2011 Full Year results

Transcription

1 February 8, 2012

2 Safe Harbor This presentation contains forward-looking statements relating to the Group s expectations for future financial performance, including sales and profitability. The forward looking statements contained in this presentation are dependent on known and unknown risks, expectations and assumptions, uncertainties and other factors which may cause the Group s actual results, performance and objectives to be materially different from those indicated by the forward looking statements. Such factors may include the trends in the economic and commercial conditions and in the regulatory framework and also the risk factors set out in section 6 of the 2011 Management Report ( Risk Factors ), in particular the antitrust investigations launched against Nexans in January As a result, achievement of the perspectives herein described remains uncertain. These forward looking statements depend, amongst other things, on the following assumptions and risks : (1) the resilience of the infrastructure energy business in developed countries, and the continued expansion of the markets for energy infrastructure in emerging countries; (2) Growth in markets for renewable energies and Oil & Gas, together with the continuation of long-term investment programs of customers in such markets; (3) Recovery in industrial cables in certain transport segments such as shipboard and Chinese rail development; (4) the maintenance of sales volumes generally in the context of a possible decrease in macroeconomic growth; (5) maintaining margins despite weakened demand; (6) the possibility to pass on to final customers any increase in the costs of raw materials, energy and transport; (7) the management of risks associated with sales in turnkey projects; (8) the effect of currency fluctuations being neutral; (9) the Company being able to reduce its cost base in the anticipated time frame through realization of restructuring actions; (10) the Company being able to achieve productivity improvements; (11) retention of key customers; (12) the absence of substantial capacity increases by competitors in Nexans key markets; (13) the Company successfully integrating acquisitions; (14) the Company being able to adapt its organization; (15) no 2011 impact of the above cited antitrust investigations. 2 Investor relations : Michel Gédéon Jean-Marc Bouleau Carole Vitasse Michel.gedeon@nexans.com Jean_marc.bouleau@nexans.com Carole.vitasse@nexans.com

3 achievements Frédéric Vincent Chairman and CEO

4 2011 key figures: targets have been met 4 Full year sales (*) Quarterly sales evolution (**) M 4, % org (**) 4,594 13% 5.9% 4% 3.9% Q1 Q2 Q3 Q4 Operating margin (***) 4.8% 5.6% 256 Net debt M 207 M Dec June 2011 Dec (*) Sales at constant metal prices (**) Year over year organic growth (***) Operating margin rate on constant metal sales

5 5 2011: growth in all businesses Sales at constant metal prices in M and year over year organic growth Energy Infrastructures Industry 1, % org (*) 1, % org (*) 875 M M Building Telecom % org (*) % org (*) 446 M M (*) Year over year organic growth

6 Further improvement in profitability 6 Operating margin rate on constant metal sales 7.6% 5.6% % 6.8% 6.0% 6.3% 4.8% 2.6% 3.7% 3.2% Group Industry Building Telecom Energy Infrastructures

7 Energy Infrastructures: sales and margin improvement in power distribution in H Submarine Power transmission 25 % of sales Double digit organic growth thanks to new capacity ramp-up in Norway leading to: a 2011 improved operating margin despite one contract postponement due to non compliance with all specifications Strong order book (~24 months) backed by new capacity in place Land Power transmission 15% of sales Significant impact of the Middle-East in 2011: Libya contracts interrupted, GCC contracts starting later than expected Stable order book (~12 months) Encouraging Q4 load but still challenging competitive environment Power distribution 60 % of sales Positive sales momentum in 2011 in all geographical areas: Europe: mid single digit growth but uneven situation among countries APAC: double digit growth driven by Australia - New Zealand and Korea Americas: double digit growth thanks to OHL projects in Brazil MERA (*) : mid single digit growth driven up by Russia despite a drop in Middle-East YoY organic evolution 3% Q1 9% 12% 13% Q2 Q3 Q4 (*) Middle-East, Russia and Africa

8 8 Industry: volume upturn driving margin recovery Breakdown of sales at constant metal prices Others Automotive ~25% ~35% ~15% Resources (*) ~25% Transportation 2.6% Operating Margin (% of constant metal sales) 3.7% Transportation Strong growth in aeronautics Further growth in railways despite freezing of Chinese market in H2 11 Start of recovery in shipbuilding in Q4 11 Resources (*) Growing sales in mining (Australia, South America) Growth in windmill cables Significant projects under execution in nuclear Recovery in O&G onshore in H Auto & other segments Continuing strong demand in Automotive harnesses: sales +20% YoY Automation: sales +20% YoY boosted by European demand (*) Mining, renewable, nuclear and O&G activities

9 9 Building: Continuing overall positive sales evolution leading to profitability uplift Sales evolution by area in M (*) Operating margin (% of constant metal sales) % org 6.5% 7.0% ROW Europe 4.2% 2.1% H1 '10 H2 '10 H1 '11 H2 '11 Overall widespread upturn Favorable geographical mix in Europe Full benefit of past restructuring Overall positive price environment (*) Sales at constant metal prices

10 10 Telecom: Improved profitability LAN Overall stable activity level: Stable in the USA and Europe Growing in South America Down in China Improved product mix in the USA driving profitability up Sales in M and operating margin rate on constant metal sales % 7.2% Telecom Infrastructures Copper cables: strong sales upturn in South America and mid single digit growth in Europe Optical fiber cables and components: uneven situations in Europe Growth in France and Sweden Lower performance in Switzerland and Southern Europe Sales in M and operating margin rate on constant metal sales % %

