Press release, Paris, France 29th July 2020
Robust performance in challenging environment, engaged global team, walking the talk on Nexans strategy
Swiftly deployed Crisis Mode to protect employee's health & safety, while delivering Production
Continuity
Record Free Cash Flow enhanced by tight working capital management
Robust performance reflecting superior execution, team engagement and customer satisfaction
Transformation accelerated and reinforced
Paving the way for a stronger New Nexans non-core asset disposal agreement
In the First Half 2020,
ð| Sound standard Sales1 of 2,895 million euros, down by -9.8% organic growth2 in challenging times
ð| Robust EBITDA of 162 million euros3 reflecting accelerated efforts on transformation
"
EBITDA rate of 5.6% in June 2020 against 6.0% in June 2019
"
EBITDA excluding estimated Covid-19 impact 4 lands at 226 million euros against
195 million euros same period 2019
ð| Net Group loss of 55 million euros, including a negative 75 million euros of estimated Covid-19
impact5
ð| Record Free cash flow generation over last six months of 231 million euros, reflecting strict working capital management
ð| Strong improvement in consolidated net debt of 276 million euros at June 30, 2020, illustrating focus on preserving liquidity and positive cash conversion cycle
ð| 2020 outlook reinstated
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ð|
Paving the way to a stronger New Nexans: sales agreements signed for the disposal of Nexans
Metallurgie Deutschland and Berk-Tek
Paris La Défense, July 29th, 2020 Today, Nexans published its financial statements for the six months ended June 30, 2020, as approved by the Board of Directors at its July 28, 2020 meeting chaired by
Jean Mouton.
Commenting on the Group's first half-year 2020 results, Christopher Guérin, Nexans'
Chief Executive Officer, said: We are pressing ahead with and even accelerating the New Nexans plan, despite the unprecedented global health and economic crisis. Consistent anticipation allowed to
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 (new standard price at 5,000 ¬/t) and aluminum
2 The first half 2020 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 -61 million euros and
0 million euros respectively.
3 Consolidated EBITDA is defined as operating margin before depreciation and amortization.
4 Covid-19 estimated impact in EBITDA of -64 M ¬ is computed by netting 1) the impact on the margin of lower sales volumes in 2020 versus 2019 HY, in countries and regions impacted with lock-downs, plants closure, and/or reduced level of commercial activity, and 2) Government subsidies and premium to workers.
5 The estimated Covid-19 impact included in the net loss corresponds to (i) the amount after tax of the EBITDA estimated loss, (ii) the depreciatio n of deferred taxes losses in Europe reflecting the update of business plans in Automotive, and (iii) the sanitary expenses spent to protect employees and maintain the activity.
