2013 Overview - Nexans · 1 // NEXANS, 2013 OVERVIEW NEXANS, 2013 OVERVIEW // 2 Nexans is one of the world’s two leading cable manufacturers. The Group has a predominant presence

2013 Overview

AT THE CORE OF PERFORMANCE

1 // NEXANS, 2013 OVERVIEW NEXANS, 2013 OVERVIEW // 2

Nexans is one of the world’s two leading cable manufacturers. The Group has a predominant presence in the energy sector, where it operates in three main markets – energy infrastructure (transmission and distribution), industry and the building market. Nexans is a multi-specialist player, providing solutions for the most complex applications and the most demanding environments.

The Group develops all-embracing solutions for each market segment using feedback from customers. The customer base includes network

operators, energy producers, mining companies, engineering firms, equipment and infrastructure manufacturers, builders, installers and distributors. The services provided cover the entire value chain, encompassing studies, design, production, installation, training, services, and site monitoring and control. With its technological leadership, global expertise and local presence, Nexans satisfies essential needs while maintaining the highest levels of safety, performance, and respect for people and the environment.

Nexans is listed on NYSE Euronext Paris.

2012-2015 Sharing excellence

6 strategic priorities to support the Group’s growth

• Reinforce our position in attractive growing markets

• Consolidate our positions in mature markets and maximize the value of our assets

• Drive differentiation combining technology leadership & services and leverage our widely valued brand

• become a customer-oriented company

• Gain competitiveness through excellence in execution and lowering costs

• Engage our talents to drive mutual success

Dedication to excellence

3 Group improvement programs

• Customer orientation• Nexans Excellence Way• Competency models

6 shared values

• Think customer • Value people• Commit to excellence• Take action• be responsible• Work globally

Vital equipment for meeting essential needsQuality-of-life improvements are determined by access to energy and information, infrastructure and building safety, and the mobility of goods and people.Power and data cables transmit and distribute the electricity and information required for society to function.

TRANSMISSION, DISTRIbUTION & OPERATORS

EnergySubmarine, underground and overhead electricity transmission(1) and distribution(2) networks

TelecommunicationsTerrestrial and submarine copper and optical fiber networks

INDUSTRYResourcesOil and gas, renewable energies, nuclear power, Mining infrastructure, Umbilicals Transportationaeronautics, Defense, rolling stock, railway networks, ShipbuildingHarnessesautomotive and industrial harnessesOther industrial equipmentMachine tools, robotics, Medical, handling

DISTRIbUTORS & INSTALLERSbuilding Factories, logistics centers, shopping malls, hospitals, universities, museums, hotels, offices, residential, commercial and industrial premises, airports, data centersLANs (Local Area Networks)Data, supervision and security networks

1,500 km of cables in an oil rig

3,000 km of cables in a ship

3 to 5 km of cables in a car

650 km of cables in an aircraft

7.2 billion euros in sales(1)

25,000 employees

Plants located in 40 countries

Sales presence around the world

(1) At current non-ferrous metal prices.

(1) High-Voltage.(2) Medium- and Low-Voltage.


Nexans is organized to serve local customers locally and to support international customers around the world through its network of key account managers. In its quest to become customers’ cable supplier of choice, the Group is committed to increasing customer satisfaction with the help of its Customer Orientation group improvement program.

Reaching out to forge closer customer relationships

EUROPE

14,752 employees - 18 countries (1)

Belgium - Bulgaria - Czech Republic - Denmark - France - Germany - Greece - Italy - Lithuania - Norway - Poland - Romania - Slovak Republic - Spain - Sweden - Switzerland - Ukraine - United Kingdom

MIDDLE EAST, RUSSIA, AFRICA


Angola - Egypt - Ghana - Lebanon - Morocco - Nigeria - Qatar Russia - Senegal - Tunisia - Turkey

NORTH AMERICA


Canada - Mexico - United States

SOUTH AMERICA


Argentina - Brazil - Chile - Colombia - Peru

ASIA-PACIFIC


Australia - China - Japan - Korea - New Zealand

2012 salesby geographic area (2)

56 %

7 %

15 %

9 %

13 %

(2) By origin, at constant non-ferrous metal prices.