11 11 Financial results Frédéric Michelland CFO, Senior Corporate Executive VP

12 Key Figures 12 (in Million ) Sales At current metal prices ,179 6,920 Sales At constant metal prices 4,309 4,594 EBITDA (*) Operating margin Operating margin rate at constant metal prices Operating margin rate at current metal prices 4.8% 5.6% 3.4% 3.7% Restructuring (67) (22) Net income (Group share) 82 (178) +6.5% organic Operational Cash Flow Net debt (*) Operating margin before depreciation

13 13 Income statement (1/3) (in Million ) Sales At constant metal prices 4,309 4,594 Margin on variable costs 1, % 1, % Indirect costs (987) (1,086) EBITDA (*) % % Depreciation (138) (136) Operating margin % % Core exposure impact 89 (40) Asset impairment (43) (34) Change in fair value of metal derivatives and other (4) (10) Capital gain and loss on asset divestitures (**) 13 2 Restructuring (67) (22) Reserve for risk related to EU antitrust procedure - (200) Operating income 195 (48) (*) Operating margin before depreciation (**) Including transaction costs on external acquisitions

14 14 EBITDA evolution: volumes, price and mix driving top line growth in M 2010 EBITDA Volume effect 41 Mix & price 58 (40) Operating costs FX & Others 2011 EBITDA (12) EBITDA margin: 8.0% EBITDA margin: 8.5%

15 15 Income statement (2/3) (in Million ) Sales At constant metal prices 4,309 4,594 Margin on variable costs 1, % 1, % Indirect costs (987) (1,086) EBITDA (*) % % Depreciation (138) (136) Operating margin % % Core exposure impact 89 (40) Asset impairment (43) (34) Change in fair value of metal derivatives and other (4) (10) Capital gain and loss on asset divestitures (**) 13 2 Restructuring (67) (22) Reserve for risk related to EU antitrust procedure - (200) Operating income 195 (48) (*) Operating margin before depreciation (**) Including transaction costs on external acquisitions

16 16 Income statement (3/3) (in Million ) Operating income 195 (48) Financial charge (84) (106) Income before tax 110 (155) Income tax (26) (31) Net income from operations 84 (186) Net income Group share 82 (178) Net income excluding restructuring, core exposure, capital gain and antitrust reserve (*) Proposed dividend of 1.10 per share (**) (*) Restated with a theoretical income tax rate of 30% (**) To be approved at the 2012 Annual Shareholders meeting

17 Balance sheet 17 (in Million ) 31 dec dec Long-term fixed assets 1,815 1,819 of which goodwill Deferred tax assets Non-current assets 1,897 1,915 Working Capital 1, Total to finance 2,955 2,876 Net financial debt Reserves Deferred tax liabilities Shareholders' equity and Minority interests 2,207 1,920 Total financing 2,955 2,876

18 Working Capital kept under control 18 Operational Working Capital in % of sales (*) at current metal prices 21.2% 19.4% 18.9% 18.3% 18.4% 16.5% 17.0% Dec. 08 June 09 Dec. 09 June 10 Dec. 10 June 11 Dec. 11 (*) Based on last quarter sales x 4

19 19 Strict control of net debt despite significant rise in activity in M Change in working capital Others Net debt Dec. 11 Net debt Dec. 10 Operating cash flow (*) Dividends (66) (10) (144) 209 CAPEX (131) Restructuring (48) (32) No impact of copper price variation (222) (*) Operating cash flow is defined in note 3 to the Consolidated statement of cash-flows

20 20 Strategic initiatives Frédéric Vincent Chairman and CEO

21 21 6 strategic guidelines Continue focus on customer orientation Develop in attractive growing markets Consolidate our position in mature markets Gain competitiveness through excellence and cost reduction Drive differentiation through technology leadership and services Engage our talents and value our brand

22 2011 strategic initiatives 22 China EHV: acquisition of Shandong Yanggu cables in progress China industrial cables: capacity extension decided Rolling stock: JV with Alstom in Morocco USA EHV: Greenfield launched Madeco confirmed as a key reference shareholder Europe: new organization in place

23 23 Nexans resilience matrix in case of downturn Telecom LAN & Infrastructure Land Power Transmission Submarine Power Transmission Europe MERA APAC Worldwide Building Northern Europe Central Europe Southern Europe NAM SAM MERA APAC Industry Automotive Resources Transport Others Power Distribution Europe APAC SAM MERA NAM Strong resilience Medium resilience Low resilience

24 24 Appendices

25 - Appendices Sales and profitability by segment (in Million ) Sales OM OM% Sales OM OM% Energy Infrastructures 1, % 1, % Industry % % Building % % Telecom Infrastructures % % Private Networks (LAN) % % Others 26 (13) NS 30 (9) NS Total Cable activities 4, % 4, % Electrical Wires % % Total Group 4, % 4, %

26 - Appendices Impact of foreign exchange and consolidation scope 26 (in Million ) 2010 Forex Scope Organic growth 2011 Energy Infrastructures 1, ,956 Industry (16) Building 879 (4) Telecom Infrastructures Private Networks (LAN) 244 (7) Others Total Cable activities 4, (6) 298 4,328 Electrical Wires 289 (2) (5) (16) 266 Total Group 4, (11) 282 4,594

27