2018 Full-Year Results in line with the Communication of November 2018

Sales at current metal prices at 6.490 billion euros. Sales at constant metal prices stable at 4.409 billion euros for 2018.

Helarsresultat 2018 Nexanskoncernen
  • Sales at current metal prices at 6.490 billion euros. Sales at constant metal prices1 stable at 4.409 billion euros2. for 2018. Organic growth negative (-0.8%)3 for the Group as a whole but positive (+4.2%) for the cable and wire activities4
  • EBITDA5 of 325 million euros (compared with 411 million euros in 2017), corresponding to operating margin of 188 million euros (272 million euros in 2017)
  • Attributable net income of 14 million euros versus 125 million euros in 2017, taking into account 53 million euros in restructuring costs and non-recurring real estate capital gains that were offset by asset impairment losses for an equivalent amount
  • Operational cash flow of 153 million euros, compared with 277 million euros in 2017, mainly reflecting the decline in EBITDA. On the opposite, 149 million euro positive impact from the improvement in operating working capital
  • Consolidated net debt of 330 million euros, similar to December 31, 2017
  • Backlog for projects exceeds 1.25 billion euros as of December 31, 2018.
  • Liquidity and long-term funding strengthened with a five-year bond issue of 325 million euros in August 2018 and the extension of the 600 million euro Revolving Credit Facility until 2023. Redemption of the convertible bonds that matured on January 2, 2019 for 275 million euros
  • Recommended dividend of 0.30 euro per share
  • “New Nexans” plan launched on schedule in November 2018
       o New executive committee in place
       o All initiatives under the plan now launched and implementation
          of the supervisory bodies
       o European restructuring project presented to employee
          representative bodies on January 24, 2019
Paris, February 14, 2019 – Today, Nexans published its financial statements for the year ended December 31, 2018, as approved by the Board of Directors at its February 13, 2019 meeting chaired by Georges Chodron de Courcel.
Overview of 2018
EBITDA amounted to 325 million euros in 2018, down 86 million euros from 411 million euros the previous year. The decline was partly due to a 12 million euro negative currency effect. It also reflected lower contributions from High Voltage & Projects activities for 45 million euros and from Telecom & Data activities for 8 million euros.
A large number of orders were booked in the final months of the year and second half sales were on a par with the first half. However, EBITDA for the period was 19 million euros higher, an increase of +12.3%. The improvement was driven mainly by Building & Territories activities, led by low-voltage power cables for the building market which performed very well in the second half across all geographic areas.
Despite the decline in EBITDA, net debt remained stable thanks to a 149 million euro improvement in operating working capital that was mainly attributable to the advances received on orders booked at the end of the year.