NORTH AMERICA

integration of amercable holdings inc., north america’s top producer of cables for mining and oil and gas applications.construction of a facility in charleston (South carolina, United States) for the production of extra high-voltage cables up to 500 kV, to satisfy the expected doubling of north american demand by 2020.

SOUTH AMERICA

improvement of manufacturing efficiency in Brazil.establishment in Peru of a triple co-extrusion production line for medium-voltage underground cables.

ASIA-PACIFIC

acquisition of a 75% stake in the cable operations of Shandong Yanggu, a leading chinese manufacturer of low-, medium- and high-voltage cables, to serve the world’s largest energy infrastructure market and establish a competitive manufacturing base for asia.local production of special cables to expand group activities in china and in Korea.Strengthening of our research center in Korea.

MIDDLE EAST, RUSSIA, AFRICA

Start-up of a Morocco-based production unit for rolling stock harnesses, in partnership with alstom.capacity additions in lebanon.expansion of local production in Qatar and russia, notably for the oil and gas industry.establishment of new sales offices in Kazakhstan andTurkmenistan.

2012-2013 INITIATIVES

(1) Countries with plants.

EUROPE

Market line-based reorganization, underpinned by the separation of sales and production and the strengthening of the supply chain, to enhance industrial performance, closeness to customers and competitiveness across countries.

HigH-pOtential marketsnexans is speeding up business development in markets with a strong growth outlook and in which the group can leverage its technological capabilities and know-how. Such markets include extra high-voltage and submarine applications, energy resources, renewable energies and transportation networks.

mature marketsThe group is consolidating its leadership positions by emphasizing customer orientation, its service offering and continuous competitiveness gains. equally vital are nexans’ efficient supply chains, whose role involves optimizing the allocation of production among facilities and assuring an excellent level of service for customers.

majOr prOjectsSpecialized teams are responsible for tenders and the management of major projects requiring multi-product, multi-site offerings and global-scale coordination. The teams are tasked with providing the most suitable industrial and logistics solutions.


Serving customers more and more effectivelyNexans’ worldwide Customer Orientation program trains employees to put customers first at all times. by being a reliable and responsive supplier, the Group can gain insight into customers’ needs and provide solutions that help customers achieve their goals.

SkILLS AND ORGANIzATIONnexans is committed to promoting a corporate culture focused on customer satisfaction, at all levels and in all functions.The group is realigning sales administration processes to enhance responsiveness and

closeness to the customer base, and to build long-term, mutually profitable relationships with customers.Key account managers are being deployed and marketing teams are being strengthened, in particular with product managers.

TOOLS AND MEASUREMENTnexans is rolling out a group-wide customer relationship management tool, as well as standardized performance indicators and customer satisfaction surveys.

PRODUCTS AND SERVICESnexans develops comprehensive offerings for each market segment, accompanied by innovative, tailor-made services. Such services include grouped or cyclical deliveries, inventory

management, custom cable lengths, ready-to-install cable and harness sets, design optimization, turnkey power lines for network operators, training, recycling, installation, on-site repairs, etc.

SOLUTIONS & PRODUCTS OF ExCELLENCE

• Industrial automation MOTIONLINE®

• Building ALSECURE®

• Shipbuilding SHIPLINk®

• Wind turbines WINDLINk®

• Mining POWERMINE®

• Solar installations kEYLIOS®

• Medical equipment NEWSENSE®

• Rolling stock FLAMEx®

• Optical fiber networks kINOPTIC®

non-exhaustive list of customers.


Innovation to make a difference and help define the futureThe Group pursues a vigorous innovation policy aimed at providing optimal responses to customers’ needs, enhancing its technological leadership and developing forward-looking solutions.

