610CHILE Agreement signed for the acquisition of Madeco’s cables business, which will be slotted into Nexans this year. Madeco is the leading cable manufacturer in South America.04NORWAY Increased manufacturing capacity for the production of submarine cables and umbilicals.05 06MOROCCO Planned start-up of production capacities for aerospace cables, to meet demand from locally based integrators.11JAPAN Started production of submarine cables in association with Viscas.17 181812EGYPT Start-up of high-voltage cable production.AUSTRALIA Currently increasing production capacity for high-voltage terrestrial cables.BELGIUM Production capacity increase planned for high-voltage terrestrial cable]]></basicChars>
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	<page id="21">
		<raw><![CDATA[2007 RESULTSENERGY CABLES • 78.5% OF GROUP SALES (UP 12.1% FROM 2006) • 89.2% OF GROUP OPERATING MARGINPositions As the leading global manufacturer of power cables, Nexans holds solid positions in energy infrastructure markets in Europe, North America and the Asia-Pacific region. Worldwide, it is the leading supplier of cables for the shipbuilding, railway rolling stock and petrochemical industries. 2007 results • Sales from the energy business rose 12.1% to 3.78 billion euros. Organic growth came in at 10.2% in energy infrastructure, 17.5% in industrial cables and 10.4% in low-voltage cables for buildings. • Operating margin totaled 365 million euros, or 9.7% of sales. Trends • The outlook for the energy infrastructure market segment worldwide is excellent, due to the need for network reliability, modernization, development, and interconnection. High-voltage submarine cables will be a major growth driver as large-scale projects get underway. Oil et gas is one of the most dynamic industries in the global economy at the present time. Energy needs and environmental constraints are fuelling demand for renewable energy sources. Across all these fields, Nexans has ensured a technological head start and is already testing out tomorrow’s solutions, such as superconductor cables. • In the industry market, Nexans provides advanced solutions for automobiles, aerospace, robotics, shipbuilding and material handling. The Group plans to dispose of its cable harness business, the profile of which does not overlap with other core activities. • In the building market, Nexans has anticipated the upcoming changes in EU standards, supplying high-performing fire-resistant and fire-reaction cables. 2007 results PositionsBY BUSINESS*TELECOM CABLES • 11% OF GROUP SALES (UP 12% FROM 2006) • 12.2% OF GROUP OPERATING MARGINNexans is extremely well-positioned in the supply of telecom cables in Europe and LAN cables in the United States. The Group is focusing expansion on high-growth Asian markets (China, Korea, and Vietnam). Thanks to its highly effective solutions for high-bandwidth transmission and connectivity, the Group also has strong positions in local loop, ADSL, and xDSL technologies.• Sales of telecom cables rose 12% like-for like (constant scope and exchange rates) to 529 million euros. Despite slow market growth worldwide, Nexans’ business was fueled by enhanced customer investments in railway infrastructure and high-speed LAN cables. Organic growth reached 9.9% in telecom infrastructure and 13.9% in Local Area Networks through the Group’s offering of high valueadded cabling systems. • Operating margin totaled 49 million euros, or 9.3% of sales.19* The sales figures given in this section have been calculated at constant metal prices, scope and exchange rates. Operating margin has been calculated on the basis of sales at constant non-ferrous metal price]]></raw>
		<basicChars><![CDATA[2007 RESULTSENERGY CABLES • 78.5% OF GROUP SALES (UP 12.1% FROM 2006) • 89.2% OF GROUP OPERATING MARGINPositions As the leading global manufacturer of power cables, Nexans holds solid positions in energy infrastructure markets in Europe, North America and the Asia-Pacific region. Worldwide, it is the leading supplier of cables for the shipbuilding, railway rolling stock and petrochemical industries. 2007 results • Sales from the energy business rose 12.1% to 3.78 billion euros. Organic growth came in at 10.2% in energy infrastructure, 17.5% in industrial cables and 10.4% in low-voltage cables for buildings. • Operating margin totaled 365 million euros, or 9.7% of sales. Trends • The outlook for the energy infrastructure market segment worldwide is excellent, due to the need for network reliability, modernization, development, and interconnection. High-voltage submarine cables will be a major growth driver as large-scale projects get underway. Oil et gas is one of the most dynamic industries in the global economy at the present time. Energy needs and environmental constraints are fuelling demand for renewable energy sources. Across all these fields, Nexans has ensured a technological head start and is already testing out tomorrow’s solutions, such as superconductor cables. • In the industry market, Nexans provides advanced solutions for automobiles, aerospace, robotics, shipbuilding and material handling. The Group plans to dispose of its cable harness business, the profile of which does not overlap with other core activities. • In the building market, Nexans has anticipated the upcoming changes in EU standards, supplying high-performing fire-resistant and fire-reaction cables. 2007 results PositionsBY BUSINESS*TELECOM CABLES • 11% OF GROUP SALES (UP 12% FROM 2006) • 12.2% OF GROUP OPERATING MARGINNexans is extremely well-positioned in the supply of telecom cables in Europe and LAN cables in the United States. The Group is focusing expansion on high-growth Asian markets (China, Korea, and Vietnam). Thanks to its highly effective solutions for high-bandwidth transmission and connectivity, the Group also has strong positions in local loop, ADSL, and xDSL technologies.• Sales of telecom cables rose 12% like-for like (constant scope and exchange rates) to 529 million euros. Despite slow market growth worldwide, Nexans’ business was fueled by enhanced customer investments in railway infrastructure and high-speed LAN cables. Organic growth reached 9.9% in telecom infrastructure and 13.9% in Local Area Networks through the Group’s offering of high valueadded cabling systems. • Operating margin totaled 49 million euros, or 9.3% of sales.19* The sales figures given in this section have been calculated at constant metal prices, scope and exchange rates. Operating margin has been calculated on the basis of sales at constant non-ferrous metal price]]></basicChars>
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	<page id="22">
		<raw><![CDATA[2007 RESULTS BY BUSINESSTrends In the telecom business, Nexans is continuing to implement a selective strategy focused on promoting high-performing solutions. • The booming market for high-speed internet access has prompted operators to invest in xDSL networks, which allow to meet users’ growing needs for extra bandwidth. Companies’ demand for higher bandwidth shows no signs of abating, and numbers of cable subscribers continue to rise steadily. • Growth drivers for Nexans going forward include unbundling, Local Area Network expansion, second lines in European households for internet access, and telecom infrastructure deployment in developing countries. The Group is a member of the FTTH Council Europe, which lobbies to speed up the deployment of high-speed optical fiber access across Europe, and has developed a full range of cables, connectors and patchcords complying with future standards. Despite having a leading edge in terms of technology, Nexans lacks the scale to remain competitive in copper telecom infrastructure.2007 results • Sales from the electrical wires business dropped by 32.8% likefor-like (constant scope and exchange rates) to 502 million euros. In organic terms, sales of wirerods declined by 38.1% after the Group made a deliberate decision to cut volumes sold to outside customers (down 45% on average, in tons). Sales of bare electrical wires fell 13.7% on an organic basis with more marked declines in France and Germany. • Under the terms of previous agreements, the winding wires businesses in Canada and China were sold to US firm Superior Essex in late April and late July respectively last year. These disposals concerned the Simcoe site in Canada and the 80% holding in Nexans Tianjin Magnet Wires and Cables, in China. Nexans also completed the sale of winding wire activities in Europe in June last year through the sale of its remaining 40% stake in Essex Nexans to Superior Essex. • Operating margin for electrical wires totaled 8.5 million, or 1.7% of sales.ELECTRICAL WIRES • 10.4% OF GROUP SALES (DOWN 32.8% FROM 2006) • OPERATING MARGIN OF 8.5 MILLION EUROSNexans manufactures wirerods, the cable industry’s base product. A large portion of goods produced are purchased by other business units within the Group as a way of guaranteeing a high-quality supply. Nexans has started refocusing the electrical wires business on its own needs. Winding wires are used as magnetic parts in engines, household appliances, cars, etc., and are sold mainly to parts suppliers in the automobile, railway, and aerospace industries. Nexans completed the disposal of this business during 2007.Trends Nexans plans to continue refocusing these business activities on its own requirements and will halt deliveries of wirerods to external customers in Europe.]]></raw>
		<basicChars><![CDATA[2007 RESULTS BY BUSINESSTrends In the telecom business, Nexans is continuing to implement a selective strategy focused on promoting high-performing solutions. • The booming market for high-speed internet access has prompted operators to invest in xDSL networks, which allow to meet users’ growing needs for extra bandwidth. Companies’ demand for higher bandwidth shows no signs of abating, and numbers of cable subscribers continue to rise steadily. • Growth drivers for Nexans going forward include unbundling, Local Area Network expansion, second lines in European households for internet access, and telecom infrastructure deployment in developing countries. The Group is a member of the FTTH Council Europe, which lobbies to speed up the deployment of high-speed optical fiber access across Europe, and has developed a full range of cables, connectors and patchcords complying with future standards. Despite having a leading edge in terms of technology, Nexans lacks the scale to remain competitive in copper telecom infrastructure.2007 results • Sales from the electrical wires business dropped by 32.8% likefor-like (constant scope and exchange rates) to 502 million euros. In organic terms, sales of wirerods declined by 38.1% after the Group made a deliberate decision to cut volumes sold to outside customers (down 45% on average, in tons). Sales of bare electrical wires fell 13.7% on an organic basis with more marked declines in France and Germany. • Under the terms of previous agreements, the winding wires businesses in Canada and China were sold to US firm Superior Essex in late April and late July respectively last year. These disposals concerned the Simcoe site in Canada and the 80% holding in Nexans Tianjin Magnet Wires and Cables, in China. Nexans also completed the sale of winding wire activities in Europe in June last year through the sale of its remaining 40% stake in Essex Nexans to Superior Essex. • Operating margin for electrical wires totaled 8.5 million, or 1.7% of sales.ELECTRICAL WIRES • 10.4% OF GROUP SALES (DOWN 32.8% FROM 2006) • OPERATING MARGIN OF 8.5 MILLION EUROSNexans manufactures wirerods, the cable industry’s base product. A large portion of goods produced are purchased by other business units within the Group as a way of guaranteeing a high-quality supply. Nexans has started refocusing the electrical wires business on its own needs. Winding wires are used as magnetic parts in engines, household appliances, cars, etc., and are sold mainly to parts suppliers in the automobile, railway, and aerospace industries. Nexans completed the disposal of this business during 2007.Trends Nexans plans to continue refocusing these business activities on its own requirements and will halt deliveries of wirerods to external customers in Europe.]]></basicChars>
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	<page id="23">
		<raw><![CDATA[ACTIVITIES * IN 2007Against a backdrop of stronger competition and further increases in raw materials and energy prices, Nexans consolidated its global leadership position in the cable industry and boosted its operating and financial performance. The Group reinforced its manufacturing capacities, continued to post very robust growth in the energy infrastructure sector and enhanced its positions in the industry market, in particular in the oil and gas, aerospace and material handling industries. Nexans also successfully integrated Olex, Australia’s leading cable manufacturer, and announced the acquisition in 2008 of the cable activities of Madeco, the leading cable manufacturer in South America. These acquisitions should further strengthen the Group’s positions in high growth regions.OUR21*For comparison purposes, the sales figures given in this section have been calculated at constant metal prices, scope, exchange rates and accounting method]]></raw>
		<basicChars><![CDATA[ACTIVITIES * IN 2007Against a backdrop of stronger competition and further increases in raw materials and energy prices, Nexans consolidated its global leadership position in the cable industry and boosted its operating and financial performance. The Group reinforced its manufacturing capacities, continued to post very robust growth in the energy infrastructure sector and enhanced its positions in the industry market, in particular in the oil and gas, aerospace and material handling industries. Nexans also successfully integrated Olex, Australia’s leading cable manufacturer, and announced the acquisition in 2008 of the cable activities of Madeco, the leading cable manufacturer in South America. These acquisitions should further strengthen the Group’s positions in high growth regions.OUR21*For comparison purposes, the sales figures given in this section have been calculated at constant metal prices, scope, exchange rates and accounting method]]></basicChars>
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	<page id="24">
		<raw><![CDATA[OUR ACTIVITIES IN 2007EUROPE15, 184EMPLOYEES PLANTS IN COUNTRIES*A VERY GOOD YEAR FOR BOTH SALES AND EARNINGS IN ALL MARKETSSALES:1 73, M€ 215(UP 7.2% ON 2006)OPERATING MARGIN:265M€* AUSTRIA, THE BALTIC STATES, BELGIUM, BULGARIA, CROATIA, THE CZECH REPUBLIC, DENMARK, FINLAND, FRANCE, GERMANY, GREECE, HUNGARY, IRELAND, ITALY, THE NETHERLANDS, NORWAY, POLAND, PORTUGAL, ROMANIA, SERBIA, SLOVAKIA, SLOVENIA, SPAIN, SWEDEN, SWITZERLAND, THE UNITED KINGDOM.A FAVORABLE ENVIRONMENTNexans enjoyed generally favorable economic conditions on the domestic and export markets alike. The Group is benefiting from the development of power networks. Demand for submarine cables and umbilicals was driven up sharply by large interconnection projects and dynamic oil, gas and wind power markets. The order book for high-voltage cables now stands at close to two years of sales. Demand for industrial cables has been particularly strong in many segments. Low-voltage cables for the building market enjoyed robust demand in several countries (France, Norway, Sweden, Benelux and Switzerland). In the telecom business, 2007 saw a recovery in demand for copper cables, sustained business in the railway market segment (signaling cables) and strong growth in optical fiber cables in Belgium, France, Switzerland and Northern Europe.Nexans reaped the rewards of streamlining and investments carried out in the last two years, which aimed at achieving more productive and efficient manufacturing and logistics operations and steering commercial initiatives towards the most profitable and value-enhancing market segments.ONGOING INVESTMENTMore than 113 million euros have been invested in enhancing the performance of manufacturing plants. In Italy, the two main sites, Latina and Battipaglia, have been specialized. In Belgium, the manufacture of cable harnesses for the aerospace industry has been stopped, and production of harnesses for industrial vehicles has been transferred to Slovakia. Investments are to be made at the Draveil plant in France to enable the manufacturing of high value-added cables for the Airbus A380 and A350. The Group has increased capacity at its Halden facility in Norway by more than 50% and started up the Tokyo Bay plant in Japan** to cater for the very strong global demand for high-voltage submarine cables. In high-voltage terrestrial cables, capacity at the Charleroi plant in Belgium is to be expanded.FURTHER STRONG IMPROVEMENTS IN PERFORMANCEThe Europe Area had a very good year in terms of sales and profits. The cable and cabling systems activities reported strong growth across all markets. Sales of electrical wires to external customers dropped by close to 50% in line with the Group’s strategy to refocus on its own requirements.22** High-voltage activity assigned to the Europe Are]]></raw>
		<basicChars><![CDATA[OUR ACTIVITIES IN 2007EUROPE15, 184EMPLOYEES PLANTS IN COUNTRIES*A VERY GOOD YEAR FOR BOTH SALES AND EARNINGS IN ALL MARKETSSALES:1 73, M€ 215(UP 7.2% ON 2006)OPERATING MARGIN:265M€* AUSTRIA, THE BALTIC STATES, BELGIUM, BULGARIA, CROATIA, THE CZECH REPUBLIC, DENMARK, FINLAND, FRANCE, GERMANY, GREECE, HUNGARY, IRELAND, ITALY, THE NETHERLANDS, NORWAY, POLAND, PORTUGAL, ROMANIA, SERBIA, SLOVAKIA, SLOVENIA, SPAIN, SWEDEN, SWITZERLAND, THE UNITED KINGDOM.A FAVORABLE ENVIRONMENTNexans enjoyed generally favorable economic conditions on the domestic and export markets alike. The Group is benefiting from the development of power networks. Demand for submarine cables and umbilicals was driven up sharply by large interconnection projects and dynamic oil, gas and wind power markets. The order book for high-voltage cables now stands at close to two years of sales. Demand for industrial cables has been particularly strong in many segments. Low-voltage cables for the building market enjoyed robust demand in several countries (France, Norway, Sweden, Benelux and Switzerland). In the telecom business, 2007 saw a recovery in demand for copper cables, sustained business in the railway market segment (signaling cables) and strong growth in optical fiber cables in Belgium, France, Switzerland and Northern Europe.Nexans reaped the rewards of streamlining and investments carried out in the last two years, which aimed at achieving more productive and efficient manufacturing and logistics operations and steering commercial initiatives towards the most profitable and value-enhancing market segments.ONGOING INVESTMENTMore than 113 million euros have been invested in enhancing the performance of manufacturing plants. In Italy, the two main sites, Latina and Battipaglia, have been specialized. In Belgium, the manufacture of cable harnesses for the aerospace industry has been stopped, and production of harnesses for industrial vehicles has been transferred to Slovakia. Investments are to be made at the Draveil plant in France to enable the manufacturing of high value-added cables for the Airbus A380 and A350. The Group has increased capacity at its Halden facility in Norway by more than 50% and started up the Tokyo Bay plant in Japan** to cater for the very strong global demand for high-voltage submarine cables. In high-voltage terrestrial cables, capacity at the Charleroi plant in Belgium is to be expanded.FURTHER STRONG IMPROVEMENTS IN PERFORMANCEThe Europe Area had a very good year in terms of sales and profits. The cable and cabling systems activities reported strong growth across all markets. Sales of electrical wires to external customers dropped by close to 50% in line with the Group’s strategy to refocus on its own requirements.22** High-voltage activity assigned to the Europe Are]]></basicChars>
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	<page id="25">
		<raw><![CDATA[RECORD DEMAND FOR HIGH-VOLTAGE CABLES AND UMBILICALSSales of high-voltage cables have risen by 20.5%. This activity has registered record order levels in Europe, the Middle East and Asia. Several new major worldwide technological breakthroughs were made in the field of high-voltage submarine cables in 2007. Notable achievements and contracts signed in 2007 include the NorNed project to connect the Norwegian and Dutch power networks, the new high-voltage link between the Balearic Isles and Spain, and the Horns Rev 2 offshore windfarm currently being built in Denmark. In the umbilicals sector, Nexans supplied an innovative direct electrical heating system for the submarine pipelines used at the Tyrihans oil et gas field off the coast of Norway.A HIKE IN BUILDING SECTOR MARGINSThe building sector also enjoyed strong growth with sales climbing 11.8% and a sharp improvement in operating margin. Nexans continued to extend its range of fire-resistant products. In the area of fire safety, Nexans is already prepared for the new European Commission Construction Products Directive (CPD), which will set new fire-reaction and fire-resistance standards for all cables. The Group has developed a new range of cables with improved fire reaction properties (ALSECURE®) and a range of fire-resistant cables that ensure the continued operation of safety systems during emergency conditions (ALSECURE® PLUS). These ranges were first launched in France, Benelux, Spain, Denmark and Sweden in 2005, and then in the UK, which has particularly stringent requirements for safety cables, in 2006.GOOD PERFORMANCES IN MEDIUM-VOLTAGE AND ACCESSORIESSales of low and medium-voltage cables and connection accessories increased by 7.6%. Medium-voltage cables for power networks benefited from strong demand in France, Switzerland, Norway, Sweden (where the network is being buried), and the UK, where networks are being upgraded ahead of the 2012 Olympic Games. To meet the demand, the Group called on its Greek, Italian and Swiss manufacturing plants to support the local units. Power accessories continued to show strong growth, reflecting the reliability, quality and scope of the products that Nexans offers. The Group masters a wide range of technologies including epoxy resins, polyurethanes, silicon, thermo-retractable and cold shrink. In 2007, the Group gained very significant market share in France and Spain, but also in Eastern Europe.HEALTHY DEMAND FOR TELECOM AND DATA TRANSMISSION CABLESThe telecom infrastructure activity has registered 16.5% growth. Demand for copper cables has picked up. Nexans signed two contracts with Telecom Italia, covering the management of supply to many centers that span the whole of Italy. Sales of optical fiber cables and connectivity accessories were up significantly in Belgium, France, Switzerland and Northern Europe. In the Local Area Networks activity, Nexans cabling systems registered strong growth at the upper end of the range with a complete offering that includes cables, connectors and “intelligent systems”. This offering has been particularly successful in businesses with strong reliability and safety requirements such as airports, data centers and equity trading rooms.OUTLOOKGoing forward, Nexans will be able to draw on optimized manufacturing capacity to serve the major European markets, a wide range of products and services and a proactive sales organization that is ready to seize the many opportunities offered by an enlarged Europe and by export markets. Several capacity increases are either underway or planned in Europe to supply the surging demand for high-voltage submarine and terrestrial cables, and industrial cables for the wind power, oil et gas and nuclear power market segments. At the same time the Group is concentrating a lot of effort into optimizing its manufacturing plants. Nexans is looking at ways of optimizing production between the various units that supply the industry market and has already taken steps to develop synergies. Finally the Group has decided to stop supplying wirerod to external customers in Europe in an effort to reduce its working capital requirement.STRONG RESULTS IN INDUSTRIAL CABLESSales of industrial cables increased by 17.2%, with significantly higher volumes in high value-added segments. All sites contributed to these strong performances. In France, sales of cables for the aerospace, oil et gas, nuclear power, material handling, railway rolling stock and shipbuilding industries jumped 34.8%. In Germany, where business is focused on cables for the robotics, railway, automobile, material handling and shipbuilding industries, sales rose by 13%. In Sweden, where Nexans supplies in particular industrial vehicle manufacturers, growth exceeded 19.3%. Sales of cable harnesses were up 14.5% thanks mainly to the popularity of upmarket German cars. New production sites have been opened in Slovakia and Ukraine to round out the existing production network in Czech Republic and Romania.]]></raw>
		<basicChars><![CDATA[RECORD DEMAND FOR HIGH-VOLTAGE CABLES AND UMBILICALSSales of high-voltage cables have risen by 20.5%. This activity has registered record order levels in Europe, the Middle East and Asia. Several new major worldwide technological breakthroughs were made in the field of high-voltage submarine cables in 2007. Notable achievements and contracts signed in 2007 include the NorNed project to connect the Norwegian and Dutch power networks, the new high-voltage link between the Balearic Isles and Spain, and the Horns Rev 2 offshore windfarm currently being built in Denmark. In the umbilicals sector, Nexans supplied an innovative direct electrical heating system for the submarine pipelines used at the Tyrihans oil et gas field off the coast of Norway.A HIKE IN BUILDING SECTOR MARGINSThe building sector also enjoyed strong growth with sales climbing 11.8% and a sharp improvement in operating margin. Nexans continued to extend its range of fire-resistant products. In the area of fire safety, Nexans is already prepared for the new European Commission Construction Products Directive (CPD), which will set new fire-reaction and fire-resistance standards for all cables. The Group has developed a new range of cables with improved fire reaction properties (ALSECURE®) and a range of fire-resistant cables that ensure the continued operation of safety systems during emergency conditions (ALSECURE® PLUS). These ranges were first launched in France, Benelux, Spain, Denmark and Sweden in 2005, and then in the UK, which has particularly stringent requirements for safety cables, in 2006.GOOD PERFORMANCES IN MEDIUM-VOLTAGE AND ACCESSORIESSales of low and medium-voltage cables and connection accessories increased by 7.6%. Medium-voltage cables for power networks benefited from strong demand in France, Switzerland, Norway, Sweden (where the network is being buried), and the UK, where networks are being upgraded ahead of the 2012 Olympic Games. To meet the demand, the Group called on its Greek, Italian and Swiss manufacturing plants to support the local units. Power accessories continued to show strong growth, reflecting the reliability, quality and scope of the products that Nexans offers. The Group masters a wide range of technologies including epoxy resins, polyurethanes, silicon, thermo-retractable and cold shrink. In 2007, the Group gained very significant market share in France and Spain, but also in Eastern Europe.HEALTHY DEMAND FOR TELECOM AND DATA TRANSMISSION CABLESThe telecom infrastructure activity has registered 16.5% growth. Demand for copper cables has picked up. Nexans signed two contracts with Telecom Italia, covering the management of supply to many centers that span the whole of Italy. Sales of optical fiber cables and connectivity accessories were up significantly in Belgium, France, Switzerland and Northern Europe. In the Local Area Networks activity, Nexans cabling systems registered strong growth at the upper end of the range with a complete offering that includes cables, connectors and “intelligent systems”. This offering has been particularly successful in businesses with strong reliability and safety requirements such as airports, data centers and equity trading rooms.OUTLOOKGoing forward, Nexans will be able to draw on optimized manufacturing capacity to serve the major European markets, a wide range of products and services and a proactive sales organization that is ready to seize the many opportunities offered by an enlarged Europe and by export markets. Several capacity increases are either underway or planned in Europe to supply the surging demand for high-voltage submarine and terrestrial cables, and industrial cables for the wind power, oil et gas and nuclear power market segments. At the same time the Group is concentrating a lot of effort into optimizing its manufacturing plants. Nexans is looking at ways of optimizing production between the various units that supply the industry market and has already taken steps to develop synergies. Finally the Group has decided to stop supplying wirerod to external customers in Europe in an effort to reduce its working capital requirement.STRONG RESULTS IN INDUSTRIAL CABLESSales of industrial cables increased by 17.2%, with significantly higher volumes in high value-added segments. All sites contributed to these strong performances. In France, sales of cables for the aerospace, oil et gas, nuclear power, material handling, railway rolling stock and shipbuilding industries jumped 34.8%. In Germany, where business is focused on cables for the robotics, railway, automobile, material handling and shipbuilding industries, sales rose by 13%. In Sweden, where Nexans supplies in particular industrial vehicle manufacturers, growth exceeded 19.3%. Sales of cable harnesses were up 14.5% thanks mainly to the popularity of upmarket German cars. New production sites have been opened in Slovakia and Ukraine to round out the existing production network in Czech Republic and Romania.]]></basicChars>
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	<page id="26">
		<raw><![CDATA[OUR ACTIVITIES IN 2007NORTHAMERICA1 870 ,EMPLOYEES PLANTS IN SALES COUNTRIES*OPERATING MARGIN:SHARP RISE IN PROFITABILITY3(DOWN 10.2% ON 2006)662M€79M€*CANADA, THE UNITED STATES, MEXICO, CENTRAL AMERICA, AND THE CARIBBEANA MIXED ENVIRONMENT2007 was characterized by a mixed environment with a highly volatile copper price and a weak US dollar. In Canada, the energy infrastructure market remained robust, but demand weakened in the building market and record declines in the US dollar led to increased competition. In the United States, demand for energy infrastructure cables was boosted by networks upgrades and large interconnection projects between the US and Canada. The building market slowed due to a sharp decline in new housing starts, but tertiary and industrial building market segments remained strong. Dollar depreciation led to very strong growth in industry exports, particularly in the aerospace industry which was very buoyant. The Group enjoyed strong demand in the telecom and LAN activities.HIGH PROFITABILITY IN THE BUILDING AND TELECOM NETWORK ACTIVITIESSales of cables for the building market rose by 6.1% and profitability levels were very good. Demand remained strong in the tertiary and industrial market segments, where the Group is strongly positioned. Nexans was only marginally impacted by the slack demand in the residential building since it is not a major player in this segment. Following the launch in Chester (United States) of a new range of solutions for commercial buildings, the Group now has a complete product offering for the North American building market. Sales of LAN cables leapt up 15.6% thanks to the success of high value-added offerings combining cables and connectors and a strong start to sales of very high speed DSL copper cables (10GB). This highend strategy has helped to keep profitability strong.A ROBUST PERFORMANCECable sales grew by 5.4% despite a strike at the plant in Quebec which lasted several months. The decline in total revenues is mainly attributable to deliberate efforts to reduce wirerod sales (–29%). Nexans also fully withdrew from the winding wire business under good conditions, with the sale of the Simcoe manufacturing plant in Ontario to the Essex group. Operating margin improved significantly, reaching 11.9% versus 7.9% in 2006. Energy infrastructure cable sales fell by 13.4% due to the strike at the Quebec plant. The Valley Group** subsidiary, acquired in early 2007, has flourished since joining Nexans. Sales have more than doubled and order levels are excellent.OUTLOOKIn 2008 sales are expected to be supported by demand in energy infrastructure, exports in the capital goods and transportation and the development of high speed data transmission products. Nexans intends to further reduce production of electrical wires and reinforce productivity at its Quebec plant, which provides a solid base for the manufacture of medium-voltage cables. The Group is planning to double its production capacity for 10GB LAN cables and strengthen capacity for aerospace cables in 2008. In the building market, it is looking to step up stock and cost control efforts and focus on the tertiary and industrial segments, where it holds solid positions.STRONG GROWTH IN INDUSTRIAL CABLESSales of industrial cables jumped 22.8%. The ramp-up of the new aerospace cable production line in Elm City (North Carolina) has enabled the Group to keep up with vigorous demand in this industry. Profitability has continued to improve in the aerospace and shipbuilding businesses. A concerted effort by the sales force has led to continued strong growth in sales of high-technology cables manufactured at the Group’s European and Asian plants. The oil et gas industry accounted for the bulk of these sales. Nexans has reinforced its teams in Mexico and opened an office in Venezuela to keep up with growth in this market.24** non-consolidated subsidiar]]></raw>
		<basicChars><![CDATA[OUR ACTIVITIES IN 2007NORTHAMERICA1 870 ,EMPLOYEES PLANTS IN SALES COUNTRIES*OPERATING MARGIN:SHARP RISE IN PROFITABILITY3(DOWN 10.2% ON 2006)662M€79M€*CANADA, THE UNITED STATES, MEXICO, CENTRAL AMERICA, AND THE CARIBBEANA MIXED ENVIRONMENT2007 was characterized by a mixed environment with a highly volatile copper price and a weak US dollar. In Canada, the energy infrastructure market remained robust, but demand weakened in the building market and record declines in the US dollar led to increased competition. In the United States, demand for energy infrastructure cables was boosted by networks upgrades and large interconnection projects between the US and Canada. The building market slowed due to a sharp decline in new housing starts, but tertiary and industrial building market segments remained strong. Dollar depreciation led to very strong growth in industry exports, particularly in the aerospace industry which was very buoyant. The Group enjoyed strong demand in the telecom and LAN activities.HIGH PROFITABILITY IN THE BUILDING AND TELECOM NETWORK ACTIVITIESSales of cables for the building market rose by 6.1% and profitability levels were very good. Demand remained strong in the tertiary and industrial market segments, where the Group is strongly positioned. Nexans was only marginally impacted by the slack demand in the residential building since it is not a major player in this segment. Following the launch in Chester (United States) of a new range of solutions for commercial buildings, the Group now has a complete product offering for the North American building market. Sales of LAN cables leapt up 15.6% thanks to the success of high value-added offerings combining cables and connectors and a strong start to sales of very high speed DSL copper cables (10GB). This highend strategy has helped to keep profitability strong.A ROBUST PERFORMANCECable sales grew by 5.4% despite a strike at the plant in Quebec which lasted several months. The decline in total revenues is mainly attributable to deliberate efforts to reduce wirerod sales (–29%). Nexans also fully withdrew from the winding wire business under good conditions, with the sale of the Simcoe manufacturing plant in Ontario to the Essex group. Operating margin improved significantly, reaching 11.9% versus 7.9% in 2006. Energy infrastructure cable sales fell by 13.4% due to the strike at the Quebec plant. The Valley Group** subsidiary, acquired in early 2007, has flourished since joining Nexans. Sales have more than doubled and order levels are excellent.OUTLOOKIn 2008 sales are expected to be supported by demand in energy infrastructure, exports in the capital goods and transportation and the development of high speed data transmission products. Nexans intends to further reduce production of electrical wires and reinforce productivity at its Quebec plant, which provides a solid base for the manufacture of medium-voltage cables. The Group is planning to double its production capacity for 10GB LAN cables and strengthen capacity for aerospace cables in 2008. In the building market, it is looking to step up stock and cost control efforts and focus on the tertiary and industrial segments, where it holds solid positions.STRONG GROWTH IN INDUSTRIAL CABLESSales of industrial cables jumped 22.8%. The ramp-up of the new aerospace cable production line in Elm City (North Carolina) has enabled the Group to keep up with vigorous demand in this industry. Profitability has continued to improve in the aerospace and shipbuilding businesses. A concerted effort by the sales force has led to continued strong growth in sales of high-technology cables manufactured at the Group’s European and Asian plants. The oil et gas industry accounted for the bulk of these sales. Nexans has reinforced its teams in Mexico and opened an office in Venezuela to keep up with growth in this market.24** non-consolidated subsidiar]]></basicChars>
	</page>
	<page id="27">
		<raw><![CDATA[ASIA-PACIFICSTRONGER POSITIONS, IMPROVED SALES AND PROFITABILITYPLANTS IN SALES:*2, 273 6EMPLOYEESOPERATING MARGIN:COUNTRIES(+13.6% EXCL. OLEX ACQUISITION AND AT CONSTANT EXCHANGE RATES)571M€50M€*SOUTH-EAST ASIA, AUSTRALIA, CHINA, KOREA, INDIA, JAPAN, NEW ZEALAND, OCEANIA, VIETNAMA DYNAMIC ENVIRONMENTThe developing Asian economies continued to grow at a healthy pace, leading to strong demand for cables in all markets despite stronger competition. GDP growth exceeded 5% in Korea. The Vietnamese economy advanced 8% and China broke all previous records, registering growth in excess of 10%. The recovery in the Japanese economy was confirmed and Australia continued to invest robustly in energy infrastructure, industry and the building market. While the building market remained dull in New Zealand, industrial projects are numerous and demand for overhead power lines remained strong.STRONG GROWTH AND A NEW PLANT IN CHINAOrganic growth reached 13.6% in the Area, excluding changes in scope relating to the acquisition of Olex. Operating margin also improved. In China, Nexans opened a third manufacturing site at Nanning in the Guangxi province. This plant manufactures copper telecom cables and will soon produce signaling cables for the railway market. The two other sites manufacturing LAN cables and cables for shipbuilding and industrial applications have continued to register strong growth. Meanwhile, the Group sold its winding wires business in Tianjin. In Korea, new capacity has enabled the Group to keep up with strong demand in the shipbuilding and offshore oil et gas industries. In LAN cables, Nexans has focused on large-scale projects, with improving results. As fierce competition weighs on prices, efficiency in the manufacture of automobile cables has greatly improved. In Vietnam, where Nexans operates three plants, growth was registered in all activities except telecom cables.SOLID MANUFACTURING CAPACITIESNexans’ plants in China, Korea and Vietnam export to ASEAN countries, as well as to Japan, Australia, Oceania and Eastern Russia. The Group significantly strengthened its manufacturing and sales resources, with the acquisition of Olex, the leading cable manufacturer in Australia and Asia-Pacific at the end of 2006. Olex is well positioned in cables for power networks and in special cables, in particular for the mining industry. The company has three manufacturing plants located at Tottenham and Lilydale in Australia and at New Plymouth in New Zealand. This strategic transaction has enabled Nexans to double its sales and substantially improve its operating margin in the Asia-Pacific Area. In 2007, the Area registered operating margin of 50 million euros (8.8% of sales).OUTLOOKNexans’ development in Asia should continue as the Group focuses on high-technology products. In Australia, the Group is planning substantial investment to meet growing demand for high-voltage and special industrial cables. In China, Nexans is benefiting from the arrival of its international customers as well as the development of local industry. It will continue to concentrate on high value-added segments where international standards apply, such as nuclear power, aerospace and airports, railway rolling stock, shipbuilding, port installations and telecommunications. Nexans is looking to double manufacturing capacity in Shanghai in 2008. A rubber mixing plant is to be built in Korea to serve the needs of the Area. In Vietnam, Nexans will start manufacturing telecom network cables at a site jointly owned by Nexans LIOA in Hanoi.OLEX: A SUCCESSFUL INTEGRATIONAt operating level, the integration of Olex went remarkably well, with both industrial and commercial synergies on target. 2007 sales and earnings exceeded expectations. Olex contributed sales of 284 million euros to the Asia-Pacific Area. The start-up of production of high-voltage submarine cables at the Tokyo Bay** plant has also gone according to plan. A first major contract Hainan Island. has been signed in China to provide submarine cables to link up the** High-voltage activity assigned to the Europe Area.]]></raw>
		<basicChars><![CDATA[ASIA-PACIFICSTRONGER POSITIONS, IMPROVED SALES AND PROFITABILITYPLANTS IN SALES:*2, 273 6EMPLOYEESOPERATING MARGIN:COUNTRIES(+13.6% EXCL. OLEX ACQUISITION AND AT CONSTANT EXCHANGE RATES)571M€50M€*SOUTH-EAST ASIA, AUSTRALIA, CHINA, KOREA, INDIA, JAPAN, NEW ZEALAND, OCEANIA, VIETNAMA DYNAMIC ENVIRONMENTThe developing Asian economies continued to grow at a healthy pace, leading to strong demand for cables in all markets despite stronger competition. GDP growth exceeded 5% in Korea. The Vietnamese economy advanced 8% and China broke all previous records, registering growth in excess of 10%. The recovery in the Japanese economy was confirmed and Australia continued to invest robustly in energy infrastructure, industry and the building market. While the building market remained dull in New Zealand, industrial projects are numerous and demand for overhead power lines remained strong.STRONG GROWTH AND A NEW PLANT IN CHINAOrganic growth reached 13.6% in the Area, excluding changes in scope relating to the acquisition of Olex. Operating margin also improved. In China, Nexans opened a third manufacturing site at Nanning in the Guangxi province. This plant manufactures copper telecom cables and will soon produce signaling cables for the railway market. The two other sites manufacturing LAN cables and cables for shipbuilding and industrial applications have continued to register strong growth. Meanwhile, the Group sold its winding wires business in Tianjin. In Korea, new capacity has enabled the Group to keep up with strong demand in the shipbuilding and offshore oil et gas industries. In LAN cables, Nexans has focused on large-scale projects, with improving results. As fierce competition weighs on prices, efficiency in the manufacture of automobile cables has greatly improved. In Vietnam, where Nexans operates three plants, growth was registered in all activities except telecom cables.SOLID MANUFACTURING CAPACITIESNexans’ plants in China, Korea and Vietnam export to ASEAN countries, as well as to Japan, Australia, Oceania and Eastern Russia. The Group significantly strengthened its manufacturing and sales resources, with the acquisition of Olex, the leading cable manufacturer in Australia and Asia-Pacific at the end of 2006. Olex is well positioned in cables for power networks and in special cables, in particular for the mining industry. The company has three manufacturing plants located at Tottenham and Lilydale in Australia and at New Plymouth in New Zealand. This strategic transaction has enabled Nexans to double its sales and substantially improve its operating margin in the Asia-Pacific Area. In 2007, the Area registered operating margin of 50 million euros (8.8% of sales).OUTLOOKNexans’ development in Asia should continue as the Group focuses on high-technology products. In Australia, the Group is planning substantial investment to meet growing demand for high-voltage and special industrial cables. In China, Nexans is benefiting from the arrival of its international customers as well as the development of local industry. It will continue to concentrate on high value-added segments where international standards apply, such as nuclear power, aerospace and airports, railway rolling stock, shipbuilding, port installations and telecommunications. Nexans is looking to double manufacturing capacity in Shanghai in 2008. A rubber mixing plant is to be built in Korea to serve the needs of the Area. In Vietnam, Nexans will start manufacturing telecom network cables at a site jointly owned by Nexans LIOA in Hanoi.OLEX: A SUCCESSFUL INTEGRATIONAt operating level, the integration of Olex went remarkably well, with both industrial and commercial synergies on target. 2007 sales and earnings exceeded expectations. Olex contributed sales of 284 million euros to the Asia-Pacific Area. The start-up of production of high-voltage submarine cables at the Tokyo Bay** plant has also gone according to plan. A first major contract Hainan Island. has been signed in China to provide submarine cables to link up the** High-voltage activity assigned to the Europe Area.]]></basicChars>
	</page>
	<page id="28">
		<raw><![CDATA[OUR ACTIVITIES IN 2007REST OF THE WORLDHIGH POTENTIAL REGIONS, BUOYANT IN 2007PLANTS IN*2, 571EMPLOYEESSALES:COUNTRIES5(UP 14.5% ON 2006)374M€OPERATING MARGIN31M€* SOUTH AMERICA, RUSSIA, THE COMMONWEALTH OF INDEPENDENT STATES (CIS), TURKEY, MOROCCO, EGYPT, LEBANON, THE MIDDLE EAST, PAKISTAN, SOUTH AFRICA.A BURGEONING ECONOMIC CLIMATE IN MOST AREASThe Rest of the World Area comprises South America, Africa, the Middle East, Russia, and the former Soviet Republics. All these regions and countries enjoyed positive trends in 2007. The South American cable market is worth around 4 billion dollars, with firm demand underpinned by large electrification and energy transmission programs, as well as significant needs in the oil et gas, mining and transportation industries. The Middle East and Central Asia are using oil and gas resources to reinforce energy infrastructure, interconnect networks and develop major industrial and tertiary projects. Most African countries are registering solid growth and strong demand for cables. Competition is increasing, notably from Indian, Chinese and Middle Eastern operators.In Russia, the new Ouglich plant is expected to start operating in 2008. The unit will mainly produce power cables for the building and energy networks markets.NEW DEVELOPMENTS IN MOROCCO AND EGYPTIn Morocco, Nexans has benefited from major programs to build and renovate social housing and from strong demand for automobile cables. A new aerospace cables activity is to be launched. In Egypt, The Group has enhanced its production capacities for the oil et gas industry and for medium-voltage cables. Exports mostly target COMESA** countries, where Nexans works in partnership with East African Cables (EAC), which has a commercial network that spans the entire great lakes region. Having acquired a South African cable manufacturer in 2007, EAC is developing an active commercial partnership with Nexans. The Group has won several large contracts in oil et gas in Nigeria, aerial power transmission infrastructure in Niger and in the mining industry in Congo.HEALTHY GROWTHThe Rest of the World Area registered organic growth of 14.5%. Overhead lines in Brazil, building in Turkey, energy infrastructure and special cables for the oil industry in the Middle East: the Group’s main market segments all enjoyed strong momentum. The most recent activities also followed positive trends. Already very active in Brazil supplying aluminum cables for overhead lines and cables for telecom infrastructure and LANs, Nexans has now also started manufacturing insulated copper cables for the country’s energy market as well as cables for the building and industrial markets.OUTLOOKNexans has considerable growth potential in these countries, and has focused its operations on the most profitable markets: energy transmission and distribution, oil et gas, automobiles and building. Urban and rural electrification programs offer very good opportunities in Latin America and Russia, as well as in Africa, where major interconnection projects between Angola, Zaire, Mozambique and Kenya are also being considered. Brazil and Morocco have embarked on major social housing programs. Morocco also represents a close and competitive manufacturing base for Europe. The same can be said for Turkey, which is very focused on the Central Asian Republics, where growth is upbeat. The outlook is very favorable in the Middle East: the six countries in the Gulf Cooperation Council are looking to invest 700 billion dollars in their economies between 2006 and 2010.STRONG PERFORMANCES IN TURKEY AND LEBANONSales of low- and medium-voltage cables have benefited from healthy market conditions in Turkey, where Nexans has two manufacturing plants. Exports to CIS countries were buoyant in all markets and the Group has consolidated production capacity in instrumentation cables for industry. In Lebanon, Nexans has also diversified production by manufacturing cables for the oil et gas industry. Half of all cables manufactured in Lebanon are exported to the Middle East, CIS and Russia in relation with Turkey, and towards Sub-Saharan Africa.26** Common Market for Eastern and Southern Afric]]></raw>
		<basicChars><![CDATA[OUR ACTIVITIES IN 2007REST OF THE WORLDHIGH POTENTIAL REGIONS, BUOYANT IN 2007PLANTS IN*2, 571EMPLOYEESSALES:COUNTRIES5(UP 14.5% ON 2006)374M€OPERATING MARGIN31M€* SOUTH AMERICA, RUSSIA, THE COMMONWEALTH OF INDEPENDENT STATES (CIS), TURKEY, MOROCCO, EGYPT, LEBANON, THE MIDDLE EAST, PAKISTAN, SOUTH AFRICA.A BURGEONING ECONOMIC CLIMATE IN MOST AREASThe Rest of the World Area comprises South America, Africa, the Middle East, Russia, and the former Soviet Republics. All these regions and countries enjoyed positive trends in 2007. The South American cable market is worth around 4 billion dollars, with firm demand underpinned by large electrification and energy transmission programs, as well as significant needs in the oil et gas, mining and transportation industries. The Middle East and Central Asia are using oil and gas resources to reinforce energy infrastructure, interconnect networks and develop major industrial and tertiary projects. Most African countries are registering solid growth and strong demand for cables. Competition is increasing, notably from Indian, Chinese and Middle Eastern operators.In Russia, the new Ouglich plant is expected to start operating in 2008. The unit will mainly produce power cables for the building and energy networks markets.NEW DEVELOPMENTS IN MOROCCO AND EGYPTIn Morocco, Nexans has benefited from major programs to build and renovate social housing and from strong demand for automobile cables. A new aerospace cables activity is to be launched. In Egypt, The Group has enhanced its production capacities for the oil et gas industry and for medium-voltage cables. Exports mostly target COMESA** countries, where Nexans works in partnership with East African Cables (EAC), which has a commercial network that spans the entire great lakes region. Having acquired a South African cable manufacturer in 2007, EAC is developing an active commercial partnership with Nexans. The Group has won several large contracts in oil et gas in Nigeria, aerial power transmission infrastructure in Niger and in the mining industry in Congo.HEALTHY GROWTHThe Rest of the World Area registered organic growth of 14.5%. Overhead lines in Brazil, building in Turkey, energy infrastructure and special cables for the oil industry in the Middle East: the Group’s main market segments all enjoyed strong momentum. The most recent activities also followed positive trends. Already very active in Brazil supplying aluminum cables for overhead lines and cables for telecom infrastructure and LANs, Nexans has now also started manufacturing insulated copper cables for the country’s energy market as well as cables for the building and industrial markets.OUTLOOKNexans has considerable growth potential in these countries, and has focused its operations on the most profitable markets: energy transmission and distribution, oil et gas, automobiles and building. Urban and rural electrification programs offer very good opportunities in Latin America and Russia, as well as in Africa, where major interconnection projects between Angola, Zaire, Mozambique and Kenya are also being considered. Brazil and Morocco have embarked on major social housing programs. Morocco also represents a close and competitive manufacturing base for Europe. The same can be said for Turkey, which is very focused on the Central Asian Republics, where growth is upbeat. The outlook is very favorable in the Middle East: the six countries in the Gulf Cooperation Council are looking to invest 700 billion dollars in their economies between 2006 and 2010.STRONG PERFORMANCES IN TURKEY AND LEBANONSales of low- and medium-voltage cables have benefited from healthy market conditions in Turkey, where Nexans has two manufacturing plants. Exports to CIS countries were buoyant in all markets and the Group has consolidated production capacity in instrumentation cables for industry. In Lebanon, Nexans has also diversified production by manufacturing cables for the oil et gas industry. Half of all cables manufactured in Lebanon are exported to the Middle East, CIS and Russia in relation with Turkey, and towards Sub-Saharan Africa.26** Common Market for Eastern and Southern Afric]]></basicChars>
