Message from the Chairman

Markets & Products• Technological lead and future solutions 02

• Tailored structure to serve our markets better 04

Customer orientation• Innovation invests in services 05

Sustainable Development • Innovation at the core of a sustainable future 06

Human resources • Innovation and training back to school with Nexans University 07

Stock market • Third-quarter 2011 sales 08

• November 10 meetings 08

• Shareholders’ diary 08

• Market data 08

• Shareholder breakdown 08

• Share price analysis 08

This is a special issue of the newsletter devoted to innovation in the Nexans Group. It is in fact through the performance of our products and services that we seek to define our difference in the eyes of our clients. Nexans leads in many areas, such as offshore applications, and future technologies, for example supra-conductivity and ultra-high bandwidth data transmission. We regularly release new products and services that reflect our ability to convert our research projects into useful solutions for our clients. More broadly, we innovate to create a safer world, one that consumes less energy and raw materials, and that has greater respect for the environment. The availability of energy and data largely condition development and quality of life.

I leave it to you to discover what we contribute. Our capacity for innovation is also expressed in our working methods, our management approaches and training. This is also reflected in the unique initiatives we take to understand our clients better and meet their needs, and in the Nexans University.

The Group’s third-quarter activity progressed positively in line with the trend set in the first half in all our businesses: energy infrastructure, industry, building and telecommunications. Organic growth was 3.9%, making a total 6.8% for the first nine months of the year. Market conditions being equal, the Group confirmed its objectives. The net debt should be brought down to 300 million euros by the end of December in line with our previous announcement.

On November 10, we held two shareholder meetings in accordance with the agreement signed with Madeco. Our statutes were updated to make sure we protect the interests of all shareholders, and a third board member was appointed to represent the Madeco Group which owns 19% of Nexans’ share capital. Given the current economic debt crisis, the support of our main shareholder and the quality of our balance sheet are significant strengths and the commitment of Nexans’ teams to innovation are a source of progress.

Shareholder Newsletter 26

CABlE INDUSTry’S TECHNICAl lEADEr

600 engineers and technicians on 4 continents • 4 Group research centers • 24 market-based development networks • 200 million euros invested over 3 years • More than 2,400 active patents • More than one patent filed each week

Frédéric Vincent // Chairman and CEO

December 2011

INNOVATION SPECIAL ISSUE

Global expert in cables and cabling systems

2 Markets & Products

Technological lead and future solutions

Electric vehicle recharging: modularity is the name of the game!The top of the terminals developed by Nexans includes sockets that can be adapted to the operator’s requirements; the lower part complies with the grid standard. These terminals incorporate intelligent applications, such as communication between the vehicle and a control center via the Internet.

Communicate via the electricity grid Nexans has designed a coupler to repatriate consumption and provide remote grid checking and maintenance. This patented economical solution uses power line communication (PLC) technology.

GLOBAL LEADER IN OFFSHORE (oil extraction)“For the offshore industry, we deliver global and reliable solutions in environments that are often very hostile. We provide exclusive technology and our expertise in networks. We design systems incorporating surveillance and control, both of which are critical functions for our clients. We provide installation, protection and maintenance.”

Yvon Raak, Senior Corporate Executive Vice-President, in charge of supervising the High Voltage and Underwater Cable Business Group and of the Asia-Pacific, the Middle East, Russia and Africa areas

ENERGY INFRASTRUCTUREImproving network reliability Nexans, Siemens and American Superconductor have just successfully tested a superconductor current limiter for a voltage of 138 kV and a nominal current of 900 A. Its function is to protect the electric power network from fault currents due to short circuits by automatically reducing the intensity to a tolerable level.

Smart grid pioneer Smart grids will revolutionize the way electricity is generated, distributed and used. Nexans already provides innovative sensors, cable solutions, and communication systems to boost electric power network intelligence, such as hybrid cables transporting power and communication data, superconductor cables, superconductor current limiters, dedicated fiber optic communication systems, etc.

2

Polar cold? Not a problem for WINDlINK®

Designed to connect the transformer in the wind turbine nacelle to the land circuit breaker, this cable can withstand a 600-kg tension and 100-degree torque in both directions per meter of cable for more than 5,000 cycles at minus 40°C.

Easy-lay umbilicals Deep-water umbilical cables are subject to extraordinary stresses. Nexans’ new patented elastic compression technology reduces the reinforcement required while improving tensile strength: a competitive advantage on a very competitive market.