INNOVATION FIREPOWERnexans’ r&D function is very productive, with more than one patent filed weekly. r&D activities are spread across four continents and are channeled through an array of research partnerships in europe, the United States, australia and Korea.

MARkET ORIENTATIONProduct line managers work with technical teams to meet customers’ needs. engineers temporarily assigned to manufacturers optimize the safety, cost and efficiency of the solutions provided. application centers test and compare cable performance under actual-use conditions.

LEADER IN CUTTING-EDGE TECHNOLOGIESnexans offers advanced solutions for ultra-high-speed data transmission, composite core cables, superconducting cables and current limiters, solutions based on power line carrier (Plc) technology and real-time infrastructure monitoring. Thanks to its smart supervision systems and accessories, the group plays a role in network upgrades and in the creation of smarter grids to enhance safety and operational continuity.

The group takes pride in mobilizing resources to serve customers:

• 600 engineers and technicians• 4 research centers• 2012 budget of 75 million euros• 600 patents held (78 filed in 2012)

NExANS RANkS AMONG THE TOP 50 MOST INNOVATIVE COMPANIES IN FRANCE(1)

(1) Source: INPI (French Intellectual Property Office), 2012.

FUTURE-SHAPING INNOVATIONS

LO-SAGTM, a new-generation overhead line conductor with a composite carbon core which increases transmission capacity by 70% using existing infrastructure.

AMPACITY, a superconducting cable for electricity transmission in inner-city areas.

G3 PLC, a cost-effective and reliable power line carrier (Plc) solution for bringing communication capabilities to electricity networks.

ExCLUSIVE TECHNOLOGIES

INFIT® fire protection for cable conductorsICEFLEx® for resistance to extremely cold temperaturesDATAGREEN®, an ultra-light and highly energy-efficient alloy

FROM SPACE TO DEEP SEA

naSa’s curiosity robot has been exploring Mars since august 2012. like its predecessors, Spirit and Opportunity, curiosity is equipped with power, control and data cables manufactured by nexans.Watch Curiosity in action at http://mars.jpl.nasa.gov/msl/

CORE TAG®, anti-theft protection for grounding cables along railway tracks

nexans’ capjet remote-controlled robotic trenching

system buries submarine cables at water depths down to 1,000 m to protect them from damage.Watch the video at

www.nexans.com/capjet

WORLD RECORDS SET bY NExANS

• The longest and most powerful superconducting cable 600 m, 600 MVA

• T he highest-voltage insulated cable 550,000 V

• The most heat-resistant cable 1,000°C

• The most cold-resistant cable -50°C

• The longest cable in one length 156 km

• The deepest submarine cable 2,300 m water depth

• The heaviest cable 135 kg per meter


Aiming for operational excellence

NExANS ExCELLENCE WAYhigh-level training for plant managers, strong employee commitment, the sharing of best practices and standardization are central to the Nexans Excellence Way program. The program has ambitious objectives in terms of workplace safety, consumption and inventory optimization, production quality and customer service. Measures are being extended gradually to supply chain and purchasing operations.

MObILIzED IN SUPPORT OF SAFETY AND QUALITYThe accident frequency rate(1), the primary indicator of plant performance, was 5.9 in 2012 (-23% relative to 2011). The alert

Management System for the sharing and analysis of safety and quality problems enables all facilities to use past experience to achieve continuous improvement in the spheres of safety and quality.

VALUE-CREATING PURCHASESPurchases contribute to the quality, differentiation and competitiveness of nexans’ offering. The group has consequently strengthened cooperation between purchasing, technical and marketing teams. in addition, the sourcing base has been expanded, local purchases have been increased and closer ties have been forged with strategic suppliers.

(1) Number of accidents per million hours worked.

Through its Nexans Excellence Way worldwide program, the Group is continuously improving its operations to ensure workplace safety and reduce production cycles and costs for the benefit of customers.