	</page>
	<page id="29">
		<raw><![CDATA[OURIMPROVEMENTSIN2007A new organizational structure, to better understand and meet our customers’ needs, and new products and solutions to enhance their performance • A “Nexans University”, new training programs, and a new profit-sharing policy • New improvements for industrial efficiency and productivity, logistics and support functions • Innovation in eco-design and recycling • Improved environmental management systems and controls • Progress in sustainable development, renewable energy in particular • A major sponsorship project – restoration of the technical and energy networks at the Palace of Versailles.]]></raw>
		<basicChars><![CDATA[OURIMPROVEMENTSIN2007A new organizational structure, to better understand and meet our customers’ needs, and new products and solutions to enhance their performance • A “Nexans University”, new training programs, and a new profit-sharing policy • New improvements for industrial efficiency and productivity, logistics and support functions • Innovation in eco-design and recycling • Improved environmental management systems and controls • Progress in sustainable development, renewable energy in particular • A major sponsorship project – restoration of the technical and energy networks at the Palace of Versailles.]]></basicChars>
	</page>
	<page id="30">
		<raw><![CDATA[OUR IMPROVEMENTS IN 2007SATISFYINGorganizational structure meets all of these objectives.OUR CUSTOMERSMaking customers the focus of our Group naturally means respecting our commitments to them. It also means better understanding and satisfying their requirements, speeding up time-to-market for new products, developing new services, and establishing a close relationship of mutual trust. Our newGETTING CLOSER TO OUR CUSTOMERSNexans has adapted its sales and operating systems to improve its understanding of market expectations and better serve its customers, locally and worldwide. In addition to country-level organization systems, designed first and foremost to respond to local needs, the Group has developed a specific organization to help its customers in their international development. It has appointed dedicated managers for each of its three principal markets – Industry, Infrastructure and Building – and regional managers are in place for each major geographic Area. For the Industry market, each priority market segment has been entrusted to a Global Segment Manager. The new organization relies on the Industrial Management and Technical Departments to supervise and monitor industrial and RetD operations related to this market. Key Account Managers have also been appointed to strengthen relationships with major customers, whose needs are often diverse and span several countries. These managers have access to all of the Group’s resources to bring customers appropriate and comprehensive solutions.GLOBAL RESEARCH AND DEVELOPMENTNexans’ Research Center (NRC) is dedicated to upstream research on the basic cable components: sheath and insulation. The NRC teams work alongside universities and well-known research institutions and their work is focused on polymer properties to improve cable reliability in complex or extreme environments, flame-retardant properties for cables, and weight and volume reduction, in particular for the aerospace and automotive industries. The Nexans Metallurgy Center (NMC) in Lens, France, carries out upstream research on conductors. Downstream, applied research is conducted in six Competence Centers in Europe and North America. Each of these centers is dedicated to specific products or a key technology. This organizational structure was reinforced in 2007 with the appointment of a Corporate Technical Manager for each market, who ensures coordination between the research, marketing and production teams.]]></raw>
		<basicChars><![CDATA[OUR IMPROVEMENTS IN 2007SATISFYINGorganizational structure meets all of these objectives.OUR CUSTOMERSMaking customers the focus of our Group naturally means respecting our commitments to them. It also means better understanding and satisfying their requirements, speeding up time-to-market for new products, developing new services, and establishing a close relationship of mutual trust. Our newGETTING CLOSER TO OUR CUSTOMERSNexans has adapted its sales and operating systems to improve its understanding of market expectations and better serve its customers, locally and worldwide. In addition to country-level organization systems, designed first and foremost to respond to local needs, the Group has developed a specific organization to help its customers in their international development. It has appointed dedicated managers for each of its three principal markets – Industry, Infrastructure and Building – and regional managers are in place for each major geographic Area. For the Industry market, each priority market segment has been entrusted to a Global Segment Manager. The new organization relies on the Industrial Management and Technical Departments to supervise and monitor industrial and RetD operations related to this market. Key Account Managers have also been appointed to strengthen relationships with major customers, whose needs are often diverse and span several countries. These managers have access to all of the Group’s resources to bring customers appropriate and comprehensive solutions.GLOBAL RESEARCH AND DEVELOPMENTNexans’ Research Center (NRC) is dedicated to upstream research on the basic cable components: sheath and insulation. The NRC teams work alongside universities and well-known research institutions and their work is focused on polymer properties to improve cable reliability in complex or extreme environments, flame-retardant properties for cables, and weight and volume reduction, in particular for the aerospace and automotive industries. The Nexans Metallurgy Center (NMC) in Lens, France, carries out upstream research on conductors. Downstream, applied research is conducted in six Competence Centers in Europe and North America. Each of these centers is dedicated to specific products or a key technology. This organizational structure was reinforced in 2007 with the appointment of a Corporate Technical Manager for each market, who ensures coordination between the research, marketing and production teams.]]></basicChars>
	</page>
	<page id="31">
		<raw><![CDATA[INNOVATION IN STEP WITH CUSTOMER NEEDSNexans acts as a technology partner to its customers and relies on an in-depth understanding of their applications to provide solutions that boost performance, lower costs and facilitate equipment installation. In several major Group plants, Nexans has created application centers that refine and test cables under actual-use conditions. These centers are dedicated to robotics at the Nuremberg plant (Germany), material handling at Lyon (France), and LAN cabling systems at New Holland (United States). They regularly receive customers, and above all enable Nexans to speed up time-to-market, perform comparative trials, and demonstrate how Nexans’ solutions effectively meet customers’ requirements. They provide an important link between the business units and the Group’s Competence Centers. Nexans has appointed Customer Technical Interfaces (CTI) for customers in certain market segments, in particular automotive. These CTIs facilitate dialogue between Nexans’ engineers and the customers’ technical teams and enable the Group to improve its proposals, adapt its programs to changes in customers’ plans and requirements, and undertake joint development projects with customers.EASIER, MORE EFFICIENT AND MORE COST EFFECTIVE SOLUTIONSIn telecoms, Nexans offers cost effective micro-blown optical fiber cable solutions. The NS3 compact closets, launched in 2007, allow 40 times more optical fiber to be interconnected in a limited space (compared to previous systems). In the building market, the Group is developing easy-to-install cables and accessories and a full range of fire-retardant and fire-resistant cables. Nexans also offers a wide range of innovative cables for industrial applications, including Duo Track for railway signaling and special cables for cars such as halogen-free cables that are heat resistant up to 125 °C. The Group launched several new products in 2007, such as compact, ultra flexible cables for wind turbines, ultra-fine cables for ships and integrated LANmark systems for bringing data, internet and TV onboard, highly available solutions for material handling in ports and freight terminals, etc. These innovations were awarded an internal Group Prize.KEY FIGURES- Nine research centers - Almost 600 researchers, engineers and techniciansTECHNOLOGICAL LEADERSHIPNexans is at the leading edge of many of tomorrow’s technologies. The Group is considered a benchmark in high-voltage submarine cables, umbilicals for offshore platforms, and cabling systems for wind turbines and windfarms. It develops composite conductors for aerial cables (which can carry more current), as well as advanced solutions to safeguard overhead lines, to avoid any possible domino effect that could lead to a major power outage.- 63 patents filed in 2007 - 1.25% of sales invested in RetD projects.INDICATORSRetD spending (in millions of euros)2007 2006 200560.2 Number of patents filed200754.653.620062005635957]]></raw>
		<basicChars><![CDATA[INNOVATION IN STEP WITH CUSTOMER NEEDSNexans acts as a technology partner to its customers and relies on an in-depth understanding of their applications to provide solutions that boost performance, lower costs and facilitate equipment installation. In several major Group plants, Nexans has created application centers that refine and test cables under actual-use conditions. These centers are dedicated to robotics at the Nuremberg plant (Germany), material handling at Lyon (France), and LAN cabling systems at New Holland (United States). They regularly receive customers, and above all enable Nexans to speed up time-to-market, perform comparative trials, and demonstrate how Nexans’ solutions effectively meet customers’ requirements. They provide an important link between the business units and the Group’s Competence Centers. Nexans has appointed Customer Technical Interfaces (CTI) for customers in certain market segments, in particular automotive. These CTIs facilitate dialogue between Nexans’ engineers and the customers’ technical teams and enable the Group to improve its proposals, adapt its programs to changes in customers’ plans and requirements, and undertake joint development projects with customers.EASIER, MORE EFFICIENT AND MORE COST EFFECTIVE SOLUTIONSIn telecoms, Nexans offers cost effective micro-blown optical fiber cable solutions. The NS3 compact closets, launched in 2007, allow 40 times more optical fiber to be interconnected in a limited space (compared to previous systems). In the building market, the Group is developing easy-to-install cables and accessories and a full range of fire-retardant and fire-resistant cables. Nexans also offers a wide range of innovative cables for industrial applications, including Duo Track for railway signaling and special cables for cars such as halogen-free cables that are heat resistant up to 125 °C. The Group launched several new products in 2007, such as compact, ultra flexible cables for wind turbines, ultra-fine cables for ships and integrated LANmark systems for bringing data, internet and TV onboard, highly available solutions for material handling in ports and freight terminals, etc. These innovations were awarded an internal Group Prize.KEY FIGURES- Nine research centers - Almost 600 researchers, engineers and techniciansTECHNOLOGICAL LEADERSHIPNexans is at the leading edge of many of tomorrow’s technologies. The Group is considered a benchmark in high-voltage submarine cables, umbilicals for offshore platforms, and cabling systems for wind turbines and windfarms. It develops composite conductors for aerial cables (which can carry more current), as well as advanced solutions to safeguard overhead lines, to avoid any possible domino effect that could lead to a major power outage.- 63 patents filed in 2007 - 1.25% of sales invested in RetD projects.INDICATORSRetD spending (in millions of euros)2007 2006 200560.2 Number of patents filed200754.653.620062005635957]]></basicChars>
	</page>
	<page id="32">
		<raw><![CDATA[OUR IMPROVEMENTS IN 2007DEVELOPINGOUR TEAMSDeveloping skills, promoting customer focus, building commitment, sharing knowledge and best practices, and providing the resources necessary for business growth and development: by building up its teams and helping them express their potential, Nexans is preparing for sustained international expansion.ANTICIPATING HUMAN RESOURCES NEEDSNexans supports its employees by helping them develop their skills in line with the Group’s needs, and by encouraging manager mobility. The Group Human Resources Department sets common policies and procedures and coordinates essential issues such as manager career development, compensation guidelines, training programs, workplace safety, employee access to IT systems, and performance reviews. Teams were strengthened across the Group in 2007, and shared indicators are now in place on an international scale. The forward-looking management of skills needs and career paths is becoming more widespread, led, at both Group and country level, by a Career Management Committee. Annual performance reviews are being put in place for all employees and succession plans for managers are reviewed each year. In 2007, Nexans prepared a skills model for all managers, setting out the skills required for certain functions.Through training, each employee can improve his or her skills and thus better contribute to the Group’s success. Training allows best practices to be shared and unites employees around common values, goals and methods. In 2007, over half of the Group’s total workforce received training, and the Nexans University was created with a view to promoting the &amp;quot;Nexans Way&amp;quot; in all the main fields of management and on an international scale, and encouraging the dissemination of best practices.WORKPLACE HEALTH AND SAFETY: FOCUS ON PREVENTIONNexans is committed to protecting its employees’ health and safety and to ensuring the safety of installations at all sites. In 2007, the Group carried out frequent information and awareness-raising campaigns on safety in the workplace and at home, and has implemented strict on-site programs. Certain Nexans plants in Switzerland, Norway and Turkey have already obtained OHSAS 18001 certification. During the year an action plan was drawn up to improve electric safety in the employees’ day-to-day work. A thorough analysis was made of the most frequent problems and new procedures were rolled out. Eleven sites were accident free in 2007, compared with six the previous year.ATTRACTING TALENT AND DEVELOPING TRAININGThe Group also drives growth through recruitment. When hiring engineers and managers, Nexans gives priority to young graduates able to work in an international environment: 54% of employees hired in 2007 were under 30 years old. Internal promotion and mobility are encouraged. The main management positions available can be viewed on the Group’s intranet site, and a new charter for expatriate employees was drawn up during the year.]]></raw>
		<basicChars><![CDATA[OUR IMPROVEMENTS IN 2007DEVELOPINGOUR TEAMSDeveloping skills, promoting customer focus, building commitment, sharing knowledge and best practices, and providing the resources necessary for business growth and development: by building up its teams and helping them express their potential, Nexans is preparing for sustained international expansion.ANTICIPATING HUMAN RESOURCES NEEDSNexans supports its employees by helping them develop their skills in line with the Group’s needs, and by encouraging manager mobility. The Group Human Resources Department sets common policies and procedures and coordinates essential issues such as manager career development, compensation guidelines, training programs, workplace safety, employee access to IT systems, and performance reviews. Teams were strengthened across the Group in 2007, and shared indicators are now in place on an international scale. The forward-looking management of skills needs and career paths is becoming more widespread, led, at both Group and country level, by a Career Management Committee. Annual performance reviews are being put in place for all employees and succession plans for managers are reviewed each year. In 2007, Nexans prepared a skills model for all managers, setting out the skills required for certain functions.Through training, each employee can improve his or her skills and thus better contribute to the Group’s success. Training allows best practices to be shared and unites employees around common values, goals and methods. In 2007, over half of the Group’s total workforce received training, and the Nexans University was created with a view to promoting the &amp;quot;Nexans Way&amp;quot; in all the main fields of management and on an international scale, and encouraging the dissemination of best practices.WORKPLACE HEALTH AND SAFETY: FOCUS ON PREVENTIONNexans is committed to protecting its employees’ health and safety and to ensuring the safety of installations at all sites. In 2007, the Group carried out frequent information and awareness-raising campaigns on safety in the workplace and at home, and has implemented strict on-site programs. Certain Nexans plants in Switzerland, Norway and Turkey have already obtained OHSAS 18001 certification. During the year an action plan was drawn up to improve electric safety in the employees’ day-to-day work. A thorough analysis was made of the most frequent problems and new procedures were rolled out. Eleven sites were accident free in 2007, compared with six the previous year.ATTRACTING TALENT AND DEVELOPING TRAININGThe Group also drives growth through recruitment. When hiring engineers and managers, Nexans gives priority to young graduates able to work in an international environment: 54% of employees hired in 2007 were under 30 years old. Internal promotion and mobility are encouraged. The main management positions available can be viewed on the Group’s intranet site, and a new charter for expatriate employees was drawn up during the year.]]></basicChars>
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		<raw><![CDATA[AN OPEN LABOR DIALOGUENexans maintains an open dialogue with unions. In 2007, over 70 collective agreements were signed, and in Europe the terms of office of the members of Newco, the European Works Council representing 13 countries, were renewed. The European Works Council held three plenary meetings in 2007, and two additional meetings were held by council officers. The exchanges mainly concerned information provided during acquisitions, disposals and inter-European restructuring projects. The terms and conditions regarding the information to be provided are now set out in a formal charter. When Nexans is required to restructure, it does its utmost to redeploy staff, either within the company or elsewhere. When necessary it offers training and personalized support. On a wider scale, the Group is putting anticipatory measures in place to help employees develop their ability to adapt to new working conditions.INDICATORSTotal employees2007 2006 200521,89821,15019,584Number of new hires (including automotive cable harnesses)2007 2006 20054,248*3,0862,300* 2,151 excluding automotive cable harnesses.Workforce composition in 2007 Men Women 73.2% 26.8%AN ATTRACTIVE COMPENSATION POLICYTo build employee commitment, an attractive, coherent compensation policy is needed. Nexans has established such a policy in a spirit of transparency and fairness while taking into account local conditions. The compensation paid to managers comprises a fixed salary plus a variable bonus tied to goals set at the start of the year, some of which are linked to the financial performance of the Group or the particular entity. The sales teams are also eligible for a profit-sharing scheme and a bonus tied to their entity’s results. Almost all of Nexans’ French subsidiaries have set up employee profit-sharing schemes and many of its international subsidiaries have similar programs depending on the regulations in effect in each country. Nexans has also decided to open its stock option plans to more managers and in 2008 will implement a long-term investment plan. The Group regularly offers global employee share ownership plans. Training in 2007 averaged 18.2 hours per person across the workforce as a whole. The average absenteeism rate was 4.07% (excluding automotive cable harnesses). Employee age pyramid16% 14% 12% 10% 8% 6% 4% 2% 0% 15-20 years 21-25 years 26-30 years 31-35 years 36-40 years 41-45 years 46-50 years 51- 55 years 56-60 years 61-65 years 66-70 years2006 2007NB : Key social data is given on pages 70 to 75.]]></raw>
		<basicChars><![CDATA[AN OPEN LABOR DIALOGUENexans maintains an open dialogue with unions. In 2007, over 70 collective agreements were signed, and in Europe the terms of office of the members of Newco, the European Works Council representing 13 countries, were renewed. The European Works Council held three plenary meetings in 2007, and two additional meetings were held by council officers. The exchanges mainly concerned information provided during acquisitions, disposals and inter-European restructuring projects. The terms and conditions regarding the information to be provided are now set out in a formal charter. When Nexans is required to restructure, it does its utmost to redeploy staff, either within the company or elsewhere. When necessary it offers training and personalized support. On a wider scale, the Group is putting anticipatory measures in place to help employees develop their ability to adapt to new working conditions.INDICATORSTotal employees2007 2006 200521,89821,15019,584Number of new hires (including automotive cable harnesses)2007 2006 20054,248*3,0862,300* 2,151 excluding automotive cable harnesses.Workforce composition in 2007 Men Women 73.2% 26.8%AN ATTRACTIVE COMPENSATION POLICYTo build employee commitment, an attractive, coherent compensation policy is needed. Nexans has established such a policy in a spirit of transparency and fairness while taking into account local conditions. The compensation paid to managers comprises a fixed salary plus a variable bonus tied to goals set at the start of the year, some of which are linked to the financial performance of the Group or the particular entity. The sales teams are also eligible for a profit-sharing scheme and a bonus tied to their entity’s results. Almost all of Nexans’ French subsidiaries have set up employee profit-sharing schemes and many of its international subsidiaries have similar programs depending on the regulations in effect in each country. Nexans has also decided to open its stock option plans to more managers and in 2008 will implement a long-term investment plan. The Group regularly offers global employee share ownership plans. Training in 2007 averaged 18.2 hours per person across the workforce as a whole. The average absenteeism rate was 4.07% (excluding automotive cable harnesses). Employee age pyramid16% 14% 12% 10% 8% 6% 4% 2% 0% 15-20 years 21-25 years 26-30 years 31-35 years 36-40 years 41-45 years 46-50 years 51- 55 years 56-60 years 61-65 years 66-70 years2006 2007NB : Key social data is given on pages 70 to 75.]]></basicChars>
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	<page id="34">
		<raw><![CDATA[OUR IMPROVEMENTS IN 2007IMPROVINGand optimizing purchasing processes and manufacturing capacities.EFFICIENCYAs a partner dedicated to its customer’s performance, Nexans is continually striving to improve the efficiency of its day-to-day operations and to share the benefits of these improvements. The Group is becoming more responsive and more competitive, improving product quality, streamlining logistics,AN EVER-MORE COMPETITIVE INDUSTRIAL BASEThe Group is constantly improving its manufacturing operations in an effort to control costs and adjust to structural changes in demand. It has specialized plants in developed countries, and is growing its capacity in Eastern Europe, North Africa, South America and Asia to meet the growing demand in these markets and serve its global customers. In 2007, the Group carried on its manufacturing improvement program in Europe. Its Italian sites were specialized, and LAN cable production was transferred to Turkey. Nexans also dedicated a significant share of its 500 million euro / 3-year investment plan to upgrade operating performance at all of its plants worldwide.The sales teams benefit from methods developed in accordance with best practices within the Group and other companies. Nexans has appointed country-level Sales Developers who help the sales teams seize opportunities in priority markets as soon as they arise. To provide the best service possible, from order processing through to customer delivery, Nexans has also appointed supply chain managers who coordinate production schedules, procurement, inventory management and shipping. Their goal is to help strengthen customer loyalty by ensuring that customers receive exactly what they ordered on the promised delivery date. This is measured through the On Time In Full (OTIF) performance indicator.OPTIMIZED PURCHASING IMPROVING OPERATING PERFORMANCE…Nexans is managing ongoing improvement programs in all sectors: Program+ for manufacturing and industrial improvements, Service+ for logistics, Sales+ for sales. The main goal of Program+ is to improve operating performance in plants and increase customer satisfaction, which requires strong involvement from all Nexans’ teams. Databases, inter-functions networks, and seminars will contribute to the dissemination of best practices and innovations in key areas. In 2007, plant managers from 28 countries met to discuss the Nexans Guide Book, which describes the ideal plant and can be used as a basis for managers to assess their performance and launch priority action plans. In the face of higher raw materials and energy prices, a number of programs have been set up with respect to energy efficiency, quality control and scrap reduction, through Program+ in particular. Purchases represent the equivalent of approximately 80% of Nexans’ sales and therefore present a huge opportunity for savings. In order to realize these savings, Nexans has increased the internal quantitative and qualitative control, by its Purchasing teams, of the supply of all of its products (copper, aluminum, plastics, additives, components, equipment, energy, and packaging) and services (temporary work and advisory services, transport, IT, and maintenance). It has signed long-term contracts with major metal producers worldwide to secure supply. Cost savings have been generated thanks to a systematic comparison of prices between suppliers and countries, and groupwide contracts have been extended to new countries including Australia and New Zealand, resulting in improved synergies. Finally, supply risk management has been bolstered. A systematic approach to services and equipment has been implemented to increase control by the purchasing function while at the same time generating extensive cost savings. These actions are backed by in-depth work on purchasing processes and the enhanced expertise of the function, notably thanks to training and human resources management.…AND INCREASING SALES EFFICIENCYAll over the world, Nexans is making its processes more reliable,32improving its flexibility, and investing in systems that allow for more efficient inventory management, decreased working capital requirements, and better customer servic]]></raw>
		<basicChars><![CDATA[OUR IMPROVEMENTS IN 2007IMPROVINGand optimizing purchasing processes and manufacturing capacities.EFFICIENCYAs a partner dedicated to its customer’s performance, Nexans is continually striving to improve the efficiency of its day-to-day operations and to share the benefits of these improvements. The Group is becoming more responsive and more competitive, improving product quality, streamlining logistics,AN EVER-MORE COMPETITIVE INDUSTRIAL BASEThe Group is constantly improving its manufacturing operations in an effort to control costs and adjust to structural changes in demand. It has specialized plants in developed countries, and is growing its capacity in Eastern Europe, North Africa, South America and Asia to meet the growing demand in these markets and serve its global customers. In 2007, the Group carried on its manufacturing improvement program in Europe. Its Italian sites were specialized, and LAN cable production was transferred to Turkey. Nexans also dedicated a significant share of its 500 million euro / 3-year investment plan to upgrade operating performance at all of its plants worldwide.The sales teams benefit from methods developed in accordance with best practices within the Group and other companies. Nexans has appointed country-level Sales Developers who help the sales teams seize opportunities in priority markets as soon as they arise. To provide the best service possible, from order processing through to customer delivery, Nexans has also appointed supply chain managers who coordinate production schedules, procurement, inventory management and shipping. Their goal is to help strengthen customer loyalty by ensuring that customers receive exactly what they ordered on the promised delivery date. This is measured through the On Time In Full (OTIF) performance indicator.OPTIMIZED PURCHASING IMPROVING OPERATING PERFORMANCE…Nexans is managing ongoing improvement programs in all sectors: Program+ for manufacturing and industrial improvements, Service+ for logistics, Sales+ for sales. The main goal of Program+ is to improve operating performance in plants and increase customer satisfaction, which requires strong involvement from all Nexans’ teams. Databases, inter-functions networks, and seminars will contribute to the dissemination of best practices and innovations in key areas. In 2007, plant managers from 28 countries met to discuss the Nexans Guide Book, which describes the ideal plant and can be used as a basis for managers to assess their performance and launch priority action plans. In the face of higher raw materials and energy prices, a number of programs have been set up with respect to energy efficiency, quality control and scrap reduction, through Program+ in particular. Purchases represent the equivalent of approximately 80% of Nexans’ sales and therefore present a huge opportunity for savings. In order to realize these savings, Nexans has increased the internal quantitative and qualitative control, by its Purchasing teams, of the supply of all of its products (copper, aluminum, plastics, additives, components, equipment, energy, and packaging) and services (temporary work and advisory services, transport, IT, and maintenance). It has signed long-term contracts with major metal producers worldwide to secure supply. Cost savings have been generated thanks to a systematic comparison of prices between suppliers and countries, and groupwide contracts have been extended to new countries including Australia and New Zealand, resulting in improved synergies. Finally, supply risk management has been bolstered. A systematic approach to services and equipment has been implemented to increase control by the purchasing function while at the same time generating extensive cost savings. These actions are backed by in-depth work on purchasing processes and the enhanced expertise of the function, notably thanks to training and human resources management.…AND INCREASING SALES EFFICIENCYAll over the world, Nexans is making its processes more reliable,32improving its flexibility, and investing in systems that allow for more efficient inventory management, decreased working capital requirements, and better customer servic]]></basicChars>
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		<raw><![CDATA[PROTECTINGTHE ENVIRONMENTNexans has stepped-up its efforts to protect the environment, control its consumption of energy, water and materials, and facilitate product recycling. The Group works alongside its customers to provide solutions that enhance the safety of both people and equipment, respect the landscape and marine life, and encourage the use of clean and renewable energy.ECO-DESIGN AND ECO-PRODUCTIONNexans does its utmost to develop products that meet customers’ needs while having minimum impact on the environment over their entire lifecycle. This includes eliminating lead stabilizers in PVC sheaths, halogens, and solvents; selecting non-polluting materials and materials that are easier to recycle; and designing systems so that cable components can be easily dismantled, making it easier to process end-of-life products. In-depth research is performed to ensure that Nexans’ products are resistant in tough environments, such as deep waters, high pressure, extreme climates, corrosion, and fire, as well as under intense mechanical stress. To help engineers identify the best production techniques available, Nexans’ product developers use EIME (Environmental Information et Management Explorer) software to compare the environmental features of the various options, involving suppliers in the selection process. Nexans also takes care to develop manufacturing processes that are cleaner and consume less energy and raw materials. Quality control is being improved in order to reduce short lengths and scrap. Packaging choices are being optimized, as, on a wider scale are logistics options.The Environment Committee includes representatives from the Strategic Operations, Industrial Management, Technical, Purchasing, Legal, Risk Management, Human Resources and Communications departments. A Group Environmental Manual describes all the objectives, procedures and tools available to each site and a dedicated intranet site compiles the available information and enables sites to share best practices, which are organized by subject matter.REGULAR AUDITS AND EHP LABELThe Group’s voluntary internal environmental management system has been operational for several years. Under this system, twelve environmental issues – covered by an in-depth survey sent to all Group’s manufacturing plants – are audited. Following the audit, plants can be awarded the Nexans EHP label (Environement Hautement Protégé or Highly Protected Environment). By the end of 2007, almost all Nexans’ sites had once again participated in this ongoing improvement program, and 50 of them had already received the internal EHP label, specially adapted to the risks posed by the Group’s activities. Sixteen sites received this label in 2007, and 37 sites had already obtained the ISO 14001 certification. Nexans also undertook a program for analyzing historic soil studies and defined a method for calculating greenhouse gas emissions, which will be tested at three sites in 2008.STRICT ENVIRONMENTAL MANAGEMENTNexans’ environmental and safety policy is outlined in a Risk Management Charter, and includes a thorough analysis of the risks connected with the Group’s products and manufacturing processes, a continuous improvement program and employee training programs on good environmental practices. The environmental policy is steered by the Industrial Management Department, which reports directly to the Strategic Operations33Departmen]]></raw>
		<basicChars><![CDATA[PROTECTINGTHE ENVIRONMENTNexans has stepped-up its efforts to protect the environment, control its consumption of energy, water and materials, and facilitate product recycling. The Group works alongside its customers to provide solutions that enhance the safety of both people and equipment, respect the landscape and marine life, and encourage the use of clean and renewable energy.ECO-DESIGN AND ECO-PRODUCTIONNexans does its utmost to develop products that meet customers’ needs while having minimum impact on the environment over their entire lifecycle. This includes eliminating lead stabilizers in PVC sheaths, halogens, and solvents; selecting non-polluting materials and materials that are easier to recycle; and designing systems so that cable components can be easily dismantled, making it easier to process end-of-life products. In-depth research is performed to ensure that Nexans’ products are resistant in tough environments, such as deep waters, high pressure, extreme climates, corrosion, and fire, as well as under intense mechanical stress. To help engineers identify the best production techniques available, Nexans’ product developers use EIME (Environmental Information et Management Explorer) software to compare the environmental features of the various options, involving suppliers in the selection process. Nexans also takes care to develop manufacturing processes that are cleaner and consume less energy and raw materials. Quality control is being improved in order to reduce short lengths and scrap. Packaging choices are being optimized, as, on a wider scale are logistics options.The Environment Committee includes representatives from the Strategic Operations, Industrial Management, Technical, Purchasing, Legal, Risk Management, Human Resources and Communications departments. A Group Environmental Manual describes all the objectives, procedures and tools available to each site and a dedicated intranet site compiles the available information and enables sites to share best practices, which are organized by subject matter.REGULAR AUDITS AND EHP LABELThe Group’s voluntary internal environmental management system has been operational for several years. Under this system, twelve environmental issues – covered by an in-depth survey sent to all Group’s manufacturing plants – are audited. Following the audit, plants can be awarded the Nexans EHP label (Environement Hautement Protégé or Highly Protected Environment). By the end of 2007, almost all Nexans’ sites had once again participated in this ongoing improvement program, and 50 of them had already received the internal EHP label, specially adapted to the risks posed by the Group’s activities. Sixteen sites received this label in 2007, and 37 sites had already obtained the ISO 14001 certification. Nexans also undertook a program for analyzing historic soil studies and defined a method for calculating greenhouse gas emissions, which will be tested at three sites in 2008.STRICT ENVIRONMENTAL MANAGEMENTNexans’ environmental and safety policy is outlined in a Risk Management Charter, and includes a thorough analysis of the risks connected with the Group’s products and manufacturing processes, a continuous improvement program and employee training programs on good environmental practices. The environmental policy is steered by the Industrial Management Department, which reports directly to the Strategic Operations33Departmen]]></basicChars>
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		<raw><![CDATA[OUR IMPROVEMENTS IN 2007INVESTMENTS OF 4.49 MILLION EUROSNexans’ environmental priorities include protecting the soil, managing water and hazardous fluids, eliminating PCB transformers, replacing oil-burning boilers and old heating systems with less polluting gas boilers and systems that consume less energy, and treating air and gaseous effluents. The Group is particularly focused on phasing out single-wall underground storage tanks. Ongoing improvements are also being made in the retention of liquids, fire extinction water and wastewater. In 2007, investments in wastewater management and treatment were made at many sites, including Halden in Norway, Fumay in France, Chester in the United States and Montréal in Canada. Investments to replace heating units or save energy were made at Chauny in France, Mönchengladbach in Germany, and Milton in the United States.A MAJOR PLAYER IN RECYCLINGThe Group is highly committed to recycling its manufacturing waste, and in 2007 recycled a total of 26,930 tons of waste, including 21,993 tons of production waste from most of its European sites, and 4,937 tons of end-of-life cables collected directly from customers. In 2008, Nexans set up a partnering arrangement between its subsidiary RIPS and Suez Environnement subsidiary Sita, with a view to strengthening recycling activities.INDICATORSConsumption2007 2006(1) 2005(1)Energy consumption of which electricity Waste of which special waste (in tons) Number of sites monitored Water consumption Solvent consumption Copper consumption Aluminum consumption1,715,000 MWh 913,000 MWh 93,500 t 6,200 t 98* 4,743,000 m3 740 t (2) 718,000 t 154,000 t1,615,000 MWh 893,200 MWh 97,500 t 4 800 t 91 4,452,000 m3 1,500 t (3) 841,000 t 140,000 t1,480,800 MWh 838,100 MWh 91,300 t 7,400 t 79 4,430,000 m3 1,500 t (3) 809,000 t 133,000 t(*) Olex is included in the 2007 indicators. (1) Based on previous scope of consolidation. (2) The Simcoe plant has left the consolidated group. Only solvents are taken into account for environmental impact considerations. (3) Including acids and bases (300 t) in addition to solvents.34N.B. Key environmental data is given on pages 68 to 7]]></raw>
		<basicChars><![CDATA[OUR IMPROVEMENTS IN 2007INVESTMENTS OF 4.49 MILLION EUROSNexans’ environmental priorities include protecting the soil, managing water and hazardous fluids, eliminating PCB transformers, replacing oil-burning boilers and old heating systems with less polluting gas boilers and systems that consume less energy, and treating air and gaseous effluents. The Group is particularly focused on phasing out single-wall underground storage tanks. Ongoing improvements are also being made in the retention of liquids, fire extinction water and wastewater. In 2007, investments in wastewater management and treatment were made at many sites, including Halden in Norway, Fumay in France, Chester in the United States and Montréal in Canada. Investments to replace heating units or save energy were made at Chauny in France, Mönchengladbach in Germany, and Milton in the United States.A MAJOR PLAYER IN RECYCLINGThe Group is highly committed to recycling its manufacturing waste, and in 2007 recycled a total of 26,930 tons of waste, including 21,993 tons of production waste from most of its European sites, and 4,937 tons of end-of-life cables collected directly from customers. In 2008, Nexans set up a partnering arrangement between its subsidiary RIPS and Suez Environnement subsidiary Sita, with a view to strengthening recycling activities.INDICATORSConsumption2007 2006(1) 2005(1)Energy consumption of which electricity Waste of which special waste (in tons) Number of sites monitored Water consumption Solvent consumption Copper consumption Aluminum consumption1,715,000 MWh 913,000 MWh 93,500 t 6,200 t 98* 4,743,000 m3 740 t (2) 718,000 t 154,000 t1,615,000 MWh 893,200 MWh 97,500 t 4 800 t 91 4,452,000 m3 1,500 t (3) 841,000 t 140,000 t1,480,800 MWh 838,100 MWh 91,300 t 7,400 t 79 4,430,000 m3 1,500 t (3) 809,000 t 133,000 t(*) Olex is included in the 2007 indicators. (1) Based on previous scope of consolidation. (2) The Simcoe plant has left the consolidated group. Only solvents are taken into account for environmental impact considerations. (3) Including acids and bases (300 t) in addition to solvents.34N.B. Key environmental data is given on pages 68 to 7]]></basicChars>
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		<raw><![CDATA[OUR IMPROVEMENTS IN 2007NEXANS,SPONSOR OF THE PALACE OF VERSAILLESSince June 2007, Nexans has been contributing its cabling and building expertise to the renovation of the Palace of Versailles. This is Nexans’ most ambitious sponsorship project since its creation, marking its dedication to safeguarding one of the world’s most emblematic historical monuments.DONATION OF CABLES AND SKILLS-PARTNERSHIPWith the backing of the Group’s Executive Committee, on June 19, 2007 Nexans formalized its commitment to the project through a corporate sponsorship agreement with the Public Corporation of the National Museum and Estate of the Palace of Versailles. In concrete terms, Nexans is to provide, exclusively and free of charge, the low- and medium-voltage power cables, telecom cables, and optical fiber data cables for the Trianon, the Grand Lodgings and the Royal Opera house. These cables are manufactured at the Autun, Bourg-en-Bresse, Fumay and Lyon plants.A LONG-TERM PARTNERSHIPThe first stage in the renovation work got underway in October 2007, in the Trianon domain. At the end of the year the safety standards in the Opera house were brought into line with current requirements. In Spring 2008, the energy center under the Grand Lodgings will be created, as well as premises to house the Palace’s service facilities. Work will also start in 2008 to modernize the Palace’s energy networks. Finally, the reception hall for unguided individual visitors in the Dufour Pavilion will be revamped and the refurbishment of the Groves of the Ballroom and of the Baths of Apollo is in the pipeline. At the end of this first phase of sponsorship, Nexans would like to remain involved, through the renovation of the Petit Parc, which is also part of the Grand Versailles project.STRINGENT SAFETY REQUIREMENTSWithin the scope of this skills partnership, Nexans will contribute to restoring Versailles’ technical networks, both within the Palace itself and in its domain, as part of the “Grand Versailles” project. This project entails bringing the Royal Opera building in line with current safety standards, modernizing the power networks, creating an energy center under the courtyard of the Grand Lodgings, revamping the unguided visitors reception hall in the Dufour Pavilion, and refurbishing the Groves of the Ballroom and the Baths of Apollo. To ensure protection of the site as well as personal and visitors’ safety, Nexans cables will have enhanced fire-reaction properties. In the event of fire, these halogen-free cables from the ALSECURE range®THE GRAND VERSAILLES PROJECTThe Palace of Versailles, a UNESCO world heritage site since 1979, is one of the world’s most visited monuments, receiving seven million visitors each year. In 2003, the French State and the Palace of Versailles launched the Grand Versailles project, a 17-year renovation program to bring the Palace and its domain back to their original beauty and architectural glory. Visitor reception and safety will also be improved.will enable safety devices to keep working, and emit very little smoke and no toxic gases.]]></raw>
		<basicChars><![CDATA[OUR IMPROVEMENTS IN 2007NEXANS,SPONSOR OF THE PALACE OF VERSAILLESSince June 2007, Nexans has been contributing its cabling and building expertise to the renovation of the Palace of Versailles. This is Nexans’ most ambitious sponsorship project since its creation, marking its dedication to safeguarding one of the world’s most emblematic historical monuments.DONATION OF CABLES AND SKILLS-PARTNERSHIPWith the backing of the Group’s Executive Committee, on June 19, 2007 Nexans formalized its commitment to the project through a corporate sponsorship agreement with the Public Corporation of the National Museum and Estate of the Palace of Versailles. In concrete terms, Nexans is to provide, exclusively and free of charge, the low- and medium-voltage power cables, telecom cables, and optical fiber data cables for the Trianon, the Grand Lodgings and the Royal Opera house. These cables are manufactured at the Autun, Bourg-en-Bresse, Fumay and Lyon plants.A LONG-TERM PARTNERSHIPThe first stage in the renovation work got underway in October 2007, in the Trianon domain. At the end of the year the safety standards in the Opera house were brought into line with current requirements. In Spring 2008, the energy center under the Grand Lodgings will be created, as well as premises to house the Palace’s service facilities. Work will also start in 2008 to modernize the Palace’s energy networks. Finally, the reception hall for unguided individual visitors in the Dufour Pavilion will be revamped and the refurbishment of the Groves of the Ballroom and of the Baths of Apollo is in the pipeline. At the end of this first phase of sponsorship, Nexans would like to remain involved, through the renovation of the Petit Parc, which is also part of the Grand Versailles project.STRINGENT SAFETY REQUIREMENTSWithin the scope of this skills partnership, Nexans will contribute to restoring Versailles’ technical networks, both within the Palace itself and in its domain, as part of the “Grand Versailles” project. This project entails bringing the Royal Opera building in line with current safety standards, modernizing the power networks, creating an energy center under the courtyard of the Grand Lodgings, revamping the unguided visitors reception hall in the Dufour Pavilion, and refurbishing the Groves of the Ballroom and the Baths of Apollo. To ensure protection of the site as well as personal and visitors’ safety, Nexans cables will have enhanced fire-reaction properties. In the event of fire, these halogen-free cables from the ALSECURE range®THE GRAND VERSAILLES PROJECTThe Palace of Versailles, a UNESCO world heritage site since 1979, is one of the world’s most visited monuments, receiving seven million visitors each year. In 2003, the French State and the Palace of Versailles launched the Grand Versailles project, a 17-year renovation program to bring the Palace and its domain back to their original beauty and architectural glory. Visitor reception and safety will also be improved.will enable safety devices to keep working, and emit very little smoke and no toxic gases.]]></basicChars>
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		<raw><![CDATA[FINANCIAL AND LEGAL INFORMATION38MANAGEMENT REPORT CONSOLIDATED FINANCIAL STATEMENTSConsolidated income statement Consolidated balance sheet Consolidated statement of cash flows Consolidated statement of changes in equity Notes to the consolidated financial statements78 79 80 82 83 85159 Statutory Auditors’ report on the consolidated financial statements161PARENT COMPANY FINANCIAL STATEMENTS162 Balance sheet 164 Income statement 166 List of subsidiaries and associates 167 Notes to the parent company financial statements 169 Notes to the balance sheet 177 Notes to the income statement 178 Miscellaneous information 181 Statutory Auditors’ report on the parent company financial statements182LEGAL INFORMATION183 Other legal information 185 Shareholders’ rights and obligations 187 General information on the company and its capital 188 Information on the company’s capital and voting rights 194 Auditors of Nexans 195 Related-party agreements 197 Statutory Auditors’ report on related-party agreements 200 Chairman’s report on the Board of Directors’ operations and the company’s internal control procedure 210 Statutory Auditors’ report on the Chairman’s report 212 Concordance table 211 Person responsible for the Registration document]]></raw>
