Nexans deliver solid results in 2023

PRESS RELEASE

• EUR 6.5 billion in regular sales and EUR 7.8 billion in total sales in 2023 as well as strong growth in profitability and excellent cash generation
• Nexans delivered on all its targets, which were upgraded in July last year, confirming the depth of the company's year-on-year transformation
  • Adjusted EBITDA* (earnings before interest, tax, depreciation and amortisation) at an all-time high of EUR 665 million, up 8% year-on-year, and adjusted EBITDA margin of 10.2%; EBITDA including share-based payments of EUR 652 million, exceeding the target
  • Focus on value-adding solutions (SHIFT Prime) generating EUR +20 million incremental EBITDA in the electrification businesses.
  • Outstanding normalised free cash flow of EUR 454 million, demonstrating strong working capital management and an adjusted backlog growth for generation and transmission.
• Strong balance sheet maintained with net debt of EUR 214 million and a leverage ratio of 0.4x
• Proposed dividend up 10% to EUR 2.30 per share
• Profile as an electrification player strengthened by mergers/acquisitions and investments. 
  • Acquisition of Reka Cables in Finland with integration ahead of schedule, finalisation of the sale of the Telecom Systems activity.
  • Letter of intent signed to increase medium voltage capacity in Morocco to serve the region's increased demand in the power grid.
  • Capacity expansion of Halden high-voltage plant completed in early 2024 and construction of new cable laying vessel on schedule, resulting in a record high adjusted order backlog for generation and transmission of EUR 6.1 billion. 
• Continued progress on corporate social responsibility: -36% reduction in Scope 1, 2 and 3 greenhouse gas emissions, ahead of SBTi targets.
• Announced full-year guidance for 2024: 
  • Adjusted EBITDA of between EUR 670 and 730 million
  • Normalised free cash flow of between EUR 200 and 300 million
• Capital Markets Day to be held on 13 November 2024

Paris, 15 February 2024 - Nexans, a global leader in the design and manufacture of power cable systems, announces its financial results for the 2023 fiscal year. The results were approved by the Board of Directors on 14 February 2024. Christopher Guérin, CEO of Nexans, commented on the Group's 2023 results as follows:

- "Nexans' strong performance in 2023 once again demonstrated the scale of our disciplined transformation since 2019. We delivered a record adjusted EBITDA margin and exceeded expectations for normalised free cash flow generation. I would like to thank all our employees, who are the driving force behind the journey we are on.

We made significant progress on sustainability with greenhouse gas emissions of -36% compared to 2019 (Scope 1, 2 and 3). With that, we increased the deployment of our E3 performance model across all Group entities.

On the acquisition front, we completed a high-quality acquisition with Reka Cables in Finland. We also divested our Telecom Systems business, strengthening the Group's profile so that we now focus exclusively on sustainable electrification. The recently announced signed agreement** to acquire La Triveneta Cavi in Italy, a recognised company in the European low voltage segment, is a new milestone in our journey towards becoming a global electrification player.

Despite the current macroeconomic uncertainty, we enter 2024 with optimism and expect another year of strong performance.
 

* EBITDA kalles her ”justert EBITDA” i samsvar med anbefalingene fra AMF. Det har ikke skjedd noen endring av denne definisjonen siden juni 2023. Se ordlisten.

** Med forbehold om godkjenning fra myndighetene.