Nexans Excellence Way

75 plants signed up 10 technology networks for the sharing of innovations and best practices among plants up and running

23% REDUCTION IN THE ACCIDENT FREQUENCY RATE AT THE PLANT IN LIMA, PERU« We initiated the Nexans Excellence Way program in April 2010 and have gradually deployed the 5S(1), SQec(2), Workplace Safety, analysis and SMeD(3) programs, together with autonomous teams.The deployment process required extensive management involvement and a high level of commitment from all.Today, we have radically improved the organization and cleanliness

of our plant. We have a new mindset and a new way of working. It is very gratifying to see everyone’s pride in the changes made. We have lowered our accident frequency rate from 25 to 10 and our scrap rate from 4% to 3.4%. We have also improved our OTIF(4) service rate by 12 percentage points, to 95%. »

Alex Garcia, Lima (Peru) Plant Manager

(1) Sort, Set in order, Shine, Standardize, Sustain.(2) Problem management approach: Settle Quickly Eradicate Control.(3) Quick tool changeovers: Single Minute Exchange of Dies.(4) On Time In Full delivery.


Succeeding alongside our employees

CORPORATE CULTUREManagers suited to working in an international environment and a skilled, motivated workforce are crucial to nexans. The group encourages the development of a corporate culture anchored in shared values.

SkILLS AND TRAININGnexans has deployed competency models for each function and business. regular interviews between employees and their respective managers are used to construct individualized career development plans.

as the group’s central learning body, nexans University enhances skills in all spheres critical to nexans’ success and develops employees’ ability to work together.

FAIRNESS AND MOTIVATIONnexans has an attractive and equitable compensation policy. The group also provides incentive schemes in most countries and actively encourages employee share ownership.

being a Nexans employee means sharing performance and responsibility values in a company that readily provides the necessary resources for professional growth and success.

25,000 employees

Europe 58.8%

Middle East, Russia, Africa

11.7%

North America 12.4%

South America 9%

Asia-Pacific 8.1%

• Think customer • Value people• Commit to excellence• Take action• be responsible• Work globally

Nexans’ values

The Nexans Code of Ethics and business Conduct is available in 16 languages.

Act 2012, Nexans’ fifth employee share ownership plan in ten years, has been offered in 24 countries. group employees now hold more than 4% of the company’s capital and have a seat on nexans’ Board of Directors.

Nexans supports the United Nations Global Compact and implements ten universally-accepted principles in the areas of human rights, labor, environment and anti-corruption.

Apprenticeships, work-study placements, internships: nexans actively contributes to the training of young people worldwide.


An engaged, responsible company

SPONSORSHIPS AND SOLIDARITYnexans places its skills and products

at the service of improving the living conditions of the

underprivileged. The group and its employees actively

contribute to the training of young people. nexans further helps preserve and promote remarkable historical and cultural heritage through sponsorships.The nexans Foundation, created in 2013, will serve as the hub for thegroup’s many sponsorship initiatives worldwide. initiatives will be founded on two commitments: access to energy for underprivileged communities and the preservation of the world heritage through the Palace of Versailles development project.

For more information, go to: www.fondationnexans.com

Nexans and its teams are committed to achieving a sustainable business performance for the benefit of the environment and society as a whole.

LESS CONSUMPTION, bETTER PRODUCTIONas part of its policy of continuous improvement, nexans strives to reduce the environmental footprint of its operations. The group is a pioneer in the sphere of recycling and has created a complete solution for the recovery of end-of-life cables.

SUSTAINAbLE SOLUTIONSThanks to eco-friendly design, nexans is able to develop products that both meet customers’ needs and have a lesser impact on the environment throughout their life cycle.The group provides solutions that enhance the safety of people and equipment alike, reduce energy loss and cO2 emissions, facilitate the development of renewable energies,and safeguard both landscapes and marine life.