		<basicChars><![CDATA[FINANCIAL AND LEGAL INFORMATION38MANAGEMENT REPORT CONSOLIDATED FINANCIAL STATEMENTSConsolidated income statement Consolidated balance sheet Consolidated statement of cash flows Consolidated statement of changes in equity Notes to the consolidated financial statements78 79 80 82 83 85159 Statutory Auditors’ report on the consolidated financial statements161PARENT COMPANY FINANCIAL STATEMENTS162 Balance sheet 164 Income statement 166 List of subsidiaries and associates 167 Notes to the parent company financial statements 169 Notes to the balance sheet 177 Notes to the income statement 178 Miscellaneous information 181 Statutory Auditors’ report on the parent company financial statements182LEGAL INFORMATION183 Other legal information 185 Shareholders’ rights and obligations 187 General information on the company and its capital 188 Information on the company’s capital and voting rights 194 Auditors of Nexans 195 Related-party agreements 197 Statutory Auditors’ report on related-party agreements 200 Chairman’s report on the Board of Directors’ operations and the company’s internal control procedure 210 Statutory Auditors’ report on the Chairman’s report 212 Concordance table 211 Person responsible for the Registration document]]></basicChars>
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		<raw><![CDATA[REPORTThe purpose of this report is to present an overview of the operations and results of the Nexans Group and its parent company for the year ended December 31, 2007. It is based on the parent company’s financial statements and consolidated financial statements at December 31, 2007. Nexans’ shares are traded on the Euronext Paris market (Compartment A) of NYSE Euronext, and are included in the SBF 120 index. The Company’s estimated ownership structure, broken down by shareholder category, was as follows at March 15, 2007: (i) institutional investors – France: 24.5%; the UK and Ireland: 28.4%; other European countries: 8.8%; USA: 25.6%; other countries: 1.9%; (ii) private investors and employees: 9.6%; and (iii) unidentified shareholders: 1.2%.MANAGEMENT PRESENTED(Year ended December 31, 2007)BY THE BOARD OF DIRECTORS TO THE ANNUAL SHAREHOLDERS’ MEETINGBased on constant non-ferrous metal prices, constant exchange rates and a comparable scope of consolidation, net sales growth came to 4.8%. This overall increase reflects mixed performances across the Group’s businesses. Cable operations (Energy and Telecom businesses combined) generated organic sales growth of 12.1%, whereas sales for the Electrical Wires business contracted 32.8% year-on-year following the launch of measures to focus operations purely on the Group’s internal requirements. Operating margin amounted to 409 million euros in 2007, or 8.5% of sales at constant non-ferrous metal prices (5.5% at current non-ferrous metal prices), compared with 260 million euros, or 5.8% of sales at constant non-ferrous metal prices (3.5% at current non-ferrous metal prices) one year earlier. EBITDA (earnings before interest, tax, depreciation and amortization) amounted to 510 million euros, or 10.6% of sales at constant metal prices, versus the 2006 figure of 354 million euros, or 8.0% of sales at constant non-ferrous metal11.1OPERATIONS DURING 2007CONSOLIDATED RESULTS OF THE NEXANS GROUPprices. Consolidated income before taxes decreased to 281 million euros from 297 million euros in 2006 when the figure included a 149 million euro pre-tax gain on the sale of the Group’s distribution business in Switzerland. The Group ended the year with attributable net income of 189 million euros compared with 241 million euros in 2006.1.1.1 Overview Net sales for 2007 totaled 7,412 million euros, compared with 7,489 million euros in 2006. At constant non-ferrous metal prices, net sales rose 8.5% from 4,442 million euros in 2006 to 4,822 million euros. The 2007 net sales figure includes 284 million euros contributed by Olex, an Australian company acquired by the Group in late 2006 which corresponded to the most significant change in scope of consolidation for the year.]]></raw>
		<basicChars><![CDATA[REPORTThe purpose of this report is to present an overview of the operations and results of the Nexans Group and its parent company for the year ended December 31, 2007. It is based on the parent company’s financial statements and consolidated financial statements at December 31, 2007. Nexans’ shares are traded on the Euronext Paris market (Compartment A) of NYSE Euronext, and are included in the SBF 120 index. The Company’s estimated ownership structure, broken down by shareholder category, was as follows at March 15, 2007: (i) institutional investors – France: 24.5%; the UK and Ireland: 28.4%; other European countries: 8.8%; USA: 25.6%; other countries: 1.9%; (ii) private investors and employees: 9.6%; and (iii) unidentified shareholders: 1.2%.MANAGEMENT PRESENTED(Year ended December 31, 2007)BY THE BOARD OF DIRECTORS TO THE ANNUAL SHAREHOLDERS’ MEETINGBased on constant non-ferrous metal prices, constant exchange rates and a comparable scope of consolidation, net sales growth came to 4.8%. This overall increase reflects mixed performances across the Group’s businesses. Cable operations (Energy and Telecom businesses combined) generated organic sales growth of 12.1%, whereas sales for the Electrical Wires business contracted 32.8% year-on-year following the launch of measures to focus operations purely on the Group’s internal requirements. Operating margin amounted to 409 million euros in 2007, or 8.5% of sales at constant non-ferrous metal prices (5.5% at current non-ferrous metal prices), compared with 260 million euros, or 5.8% of sales at constant non-ferrous metal prices (3.5% at current non-ferrous metal prices) one year earlier. EBITDA (earnings before interest, tax, depreciation and amortization) amounted to 510 million euros, or 10.6% of sales at constant metal prices, versus the 2006 figure of 354 million euros, or 8.0% of sales at constant non-ferrous metal11.1OPERATIONS DURING 2007CONSOLIDATED RESULTS OF THE NEXANS GROUPprices. Consolidated income before taxes decreased to 281 million euros from 297 million euros in 2006 when the figure included a 149 million euro pre-tax gain on the sale of the Group’s distribution business in Switzerland. The Group ended the year with attributable net income of 189 million euros compared with 241 million euros in 2006.1.1.1 Overview Net sales for 2007 totaled 7,412 million euros, compared with 7,489 million euros in 2006. At constant non-ferrous metal prices, net sales rose 8.5% from 4,442 million euros in 2006 to 4,822 million euros. The 2007 net sales figure includes 284 million euros contributed by Olex, an Australian company acquired by the Group in late 2006 which corresponded to the most significant change in scope of consolidation for the year.]]></basicChars>
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		<raw><![CDATA[1.1.2 Analysis of the Group’s consolidated results (Sales figures by origin at constant non-ferrous metal prices) 1.1.2.1 BY BUSINESSNexans won a number of major high-voltage cable contracts during the year, notably for connecting islands to mainland power networks which has boosted the Group’s order book for the coming months and years. • Medium-voltage cables reported 16.4% sales growth in 2007, reflecting the first-time consolidation of the Olex group. Olex was the main contributor to medium-voltage cable sales during the year. Like-for-like sales growth was 2.7% for the year as a whole, with the increase coming in slightly higher for the second half than for the first six months. This moderate organic growth figure reflects the impact of the strike at the Group’s Quebec plant in Canada which only ended in April 2007. In Europe, demand was high in Scandinavia as well as in France and Switzerland. Germany was a main growth driver in the manufacture of low high-voltage cables for export infrastructure contracts and other export projects. In North America, sales generated by medium-voltage cable operations were 5.1% higher in the second half of the year than in the first six months, which saw a 24.9% year-on-year contraction, mainly due to the strike at the Quebec facility. Altogether, the year-on-year decrease came to 13.4%. Lastly, as a result of the capacity investments, sales continued to rise in fast-developing countries, with Egypt and Lebanon reporting increases of 18% and 63.3% respectively. • Power Accessories sales jumped 19.8%. This performance reflects significant market share gains in France and Spain achieved on the strength of the quality and reliability of Nexans’ range of cold-shrink joints. Industrial cables The Industrial cables activity posted a 17.5% increase on a like-for-like basis. Sales of special cables were up 19.1%, thanks to especially strong growth in the market segments pinpointed by the Group as particular priorities – the oil, gas, shipbuilding, railway, robotic and automotive industries. Sales of electronic cables for industrial markets rose 15.9% on the back of robust growth in the Chinese and US aeronautical and special cables markets. Sales of harnesses advanced 14.5%, fueled by business expansion in Europe that was driven by successful high-end products for the German automotive industry. Competition is increasingly tough in this sector, however, with strong pressure on prices and rising labor costs in the Group’s plants, particularly in Romania.ENERGY (*)Energy sales amounted to 3,780 million euros (up 20.3% on 2006, and 12.1% on a like-for-like basis, based on comparable scope of consolidation and constant exchange rates). The main impact on the scope of consolidation during the period resulted from the acquisition of Olex. Energy Infrastructure Energy Infrastructure sales climbed 10.2% on a like-for-like basis in 2007. Year-on-year growth was stronger during the second half of the year, reaching 13.4% versus 6.5% for the first six months. This solid second-half performance was driven by a sharp rise in sales of high-voltage cables during the period. • Sales reported by high-voltage cable operations rose by 19.6% for 2007 as a whole and by 30.9% during the second half of the year. In the terrestrial cables sector, sales performance for the year reflected contracts signed primarily in the Middle East (Qatar 400kV, 220kV and 66kV, Abu Dhabi 400kV, Kuwait 132kV) as well as a steady stream of business with power network operators in France, Belgium and Spain. Submarine and umbilical cable sales derived from (i) the NorNed contract (a subsea transmission link connecting Norway and the Netherlands); (ii) the Long Island Replacement Cable contract in the United States (a network upgrading project); (iii) a Norwegian contract relating to the supply of a direct electrical heating (DEH) system for the subsea flowlines in the Tyrihans oil et gas field in the Norwegian Sea, (iv) the contract signed with the Abu Dhabi Water et Electricity Authority to supply and install the cables to create a new power link between Abu Dhabi’s mainland network and Delma Island; and (v) the contract awarded in first-half 2007 to manufacture and install a 500kV submarine power link to connect Hainan Island at the south end of China to the Chinese mainland in Guangdong province. The ramp-up in second-half 2007 of the Group’s new Tokyo Bay facility in Japan – a joint venture set up with Viscas that is majority controlled by Nexans – was also a strong growth driver in the second six months of the year. At the same time, demand was extremely high in 2007 for submarine cables used for the remote operation of underwater robots and vehicles, led by continued developments in the oil et gas industry.39(*) In accordance with the Group’s new segmentation as set out in its strategic plan, submarine cables used for the remote operation of underwater robots and vehicles are now included in the Energy Infrastructure activity, and electronic cables are classified as part of the Industry activity based on similarities between end-markets and customers. As a result, these cables are included within the Energy business for 2007 rather than in Telecom as was previously the case. Net sales generated by these operations in 2007 totaled 213 million euros (based on constant non-ferrous metal prices) compared with 160 million euros in 200]]></raw>
		<basicChars><![CDATA[1.1.2 Analysis of the Group’s consolidated results (Sales figures by origin at constant non-ferrous metal prices) 1.1.2.1 BY BUSINESSNexans won a number of major high-voltage cable contracts during the year, notably for connecting islands to mainland power networks which has boosted the Group’s order book for the coming months and years. • Medium-voltage cables reported 16.4% sales growth in 2007, reflecting the first-time consolidation of the Olex group. Olex was the main contributor to medium-voltage cable sales during the year. Like-for-like sales growth was 2.7% for the year as a whole, with the increase coming in slightly higher for the second half than for the first six months. This moderate organic growth figure reflects the impact of the strike at the Group’s Quebec plant in Canada which only ended in April 2007. In Europe, demand was high in Scandinavia as well as in France and Switzerland. Germany was a main growth driver in the manufacture of low high-voltage cables for export infrastructure contracts and other export projects. In North America, sales generated by medium-voltage cable operations were 5.1% higher in the second half of the year than in the first six months, which saw a 24.9% year-on-year contraction, mainly due to the strike at the Quebec facility. Altogether, the year-on-year decrease came to 13.4%. Lastly, as a result of the capacity investments, sales continued to rise in fast-developing countries, with Egypt and Lebanon reporting increases of 18% and 63.3% respectively. • Power Accessories sales jumped 19.8%. This performance reflects significant market share gains in France and Spain achieved on the strength of the quality and reliability of Nexans’ range of cold-shrink joints. Industrial cables The Industrial cables activity posted a 17.5% increase on a like-for-like basis. Sales of special cables were up 19.1%, thanks to especially strong growth in the market segments pinpointed by the Group as particular priorities – the oil, gas, shipbuilding, railway, robotic and automotive industries. Sales of electronic cables for industrial markets rose 15.9% on the back of robust growth in the Chinese and US aeronautical and special cables markets. Sales of harnesses advanced 14.5%, fueled by business expansion in Europe that was driven by successful high-end products for the German automotive industry. Competition is increasingly tough in this sector, however, with strong pressure on prices and rising labor costs in the Group’s plants, particularly in Romania.ENERGY (*)Energy sales amounted to 3,780 million euros (up 20.3% on 2006, and 12.1% on a like-for-like basis, based on comparable scope of consolidation and constant exchange rates). The main impact on the scope of consolidation during the period resulted from the acquisition of Olex. Energy Infrastructure Energy Infrastructure sales climbed 10.2% on a like-for-like basis in 2007. Year-on-year growth was stronger during the second half of the year, reaching 13.4% versus 6.5% for the first six months. This solid second-half performance was driven by a sharp rise in sales of high-voltage cables during the period. • Sales reported by high-voltage cable operations rose by 19.6% for 2007 as a whole and by 30.9% during the second half of the year. In the terrestrial cables sector, sales performance for the year reflected contracts signed primarily in the Middle East (Qatar 400kV, 220kV and 66kV, Abu Dhabi 400kV, Kuwait 132kV) as well as a steady stream of business with power network operators in France, Belgium and Spain. Submarine and umbilical cable sales derived from (i) the NorNed contract (a subsea transmission link connecting Norway and the Netherlands); (ii) the Long Island Replacement Cable contract in the United States (a network upgrading project); (iii) a Norwegian contract relating to the supply of a direct electrical heating (DEH) system for the subsea flowlines in the Tyrihans oil et gas field in the Norwegian Sea, (iv) the contract signed with the Abu Dhabi Water et Electricity Authority to supply and install the cables to create a new power link between Abu Dhabi’s mainland network and Delma Island; and (v) the contract awarded in first-half 2007 to manufacture and install a 500kV submarine power link to connect Hainan Island at the south end of China to the Chinese mainland in Guangdong province. The ramp-up in second-half 2007 of the Group’s new Tokyo Bay facility in Japan – a joint venture set up with Viscas that is majority controlled by Nexans – was also a strong growth driver in the second six months of the year. At the same time, demand was extremely high in 2007 for submarine cables used for the remote operation of underwater robots and vehicles, led by continued developments in the oil et gas industry.39(*) In accordance with the Group’s new segmentation as set out in its strategic plan, submarine cables used for the remote operation of underwater robots and vehicles are now included in the Energy Infrastructure activity, and electronic cables are classified as part of the Industry activity based on similarities between end-markets and customers. As a result, these cables are included within the Energy business for 2007 rather than in Telecom as was previously the case. Net sales generated by these operations in 2007 totaled 213 million euros (based on constant non-ferrous metal prices) compared with 160 million euros in 200]]></basicChars>
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		<raw><![CDATA[Manufacturing workload was high in Europe in 2007 and measures were rolled out aimed at optimizing production processes to keep up with an increase in order volumes. These measures also helped to significantly lift profitability. Industrial cables growth was also driven by an increase in production capacity, particularly in Brazil, China, Turkey, Romania and Morocco. Low-voltage cables for the building market Like-for-like sales of low-voltage cables for the building market climbed 10.4%. Volumes were slightly up on 2006 in Europe, except in Germany where the Group adopted a targeted sales approach as a result of extremely low market prices that had a negative impact on sales. As in 2006, sales in the second half of the year were lower than in the first half. Prices, however, remained sustained throughout the year. In North America, sales picked up in first-half 2007 after a weak showing in the second half of 2006. Nexans was only marginally affected by the sharp falloff in the residential building market in the United States triggered by the subprime crisis as the Group mainly operates in the industrial and commercial building market segments. The slide in the US dollar heightened competition in Canada, however, as the country became a more attractive market for US producers. Consequently, Nexans had to adopt a more defensive position, leading to narrower margins but without dampening profitability which remained very satisfactory. In the Rest of the World Area, sales growth was buoyant, especially in Turkey, Lebanon and Morocco. Operating margin for the Energy business rose to 365 million euros in 2007 from 242 million euros in 2006, representing 9.7% of sales at constant non-ferrous metal prices, compared with 7.7% one year earlier. All three activities within this business were significant contributors to the overall rise in profitability. As a percentage of sales at constant non-ferrous metal prices, operating margin for the Energy Infrastructure activity was up 2.2 points to 9.3% while the Industrial cables activity reported a 3.1 point increase to 8.7% and low-voltage cables for the building market posted a 0.7 point rise to 11.1%, representing an exceptional level of profitability. In 2007, the Energy business pursued its drive to generate production costs savings, and fixed costs remained stable as a percentage of sales at constant non-ferrous metal prices.TELECOMSales of Telecom cables advanced 8.3% to 529 million euros (up 12% like-for-like). Despite an operating backdrop marked by overall low growth in this market, Nexans reaped the full benefits of increased investments in railway infrastructure and high-speed LAN cables. Telecom Infrastructure Like-for-like sales rose 9.9%. Growth in the second half of the year was affected by the termination of a joint venture in Vietnam at the end of June. Excluding this impact, organic growth for the activity would have been 12.7% for the year as a whole. Sales of copper telecom cables picked up in 2007, particularly in Spain and Norway. Overall sales growth during the year was also boosted by the success of the Group’s tailored offering developed for railway networks, notably in the United Kingdom and Germany. Demand for optical fiber cables continued to grow in Northern Europe, with the expansion of local loop networks. At the same time, sales of connectivity accessories rose 13.2%, buoyed by export markets and especially in North Africa, Vietnam and the Philippines due to the use of xDSL technologies. In addition, accessory sales for the optical fiber market were boosted by the development of FTTx projects. Local Area Networks (LAN) Nexans reported like-for-like sales growth of 13.9% in this activity, powered by the Group’s European and US offering of high valueadded systems that are firmly focused on the high end of the market. In line with this strategy, supplies of category 6 and 7 cables increased in Europe during the year. Also in 2007 Nexans’ proprietary system offering reaped the benefits of synergies generated following the acquisition of a UK-based business in this field in the second half of 2005. As a result the Group has notched up a growing number of contract wins for private infrastructure projects such as for airports and banks. In the United States, Nexans registered sales growth of 15.6% in the LAN activity on a constant exchange rate basis. Nexans offers a flexible system for copper LAN cables which is particularly suited to the US market and provides a solid source of profitability. Sales of 6, 6+ and 10 Gbit/s category cables rose in 2007, and demand for category 5 cables remained strong. Operating margin for the Telecom business climbed to 49 million euros (9.3% of sales at constant non-ferrous metal prices) from 40 million euros in 2006 (8.2% of sales at constant non-ferrous metal prices). This performance was achieved as a result of firm margins as well as higher profitability levels turned in by the LAN activity following the reorganization measures implemented in 2006 (including the discontinuation of production activities at Abbey Wood in the United Kingdom and the expansion of business volumes in China). Telecom Infrastructure and Local Area Networks reported respective operating margins of 7.2% and 11.1% as a percentage of sales at constant non-ferrous metal40prices, representing increases of 0.2 and 1.9 point]]></raw>
		<basicChars><![CDATA[Manufacturing workload was high in Europe in 2007 and measures were rolled out aimed at optimizing production processes to keep up with an increase in order volumes. These measures also helped to significantly lift profitability. Industrial cables growth was also driven by an increase in production capacity, particularly in Brazil, China, Turkey, Romania and Morocco. Low-voltage cables for the building market Like-for-like sales of low-voltage cables for the building market climbed 10.4%. Volumes were slightly up on 2006 in Europe, except in Germany where the Group adopted a targeted sales approach as a result of extremely low market prices that had a negative impact on sales. As in 2006, sales in the second half of the year were lower than in the first half. Prices, however, remained sustained throughout the year. In North America, sales picked up in first-half 2007 after a weak showing in the second half of 2006. Nexans was only marginally affected by the sharp falloff in the residential building market in the United States triggered by the subprime crisis as the Group mainly operates in the industrial and commercial building market segments. The slide in the US dollar heightened competition in Canada, however, as the country became a more attractive market for US producers. Consequently, Nexans had to adopt a more defensive position, leading to narrower margins but without dampening profitability which remained very satisfactory. In the Rest of the World Area, sales growth was buoyant, especially in Turkey, Lebanon and Morocco. Operating margin for the Energy business rose to 365 million euros in 2007 from 242 million euros in 2006, representing 9.7% of sales at constant non-ferrous metal prices, compared with 7.7% one year earlier. All three activities within this business were significant contributors to the overall rise in profitability. As a percentage of sales at constant non-ferrous metal prices, operating margin for the Energy Infrastructure activity was up 2.2 points to 9.3% while the Industrial cables activity reported a 3.1 point increase to 8.7% and low-voltage cables for the building market posted a 0.7 point rise to 11.1%, representing an exceptional level of profitability. In 2007, the Energy business pursued its drive to generate production costs savings, and fixed costs remained stable as a percentage of sales at constant non-ferrous metal prices.TELECOMSales of Telecom cables advanced 8.3% to 529 million euros (up 12% like-for-like). Despite an operating backdrop marked by overall low growth in this market, Nexans reaped the full benefits of increased investments in railway infrastructure and high-speed LAN cables. Telecom Infrastructure Like-for-like sales rose 9.9%. Growth in the second half of the year was affected by the termination of a joint venture in Vietnam at the end of June. Excluding this impact, organic growth for the activity would have been 12.7% for the year as a whole. Sales of copper telecom cables picked up in 2007, particularly in Spain and Norway. Overall sales growth during the year was also boosted by the success of the Group’s tailored offering developed for railway networks, notably in the United Kingdom and Germany. Demand for optical fiber cables continued to grow in Northern Europe, with the expansion of local loop networks. At the same time, sales of connectivity accessories rose 13.2%, buoyed by export markets and especially in North Africa, Vietnam and the Philippines due to the use of xDSL technologies. In addition, accessory sales for the optical fiber market were boosted by the development of FTTx projects. Local Area Networks (LAN) Nexans reported like-for-like sales growth of 13.9% in this activity, powered by the Group’s European and US offering of high valueadded systems that are firmly focused on the high end of the market. In line with this strategy, supplies of category 6 and 7 cables increased in Europe during the year. Also in 2007 Nexans’ proprietary system offering reaped the benefits of synergies generated following the acquisition of a UK-based business in this field in the second half of 2005. As a result the Group has notched up a growing number of contract wins for private infrastructure projects such as for airports and banks. In the United States, Nexans registered sales growth of 15.6% in the LAN activity on a constant exchange rate basis. Nexans offers a flexible system for copper LAN cables which is particularly suited to the US market and provides a solid source of profitability. Sales of 6, 6+ and 10 Gbit/s category cables rose in 2007, and demand for category 5 cables remained strong. Operating margin for the Telecom business climbed to 49 million euros (9.3% of sales at constant non-ferrous metal prices) from 40 million euros in 2006 (8.2% of sales at constant non-ferrous metal prices). This performance was achieved as a result of firm margins as well as higher profitability levels turned in by the LAN activity following the reorganization measures implemented in 2006 (including the discontinuation of production activities at Abbey Wood in the United Kingdom and the expansion of business volumes in China). Telecom Infrastructure and Local Area Networks reported respective operating margins of 7.2% and 11.1% as a percentage of sales at constant non-ferrous metal40prices, representing increases of 0.2 and 1.9 point]]></basicChars>
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		<raw><![CDATA[ELECTRICAL WIRESSales in the Electrical Wires business in 2007 were 502 million euros, down 37.4% on the previous year or 32.8% on a like-for-like basis. Wirerods Like-for-like wirerod sales fell 38.1% year on year, reflecting the Group’s strategy of focusing its continuous casting operations solely on internal requirements. Consequently, tonnages sold outside the Group dropped by 45% on average in Europe and North America whereas Nexans Group plants increased their levels of internal supplies. Bare wires Sales of bare wires contracted 13.7% in 2007. The decline was more pronounced in France, where Nexans sells mostly standard products, compared with Germany where the Group focuses on special products, mainly for the automotive industry. Winding wires In accordance with agreements signed in late January 2007 with the US group Superior Essex, at the end of April Nexans sold its Canadian winding wire operations carried out at the Simcoe plant. In late July 2007, Nexans completed the sale of its Chinese winding wire operations (corresponding to the Group’s majority stake in Nexans Tianjin Magnet Wire and Cables). In addition, in June 2007 Nexans sold to its joint venture partner its minority 40% interest in the European winding wire company Essex Nexans. As a result of these developments as well as higher wirerod prices during the year, the operating margin of the Electrical Wires business rose to 8 million euros (1.7% of sales at constant metal prices). In 2006 this business reported a negative operating margin of 4 million euros including the impact of a 12 million euro non-recurring provision recorded in relation to a legal dispute.1.1.2.2 BY GEOGRAPHICAL AREAEUROPEEurope recorded sales of 3,215 million euros in 2007, up 6.4% on 2006, or 7.2% like-for-like. This moderate growth trajectory reflects the combined impact of lower sales for the electrical wires business and a 13.9% like-for-like rise in sales of cables. The Energy Infrastructure activity registered overall sales growth of 14.6% on a like-for-like basis for 2007. This full-year increase was 3.6 points higher than the growth recorded for the first half of the year as a result of the excellent second-half performance turned in by high-voltage cables and accessories. Year-on-year, sales for high-voltage cables jumped 20.5%, driven by further investments in (i) submarine cable power transmission; (ii) terrestrial network interconnections, particularly in the Middle East; and (iii) the oil et gas industry. Against this backdrop, Nexans has built up an order book representing almost two years worth of sales. The sharp rise in high-voltage cable sales is underpinned by capital expenditure programs implemented over the last two years in Norway and Japan (for the joint venture set up with Viscas). The Group is now well poised to meet increasing demand while continuing to enhance performance. Sales of low- and medium-voltage cables and accessories were up 7.6% on 2006, led by strong momentum in the infrastructure project sector – notably for windfarms – as well as robust demand throughout the year for low- and medium-voltage power cables across Europe. In 2007, production for Northern Europe was offloaded to facilities in Greece, Italy and Switzerland which had available capacity. These factors, coupled with the impact of enhanced management procedures for major projects and an upswing in margins, lifted profitability in 2007 despite the recognition of non-recurring expenses relating to (i) the start-up of outsourcing by Norway of the manufacturing of new products to the Tokyo Bay facility in Japan, and (ii) the roll-out of manufacturing reorganization measures in Italy. The Industrial cables activity posted a 17.2% sales increase on a likefor-like basis. Performance was especially robust in the special cables sector: • Sales of cables for the oil et gas, material handling and shipbuilding industries in France rose 34.8%. • Sales growth was 13% in Germany, where business is focused on cables for the robotic, railway, automotive, material handling and shipbuilding industries.UNALLOCATED OPERATIONSCertain specific or centralized activities carried out for the Group as a whole give rise to expenses that cannot be allocated to the Group’s businesses or geographical Areas. These amounts are not material on a consolidated level and represented a negative operating margin impact of 14 million euros in 2007, versus a negative 18 million euros in 2006 or a negative 14 million euros on a like-for-like basis.]]></raw>
		<basicChars><![CDATA[ELECTRICAL WIRESSales in the Electrical Wires business in 2007 were 502 million euros, down 37.4% on the previous year or 32.8% on a like-for-like basis. Wirerods Like-for-like wirerod sales fell 38.1% year on year, reflecting the Group’s strategy of focusing its continuous casting operations solely on internal requirements. Consequently, tonnages sold outside the Group dropped by 45% on average in Europe and North America whereas Nexans Group plants increased their levels of internal supplies. Bare wires Sales of bare wires contracted 13.7% in 2007. The decline was more pronounced in France, where Nexans sells mostly standard products, compared with Germany where the Group focuses on special products, mainly for the automotive industry. Winding wires In accordance with agreements signed in late January 2007 with the US group Superior Essex, at the end of April Nexans sold its Canadian winding wire operations carried out at the Simcoe plant. In late July 2007, Nexans completed the sale of its Chinese winding wire operations (corresponding to the Group’s majority stake in Nexans Tianjin Magnet Wire and Cables). In addition, in June 2007 Nexans sold to its joint venture partner its minority 40% interest in the European winding wire company Essex Nexans. As a result of these developments as well as higher wirerod prices during the year, the operating margin of the Electrical Wires business rose to 8 million euros (1.7% of sales at constant metal prices). In 2006 this business reported a negative operating margin of 4 million euros including the impact of a 12 million euro non-recurring provision recorded in relation to a legal dispute.1.1.2.2 BY GEOGRAPHICAL AREAEUROPEEurope recorded sales of 3,215 million euros in 2007, up 6.4% on 2006, or 7.2% like-for-like. This moderate growth trajectory reflects the combined impact of lower sales for the electrical wires business and a 13.9% like-for-like rise in sales of cables. The Energy Infrastructure activity registered overall sales growth of 14.6% on a like-for-like basis for 2007. This full-year increase was 3.6 points higher than the growth recorded for the first half of the year as a result of the excellent second-half performance turned in by high-voltage cables and accessories. Year-on-year, sales for high-voltage cables jumped 20.5%, driven by further investments in (i) submarine cable power transmission; (ii) terrestrial network interconnections, particularly in the Middle East; and (iii) the oil et gas industry. Against this backdrop, Nexans has built up an order book representing almost two years worth of sales. The sharp rise in high-voltage cable sales is underpinned by capital expenditure programs implemented over the last two years in Norway and Japan (for the joint venture set up with Viscas). The Group is now well poised to meet increasing demand while continuing to enhance performance. Sales of low- and medium-voltage cables and accessories were up 7.6% on 2006, led by strong momentum in the infrastructure project sector – notably for windfarms – as well as robust demand throughout the year for low- and medium-voltage power cables across Europe. In 2007, production for Northern Europe was offloaded to facilities in Greece, Italy and Switzerland which had available capacity. These factors, coupled with the impact of enhanced management procedures for major projects and an upswing in margins, lifted profitability in 2007 despite the recognition of non-recurring expenses relating to (i) the start-up of outsourcing by Norway of the manufacturing of new products to the Tokyo Bay facility in Japan, and (ii) the roll-out of manufacturing reorganization measures in Italy. The Industrial cables activity posted a 17.2% sales increase on a likefor-like basis. Performance was especially robust in the special cables sector: • Sales of cables for the oil et gas, material handling and shipbuilding industries in France rose 34.8%. • Sales growth was 13% in Germany, where business is focused on cables for the robotic, railway, automotive, material handling and shipbuilding industries.UNALLOCATED OPERATIONSCertain specific or centralized activities carried out for the Group as a whole give rise to expenses that cannot be allocated to the Group’s businesses or geographical Areas. These amounts are not material on a consolidated level and represented a negative operating margin impact of 14 million euros in 2007, versus a negative 18 million euros in 2006 or a negative 14 million euros on a like-for-like basis.]]></basicChars>
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	<page id="44">
		<raw><![CDATA[• Sales climbed 19.3% in Sweden, where Nexans supplies industrial vehicle manufacturers which export to Eastern Europe. Production workload was high throughout 2007 and Nexans has implemented specific training measures and action plans for both sales and manufacturing employees in order to effectively showcase the Group’s product offering while simultaneously optimizing production capacity. The combination of these factors drove a sharp increase in profitability for this activity during the year. Sales held firm in 2007 for electronic and data cables, with expansion in specific applications offsetting a slowdown for data cables in Europe. Cable harness sales climbed 14.5%. Although Nexans has increased its production capacity to meet extremely strong demand in Europe, this sector was affected by higher labor costs, particularly in Romania, as well as increased price pressure from customers. New manufacturing plants were opened during the year in Eastern Europe (Slovakia and Ukraine) where further productivity gains can be achieved. At the same time, with a view to restoring profitability levels in Belgium, aeronautical harness operations were discontinued. Harness operations for industrial vehicles – which were already largely outsourced to Eastern Europe – were transferred to Slovakia during the year. A workforce reorganization plan was implemented at the Huizingen plant during 2007 following completion of the related negotiations at the beginning of the second half of the year. The Building activity also registered a substantial rise in sales, with like for-like growth coming in at 11.8%. This rise was propelled by robust business levels in the industrial and commercial building market segments in France, Norway, Sweden and the Netherlands. Profitability was also substantially higher thanks to stringent cost control measures. Lastly, product mix and price levels were consistent with the second half of 2006. The Telecom Infrastructure activity reported like-for-like sales growth of 16.5%. During the year this activity experienced an upswing in sales of optical fiber cables, notably in Sweden and Norway, as well as a turnaround in sales of copper cables for telecom operators, particularly in Spain and Norway. The Telecom Infrastructure activity also reaped the benefits of sustained volumes in the railway market segment in a large number of European countries. In the LAN market, sales edged back 3.6%, reflecting the closure of the Abbey Wood plant in the United Kingdom as only a portion of this plant’s business was transferred to the Tuzla plant in Turkey. In Belgium, however, cabling systems sales rose sharply, as did operating marginElectrical wires saw a sharp 36.7% contraction in sales as a result of Nexans’ strategy to focus on the Group’s wirerod operations solely on its own internal requirements. In the bare wire sector, total sales decreased 13.7% but Germany posted a significant upturn in profitability compared with 2006 thanks to its strategy of concentrating on specific products. Profitability in Europe increased significantly during 2007 due to a generally favorable economic environment, the Group’s stronger presence in higher growth markets, and a targeted capital expenditure strategy. Operating margin rose to 265 million euros from 149 million euros in 2006 and represented 8.2% of sales at constant non-ferrous metal prices compared with 4.9% one year earlier. European business units accounted for 65% of Nexans’ total operating margin and 67% of consolidated sales (at constant non-ferrous metal prices). In addition, 65% of the Group’s capital expenditure for the year was invested in Europe.NORTH AMERICANexans generated sales of 662 million in North America during 2007, down 18.6% on 2006 or 10.2% like-for-like. This decline primarily reflects the intentional scaling back of wirerod sales. On a standalone basis, however, cable sales climbed 5.4% year-on-year despite the negative impact resulting from the strike at the Quebec plant which lasted until April. Excluding the impact of this strike, organic growth for cable sales would have been 9.9%. In the Energy Infrastructure activity, sales retreated 13.4% at constant exchange rates. Meaningful year-on-year comparisons are difficult, however, due to the strike at the Quebec plant after which work gradually picked up as from May 2007. Excluding the impact of this strike the activity would have reported sales growth of 5.4%. The market as a whole remained buoyant in 2007 thanks to the continued upgrading of power distribution networks in both Canada and the United States. Nexans expanded its presence in Western Canada during the year and profitability for the Energy Infrastructure segment was also driven up by the renewal of a group of medium-term contracts that took place in the second half of 2006. The Quebec plant won a major windfarm contract in second-half 2007, laying solid foundations for a fresh start after the strike earlier in the year.]]></raw>
		<basicChars><![CDATA[• Sales climbed 19.3% in Sweden, where Nexans supplies industrial vehicle manufacturers which export to Eastern Europe. Production workload was high throughout 2007 and Nexans has implemented specific training measures and action plans for both sales and manufacturing employees in order to effectively showcase the Group’s product offering while simultaneously optimizing production capacity. The combination of these factors drove a sharp increase in profitability for this activity during the year. Sales held firm in 2007 for electronic and data cables, with expansion in specific applications offsetting a slowdown for data cables in Europe. Cable harness sales climbed 14.5%. Although Nexans has increased its production capacity to meet extremely strong demand in Europe, this sector was affected by higher labor costs, particularly in Romania, as well as increased price pressure from customers. New manufacturing plants were opened during the year in Eastern Europe (Slovakia and Ukraine) where further productivity gains can be achieved. At the same time, with a view to restoring profitability levels in Belgium, aeronautical harness operations were discontinued. Harness operations for industrial vehicles – which were already largely outsourced to Eastern Europe – were transferred to Slovakia during the year. A workforce reorganization plan was implemented at the Huizingen plant during 2007 following completion of the related negotiations at the beginning of the second half of the year. The Building activity also registered a substantial rise in sales, with like for-like growth coming in at 11.8%. This rise was propelled by robust business levels in the industrial and commercial building market segments in France, Norway, Sweden and the Netherlands. Profitability was also substantially higher thanks to stringent cost control measures. Lastly, product mix and price levels were consistent with the second half of 2006. The Telecom Infrastructure activity reported like-for-like sales growth of 16.5%. During the year this activity experienced an upswing in sales of optical fiber cables, notably in Sweden and Norway, as well as a turnaround in sales of copper cables for telecom operators, particularly in Spain and Norway. The Telecom Infrastructure activity also reaped the benefits of sustained volumes in the railway market segment in a large number of European countries. In the LAN market, sales edged back 3.6%, reflecting the closure of the Abbey Wood plant in the United Kingdom as only a portion of this plant’s business was transferred to the Tuzla plant in Turkey. In Belgium, however, cabling systems sales rose sharply, as did operating marginElectrical wires saw a sharp 36.7% contraction in sales as a result of Nexans’ strategy to focus on the Group’s wirerod operations solely on its own internal requirements. In the bare wire sector, total sales decreased 13.7% but Germany posted a significant upturn in profitability compared with 2006 thanks to its strategy of concentrating on specific products. Profitability in Europe increased significantly during 2007 due to a generally favorable economic environment, the Group’s stronger presence in higher growth markets, and a targeted capital expenditure strategy. Operating margin rose to 265 million euros from 149 million euros in 2006 and represented 8.2% of sales at constant non-ferrous metal prices compared with 4.9% one year earlier. European business units accounted for 65% of Nexans’ total operating margin and 67% of consolidated sales (at constant non-ferrous metal prices). In addition, 65% of the Group’s capital expenditure for the year was invested in Europe.NORTH AMERICANexans generated sales of 662 million in North America during 2007, down 18.6% on 2006 or 10.2% like-for-like. This decline primarily reflects the intentional scaling back of wirerod sales. On a standalone basis, however, cable sales climbed 5.4% year-on-year despite the negative impact resulting from the strike at the Quebec plant which lasted until April. Excluding the impact of this strike, organic growth for cable sales would have been 9.9%. In the Energy Infrastructure activity, sales retreated 13.4% at constant exchange rates. Meaningful year-on-year comparisons are difficult, however, due to the strike at the Quebec plant after which work gradually picked up as from May 2007. Excluding the impact of this strike the activity would have reported sales growth of 5.4%. The market as a whole remained buoyant in 2007 thanks to the continued upgrading of power distribution networks in both Canada and the United States. Nexans expanded its presence in Western Canada during the year and profitability for the Energy Infrastructure segment was also driven up by the renewal of a group of medium-term contracts that took place in the second half of 2006. The Quebec plant won a major windfarm contract in second-half 2007, laying solid foundations for a fresh start after the strike earlier in the year.]]></basicChars>
	</page>
	<page id="45">
		<raw><![CDATA[In the industrial cables activity sales climbed 22.8% at constant exchange rates, with business volumes and profitability in the aeronautical and shipbuilding market segments once again on an upward trend. In the Building activity, sales increased 6.1% at constant exchange rates. This performance reflects strong demand on the west coast of Canada for equipping both industrial and residential buildings. However, in the rest of North America – and particularly in the United States – the residential market contracted as a result of the sub-prime crisis, but Nexans was only marginally affected by this downturn as the Group is not a major player in the residential building market segment. The overall sales increase was achieved thanks to the Group’s extended product offering following capital expenditure programs implemented in 2006 in connection with the launch of a new range for the commercial building sector. Throughout the first six months of 2007 earnings were on a par with the second half of 2006. They subsequently shifted downwards, however, due primarily to the slide of the US dollar against the Canadian dollar, which gave US producers a competitive edge. Despite this adverse factor, the Area’s profitability levels for the Building activity significantly outstripped those for Europe. In the Telecom Local Area Networks activity sales of LAN cables expanded 15.6% at constant exchange rates, fueled by the continued roll-out of the Group’s strategy to focus on top-end products, as well as by the start-up of sales of very high speed copper cables (10Gbit/s). Volumes rose against a stable market backdrop and margins remained high thanks to the top-end product offering. Electrical wires, experienced a 28.8% decline in sales on a like-for like basis. Nexans purposefully reduced its wirerod continuous casting production in Montreal with the aim of optimizing return on capital employed. Tight control over operating costs combined with higher margins helped to push up profitability for this business’s recurring operations compared with 2006. In addition, steps were taken to correct the situation related to the exceptional dispute that impacted results in 2006. During the year Nexans completed its withdrawal from the winding wires operations in North America by selling its Simcoe plant in Ontario, Canada to the Superior Essex Group. This business was deconsolidated at end-April 2007. Operating margin in North America rose to 79 million euros in 2007 from 64 million euros the previous year, representing 11.9% of sales at constant non-ferrous metal prices, versus 7.9%.ASIA-PACIFICSince January 1, 2007, the Group’s sales in the Asia-Pacific Area have included the contribution of Olex. The first-time consolidation of Olex accounted for a portion of the year-on-year increase in sales in this Area, which surged from 277 million euros to 571 million euros. At constant exchange rates and based on the scope of consolidation prior to the Olex acquisition, sales growth for the region came to 13.6%. Operating margin also increased sharply, up from 19 million euros (or 6.8% of sales at constant non-ferrous metal prices) in 2006 to 50 million euros (or 8.8% of sales at constant non-ferrous metal prices). On a like-for-like basis, operating margin rose from 8.3% of sales to 8.8%, fueled by the pricing strategy implemented during the year and additional manufacturing capacity in China. In Korea, like-for-like sales edged up by 1.8%. Sales of cables for the shipbuilding industry increased, propelled by new production capacity that came on stream in late 2006. This market segment was buoyed by the strong expansion of shipyards in the region. At December 31, 2007, Nexans’ key customers in Korea had particularly strong order books. Growth was also robust in the LAN activity, spurred by the strong positioning of the Group’s Korean plants for major infrastructure projects such as Incheon airport near Seoul. Sales of cables for the automotive industry contracted, however, due to a fiercely competitive environment. Sales of cables for energy infrastructure – comprising low-voltage cables and cables for power distribution networks – were also down on 2006. In China, like-for-like sales soared 51.5% against 2006, and profitability levels continued on the upward trend. All of the Group’s cable and systems manufacturing operations saw their performance boosted by growth in demand in China, and they reaped the benefits of capital expenditure programs implemented in 2006 (including LAN cables at the Kanghua plant in Shanghai, the development of a new site in Nanning in the south of China with the aim of increasing the production of telecom infrastructure cables, and investments at the Shanghai facility dedicated to the shipbuilding industry). The Group continued its capital expenditure program in 2007 with a view to developing local production in 2008 in several industrial market segments, such as the railway and material handling industries. Lastly, the Group’s sale of its winding wire operations in Tianjin to Superior Essex was completed during the year, and this business has been deconsolidated since July 31, 2007.]]></raw>
