Nexans
2019 Full Year Results
Paris, 20th February 2020
Safe Harbor
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 visit the Group's website where they can view and download the presentation of the 2019 annual results to analysts as well as the 2019 financial statements and Nexans Universal 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.
o
In addition to the risks inherent in executing the New Nexans Transformation Plan, the uncertainties include:
o
The uncertain economic and political environments in the United States and Europe, with the risk of growth being slowed by potential major changes in US trade policy on one side of the Atlantic and the possible consequences of Brexit on the other.
o
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.
o
Geopolitical instability, particularly in certain countries or regions such as Qatar, Libya, Lebanon, Iraq, and the Persian/Arabian Gulf as well as in Hong Kong.
o
The impact that the coronavirus epidemic could have on our business and in particular our Chinese operations, our suppliers. In addition, our vessels and products could be affected by restrictions imposed by local authorities on Asian ports operations.
o
Political, social and economic uncertainty in South America, such as in Brazil, Chile, Venezuela and Bolivia, which i) is affecting the building market as well as major infrastructure projects in the region (such as Maracaibo project in Venezuela), ii) creating exchange rate volatility and iii) increasing risks of customers default.
o
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.
o
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.
o
The sustainability of growth rates of the fiber and copper structured cabling (LAN) market and the Group's capacity to seize opportunities relating to the move to higher performing categories in this market.
o
The speed of deployment of ftth ( fiber to the home ) solutions in Europe and North West Africa and the Group's capacity to seize opportunities relating to the development of this market.
o
