NEXANS DELIVERS ROBUST PERFORMANCE IN 2023
_PRESS RELEASE_
2023 standard sales of €6.5 billion, €7.8 billion current sales, strong profitability expansion and excellent cash generation
Nexans delivered on all its objectives, which were upgraded last July, confirming the depth of its transformation year after year
Adj. EBITDA1 at a historic high of €665 million, up +8% year-on-year, and adj. EBITDA margin at 10.2%; EBITDA including share-based payments at €652 million, outperforming target
Focus on value added solutions (SHIFT Prime) generating +€20 million incremental EBITDA in its Electrification businesses
Outstanding Normalized FCF at €454 million, reflecting strict management of working capital and Generation & Transmission’s adjusted backlog growth
Strong balance sheet maintained with net debt at €214 million and a 0.4x leverage ratio
Proposed dividend up +10% to €2.30 per share
Electrification Pure Player profile strengthened by M&A and investments
Acquisition of Reka Cables in Finland with integration progressing ahead of plan, finalization of the divestment of Telecom Systems activity
MoU signed to expand medium voltage capacities in Morocco and serve the booming demand for the grid in the region
Halden high-voltage plant capacity extension completed early 2024 and new cable-laying vessel construction on track to deliver record Generation & Transmission adjusted backlog of €6.1 billion
Continued progress in CSR performance: -36% decrease in Scope 1, 2 and 3 GHG emissions ahead of SBTi targets
Full-year 2024 guidance announced:
Adj. EBITDA of between €670 and 730 million
Normalized Free Cash Flow of between €200 and 300 million
Capital Markets Day to be held on November 13th, 2024
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Paris, February 15, 2024 – Nexans, a global leader in the design and manufacturing of cable systems to power the world, announces its financial results for the fiscal year 2023. The results were approved by the Board of Directors on February 14, 2024. Commenting on the Group’s 2023 results, Christopher Guérin, Nexans’ Chief Executive Officer, said:
“Nexans’ robust performance in 2023 once again demonstrated the scale of our disciplined transformation since 2019. We delivered a record adj. EBITDA margin, and exceeded normalized free cash flow generation expectations. I would like to thank all our employees, who are the driving force behind our journey.
We made considerable progress on our sustainability agenda with GHG emissions at –36% versus 2019 (Scopes 1, 2 and 3), extending the deployment of our E3 performance model across our units.
On the acquisition front, we finalized a high-quality acquisition, with Reka Cables in Finland, and exited the Telecom Systems business, strengthening the Group’s profile, now resolutely focused on sustainable Electrification. The recent announcement of the signed agreement2 to acquire La Triveneta Cavi in Italy, with recognized excellence within the European low-voltage segment, is an additional milestone in our journey to become a global Electrification Pure Player.
Despite the ongoing macroeconomic uncertainties, we are entering 2024 with confidence and expect another year shaped by strong performance.”
2023 KEY FIGURES
(in millions of euros)
2022
2023
Sales at current metal prices
8,369
7,790
Sales at standard metal prices3
6,745
6,512
Organic growth
+6.3%
-0.9%
Adj. EBITDA4
616
665
Adj. EBITDA as a % of standard sales
9.1%
10.2%
Specific operating items
(16)
(53)
Depreciation and amortization
(180)
(179)
Operating margin
420
432
Reorganization costs
(39)
(49)
Other operating items
14
(9)
Operating income
395
374
Net financial income (loss)
(57)
(83)
Income taxes
(90)
(68)
Net income
248
223
Net debt
182
214
Normalized free cash-flow
393
454
ROCE
20.5%
20.7%
2023 BUSINESS PERFORMANCE
In 2023, sales at standard metal prices reached €6,512 million. At constant scope and currency, organic growth was -0.9% compared to 2022, and +3.0% excluding Other activities, which are being scaled-down in line with the Group’s strategy. Electrification businesses (Generation & Transmission, Distribution, and Usage) declined by -1.5% organically reflecting (i) the exit from the Umbilical activity in the Generation & Transmission segment, (ii) the focus on profitability and product mix toward higher value-added solutions despite some normalization in the Usage segment, and (iii) excellent momentum in the Distribution segment on the back of buoyant utilities demand. The Non-electrification business was up +13.7% reflecting new developments in Auto-harnesses, recovery in Aerospace and solid momentum in Mining, while Other activities continued to be downsized by a strong -17.9% organically compared to 2022.
The scope effect included the positive contribution of two acquisitions in the Distribution and Usage businesses, partly offset by the divestment of the Telecom Systems business, Aginode, finalized in October 2023. After successfully acquiring Centelsa in Colombia in 2022, and achieving over €12 million in synergies one year ahead of schedule thanks to the SHIFT programs roll-out, Nexans is continuing its strategy of expansion in Electrification markets. On April 26, 2023, the Group completed the acquisition …
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