		<basicChars><![CDATA[In the industrial cables activity sales climbed 22.8% at constant exchange rates, with business volumes and profitability in the aeronautical and shipbuilding market segments once again on an upward trend. In the Building activity, sales increased 6.1% at constant exchange rates. This performance reflects strong demand on the west coast of Canada for equipping both industrial and residential buildings. However, in the rest of North America – and particularly in the United States – the residential market contracted as a result of the sub-prime crisis, but Nexans was only marginally affected by this downturn as the Group is not a major player in the residential building market segment. The overall sales increase was achieved thanks to the Group’s extended product offering following capital expenditure programs implemented in 2006 in connection with the launch of a new range for the commercial building sector. Throughout the first six months of 2007 earnings were on a par with the second half of 2006. They subsequently shifted downwards, however, due primarily to the slide of the US dollar against the Canadian dollar, which gave US producers a competitive edge. Despite this adverse factor, the Area’s profitability levels for the Building activity significantly outstripped those for Europe. In the Telecom Local Area Networks activity sales of LAN cables expanded 15.6% at constant exchange rates, fueled by the continued roll-out of the Group’s strategy to focus on top-end products, as well as by the start-up of sales of very high speed copper cables (10Gbit/s). Volumes rose against a stable market backdrop and margins remained high thanks to the top-end product offering. Electrical wires, experienced a 28.8% decline in sales on a like-for like basis. Nexans purposefully reduced its wirerod continuous casting production in Montreal with the aim of optimizing return on capital employed. Tight control over operating costs combined with higher margins helped to push up profitability for this business’s recurring operations compared with 2006. In addition, steps were taken to correct the situation related to the exceptional dispute that impacted results in 2006. During the year Nexans completed its withdrawal from the winding wires operations in North America by selling its Simcoe plant in Ontario, Canada to the Superior Essex Group. This business was deconsolidated at end-April 2007. Operating margin in North America rose to 79 million euros in 2007 from 64 million euros the previous year, representing 11.9% of sales at constant non-ferrous metal prices, versus 7.9%.ASIA-PACIFICSince January 1, 2007, the Group’s sales in the Asia-Pacific Area have included the contribution of Olex. The first-time consolidation of Olex accounted for a portion of the year-on-year increase in sales in this Area, which surged from 277 million euros to 571 million euros. At constant exchange rates and based on the scope of consolidation prior to the Olex acquisition, sales growth for the region came to 13.6%. Operating margin also increased sharply, up from 19 million euros (or 6.8% of sales at constant non-ferrous metal prices) in 2006 to 50 million euros (or 8.8% of sales at constant non-ferrous metal prices). On a like-for-like basis, operating margin rose from 8.3% of sales to 8.8%, fueled by the pricing strategy implemented during the year and additional manufacturing capacity in China. In Korea, like-for-like sales edged up by 1.8%. Sales of cables for the shipbuilding industry increased, propelled by new production capacity that came on stream in late 2006. This market segment was buoyed by the strong expansion of shipyards in the region. At December 31, 2007, Nexans’ key customers in Korea had particularly strong order books. Growth was also robust in the LAN activity, spurred by the strong positioning of the Group’s Korean plants for major infrastructure projects such as Incheon airport near Seoul. Sales of cables for the automotive industry contracted, however, due to a fiercely competitive environment. Sales of cables for energy infrastructure – comprising low-voltage cables and cables for power distribution networks – were also down on 2006. In China, like-for-like sales soared 51.5% against 2006, and profitability levels continued on the upward trend. All of the Group’s cable and systems manufacturing operations saw their performance boosted by growth in demand in China, and they reaped the benefits of capital expenditure programs implemented in 2006 (including LAN cables at the Kanghua plant in Shanghai, the development of a new site in Nanning in the south of China with the aim of increasing the production of telecom infrastructure cables, and investments at the Shanghai facility dedicated to the shipbuilding industry). The Group continued its capital expenditure program in 2007 with a view to developing local production in 2008 in several industrial market segments, such as the railway and material handling industries. Lastly, the Group’s sale of its winding wire operations in Tianjin to Superior Essex was completed during the year, and this business has been deconsolidated since July 31, 2007.]]></basicChars>
	</page>
	<page id="46">
		<raw><![CDATA[Vietnam, reported a 19.6% increase in like-for-like sales. The rise was particularly pronounced in the energy cables business, as a result of the gradual start-up of the Nexans LIOA plant in Hanoi. In December 2007, a full test system for medium-voltage cables was installed at this plant – the first of its type to be used at a cable manufacturer in Vietnam. This system will enable Nexans LIOA to provide both export and domestic markets with products meeting international quality standards. Second-half sales in this country came in lower than in the corresponding period of 2006, however, due to a temporary stoppage of operations at the Vina Daesung plant which produces cables for telecom infrastructure networks. This joint venture had to discontinue operations in June as the partnership agreement with the local co-venturer was not renewed. The company’s operations are currently being transferred to a site shared with Nexans LiOA and the transfer is scheduled for completion during the first quarter of 2008. In Australia, Olex was fully integrated into the Group, one year after its acquisition. During the year, Olex reported sales of 419 million euros at current non-ferrous metal prices, compared with 330 million in 2006 prior to its consolidation within the Nexans Group. Profitability was in line with targets and above the average for the Area, representing 10% of sales at constant non-ferrous metal prices after the recognition of an amortization expense corresponding to the allocation of acquisition goodwill. Olex – which generates 48% of its sales (at constant non-ferrous metal prices) in Energy Infrastructure – has strengthened Nexans’ presence in this market. Nexans has identified commercial, technical and procurement synergies between Olex and the rest of the Group, which it is in the process of leveraging. Olex’s sales, manufacturing and finance teams are now fully integrated into the Group’s operating processes.REST OF THE WORLDSales for the Rest of the World Area came to 374 million euros in 2007, up 13% on 2006, or 14.5% like-for-like. Business levels in the second half of the year were on a par with those in the first half, with production keeping apace with growth in the Area’s markets thanks to optimum use of available capacity. In addition, the Group pursued its major capacity investment programs in Egypt and Russia during the year as scheduled and sales of the corresponding products will begin in 2008. Operating margin totaled 31 million euros versus 36 million euros for 2006. This year-on-year decline was primarily attributable to operations in Turkey and arose largely as a result of (i) additional expenses incurred to launch new operations (a range of industrial and LAN cables developed following the installation of new equipment in 2006 and 2007) whose full benefits will only be felt in 2008; and (ii) the cost of over-consumption of raw materials due to the learning curve related to these new operations. As expected however, the country did see a rise in business levels during the year. In Morocco, sales for 2007 were 5.3% higher than in 2006 on a like-for-like basis, although the picture was mixed across the country’s various markets. Sales of cables were up on 2006, buoyed by growth for automotive cables as well as by the Moroccan unit’s strong positioning in cables for the building and power distribution markets. These factors, along with the success of exports to West Africa, enabled Moroccan operations to hold firm despite a reduction in orders from the country’s national energy operator – Office National de l’Electricité – which is undergoing a restructuring process. Electrical equipment operations – particularly batteries – were scaled back during the first half of the year following a rise in lead prices. Nevertheless, thanks to productivity investments made during 2007 and the impact of price adjustments, the unit ended the year with a satisfactory sales and profitability outlook. This manufacturing plant is also currently working on expanding its export sales of transformers to West Africa. In Brazil, like-for-like sales were up 11.2% on 2006. The country’s traditional markets of power transmission and distribution via overhead lines were once again very promising, and the order book for aluminum cables was extremely healthy. However, second-half 2007 saw delays in the completion of certain high-voltage overhead lines as the time required for obtaining the relevant environmental permits was longer than anticipated. The insulated copper conductor cable activity started operations in the second half of the year, essentially for low- and medium-voltage energy networks. The major program to obtain approval for the unit’s cables to be used in the oil industry continued as planned, with a view to enabling the business to fully develop in 2008 in a high-growth market.]]></raw>
		<basicChars><![CDATA[Vietnam, reported a 19.6% increase in like-for-like sales. The rise was particularly pronounced in the energy cables business, as a result of the gradual start-up of the Nexans LIOA plant in Hanoi. In December 2007, a full test system for medium-voltage cables was installed at this plant – the first of its type to be used at a cable manufacturer in Vietnam. This system will enable Nexans LIOA to provide both export and domestic markets with products meeting international quality standards. Second-half sales in this country came in lower than in the corresponding period of 2006, however, due to a temporary stoppage of operations at the Vina Daesung plant which produces cables for telecom infrastructure networks. This joint venture had to discontinue operations in June as the partnership agreement with the local co-venturer was not renewed. The company’s operations are currently being transferred to a site shared with Nexans LiOA and the transfer is scheduled for completion during the first quarter of 2008. In Australia, Olex was fully integrated into the Group, one year after its acquisition. During the year, Olex reported sales of 419 million euros at current non-ferrous metal prices, compared with 330 million in 2006 prior to its consolidation within the Nexans Group. Profitability was in line with targets and above the average for the Area, representing 10% of sales at constant non-ferrous metal prices after the recognition of an amortization expense corresponding to the allocation of acquisition goodwill. Olex – which generates 48% of its sales (at constant non-ferrous metal prices) in Energy Infrastructure – has strengthened Nexans’ presence in this market. Nexans has identified commercial, technical and procurement synergies between Olex and the rest of the Group, which it is in the process of leveraging. Olex’s sales, manufacturing and finance teams are now fully integrated into the Group’s operating processes.REST OF THE WORLDSales for the Rest of the World Area came to 374 million euros in 2007, up 13% on 2006, or 14.5% like-for-like. Business levels in the second half of the year were on a par with those in the first half, with production keeping apace with growth in the Area’s markets thanks to optimum use of available capacity. In addition, the Group pursued its major capacity investment programs in Egypt and Russia during the year as scheduled and sales of the corresponding products will begin in 2008. Operating margin totaled 31 million euros versus 36 million euros for 2006. This year-on-year decline was primarily attributable to operations in Turkey and arose largely as a result of (i) additional expenses incurred to launch new operations (a range of industrial and LAN cables developed following the installation of new equipment in 2006 and 2007) whose full benefits will only be felt in 2008; and (ii) the cost of over-consumption of raw materials due to the learning curve related to these new operations. As expected however, the country did see a rise in business levels during the year. In Morocco, sales for 2007 were 5.3% higher than in 2006 on a like-for-like basis, although the picture was mixed across the country’s various markets. Sales of cables were up on 2006, buoyed by growth for automotive cables as well as by the Moroccan unit’s strong positioning in cables for the building and power distribution markets. These factors, along with the success of exports to West Africa, enabled Moroccan operations to hold firm despite a reduction in orders from the country’s national energy operator – Office National de l’Electricité – which is undergoing a restructuring process. Electrical equipment operations – particularly batteries – were scaled back during the first half of the year following a rise in lead prices. Nevertheless, thanks to productivity investments made during 2007 and the impact of price adjustments, the unit ended the year with a satisfactory sales and profitability outlook. This manufacturing plant is also currently working on expanding its export sales of transformers to West Africa. In Brazil, like-for-like sales were up 11.2% on 2006. The country’s traditional markets of power transmission and distribution via overhead lines were once again very promising, and the order book for aluminum cables was extremely healthy. However, second-half 2007 saw delays in the completion of certain high-voltage overhead lines as the time required for obtaining the relevant environmental permits was longer than anticipated. The insulated copper conductor cable activity started operations in the second half of the year, essentially for low- and medium-voltage energy networks. The major program to obtain approval for the unit’s cables to be used in the oil industry continued as planned, with a view to enabling the business to fully develop in 2008 in a high-growth market.]]></basicChars>
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	<page id="47">
		<raw><![CDATA[In Turkey, like-for-like sales increased 19.3% compared with 2006. Following on from strong growth during the first half of the year, the focus of operations in Turkey was shifted to higher added-value markets and products. Sales of copper cables for telecom operators were discontinued in order to concentrate on developing export sales of instrumentation cables for the oil industry. At the same time, the Denizli plant enjoyed robust demand for low- and medium-voltage power cables in its domestic market but sales of low-voltage cables to the UK were down on the previous year. The country continued to ramp up production of LAN cables for the European market and the Tuzla site is now qualified to deliver to all Nexans’ major international customers. Expansion in this activity was stronger than expected in 2007 for high-end products. Lebanon reported another year of enhanced performance both in terms of sales and profitability. Sales climbed 49.1% at constant exchange rates, driven in the first half of the year by domestic orders, including for reconstruction work following the hostilities that broke out in the summer of 2006. Second-half 2007 saw further robust expansion in export sales to other Middle Eastern countries and Sub-Saharan Africa. The plant is currently working at full capacity and the capital expenditure incurred in 2007 has already enabled the unit to expand its offering of cables for the oil industry. Sales in Egypt, were on a par with 2006 on a reported basis and up 3.2% at constant exchange rates. Demand for copper cables for telecom networks vanished almost completely in the second half of the year but this was offset by a rise in sales for more profitable medium-voltage cables achieved as a result of the major capital expenditure program launched in 2006. At end-2007 the Egyptian unit had the requisite capacity to manufacture high-voltage cables in the short-term for the member countries of COMESA (The Common Market for Eastern and Southern Africa). In Russia, the Group implemented its first capital spending program to step up its presence in power cables markets for the building and power distribution markets. Building work is still under way and the unit is expected to begin sales operations in 2008.22.1OTHER ITEMS OF 2007 CONSOLIDATED RESULTSCORE EXPOSURE EFFECTThe core exposure effect totaled 20 million euros at December 31, 2007. This amount corresponds to the change in the value of the Group’s core exposure during the year as calculated by the weighted average cost method – an effect that arises from applying the accounting policy described in Note 1.b to the consolidated financial statements. It is not included in operating margin as changes in value of inventories that are included in operating margin are measured based on replacement cost in accordance with the Group’s accounting policies.2.2NET IMPAIRMENT OF FIXED ASSETS AND GOODWILLNet asset impairment totaled 21 million euros for the year ended December 31, 2007. The impairment losses recorded in 2007 related to various factors but were in line with the trends identified at previous balance sheet dates. The main impairment losses for the year related to the Group’s upstream businesses (wirerods and bare wires) which have now been almost fully written down. This reflects the impact on capital employed in these businesses caused by rises in raw material prices as well as the Group’s decision to focus these operations purely on its own internal requirements. Infrastructure cables in Italy were once again written down significantly in 2007 as the value in use of the cash generating unit (CGU) to which these assets belong is not sufficiently high based on the unit’s current performance. Additional impairment losses were also recorded in relation to the building cables business in Germany, for similar reasons. An impairment loss was recognized for the Telecom infrastructure cables CGU in Spain in order to align its carrying amount with its probable market value. These impairment losses represented an aggregate amount of 59 million euros. An additional impairment loss of 4 million euros was also recorded for the goodwill relating to Liban Câbles following an unfavorable change in the applicable discounting rate due to a rise in the market risk premium as a result of the heightened geopolitical tension in Lebanon. Inversely, a number of impairment losses were reversed during the year relating to (i) China and, to a lesser extent Morocco and Brazil, where the reversals were significant on account of a strong growth outlook for these countries, particularly in view of the robust margin gains achieved in 2007; (ii) Germany, for Infrastructure cable operations following measures implemented to focus on higher value-added products; and (iii) Switzerland, as business levels continued to pick up in this country. Altogether, reversals of impairment losses amounted to 42 million euros in 2007.]]></raw>
		<basicChars><![CDATA[In Turkey, like-for-like sales increased 19.3% compared with 2006. Following on from strong growth during the first half of the year, the focus of operations in Turkey was shifted to higher added-value markets and products. Sales of copper cables for telecom operators were discontinued in order to concentrate on developing export sales of instrumentation cables for the oil industry. At the same time, the Denizli plant enjoyed robust demand for low- and medium-voltage power cables in its domestic market but sales of low-voltage cables to the UK were down on the previous year. The country continued to ramp up production of LAN cables for the European market and the Tuzla site is now qualified to deliver to all Nexans’ major international customers. Expansion in this activity was stronger than expected in 2007 for high-end products. Lebanon reported another year of enhanced performance both in terms of sales and profitability. Sales climbed 49.1% at constant exchange rates, driven in the first half of the year by domestic orders, including for reconstruction work following the hostilities that broke out in the summer of 2006. Second-half 2007 saw further robust expansion in export sales to other Middle Eastern countries and Sub-Saharan Africa. The plant is currently working at full capacity and the capital expenditure incurred in 2007 has already enabled the unit to expand its offering of cables for the oil industry. Sales in Egypt, were on a par with 2006 on a reported basis and up 3.2% at constant exchange rates. Demand for copper cables for telecom networks vanished almost completely in the second half of the year but this was offset by a rise in sales for more profitable medium-voltage cables achieved as a result of the major capital expenditure program launched in 2006. At end-2007 the Egyptian unit had the requisite capacity to manufacture high-voltage cables in the short-term for the member countries of COMESA (The Common Market for Eastern and Southern Africa). In Russia, the Group implemented its first capital spending program to step up its presence in power cables markets for the building and power distribution markets. Building work is still under way and the unit is expected to begin sales operations in 2008.22.1OTHER ITEMS OF 2007 CONSOLIDATED RESULTSCORE EXPOSURE EFFECTThe core exposure effect totaled 20 million euros at December 31, 2007. This amount corresponds to the change in the value of the Group’s core exposure during the year as calculated by the weighted average cost method – an effect that arises from applying the accounting policy described in Note 1.b to the consolidated financial statements. It is not included in operating margin as changes in value of inventories that are included in operating margin are measured based on replacement cost in accordance with the Group’s accounting policies.2.2NET IMPAIRMENT OF FIXED ASSETS AND GOODWILLNet asset impairment totaled 21 million euros for the year ended December 31, 2007. The impairment losses recorded in 2007 related to various factors but were in line with the trends identified at previous balance sheet dates. The main impairment losses for the year related to the Group’s upstream businesses (wirerods and bare wires) which have now been almost fully written down. This reflects the impact on capital employed in these businesses caused by rises in raw material prices as well as the Group’s decision to focus these operations purely on its own internal requirements. Infrastructure cables in Italy were once again written down significantly in 2007 as the value in use of the cash generating unit (CGU) to which these assets belong is not sufficiently high based on the unit’s current performance. Additional impairment losses were also recorded in relation to the building cables business in Germany, for similar reasons. An impairment loss was recognized for the Telecom infrastructure cables CGU in Spain in order to align its carrying amount with its probable market value. These impairment losses represented an aggregate amount of 59 million euros. An additional impairment loss of 4 million euros was also recorded for the goodwill relating to Liban Câbles following an unfavorable change in the applicable discounting rate due to a rise in the market risk premium as a result of the heightened geopolitical tension in Lebanon. Inversely, a number of impairment losses were reversed during the year relating to (i) China and, to a lesser extent Morocco and Brazil, where the reversals were significant on account of a strong growth outlook for these countries, particularly in view of the robust margin gains achieved in 2007; (ii) Germany, for Infrastructure cable operations following measures implemented to focus on higher value-added products; and (iii) Switzerland, as business levels continued to pick up in this country. Altogether, reversals of impairment losses amounted to 42 million euros in 2007.]]></basicChars>
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		<raw><![CDATA[2.3RESTRUCTURING COSTSIn 2006, Nexans recorded a 149 million euro gain on the sale of its distribution business in Switzerland (Electro-Matériel SA) to Rexel in the first half of the year.Restructuring costs came to 14 million euros compared with 48 million euros in 2006. In 2007 these expenses related mainly to (i) the cost of transferring machines in connection with the manufacturing restructuring measures carried out in Italy; and (ii) the restructuring plan concerning the Group’s harness operations in Belgium under which certain of these operations were discontinued and the majority of the remaining business was transferred to Slovakia. The Belgian restructuring plan involved 66 people and included assistance measures negotiated with the employee representative bodies, aimed at reducing the impact of the plan on the members of staff concerned.2.6NET FINANCIAL EXPENSEThe Group recorded a net financial expense of 81 million euros in 2007, compared with 69 million euros the previous year. This rise stemmed from higher interest expense as a result of the financing required for the Olex acquisition, as well as from an increase in the average cost of financing further to the Group’s decision to extend the average maturity of its borrowings from six to eight years.2.7 2.4 CHANGES IN FAIR VALUE OF NON-FERROUS METAL DERIVATIVESINCOME TAXESIn view of the improved earnings performance of a large number of its subsidiaries, the Group’s corporate income tax charge came to 84 million euros in 2007 (representing an effective tax rate of 29.8%), compared with 48 million euros in 2006. The 2006 figure was particularly low as the gain on the disposal of the Group’s distribution business in Switzerland was tax exempt.Nexans uses futures contracts negotiated primarily on the London Metal Exchange (LME) to reduce its exposure to non-ferrous metal price fluctuations (copper and aluminum). However, due to the sharp volatility in non-ferrous metal prices over the past several months, the Group has taken measures to enable a large portion of these derivative instruments to be classified as cash flow hedges as defined in IAS 39. As from November 1, 2006, when these instruments (i) are used to hedge future transactions (e.g., copper cathode purchases) that are highly probable but not yet invoiced, and (ii) meet the requirements in IAS 39 for cash flow hedge accounting; they are accounted for similarly to foreign exchange hedges that qualify for hedge accounting as follows: the portion of the unrealized gain or loss on the hedging instrument that is determined to be an “effective” hedge is recognized directly in equity, and the ineffective portion is recognized in “Changes in fair value of non-ferrous metal derivatives”. Gains or losses previously recognized in equity are taken to the income statement in the period in which the hedged item (e.g. copper cathode purchases) affects income. “Changes in fair value of non-ferrous derivative instruments” also includes the impact of setting up this system and the recycling to income of 2006 hedging positions that were unwound in 2007.2.8PRINCIPAL CASH FLOWS FOR THE YEARCash flow from operations amounted to 374 million euros in 2007, versus 226 million euros in 2006. This amount was primarily used to finance (i) a capital expenditure program representing a gross investment of 168 million euros; and (ii) a dividend payout of 32 million euros. The net impact of the Group’s company acquisitions and divestments in 2007 was a cash inflow of 15 million euros. Working capital requirement came in 243 million euros lower than in 2006, totaling 1,222 million euros versus 1,465 million euros. The Group’s decision to refocus its electrical wires production solely on internal requirements contributed to the decrease, while around one third was due to reduced working capital requirement for continuous casting operations. The overall reduction reflects particular efforts made by the Group during the year, as well as the favorable impact of a number of factors such as the receipt of down payments on high-voltage cable contracts for orders taken in 2007. At December 31, 2007 the Group had scaled back its net debt to 290 million euros from 632 million euros at end-2006.2.5NET GAINS ON ASSET DISPOSALSThe 4 million euro gain recorded under this item in 2007 primarily includes 3 million euros in additional purchase consideration received in connection with Nexans’ transfer of a 60% stake in its winding wires business when Essex Nexans was originally formed. This additional consideration was payable in accordance with the terms of the joint venture agreement and based on Essex Nexans’ EBITDA for 2006.2.9BALANCE SHEETAt December 31, 2007 the Group’s balance sheet showed: • 1,758 million euros in total equity. • Net debt of 290 million euros, representing a 342 million euro reduction on December 31, 2006. The gearing ratio (net debt/total equity) was 16.5%.]]></raw>
		<basicChars><![CDATA[2.3RESTRUCTURING COSTSIn 2006, Nexans recorded a 149 million euro gain on the sale of its distribution business in Switzerland (Electro-Matériel SA) to Rexel in the first half of the year.Restructuring costs came to 14 million euros compared with 48 million euros in 2006. In 2007 these expenses related mainly to (i) the cost of transferring machines in connection with the manufacturing restructuring measures carried out in Italy; and (ii) the restructuring plan concerning the Group’s harness operations in Belgium under which certain of these operations were discontinued and the majority of the remaining business was transferred to Slovakia. The Belgian restructuring plan involved 66 people and included assistance measures negotiated with the employee representative bodies, aimed at reducing the impact of the plan on the members of staff concerned.2.6NET FINANCIAL EXPENSEThe Group recorded a net financial expense of 81 million euros in 2007, compared with 69 million euros the previous year. This rise stemmed from higher interest expense as a result of the financing required for the Olex acquisition, as well as from an increase in the average cost of financing further to the Group’s decision to extend the average maturity of its borrowings from six to eight years.2.7 2.4 CHANGES IN FAIR VALUE OF NON-FERROUS METAL DERIVATIVESINCOME TAXESIn view of the improved earnings performance of a large number of its subsidiaries, the Group’s corporate income tax charge came to 84 million euros in 2007 (representing an effective tax rate of 29.8%), compared with 48 million euros in 2006. The 2006 figure was particularly low as the gain on the disposal of the Group’s distribution business in Switzerland was tax exempt.Nexans uses futures contracts negotiated primarily on the London Metal Exchange (LME) to reduce its exposure to non-ferrous metal price fluctuations (copper and aluminum). However, due to the sharp volatility in non-ferrous metal prices over the past several months, the Group has taken measures to enable a large portion of these derivative instruments to be classified as cash flow hedges as defined in IAS 39. As from November 1, 2006, when these instruments (i) are used to hedge future transactions (e.g., copper cathode purchases) that are highly probable but not yet invoiced, and (ii) meet the requirements in IAS 39 for cash flow hedge accounting; they are accounted for similarly to foreign exchange hedges that qualify for hedge accounting as follows: the portion of the unrealized gain or loss on the hedging instrument that is determined to be an “effective” hedge is recognized directly in equity, and the ineffective portion is recognized in “Changes in fair value of non-ferrous metal derivatives”. Gains or losses previously recognized in equity are taken to the income statement in the period in which the hedged item (e.g. copper cathode purchases) affects income. “Changes in fair value of non-ferrous derivative instruments” also includes the impact of setting up this system and the recycling to income of 2006 hedging positions that were unwound in 2007.2.8PRINCIPAL CASH FLOWS FOR THE YEARCash flow from operations amounted to 374 million euros in 2007, versus 226 million euros in 2006. This amount was primarily used to finance (i) a capital expenditure program representing a gross investment of 168 million euros; and (ii) a dividend payout of 32 million euros. The net impact of the Group’s company acquisitions and divestments in 2007 was a cash inflow of 15 million euros. Working capital requirement came in 243 million euros lower than in 2006, totaling 1,222 million euros versus 1,465 million euros. The Group’s decision to refocus its electrical wires production solely on internal requirements contributed to the decrease, while around one third was due to reduced working capital requirement for continuous casting operations. The overall reduction reflects particular efforts made by the Group during the year, as well as the favorable impact of a number of factors such as the receipt of down payments on high-voltage cable contracts for orders taken in 2007. At December 31, 2007 the Group had scaled back its net debt to 290 million euros from 632 million euros at end-2006.2.5NET GAINS ON ASSET DISPOSALSThe 4 million euro gain recorded under this item in 2007 primarily includes 3 million euros in additional purchase consideration received in connection with Nexans’ transfer of a 60% stake in its winding wires business when Essex Nexans was originally formed. This additional consideration was payable in accordance with the terms of the joint venture agreement and based on Essex Nexans’ EBITDA for 2006.2.9BALANCE SHEETAt December 31, 2007 the Group’s balance sheet showed: • 1,758 million euros in total equity. • Net debt of 290 million euros, representing a 342 million euro reduction on December 31, 2006. The gearing ratio (net debt/total equity) was 16.5%.]]></basicChars>
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		<raw><![CDATA[• Working capital requirement of 1,222 million euros, representing 16.6% of sales at current copper prices for the year, down 1.6 points on December 31, 2006. • Provisions for contingencies and charges – including for pensions and retirement benefit obligations – totaling 434 million euros, on a par with the 469 million euros recorded at December 31, 2006. • Fixed assets amounting to 1,192 million euros at December 31, 2007 compared with 1,155 million euros one year earlier. This change takes into account the definitive calculation of the goodwill arising on the Olex acquisition in accordance with the accounting method described in Note 11 to the consolidated financial statements (goodwill reduced from 184 million euros to 131 million euros). Additional purchase consideration totaling 26 million euros was paid in 2007 in relation to the Olex acquisition. • Total capital expenditure of 168 million euros, exceeding the depreciation expense for the year. • “Assets and groups of assets held for sale” and “Liabilities related to groups of assets held for sale” representing a net amount of 105 million euros, versus 38 million euros at December 31, 2006. This increase reflects the application of IFRS 5 in relation to units for which the Group is examining divestment opportunities.this share transfer Madeco will receive 2.5 million newly-issued Nexans shares, giving it an approximately 9% stake in Nexans’ capital (based on a total of 28.1 million shares). Madeco will undertake not to sell these shares for a twelve-month period following completion of the transaction. The completion of this acquisition is still subject to (i) the signature of a final agreement which is scheduled for February 2008; (ii) ratification by both Madeco’s and Nexans’ shareholders; and (iii) regulatory approval. At the Annual Shareholders’ Meeting to be held to approve the financial statements for the year ended December 31, 2007, Nexans’ shareholders will also be asked to approve the issuance of the above-mentioned shares as consideration for Madeco’s asset transfer as well as the appointment of a Madeco group representative as a member of Nexans’ Board of Directors. Changes in scope of consolidation The main changes in scope of consolidation for 2007 were as follows: On November 30, 2007 Nexans acquired 70% of the shares in Multinacional Trade – a Spanish electrical equipment distributor – for 7.4 million euros. At the same time, the companies entered into a three-year put/call agreement in relation to the residual 30% of Multinacional Trade’s capital. For the twelve month period from November 2006 to November 2007 Multinacional Trade generated sales of about 25 million euros. Its principal supplier during that timeframe was Nexans, which accounted for some 70% of the company’s total purchases. Multinacional Trade has only been consolidated since December 31, 2007 as the impact of this acquisition on Nexans’ consolidated net sales, operating margin and net income figures for 2007 was not material. Total goodwill arising on the transaction (taking into account the put/call agreement) amounted to 6.2 million euros at December 31, 2007, before fair value adjustments. At December 31, 2006, the Group had entered into negotiations to sell its remaining winding wires business in Canada and China, and at that date the balance sheet items of the entities concerned were classified under assets held for sale in accordance with IFRS 5. In late April 2007, the Group completed the sale of its Simcoe plant in Canada to the US Group Superior Essex for 9.8 million euros (not including the 7 million euro positive impact resulting from subsequent recoveries of operating working capital items that were excluded from the transaction). The sale gave rise to a capital gain of 0.2 million euros, which was recognized in the income statement under “Net gains on asset disposals”. For the first four months of 2007, the Simcoe plant reported net sales at current metals prices and operating margin of 33 million euros and 2 million euros respectively.2.10 OTHER SIGNIFICANT EVENTS OF THE YEARFramework agreement to acquire the Madeco group On November 15, 2007 Nexans entered into a framework agreement with Madeco to acquire the Chile-based group’s cables operations. At current metal prices the 2006 sales of the Madeco group cables business totaled 672 million US dollars (490 million euros based on the average 2007 exchange rate), and were generated in three major markets – cables for the infrastructure, industry and building (as well as electrical wires to a lesser extent). In first-half 2007, Madeco’s cable operations broke down as follows by country – 43% in Brazil, South America’s largest market; 28% in Chile; 18% in Peru; 6% in Argentina; and 5% in Colombia. The structure of the acquisition is as follows: • Part of the purchase will take the form of an acquisition of shares in certain Madeco subsidiaries dedicated to the cables business. The sale price – comprising a cash payment and the assumption of liabilities – will total 422 million US dollars (approximately 287 million euros at the 2007 closing rate). • The remainder of the transaction will involve Madeco transferring to Nexans all of the shares held by Madeco in the group’s other subsidiaries dedicated to the cables business. As consideration for]]></raw>
		<basicChars><![CDATA[• Working capital requirement of 1,222 million euros, representing 16.6% of sales at current copper prices for the year, down 1.6 points on December 31, 2006. • Provisions for contingencies and charges – including for pensions and retirement benefit obligations – totaling 434 million euros, on a par with the 469 million euros recorded at December 31, 2006. • Fixed assets amounting to 1,192 million euros at December 31, 2007 compared with 1,155 million euros one year earlier. This change takes into account the definitive calculation of the goodwill arising on the Olex acquisition in accordance with the accounting method described in Note 11 to the consolidated financial statements (goodwill reduced from 184 million euros to 131 million euros). Additional purchase consideration totaling 26 million euros was paid in 2007 in relation to the Olex acquisition. • Total capital expenditure of 168 million euros, exceeding the depreciation expense for the year. • “Assets and groups of assets held for sale” and “Liabilities related to groups of assets held for sale” representing a net amount of 105 million euros, versus 38 million euros at December 31, 2006. This increase reflects the application of IFRS 5 in relation to units for which the Group is examining divestment opportunities.this share transfer Madeco will receive 2.5 million newly-issued Nexans shares, giving it an approximately 9% stake in Nexans’ capital (based on a total of 28.1 million shares). Madeco will undertake not to sell these shares for a twelve-month period following completion of the transaction. The completion of this acquisition is still subject to (i) the signature of a final agreement which is scheduled for February 2008; (ii) ratification by both Madeco’s and Nexans’ shareholders; and (iii) regulatory approval. At the Annual Shareholders’ Meeting to be held to approve the financial statements for the year ended December 31, 2007, Nexans’ shareholders will also be asked to approve the issuance of the above-mentioned shares as consideration for Madeco’s asset transfer as well as the appointment of a Madeco group representative as a member of Nexans’ Board of Directors. Changes in scope of consolidation The main changes in scope of consolidation for 2007 were as follows: On November 30, 2007 Nexans acquired 70% of the shares in Multinacional Trade – a Spanish electrical equipment distributor – for 7.4 million euros. At the same time, the companies entered into a three-year put/call agreement in relation to the residual 30% of Multinacional Trade’s capital. For the twelve month period from November 2006 to November 2007 Multinacional Trade generated sales of about 25 million euros. Its principal supplier during that timeframe was Nexans, which accounted for some 70% of the company’s total purchases. Multinacional Trade has only been consolidated since December 31, 2007 as the impact of this acquisition on Nexans’ consolidated net sales, operating margin and net income figures for 2007 was not material. Total goodwill arising on the transaction (taking into account the put/call agreement) amounted to 6.2 million euros at December 31, 2007, before fair value adjustments. At December 31, 2006, the Group had entered into negotiations to sell its remaining winding wires business in Canada and China, and at that date the balance sheet items of the entities concerned were classified under assets held for sale in accordance with IFRS 5. In late April 2007, the Group completed the sale of its Simcoe plant in Canada to the US Group Superior Essex for 9.8 million euros (not including the 7 million euro positive impact resulting from subsequent recoveries of operating working capital items that were excluded from the transaction). The sale gave rise to a capital gain of 0.2 million euros, which was recognized in the income statement under “Net gains on asset disposals”. For the first four months of 2007, the Simcoe plant reported net sales at current metals prices and operating margin of 33 million euros and 2 million euros respectively.2.10 OTHER SIGNIFICANT EVENTS OF THE YEARFramework agreement to acquire the Madeco group On November 15, 2007 Nexans entered into a framework agreement with Madeco to acquire the Chile-based group’s cables operations. At current metal prices the 2006 sales of the Madeco group cables business totaled 672 million US dollars (490 million euros based on the average 2007 exchange rate), and were generated in three major markets – cables for the infrastructure, industry and building (as well as electrical wires to a lesser extent). In first-half 2007, Madeco’s cable operations broke down as follows by country – 43% in Brazil, South America’s largest market; 28% in Chile; 18% in Peru; 6% in Argentina; and 5% in Colombia. The structure of the acquisition is as follows: • Part of the purchase will take the form of an acquisition of shares in certain Madeco subsidiaries dedicated to the cables business. The sale price – comprising a cash payment and the assumption of liabilities – will total 422 million US dollars (approximately 287 million euros at the 2007 closing rate). • The remainder of the transaction will involve Madeco transferring to Nexans all of the shares held by Madeco in the group’s other subsidiaries dedicated to the cables business. As consideration for]]></basicChars>
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		<raw><![CDATA[The sale of Nexans Tianjin Magnet Wires and Cables was completed in July 2007. The transaction gave rise to a capital loss of 1.6 million euros which was recorded under &amp;quot;Net gains on asset disposals&amp;quot; and reduced net debt by 11.2 million euros. In first-half 2007 Nexans Tianjin Magnet Wires and Cables reported net sales at current metals prices and operating margin of 19 million euros and 1 million euros respectively. Also in 2007, Superior Essex exercised its option to purchase the 40% minority interest held by Nexans in Essex Nexans – a joint venture set up in 2005 to combine the European winding wire operations of Superior Essex and Nexans. The sale of this 40% stake was completed on June 28, 2007 for an amount of 22.4 million euros and gave rise to a 0.2 million euro gain (recognized in the income statement under “Net gains on asset disposals”). In addition, Essex Nexans repaid 11.3 million euros to Nexans, corresponding to financing granted to the joint venture. In accordance with the applicable contractual provisions, and in view of Essex Nexans’ EBITDA for the 2006 fiscal year, Nexans also received 3 million euros in additional purchase consideration in first-half 2007 relating to the 60% stake in the winding wires business that was transferred when the Essex Nexans joint venture was originally formed. This consideration was included in the income statement under “Net gains on asset disposals”. Bond issue On May 2, 2007, Nexans issued 350 million euros worth of 10-year bonds. The issue was taken up by a wide-ranging European investor base, mainly comprising French and UK investors (35% and 34% respectively). The purpose of the issue was to (i) refinance the Group’s existing debt – notably arising from the Olex acquisition; (ii) diversify its sources of financing; and (iii) extend the average maturity of its borrowings. The main features of the bond issue were as follows: • Amount: 350 million euros • Coupon: 5.75% • Settlement date: May 2, 2007 • Maturity date: May 2, 2017 • Issue price: 99.266% • Spread: 140 basis points above the 10-year swap rate • Issue rating: BB (Standard et Poor’s).3PROGRESS MADE AND DIFFICULTIES ENCOUNTERED IN 2007During the year the Group moved forward in several key areas, including controlling costs and growth, adapting the organizational structure to market requirements, building up support and coordination processes for manufacturing operations, leveraging purchases, and developing information systems. Controlling costs and growth Controlling fixed and direct costs was a main focus for the Group in 2007 as its businesses continued to expand. Efforts made to contain direct costs and enhance the product mix improved the variable cost margin considerably. These factors were particularly important for businesses such as the Group’s high-voltage operations. Over the past two years Nexans has invested heavily in additional equipment and has strengthened its teams with a view to keeping apace with market growth, as illustrated by the start-up of operations at the Tokyo Bay plant in Japan. The expenses incurred in relation to the programs implemented have generally been kept within the allocated budgets. Adapting the organizational structure Nexan’s commercial and operational structure was reorganized during the year to more effectively reflect the key priorities set out in the Group’s Strategic Plan. Expansion hinges on three markets – Infrastructure, Industry and Building. The product offering for these markets required enhanced coordination in order to better serve customer needs and improve profitability, and a specific organizational structure has now been set up for each one. Building up support and coordination processes • Managing major projects: the Industrial Management Department provides its expertise to the Group’s various business units for all major capital expenditure projects, helping them to (i) select machinery and equipment that meet the Group’s technological requirements; and (ii) resolve any technical difficulties that may arise during the start-up phase. In 2007, the Department’s teams gave their input for the Group’s plants in Vietnam and China, as well as at Denizli and Tuzla in Turkey, Ouglich (Russia), Lorena (Brazil) and Cairo (Egypt). They also helped with the restructuring plans for the plants in Latina and Battipaglia in Italy, as well as with streamlining production processes between the Cheongwon and Eumsung plants in Korea. • Monitoring production capacities: cross-functional projects aimed at optimizing manufacturing capacity have been launched in order to fully leverage existing capacity and be able to swiftly meet strong]]></raw>