NExANS, kEY SPONSOR OF THE LOUVRE-LENS MUSEUMnexans donated all of the power and data cables used in the new louvre museum in lens, France. The high environmental Quality museum is a beacon of innovation and has the potential to revive economic and job growth in the region. Visitors are expected to number 550,000 annually.

AS A SIGNATORY TO THE SPONSORSHIP CHARTER of the aDMical association, nexans undertakes to conduct its sponsorship activities in an ethical manner.

PARTNERSHIP WITH ELECTRICIANS WITHOUT bORDERS (ESF) nexans is supplying half of the association’s cable requirements for a three-year period. nearly 2,000 families living in remote villages in laos and Madagascar have gained access to electricity thanks to the group’s support.

NExANS IS INCLUDED IN THE ETHIbEL ExCELLENCE INVESTMENT REGISTER and in the eSi excellence europe and eSi excellence euro indices for

investors that take account of companies’ economic, social and environmental performances.

NExANS IS SPONSORING THE RENOVATION OF THE ELECTRICITY

NETWORkS OF THE PALACE OF VERSAILLES

A SURVEY CONDUCTED bY ERNST & YOUNG in 2012 on corporate governance practices ranked nexans among the 7% best-rated companies in the SBF 120, with a governance score of 7.5/10.

nexans is one of the top two cable manufacturers in the world. The group is a major player in the energy sector and operates in three key markets: energy infrastructure (transmission and distribution), industry and Building. nexans works with a wide range of businesses and provides solutions for the most complex applications and the most demanding environments. in close collaboration with its clients, which specialize in networks, energy production, mining, engineering, equipment manufacturing, infrastructure, building, installation and distribution, nexans develops comprehensive offerings for each market segment. its services cover the entire value chain: analysis, design, production, installation, training, related services, and monitoring and control of facilities. With its technological leadership, worldwide expertise and local presence, nexans satisfies essential needs while maintaining the highest levels of performance, safety, and respect for people and the environment. in 2012, nexans continued to expand its operations and drive sales – acquiring companies and generating new production capacity in lebanon, Morocco, Qatar, china, United States and Peru. in 2013, the group will pursue all initiatives decided upon in 2012.

Institutional investors: 85 % of which: - Madeco Group (Chile): around 22.5%- FSI (France): 5.5%- Dodge & Cox (United States): 5.2%- Manning & Napier (United States): 5.1%- Third Avenue Management (United States): 5.1%

Individual shareholders and employees: 14%

Unidentified shareholders: 1%

22,5%

5,1% 5,1% 5

,2 %

5

,5 %

Ownership structure at December 31, 2012

FOR FURTHER INFORMATIONcommunications Departmentnexans 8, rue du général Foy 75008 Paris (France)• Tel. : + 33 (0)1 73 23 84 00• Fax : + 33 (0)1 73 23 86 38• E-mail : [email protected] • Website: www.nexans.com• Foundation: www.nexansfondation.com • Nexans on social networks:

PRESS RELATIONS• Tel. : + 33 (0)1 73 23 84 12• E-mail : [email protected]

Publ

ished

by

Nex

ans

– C

omm

unic

atio

ns D

epar

tmen

t – M

arch

201

3Ph

otog

raph

s an

d co

mpu

ter g

raph

ics:

Nex

ans,

Airb

us, B

MW

, S. D

olid

on, G

etty,

M

. Lab

elle

, NA

SA, S

anaa

, Zan

Artp

hoto

, DR.

INVESTOR RELATIONSFinance Departmentnexans 8, rue du général Foy 75008 Paris (France)• Tel.: +33 (0)1 73 23 84 56• Fax: +33 (0)1 73 23 86 39• E-mail : [email protected] • Toll-free number: (France only)• E-Club: www.eclub.nexans.com• Website: www.nexans.com/finance

0 800 898 898

Documents

2013 Overview - Nexans · 1 // NEXANS, 2013 OVERVIEW NEXANS, 2013 OVERVIEW // 2 Nexans is one of the world’s two leading cable manufacturers. The Group has a predominant presence