Financial results

2020 Full Year Results

Feb 17, 2021

Nexans steered for growth

Steady EBITDA performance and net income turnaround unlocking value creation.

Outperformance in ROCE and free cash flow, 10-year low Net Debt, setting strong financial footing.

Nexans transformation anchored.

In full-year 2020, amidst the global pandemic:

  • Resilient standard sales[1] of 5,713 million euros, down by -8.6% organically[2]
  • Steady EBITDA[3] of 347 million euros reflecting successful Group transformation, EBITDA rate of 6.1% in 2020 against 6.4% in 2019
  • Outperformance in ROCE[4] at 10.2% end of December 2020
  • Strong turnaround in net income of 80 million euros, including a negative 102 million euros of estimated Covid-19 impact[5] and the positive gains on divestments for 142 million euros (107 million euros net of tax), compared to a net loss of -118 million euros in 2019
  • Outstanding Free Cash Flow[6] of 157 million euros, exceeding expectations and reflecting new Group norm of strict working capital management and cash generation focus
  • A 10-year low net debt of 179 million euros at December 31, 2020, demonstrating Nexans’ commitment to maintaining sound liquidity and improving cash conversion
  • Cable laying vessel Aurora and US High-Voltage cable plant Charleston operational mid-2021
  • Proposed dividend of 0.70 euro per share

Nexans has successfully anchored its transformation by unlocking value and setting a strong financial footing across the Group.

  • 2021 EBITDA outlook between 410 and 450 million euros
  • Best-in-class operating working capital, structural improvement at 5% of current sales in December 2020
  • Early repayment of French State backed 280 million euros term loan (“PGE”) and 250 million euros 2021 Bond
  • Nexans steered for growth, will host a historical Virtual Capital Market Day at 14.00 CET

Paris, February 17, 2021 - Today, Nexans published its financial statements for the year ended December 31, 2020, as approved by the Board of Directors at its February 16, 2021 meeting chaired by Jean Mouton.

“ Despite the unprecedented global health and economic crisis, 2020 was a tipping point for Nexans, as we demonstrated our ability to accelerate the company’s transformation, outperforming our financial performance both in ROCE and free cash flow, resulting in a 10-year low net debt. Our efforts, in the second semester, were focused on our long-term ambition, defining our new purpose to “Electrify the future”, our new values, our new ESG & Carbon neutrality commitment.
It’s full steam ahead that we will announce today our new strategic chapter up to 2024, and 2021 will be a year of acceleration of our new strategic moves on Electrification. Nexans is starting 2021 confident and with ambitious goals. ”

Christopher Guérin

Nexans’ Chief Executive Officer

[1] To neutralize the effect of fluctuations in non-ferrous metal prices and therefore measure the underlying sales trend, Nexans also calculates its sales using standard prices for copper (new standard price at 5,000 €/t) and aluminum.

[2] The full year 2019 sales figure used for like-for-like comparisons corresponds to sales at standard non-ferrous metal prices, adjusted for the effects of exchange rates and changes in the scope of consolidation. Exchange rates and changes in the scope of consolidation impacted sales at standard non-ferrous metal prices by -€197m and -€45m respectively.

[3] Consolidated EBITDA is defined as operating margin before depreciation and amortization.

[4] 12 months operating margin on end of period capital employed excluding antitrust provision.

[5] The estimated Covid-19 impact included in the net loss corresponds to (i) the amount after tax of the EBITDA estimated loss, (ii) the depreciation of deferred taxes losses in Europe reflecting the update of business plans in Automotive, and (iii) the sanitary expenses spent to protect employees and maintain the activity.

[6] Excluding M&A and equity operations.

 

Watch Nexans full-year 2020 webcast

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