		<basicChars><![CDATA[The sale of Nexans Tianjin Magnet Wires and Cables was completed in July 2007. The transaction gave rise to a capital loss of 1.6 million euros which was recorded under &amp;quot;Net gains on asset disposals&amp;quot; and reduced net debt by 11.2 million euros. In first-half 2007 Nexans Tianjin Magnet Wires and Cables reported net sales at current metals prices and operating margin of 19 million euros and 1 million euros respectively. Also in 2007, Superior Essex exercised its option to purchase the 40% minority interest held by Nexans in Essex Nexans – a joint venture set up in 2005 to combine the European winding wire operations of Superior Essex and Nexans. The sale of this 40% stake was completed on June 28, 2007 for an amount of 22.4 million euros and gave rise to a 0.2 million euro gain (recognized in the income statement under “Net gains on asset disposals”). In addition, Essex Nexans repaid 11.3 million euros to Nexans, corresponding to financing granted to the joint venture. In accordance with the applicable contractual provisions, and in view of Essex Nexans’ EBITDA for the 2006 fiscal year, Nexans also received 3 million euros in additional purchase consideration in first-half 2007 relating to the 60% stake in the winding wires business that was transferred when the Essex Nexans joint venture was originally formed. This consideration was included in the income statement under “Net gains on asset disposals”. Bond issue On May 2, 2007, Nexans issued 350 million euros worth of 10-year bonds. The issue was taken up by a wide-ranging European investor base, mainly comprising French and UK investors (35% and 34% respectively). The purpose of the issue was to (i) refinance the Group’s existing debt – notably arising from the Olex acquisition; (ii) diversify its sources of financing; and (iii) extend the average maturity of its borrowings. The main features of the bond issue were as follows: • Amount: 350 million euros • Coupon: 5.75% • Settlement date: May 2, 2007 • Maturity date: May 2, 2017 • Issue price: 99.266% • Spread: 140 basis points above the 10-year swap rate • Issue rating: BB (Standard et Poor’s).3PROGRESS MADE AND DIFFICULTIES ENCOUNTERED IN 2007During the year the Group moved forward in several key areas, including controlling costs and growth, adapting the organizational structure to market requirements, building up support and coordination processes for manufacturing operations, leveraging purchases, and developing information systems. Controlling costs and growth Controlling fixed and direct costs was a main focus for the Group in 2007 as its businesses continued to expand. Efforts made to contain direct costs and enhance the product mix improved the variable cost margin considerably. These factors were particularly important for businesses such as the Group’s high-voltage operations. Over the past two years Nexans has invested heavily in additional equipment and has strengthened its teams with a view to keeping apace with market growth, as illustrated by the start-up of operations at the Tokyo Bay plant in Japan. The expenses incurred in relation to the programs implemented have generally been kept within the allocated budgets. Adapting the organizational structure Nexan’s commercial and operational structure was reorganized during the year to more effectively reflect the key priorities set out in the Group’s Strategic Plan. Expansion hinges on three markets – Infrastructure, Industry and Building. The product offering for these markets required enhanced coordination in order to better serve customer needs and improve profitability, and a specific organizational structure has now been set up for each one. Building up support and coordination processes • Managing major projects: the Industrial Management Department provides its expertise to the Group’s various business units for all major capital expenditure projects, helping them to (i) select machinery and equipment that meet the Group’s technological requirements; and (ii) resolve any technical difficulties that may arise during the start-up phase. In 2007, the Department’s teams gave their input for the Group’s plants in Vietnam and China, as well as at Denizli and Tuzla in Turkey, Ouglich (Russia), Lorena (Brazil) and Cairo (Egypt). They also helped with the restructuring plans for the plants in Latina and Battipaglia in Italy, as well as with streamlining production processes between the Cheongwon and Eumsung plants in Korea. • Monitoring production capacities: cross-functional projects aimed at optimizing manufacturing capacity have been launched in order to fully leverage existing capacity and be able to swiftly meet strong]]></basicChars>
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	<page id="51">
		<raw><![CDATA[demand while containing capital expenditure. Measures implemented in 2007 concerned plants in the Group’s industry and infrastructure markets and helped boost their profitability. • Tracking the performance of manufacturing plants: the Industrial Management Department tracks indicators for substantially all of the Group’s cable manufacturing plants on a monthly basis. In 2007, these indicators showed that customer service had improved, based on On Time In Full Delivery indicators, and that there was a decrease in the number of disputes and accidents. Nexans’ methods and technologies were successfully transferred to Olex during the year, and pilot measures rolled out across all the medium-voltage sites resulted in a significant reduction in the cost of raw materials. • Continuous improvement : in line with its continuous improvement strategy, Nexans has developed a performance appraisal tool for its manufacturing sites based on excellence criteria covering the following five areas: - Performance of manufacturing processes, - Customer focus, - Resource management, - Product knowledge and innovation capacities, - Expertise and know-how. Each plant can use this tool to assess its own performance and compare it with other equivalent units in order to draw up a specific action plan. • Training : as part of the Group’s training strategy, the Industrial Management Department has issued a Nexans guide on best practices for manufacturing, as well as a manual on extrusion best practices. In 2007, the Industrial Management Department provided twelve training modules – including seven related to the extrusion business – which were followed by over 100 engineers and technicians. • Cross-functional measures: : in 2007, these measures included awareness-raising programs concerning the importance of safety in electrical testing. In addition, an audit program was put in place in conjunction with Bureau Veritas in order to set up on-site procedures for ensuring that guidelines are properly applied. Leveraging purchases During 2007 Nexans continued to strengthen the quantitative and qualitative controls performed by its Purchasing teams for the supplies of products and services used by the Group. The related action points were geared to the following objectives: • Reducing purchase prices as far as possible and gaining a competitive edge: in addition to continually and systematically renegotiating purchasing conditions, the Group has set up a specific program for seeking out suppliers in low-cost countries, which has enabled it to purchase raw materials and components at lower prices than those customarily applied in the source region.This approach is based on participation by all of the Group’s units, as well as regular comparisons of prices and suppliers on a worldwide scale. In 2007, the Group continued to extend its contracts to new countries and generated further sourcing synergies that were put to the use of new facilities, particularly Olex’s plants. • Controlling supply risks: the Group’s policy is to have at least two suppliers for any raw material or component used in manufacturing its products. However, in some cases there may be just one supplier. Nexans’ Purchasing Department has launched a program aimed at eliminating this kind of situation by the end of 2009, with the help of the Group’s Research and Development teams. Significant progress has already been made in this area. In 2007, Nexans experienced supply stoppages from some suppliers due to extremely tight market conditions for certain raw materials, such as additives for polymers and technical polymers. The Group was able to successfully deal with these difficulties however, with no impact on cable output. • Strengthening supplier relations: in tandem with diversifying its supply sources, Nexans continued to enter into Group-wide contracts during the year with the aim of strengthening contractual relations with certain of its suppliers as part of its continuous improvement strategy. One of the underlying objectives of this move is for the suppliers concerned to share their innovation capacities with Nexans. • Increasing the expertise of the Group’s Purchasing teams: following on from the purchasing skills appraisal system set up in early 2007, a training program is currently being rolled out with a view to honing the methods and processes used by the purchasing teams. Developing information systems The Group’s IT strategic plan was implemented during the year in accordance with the main commitments undertaken with Group Management and the countries in which Nexans operates. One of the key objectives in 2007 was to upgrade the Group’s IT infrastructure in line with Nexans’ ongoing modernization program for the systems it uses for its core businesses. A specific focal point was negotiating framework agreements in order to forge strong partnerships with worldwide leaders in the IT industry. For example, the Group signed a five-year contract with BT to supply and operate its long-distance virtual private network. By having this single network for all of Nexans’ subsidiaries, the Group will be able to double the broadband speed at its sites and improve the security and continuity of its connections while maintaining stable costs. Another integral component of the contract with BT is IP telephony which will be progressively put in place, generating major savings for all long-distance internal calls. HP has become the Group’s main partner for supplying IT hardware and hosting applications. In addition, a standard configuration for Nexans’ future workstations has been defined as part of a joint]]></raw>
		<basicChars><![CDATA[demand while containing capital expenditure. Measures implemented in 2007 concerned plants in the Group’s industry and infrastructure markets and helped boost their profitability. • Tracking the performance of manufacturing plants: the Industrial Management Department tracks indicators for substantially all of the Group’s cable manufacturing plants on a monthly basis. In 2007, these indicators showed that customer service had improved, based on On Time In Full Delivery indicators, and that there was a decrease in the number of disputes and accidents. Nexans’ methods and technologies were successfully transferred to Olex during the year, and pilot measures rolled out across all the medium-voltage sites resulted in a significant reduction in the cost of raw materials. • Continuous improvement : in line with its continuous improvement strategy, Nexans has developed a performance appraisal tool for its manufacturing sites based on excellence criteria covering the following five areas: - Performance of manufacturing processes, - Customer focus, - Resource management, - Product knowledge and innovation capacities, - Expertise and know-how. Each plant can use this tool to assess its own performance and compare it with other equivalent units in order to draw up a specific action plan. • Training : as part of the Group’s training strategy, the Industrial Management Department has issued a Nexans guide on best practices for manufacturing, as well as a manual on extrusion best practices. In 2007, the Industrial Management Department provided twelve training modules – including seven related to the extrusion business – which were followed by over 100 engineers and technicians. • Cross-functional measures: : in 2007, these measures included awareness-raising programs concerning the importance of safety in electrical testing. In addition, an audit program was put in place in conjunction with Bureau Veritas in order to set up on-site procedures for ensuring that guidelines are properly applied. Leveraging purchases During 2007 Nexans continued to strengthen the quantitative and qualitative controls performed by its Purchasing teams for the supplies of products and services used by the Group. The related action points were geared to the following objectives: • Reducing purchase prices as far as possible and gaining a competitive edge: in addition to continually and systematically renegotiating purchasing conditions, the Group has set up a specific program for seeking out suppliers in low-cost countries, which has enabled it to purchase raw materials and components at lower prices than those customarily applied in the source region.This approach is based on participation by all of the Group’s units, as well as regular comparisons of prices and suppliers on a worldwide scale. In 2007, the Group continued to extend its contracts to new countries and generated further sourcing synergies that were put to the use of new facilities, particularly Olex’s plants. • Controlling supply risks: the Group’s policy is to have at least two suppliers for any raw material or component used in manufacturing its products. However, in some cases there may be just one supplier. Nexans’ Purchasing Department has launched a program aimed at eliminating this kind of situation by the end of 2009, with the help of the Group’s Research and Development teams. Significant progress has already been made in this area. In 2007, Nexans experienced supply stoppages from some suppliers due to extremely tight market conditions for certain raw materials, such as additives for polymers and technical polymers. The Group was able to successfully deal with these difficulties however, with no impact on cable output. • Strengthening supplier relations: in tandem with diversifying its supply sources, Nexans continued to enter into Group-wide contracts during the year with the aim of strengthening contractual relations with certain of its suppliers as part of its continuous improvement strategy. One of the underlying objectives of this move is for the suppliers concerned to share their innovation capacities with Nexans. • Increasing the expertise of the Group’s Purchasing teams: following on from the purchasing skills appraisal system set up in early 2007, a training program is currently being rolled out with a view to honing the methods and processes used by the purchasing teams. Developing information systems The Group’s IT strategic plan was implemented during the year in accordance with the main commitments undertaken with Group Management and the countries in which Nexans operates. One of the key objectives in 2007 was to upgrade the Group’s IT infrastructure in line with Nexans’ ongoing modernization program for the systems it uses for its core businesses. A specific focal point was negotiating framework agreements in order to forge strong partnerships with worldwide leaders in the IT industry. For example, the Group signed a five-year contract with BT to supply and operate its long-distance virtual private network. By having this single network for all of Nexans’ subsidiaries, the Group will be able to double the broadband speed at its sites and improve the security and continuity of its connections while maintaining stable costs. Another integral component of the contract with BT is IP telephony which will be progressively put in place, generating major savings for all long-distance internal calls. HP has become the Group’s main partner for supplying IT hardware and hosting applications. In addition, a standard configuration for Nexans’ future workstations has been defined as part of a joint]]></basicChars>
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	<page id="52">
		<raw><![CDATA[project between the Group’s headquarters teams and representatives from each country. These newly configured workstations – which are simple to use (based on a Microsoft product) – will be installed on a gradual basis as existing hardware is replaced. Also in 2007, Nexans continued to bring integrated business management applications on stream. For instance, SAP was rolled out in Spain, and Switzerland prepared all its sites for migration in early January 2008. At the same time, more than 10 Microsoft Navision projects are currently being set up for the Group’s less complex sites including in China, Egypt, Ireland, Japan, Lebanon, Romania and Vietnam. An updated manufacturing planning tool has also been put in place within the Group. Based on an existing product, this tool is intended to effectively control and shorten delivery lead times, especially in high-workload periods. It has already been implemented in Switzerland and Greece, and is currently being set up in Sweden, Australia and Korea. France and Belgium already had a previous version of the product which they are in the process of upgrading. The Group’s Internet and e-service portals – which used to be stand-alone services with different design formats – have been reworked. The Nexans website is now more user-friendly – particularly for customers – as the information is organized based on each individual market. Customers also have the facility of being provided with a personalized extranet service for monitoring their business with the Group. The number of hits on the website has more than doubled since the reworked site went online. IT security remains a priority for Nexans, and penetration-intrusion tests conducted on an annual basis have yielded excellent results. In addition, Nexans is a member of the working groups organized by the CIGREF (French corporate IT association), which has enabled the Group to widen its prevention measures based on the experience of other major French corporations. For the year ended December 31, 2007 IT costs represented 1.2% of net sales at constant copper prices, which is below the maximum ratio set by the Group. Difficulties encountered in 2007 mainly concerned the following: • High workload periods for manufacturing plants in the Industry market, which sometimes resulted in delays in delivery lead times. Corrective measures have been implemented to address these problems. • Significant growth in the high-voltage sector which required the Group to take specific measures while bolstering the efficiency of its manufacturing plants, all within a short timeframe. In addition, the transfer of technologies to the Tokyo Bay plant required the involvement of a significant proportion of the French and Norwegian high-voltage teams.• The roll-out of high-voltage contracts – a process that proved complex in some cases. he roll-out of high-voltage contracts – a process that proved complex in some cases. • Highly volatile commodity prices and exchange rates4RESEARCH AND DEVELOPMENTNexans’ RetD program is designed to maintain and improve the Group’s market positioning by developing new products and improving the quality and efficiency of its manufacturing processes. A total of 60.2 million euros were used for RetD programs in 2007 – representing close to 1.25% of net sales – compared with 54.6 million euros in 2006. Nexans’ RetD teams comprise some 450 people equipped with state-of-the-art technical devices. They work on long-term projects – including developing new insulation and sheathing materials – which are primarily managed by the Nexans Research Center, as well as on short and medium-term projects, such as creating and testing new products and systems or using computer modeling to accelerate time-to-market for higher-performing products or products that meet new customer specifications. Some 63 patents have been registered for the Group’s various areas of activity, reflecting the quality of its technical teams. In line with Nexans’ strategic plan, a new RetD organizational structure has been set up, with specific technical managers appointed for each of the Group’s markets (Infrastructure, Industry and Building). These managers are responsible for leading the Group’s networks of researchers while bridging the gap between the market and Nexans’ RetD teams. As the use of copper and aluminum is central to the Group’s business and has major financial and technical implications, the role of the Nexans Metallurgy Center has been reinforced. The purpose of this Center is to assist the Group’s various units and offer innovative solutions from the casting process right through to the production of conductors. The Metallurgy Center’s work in 2007 included research into new conductors (aluminum, copper alloys and composites). One of the other key RetD areas in 2007 was research into enhancing the fire-resistant properties of cables. This involved (i) creating a ceramifiable composite that meets the International Electrotechnical Commission (IEC) and the European EN fire resistance standards; and (ii) developing a software application to simulate the propagation of fire on cable harnesses.]]></raw>
		<basicChars><![CDATA[project between the Group’s headquarters teams and representatives from each country. These newly configured workstations – which are simple to use (based on a Microsoft product) – will be installed on a gradual basis as existing hardware is replaced. Also in 2007, Nexans continued to bring integrated business management applications on stream. For instance, SAP was rolled out in Spain, and Switzerland prepared all its sites for migration in early January 2008. At the same time, more than 10 Microsoft Navision projects are currently being set up for the Group’s less complex sites including in China, Egypt, Ireland, Japan, Lebanon, Romania and Vietnam. An updated manufacturing planning tool has also been put in place within the Group. Based on an existing product, this tool is intended to effectively control and shorten delivery lead times, especially in high-workload periods. It has already been implemented in Switzerland and Greece, and is currently being set up in Sweden, Australia and Korea. France and Belgium already had a previous version of the product which they are in the process of upgrading. The Group’s Internet and e-service portals – which used to be stand-alone services with different design formats – have been reworked. The Nexans website is now more user-friendly – particularly for customers – as the information is organized based on each individual market. Customers also have the facility of being provided with a personalized extranet service for monitoring their business with the Group. The number of hits on the website has more than doubled since the reworked site went online. IT security remains a priority for Nexans, and penetration-intrusion tests conducted on an annual basis have yielded excellent results. In addition, Nexans is a member of the working groups organized by the CIGREF (French corporate IT association), which has enabled the Group to widen its prevention measures based on the experience of other major French corporations. For the year ended December 31, 2007 IT costs represented 1.2% of net sales at constant copper prices, which is below the maximum ratio set by the Group. Difficulties encountered in 2007 mainly concerned the following: • High workload periods for manufacturing plants in the Industry market, which sometimes resulted in delays in delivery lead times. Corrective measures have been implemented to address these problems. • Significant growth in the high-voltage sector which required the Group to take specific measures while bolstering the efficiency of its manufacturing plants, all within a short timeframe. In addition, the transfer of technologies to the Tokyo Bay plant required the involvement of a significant proportion of the French and Norwegian high-voltage teams.• The roll-out of high-voltage contracts – a process that proved complex in some cases. he roll-out of high-voltage contracts – a process that proved complex in some cases. • Highly volatile commodity prices and exchange rates4RESEARCH AND DEVELOPMENTNexans’ RetD program is designed to maintain and improve the Group’s market positioning by developing new products and improving the quality and efficiency of its manufacturing processes. A total of 60.2 million euros were used for RetD programs in 2007 – representing close to 1.25% of net sales – compared with 54.6 million euros in 2006. Nexans’ RetD teams comprise some 450 people equipped with state-of-the-art technical devices. They work on long-term projects – including developing new insulation and sheathing materials – which are primarily managed by the Nexans Research Center, as well as on short and medium-term projects, such as creating and testing new products and systems or using computer modeling to accelerate time-to-market for higher-performing products or products that meet new customer specifications. Some 63 patents have been registered for the Group’s various areas of activity, reflecting the quality of its technical teams. In line with Nexans’ strategic plan, a new RetD organizational structure has been set up, with specific technical managers appointed for each of the Group’s markets (Infrastructure, Industry and Building). These managers are responsible for leading the Group’s networks of researchers while bridging the gap between the market and Nexans’ RetD teams. As the use of copper and aluminum is central to the Group’s business and has major financial and technical implications, the role of the Nexans Metallurgy Center has been reinforced. The purpose of this Center is to assist the Group’s various units and offer innovative solutions from the casting process right through to the production of conductors. The Metallurgy Center’s work in 2007 included research into new conductors (aluminum, copper alloys and composites). One of the other key RetD areas in 2007 was research into enhancing the fire-resistant properties of cables. This involved (i) creating a ceramifiable composite that meets the International Electrotechnical Commission (IEC) and the European EN fire resistance standards; and (ii) developing a software application to simulate the propagation of fire on cable harnesses.]]></basicChars>
	</page>
	<page id="53">
		<raw><![CDATA[Six Competence Centers work in close conjunction with the Nexans Research Center and Nexans Metallurgy Center and are in charge of Nexans’ applied research. The work of all these RetD teams is complemented by all of the Group’s units, whose proximity to customers ensures that Nexans’ new products are adapted to their requirements. The main projects worked on by those teams in 2007 concerned the following: • A comprehensive range of Nexans products used by various telecom operators for Fiber To The Home (FTTH) cabling, • EDF-approved insulation for low-voltage cables for nuclear power plants • A uniform range of products for 10Gbit/s Ethernet Local Area Network (LAN) applications. • The supply of new cables for the aeronautical industry that are highly resistant to fire and electrical breakdown. • Norwegian standard NEK606 accreditation for elastomer cables designed for shipbuilding, which are resistant to hydrocarbon muds. • The manufacture of an initial prototype for overhead lines using a composite material developed by Nexans, that can resist operating temperatures of up to 180°C. • Installation of the superconductor electric transmission system for the Long Island Power Authority. Both ends of the cable have been connected and cooling and electrical tests are currently in process.• Activities that need to be strategically rethought – Telecom Infrastructure and Local Area Networks • Activities earmarked for being gradually scaled back – wirerods, bare wires and winding wires. The developments in 2007 – an exceptional year for the cable industry – demonstrated the effectiveness of the objectives and priorities set in the Strategic Plan: • Energy Infrastructure markets expanded significantly in order to keep up with growth in developing economies. Growth in the Infrastructure market in developed countries was also robust, driven by interconnections, upscaling of networks and the ramp-up of wind energy. • Industrial markets experienced strong growth, especially the transport and energy-related sectors, such as oil et gas. • Building markets reported a record year for profits, with margins holding firm despite a context of only slightly higher volumes in Europe and reduced volumes in the United States. • There was stronger-than-expected demand for 10 Gb/s lines in the LAN market, which fueled high growth in value terms. In addition, the start-up of FTTH connections in Europe spurred an upturn in sales of optical fiber cables. Despite the year-end being marked by a change in the economic climate, due to the subprime mortgage crisis in the US, the fall of the dollar, and a hike in oil prices, the fundamentals underpinning long-term growth in worldwide demand for Energy cables are solid.5TRENDSThese include (i) unprecedented demand for electricity; (ii) the need for upgrades of energy distribution networks in developed countries and the extension of these networks to emerging economies; (iii) the introduction of new renewable sources of energy; and (iv) the expansion of energy- and transport-related industries in developing countries. Following on from its achievements in 2007 and in order to factor in new trends and developments, Nexans has updated its Strategic Plan with a view to: • Partnering stronger-than-anticipated growth for high-voltage terrestrial and submarine cables : The Group’s capital expenditure program in this domain has been revised upwards slightly in order to take into account extra manufacturing capacity in the light of an increasing number of projects that will lead to a considerable rise in sales targets by 2009. • Continuing to scale back the wirerod business, by gradually ceasing deliveries to non-Group customers in Europe. • Speeding up expansion in the Industry market • Enlarging the industrial cables activity by increasing production of rubber insulated cables. This will involve stepping up capacity in Europe for wind power products, extending the Chinese manufacturing plant, and setting up a rubber compound plant in Korea to serve the entire Asia region.In January 2008, Nexans presented the Board of Directors with an update of its 2007-2009 Strategic Plan in order to (i) provide a status report on the implementation of the plan; and (ii) propose a number of amendments. The original key objectives of the Plan were to: • increase profitability; • reduce exposure to short-term business cycles; • and focus on a smaller number of market segments that offer effective opportunities to foster synergies. The main measure for achieving these objectives entailed concentrating Nexans future business development and leadership within the Energy business on the Infrastructure, Industry and Building activities. The overall strategy was broken down based on the Group’s business lines and distinguishing between: • The Group’s core activities of Energy Infrastructure, Industry, and Building, for which the following objectives were set: : - Energy Infrastructure: strengthening the Group’s leading position in a fast-growing market, with the aim of expanding in a number of high-potential segments. - Industry : building up a strong position in certain market segments. - Building : using this core business as a base for expanding in local markets.]]></raw>
		<basicChars><![CDATA[Six Competence Centers work in close conjunction with the Nexans Research Center and Nexans Metallurgy Center and are in charge of Nexans’ applied research. The work of all these RetD teams is complemented by all of the Group’s units, whose proximity to customers ensures that Nexans’ new products are adapted to their requirements. The main projects worked on by those teams in 2007 concerned the following: • A comprehensive range of Nexans products used by various telecom operators for Fiber To The Home (FTTH) cabling, • EDF-approved insulation for low-voltage cables for nuclear power plants • A uniform range of products for 10Gbit/s Ethernet Local Area Network (LAN) applications. • The supply of new cables for the aeronautical industry that are highly resistant to fire and electrical breakdown. • Norwegian standard NEK606 accreditation for elastomer cables designed for shipbuilding, which are resistant to hydrocarbon muds. • The manufacture of an initial prototype for overhead lines using a composite material developed by Nexans, that can resist operating temperatures of up to 180°C. • Installation of the superconductor electric transmission system for the Long Island Power Authority. Both ends of the cable have been connected and cooling and electrical tests are currently in process.• Activities that need to be strategically rethought – Telecom Infrastructure and Local Area Networks • Activities earmarked for being gradually scaled back – wirerods, bare wires and winding wires. The developments in 2007 – an exceptional year for the cable industry – demonstrated the effectiveness of the objectives and priorities set in the Strategic Plan: • Energy Infrastructure markets expanded significantly in order to keep up with growth in developing economies. Growth in the Infrastructure market in developed countries was also robust, driven by interconnections, upscaling of networks and the ramp-up of wind energy. • Industrial markets experienced strong growth, especially the transport and energy-related sectors, such as oil et gas. • Building markets reported a record year for profits, with margins holding firm despite a context of only slightly higher volumes in Europe and reduced volumes in the United States. • There was stronger-than-expected demand for 10 Gb/s lines in the LAN market, which fueled high growth in value terms. In addition, the start-up of FTTH connections in Europe spurred an upturn in sales of optical fiber cables. Despite the year-end being marked by a change in the economic climate, due to the subprime mortgage crisis in the US, the fall of the dollar, and a hike in oil prices, the fundamentals underpinning long-term growth in worldwide demand for Energy cables are solid.5TRENDSThese include (i) unprecedented demand for electricity; (ii) the need for upgrades of energy distribution networks in developed countries and the extension of these networks to emerging economies; (iii) the introduction of new renewable sources of energy; and (iv) the expansion of energy- and transport-related industries in developing countries. Following on from its achievements in 2007 and in order to factor in new trends and developments, Nexans has updated its Strategic Plan with a view to: • Partnering stronger-than-anticipated growth for high-voltage terrestrial and submarine cables : The Group’s capital expenditure program in this domain has been revised upwards slightly in order to take into account extra manufacturing capacity in the light of an increasing number of projects that will lead to a considerable rise in sales targets by 2009. • Continuing to scale back the wirerod business, by gradually ceasing deliveries to non-Group customers in Europe. • Speeding up expansion in the Industry market • Enlarging the industrial cables activity by increasing production of rubber insulated cables. This will involve stepping up capacity in Europe for wind power products, extending the Chinese manufacturing plant, and setting up a rubber compound plant in Korea to serve the entire Asia region.In January 2008, Nexans presented the Board of Directors with an update of its 2007-2009 Strategic Plan in order to (i) provide a status report on the implementation of the plan; and (ii) propose a number of amendments. The original key objectives of the Plan were to: • increase profitability; • reduce exposure to short-term business cycles; • and focus on a smaller number of market segments that offer effective opportunities to foster synergies. The main measure for achieving these objectives entailed concentrating Nexans future business development and leadership within the Energy business on the Infrastructure, Industry and Building activities. The overall strategy was broken down based on the Group’s business lines and distinguishing between: • The Group’s core activities of Energy Infrastructure, Industry, and Building, for which the following objectives were set: : - Energy Infrastructure: strengthening the Group’s leading position in a fast-growing market, with the aim of expanding in a number of high-potential segments. - Industry : building up a strong position in certain market segments. - Building : using this core business as a base for expanding in local markets.]]></basicChars>
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	<page id="54">
		<raw><![CDATA[• Pursuing – and even accelerating – the streamlining of Industrial cable operations between French and German plants and reviewing the sustainability of certain operations in Europe dedicated to the building market. In addition to these changes the Group has decided to continue with its proactive strategy of rotating assets by : • Exploring opportunities to divest (i) part of its copper Telecom Infrastructure operations, where its current positioning is such that it cannot achieve critical mass; and (ii) its harness operations for automotive harnesses, which no longer fit with its strategic cables activities. • Strengthening its presence in new fast-growing and profitable geographic markets through transactions such as the planned acquisition of the Madeco group’s cable business in South America. In the period spanning 2008 to 2009, the newly structured Group (i.e. taking into account (i) the divestment of its harness operations and the sale of Santander’s copper Telecom Infrastructure cables in Spain; and (ii) the Madeco acquisition, Nexans aims to achieve: • Average organic growth of around 6% per year for its cables activities, with expansion continuing to outpace the underlying markets on account of the capital spending programs implemented. • An operating margin of between 7% and 10% depending on the general economic context, and particularly on the level of demand for cables in the building market. • Positive free cash flow*. The forward-looking information given above is based on the following assumptions: • Standard copper and aluminum prices of 1,500 euros per ton and 1,200 euros per ton, respectively. • A copper price of 4,400 euros per ton over the entire period. • Constant exchange rates (euro against other currencies), using the rates in effect at year-end 2007. • The same global economic climate as experienced over the past few years, with a slowdown in growth in North America relative to Europe and continued strong growth for the world economy as a whole, driven by developing countries. • Sustained annual growth for the global cable market between 2007 and 2010 (at constant copper prices), buoyed by increasing demand in Brazil, Russia, India and China. • Continued growth in the infrastructure, transport and oil et gas markets.6PRINCIPAL RISKS AND UNCERTAINTIES TO WHICH THE GROUP IS EXPOSEDGENERAL RISKS6.16.1.1 Risks related to contractual liability The Group systematically assesses the risks underlying the major contracts it signs. Particular focus is placed on ensuring that the Group’s sales teams pinpoint the risks inherent in sales contracts and involve the Group’s Legal Department in contractual negotiations. Product liability The nature of Nexans’ business exposes it to product liability claims and claims for damage to property or third parties allegedly caused by its products. Nexans provides warranties concerning the performance of its products, which may cover a long period of time. In addition, warranties given to Nexans pursuant to contracts for the supply of the materials and components used in the Group’s products may be less extensive than the warranties Nexans gives to its customers, for example, in the optical fiber sector. Contracts relating to turnkey projects Approximately 10% of Nexans’ consolidated net sales (based on constant non-ferrous metal prices) derive from contracts for the supply and installation of cables as part of turnkey infrastructure projects. These contracts relate primarily to high-voltage terrestrial and submarine cables. Individual contracts often have a high value and contain penalty and liability clauses that are applicable if Nexans does not comply with the delivery schedule and/or with quality requirements (for example, technical defects requiring intervention after installation due to product non-conformity resulting from production anomalies). If these clauses are invoked, the amount of penalties involved, the size of claims for damages or the financial impact on the project due to delays could have a significant adverse effect on Nexans’ financial position and income.52(*) Free cash flow: Cash flow from operations plus (or minus) changes in working capital requirement, less capital expenditure net of proceeds from sales of property, plant and equipment, less the payment of dividend]]></raw>
		<basicChars><![CDATA[• Pursuing – and even accelerating – the streamlining of Industrial cable operations between French and German plants and reviewing the sustainability of certain operations in Europe dedicated to the building market. In addition to these changes the Group has decided to continue with its proactive strategy of rotating assets by : • Exploring opportunities to divest (i) part of its copper Telecom Infrastructure operations, where its current positioning is such that it cannot achieve critical mass; and (ii) its harness operations for automotive harnesses, which no longer fit with its strategic cables activities. • Strengthening its presence in new fast-growing and profitable geographic markets through transactions such as the planned acquisition of the Madeco group’s cable business in South America. In the period spanning 2008 to 2009, the newly structured Group (i.e. taking into account (i) the divestment of its harness operations and the sale of Santander’s copper Telecom Infrastructure cables in Spain; and (ii) the Madeco acquisition, Nexans aims to achieve: • Average organic growth of around 6% per year for its cables activities, with expansion continuing to outpace the underlying markets on account of the capital spending programs implemented. • An operating margin of between 7% and 10% depending on the general economic context, and particularly on the level of demand for cables in the building market. • Positive free cash flow*. The forward-looking information given above is based on the following assumptions: • Standard copper and aluminum prices of 1,500 euros per ton and 1,200 euros per ton, respectively. • A copper price of 4,400 euros per ton over the entire period. • Constant exchange rates (euro against other currencies), using the rates in effect at year-end 2007. • The same global economic climate as experienced over the past few years, with a slowdown in growth in North America relative to Europe and continued strong growth for the world economy as a whole, driven by developing countries. • Sustained annual growth for the global cable market between 2007 and 2010 (at constant copper prices), buoyed by increasing demand in Brazil, Russia, India and China. • Continued growth in the infrastructure, transport and oil et gas markets.6PRINCIPAL RISKS AND UNCERTAINTIES TO WHICH THE GROUP IS EXPOSEDGENERAL RISKS6.16.1.1 Risks related to contractual liability The Group systematically assesses the risks underlying the major contracts it signs. Particular focus is placed on ensuring that the Group’s sales teams pinpoint the risks inherent in sales contracts and involve the Group’s Legal Department in contractual negotiations. Product liability The nature of Nexans’ business exposes it to product liability claims and claims for damage to property or third parties allegedly caused by its products. Nexans provides warranties concerning the performance of its products, which may cover a long period of time. In addition, warranties given to Nexans pursuant to contracts for the supply of the materials and components used in the Group’s products may be less extensive than the warranties Nexans gives to its customers, for example, in the optical fiber sector. Contracts relating to turnkey projects Approximately 10% of Nexans’ consolidated net sales (based on constant non-ferrous metal prices) derive from contracts for the supply and installation of cables as part of turnkey infrastructure projects. These contracts relate primarily to high-voltage terrestrial and submarine cables. Individual contracts often have a high value and contain penalty and liability clauses that are applicable if Nexans does not comply with the delivery schedule and/or with quality requirements (for example, technical defects requiring intervention after installation due to product non-conformity resulting from production anomalies). If these clauses are invoked, the amount of penalties involved, the size of claims for damages or the financial impact on the project due to delays could have a significant adverse effect on Nexans’ financial position and income.52(*) Free cash flow: Cash flow from operations plus (or minus) changes in working capital requirement, less capital expenditure net of proceeds from sales of property, plant and equipment, less the payment of dividend]]></basicChars>
	</page>
	<page id="55">
		<raw><![CDATA[Nexans may be required to pay late-delivery penalties in relation to these contracts. The penalties are taken into account when calculating the margins the Group recognizes on said contracts, as described in Note 1.h to the consolidated financial statements. Quality control and insurance In order to limit product liability risk the Group has put in place stringent product quality control procedures. A large number of Nexans’ units are ISO 9001 or 9002 certified. In addition, each unit monitors a set of indicators on a monthly basis in order to assess progress made in terms of quality and customer satisfaction. Nexans currently has product liability insurance that it considers to be in line with industry standards, and whose coverage amounts largely exceed any past claims. However, Nexans cannot guarantee that its insurance policies would provide sufficient coverage for all forms of liability claim (see section 6.1.9 below) as although the coverage amounts are high, they are capped at annual levels and the policies contain standard exclusion clauses, notably concerning the cost of the product itself and late-delivery penalties. 6.1.2 Risks related to dependence on customers Nexans’ activities are spread across a variety of businesses (e.g. energy, telecommunications, electrical wires), and it has many different types of end-customer – including distributors, equipment manufacturers, industrial operators and public operators – in a wide range of countries. This diversity acts as a safeguard for the Group as a whole and no customer accounts for more than 4% of consolidated net sales. However, certain customers may represent a significant portion of a production unit’s business, and the loss of one such customer may have a significant impact on a local level, leading to the closure of the manufacturing facility concerned. In addition, given the level of operating income involved and the difficult market conditions, the loss of one customer, particularly in niche markets such as shipbuilding and aerospace, could have an impact on Nexans’ income. Lastly, the demand for certain products depends on the economic environment of the related business sector, such as in the oil industry.6.1.3 Risks related to raw materials and supplies Copper, aluminum and plastic are the main raw materials used by Nexans. Therefore, price fluctuations and the availability of products have a direct effect on its business. Nexans has so far always been able to obtain adequate supplies at reasonable prices. A global copper shortage or interruptions of supplies could have an adverse effect even though Nexans has diversified its sources of supply as much as possible in order to reduce these risks. The situation is to some extent similar for petroleum by-products such as polyethylene, PVC and plasticizers. The inability to source raw materials at reasonable prices could therefore adversely affect Nexans’ business and income. The Group’s policy is always to have at least two suppliers for any raw material or component used in manufacturing its products. There are nonetheless certain isolated cases where the Group uses a sole supplier, particularly for the materials used to make high-voltage cables. Nexans’ Purchasing Department has launched a program which is aimed at reducing this kind of situation, with the help of the Research and Development Department. As part of its strategic purchasing policy to secure the supply of certain raw materials in terms of both volume and price (i.e., the LME price plus a premium), the Group has signed copper cathode purchasing contracts with two suppliers covering up to 2009. The annual volume purchased under these contracts is set in the November of the preceding year, and for 2008 the Group made firm purchase commitments for approximately 350,000 tonnes of copper. To cover its remaining copper cathode requirements the Group enters into purchasing contracts with other suppliers that include pre-determined volumes. In view of the market for aluminum wirerods, in order to secure its supplies the Group has given firm purchase commitments to several leading international producers for amounts sufficient to cover its needs for 2008 through 2012, representing approximately 50,000 tonnes per year. It should be noted that as these products are listed on regulated markets the Group could sell any quantities of copper or aluminum that are purchased under firm commitments but not subsequently used, although it may incur a loss related to the bid/offer spread on the premium. In parallel, in view of the Group’s prominent role in the submarine high-voltage and umbilical cables market, it needs a cable-laying vessel capable of performing the Group’s installation contracts within the timeframes required. As there is a limited market for such vessels, in November 2006, Nexans acquired the cable laying vessel, Bourbon Skagerrak, from Bourbon Cable AS, a Norwegian]]></raw>
		<basicChars><![CDATA[Nexans may be required to pay late-delivery penalties in relation to these contracts. The penalties are taken into account when calculating the margins the Group recognizes on said contracts, as described in Note 1.h to the consolidated financial statements. Quality control and insurance In order to limit product liability risk the Group has put in place stringent product quality control procedures. A large number of Nexans’ units are ISO 9001 or 9002 certified. In addition, each unit monitors a set of indicators on a monthly basis in order to assess progress made in terms of quality and customer satisfaction. Nexans currently has product liability insurance that it considers to be in line with industry standards, and whose coverage amounts largely exceed any past claims. However, Nexans cannot guarantee that its insurance policies would provide sufficient coverage for all forms of liability claim (see section 6.1.9 below) as although the coverage amounts are high, they are capped at annual levels and the policies contain standard exclusion clauses, notably concerning the cost of the product itself and late-delivery penalties. 6.1.2 Risks related to dependence on customers Nexans’ activities are spread across a variety of businesses (e.g. energy, telecommunications, electrical wires), and it has many different types of end-customer – including distributors, equipment manufacturers, industrial operators and public operators – in a wide range of countries. This diversity acts as a safeguard for the Group as a whole and no customer accounts for more than 4% of consolidated net sales. However, certain customers may represent a significant portion of a production unit’s business, and the loss of one such customer may have a significant impact on a local level, leading to the closure of the manufacturing facility concerned. In addition, given the level of operating income involved and the difficult market conditions, the loss of one customer, particularly in niche markets such as shipbuilding and aerospace, could have an impact on Nexans’ income. Lastly, the demand for certain products depends on the economic environment of the related business sector, such as in the oil industry.6.1.3 Risks related to raw materials and supplies Copper, aluminum and plastic are the main raw materials used by Nexans. Therefore, price fluctuations and the availability of products have a direct effect on its business. Nexans has so far always been able to obtain adequate supplies at reasonable prices. A global copper shortage or interruptions of supplies could have an adverse effect even though Nexans has diversified its sources of supply as much as possible in order to reduce these risks. The situation is to some extent similar for petroleum by-products such as polyethylene, PVC and plasticizers. The inability to source raw materials at reasonable prices could therefore adversely affect Nexans’ business and income. The Group’s policy is always to have at least two suppliers for any raw material or component used in manufacturing its products. There are nonetheless certain isolated cases where the Group uses a sole supplier, particularly for the materials used to make high-voltage cables. Nexans’ Purchasing Department has launched a program which is aimed at reducing this kind of situation, with the help of the Research and Development Department. As part of its strategic purchasing policy to secure the supply of certain raw materials in terms of both volume and price (i.e., the LME price plus a premium), the Group has signed copper cathode purchasing contracts with two suppliers covering up to 2009. The annual volume purchased under these contracts is set in the November of the preceding year, and for 2008 the Group made firm purchase commitments for approximately 350,000 tonnes of copper. To cover its remaining copper cathode requirements the Group enters into purchasing contracts with other suppliers that include pre-determined volumes. In view of the market for aluminum wirerods, in order to secure its supplies the Group has given firm purchase commitments to several leading international producers for amounts sufficient to cover its needs for 2008 through 2012, representing approximately 50,000 tonnes per year. It should be noted that as these products are listed on regulated markets the Group could sell any quantities of copper or aluminum that are purchased under firm commitments but not subsequently used, although it may incur a loss related to the bid/offer spread on the premium. In parallel, in view of the Group’s prominent role in the submarine high-voltage and umbilical cables market, it needs a cable-laying vessel capable of performing the Group’s installation contracts within the timeframes required. As there is a limited market for such vessels, in November 2006, Nexans acquired the cable laying vessel, Bourbon Skagerrak, from Bourbon Cable AS, a Norwegian]]></basicChars>