AlSECUrE® PrEMIUM: exceptional fire-resistance performance and easier installationProtected by nine families of patents, INFIT™ insulation technology transforms the flexible plastic insulating sheath that makes cable laying easier into a layer of hard ceramic in the presence of a fire in order to avoid power cuts and short circuits. The cables will continue to operate up to 1,000 V and beyond 1,000°C. The new ALSECURE® PREMIUM range incorporates these features. These halogen-free, fire-resistant cables facilitate evacuation of the building and fire-fighting operations.

Desaturate networks Compact and easy to install, the new fiber optic repeater submarine cables from Nexans extend transmission ranges to 2,000 km, or five times farther than cables without repeaters.

Higher performance lAN cables Increasing fire resistance and the bandwidth of LAN cable signals, while making them smaller in order to ease data-center cooling, are challenges that Nexans has been able to overcome by using an insulation with an innovative profile obtained thanks to a patented Nexans extrusion technique.

less energy-intensive data centersData centers consume as much power as a city of 200,000 people and operate 24/24, often for critical applications. For this market, Nexans has developed a cabling system that is unrivalled in terms of its flexibility, small dimensions, reaction to heating and transmission capacity: more than 10 gigabytes/second.

INDUSTRY

BUILDING

TELECOM

KEylIOS®: first complete solar energy systemsThis range covers all types of cables for residential and commercial photovoltaic installations, and solar farms: panel interconnections, IPS connections, communication, signals, sensors, buses, and facility control and surveillance switchgear. Plus lifecycle analysis and carbon footprint assessment of the recommended solutions.

EASyFIl®: a three-in-one solution for professionalsDesigned for residential building installers, EASYFIL® consists of 3, 4 or 5 wires pre-assembled in a peel-off mix. A single cable for installation, the wires can be easily separated by hand for connection. Supplied on a single drum, it is easier to transport, handle and install. Time savings of 50%.

A Few Questions for...

Jean-Maxime Saugrain Corporate Vice-President Technical

How does Nexans R&D compare?Our R&D is one of the largest in the cable industry, with 600 people, centers on four continents, and an annual budget of around 70 million euros.

It relies on four research centers and 24 market-based development networks. We file at least one patent application a week: 75 in 2010. The innovations we introduce and the technical records we hold are testimony to the quality and productivity of our research teams.

How does your organization work?It is designed to facilitate cooperation and information-sharing at the Group level, and to drive innovation for our strategic markets.

The research centers are at the disposal of all entities within their sphere of excellence: Metallurgy in Lens (France), Rubber in Jincheon (South Korea), Cross-linked Materials and Computer modelling in Lyon (France), and Thermoplastic Materials and Extrusion Processes in Nuremberg (Germany).

The development networks define the programs in close liaison with the marketing teams so that the developments reflect client expectations.

The actual developments are handled by centers specialized by product or technology.

We also have application centers to test and compare cable performance in actual service conditions. These trials form the basis of enriching technical discussions with our clients.

4

Tailored structure to serve our markets better

Computer modelling saves us time and money by reducing

the number of prototypes needed and enabling us to optimize their design. ”

Nexans uses computer modelling to test its cables for fire resistance as well as mechanical, thermal and electromagnetic behavior. Modelling can demonstrate to client how and why a product will deliver the services required.

Nexans encourages creativity• The Innovation Award is presented

to three teams each year.• The “InnovAction” weekly

newsletter promotes innovation throughout the Group.

• Development presentation and discussion sessions are held during the Annual Technical Meeting, which includes representatives from all the Group’s research teams.

Purchasing contributes too Technology intelligence and promoting innovation to suppliers help gain approval for new equipment and material that is often more competitive.Thomas Hähner,

Manager of the Lyon Research Center in France

Markets & Products

Nexans innovates in services. Examples:Cables ready to lay and connectCombine client service, waste reduction and added value: this is the performance achieved by the “just-in-time and ready-to-lay” delivery services whereby cables are pre-cut to specified lengths, in particular for the shipbuilding industry; and wind turbine manufacturers and large data centers are supplied with complete cable sets, including connection accessories. The benefits include easier installation, less inventory and less cutting loss during cable laying.

Resident engineers at auto manufacturers’ sitesPeter Wadenspanner is a Nexans employee, but he works at BMW. His assignment? To help develop new vehicles by offering the cabling solutions best suited to the task. His main challenge is weight reduction, which in turn decreases the vehicles’ fuel consumption and CO2 emissions. Many Nexans engineers, like Peter, spend time working at manufacturers’ sites in the automotive, aerospace, shipbuilding and rail sectors.

