Financial information

Q1 2021 Financial information

Apr 29, 2021

Nexans: head start to the year

Quarterly sales growth setting robust basis for the year
Final steps to “New Nexans” 2019-2021 Transformation Plan
SHIFT transformation program structural tailwind across all operations
Uniquely placed to build on United States Offshore Wind momentum
Laying groundwork of Nexans strategic ambition to Electrify the Future

  • Standard[1] sales of 1,503 million euros in first quarter 2021, representing organic growth[2] of +1.4% year-on-year and +5.8% sequentially
  • Current sales land at 1,756 million euros, up +15.2% alongside copper price inflation
  • Topline recovery reflecting healthy backlog across all businesses – notably in Subsea High-Voltage with an adjusted backlog at 1.5 billion euros[3], continued customer selectivity for further value growth and pricing increase in line with first sequence of raw material inflation
  • Focus on performance improvement continued through fixed costs reductions and SHIFT Program
  • Robust balance sheet with early repayment of French State Back loan (“PGE”) and 2021 bond; S&P outlook reviewed to positive
  • Uniquely placed as sole, US based, subsea high-voltage cables manufacturer to serve US offshore wind market expected to generate up to 30 gigawatts power by the end of the decade and proudly chosen as preferred supplier on Empire Wind projects in New York
  • Electrify the Future: groundwork initiated on Nexans’ strategic ambition announced February 17th thanks to innovative partnerships, active M&A pipeline and diligent divestments preparation

Paris, April 29, 2021 - Today, Nexans published its financial information for the first quarter of 2021. Commenting on the Group’s performance, Christopher Guérin, Nexans’ Chief Executive Officer, said: “The sound start to the year upholds demand momentum, as much as it supports the gradual and sequential improvement through the rest of the year and the 2021 financial guidance. We continued to focus on value growth and free cash flow conversion. We increased prices in line with first sequential raw material inflation using pass-through mechanisms and our unique in-house SHIFT methodology. We remained selective on the quality of our backlog (customers, projects, products profile) increasing it by +20% and improving embedded margin ratio.
As we are finalizing our 2019-2021 transformation plan, we are setting the groundwork for our strategic ambition: i) we have signed five strategic partnerships to support our AMPLIFY innovation model, ii) uniquely positioned ourselves in the US Offshore Wind market and, iii) launched worldwide our MOBIWAY™ offer for the Building sector.

Footnotes

[1] To neutralize the effect of fluctuations in non-ferrous metal prices and therefore measure the underlying sales trend, Nexans also calculates its sales using standard prices for copper (standard price at 5,000 €/t) and aluminum (standard price at 1,200 €/t).
[2] The first quarter 2020 sales figure used for like-for-like comparisons corresponds to sales at standard non-ferrous metal prices, adjusted for the effects of exchange rates and changes in the scope of consolidation. Exchange rates and changes in the scope of consolidation impacted sales at standard non-ferrous metal prices by -€25m and -€62m respectively.
[3] Adjusted subsea backlog including contracts secured not yet enforced.

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