	</page>
	<page id="56">
		<raw><![CDATA[subsidiary of the French group Bourbon. This vessel – which has been renamed Nexans Skagerrak – is one of the few in the world specially designed to transport and lay umbilical cables and high-voltage submarine cables. Before the acquisition, Nexans had operated this vessel through an exclusive long-term chartering contract. An increase in raw material, energy or transportation costs could have a significant impact on Nexans’ business or income. 6.1.4 Geopolitical risks in high-growth areas Certain high-growth countries account for significant portion of the Group’s expansion but some of these areas are exposed to major geopolitical risks. However, the Group generates no more than 3% of its net sales at current non-ferrous metal prices in countries which are classified by Coface as having a very uncertain economic and political environment or representing a very high risk that could result in a deterioration in payment behavior. 6.1.5 Risks related to the Group’s competitive environment The cable industry remains relatively fragmented both regionally and internationally, and the cable, wire and cabling system markets are highly competitive. The number and size of Nexans’ competitors vary depending on the market, geographical Area and product line concerned. Consequently, the Group has several competitors in each of its businesses. Furthermore, for some businesses and in certain regional markets, Nexans’ main competitors may have a stronger position or have access to greater know-how or resources. In recent years, cable makers have faced a global crisis in the telecommunications markets and the steady increase in trade of certain types of low value-added cable among countries in a given region. This has led a number of market players to launch restructuring programs to reduce excess production capacity. Aside from these corrective measures, however, there have been no radical changes to the structure of the industry and it remains relatively fragmented both on a regional and global scale. Conditions have become more favorable for the industry since 2005 and capacity is being used more effectively. New players are entering the field, encouraged by the development of new markets, especially in developing countries. As certain of the Group’s products (cables, wires and accessories) must comply with industry specifications and are interchangeable with the products of its main domestic and international competitors, Nexans faces stiff competition in most of its markets in terms of price, delivery lead times and service. In the industry market, OEMcustomers (“Original Equipment Manufacturers”) are shifting away from standardized products, meaning that Nexans must be increasingly flexible and develop new solutions in order to accommodate increasingly demanding specifications. The principal competitive factors in the cable industry are cost, service, product quality and availability, geographical coverage and the range of products offered. In this environment, Nexans must constantly invest and improve its performance in order to retain any competitive edge it may have in certain markets. In addition, Nexans continues to focus on the RetD, logistics, and marketing aspects of its businesses in order to stand out from the competition. At the same time, faced with constant downward pressure on prices, the Group strives to reduce costs through continuously streamlining its production processes as well as plans to boost its manufacturing performance. 6.1.6 Risks related to technologies used In order to remain competitive, Nexans must anticipate advances in technology when developing its own products and manufacturing processes. The demand for low-energy consumption, recyclable and less polluting products as well as better value products and services requires the creation of innovative manufacturing processes, the use of new materials and the development of new wires and cables. Most of the markets in which Nexans has a presence tend to favor the use of highly technological products; it is therefore important that Nexans undertakes research providing it with access to the technologies necessary and valued by the market. Moreover, despite the significant work conducted by the Group’s Research and Development Department and the ongoing monitoring of potentially competitive technologies, there is no guarantee that (i) the technologies currently used by Nexans will not ultimately be replaced by new technologies developed by its main competitors; or (ii) its competitors will not allege patent infringement; or (iii) Nexans will be able to successfully launch new products that respond exactly to customer demand. Nexans is regularly involved in patent infringement claims filed either by itself against third parties or by competitors against the Group. Until now, the financial consequences of such disputes have not been material for the Group. There are currently two patent infringement disputes in process. Although Nexans considers that it is not guilty of patent infringement, it cannot guarantee that the outcome of the related legal proceedings will be favorable for the Group. • In March 2005, Kvaerner filed a claim against Nexans Norway alleging infringement of a patent relating to umbilical cables. Kvaerner is claiming NOK 310 million (approximately 39 million euros) in damages. Nexans believes that the patent concerned is not applicable to its products and manufacturing processes, and has itself launched proceedings in Norway and the Netherlands to invalidate Kvaerner’s patent. In 2007, Nexans obtained a54favorable court ruling in the Netherlands under which the scope ]]></raw>
		<basicChars><![CDATA[subsidiary of the French group Bourbon. This vessel – which has been renamed Nexans Skagerrak – is one of the few in the world specially designed to transport and lay umbilical cables and high-voltage submarine cables. Before the acquisition, Nexans had operated this vessel through an exclusive long-term chartering contract. An increase in raw material, energy or transportation costs could have a significant impact on Nexans’ business or income. 6.1.4 Geopolitical risks in high-growth areas Certain high-growth countries account for significant portion of the Group’s expansion but some of these areas are exposed to major geopolitical risks. However, the Group generates no more than 3% of its net sales at current non-ferrous metal prices in countries which are classified by Coface as having a very uncertain economic and political environment or representing a very high risk that could result in a deterioration in payment behavior. 6.1.5 Risks related to the Group’s competitive environment The cable industry remains relatively fragmented both regionally and internationally, and the cable, wire and cabling system markets are highly competitive. The number and size of Nexans’ competitors vary depending on the market, geographical Area and product line concerned. Consequently, the Group has several competitors in each of its businesses. Furthermore, for some businesses and in certain regional markets, Nexans’ main competitors may have a stronger position or have access to greater know-how or resources. In recent years, cable makers have faced a global crisis in the telecommunications markets and the steady increase in trade of certain types of low value-added cable among countries in a given region. This has led a number of market players to launch restructuring programs to reduce excess production capacity. Aside from these corrective measures, however, there have been no radical changes to the structure of the industry and it remains relatively fragmented both on a regional and global scale. Conditions have become more favorable for the industry since 2005 and capacity is being used more effectively. New players are entering the field, encouraged by the development of new markets, especially in developing countries. As certain of the Group’s products (cables, wires and accessories) must comply with industry specifications and are interchangeable with the products of its main domestic and international competitors, Nexans faces stiff competition in most of its markets in terms of price, delivery lead times and service. In the industry market, OEMcustomers (“Original Equipment Manufacturers”) are shifting away from standardized products, meaning that Nexans must be increasingly flexible and develop new solutions in order to accommodate increasingly demanding specifications. The principal competitive factors in the cable industry are cost, service, product quality and availability, geographical coverage and the range of products offered. In this environment, Nexans must constantly invest and improve its performance in order to retain any competitive edge it may have in certain markets. In addition, Nexans continues to focus on the RetD, logistics, and marketing aspects of its businesses in order to stand out from the competition. At the same time, faced with constant downward pressure on prices, the Group strives to reduce costs through continuously streamlining its production processes as well as plans to boost its manufacturing performance. 6.1.6 Risks related to technologies used In order to remain competitive, Nexans must anticipate advances in technology when developing its own products and manufacturing processes. The demand for low-energy consumption, recyclable and less polluting products as well as better value products and services requires the creation of innovative manufacturing processes, the use of new materials and the development of new wires and cables. Most of the markets in which Nexans has a presence tend to favor the use of highly technological products; it is therefore important that Nexans undertakes research providing it with access to the technologies necessary and valued by the market. Moreover, despite the significant work conducted by the Group’s Research and Development Department and the ongoing monitoring of potentially competitive technologies, there is no guarantee that (i) the technologies currently used by Nexans will not ultimately be replaced by new technologies developed by its main competitors; or (ii) its competitors will not allege patent infringement; or (iii) Nexans will be able to successfully launch new products that respond exactly to customer demand. Nexans is regularly involved in patent infringement claims filed either by itself against third parties or by competitors against the Group. Until now, the financial consequences of such disputes have not been material for the Group. There are currently two patent infringement disputes in process. Although Nexans considers that it is not guilty of patent infringement, it cannot guarantee that the outcome of the related legal proceedings will be favorable for the Group. • In March 2005, Kvaerner filed a claim against Nexans Norway alleging infringement of a patent relating to umbilical cables. Kvaerner is claiming NOK 310 million (approximately 39 million euros) in damages. Nexans believes that the patent concerned is not applicable to its products and manufacturing processes, and has itself launched proceedings in Norway and the Netherlands to invalidate Kvaerner’s patent. In 2007, Nexans obtained a54favorable court ruling in the Netherlands under which the scope ]]></basicChars>
	</page>
	<page id="57">
		<raw><![CDATA[application of the Kvaerner patent was restricted. Following this judgment, Kvaerner filed an application to amend its patent and clarified the scope of application of the disputed patent. Consequently, in early 2008 Nexans withdrew the suit it had filed in Norway. The claim filed by Kvaerner in 2005 is still pending but Nexans considers the residual risk in relation to this case to be extremely low. • In the United States Nexans has filed a claim to invalidate a patent filed by General Cable relating to certain LAN data cables marketed by Nexans. General Cable has filed a counterclaim against Nexans for patent infringement.In general, various types of environmental claims are filed against the Group in the normal course of business. Based on the amounts claimed and the status of the proceedings concerned, together with its evaluation of the risks involved and its provisioning policy, Nexans believes that there is little risk that these claims will significantly affect its financial position or income. At December 31, 2007, provisions recognized for environmental risks amounted to 7.3 million euros. They primarily include an amount set aside for a lawsuit in Duisburg, Germany, filed by the purchasers of a plot of land and a city council relating to soil and ground water contamination. This soil contamination is long-standing and Nexans’ full liability has not been established although analyses are currently underway. Nexans has, however, recorded a specific provision to cover any responsibility it may have for cleanup costs. Provisions for environmental risks also include amounts relating to the cleanup of a landfill site at the Group’s Swedish subsidiary as well as other costs for current or planned site rehabilitation and soil cleanup operations due to the use of products such as solvents and oils. Additional expenses may also be incurred for the clean-up of closed sites and sites earmarked for sale, but the Group expects the related amounts to be less than the market value of the sites in question. Nexans believes that any unprovisioned costs for potential site rehabilitation should not have a significant impact on its earnings. Nexans cannot guarantee that future events, in particular changes in legislation or the development or discovery of new facts or conditions, will not lead to additional costs that could have a significant adverse effect on its business, financial position or income.6.1.7 Risks related to environmental regulations As is the case for any industrial player, Nexans is subject to numerous environmental laws and regulations in the countries where it operates. These laws and regulations impose increasingly strict environmental standards, particularly in relation to atmospheric pollution, wastewater disposal, the emission, use and handling of toxic materials and waste, waste disposal methods, and site cleanups and rehabilitation. Consequently, Nexans is exposed to the possibility of liability claims being filed against it, and of incurring significant costs (e.g. for liability with respect to current or past activities or related to assets sold). The Group has a voluntary internal environmental management system that has been operational for several years and whose underlying objective is to enable the Group’s sites to receive EHP certification (“Environnement Hautement Protégé” or Highly Protected Environment). EHP certification is granted following an audit based on an in-depth questionnaire dealing with 12 environmental themes that is sent to the Group’s manufacturing facilities. See section 16.1 below for more information. In France, the Environment Ministry (Ministère de l’aménagement du territoire et de l’environnement) has published a national directory of potentially polluted sites and launched a program to examine and rehabilitate these sites. Four of Nexans’ sites are concerned by these measures. In the United States, Nexans is subject to several federal and state environmental laws, which could make certain categories of entity defined by law liable for the full amount of cleanup costs relating to environmental pollution, even if no fault is determined and the relevant operations comply with the applicable regulations. Nexans is not currently involved in any proceedings of this type. However it cannot guarantee that no such proceedings will arise in the future, which could in turn negatively impact the Group.]]></raw>
		<basicChars><![CDATA[application of the Kvaerner patent was restricted. Following this judgment, Kvaerner filed an application to amend its patent and clarified the scope of application of the disputed patent. Consequently, in early 2008 Nexans withdrew the suit it had filed in Norway. The claim filed by Kvaerner in 2005 is still pending but Nexans considers the residual risk in relation to this case to be extremely low. • In the United States Nexans has filed a claim to invalidate a patent filed by General Cable relating to certain LAN data cables marketed by Nexans. General Cable has filed a counterclaim against Nexans for patent infringement.In general, various types of environmental claims are filed against the Group in the normal course of business. Based on the amounts claimed and the status of the proceedings concerned, together with its evaluation of the risks involved and its provisioning policy, Nexans believes that there is little risk that these claims will significantly affect its financial position or income. At December 31, 2007, provisions recognized for environmental risks amounted to 7.3 million euros. They primarily include an amount set aside for a lawsuit in Duisburg, Germany, filed by the purchasers of a plot of land and a city council relating to soil and ground water contamination. This soil contamination is long-standing and Nexans’ full liability has not been established although analyses are currently underway. Nexans has, however, recorded a specific provision to cover any responsibility it may have for cleanup costs. Provisions for environmental risks also include amounts relating to the cleanup of a landfill site at the Group’s Swedish subsidiary as well as other costs for current or planned site rehabilitation and soil cleanup operations due to the use of products such as solvents and oils. Additional expenses may also be incurred for the clean-up of closed sites and sites earmarked for sale, but the Group expects the related amounts to be less than the market value of the sites in question. Nexans believes that any unprovisioned costs for potential site rehabilitation should not have a significant impact on its earnings. Nexans cannot guarantee that future events, in particular changes in legislation or the development or discovery of new facts or conditions, will not lead to additional costs that could have a significant adverse effect on its business, financial position or income.6.1.7 Risks related to environmental regulations As is the case for any industrial player, Nexans is subject to numerous environmental laws and regulations in the countries where it operates. These laws and regulations impose increasingly strict environmental standards, particularly in relation to atmospheric pollution, wastewater disposal, the emission, use and handling of toxic materials and waste, waste disposal methods, and site cleanups and rehabilitation. Consequently, Nexans is exposed to the possibility of liability claims being filed against it, and of incurring significant costs (e.g. for liability with respect to current or past activities or related to assets sold). The Group has a voluntary internal environmental management system that has been operational for several years and whose underlying objective is to enable the Group’s sites to receive EHP certification (“Environnement Hautement Protégé” or Highly Protected Environment). EHP certification is granted following an audit based on an in-depth questionnaire dealing with 12 environmental themes that is sent to the Group’s manufacturing facilities. See section 16.1 below for more information. In France, the Environment Ministry (Ministère de l’aménagement du territoire et de l’environnement) has published a national directory of potentially polluted sites and launched a program to examine and rehabilitate these sites. Four of Nexans’ sites are concerned by these measures. In the United States, Nexans is subject to several federal and state environmental laws, which could make certain categories of entity defined by law liable for the full amount of cleanup costs relating to environmental pollution, even if no fault is determined and the relevant operations comply with the applicable regulations. Nexans is not currently involved in any proceedings of this type. However it cannot guarantee that no such proceedings will arise in the future, which could in turn negatively impact the Group.]]></basicChars>
	</page>
	<page id="58">
		<raw><![CDATA[6.1.8 Nexans’ position on asbestos The manufacture of Nexans products does not involve any handling of asbestos. In the past (and particularly to comply with French army specifications), asbestos was used to a limited extent to improve the insulation of certain kinds of cables designed for military purposes. It was also used in the manufacture of enamel furnaces at two sites in France, but this activity was discontinued several decades ago. To date, 48 people in France have been classified as suffering from an asbestos-related occupational disease, of which 11 have filed proceedings against their employer (TLM). In addition, some 93 employees (41 at Nexans Wires and 52 at SCCC) are currently undergoing medical supervision. Management does not believe that this risk is likely to have a significant impact on the Group’s financial position or earnings. 6.1.9 Risk coverage In addition to local mandatory insurance coverage and individual insurance taken out directly by the Group’s various units, Nexans has had a Group insurance program in place since 2003. Companies in which Nexans has more than a 50% stake are eligible to participate in this program. The overall coverage under this program did not change significantly during 2007 compared with 2006 and was renewed on January 1, 2008 at similar levels. The main types of insurance coverage under this program are as follows: • property and casualty and business interruption, • third-party operating and product liability, • transportation, • contractor’s all risk insurance for terrestrial projects, • third-party aerospace and aeronautical liability, • short-term credit risk to secure accounts receivable from certain domestic and export customers, • directors’ liability. The limits on these policies are based on a historical analysis of claims experience and on the advice of the Group’s brokers. They generally exceed the maximum amount of insured claims experienced by the Group in the past. These policies are, however, subject to coverage exclusions that result in limitations on the transfer of risk. The property and casualty and business interruption policy is subject to limitations applicable to certain units. Certain countries or regions are currently excluded from the Group’s insurance program (e.g. Nigeria) and some geographical areas have more limited coverage for risks related to natural catastrophes, including areas with high seismic risk such as Greece, Italy, Turkey, Japanand Lebanon. Additional coverage has been taken out for the recently acquired cable-laying vessel, Skagerrak. The short-term credit risk policy has been gradually rolled out country by country as part of a global, multi-year program that was renewed on January 1, 2008 for two years. At the end of 2007, consolidated companies covered by this policy accounted for 80% of the Group’s net sales. With respect to third-party liability resulting from aeronautical or aerospace products, coverage for losses caused to third parties is limited to the occurrence of severe accidents or decisions to ground aircraft made by domestic or international civil aviation authorities, and excludes all other kinds of liability. It is possible that an extremely rare but highly serious claim could considerably exceed the related sales generated and significantly affect Nexans’ operating income. Finally, there is a trend among third parties, customers and suppliers, as well as in the insurance market, towards increased litigation to limit or expand the scope of contractual undertakings. The possibility of legal action being taken creates further uncertainties as to the amount of risk transferred. The financial assets recognized in the Group’s balance sheet are not insured against political risk. Risks related to acts of terrorism are covered by the insurance legally required in certain countries. In 2007, the supervisory authorities of the Grand Duchy of Luxembourg approved the formation of a captive reinsurer which has been operational since January 1, 2008. Aimed at optimizing and managing the Group’s risk retention strategy, this captive reinsurer handles property and casualty and business interruption programs, as well as short-term credit risks and transportation risks. It operates on a program-by-program basis, with a maximum amount of coverage per loss and a cumulative cap per insurance year. It is scheduled to become progressively more involved in Nexans’ insurance program in line with opportunities and limitations in the insurance market. The Group relies on the expertise of a global network of insurance brokers to assist it in the control and management of the risks to which it is exposed in all the countries where it operates. In addition, it has maintained its commitment to reducing industrial risks by putting in place a specific three-year investment program for 2008 through 2010, designed jointly by the Industrial Management Department and experts from the Group’s property and casualty insurer. These experts visit the manufacturing sites on an annual basis, making targeted recommendations on how to improve risk prevention and safety, as well as subsequently monitoring that the recommendations have been implemented.]]></raw>
		<basicChars><![CDATA[6.1.8 Nexans’ position on asbestos The manufacture of Nexans products does not involve any handling of asbestos. In the past (and particularly to comply with French army specifications), asbestos was used to a limited extent to improve the insulation of certain kinds of cables designed for military purposes. It was also used in the manufacture of enamel furnaces at two sites in France, but this activity was discontinued several decades ago. To date, 48 people in France have been classified as suffering from an asbestos-related occupational disease, of which 11 have filed proceedings against their employer (TLM). In addition, some 93 employees (41 at Nexans Wires and 52 at SCCC) are currently undergoing medical supervision. Management does not believe that this risk is likely to have a significant impact on the Group’s financial position or earnings. 6.1.9 Risk coverage In addition to local mandatory insurance coverage and individual insurance taken out directly by the Group’s various units, Nexans has had a Group insurance program in place since 2003. Companies in which Nexans has more than a 50% stake are eligible to participate in this program. The overall coverage under this program did not change significantly during 2007 compared with 2006 and was renewed on January 1, 2008 at similar levels. The main types of insurance coverage under this program are as follows: • property and casualty and business interruption, • third-party operating and product liability, • transportation, • contractor’s all risk insurance for terrestrial projects, • third-party aerospace and aeronautical liability, • short-term credit risk to secure accounts receivable from certain domestic and export customers, • directors’ liability. The limits on these policies are based on a historical analysis of claims experience and on the advice of the Group’s brokers. They generally exceed the maximum amount of insured claims experienced by the Group in the past. These policies are, however, subject to coverage exclusions that result in limitations on the transfer of risk. The property and casualty and business interruption policy is subject to limitations applicable to certain units. Certain countries or regions are currently excluded from the Group’s insurance program (e.g. Nigeria) and some geographical areas have more limited coverage for risks related to natural catastrophes, including areas with high seismic risk such as Greece, Italy, Turkey, Japanand Lebanon. Additional coverage has been taken out for the recently acquired cable-laying vessel, Skagerrak. The short-term credit risk policy has been gradually rolled out country by country as part of a global, multi-year program that was renewed on January 1, 2008 for two years. At the end of 2007, consolidated companies covered by this policy accounted for 80% of the Group’s net sales. With respect to third-party liability resulting from aeronautical or aerospace products, coverage for losses caused to third parties is limited to the occurrence of severe accidents or decisions to ground aircraft made by domestic or international civil aviation authorities, and excludes all other kinds of liability. It is possible that an extremely rare but highly serious claim could considerably exceed the related sales generated and significantly affect Nexans’ operating income. Finally, there is a trend among third parties, customers and suppliers, as well as in the insurance market, towards increased litigation to limit or expand the scope of contractual undertakings. The possibility of legal action being taken creates further uncertainties as to the amount of risk transferred. The financial assets recognized in the Group’s balance sheet are not insured against political risk. Risks related to acts of terrorism are covered by the insurance legally required in certain countries. In 2007, the supervisory authorities of the Grand Duchy of Luxembourg approved the formation of a captive reinsurer which has been operational since January 1, 2008. Aimed at optimizing and managing the Group’s risk retention strategy, this captive reinsurer handles property and casualty and business interruption programs, as well as short-term credit risks and transportation risks. It operates on a program-by-program basis, with a maximum amount of coverage per loss and a cumulative cap per insurance year. It is scheduled to become progressively more involved in Nexans’ insurance program in line with opportunities and limitations in the insurance market. The Group relies on the expertise of a global network of insurance brokers to assist it in the control and management of the risks to which it is exposed in all the countries where it operates. In addition, it has maintained its commitment to reducing industrial risks by putting in place a specific three-year investment program for 2008 through 2010, designed jointly by the Industrial Management Department and experts from the Group’s property and casualty insurer. These experts visit the manufacturing sites on an annual basis, making targeted recommendations on how to improve risk prevention and safety, as well as subsequently monitoring that the recommendations have been implemented.]]></basicChars>
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		<raw><![CDATA[6.2follows:FINANCIAL RISKSpayments, and irrevocable letters of credit confirmed by banks approved by the Treasury Department. For its other markets Nexans has set up an insurance program relating to the risk of non-recovery of customer receivables through a short-term credit insurance policy for sales in local and export markets. This credit insurance policy – which has been taken out with the specialist international insurer, Coface – covers companies representing approximately 80% of the Group’s net sales. By agreement with the insurer, certain customers representing a very low risk of default over the short term are excluded from the credit insurance policy. As part of its insurance coverage, Coface provides Nexans with access to a database concerning the credit risk associated with each customer. This enables each unit to manage its risk by monitoring customer outstandings against the insured credit limits, and in the event of default, to limit the impact on its cash position and income to any amount over the coverage limit and the policy deductible (generally 10% of the insured amount). Outstandings in excess of the amounts covered by the credit insurance policy are subject to periodic review by the Country Managers and their financial controllers.The financial risks to which the Nexans Group is exposed are as • Liquidity risks • Interest rate risks • Foreign exchange risks • Metal price risks • Counterparty credit risks All of these risks are described in detail in Note 25 to the consolidated financial statements. A sensitivity analysis for 2007 is also provided in the same note.6.3CUSTOMER CREDIT RISKSThe diversification of Nexans’ businesses, customers and geographic base provides Group-level protection against credit risk. With respect to Nexans’ internal practices to reduce customer credit risk, for certain major export markets the Group implements secured payment methods including down payments on orders, progress2007 (in millions of euros)200620052004 after IAS 32-392004Gross trade receivables Provisions Net amount Provisions as a percentage1,129 (37) 1,092 – 3.3%1,313 (41) 1,272 – 3.1%1,147 (42) 1,105 – 3.7%879 (43) 836 – 4.9%749 (43) 706 – 5.7%Provisions in 2007 were on a par with 2006, reflecting the fact that the level of default risk on the Group’s trade receivables remained stable.]]></raw>
		<basicChars><![CDATA[6.2follows:FINANCIAL RISKSpayments, and irrevocable letters of credit confirmed by banks approved by the Treasury Department. For its other markets Nexans has set up an insurance program relating to the risk of non-recovery of customer receivables through a short-term credit insurance policy for sales in local and export markets. This credit insurance policy – which has been taken out with the specialist international insurer, Coface – covers companies representing approximately 80% of the Group’s net sales. By agreement with the insurer, certain customers representing a very low risk of default over the short term are excluded from the credit insurance policy. As part of its insurance coverage, Coface provides Nexans with access to a database concerning the credit risk associated with each customer. This enables each unit to manage its risk by monitoring customer outstandings against the insured credit limits, and in the event of default, to limit the impact on its cash position and income to any amount over the coverage limit and the policy deductible (generally 10% of the insured amount). Outstandings in excess of the amounts covered by the credit insurance policy are subject to periodic review by the Country Managers and their financial controllers.The financial risks to which the Nexans Group is exposed are as • Liquidity risks • Interest rate risks • Foreign exchange risks • Metal price risks • Counterparty credit risks All of these risks are described in detail in Note 25 to the consolidated financial statements. A sensitivity analysis for 2007 is also provided in the same note.6.3CUSTOMER CREDIT RISKSThe diversification of Nexans’ businesses, customers and geographic base provides Group-level protection against credit risk. With respect to Nexans’ internal practices to reduce customer credit risk, for certain major export markets the Group implements secured payment methods including down payments on orders, progress2007 (in millions of euros)200620052004 after IAS 32-392004Gross trade receivables Provisions Net amount Provisions as a percentage1,129 (37) 1,092 – 3.3%1,313 (41) 1,272 – 3.1%1,147 (42) 1,105 – 3.7%879 (43) 836 – 4.9%749 (43) 706 – 5.7%Provisions in 2007 were on a par with 2006, reflecting the fact that the level of default risk on the Group’s trade receivables remained stable.]]></basicChars>
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		<raw><![CDATA[7SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE9PROPOSED APPROPRIATION OF INCOMENone.The Annual Shareholders’ Meeting will be asked to approve the appropriation of net income for the year – totaling 110,030,505 euros – as follows:8PARENT COMPANY BUSINESS OVERVIEW• Retained earnings brought forward from prior years • 2007 net income • Legal reserve Total distributable income 141,672,302 euros 110,030,505 euros 41,341 euros 251,661,466 eurosNexans serves as the Group’s holding company, manages its financing, and centralizes its cash holdings. Nexans also plays a central role in collecting intra-Group royalty fees for RetD, which it then allocates among its subsidiaries according to the RetD programs they carry out for the benefit of the entire Group. The parent Company’s sales for the year ended December 31, 2007 totaled 13,262,694 euros, and came primarily from services billed to its subsidiaries. Net income for the year grew to 110,030,505 euros from 88,094,875 euros in 2006. This increase primarily reflects a rise in the Company’s net financial income, which consisted mainly of a dividend paid to Nexans by its subsidiary, Nexans Participations. A net tax consolidation loss of 672,422 euros was recognized during the period. The Company’s equity at end-2007 was 1,416,217,646 euros, compared with 1,329,901,775 euros at December 31, 2006.Appropriation of income: (Based on the number of shares comprising the share capital at December 31, 2007) • Dividend payment of 2 euros per share representing a total dividend of • Retained earnings Total 51,356,710 euros 200,304,756 euros 251,661,466 eurosThe Annual Shareholders’ Meeting will be asked to approve the payment of a dividend of 2 euros per share, corresponding to a total dividend payout of 51,356,710 euros based on the number of shares comprising the share capital at December 31, 2007. However, this amount may be increased (implying a decrease in retained earnings) by a maximum total amount of 9,622,074 euros taking into account the 4,811,037 maximum additional shares that may be issued from January 1, 2008 through the date of the Annual Shareholders’ Meeting held to approve the dividend payment as a result of (i) the exercise of stock options, (ii) subscriptions for shares issued under the employee share issue, to be implemented prior to said Shareholders’ Meeting pursuant to a decision of the Board of Directors’ meeting held on July 24, 2007 and (iii) the conversion of outstanding convertible bonds. The Annual Shareholders’ Meeting will be asked to approve the payment of such dividends as from April 29, 2008. In the event that Nexans still holds treasury stock at the time the dividend is paid, the amount corresponding to the dividends not paid on these shares shall be appropriated to retained earnings. All of the Company’s shares are of the same category and the total amount of dividends paid will qualify for the 40% relief provided for in article 158, paragraph 3, sub-paragraph 2 of the French General Tax Code (information disclosed in accordance with article 243 bis58of said Code]]></raw>
		<basicChars><![CDATA[7SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE9PROPOSED APPROPRIATION OF INCOMENone.The Annual Shareholders’ Meeting will be asked to approve the appropriation of net income for the year – totaling 110,030,505 euros – as follows:8PARENT COMPANY BUSINESS OVERVIEW• Retained earnings brought forward from prior years • 2007 net income • Legal reserve Total distributable income 141,672,302 euros 110,030,505 euros 41,341 euros 251,661,466 eurosNexans serves as the Group’s holding company, manages its financing, and centralizes its cash holdings. Nexans also plays a central role in collecting intra-Group royalty fees for RetD, which it then allocates among its subsidiaries according to the RetD programs they carry out for the benefit of the entire Group. The parent Company’s sales for the year ended December 31, 2007 totaled 13,262,694 euros, and came primarily from services billed to its subsidiaries. Net income for the year grew to 110,030,505 euros from 88,094,875 euros in 2006. This increase primarily reflects a rise in the Company’s net financial income, which consisted mainly of a dividend paid to Nexans by its subsidiary, Nexans Participations. A net tax consolidation loss of 672,422 euros was recognized during the period. The Company’s equity at end-2007 was 1,416,217,646 euros, compared with 1,329,901,775 euros at December 31, 2006.Appropriation of income: (Based on the number of shares comprising the share capital at December 31, 2007) • Dividend payment of 2 euros per share representing a total dividend of • Retained earnings Total 51,356,710 euros 200,304,756 euros 251,661,466 eurosThe Annual Shareholders’ Meeting will be asked to approve the payment of a dividend of 2 euros per share, corresponding to a total dividend payout of 51,356,710 euros based on the number of shares comprising the share capital at December 31, 2007. However, this amount may be increased (implying a decrease in retained earnings) by a maximum total amount of 9,622,074 euros taking into account the 4,811,037 maximum additional shares that may be issued from January 1, 2008 through the date of the Annual Shareholders’ Meeting held to approve the dividend payment as a result of (i) the exercise of stock options, (ii) subscriptions for shares issued under the employee share issue, to be implemented prior to said Shareholders’ Meeting pursuant to a decision of the Board of Directors’ meeting held on July 24, 2007 and (iii) the conversion of outstanding convertible bonds. The Annual Shareholders’ Meeting will be asked to approve the payment of such dividends as from April 29, 2008. In the event that Nexans still holds treasury stock at the time the dividend is paid, the amount corresponding to the dividends not paid on these shares shall be appropriated to retained earnings. All of the Company’s shares are of the same category and the total amount of dividends paid will qualify for the 40% relief provided for in article 158, paragraph 3, sub-paragraph 2 of the French General Tax Code (information disclosed in accordance with article 243 bis58of said Code]]></basicChars>
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		<raw><![CDATA[The Annual Shareholders’ Meeting takes cognizance of the Board of Directors’ statement that the amount of dividends paid for the last three years and the dividends qualifying for the 50% or 40% relief were as follows:2004 (paid in 2005)2005 (paid in 2006)2006 (paid in 2007)Dividend per share Number of shares qualifying Total amount€0.50 21,136,773 €10,568,386.50€1.00 21,661,745 €21,661,745.00€1.20 25,539,805 €30,647,766.00For 2004, all the shares were of the same category and qualified for the 50% relief. For 2005 and 2006, all the shares were of the same category and qualified for the 40% relief.12 BOARD OF DIRECTORS AND SENIOR MANAGEMENTAt the Shareholders’ Meeting held on May 10, 2007, Nexans’ shareholders re-elected the following directors for a four-year term: Gianpaolo Caccini, Jean-Marie Chevalier, Georges Chodron de Courcel, Jacques Garaïalde and Ervin Rosenberg. The Annual Shareholders’ Meeting also approved the appointment of three new directors for a four-year term: Jérôme Gallot, Jean-Louis Gerondeau and Nicolas de Tavernost, all of whom are considered to be independent with regard to Nexans. The terms of office of the members of the Board of Directors expire as10 FIVE-YEAR FINANCIAL SUMMARYIn accordance with article R.225-102 of the French Commercial Code, a table detailing the Company’s financial results for the last five financial years is appended to this report.11 NON-TAX DEDUCTIBLE EXPENSESNo non tax-deductible expenses, as defined in article 39, paragraph 4 of the French General Tax Code, were incurred during 2007.follows: Year term expires • 2008 • 2010 • 2011 Director Colette Lewiner Gérard Hauser François Polge de Combret Gianpaolo Caccini Jean-Marie Chevalier Georges Chodron de Courcel Jérôme Gallot Jacques Garaïalde Jean-Louis Gerondeau Ervin Rosenberg Nicolas de Tavernost Also, the Board of Directors’ Meeting of May 10, 2007 changed the composition of the Accounts and Audit Committee, whose members now comprise Georges Chodron de Courcel, Jean-Louis Gerondeau and Jérôme Gallot (Committee Chairman).]]></raw>
		<basicChars><![CDATA[The Annual Shareholders’ Meeting takes cognizance of the Board of Directors’ statement that the amount of dividends paid for the last three years and the dividends qualifying for the 50% or 40% relief were as follows:2004 (paid in 2005)2005 (paid in 2006)2006 (paid in 2007)Dividend per share Number of shares qualifying Total amount€0.50 21,136,773 €10,568,386.50€1.00 21,661,745 €21,661,745.00€1.20 25,539,805 €30,647,766.00For 2004, all the shares were of the same category and qualified for the 50% relief. For 2005 and 2006, all the shares were of the same category and qualified for the 40% relief.12 BOARD OF DIRECTORS AND SENIOR MANAGEMENTAt the Shareholders’ Meeting held on May 10, 2007, Nexans’ shareholders re-elected the following directors for a four-year term: Gianpaolo Caccini, Jean-Marie Chevalier, Georges Chodron de Courcel, Jacques Garaïalde and Ervin Rosenberg. The Annual Shareholders’ Meeting also approved the appointment of three new directors for a four-year term: Jérôme Gallot, Jean-Louis Gerondeau and Nicolas de Tavernost, all of whom are considered to be independent with regard to Nexans. The terms of office of the members of the Board of Directors expire as10 FIVE-YEAR FINANCIAL SUMMARYIn accordance with article R.225-102 of the French Commercial Code, a table detailing the Company’s financial results for the last five financial years is appended to this report.11 NON-TAX DEDUCTIBLE EXPENSESNo non tax-deductible expenses, as defined in article 39, paragraph 4 of the French General Tax Code, were incurred during 2007.follows: Year term expires • 2008 • 2010 • 2011 Director Colette Lewiner Gérard Hauser François Polge de Combret Gianpaolo Caccini Jean-Marie Chevalier Georges Chodron de Courcel Jérôme Gallot Jacques Garaïalde Jean-Louis Gerondeau Ervin Rosenberg Nicolas de Tavernost Also, the Board of Directors’ Meeting of May 10, 2007 changed the composition of the Accounts and Audit Committee, whose members now comprise Georges Chodron de Courcel, Jean-Louis Gerondeau and Jérôme Gallot (Committee Chairman).]]></basicChars>
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		<raw><![CDATA[12.1 DIRECTORSHIPS AND OTHER POSITIONS HELD IN OTHER COMPANIES BY NEXANS’ CORPORATE OFFICERS IN 2007List of directorships and positions held during financial year 2007 in all other companiesGérard Hauser– Chairman and CEO of Nexans – Director of Alstom, Faurecia, Aplix, IpsenFrédéric Vincent– Chief Operating Officer of Nexans – Director of Electro-Banque, Essex Nexans Europe – Chairman and Director of Nexans USA Inc.* – Director of Nexans Canada Inc.*, International Cables Co.*, Nexans Energy USA Inc.*, Liban Câbles Contracting SAL*, Liban Câbles Holding SAL*, Liban Câbles Packing SAL*, Liban Câbles SAL*Gianpaolo Caccini– President of Assovetro, the Italian Association of Glass Manufacturers – Director of Saint Gobain, JM Huber Corporation*, Saint Gobain Corporation*Georges Chodron de Courcel– Chief Operating Officer of BNP Paribas – Member of the Executive Committee of BNP Paribas – Chairman of Financière BNP Paribas SAS, Compagnie d’Investissement de Paris SAS, BNP Paribas (Switzerland) SA* – Director of Bouygues SA, Alstom, F.F.P. (Société Foncière Financière et de Participations), Verner Investissements SAS, Erbé SA*, BNP Paribas ZAO*, BNL (Banca Nazionale del Lavoro)*, Scor Holding (Switzerland) AG* – Member of the Supervisory Board of Lagardère SA – Non-voting director of Exane, Scor SA and SafranJacques GaraÏalde– Managing Director of Kohlberg Kravis Roberts et Co. Ltd. – Chairman of the PagesJaunes Group’s Board of Directors – Chairman and CEO of Médiannuaire Holding – Director of Legrand, Tarkett SA – Member of the Executive Committee of Société d’Investissement FamilialeErvin Rosenberg– Advisor to the Chairman of Compagnie Financière Edmond de Rothschild Banque – Director of Carbone Lorraine – Member of the Supervisory Boards of LCF Rothschild Financial Services, Mobility Saint Honoré – Chairman and CEO of Financière Savoisienne – Non-voting director of Compagnie Financière Edmond de Rothschild BanqueJean-Marie Chevalier– Professor of Economics at Université Paris IX-Dauphine – Director of Cambridge Energy Research AssociatesColette Lewiner– Vice President, Global Leader Energy, Utilities et Chemicals of Cap Gemini – Director of La Poste, TGS-NOPEC Geophysical Company ASA* – Member of the Information Technology Strategic Board reporting to the Prime Minister – Member of the Académie des TechnologiesFrançois Polge de Combret– Senior Advisor for UBS Investment Bank – Director of Renault, Bouygues Telecom – Member of the Supervisory Board of Safran(*) Directorships and positions held in non-French companies.]]></raw>
		<basicChars><![CDATA[12.1 DIRECTORSHIPS AND OTHER POSITIONS HELD IN OTHER COMPANIES BY NEXANS’ CORPORATE OFFICERS IN 2007List of directorships and positions held during financial year 2007 in all other companiesGérard Hauser– Chairman and CEO of Nexans – Director of Alstom, Faurecia, Aplix, IpsenFrédéric Vincent– Chief Operating Officer of Nexans – Director of Electro-Banque, Essex Nexans Europe – Chairman and Director of Nexans USA Inc.* – Director of Nexans Canada Inc.*, International Cables Co.*, Nexans Energy USA Inc.*, Liban Câbles Contracting SAL*, Liban Câbles Holding SAL*, Liban Câbles Packing SAL*, Liban Câbles SAL*Gianpaolo Caccini– President of Assovetro, the Italian Association of Glass Manufacturers – Director of Saint Gobain, JM Huber Corporation*, Saint Gobain Corporation*Georges Chodron de Courcel– Chief Operating Officer of BNP Paribas – Member of the Executive Committee of BNP Paribas – Chairman of Financière BNP Paribas SAS, Compagnie d’Investissement de Paris SAS, BNP Paribas (Switzerland) SA* – Director of Bouygues SA, Alstom, F.F.P. (Société Foncière Financière et de Participations), Verner Investissements SAS, Erbé SA*, BNP Paribas ZAO*, BNL (Banca Nazionale del Lavoro)*, Scor Holding (Switzerland) AG* – Member of the Supervisory Board of Lagardère SA – Non-voting director of Exane, Scor SA and SafranJacques GaraÏalde– Managing Director of Kohlberg Kravis Roberts et Co. Ltd. – Chairman of the PagesJaunes Group’s Board of Directors – Chairman and CEO of Médiannuaire Holding – Director of Legrand, Tarkett SA – Member of the Executive Committee of Société d’Investissement FamilialeErvin Rosenberg– Advisor to the Chairman of Compagnie Financière Edmond de Rothschild Banque – Director of Carbone Lorraine – Member of the Supervisory Boards of LCF Rothschild Financial Services, Mobility Saint Honoré – Chairman and CEO of Financière Savoisienne – Non-voting director of Compagnie Financière Edmond de Rothschild BanqueJean-Marie Chevalier– Professor of Economics at Université Paris IX-Dauphine – Director of Cambridge Energy Research AssociatesColette Lewiner– Vice President, Global Leader Energy, Utilities et Chemicals of Cap Gemini – Director of La Poste, TGS-NOPEC Geophysical Company ASA* – Member of the Information Technology Strategic Board reporting to the Prime Minister – Member of the Académie des TechnologiesFrançois Polge de Combret– Senior Advisor for UBS Investment Bank – Director of Renault, Bouygues Telecom – Member of the Supervisory Board of Safran(*) Directorships and positions held in non-French companies.]]></basicChars>
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	<page id="63">
