Electricity is in our DNA: it has been for 120 years. Today we are making all the right moves to electrify the future: pureplay over generalist, value over volume and simplicity over complexity.
The opportunity in the electrification market
We are entering a 20-year hyper-cycle of investment in electrification as the world moves from fossil fuels to renewables. Nexans will be at the heart of this colossal wave of investment, innovation and decarbonization.
Buildings
Smart buildings, growing power usage, and safer electrification will require differentiation through marketing and product innovation to create value.
Grid
Electrification challenges, connecting the solar panels and ageing power grids will unleash massive amounts of investment through to 2030.
Offshore Wind Farms
The development of offshore wind energy is still in its early stages, it already represents an important market for power cables. The growth drivers are the ever-increasing need for renewables and an already strong pipeline of large projects.
Interconnections
The growth drivers are the ever-increasing need for renewables and an already strong pipeline of large projects.
The cable market is likely to face under-capacity in the short to medium term. Nexans will be focusing on optimizing its existing manufacturing footprint and funnelling investment ahead of carefully selected (and appropriately priced) projects benefiting from strong demand.
Our performance improvement since 2018 is undeniable.
From €325
to €599M
EBITDA (2018 to 2022)
From €21
to €393M
NORMALISED FREE CASH FLOW (2018 to 2022)
From 9
to 20.5%
ROCE (2018 to 2022)
6 reasons why Nexans is well positioned for exceptional performance in the energy revolution
1
Global leader in turnkey electrification projects
Nexans added value on electrification turnkey projects represent less than 10% of the project total value. But it is critical: no project can operate without cables.
2
Unique pricing power in a booming niche market
Protected market with only two players where plants and vessels create high barriers to entry.
3
Exceptional outcomes from proven transformation platform
SHIFT proprietary methodology has tripled EBITDA while cutting in half WC through analytics and rigorous simplification decision.
4
Untapped premiumization opportunity
Value over volume has opened up our marketplace to new possibilities in innovation, digital and services.
5
Strong management team with the right answers
A strong track record borne from clear leadership, incentives aligned to value creation and share price, but also simplification generates on the ground impact.
6
More room for improving performance
The best ROCE in the industry and potential for FCF generation upside. 50% cash conversion expected by 2024 with ROCE increasing beyond 20%.
What makes the transformation unique?
-
A PE Like method (SHIFT) supported by in depth financials and data analytics, and a breakthrough way to unleash cash through complexity reduction
-
A Strategic refocus to become a Pure Electrification player supported by 10-year vision