Commenting on the Group's performance in 2018, Christopher Guérin, Nexans’ Chief Executive Officer, said:
“At 325 million euros, the Group’s 2018 EBITDA performance is in line with the guidance issued in November, reflecting a difficult year despite a gradual improvement in the second half. Net debt has been contained at 330 million euros, thanks in particular to the receipt of significant advance payments following a large number of orders placed in the project-based businesses late in the year.
After having defined our strategic plan, we launched far-reaching changes that are essential for the roll-out of the New Nexans.
Starting with the implementation of our new executive committee in December, Nexans is pursuing its ongoing transformation with a focus on delivering growth in selected markets, increasing return on capital employed and improving cash generation.
Further measures were announced in January 2019 concerning a reorganization and restructuring plan in Europe.
The three initiatives presented in November 2018 – cost-cutting, operational transformation and growth leverage – have therefore been launched.
For these reasons, we are beginning 2019 with confidence that these measures will start delivering results before the year is out, resulting in a sharp increase in EBITDA."
Numerous successes in the Group's various business sectors
In the energy infrastructure sector, Nexans won several large contracts during the year, notably during the second half. They included a multi-million euro contract for Ørsted’s Borssele 1 and 2 wind farms off the Netherlands’ coast, a 111 million euro contract for Greece’s Cyclades Islands submarine power interconnection, a power export cable contract for the Hornsea 2 wind farm in the United Kingdom for over 150 million euros and a 100 million euro contract in the Philippines to reinforce the national grid.
The Group also strengthened its focus on Inspection, Maintenance & Repair (IMR) services by setting up a dedicated team of IMR experts to support submarine high-voltage cabling and connectivity projects worldwide with emergency response services. The two-year contract for more than 190 million euros, recently awarded to the Group by one of the world's leading utilities, for the supply of low and medium voltage cables to equip its networks in Europe and Latin America, highlights the series of commercial successes in energy cables.
In the Telecom & Data sector, Nexans was awarded a 65 million euro contract by the Swedish government to supply optical fiber cable solutions to upgrade the communication systems serving Sweden’s rail network. The Athens municipality chose Nexans to deliver best-in-class Fibre To The Office (FTTO) network infrastructure for its historic City Hall, providing energy savings of up to 45%.
Nexans has also recently been awarded a multi-million euro framework contract by one of China’s public Internet and cloud service providers. The Group will supply advanced pre-terminated copper and optical fiber cabling solutions for the customer’s hyperscale datacenter projects in China and abroad in 2019. Nexans’ offer is the ideal solution to support the development of hyperscale datacenters and an effective response to the exponential growth in data transmission throughout the world.
In the Industry & Solutions segment, Nexans and Marais Laying Technologies Australia, a Tesmec Group subsidiary, have partnered in a consortium to provide a complete collector cable service for Australia’s largest onshore wind farm at Stockyard Hill. The contract will represent revenue of over 12 million euros for the consortium. The 530 MW wind farm will have 149 turbines capable of producing enough electricity to  power around 390,000 homes while also helping the state reduce CO2 emissions by around two million tons a year.
Furthermore, the Group’s corporate social responsibility initiatives have been recognized through the rating upgrades announced by agencies such as Carbon Disclosure Project (CDP), ISS Oekom, Sustainalytics and MSCI.
The above success stories illustrate how the Group is working towards its goal of helping to meet the world’s growing energy and data requirements and how it is mobilizing its teams to achieve that objective.
II - Detailed business review for 2018
Sales for 2018 came to 6.490 billion euros at current metal prices and 4.409 billion euros at constant metal prices, representing negative organic growth of -0.8% compared with 2017.
EBITDA totaled 325 million euros compared with 411 million euros in 2017, corresponding to 7.4% of sales at constant metal prices versus 9.0%.
Sales performances in the various geographic areas were as follows:
  • In Europe, excluding the High Voltage & Projects segment (down -21.3%) and automotive harnesses (up +4.3%), sales grew +2.0%, reflecting solid demand for power cables in the building market and for low- and medium-voltage cables among energy operators.
  • In North America, sales were stable in the LAN cables and systems segment but grew in all other segments, leading to an overall year-on-year increase of +15.6%, with a positive impact on margins.
  • In South America, sales grew by +1.2% over the year, with the -3.1% decline in the first half offset by +5.6% organic growth in the second, reflecting a recovery in overhead power line business in Brazil.
  • Sales in the Asia-Pacific region were stable (up +0.2%), with dynamic performances in Australia and New Zealand offsetting lower sales volumes in South Korea.
  • In the Middle East/Africa region (up +5.2%), sales increased in all countries except for Lebanon where 2017 represented an unusually high basis of comparison.
2018 key figures  
(in millions of euros) At constant non-
ferrous metal prices
  2017 2018
Sales 4,571 4,409
EBITDA 411 325
EBITDA margin (as a % of sales) 9.0 % 7.4 %
Attributable net income 125 14


Breakdown of sales by segment    
  2017 2018  
(in millions of euros) At constant non-
ferrous metal prices
At constant non-
ferrous metal prices
Organic growth
Building & Territories   1,757 1,742 + 4.5 %
High Voltage & Projects  885 683 - 21.3 %
Telecom & Data  512 496 - 1.8 %
Industry & Solutions  1,126 1,160 + 2.7 %
Other activities 290 329 + 19.6%
Total Group 4,571 4,409 - 0.8 %


EBITDA by segment
(in millions of euros) 2017 2018  
Building & Territories  126 120  
High Voltage & Projects 118 68  
Telecom & Data  62 44  
Industry & Solutions 89 86  
Other activities 16 7  
Total Group 411 325  



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 constant prices for copper and aluminum.
2 The 2018 sales figure used for like-for-like comparisons corresponds to sales at constant 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 constant non-ferrous metal prices by a negative -129 million euros and a positive 2 million euros respectively.
3 Organic growth is defined as the difference between (i) standard sales for the current period of the current year (year Y) calculated at constant non-ferrous metal prices, and (ii) standard sales for the same period of the previous year (year Y-1), calculated at constant non-ferrous metal prices and applying the exchange rates prevailing in year Y and based on the year Y scope of consolidation.
4 The cable and wire activities include all the businesses except High voltage & projects.
5 Consolidated EBITDA is defined as operating margin before depreciation and amortization.


Your Contact

Marieme Diop Investor relations
Phone +33 (0)1 78 15 05 40
Michel Gédéon Financial communication
Phone +33 (0)1 78 15 05 41
Angéline Afanoukoe Press relations
Phone +33 (0)1 78 15 04 67
Paul Floren Press relations
Phone +33 (0)1 78 15 05 40