		<raw><![CDATA[List of directorships and positions held during financial year 2007 in all other companiesJérôme Gallot– Chairman of CDC Entreprises – Director of ICADE, Caixa Seguros*, Plastic Omnium, CNP Assurances – Member of the Supervisory Board of CNP Assurances, Compagnie Nationale du Rhône (CNR), NRJ Group, Schneider Electric SA – Non-voting director of OseoJean-Louis Gerondeau– Member of the Management Board of Zodiac – Director of Faurecia, Sicma Aero Seat, Avox-Eros Services Inc*, Avox Systems Inc*, Evac International OY*, Evac OY*, Marine Holding Corp*, Zodiac Espanola*, Zodiac Automotive UK*, Air Cruisers*, Sicma Aero Seat Services*, Zodiac Automotive US*, Zodiac US Corporation*, Zodiac Group of Australia*, MAG Aerospace Industries Inc*, CetD Zodiac*, CetD Aerospace Canada* – Chairman and Vice Chairman of the Supervisory Board of the Institute for Industrial Development (IDI) – Chairman of Aerazur, Intertechnique, Aerazur Newco, Zodiac Marine Holding, Zodiac Airline Equipment LLC*Nicolas de Tavernost– Chairman of the Management Board of M6 – Member of the Supervisory Board of RTL – Director of Antena 3*, GL Event SA, Extension TV SA, TF6 Gestion SA, Société Nouvelle de Distribution SA – President of the Association of European Commercial Television (ACT)*(*) Directorships and positions held in non-French companies.12.2 DIRECTORS’ INTERESTS AND COMPENSATION PAID DURING THE YEAR12.2.1 Compensation paid to members of the Board of Directors The annual amount of Directors’ fees granted to Directors was set at 400,000 euros by the shareholders at the Shareholders’ Meeting held on May 15, 2006, for the financial year beginning January 1, 2006. The methods for allocating the Directors’ fees determined by the Board of Directors include the calculation of a fixed portion and a variable portion based on the Directors’ attendance at Board Meetings and their membership of committees. The Board of Directors’ meeting of March 27, 2007 decided that the following methods would be used for allocating the Directors’ fees: • each of the Directors, including the Chairman, receives 17,500 euros for the fixed portion; • each of the Directors, including the Chairman, receives an additional 2,000 euros for each Board Meeting attended, subject to a ceiling of 12,000 euros per Director;• each of the members of the Accounts and Audit Committee receives 3,000 euros per meeting, subject to a ceiling of 12,000 euros per year; • each of the members of the Appointments and Compensation Committee receives 3,000 euros per meeting, subject to a ceiling of 12,000 euros per year. Based on these allocation methods, Gianpaolo Caccini, Georges Chodron de Courcel, François Polge de Combret and Ervin Rosenberg received 38,500 euros for 2007; Gérard Hauser, JeanMarie Chevalier, Colette Lewiner and Jacques Garaïalde received 29,500 euros; Jérôme Gallot received 27,267 euros ; Jean-Louis Gerondeau received 25,267 euros and Nicolas de Tavernost received 21,267 euros. The outgoing Directors received the following amounts: 13,233 euros for Jean-Louis Vinciguerra, 8,233 euros for Patrick Puy and 6,233 euros for Yves Lyon-Caen. The total amount of Directors’ fees allocated for 2007 and paid to the members of the Board of Directors at the end of the year was 345,801 euros. Taking into account the amount paid in May 2007 to the outgoing Directors, the total Directors’ fees allocated for 2007 amounted to 373,500 euros.]]></raw>
		<basicChars><![CDATA[List of directorships and positions held during financial year 2007 in all other companiesJérôme Gallot– Chairman of CDC Entreprises – Director of ICADE, Caixa Seguros*, Plastic Omnium, CNP Assurances – Member of the Supervisory Board of CNP Assurances, Compagnie Nationale du Rhône (CNR), NRJ Group, Schneider Electric SA – Non-voting director of OseoJean-Louis Gerondeau– Member of the Management Board of Zodiac – Director of Faurecia, Sicma Aero Seat, Avox-Eros Services Inc*, Avox Systems Inc*, Evac International OY*, Evac OY*, Marine Holding Corp*, Zodiac Espanola*, Zodiac Automotive UK*, Air Cruisers*, Sicma Aero Seat Services*, Zodiac Automotive US*, Zodiac US Corporation*, Zodiac Group of Australia*, MAG Aerospace Industries Inc*, CetD Zodiac*, CetD Aerospace Canada* – Chairman and Vice Chairman of the Supervisory Board of the Institute for Industrial Development (IDI) – Chairman of Aerazur, Intertechnique, Aerazur Newco, Zodiac Marine Holding, Zodiac Airline Equipment LLC*Nicolas de Tavernost– Chairman of the Management Board of M6 – Member of the Supervisory Board of RTL – Director of Antena 3*, GL Event SA, Extension TV SA, TF6 Gestion SA, Société Nouvelle de Distribution SA – President of the Association of European Commercial Television (ACT)*(*) Directorships and positions held in non-French companies.12.2 DIRECTORS’ INTERESTS AND COMPENSATION PAID DURING THE YEAR12.2.1 Compensation paid to members of the Board of Directors The annual amount of Directors’ fees granted to Directors was set at 400,000 euros by the shareholders at the Shareholders’ Meeting held on May 15, 2006, for the financial year beginning January 1, 2006. The methods for allocating the Directors’ fees determined by the Board of Directors include the calculation of a fixed portion and a variable portion based on the Directors’ attendance at Board Meetings and their membership of committees. The Board of Directors’ meeting of March 27, 2007 decided that the following methods would be used for allocating the Directors’ fees: • each of the Directors, including the Chairman, receives 17,500 euros for the fixed portion; • each of the Directors, including the Chairman, receives an additional 2,000 euros for each Board Meeting attended, subject to a ceiling of 12,000 euros per Director;• each of the members of the Accounts and Audit Committee receives 3,000 euros per meeting, subject to a ceiling of 12,000 euros per year; • each of the members of the Appointments and Compensation Committee receives 3,000 euros per meeting, subject to a ceiling of 12,000 euros per year. Based on these allocation methods, Gianpaolo Caccini, Georges Chodron de Courcel, François Polge de Combret and Ervin Rosenberg received 38,500 euros for 2007; Gérard Hauser, JeanMarie Chevalier, Colette Lewiner and Jacques Garaïalde received 29,500 euros; Jérôme Gallot received 27,267 euros ; Jean-Louis Gerondeau received 25,267 euros and Nicolas de Tavernost received 21,267 euros. The outgoing Directors received the following amounts: 13,233 euros for Jean-Louis Vinciguerra, 8,233 euros for Patrick Puy and 6,233 euros for Yves Lyon-Caen. The total amount of Directors’ fees allocated for 2007 and paid to the members of the Board of Directors at the end of the year was 345,801 euros. Taking into account the amount paid in May 2007 to the outgoing Directors, the total Directors’ fees allocated for 2007 amounted to 373,500 euros.]]></basicChars>
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		<raw><![CDATA[12.2.2 Compensation paid to the Chairman and CEO The components of the Chairman and CEO’s compensation are as follows:Due for 2006 (in euros) Paid in 2006 (in euros) Due for 2007 (in euros) Paid in 2007 (in euros)Fixed compensation Variable compensation Directors’ fees Other benefits TOTAL791,670 858,880 25,000 1,836 1,677,386791,670 712,000 50,000(1) 1,836 1,555,506(2)800,000 1,400,000 29,500 1,836 2,231,336800,000 858,880 29,500 1,836 1,690,216(2)(1) Comprised of 25,000 euros paid for each of the years 2005 and 2006. (2) Pre-tax total gross compensation (based on annual payroll returns).In accordance with the decisions of the Board of Directors’ meeting of November 23, 2006, the Chairman and CEO’s variable compensation for 2007 represents 100% of his basic salary (previously 80%) and varies between 0% and 175% of said salary (previously 0% to 150%), depending on his performance in relation to the objectives set by the Board of Directors. For 2007, 60% of this variable compensation was based on quantitative targets, by reference to operating income and ROCE, and 40% was based on qualitative personal objectives. The Chairman and CEO is eligible for the supplementary pension plan set up for members of the Group’s management. The Chairman and CEO is not entitled to any severance payment if his term of office is terminated. He holds an employment contractwith one of the principal subsidiaries of the Group which was signed before Nexans went public. This contract has been suspended for the duration of his service as Chairman and CEO but will come back into force automatically if he ceases to serve as such for any reason whatsoever. If the contract is terminated for any reason, he is subject to a non-compete clause that provides for the payment of an amount equal to his total gross compensation received over the 12 months prior to the discontinuance of his service as Chairman of Nexans. In addition, in the event of dismissal (except for gross negligence or misconduct), he will also be entitled to a severance payment equal to his total gross compensation received over the 12 months preceding the discontinuance of his service as Chairman of Nexans.12.2.3 Compensation paid to the Chief Operating Officer The components of the Chief Operating Officer’s compensation are as follows:Due for 2006(1) (in euros) Paid in 2006 (in euros) Due for 2007 (in euros) Paid in 2007 (in euros)Fixed compensation Variable compensation and bonuses Other benefits TOTAL287,505 336,996 2,618 627,119287,505 – 2,618 290,123460,000 406,990 4,188 871,178460,000 436,996(2) 4,188 901,184(3)(1) Prorated since May 15, 2006 when his term of office as Chief Operating Officer commenced. (2) Including 100,000 euros paid under his employment contract which applied until the commencement of his term of office as Chief Operating Officer. (3) Pre-tax total gross compensation (based on annual payroll returns).]]></raw>
		<basicChars><![CDATA[12.2.2 Compensation paid to the Chairman and CEO The components of the Chairman and CEO’s compensation are as follows:Due for 2006 (in euros) Paid in 2006 (in euros) Due for 2007 (in euros) Paid in 2007 (in euros)Fixed compensation Variable compensation Directors’ fees Other benefits TOTAL791,670 858,880 25,000 1,836 1,677,386791,670 712,000 50,000(1) 1,836 1,555,506(2)800,000 1,400,000 29,500 1,836 2,231,336800,000 858,880 29,500 1,836 1,690,216(2)(1) Comprised of 25,000 euros paid for each of the years 2005 and 2006. (2) Pre-tax total gross compensation (based on annual payroll returns).In accordance with the decisions of the Board of Directors’ meeting of November 23, 2006, the Chairman and CEO’s variable compensation for 2007 represents 100% of his basic salary (previously 80%) and varies between 0% and 175% of said salary (previously 0% to 150%), depending on his performance in relation to the objectives set by the Board of Directors. For 2007, 60% of this variable compensation was based on quantitative targets, by reference to operating income and ROCE, and 40% was based on qualitative personal objectives. The Chairman and CEO is eligible for the supplementary pension plan set up for members of the Group’s management. The Chairman and CEO is not entitled to any severance payment if his term of office is terminated. He holds an employment contractwith one of the principal subsidiaries of the Group which was signed before Nexans went public. This contract has been suspended for the duration of his service as Chairman and CEO but will come back into force automatically if he ceases to serve as such for any reason whatsoever. If the contract is terminated for any reason, he is subject to a non-compete clause that provides for the payment of an amount equal to his total gross compensation received over the 12 months prior to the discontinuance of his service as Chairman of Nexans. In addition, in the event of dismissal (except for gross negligence or misconduct), he will also be entitled to a severance payment equal to his total gross compensation received over the 12 months preceding the discontinuance of his service as Chairman of Nexans.12.2.3 Compensation paid to the Chief Operating Officer The components of the Chief Operating Officer’s compensation are as follows:Due for 2006(1) (in euros) Paid in 2006 (in euros) Due for 2007 (in euros) Paid in 2007 (in euros)Fixed compensation Variable compensation and bonuses Other benefits TOTAL287,505 336,996 2,618 627,119287,505 – 2,618 290,123460,000 406,990 4,188 871,178460,000 436,996(2) 4,188 901,184(3)(1) Prorated since May 15, 2006 when his term of office as Chief Operating Officer commenced. (2) Including 100,000 euros paid under his employment contract which applied until the commencement of his term of office as Chief Operating Officer. (3) Pre-tax total gross compensation (based on annual payroll returns).]]></basicChars>
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		<raw><![CDATA[In accordance with the decisions of Board of Directors’ meeting of November 23, 2006, the Chief Operating Officer’s variable compensation for 2007 has not changed and still represents 60% of his basic salary. His variable remuneration for 2007 varies between 0% and 100% of said salary (previously 90%), depending on his performance in relation to the objectives set by the Board of Directors. For 2007, 70% of the Chief Operating Officer’s variable compensation was calculated based on quantitative targets, by reference to operating income and operating ROCE, and 30% was based on qualitative personal objectives. The Chief Operating Officer is eligible for the supplementary pension plan set up for members of the Group’s management. The Chief Operating Officer is not entitled to any severance payment if his term of office is terminated. He holds an employment contract with Nexans which has been suspended for the duration of his service as Chief Operating Officer but this contract will come back into force automatically if he ceases to serve as such for any reason whatsoever. In the event of dismissal (except for gross negligence or misconduct), he will be entitled to the severance payment due in accordance with the applicable collective agreement plus a severance payment equal to twenty-four times his most recent monthly salary (including bonus) prior to the discontinuance of his service as Chief Operating Officer.12.3 PROVISIONSThe total provisions recognized at December 31, 2007 in relation to pension plans, retirement benefits, or other benefits to be paid to the Chairman and CEO and the Chief Operating Officer amounted to 7.7 million euros.12.4 INFORMATION AS TO EVENTS THAT COULD TAKE PLACE IN THE CASE OF A PUBLIC OFFERIn addition to the amounts described in Sections 12.2.2 and 12.2.3 above regarding the Chairman and CEO and Chief Operating Officer, other Nexans Executive Committee members holding employment contracts will be entitled to severance pay equal to two times their total gross annual salary if dismissed for reasons other than gross negligence or misconduct. This amount will be payable in addition to the severance payment due in accordance with the applicable collective agreement for all but two members, for whom the total severance pay is fixed at two times their total gross annual salary. In the case of a public offer involving Nexans shares, members of the Nexans Executive Committee (including the Chairman and CEO and the Chief Operating Officer) and Nexans employees may exercise their stock options immediately and sell the Nexans shares received from the exercise anytime during the period that the public offer is in effect.]]></raw>
		<basicChars><![CDATA[In accordance with the decisions of Board of Directors’ meeting of November 23, 2006, the Chief Operating Officer’s variable compensation for 2007 has not changed and still represents 60% of his basic salary. His variable remuneration for 2007 varies between 0% and 100% of said salary (previously 90%), depending on his performance in relation to the objectives set by the Board of Directors. For 2007, 70% of the Chief Operating Officer’s variable compensation was calculated based on quantitative targets, by reference to operating income and operating ROCE, and 30% was based on qualitative personal objectives. The Chief Operating Officer is eligible for the supplementary pension plan set up for members of the Group’s management. The Chief Operating Officer is not entitled to any severance payment if his term of office is terminated. He holds an employment contract with Nexans which has been suspended for the duration of his service as Chief Operating Officer but this contract will come back into force automatically if he ceases to serve as such for any reason whatsoever. In the event of dismissal (except for gross negligence or misconduct), he will be entitled to the severance payment due in accordance with the applicable collective agreement plus a severance payment equal to twenty-four times his most recent monthly salary (including bonus) prior to the discontinuance of his service as Chief Operating Officer.12.3 PROVISIONSThe total provisions recognized at December 31, 2007 in relation to pension plans, retirement benefits, or other benefits to be paid to the Chairman and CEO and the Chief Operating Officer amounted to 7.7 million euros.12.4 INFORMATION AS TO EVENTS THAT COULD TAKE PLACE IN THE CASE OF A PUBLIC OFFERIn addition to the amounts described in Sections 12.2.2 and 12.2.3 above regarding the Chairman and CEO and Chief Operating Officer, other Nexans Executive Committee members holding employment contracts will be entitled to severance pay equal to two times their total gross annual salary if dismissed for reasons other than gross negligence or misconduct. This amount will be payable in addition to the severance payment due in accordance with the applicable collective agreement for all but two members, for whom the total severance pay is fixed at two times their total gross annual salary. In the case of a public offer involving Nexans shares, members of the Nexans Executive Committee (including the Chairman and CEO and the Chief Operating Officer) and Nexans employees may exercise their stock options immediately and sell the Nexans shares received from the exercise anytime during the period that the public offer is in effect.]]></basicChars>
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		<raw><![CDATA[12.5 SUMMARY OF TRANSACTIONS MADE BY CORPORATE OFFICERS AND SENIOR MANAGERS RELATING TO THE COMPANY’S SECURITIES, AS REQUIRED BY ARTICLE L.621-18-2 OF THE FRENCH MONETARY AND FINANCIAL CODEThe following table summarizes the transactions made by Nexans’ corporate officers and Executive Committee members in relation to the Company’s securities during 2007 and disclosed to the AMF (Autorité des Marchés Financiers):Corporate officer Transaction date 2007 Transaction Financial instrument Unit price (euros) Transaction total (gross) (euros)Jean-Louis Gerondeau Gérard Hauser26/06 01/02 02/02 12/02Acquisition Subscription Hedge Subscription Hedge Subscription Hedge Subscription Hedge Sale Subscription Hedge Subscription Sale SaleTransactionShares Exercise of options Exercise of options Exercise of options Exercise of options Shares Exercise of options Exercise of options Shares SharesFinancial instrument120.48 11.62 103.82 11.62 103.20 11.62 103.21 27.82 103.21 113.26 11.62 94.95 11.62 107.09 113.26Unit price (euros)12,133 367,471 62,911 5,368 347,750 3,703,602 217,875 72,625 669,312 2,123,625Transaction total (euros)21/05 Frédéric Vincent 28/02 25/04 21/05Executive Committee member Transaction date 2007Véronique Guillot-Pelpel29/05 18/06Subscription Acquisition26/11 Michel Lemaire 02/02Sale Subscription Hedge Subscription Hedge AcquisitionExercise of options Employee mutual fund units invested in Nexans shares Shares Exercise of options Exercise of options Employee mutual fund units invested in Nexans shares Exercise of options Shares Exercise of options Exercise of options Shares Shares Employee mutual fund units invested in Nexans shares Exercise of options11.62 121.64188,825 14,32989.95 11.62 87.29 27.82 82.16 121.64325,169 72,625 278,200 14,32918/06Pascal Portevin23/04 25/04 26/04 15/05 18/06Subscription Sale Subscription Subscription Sale Sale Acquisition11.62 108.10 11.62 11.62 108.10 115.26 121.64627 5,837 23,240 48,758 453,588 2,161,125 3,80020/1164Subscription Hedge Sale Sale27.82 91.62 112.27 112.27278,200Persons related to Pascal Portevin11/05 11/05Shares Shares112,270 112,270* Not including the transaction of April 20, 2007 declared in the name of Michel Lemaire, which was not complete]]></raw>
		<basicChars><![CDATA[12.5 SUMMARY OF TRANSACTIONS MADE BY CORPORATE OFFICERS AND SENIOR MANAGERS RELATING TO THE COMPANY’S SECURITIES, AS REQUIRED BY ARTICLE L.621-18-2 OF THE FRENCH MONETARY AND FINANCIAL CODEThe following table summarizes the transactions made by Nexans’ corporate officers and Executive Committee members in relation to the Company’s securities during 2007 and disclosed to the AMF (Autorité des Marchés Financiers):Corporate officer Transaction date 2007 Transaction Financial instrument Unit price (euros) Transaction total (gross) (euros)Jean-Louis Gerondeau Gérard Hauser26/06 01/02 02/02 12/02Acquisition Subscription Hedge Subscription Hedge Subscription Hedge Subscription Hedge Sale Subscription Hedge Subscription Sale SaleTransactionShares Exercise of options Exercise of options Exercise of options Exercise of options Shares Exercise of options Exercise of options Shares SharesFinancial instrument120.48 11.62 103.82 11.62 103.20 11.62 103.21 27.82 103.21 113.26 11.62 94.95 11.62 107.09 113.26Unit price (euros)12,133 367,471 62,911 5,368 347,750 3,703,602 217,875 72,625 669,312 2,123,625Transaction total (euros)21/05 Frédéric Vincent 28/02 25/04 21/05Executive Committee member Transaction date 2007Véronique Guillot-Pelpel29/05 18/06Subscription Acquisition26/11 Michel Lemaire 02/02Sale Subscription Hedge Subscription Hedge AcquisitionExercise of options Employee mutual fund units invested in Nexans shares Shares Exercise of options Exercise of options Employee mutual fund units invested in Nexans shares Exercise of options Shares Exercise of options Exercise of options Shares Shares Employee mutual fund units invested in Nexans shares Exercise of options11.62 121.64188,825 14,32989.95 11.62 87.29 27.82 82.16 121.64325,169 72,625 278,200 14,32918/06Pascal Portevin23/04 25/04 26/04 15/05 18/06Subscription Sale Subscription Subscription Sale Sale Acquisition11.62 108.10 11.62 11.62 108.10 115.26 121.64627 5,837 23,240 48,758 453,588 2,161,125 3,80020/1164Subscription Hedge Sale Sale27.82 91.62 112.27 112.27278,200Persons related to Pascal Portevin11/05 11/05Shares Shares112,270 112,270* Not including the transaction of April 20, 2007 declared in the name of Michel Lemaire, which was not complete]]></basicChars>
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		<raw><![CDATA[Executive Committee memberTransaction date 2007TransactionFinancial instrumentUnit price (euros)Transaction total (euros)Yvon Raak05/02 19/04 23/04 24/04Sale Subscription Subscription Hedge SaleShares Exercise of options Exercise of options Employee mutual fund units invested in Nexans shares Shares Employee mutual fund units invested in Nexans shares Shares Shares Shares Shares Shares Employee mutual fund units invested in Nexans shares Shares Exercise of options Employee mutual fund units invested in Nexans shares Exercise of options Exercise of options Shares Shares103.60 11.62 27.82 108.03 107.23105,983 72,625 347,750 58,81815/05 18/06Sale Acquisition115.26 121.641,440,750 14,329Persons related to Yvon Raak05/02 05/02 02/05 10/05 16/05 12/03Sale Sale Sale Sale Sale Acquisition102.60 102.50 107.62 114 114.36 93.23112,860 112,750 336,312 37,050 320,208 10,000Bruno Thomas16/04 21/05 18/06Sale Subscription Acquisition102.34 11.62 121.641,279,250 145,250 14,32907/09 Gordon Thursfield 25/04 16/05Subscription Subscription Sale Sale27.82 11.62 107.11 113.53278,200 29,050 267,775 22,706]]></raw>
		<basicChars><![CDATA[Executive Committee memberTransaction date 2007TransactionFinancial instrumentUnit price (euros)Transaction total (euros)Yvon Raak05/02 19/04 23/04 24/04Sale Subscription Subscription Hedge SaleShares Exercise of options Exercise of options Employee mutual fund units invested in Nexans shares Shares Employee mutual fund units invested in Nexans shares Shares Shares Shares Shares Shares Employee mutual fund units invested in Nexans shares Shares Exercise of options Employee mutual fund units invested in Nexans shares Exercise of options Exercise of options Shares Shares103.60 11.62 27.82 108.03 107.23105,983 72,625 347,750 58,81815/05 18/06Sale Acquisition115.26 121.641,440,750 14,329Persons related to Yvon Raak05/02 05/02 02/05 10/05 16/05 12/03Sale Sale Sale Sale Sale Acquisition102.60 102.50 107.62 114 114.36 93.23112,860 112,750 336,312 37,050 320,208 10,000Bruno Thomas16/04 21/05 18/06Sale Subscription Acquisition102.34 11.62 121.641,279,250 145,250 14,32907/09 Gordon Thursfield 25/04 16/05Subscription Subscription Sale Sale27.82 11.62 107.11 113.53278,200 29,050 267,775 22,706]]></basicChars>
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	<page id="68">
		<raw><![CDATA[13 INFORMATION ON NEXANS’ SHARE OWNERSHIP AND VOTING RIGHTSBased on information received pursuant to article L. 233-7 of the French Commercial Code, the only shareholders holding more than 5% of the Company’s share capital or voting rights at December 31, 2007 were: • FMR Corp. (USA) and Fidelity International Limited (FIL)(Bermuda). The following entities crossed legal disclosure thresholds in relation to the Company’s share capital and voting rights during the year: • Morgan Stanley et Co International Ltd., owned by Morgan Stanley, reported on January 9 and 10, 2007, respectively, that it had increased its interest in Nexans to above 5% of the Company’s share capital on January 8, 2007, and subsequently reduced its interest to below that threshold on Januar y 9, 2007. Morgan Stanley reported that at January 9, 2007, it owned 607,493 shares, or 2.41% of the share capital and 2.39% of the voting rights; • Dodge et Cox (USA) reported on March 6, 2007 that it had increased its interest in Nexans to above 10% of the Company’s voting rights on February 28, 2007 and that it held 1,866,440 shares representing 3,032,880 voting rights, or 7.35% of the share capital and 11.33% of the voting rights on that date; • JP Morgan Asset Management (UK), owned by JP Morgan Chase et Co., acting on behalf of subsidiaries engaged in third-party asset management, reported on May 24, 2007 that it had increased its interest in Nexans to above 5% of the Company’s share capital on May 15, 2007 and that it held 1,299,870 shares, or 5.11% of the share capital and 4.85% of the voting rights on behalf of said third parties; • Natixis S.A. (Paris) reported on June 12 and 18, 2007, that it had increased its interest in Nexans to above 5% of the Company’s share capital and voting rights on June 1, 2007 and subsequently reduced its interest to below that threshold on June 8, 2007. Natixis S.A. (Paris) reported that following these transactions, it held 910,777 shares, or 3.56% of the share capital and 3.38% of the voting rights; • FMR Corp. and Fidelity International Limited (FIL) (USA), acting on behalf of mutual funds managed by their subsidiaries and invested in Nexans shares, reported on June 22, 2007 that they had increased their interests in Nexans to above 5% of the Company’s share capital and voting rights on June 18, 2007 and that they held 1,399,342 shares, or 5.47% of the capital and 5.19% of the voting rights on behalf of said funds on that date;• JPMorgan Asset Management (UK), owned by JPMorgan Chase et Co., acting on behalf of subsidiaries engaged in third-party asset management, reported on July 12 and 18, 2007 that it had increased its interest in Nexans to above 5% of the Company’s voting rights on July 4, 2007 and subsequently reduced its interests to below that threshold on July 5, 2007. JPMorgan Asset Management (UK) reported that following these transactions, it held 1,339,139 shares, or 5.23% of the share capital and 4.96% of the voting rights on behalf of said parties; • JPMorgan Asset Management (UK), owned by JPMorgan Chase et Co. reported on August 16, 2007 that it had reduced its interest in Nexans to below 5% of the Company’s share capital on August 9, 2007 and that it held 1,253,515 shares, or 4.89% of the capital and 4.64% of the voting rights on that date; • Dodge et Cox (USA) reported on August 28 and 31, 2007 that it had reduced its interest in Nexans to below 10% of the Company’s voting rights on August 23, 2007 and subsequently, to below 5% of the Company’s share capital on August 28, 2007. Following these transactions, Dodge et Cox (USA) reported that it held 1,266,440 shares representing 2,532,880 voting rights, or 4.94% of the share capital and 9.38% of the voting rights; • JPMorgan Asset Management (UK), owned by JPMorgan Chase et Co., acting on behalf of subsidiaries engaged in third-party asset management, reported on September 5, 2007 that had increased its interest in Nexans to above 5% of the Company’s capital on August 30, 2007 and that it held 1,284,378 shares, or 5.01% of the capital and 4.75% of the voting rights on that date; • Dodge et Cox (USA) reported on September 6, 2007 that it had reduced its interest in Nexans to below 5% of the Company’s voting rights on August 31, 2007 and that following this transaction, it held 1,266,440 shares, or 4.94% of the share capital and 4.90% of the voting rights. Dodge et Cox (USA) crossed this legal disclosure threshold as a result of the loss of double voting rights upon the conversion of its Nexans’ shares to bearer shares; • FMR Corp. (USA) and Fidelity International Limited (FIL) (Bermuda) reported on September 20, 2007 that they had increased their interests in Nexans to above 10% of the Company’s share capital and voting rights on September 13, 2007 and that they held 2,616,254 shares, or 10.21% of the share capital and 10.12% of the voting rights. They stated that they do not intend to purchase Nexans shares and voting rights in order to hold a controlling interest in Nexans or in order to be represented on the Board of Directors; • JPMorgan Asset Management (UK), owned by JPMorgan Chase et Co., acting on behalf of subsidiaries engaged in third-party asset management, reported on November 22, 2007 that it had reduced its interest in Nexans to below 5% of the Company’s share capital on November 15, 2007 and that it held 1,276,358 shares, or 4.98% of the capital and 4.94% of the voting rights.]]></raw>
		<basicChars><![CDATA[13 INFORMATION ON NEXANS’ SHARE OWNERSHIP AND VOTING RIGHTSBased on information received pursuant to article L. 233-7 of the French Commercial Code, the only shareholders holding more than 5% of the Company’s share capital or voting rights at December 31, 2007 were: • FMR Corp. (USA) and Fidelity International Limited (FIL)(Bermuda). The following entities crossed legal disclosure thresholds in relation to the Company’s share capital and voting rights during the year: • Morgan Stanley et Co International Ltd., owned by Morgan Stanley, reported on January 9 and 10, 2007, respectively, that it had increased its interest in Nexans to above 5% of the Company’s share capital on January 8, 2007, and subsequently reduced its interest to below that threshold on Januar y 9, 2007. Morgan Stanley reported that at January 9, 2007, it owned 607,493 shares, or 2.41% of the share capital and 2.39% of the voting rights; • Dodge et Cox (USA) reported on March 6, 2007 that it had increased its interest in Nexans to above 10% of the Company’s voting rights on February 28, 2007 and that it held 1,866,440 shares representing 3,032,880 voting rights, or 7.35% of the share capital and 11.33% of the voting rights on that date; • JP Morgan Asset Management (UK), owned by JP Morgan Chase et Co., acting on behalf of subsidiaries engaged in third-party asset management, reported on May 24, 2007 that it had increased its interest in Nexans to above 5% of the Company’s share capital on May 15, 2007 and that it held 1,299,870 shares, or 5.11% of the share capital and 4.85% of the voting rights on behalf of said third parties; • Natixis S.A. (Paris) reported on June 12 and 18, 2007, that it had increased its interest in Nexans to above 5% of the Company’s share capital and voting rights on June 1, 2007 and subsequently reduced its interest to below that threshold on June 8, 2007. Natixis S.A. (Paris) reported that following these transactions, it held 910,777 shares, or 3.56% of the share capital and 3.38% of the voting rights; • FMR Corp. and Fidelity International Limited (FIL) (USA), acting on behalf of mutual funds managed by their subsidiaries and invested in Nexans shares, reported on June 22, 2007 that they had increased their interests in Nexans to above 5% of the Company’s share capital and voting rights on June 18, 2007 and that they held 1,399,342 shares, or 5.47% of the capital and 5.19% of the voting rights on behalf of said funds on that date;• JPMorgan Asset Management (UK), owned by JPMorgan Chase et Co., acting on behalf of subsidiaries engaged in third-party asset management, reported on July 12 and 18, 2007 that it had increased its interest in Nexans to above 5% of the Company’s voting rights on July 4, 2007 and subsequently reduced its interests to below that threshold on July 5, 2007. JPMorgan Asset Management (UK) reported that following these transactions, it held 1,339,139 shares, or 5.23% of the share capital and 4.96% of the voting rights on behalf of said parties; • JPMorgan Asset Management (UK), owned by JPMorgan Chase et Co. reported on August 16, 2007 that it had reduced its interest in Nexans to below 5% of the Company’s share capital on August 9, 2007 and that it held 1,253,515 shares, or 4.89% of the capital and 4.64% of the voting rights on that date; • Dodge et Cox (USA) reported on August 28 and 31, 2007 that it had reduced its interest in Nexans to below 10% of the Company’s voting rights on August 23, 2007 and subsequently, to below 5% of the Company’s share capital on August 28, 2007. Following these transactions, Dodge et Cox (USA) reported that it held 1,266,440 shares representing 2,532,880 voting rights, or 4.94% of the share capital and 9.38% of the voting rights; • JPMorgan Asset Management (UK), owned by JPMorgan Chase et Co., acting on behalf of subsidiaries engaged in third-party asset management, reported on September 5, 2007 that had increased its interest in Nexans to above 5% of the Company’s capital on August 30, 2007 and that it held 1,284,378 shares, or 5.01% of the capital and 4.75% of the voting rights on that date; • Dodge et Cox (USA) reported on September 6, 2007 that it had reduced its interest in Nexans to below 5% of the Company’s voting rights on August 31, 2007 and that following this transaction, it held 1,266,440 shares, or 4.94% of the share capital and 4.90% of the voting rights. Dodge et Cox (USA) crossed this legal disclosure threshold as a result of the loss of double voting rights upon the conversion of its Nexans’ shares to bearer shares; • FMR Corp. (USA) and Fidelity International Limited (FIL) (Bermuda) reported on September 20, 2007 that they had increased their interests in Nexans to above 10% of the Company’s share capital and voting rights on September 13, 2007 and that they held 2,616,254 shares, or 10.21% of the share capital and 10.12% of the voting rights. They stated that they do not intend to purchase Nexans shares and voting rights in order to hold a controlling interest in Nexans or in order to be represented on the Board of Directors; • JPMorgan Asset Management (UK), owned by JPMorgan Chase et Co., acting on behalf of subsidiaries engaged in third-party asset management, reported on November 22, 2007 that it had reduced its interest in Nexans to below 5% of the Company’s share capital on November 15, 2007 and that it held 1,276,358 shares, or 4.98% of the capital and 4.94% of the voting rights.]]></basicChars>
	</page>
	<page id="69">
		<raw><![CDATA[Employees owned 1% of the Company’s share capital at December 31, 2007, of which 91% was held through employee mutual funds. At December 31, 2007, the Company’s share capital was 25,678,355 euros divided into 25,678,355 shares with a par value of one (1) euro each. This amount includes the impact of 360,975 stock options exercised between January 1 and June 30, 2007 and 52,425 stock options exercised between July 1, 2007 and December 31, 2007. At December 31, 2007, 220,720 shares carried double voting rights and the total number of voting rights was 25,899,075. Pursuant to the Company’s bylaws, when voting at Shareholders’ Meetings, no shareholder, whether acting on his own behalf or as proxy for another shareholder, may exercise more than 8% (or 16% for shares with double voting rights) of the voting rights attached to shares held by shareholders present or represented at the meeting concerned.payable in arrears on January 1 each year and their gross yieldto-maturity is 3.75% (if they are not converted and/or exchanged for shares and if they are not redeemed in advance). The option to convert or exchange the bonds can be exercised by the OCEANE bondholders from July 7, 2006 until the 7th business day preceding the scheduled or early redemption date at the rate of one share per bond (subject to any adjustments required by law). At December 31, 2007, all the 1.50% July 7, 2006 to January 1, 2013 OCEANE bonds were outstanding. • In 2007, Nexans announced that it will launch an employee share ownership plan through the issue of up to 500,000 new shares reserved for Group employees participating in a company savings plan. The implementation of the plan has been postponed until 2008. It will be the Group’s third international employee share ownership plan. Employees may subscribe for the shares through an employee mutual fund (except in certain countries due to local constraints) and may choose between (i) a “classic offering”, enabling employees to subscribe for Nexans shares at a 20% discount compared to the reference price and (ii) a “leveraged offe-14 SHARE BUYBACK PROGRAMThe Shareholders’ Meeting of May 10, 2007 authorized the Company to purchase or sell its own shares pursuant to the terms and conditions fixed by said Meeting. As the Board did not use this authorization during the year, the Company did not hold any treasury shares at December 31, 2007.ring” which guarantees the employees’ investments and a return corresponding to a multiple of the potential increase in the Nexans share price. In this way, Nexans is hoping to strengthen relations with its employees in France and elsewhere, and to involve them more closely in the Group’s development and future results. • At December 31, 2007, 1,070,250 employee stock options were outstanding, representing 4.17% of the share capital. Each of these options entitles the holder to subscribe for one Nexans share. A table summarizing the outstanding authorizations granted by the Shareholders’ Meeting to the Board of Directors relating to capital increases is appended hereto. This table also lists how each capital15 UTILIZATION OF AUTHORIZATIONS TO INCREASE THE COMPANY’S SHARE CAPITAL• On July 7, 2006, Nexans carried out a public issue of 3,794,037 OCEANE bonds each with a nominal value of 73.8 euros, convertible into new shares and/or exchangeable for existing shares, for a total value of approximately 280 million euros. The prospectus for this issue was approved by the AMF on June 29, 2006 under no. 06-242. The term of the bond issue was set at 6 years and 178 days. Unless the Company exercises its early redemption option, the bonds will be redeemed in full on January 1, 2013 at a price of 85.7556 per bond, representing 116% ofincrease authorization was used during 2007.67the total face value. The bonds carry interest at 1.50% per annu]]></raw>
		<basicChars><![CDATA[Employees owned 1% of the Company’s share capital at December 31, 2007, of which 91% was held through employee mutual funds. At December 31, 2007, the Company’s share capital was 25,678,355 euros divided into 25,678,355 shares with a par value of one (1) euro each. This amount includes the impact of 360,975 stock options exercised between January 1 and June 30, 2007 and 52,425 stock options exercised between July 1, 2007 and December 31, 2007. At December 31, 2007, 220,720 shares carried double voting rights and the total number of voting rights was 25,899,075. Pursuant to the Company’s bylaws, when voting at Shareholders’ Meetings, no shareholder, whether acting on his own behalf or as proxy for another shareholder, may exercise more than 8% (or 16% for shares with double voting rights) of the voting rights attached to shares held by shareholders present or represented at the meeting concerned.payable in arrears on January 1 each year and their gross yieldto-maturity is 3.75% (if they are not converted and/or exchanged for shares and if they are not redeemed in advance). The option to convert or exchange the bonds can be exercised by the OCEANE bondholders from July 7, 2006 until the 7th business day preceding the scheduled or early redemption date at the rate of one share per bond (subject to any adjustments required by law). At December 31, 2007, all the 1.50% July 7, 2006 to January 1, 2013 OCEANE bonds were outstanding. • In 2007, Nexans announced that it will launch an employee share ownership plan through the issue of up to 500,000 new shares reserved for Group employees participating in a company savings plan. The implementation of the plan has been postponed until 2008. It will be the Group’s third international employee share ownership plan. Employees may subscribe for the shares through an employee mutual fund (except in certain countries due to local constraints) and may choose between (i) a “classic offering”, enabling employees to subscribe for Nexans shares at a 20% discount compared to the reference price and (ii) a “leveraged offe-14 SHARE BUYBACK PROGRAMThe Shareholders’ Meeting of May 10, 2007 authorized the Company to purchase or sell its own shares pursuant to the terms and conditions fixed by said Meeting. As the Board did not use this authorization during the year, the Company did not hold any treasury shares at December 31, 2007.ring” which guarantees the employees’ investments and a return corresponding to a multiple of the potential increase in the Nexans share price. In this way, Nexans is hoping to strengthen relations with its employees in France and elsewhere, and to involve them more closely in the Group’s development and future results. • At December 31, 2007, 1,070,250 employee stock options were outstanding, representing 4.17% of the share capital. Each of these options entitles the holder to subscribe for one Nexans share. A table summarizing the outstanding authorizations granted by the Shareholders’ Meeting to the Board of Directors relating to capital increases is appended hereto. This table also lists how each capital15 UTILIZATION OF AUTHORIZATIONS TO INCREASE THE COMPANY’S SHARE CAPITAL• On July 7, 2006, Nexans carried out a public issue of 3,794,037 OCEANE bonds each with a nominal value of 73.8 euros, convertible into new shares and/or exchangeable for existing shares, for a total value of approximately 280 million euros. The prospectus for this issue was approved by the AMF on June 29, 2006 under no. 06-242. The term of the bond issue was set at 6 years and 178 days. Unless the Company exercises its early redemption option, the bonds will be redeemed in full on January 1, 2013 at a price of 85.7556 per bond, representing 116% ofincrease authorization was used during 2007.67the total face value. The bonds carry interest at 1.50% per annu]]></basicChars>
	</page>
	<page id="70">
		<raw><![CDATA[16 MANAGEMENT BY NEXANS OF THE SOCIAL AND ENVIRONMENTAL CONSEQUENCES OF ITS OPERATIONS16.1 ENVIRONMENTAL CONSEQUENCES OF THE GROUP’S OPERATIONS16.1.1 Nexans policy on environmental issues The environment and the safety of property and employees are of primary importance to Nexans. The Group’s policy is outlined in the Risk Management Charter signed by the Chairman, which is sent to all sites worldwide and available on the intranet. This charter covers improvement in performance through the audit of production sites, and the assessment of risks relating to products and manufacturing processes. Nexans’ commitment to environmental protection is also reflected in its policy of training its employees in environmental best practices. Environmental policy is the responsibility of the Group’s Industrial Management Department, which reports directly to the Strategic Operations Department. The Industrial Management Department supervises industrial strategy, investment budgets, and the management of major industrial projects. The Department also manages crossorganizational projects, in particular product and process development, as well as the Group’s plant and machinery. In each of these areas it ensures that conservation and environmental protection requirements are fully complied with. The environmental rules and targets set by the Industrial Management Department apply to Group operations worldwide, including international subsidiaries. The performance improvement program for production sites is monitored by the Environment Committee, which comprises members from the Strategic Operations, Industrial Management, Technical, Purchasing, Legal, Risk Management, and Human Resources et Communications Departments. Environmental management: measures taken to ensure compliance with applicable rules The Group’s objective is to reduce pollution risks and control environmental costs (consumption of energy, raw materials and hazardous substances, waste disposal and recycling).A Group environmental manual, approved by the Executive Committee, was drawn up in January 2005 and issued to all production sites. It describes the Nexans environmental management approach, in particular the performance targets, procedures, emergency plans and tools available at each site, and serves as a reference document for the plants’ environmental management systems. It describes the Group’s organization and the role of Country Management in implementing the Group’s Environmental Policy. In accordance with ISO 14001, all the Group’s facilities are reviewed annually by means of a questionnaire covering 12 environmental issues, each rated according to a scoring grid. The questionnaire also lists the investments made by Nexans during the year to improve environmental performance. The scoring grid changes each year, consistent with regulatory developments and the areas that the Group wishes to improve. In 2007 as in 2006, the points reviewed included water recycling at plants (to limit consumption), waste recycling and reuse, identification of major environmental risks (accompanied by specific crisis management plans), and storage of hazardous liquids. Once the questionnaires have been analyzed, recommendations are sent to the sites in the form of summaries and graphs so that problems can be solved through action plans tailored to the improvement of environmental management at specific sites. Recommendations are monitored on an annual basis. Since 2003, the Group has been using a specialist outside company to audit issues covered by the questionnaire. Around 25 sites are audited each year, and, if found to be well-managed environmentally, are awarded the Nexans EHP label, denoting compliance with the highest environmental standards. Of 26 sites audited in 2007, 16 were awarded this label: three in France, three in Germany, three in Korea, two in Norway, two in Belgium, two in the USA and one in Ireland. By the end of 2007, a total of 50 Group sites had received the EHP label – five more than in 2006. The sites that did not receive the EHP label were given recommendations on how to achieve the required level, and initiated corrective actions accordingly. These actions are included in the plants’ threeyear plans. The environmental audit program, which is the same for all the sites audited, is a means of checking data on the consumption of materials (water, solvents, energy, packaging, etc.), discharges into the air and water, soil protection, the condition of storage facilities, waste volumes and recycling methods, and the impact of the Group’s activities in terms of noise. In addition to this highly efficient system, some of the Group’s plants are undergoing ISO 14001 certification. In all, 37 of the Group’s plants have attained this certification, four more than in 2006.]]></raw>
		<basicChars><![CDATA[16 MANAGEMENT BY NEXANS OF THE SOCIAL AND ENVIRONMENTAL CONSEQUENCES OF ITS OPERATIONS16.1 ENVIRONMENTAL CONSEQUENCES OF THE GROUP’S OPERATIONS16.1.1 Nexans policy on environmental issues The environment and the safety of property and employees are of primary importance to Nexans. The Group’s policy is outlined in the Risk Management Charter signed by the Chairman, which is sent to all sites worldwide and available on the intranet. This charter covers improvement in performance through the audit of production sites, and the assessment of risks relating to products and manufacturing processes. Nexans’ commitment to environmental protection is also reflected in its policy of training its employees in environmental best practices. Environmental policy is the responsibility of the Group’s Industrial Management Department, which reports directly to the Strategic Operations Department. The Industrial Management Department supervises industrial strategy, investment budgets, and the management of major industrial projects. The Department also manages crossorganizational projects, in particular product and process development, as well as the Group’s plant and machinery. In each of these areas it ensures that conservation and environmental protection requirements are fully complied with. The environmental rules and targets set by the Industrial Management Department apply to Group operations worldwide, including international subsidiaries. The performance improvement program for production sites is monitored by the Environment Committee, which comprises members from the Strategic Operations, Industrial Management, Technical, Purchasing, Legal, Risk Management, and Human Resources et Communications Departments. Environmental management: measures taken to ensure compliance with applicable rules The Group’s objective is to reduce pollution risks and control environmental costs (consumption of energy, raw materials and hazardous substances, waste disposal and recycling).A Group environmental manual, approved by the Executive Committee, was drawn up in January 2005 and issued to all production sites. It describes the Nexans environmental management approach, in particular the performance targets, procedures, emergency plans and tools available at each site, and serves as a reference document for the plants’ environmental management systems. It describes the Group’s organization and the role of Country Management in implementing the Group’s Environmental Policy. In accordance with ISO 14001, all the Group’s facilities are reviewed annually by means of a questionnaire covering 12 environmental issues, each rated according to a scoring grid. The questionnaire also lists the investments made by Nexans during the year to improve environmental performance. The scoring grid changes each year, consistent with regulatory developments and the areas that the Group wishes to improve. In 2007 as in 2006, the points reviewed included water recycling at plants (to limit consumption), waste recycling and reuse, identification of major environmental risks (accompanied by specific crisis management plans), and storage of hazardous liquids. Once the questionnaires have been analyzed, recommendations are sent to the sites in the form of summaries and graphs so that problems can be solved through action plans tailored to the improvement of environmental management at specific sites. Recommendations are monitored on an annual basis. Since 2003, the Group has been using a specialist outside company to audit issues covered by the questionnaire. Around 25 sites are audited each year, and, if found to be well-managed environmentally, are awarded the Nexans EHP label, denoting compliance with the highest environmental standards. Of 26 sites audited in 2007, 16 were awarded this label: three in France, three in Germany, three in Korea, two in Norway, two in Belgium, two in the USA and one in Ireland. By the end of 2007, a total of 50 Group sites had received the EHP label – five more than in 2006. The sites that did not receive the EHP label were given recommendations on how to achieve the required level, and initiated corrective actions accordingly. These actions are included in the plants’ threeyear plans. The environmental audit program, which is the same for all the sites audited, is a means of checking data on the consumption of materials (water, solvents, energy, packaging, etc.), discharges into the air and water, soil protection, the condition of storage facilities, waste volumes and recycling methods, and the impact of the Group’s activities in terms of noise. In addition to this highly efficient system, some of the Group’s plants are undergoing ISO 14001 certification. In all, 37 of the Group’s plants have attained this certification, four more than in 2006.]]></basicChars>
	</page>
	<page id="71">
