Nexans transforms its value delivery modelNov 9, 2018
Paris La Défense, November 9, 2018 – Nexans announces a transformation roadmap that will allow the change of its value delivery model. Built on the market megatrends that spell out the future growth cycles of the industry, this new roadmap will help build a unique positioning for Nexans as well as drive customer and shareholder value.
Management will initially focus on the renovation of its operational model by reducing operations and organization complexity. Gradually, the focus will shift towards the Group’s repositioning.
Strategic update presentation - Transforming Nexans value delivery modelDownload
“ A mindset change is necessary. The complete transformation of the value delivery model of our businesses will allow Nexans to capture new services, build modules and systems. Nexans needs to scale more than it needs to grow. Nexans will deliver the best value for money to its clients and address market adjacencies while benefiting the excellent long-term perspectives of our markets ”
Christopher GuérinNexans CEO
Nexans faces challenges…
Further transformation to be undertaken. Although 50% of the Group can already be managed for growth, the potential of turnaround remains high. The remaining 50% will be transformed to unlock value.
Change in mindset from volume to value growth. Moving up the value chain and establishing the positioning of Nexans as a service provider will be key in the coming years.
Increased accountability and agility. The empowerment of employees at all levels coupled with a higher discipline in execution will allow Nexans’ organization to be leaner and more agile.
…with a great potential to unlock
A turnaround method both proven and scalable. Nexans has internally developed a methodology, called SHIFT, which helped to successfully turnaround Europe and Middle East Africa. The diagnosis has been established and SHIFT is already being deployed in underperforming units.
DNA of differentiation. Nexans has demonstrated capabilities to differentiate through the deployment of services (eg: Building & Territories) and has successfully managed to develop systems in segments (eg: wind turbines).
Long term market potential. Nexans’ value chain progression is strongly supported by megatrends which will help the Group expand its offer and address market adjacencies
By 2021, Nexans’ ambition is to derive from its current scope of activities:
- An EBITDA of 500 million euros;
- A ROCE of 15.5%;
- A cumulative Free Cash Flow (before M&A and dividends) over the 2019-2021 period exceeding 200 million euros.
The presentation document, which includes the current outlook for 2018, is available for download belon on this page.
A conference call has been organized on November 9. You can listen to a replay of the conference by dailing the following numbers
- In France: +33 (0)800 94 41 12
- In the United Kingdom: +44 (0)2071 369 233
- In the United States: +1 617 213 4164
To listen to the conference, please enter 76259678
You can also download the MP3 recording of this call on the right
Audio recording of the conference call Q3 09112018Download
February 14, 2019: 2018 Full-year results
 Consolidated EBITDA is defined as operating margin before depreciation (cf Registration document 2017). Yearly depreciation amounting to approximately 150 M€, Operating Margin can be computed accordingly. Impact of future application of IFRS#16 not considered.
 Return on Capital Employed: 12 month OM on end of period Capital Employed, restated for Antitrust provision (cf Registration document 2017)
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