Nexans
2018 Full Year Results
Paris, 14th February 2019
Safe Harbor
NB: Any discrepancies are due to rounding.
This presentation contains forward-looking statements which are subject to various expected or unexpected risks and uncertainties that could have a material impact on the Company's future performance. Readers are also invited to log onto the
Group's website where they can view and download the presentation of the 2018 annual results to analysts as well as Nexans' 2018 financial statements and Registration Document, which includes a description of the Group's risk factors particularly those related to the investigations into anti-competitive behavior launched in 2009 as well as an overview of the Group's strategy and outlook.
The major uncertainties for 2019 and for the New Nexans transformation plan unveiled on November 9, 2018 as well as its roll-out in Europe, which led to the presentation of a proposed European reorganization and restructuring plan to Nexans'
employee representative bodies on January 24, 2019, are mainly related to (i) the geopolitical and macroeconomic environment, (ii) potential changes to trends on the markets we serve, and (iii) operating performance risks.
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The uncertain economic and political environments in the United States and Europe, with the risk of growth being slowed down by potential major changes in US trade policy on one side of the Atlantic and the possible consequences of Brexit on the other.
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The impact of protectionist trade policies (such as those implemented by the current US government), as well as growing pressure to increase local content requirements, nationalism and populism uprise in Europe.
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Geopolitical instability, including the embargoes in Qatar and Iran, political instability in Libya and Ivory Coast and persistent tensions in Lebanon and the Persian/Arabian Gulf.
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Political and economic uncertainty in South America, particularly in Brazil, which is affecting the building market and major infrastructure projects in the region as well as creating exchange rate volatility and an increased risk of customer default.
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Sudden fluctuations in metal prices that could affect customer purchasing patterns in the short term.
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A marked drop in non-ferrous metal prices resulting in the impairment of Core exposure, not having an impact on cash or operating margin, but impacting net income.
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The impact of growing inflationary pressure, particularly on commodities prices (resins, steel,) and labor costs, which could affect competitiveness depending on the extent to which they can be passed on to customers in selling prices.
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The impact of exchange rate fluctuations on the conversion of the financial statements of Group subsidiaries located outside the Eurozone.
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The sustainability of high growth rates and/or market penetration in segments related to datacenters, to the development of renewable energy (wind and solar farms, interconnectors, etc.) and to transport.