		<raw><![CDATA[16.1.2 Environmental consequences of the Group’s operations and measures taken to limit their impact The environmental impact of Nexans’ operations can be summarized by sector, as follows: Copper and aluminum metallurgy The main resources used by the Group are energy (natural gas) and water, which is used for steam and cooling. Most of the water consumed is recycled (95%). Power and copper telecom cables Conductor manufacturing (drawing and stranding) consumes electrical power for annealing and oily water for drawing lubrication. Wastewater is filtered, treated and recycled. Extrusion cable manufacturing requires large quantities of water for cooling. This water is recycled, ensuring that consumption remains low. Air emissions are low as they are treated by filter extractors specific to each facility. Solvent consumption is very low considering the extremely large quantities of cables produced, and pertains primarily to marking inks, which are covered by specific handling procedures (storage in small cabinets, and fume hoods used for cleaning ink jets and wheels).Waste recycling The Nexans Group is highly committed to waste recycling and in 2007 recycled 21,993 tons of cable waste from most of the Group’s European sites, along with 4,937 tons of end-of-life cables collected directly from Nexans customers, making a total of 26,930 tons of waste recycled. In 2008, the Group set up a joint-venture with Sita with a view to strengthening its recycling activities. Through sorting of factory waste and recycling of cable waste, the majority of the Group’s waste – including wood, paper, cardboard, ferrous metals, machine oil, batteries and special waste – is utilized in some way. Specific investments have also been made in this regard. For example, the Lens plant in France started refining bare copper waste to make wire rod in 2007. Wirerod production at this plant reached 23,000 tons in 2007. Environmental indicators The following indicators are used to monitor year-on-year changes in environmental impact:20072006(1)2005(1)Energy consumption of which electricity Waste of which special waste (in tons) Number of sites monitored Water consumption Solvent consumption Copper consumption Aluminum consumption1,715,000 MWh 913,000 MWh 93,500 t 6,200 t 98* 4 743,000 m3 740 t(2) 718,000 t 154,000 t1,615,000 MWh 893,200 MWh 97,500 t 4,800 t 91 4,452,000 m3 1,500 t(3) 841,000 t 140,000 t1,480,800 MWh 838,100 MWh 91,300 t 7,400 t 79 4,430,000 m3 1,500 t(3) 809,000 t 133,000 t(*) Olex is included in the 2007 indicators (1) Based on previous scope of consolidation (2) The Simcoe plant has left the consolidated group. Only solvents are taken into account for environmental impact considerations (3) Including acids and bases (300 t) in addition to solvents]]></raw>
		<basicChars><![CDATA[16.1.2 Environmental consequences of the Group’s operations and measures taken to limit their impact The environmental impact of Nexans’ operations can be summarized by sector, as follows: Copper and aluminum metallurgy The main resources used by the Group are energy (natural gas) and water, which is used for steam and cooling. Most of the water consumed is recycled (95%). Power and copper telecom cables Conductor manufacturing (drawing and stranding) consumes electrical power for annealing and oily water for drawing lubrication. Wastewater is filtered, treated and recycled. Extrusion cable manufacturing requires large quantities of water for cooling. This water is recycled, ensuring that consumption remains low. Air emissions are low as they are treated by filter extractors specific to each facility. Solvent consumption is very low considering the extremely large quantities of cables produced, and pertains primarily to marking inks, which are covered by specific handling procedures (storage in small cabinets, and fume hoods used for cleaning ink jets and wheels).Waste recycling The Nexans Group is highly committed to waste recycling and in 2007 recycled 21,993 tons of cable waste from most of the Group’s European sites, along with 4,937 tons of end-of-life cables collected directly from Nexans customers, making a total of 26,930 tons of waste recycled. In 2008, the Group set up a joint-venture with Sita with a view to strengthening its recycling activities. Through sorting of factory waste and recycling of cable waste, the majority of the Group’s waste – including wood, paper, cardboard, ferrous metals, machine oil, batteries and special waste – is utilized in some way. Specific investments have also been made in this regard. For example, the Lens plant in France started refining bare copper waste to make wire rod in 2007. Wirerod production at this plant reached 23,000 tons in 2007. Environmental indicators The following indicators are used to monitor year-on-year changes in environmental impact:20072006(1)2005(1)Energy consumption of which electricity Waste of which special waste (in tons) Number of sites monitored Water consumption Solvent consumption Copper consumption Aluminum consumption1,715,000 MWh 913,000 MWh 93,500 t 6,200 t 98* 4 743,000 m3 740 t(2) 718,000 t 154,000 t1,615,000 MWh 893,200 MWh 97,500 t 4,800 t 91 4,452,000 m3 1,500 t(3) 841,000 t 140,000 t1,480,800 MWh 838,100 MWh 91,300 t 7,400 t 79 4,430,000 m3 1,500 t(3) 809,000 t 133,000 t(*) Olex is included in the 2007 indicators (1) Based on previous scope of consolidation (2) The Simcoe plant has left the consolidated group. Only solvents are taken into account for environmental impact considerations (3) Including acids and bases (300 t) in addition to solvents]]></basicChars>
	</page>
	<page id="72">
		<raw><![CDATA[These are estimated amounts, based on data collected. In addition to the initiatives previously described, the Group is giving priority to: • Measures to eradicate PCB transformers by 2010 under a multi-year plan (mainly in France, see investment schedule below), • Replacement of oil-burning boilers with less polluting gas boilers, and replacement of old heating units with modern units consuming less energy, • Treatment of air and gaseous effluents via ventilation, vacuum and processing systems, • Phase-out of single-wall underground storage tanks. Particular attention is paid to the storage of liquids (such as oil) both in dedicated storage areas and operational areas.Environmental expenditure In 2007, environment-related costs amounted to €7.3 million, and mainly concerned environment taxes (such as water tax), maintenance (purchase of filters, for example), analysis, tests, license fees and permits.Environment-related investments and provisions for environmental risks Investments Environment-related investments by production plants were as follows: 2007 (in thousands of euros) Soil and water protection Air protection and energy savings Waste reduction and miscellaneous Noise Elimination of PCB transformers (in France) Amount TOTAL 1,338 2,428 263 4,487 10 448In 2006, environment-related investment totaled €4,368 million. Provisions for risk At December 31, 2007, provisions of €7,304 million had been set aside for environmental risks. Additional expenses may be incurred for the clean-up of closed sites and sites likely to be sold, but the Group expects these amounts to be less than the market value of the sites in question.16.2 SOCIAL ASPECTS16.2.1 Headcount Group headcount increased by 3.5% in 2007, with implementation of the Group’s strategic plan and a strong determination to bring in the human resources needed for growth. Group HeadcountArea 2005 2006 2007Europe Asia-Pacific North America Rest of the World14,274 1,270 1,835 2,205 19,58414,372 2,459 1,961 2,358 21,15015,184 2,273 1,870 2,571 21,89870Nexa]]></raw>
		<basicChars><![CDATA[These are estimated amounts, based on data collected. In addition to the initiatives previously described, the Group is giving priority to: • Measures to eradicate PCB transformers by 2010 under a multi-year plan (mainly in France, see investment schedule below), • Replacement of oil-burning boilers with less polluting gas boilers, and replacement of old heating units with modern units consuming less energy, • Treatment of air and gaseous effluents via ventilation, vacuum and processing systems, • Phase-out of single-wall underground storage tanks. Particular attention is paid to the storage of liquids (such as oil) both in dedicated storage areas and operational areas.Environmental expenditure In 2007, environment-related costs amounted to €7.3 million, and mainly concerned environment taxes (such as water tax), maintenance (purchase of filters, for example), analysis, tests, license fees and permits.Environment-related investments and provisions for environmental risks Investments Environment-related investments by production plants were as follows: 2007 (in thousands of euros) Soil and water protection Air protection and energy savings Waste reduction and miscellaneous Noise Elimination of PCB transformers (in France) Amount TOTAL 1,338 2,428 263 4,487 10 448In 2006, environment-related investment totaled €4,368 million. Provisions for risk At December 31, 2007, provisions of €7,304 million had been set aside for environmental risks. Additional expenses may be incurred for the clean-up of closed sites and sites likely to be sold, but the Group expects these amounts to be less than the market value of the sites in question.16.2 SOCIAL ASPECTS16.2.1 Headcount Group headcount increased by 3.5% in 2007, with implementation of the Group’s strategic plan and a strong determination to bring in the human resources needed for growth. Group HeadcountArea 2005 2006 2007Europe Asia-Pacific North America Rest of the World14,274 1,270 1,835 2,205 19,58414,372 2,459 1,961 2,358 21,15015,184 2,273 1,870 2,571 21,89870Nexa]]></basicChars>
	</page>
	<page id="73">
		<raw><![CDATA[Europe Some 69.3% of Nexans staff are employed in Europe. Numbers increased by 5.5% in 2007, mainly as a result of robust business in the energy infrastructure market, especially in Norway, and in the automotive harness businesses in Central Europe. North America Headcount fell by 4.6% in North America, with the departure of 145 employees on disposal of the winding wires businesses in Canada. Headcount increased in Mexico as a result of growth in truck harnessing operations. Employee gender breakdown Percentage of female employees at December 31, 2007Europe North AmericaAsia-Pacific Asia-Pacific saw employee numbers drop by 7.6%, with sale of the winding wires businesses in Tianjin, China, and liquidation of the Vina Daesung joint-venture in Vietnam. A buoyant Chinese cables market, however, led to many new hires. Rest of the World The workforce escalated by 9% in the Rest of the World in line with brisk expansion in rapidly developing countries such as Turkey and Brazil.AsiaPacificRest of the WorldTotalTOTAL Managers Non-managers31.4 18.2 33.027.1 20.9 27.917.6 22.1 16.46.8 19.5 4.426.8 19.3 27.8Women accounted for 26.8% of Nexans’ employees worldwide in 2007. This percentage is on the increase thanks to specific actions taken, especially in France. Management positions are open to female employees of Nexans in many countries around the world. Indeed, women make up approximately 19% of the Group’s managerial personnel worldwide. Personnel changes per Area (*)Europe North AmericaThis positive trend is bolstered by national policies in certain countries, such as the United States, under the “Equal Opportunity Employer” program, and France, where a gender equality oversight committee has been formed to monitor key issues such as salary discrepancies.AsiaPacificRest of the WorldGroup totalNatural departures excl. retirements Layoffs Retirements New hires Change in scope(*) Excluding automotive cable harnesses.– 619 –177 –132 1,265 –4– 96 0 – 25 165 – 145– 192 –1 – 11 329 – 175– 130 –1 – 14 392 0– 1,037 – 179 – 182 2,151 – 324There was a vigorous increase in the number of new hires in 2007, thanks to bullish growth worldwide. Recruitment was carefully targeted to the Group’s requirements.]]></raw>
		<basicChars><![CDATA[Europe Some 69.3% of Nexans staff are employed in Europe. Numbers increased by 5.5% in 2007, mainly as a result of robust business in the energy infrastructure market, especially in Norway, and in the automotive harness businesses in Central Europe. North America Headcount fell by 4.6% in North America, with the departure of 145 employees on disposal of the winding wires businesses in Canada. Headcount increased in Mexico as a result of growth in truck harnessing operations. Employee gender breakdown Percentage of female employees at December 31, 2007Europe North AmericaAsia-Pacific Asia-Pacific saw employee numbers drop by 7.6%, with sale of the winding wires businesses in Tianjin, China, and liquidation of the Vina Daesung joint-venture in Vietnam. A buoyant Chinese cables market, however, led to many new hires. Rest of the World The workforce escalated by 9% in the Rest of the World in line with brisk expansion in rapidly developing countries such as Turkey and Brazil.AsiaPacificRest of the WorldTotalTOTAL Managers Non-managers31.4 18.2 33.027.1 20.9 27.917.6 22.1 16.46.8 19.5 4.426.8 19.3 27.8Women accounted for 26.8% of Nexans’ employees worldwide in 2007. This percentage is on the increase thanks to specific actions taken, especially in France. Management positions are open to female employees of Nexans in many countries around the world. Indeed, women make up approximately 19% of the Group’s managerial personnel worldwide. Personnel changes per Area (*)Europe North AmericaThis positive trend is bolstered by national policies in certain countries, such as the United States, under the “Equal Opportunity Employer” program, and France, where a gender equality oversight committee has been formed to monitor key issues such as salary discrepancies.AsiaPacificRest of the WorldGroup totalNatural departures excl. retirements Layoffs Retirements New hires Change in scope(*) Excluding automotive cable harnesses.– 619 –177 –132 1,265 –4– 96 0 – 25 165 – 145– 192 –1 – 11 329 – 175– 130 –1 – 14 392 0– 1,037 – 179 – 182 2,151 – 324There was a vigorous increase in the number of new hires in 2007, thanks to bullish growth worldwide. Recruitment was carefully targeted to the Group’s requirements.]]></basicChars>
	</page>
	<page id="74">
		<raw><![CDATA[Global mobility The group consolidated its global mobility policy to ensure equal treatment for all expatriate employees, whatever their country of origin. Studies into social security and tax charges are systematically performed to reduce costs for the Group. Employee age pyramid The average age of the Group’s employees is 41.3 years.16% 14% 12% 10% 8% 6% 4% 2% 0% 15-20 years 21-25 years 26-30 years 31-35 years 36-40 yearsNexans continues to support global mobility as a way of transferring expertise, enhancing employees’ personal and professional development, encouraging growth, and conveying the Group’s corporate culture.2006 200741-45 years46-50 years51- 55 years56-60 years61-65 years66-70 yearsThe employee age pyramid highlights the demographic challenges currently faced by the Group: • In Europe, the population is aging. To meet the demands of its strategic plan, the Group will have to deal with significant recruitment needs between now and 2009. Recruitment policies have been put in place to attract qualified personnel and young talent. In 2007, almost 50% of new hires in Europe (outside the automotive cable harness business) were under 30 years of age and more than three Seniority (*)35% 30% 25% 20% 15% 10% 5% 0% 0-6 months 6 months -1 year 1-2 years 2-3 years 3-5 yearsquarters of them were employed on permanent contracts. The Group is stepping up external communications with regard to its businesses and career opportunities through frequent participation in student forums. • Although staff are younger in emerging countries, with an average age of 38.6 years, Nexans must nonetheless face up to increasingly tight labor markets in its quest to hire qualified personnel.5-10 years10-15 ans15-20 yearsMore than 20 years(*) Excluding automotive cable harnesses.]]></raw>
		<basicChars><![CDATA[Global mobility The group consolidated its global mobility policy to ensure equal treatment for all expatriate employees, whatever their country of origin. Studies into social security and tax charges are systematically performed to reduce costs for the Group. Employee age pyramid The average age of the Group’s employees is 41.3 years.16% 14% 12% 10% 8% 6% 4% 2% 0% 15-20 years 21-25 years 26-30 years 31-35 years 36-40 yearsNexans continues to support global mobility as a way of transferring expertise, enhancing employees’ personal and professional development, encouraging growth, and conveying the Group’s corporate culture.2006 200741-45 years46-50 years51- 55 years56-60 years61-65 years66-70 yearsThe employee age pyramid highlights the demographic challenges currently faced by the Group: • In Europe, the population is aging. To meet the demands of its strategic plan, the Group will have to deal with significant recruitment needs between now and 2009. Recruitment policies have been put in place to attract qualified personnel and young talent. In 2007, almost 50% of new hires in Europe (outside the automotive cable harness business) were under 30 years of age and more than three Seniority (*)35% 30% 25% 20% 15% 10% 5% 0% 0-6 months 6 months -1 year 1-2 years 2-3 years 3-5 yearsquarters of them were employed on permanent contracts. The Group is stepping up external communications with regard to its businesses and career opportunities through frequent participation in student forums. • Although staff are younger in emerging countries, with an average age of 38.6 years, Nexans must nonetheless face up to increasingly tight labor markets in its quest to hire qualified personnel.5-10 years10-15 ans15-20 yearsMore than 20 years(*) Excluding automotive cable harnesses.]]></basicChars>
	</page>
	<page id="75">
		<raw><![CDATA[The average length of service within the Group (excluding automotive cable harnesses) is 13 years, reflecting strong loyalty among employees. This loyalty is one of the Group’s key values. Overtime and contracted labor Overtime and contracted labor are two of the methods used for matching workforce to production cycles and coping with workload peaks. In 2007, overtime represented 4.02% of total hours worked. The use of overtime varies considerably with Area: 0.8% in Europe, 4.93% in North America, 6.20% in Asia-Pacific, and 15.15% in the Rest of the World. Contract employees (mainly in manufacturing and maintenance) represented an average of 6.7% of total full-time equivalent headcount across Nexans sites in 2007. 16.2.1.1 RESTRUCTURING In its restructuring plans, Nexans is particularly attentive to dialogue with employee representative bodies. Measures are in place to keep lay-offs to a minimum and, as far as possible, ensure that employees are redeployed to other Group subsidiaries or establishments. These measures are instigated in accordance with legislation in the countries concerned. The Group is also putting anticipatory measures in place to help employees develop versatility and maximize their redeployment potential. In 2007, the Group restructured its Belgian subsidiary Nexans Harnesses, as a result of which 66 employees were laid off. 16.2.2 Working time Working time per Area Because Nexans operations extend to 31 different countries, personnel, in manufacturing, logistics, sales, and administrative functions, are subject to a variety of national legislations. For non-shift, full-time employees, the number of working hours per year varies from 1,435 to 2,393, giving a weighted Group-wide average of 1,863 hours. Shift-work takes different forms at different sites, with employees working three 8-hour shifts, for example, or under a continuous operations regime. The resulting flexibility means the Group can optimize production and consistently meet its clients’ needs. Part-time employees Part-time work is practiced in almost every country in which the Group has operations. Of the total workforce, 3.4% of employees work on a part-time basis. Fixed-term/permanent contracts At December 31, 2007, employees hired under fixed-term contracts accounted for 10.9% of the total workforce, up 1.1 points on last year’s figure.Absenteeism The absentee rate across the Group (excluding automotive cable harnesses) was 4.07% in 2007, unchanged from 2006. Reducing absenteeism remains a priority for many sites, and significant action was taken in this regard during the year. Awareness-raising campaigns in Spain have reduced non-attendance by more than half, with rates dropping from 12% in 2005 to less than 5.3% in 2007. Illness and accidents are the two main causes of absenteeism within the Group, accounting for 73.1% and 7.67% of absences respectively. Since illness accounts for such a high proportion of absenteeism, many countries have set up investigative procedures to monitor and anticipate employee illness. The main aim here is to identify the causes of illness with a view to taking preventive measures. 16.2.3 Compensation An attractive compensation policy To build employee commitment, an attractive, coherent compensation policy is needed. Nexans has established such a policy in a spirit of transparency and fairness while taking into account the local conditions at each site. The compensation paid to engineers and managers is made up of a fixed salary plus a variable bonus tied to goals set at the start of the year; some of these goals are linked to the financial performance of the Group or the particular entity. A Career Management Committee was set up in July 2006 to review the salaries of the Group’s 70 top managers each year and coordinate their salary increase schedules. Payroll expenses and salary increases Nexans’ payroll expenses in 2007 totaled €909 million, or 18.9% of sales at constant non-ferrous metal prices. The increase on the previous year’s figure is mainly due to the Olex acquisition and a rise in Group headcount overall. Because salary increases are country-specific, an average figure would not be representative. Employee profit-sharing, incentive schemes and savings plan Additional compensation and benefits vary from country to country, and can take several different forms, including profit-sharing schemes, incentive plans and employee savings plans (under which the employer may match up to 60% of employee contributions). In first quarter 2008 Nexans will launch an employee share ownership plan by means of a share issue for employees (see Chapter 15). In this way, Nexans is hoping to strengthen relations with its employees in France and elsewhere, and to involve them more closely in the Group’s developments and future results.]]></raw>
		<basicChars><![CDATA[The average length of service within the Group (excluding automotive cable harnesses) is 13 years, reflecting strong loyalty among employees. This loyalty is one of the Group’s key values. Overtime and contracted labor Overtime and contracted labor are two of the methods used for matching workforce to production cycles and coping with workload peaks. In 2007, overtime represented 4.02% of total hours worked. The use of overtime varies considerably with Area: 0.8% in Europe, 4.93% in North America, 6.20% in Asia-Pacific, and 15.15% in the Rest of the World. Contract employees (mainly in manufacturing and maintenance) represented an average of 6.7% of total full-time equivalent headcount across Nexans sites in 2007. 16.2.1.1 RESTRUCTURING In its restructuring plans, Nexans is particularly attentive to dialogue with employee representative bodies. Measures are in place to keep lay-offs to a minimum and, as far as possible, ensure that employees are redeployed to other Group subsidiaries or establishments. These measures are instigated in accordance with legislation in the countries concerned. The Group is also putting anticipatory measures in place to help employees develop versatility and maximize their redeployment potential. In 2007, the Group restructured its Belgian subsidiary Nexans Harnesses, as a result of which 66 employees were laid off. 16.2.2 Working time Working time per Area Because Nexans operations extend to 31 different countries, personnel, in manufacturing, logistics, sales, and administrative functions, are subject to a variety of national legislations. For non-shift, full-time employees, the number of working hours per year varies from 1,435 to 2,393, giving a weighted Group-wide average of 1,863 hours. Shift-work takes different forms at different sites, with employees working three 8-hour shifts, for example, or under a continuous operations regime. The resulting flexibility means the Group can optimize production and consistently meet its clients’ needs. Part-time employees Part-time work is practiced in almost every country in which the Group has operations. Of the total workforce, 3.4% of employees work on a part-time basis. Fixed-term/permanent contracts At December 31, 2007, employees hired under fixed-term contracts accounted for 10.9% of the total workforce, up 1.1 points on last year’s figure.Absenteeism The absentee rate across the Group (excluding automotive cable harnesses) was 4.07% in 2007, unchanged from 2006. Reducing absenteeism remains a priority for many sites, and significant action was taken in this regard during the year. Awareness-raising campaigns in Spain have reduced non-attendance by more than half, with rates dropping from 12% in 2005 to less than 5.3% in 2007. Illness and accidents are the two main causes of absenteeism within the Group, accounting for 73.1% and 7.67% of absences respectively. Since illness accounts for such a high proportion of absenteeism, many countries have set up investigative procedures to monitor and anticipate employee illness. The main aim here is to identify the causes of illness with a view to taking preventive measures. 16.2.3 Compensation An attractive compensation policy To build employee commitment, an attractive, coherent compensation policy is needed. Nexans has established such a policy in a spirit of transparency and fairness while taking into account the local conditions at each site. The compensation paid to engineers and managers is made up of a fixed salary plus a variable bonus tied to goals set at the start of the year; some of these goals are linked to the financial performance of the Group or the particular entity. A Career Management Committee was set up in July 2006 to review the salaries of the Group’s 70 top managers each year and coordinate their salary increase schedules. Payroll expenses and salary increases Nexans’ payroll expenses in 2007 totaled €909 million, or 18.9% of sales at constant non-ferrous metal prices. The increase on the previous year’s figure is mainly due to the Olex acquisition and a rise in Group headcount overall. Because salary increases are country-specific, an average figure would not be representative. Employee profit-sharing, incentive schemes and savings plan Additional compensation and benefits vary from country to country, and can take several different forms, including profit-sharing schemes, incentive plans and employee savings plans (under which the employer may match up to 60% of employee contributions). In first quarter 2008 Nexans will launch an employee share ownership plan by means of a share issue for employees (see Chapter 15). In this way, Nexans is hoping to strengthen relations with its employees in France and elsewhere, and to involve them more closely in the Group’s developments and future results.]]></basicChars>
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		<raw><![CDATA[16.2.4 Labor relations Open and active social dialogue Nexans is particularly attentive to social dialogue with employees and unions, and is continually endeavoring to enhance labor relations. The Nexans European Works Council holds regular meetings during which the executive management team and employee representatives can exchange points of view on issues such as implementation of the strategic plan, the Group’s business outlook, social indicators, and measures taken to ensure and improve employee safety and working conditions. The European Works Council held three plenary meetings in 2007, and two additional meetings were held by council officers. Following discussions, a charter was written up to set out measures for informing and consulting with the works council in the event of any major change affecting the Group’s European operations. In-depth negotiations and discussions took place between Group management and unions in 2007, and over 70 agreements were signed. The close relationship between management and employee representative bodies is highly conducive to the atmosphere of trust that reigns within the Group’s various businesses. The main agreements signed were: In Europe: • Spain: agreement on working conditions, in particular on the number of working hours per day and per year; agreement on paid leave; • Greece: agreement on salary increases and on working conditions during the heat wave of summer 2007; • Italy: agreements on restructuring of Italian sites and on productivity increases. In Asia-Pacific: • Korea: agreement on salary increases and on collective bargaining processes; • Australia and New Zealand: agreement on salary increases. In Rest of the World: • Brazil: agreement on salary increases and the absorption of inflation; • Morocco: agreement on salaries, bonuses and indemnities; agreement on the budget for social and cultural activities. In North America: • Canada: agreement on salaries/pensions (Milton, Ontario); agreement on social investment and the company’s attractiveness (Weyburn, Saskatchewan); agreement on working conditions (Québec City, Québec).16.2.5 Health and Safety Health and safety has long been a major day-to-day priority in Nexans’ human resources policy. In 2007, accident seriousness was significantly reduced, and the number of accident-free sites rose to eleven, from six in 2006. Almost a third of all employees received training on workplace safety with a view to accident prevention. In addition, specific programs were implemented or maintained in several countries. These included: Greece: ten surveillance audits were carried out by external auditors. China: a rigorous accident-monitoring policy was implemented, a security manual is issued to all new recruits, and all employees undergo a full medical check-up related to their working conditions. North America: an audit program was launched with a view to monitoring safety and ensuring that it becomes a key consideration for all concerned. Determination to improve working conditions and prevent workplace accidents has resulted in several Group sites obtaining or retaining national workplace health and safety certification. Sites in Switzerland, Norway and Turkey were awarded the OHSAS 18001 certificate, and a site in China was classified “Grade-Green enterprise in Safety”. 16.2.6 Training The Group recently launched the “Nexans University”, with the intention of offering specific training programs to develop employee potential, propagate best practice and enhance expertise within the Group. The new center will also encourage the development and upkeep of networks between the Group’s various functions, as well as between countries. In 2007, Nexans University offered an induction program for new managers, and provided two other priority programs on copper management and training for trainers.]]></raw>
		<basicChars><![CDATA[16.2.4 Labor relations Open and active social dialogue Nexans is particularly attentive to social dialogue with employees and unions, and is continually endeavoring to enhance labor relations. The Nexans European Works Council holds regular meetings during which the executive management team and employee representatives can exchange points of view on issues such as implementation of the strategic plan, the Group’s business outlook, social indicators, and measures taken to ensure and improve employee safety and working conditions. The European Works Council held three plenary meetings in 2007, and two additional meetings were held by council officers. Following discussions, a charter was written up to set out measures for informing and consulting with the works council in the event of any major change affecting the Group’s European operations. In-depth negotiations and discussions took place between Group management and unions in 2007, and over 70 agreements were signed. The close relationship between management and employee representative bodies is highly conducive to the atmosphere of trust that reigns within the Group’s various businesses. The main agreements signed were: In Europe: • Spain: agreement on working conditions, in particular on the number of working hours per day and per year; agreement on paid leave; • Greece: agreement on salary increases and on working conditions during the heat wave of summer 2007; • Italy: agreements on restructuring of Italian sites and on productivity increases. In Asia-Pacific: • Korea: agreement on salary increases and on collective bargaining processes; • Australia and New Zealand: agreement on salary increases. In Rest of the World: • Brazil: agreement on salary increases and the absorption of inflation; • Morocco: agreement on salaries, bonuses and indemnities; agreement on the budget for social and cultural activities. In North America: • Canada: agreement on salaries/pensions (Milton, Ontario); agreement on social investment and the company’s attractiveness (Weyburn, Saskatchewan); agreement on working conditions (Québec City, Québec).16.2.5 Health and Safety Health and safety has long been a major day-to-day priority in Nexans’ human resources policy. In 2007, accident seriousness was significantly reduced, and the number of accident-free sites rose to eleven, from six in 2006. Almost a third of all employees received training on workplace safety with a view to accident prevention. In addition, specific programs were implemented or maintained in several countries. These included: Greece: ten surveillance audits were carried out by external auditors. China: a rigorous accident-monitoring policy was implemented, a security manual is issued to all new recruits, and all employees undergo a full medical check-up related to their working conditions. North America: an audit program was launched with a view to monitoring safety and ensuring that it becomes a key consideration for all concerned. Determination to improve working conditions and prevent workplace accidents has resulted in several Group sites obtaining or retaining national workplace health and safety certification. Sites in Switzerland, Norway and Turkey were awarded the OHSAS 18001 certificate, and a site in China was classified “Grade-Green enterprise in Safety”. 16.2.6 Training The Group recently launched the “Nexans University”, with the intention of offering specific training programs to develop employee potential, propagate best practice and enhance expertise within the Group. The new center will also encourage the development and upkeep of networks between the Group’s various functions, as well as between countries. In 2007, Nexans University offered an induction program for new managers, and provided two other priority programs on copper management and training for trainers.]]></basicChars>
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	<page id="77">
		<raw><![CDATA[Training also became a priority at country-level, with the number of training hours increasing by over 35% in 2007 and over half the Group’s total workforce receiving training. Training in 2007 averaged 18.2 hours per person across the workforce as a whole, and 24.5 hours per employee included on training programs. The Olex acquisition accounts for the upsurge in these figures yearon-year. Training plans are in place at all Group units. Main training priorities in 2007 were technical skills, health et safety, and languages (English, mainly), accounting for 26.6%, 18.8% and 10% respectively of all training hours provided. 16.2.7 Disabled employees Employing people with disabilities is a crucial matter in many countries in which Nexans is located. Accordingly, each unit seeks to comply with the relevant legal requirements in its particular country. In Turkey, for example, handicapped persons make up 3% of the overall workforce, allowing the Company to meet its requirements there. However, because Nexans’ activities comprise a particularly heavy manufacturing component, there may be a discrepancy between the legal minimum and the actual number of disabled persons employed at the plants. A number of action plans have been set up to help plants in various countries comply with local requirements. In 2007, the overall headcount of Nexans France comprised 3.8% of disabled persons. The Group is working to increase this proportion, through measures such as specially-adapted workstations, and by developing relations with specialist organizations dealing with employment for the handicapped.16.2.8 Community initiatives As well as supporting a wealth of community initiatives, in 2007 the Group undertook its first major corporate sponsorship project: the restoration of the Palace of Versailles. Through involvement in this project, Nexans demonstrated its commitment to world heritage protection while highlighting the quality of its cables and cabling systems. The Palace of Versailles, one of France’s most emblematic historical monuments, needed renovating to ensure it would continue to fulfill its important cultural and tourist missions. As corporate sponsor, Nexans provided, exclusively and free of charge, low- and high-voltage power cables, along with copper and optical fiber data cables for the Trianon, the Grand Commun and the Royal Opéra buildings. High-profile corporate sponsorship operations should not, however, overshadow Nexans’ contributions to local initiatives, in the form of financial support for many local programs benefiting employees and their families, and local communities in general. In Germany, for example, the Group funded a research competition for students aged 11 to 21. This year’s competition dealt with topics such as “the behavior of metals in corrosive environments”. And in Korea, to mark the 120th anniversary of Franco-Korean relations, Nexans sponsored an exhibition entitled “Robert Combas : Savoir Faire” at the Seoul Museum of Arts. In Turkey, Nexans actively supports UNICEF in its campaigns to build schools and encourage education in disadvantaged areas, particularly for young girls.January 30, 2008 The Board of Directors Represented by Gérard Hauser, Chairman and Chief Executive Officer]]></raw>
		<basicChars><![CDATA[Training also became a priority at country-level, with the number of training hours increasing by over 35% in 2007 and over half the Group’s total workforce receiving training. Training in 2007 averaged 18.2 hours per person across the workforce as a whole, and 24.5 hours per employee included on training programs. The Olex acquisition accounts for the upsurge in these figures yearon-year. Training plans are in place at all Group units. Main training priorities in 2007 were technical skills, health et safety, and languages (English, mainly), accounting for 26.6%, 18.8% and 10% respectively of all training hours provided. 16.2.7 Disabled employees Employing people with disabilities is a crucial matter in many countries in which Nexans is located. Accordingly, each unit seeks to comply with the relevant legal requirements in its particular country. In Turkey, for example, handicapped persons make up 3% of the overall workforce, allowing the Company to meet its requirements there. However, because Nexans’ activities comprise a particularly heavy manufacturing component, there may be a discrepancy between the legal minimum and the actual number of disabled persons employed at the plants. A number of action plans have been set up to help plants in various countries comply with local requirements. In 2007, the overall headcount of Nexans France comprised 3.8% of disabled persons. The Group is working to increase this proportion, through measures such as specially-adapted workstations, and by developing relations with specialist organizations dealing with employment for the handicapped.16.2.8 Community initiatives As well as supporting a wealth of community initiatives, in 2007 the Group undertook its first major corporate sponsorship project: the restoration of the Palace of Versailles. Through involvement in this project, Nexans demonstrated its commitment to world heritage protection while highlighting the quality of its cables and cabling systems. The Palace of Versailles, one of France’s most emblematic historical monuments, needed renovating to ensure it would continue to fulfill its important cultural and tourist missions. As corporate sponsor, Nexans provided, exclusively and free of charge, low- and high-voltage power cables, along with copper and optical fiber data cables for the Trianon, the Grand Commun and the Royal Opéra buildings. High-profile corporate sponsorship operations should not, however, overshadow Nexans’ contributions to local initiatives, in the form of financial support for many local programs benefiting employees and their families, and local communities in general. In Germany, for example, the Group funded a research competition for students aged 11 to 21. This year’s competition dealt with topics such as “the behavior of metals in corrosive environments”. And in Korea, to mark the 120th anniversary of Franco-Korean relations, Nexans sponsored an exhibition entitled “Robert Combas : Savoir Faire” at the Seoul Museum of Arts. In Turkey, Nexans actively supports UNICEF in its campaigns to build schools and encourage education in disadvantaged areas, particularly for young girls.January 30, 2008 The Board of Directors Represented by Gérard Hauser, Chairman and Chief Executive Officer]]></basicChars>
	</page>
	<page id="78">
		<raw><![CDATA[FIVE-YEAR FINANCIAL SUMMARY – PARENT COMPANYNATURE OF THE INDICATIONS 2007 2006 2005 2004 2003I - CAPITAL AT YEAR-END a) Share capital (in thousands of euros) b) Number of shares in issue II - RESULTS OF OPERATIONS a) Net sales b) Income/loss before tax, employee profit-sharing, depreciation, amortization and provisions c) Income taxes d) Employee profit-sharing e) Net Income/loss f) Dividends III - PER SHARE DATA(IN EUROS) (IN THOUSANDS OF EUROS)25,678 25,678,35525,265 25,264,95523,507 23,507,32223,190 23,189,94723,129 23,128,97213,263 92,939 672 74 110,03113,061 134,305 – 249 152 88,095 31,64810,809 44,704 249 117 43,228 21,66210,265 – 8,067 169 124 – 12,231 10,5688,233 8,068 0 117 7,770 5,865a) Earnings/(loss) per share after tax and employee profit-sharing, but before depreciation, amortization and provisions b) Earnings/(loss) per share c) Dividend per share IV - EMPLOYEES a) Average number of employees b) Total payroll (in thousands of euros) c) Employee benefits (in thousands of euros)3.59 4.285.32 3.49 1.201.90 1.84 1.00– 0.35 – 0.53 0.500.35 0.34 0.206 3,351 1,1176 3,556 1,1857 3,401 1,1347 2,947 9737 2,693 889]]></raw>
		<basicChars><![CDATA[FIVE-YEAR FINANCIAL SUMMARY – PARENT COMPANYNATURE OF THE INDICATIONS 2007 2006 2005 2004 2003I - CAPITAL AT YEAR-END a) Share capital (in thousands of euros) b) Number of shares in issue II - RESULTS OF OPERATIONS a) Net sales b) Income/loss before tax, employee profit-sharing, depreciation, amortization and provisions c) Income taxes d) Employee profit-sharing e) Net Income/loss f) Dividends III - PER SHARE DATA(IN EUROS) (IN THOUSANDS OF EUROS)25,678 25,678,35525,265 25,264,95523,507 23,507,32223,190 23,189,94723,129 23,128,97213,263 92,939 672 74 110,03113,061 134,305 – 249 152 88,095 31,64810,809 44,704 249 117 43,228 21,66210,265 – 8,067 169 124 – 12,231 10,5688,233 8,068 0 117 7,770 5,865a) Earnings/(loss) per share after tax and employee profit-sharing, but before depreciation, amortization and provisions b) Earnings/(loss) per share c) Dividend per share IV - EMPLOYEES a) Average number of employees b) Total payroll (in thousands of euros) c) Employee benefits (in thousands of euros)3.59 4.285.32 3.49 1.201.90 1.84 1.00– 0.35 – 0.53 0.500.35 0.34 0.206 3,351 1,1176 3,556 1,1857 3,401 1,1347 2,947 9737 2,693 889]]></basicChars>
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	<page id="79">
		<raw><![CDATA[TABLE SUMMARIZING OUTSTANDING AUTHORIZATIONS TO INCREASE THE COMPANY’S SHARE CAPITAL AND THEIR USE DURING 2007Resolutions submitted to the Annual Shareholders’ Meeting of May 10, 2007(1) Issue of shares with preferential subscription rights (R 15) and greenshoe option if oversubscribed (R 17) Issue of convertible bonds, bonds redeemable for shares, bonds with warrants attached, bonds convertible for new or existing shares without preferential subscription rights (R16) and greenshoe option if oversubscribed (R17) Share issue in payment of contribution in kind of securities (R18) Share issue to be paid up by capitalizing reserves, income or additional paid-in capital (R19) €10,000,000 10% of the share capital – €500,000,000 (debt securities) €10,000,000 – Maximum for each resolution(2)Global limit applicable to several resolutions(2)Use during 2007€4 000,000 (shares) €10,000,000––Board of Directors’ meeting of July 24, 2007: Issue of shares or securities reserved for members of an employee savings plan (R20) €500,000 powers granted to the Chief Executive Officer and Chief Operating Officer to issue a maximum of 500,000 new shares 29,000 stock options Allocation of stock options (R21) €500,000 allocated by the Board of Directors on January 30, 2007(3) Overall limit of €21,000,00077(1) The abbreviation “R…” stands for the number of the resolution submitted for approval to the Shareholders’ Meeting of May 10, 2007. (2) The maximum par value of the capital increases which could take place corresponds to the maximum number of shares which could be issued as the par value of one Company share is equal to one euro. (3) The decision to allocate stock options taken by the Board of Directors on January 30 was implemented by the decision of the Chief Executive Officer of February 15, 200]]></raw>
		<basicChars><![CDATA[TABLE SUMMARIZING OUTSTANDING AUTHORIZATIONS TO INCREASE THE COMPANY’S SHARE CAPITAL AND THEIR USE DURING 2007Resolutions submitted to the Annual Shareholders’ Meeting of May 10, 2007(1) Issue of shares with preferential subscription rights (R 15) and greenshoe option if oversubscribed (R 17) Issue of convertible bonds, bonds redeemable for shares, bonds with warrants attached, bonds convertible for new or existing shares without preferential subscription rights (R16) and greenshoe option if oversubscribed (R17) Share issue in payment of contribution in kind of securities (R18) Share issue to be paid up by capitalizing reserves, income or additional paid-in capital (R19) €10,000,000 10% of the share capital – €500,000,000 (debt securities) €10,000,000 – Maximum for each resolution(2)Global limit applicable to several resolutions(2)Use during 2007€4 000,000 (shares) €10,000,000––Board of Directors’ meeting of July 24, 2007: Issue of shares or securities reserved for members of an employee savings plan (R20) €500,000 powers granted to the Chief Executive Officer and Chief Operating Officer to issue a maximum of 500,000 new shares 29,000 stock options Allocation of stock options (R21) €500,000 allocated by the Board of Directors on January 30, 2007(3) Overall limit of €21,000,00077(1) The abbreviation “R…” stands for the number of the resolution submitted for approval to the Shareholders’ Meeting of May 10, 2007. (2) The maximum par value of the capital increases which could take place corresponds to the maximum number of shares which could be issued as the par value of one Company share is equal to one euro. (3) The decision to allocate stock options taken by the Board of Directors on January 30 was implemented by the decision of the Chief Executive Officer of February 15, 200]]></basicChars>
	</page>
	<page id="80">
		<raw><![CDATA[CONSOLIDATED FINANCIAL STATEMENTS79 80 82 83 85 Consolidated income statement Consolidated balance sheet Consolidated statement of cash flows Consolidated statement of changes in equity Notes to the consolidated financial statements: – Summary of significant accounting policies – Significant events of the year – Information by business line and geographic Area – Other notes 159 Statutory Auditors’ report]]></raw>
		<basicChars><![CDATA[CONSOLIDATED FINANCIAL STATEMENTS79 80 82 83 85 Consolidated income statement Consolidated balance sheet Consolidated statement of cash flows Consolidated statement of changes in equity Notes to the consolidated financial statements: – Summary of significant accounting policies – Significant events of the year – Information by business line and geographic Area – Other notes 159 Statutory Auditors’ report]]></basicChars>
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	<page id="81">
		<raw><![CDATA[CONSOLIDATED INCOME STATEMENTNotesin millions of euros20072006 Restated**2005 ReportedNET SALES Metal price effect* NET SALES AT CONSTANT METAL PRICES* Cost of sales Cost of sales at constant metal prices* GROSS PROFIT Administrative and selling expenses RetD costs OPERATING MARGIN* Core exposure effect*** Net asset impairment Changes in fair value of non-ferrous metal derivatives Net gains on asset disposals Restructuring costs OPERATING INCOME Cost of debt (gross) Income from cash and cash equivalents Other financial expenses Share in net income of associates INCOME BEFORE TAXES Income taxes NET INCOME FROM CONTINUING OPERATIONS Net loss from discontinued operations NET INCOME Attributable to equity holders of the Company Attributable to minority interests ATTRIBUTABLE NET INCOME FROM CONTINUING OPERATIONS PER SHARE (IN EUROS) - basic earnings per share - diluted earnings per share NET INCOME/(LOSS) FROM DISCONTINUED OPERATIONS PER SHARE (IN EUROS) - basic loss per share - diluted loss per share NET INCOME PER SHARE ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY (IN EUROS) - basic earnings per share - diluted earnings per share(1.h) et (3) (1.h) et (3)7,412 (2,591) 4,822 (6,521) (3,930) 892 (423)7,489 (3,046) 4,442 (6,802) (3,756) 687 (372) (55) 260 107 (99) (7) 151 (48) 363 (45) 12 (36) 3 297 (48) 249 (4) 244 241 35,449 (1,186) 4,263 (4,825) (3,640) 623 (386) (52) 186 93 (32) 33 34 (24) 290 (26) 7 (17) (0) 254 (36) 218 (46) 172 163 95,449 (1,186) 4,263 (4,825) (3,640) 623 (386) (52) 186 – (4) 33 34 (24) 225 (26) 7 (17) (0) 189 (26) 163 (46) 117 108 9(1.k) (1.i) et (3) (1.j) (1.o) et (7) (1.g) (6) (22.b)(60) 409 20 (21) (36) 4 (14) 362 (57) 13(5)(37) 281(9) (8.b)(84) 197 – 197 189 7(1.dd) et (10) 7,41 6,67 (1.dd) et (10) 0,00 0,00 (1.dd) et (10) 7,41 6,67 10,25 8,93 7,73 6,63 5,12 4,46 (0,19) (0,17) (2,18) (1,89) (2,18) (1,89) 10,44 9,10 9,90 8,52 7,30 6,3679* Performance indicators used to measure the Group’s operational performance. ** Since December 31, 2006, the Group’s financial statements have been prepared taking into account a change relating to the recognition of non-ferrous metal inventories (see Note 1.b.). The figures in the ”Restated” column for 2005 have been adjusted to reflect the impact of this change. *** Effect relating to the revaluation of core exposure at weighted average cos]]></raw>
		<basicChars><![CDATA[CONSOLIDATED INCOME STATEMENTNotesin millions of euros20072006 Restated**2005 ReportedNET SALES Metal price effect* NET SALES AT CONSTANT METAL PRICES* Cost of sales Cost of sales at constant metal prices* GROSS PROFIT Administrative and selling expenses RetD costs OPERATING MARGIN* Core exposure effect*** Net asset impairment Changes in fair value of non-ferrous metal derivatives Net gains on asset disposals Restructuring costs OPERATING INCOME Cost of debt (gross) Income from cash and cash equivalents Other financial expenses Share in net income of associates INCOME BEFORE TAXES Income taxes NET INCOME FROM CONTINUING OPERATIONS Net loss from discontinued operations NET INCOME Attributable to equity holders of the Company Attributable to minority interests ATTRIBUTABLE NET INCOME FROM CONTINUING OPERATIONS PER SHARE (IN EUROS) - basic earnings per share - diluted earnings per share NET INCOME/(LOSS) FROM DISCONTINUED OPERATIONS PER SHARE (IN EUROS) - basic loss per share - diluted loss per share NET INCOME PER SHARE ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY (IN EUROS) - basic earnings per share - diluted earnings per share(1.h) et (3) (1.h) et (3)7,412 (2,591) 4,822 (6,521) (3,930) 892 (423)7,489 (3,046) 4,442 (6,802) (3,756) 687 (372) (55) 260 107 (99) (7) 151 (48) 363 (45) 12 (36) 3 297 (48) 249 (4) 244 241 35,449 (1,186) 4,263 (4,825) (3,640) 623 (386) (52) 186 93 (32) 33 34 (24) 290 (26) 7 (17) (0) 254 (36) 218 (46) 172 163 95,449 (1,186) 4,263 (4,825) (3,640) 623 (386) (52) 186 – (4) 33 34 (24) 225 (26) 7 (17) (0) 189 (26) 163 (46) 117 108 9(1.k) (1.i) et (3) (1.j) (1.o) et (7) (1.g) (6) (22.b)(60) 409 20 (21) (36) 4 (14) 