“Turnkey” lines for network operators This hybrid “turnkey” offer combines overhead and buried power cables. It includes engineering, cables, accessories, laying, installation, site supervision and testing. Nexans has signed partnership agreements with construction and overhead cable installation contractors to build this innovative offer.

Clients informed at all timesAccessible at the click of a mouse 24/24 worldwide, Nexans’ extranets provide its main clients with round-the-clock order status tracking, delivery dates and the availability of each product. In this way, Nexans’ clients are better placed to plan their needs and optimize their inventory management.

24/24 high-voltage technical assistance With the growing number of critical applications, there is no leeway for power outages. The Nexans Premium hotline provides grid operators with the possibility of contacting high-voltage experts directly at any time, and access to an emergency stock of cables and connection accessories and an international express delivery service.

5

Innovation invests in services

Customer orientation

Peter Wadenspanner, BMW resident engineer

Alejandro Alegria, Nexans plant in Santiago (Chile)

“Our aim is to provide clients with cables that match their requirements as closely as possible while also having the lowest environmental impact possible. To select the best solutions, we rely on lifecycle analysis (LCA) that measures the impact of a cable on the environment from the extraction of its component raw materials through its end-of-life processing. LCA includes the cable production processes, packaging, distribution, and energy efficiency throughout its use. We use the EIME(1) program to helps us compare the environmental impact of each option.”

Examples• Recycling, quality, competitiveness

Nexans has developed a refining process that produces wires of the highest quality from recycled copper and that consumes far less energy than refining by electrolysis.

• HYPRON®: an example of eco-design These lead-free cables are resistant to hydrocarbons and are up to 40% lighter than traditional cables: an ecological and competitive alternative for oil and gas operations.

• ICEFLEX®: withstands everything Designed for a great many onboard applications, ICEFLEX® technology provides cables with considerable flexibility and excellent mechanical strength up to minus 50°C. Certified by Lloyds Register, ICEFLEX® cables also are ozone-, UV- and heat-resistant, and limit the spread of fire while still complying with safety and environmental standards.

• Featherweight DATAGREEN® data cables Data cables require little operating power but excellent mechanical strength for installation. The size of current copper cables is only linked to the mechanical strength of the copper. Thanks to an ultra-strong alloy, DATAGREEN® cables meet the same requirements as copper cables but weigh 50% less, are 35% smaller, have 20% more tensile strength and heat resistance in excess of 125°C. These cables are suitable for many applications in robotics, electronics, transportation and lighting.

• Protect the sea, islands and ports Supplying electricity to islands – and offshore rigs – via submarine cable links to the mainland protects marine flora and fauna, avoids using polluting generators and makes the best possible use of installed production capacity. The same applies to moored ships: the Nexans connection cable transports power and data without polluting ports.

• REACH regulations: Nexans 100% compliant Nexans has registered on time the substances needed to ensure the future of its cable-making activities, has found replacement solutions to overcome the obsolescence of certain raw materials, and has established a comprehensive database to answer clients’ questions and assist them with their own compliance procedures.

6

Innovation at the core of a sustainable future

Sustainable development

(1) Environmental Information and Management Explorer

Sustainable development demands stimulate innovation

Sophie Barbeau, Technical Manager Sustainable Development

“Designed by Nexans for Nexans and its employees, Nexans University promotes a shared culture in all areas that are key to the Group’s success. It facilitates the sharing of knowledge and best practices, develops people and their ability to work together while maximizing the Group’s resources. Since it was created four years ago, Nexans University has developed more than 50 courses. There are 100 employees involved in course design and 170 in teaching them, which means courses are given in 10 languages in 15 countries.”

Nexans trains NexansWith teams in 40 countries, we had to be very creative in developing courses to meet both the Group and countries’ needs at a reasonable cost. The cascade rollout system implemented by Nexans enables us to manage the diversity of languages and cultures involved. It is a dual-system approach:

• An educational approach with a real training school, where managers learn teaching techniques and the most highly motivated can even become course developers; these same managers can train other trainers back in their home countries;

• A faculty approach with 12 departments representing the Group’s main businesses; they are tasked with identifying best practices, documenting expertise, and establishing with the training mangers the best way to share this expertise.

Encourage networkingExpert Clubs, Business Clubs, themed meetings: Nexans encourages networks where experience can be shared, best practices swapped, and innovation in all areas promoted. This approach is implemented via intranets and internal media.

Other research initiatives: the Insiders program enables Group researchers to go to another Nexans research center to work on a specific topic for three weeks, three months or even three years.

Comprehensive training for plant managers Nexans implements a high-quality, cross-sector training course for plant managers. The course covers: safety, operational excellence, team motivation and sustainable performance. It is divided into 33 subjects that are studied in three, four-day sessions.

Knowledge of the cable-making business through imagesNexans welcomes new employees: several films, 200 slides and 8 hours of presentation with 0 text. The new initiation course into the world of Nexans can be presented as is by a commentator in any country.

7

Innovation and training back to school with Nexans University

Benoît Gandillot, Nexans University Director

Human resources

Encarna Calvo, Processing center, NRC Nuremberg (Germany)

Third-quarter 2011 sales at current metal prices (in billions of euros)

Third-quarter 2011 sales came to 1.711 billion euros at current data and 1.127 billion euros at current non-ferrous metal prices. The activity’s third-quarter organic growth was 3.9%, achieving 6.8% for the first nine months of the year. This figure reflects the continuation of the trend observed in the first half of the year for all businesses.

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NexansIndividual Shareholder Relations8, rue du Général Foy75008 Paris – France

www.finance.nexans.mobi

Issue 26 – Shareholder Newsletter // 8, rue du Général Foy – 75008 Paris, Tel.: +33 (0)1 73 23 84 00 // Publication Manager: Jean-Claude Nicolas // Editor-in-Chief: Yann Gontier // Editorial committee: Angéline Afanoukoe, Chantal Caillat, Yann Gontier, Michel Hertz, Jean-Claude Nicolas, Thierry Roucher, Jean-Maxime Saugrain Pascale Strubel // Design-Production:

// Photos and computer graphics: Nexans, AMSC, M. Cristofani - Sipa press: S. Dolidon, S. Lavoué, P. Simard, DR // Printing: Document printed on 100% PEFC paper – PEFC: certification No.: 10-31-1375 / PEFC certified / This product is from sustainably managed forests and controlled sources / pefc-france.org

Shareholders’ diary

• March 8, 2012: Information meeting for individual shareholders in Bordeaux(1)

• June 7, 2012: Information meeting for individual shareholders in Tours(1)

• October 9, 2012: Information meeting for individual shareholders in Annecy(1)

(1) Date subject to change

8 Stock market

Financial information on your cell phone

Get the Nexans share price and latest financial information from your cell phone by logging onto the following address: www.finance.nexans.mobi or by scanning the QR code opposite using the free reader(1) that can be downloaded to your cell phone at: http://percentmobile.com/getqr

(1) Excluding any service provider charges

• Share capital // €28,723,080

• Total number of shares in circulation // 28,723,080

• Par value // 1 euro

• ISIN code // FR000004448

• Where listed // Euronext Paris compartment A

• Deferred settlement service

• SBF120 index

• Ethibel excellence investment register

Stock market data

Institutional investors: 86.4% of which:

Madeco (Chile): 19% Dodge & Cox (USA): 4.9% FSI (France): 4.9%

Individual and employee shareholders: 13.6%

Shareholder breakdown (estimate September 30, 2011)

November 10, 2011 shareholders’ meetings All resolutions put to the meeting were approved

Nexans and the Chilean Group Madeco signed a ten-year agreement approved by the General Shareholders’ Meeting held on May 31, 2011. Madeco has increased its stake in Nexans share capital to 19% and has undertaken to retain it for three years. As stipulated in the agreement, a Combined General Shareholders’ Meeting and a Special Shareholders’

Meeting were held on November 10, 2011, to:• Appoint a third director to represent Madeco, Mr. Hubert Porte;• Update the statutes,- Double voting rights and the statutory limitation of voting rights to 8% were deleted. - A 20% statutory limitation to voting rights was introduced for major defining operations submitted to the approval of Extraordinary Meetings of Shareholders. The aim is to protect the interests of all shareholders by avoiding that any one shareholder obtain a de facto right of veto.

All the resolutions put to the meeting were approved.

Hubert Porte, 49, European Business School of Paris, has created several companies in Chile. He is the founder and a director of Plastic Omnium S.A. Chile; he is the Executive President of the capital investment company Ecus Private Equity S.A.; he is an Associate Partner of the asset management company Latin America Asset Management Advisors; and has been a Foreign

Trade Consultant for France since 1998.

View the video of Hubert Porte’s presentation at: www.nexans.com/nov10meetings

Share price analysisChange from January 3 to November 15, 2011Highest share price €73.10Lowest share price €39.55Closing share price on Nov. 15, 2011 €41.39Market capitalization at Nov. 15, 2011 €1,188.8 bn

Q3 2010 Q3 2011

Organic growth

e1.094 bn

e1.127 bn

+3.9%

Global expert in cables and cabling systems