Nexans Transforming Nexans’ value delivery model3354d890-c9f6-431f... · We have challenges… 1...
Transcript of Nexans Transforming Nexans’ value delivery model3354d890-c9f6-431f... · We have challenges… 1...
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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.
The uncertainty in the economic and political environment in Europe including the possible consequences of Brexit which could lead to lower growth ;
The impact of protectionist trade policies triggered notably by the current US government as well as growing pressures to increase local content requirements ;
Geopolitical instability including embargoes of Qatar and Iran, political instability in Libya and Ivory Coast, as well as persistent tensions in Lebanon, the Persian/Arabian Gulf and the Korean peninsula ;
The continued uncertain political and economic situation in South America, particularly in Brazil, which is affecting the building market and major infrastructure projects in the region as well as creatingexchange rate volatility and an increased risk of customer default ;
Abrupt changes in non-ferrous metal costs that can impact short term customers’ purchasing patterns;
A significant drop in metal prices leading to core exposure reevaluation and a direct impact on net income, though without impact on cash or operational margin;
The impact of rising inflationary pressures, notably on raw material costs (resins, steel etc.) and labor costs which may impact competitiveness depending on the ability to pass them through into the sellingprices to our customers;
The impact of changes in exchange rates on the conversion of the financial statements of the Group’s subsidiaries located outside the euro zone.
The sustainability of the high rates of growth and/or Nexans’ market penetration in the segments related to renewable energy development (wind and solar farms, interconnections etc.);
The speed and magnitude of recovery in the LAN cabling markets in North America and the Group’s ability to take advantage of the strong growth in large data centers;
The risk that the expected sustained growth in the automotive markets in North America and in the electric vehicle market worldwide does not materialize;
The Group’s ability to adapt to changes in O&G customers’ investments in exploration and production in reaction to oil and gas price fluctuations;
The risk that certain programs designed to improve the Group’s competitiveness such as programs of design to cost, fixed cost reductions, R&D and innovation programs, or certain business developmentplans targeting new markets, experience delays which can result from the speed in technology transfer on obtaining customer qualifications, or which otherwise do not fully meet their objectives;
The risk in particular that the time and cost foreseen to return Land High Voltage activities to profitability will not be met;
The risk that the timing of expected contract awards or entering into force of contracts in submarine cables are delayed, or accelerated, which can result in unused capacity, otherwise disrupt planning, orexceptional capacity utilization in any given year;
The inherent risks related to carrying out major turnkey projects for submarine high-voltage cables. Those might be exacerbated in the coming years as this business becomes increasingly concentrated andcentered on a small number of large scale projects (Beatrice, Nordlink, NSL, East Anglia One and DolWin6, which will be the first contract to supply and install HVDC extruded insulation cables), leading toa high capacity utilization rates of the plants involved;
The inherent risks associated with major capex projects, particularly the risk of completion delays. These risks notably concern the construction of a new submarine cable laying ship and the extension of theGoose Creek plant in North America to add production of submarine high-voltage cables, two projects that will be instrumental to 2021 objectives.
All figures presented in this document are not taking into account future application of IFRS/16
INVESTOR RELATIONS:Michel GÉDÉON +33 1 78 15 05 41 [email protected]ème DIOP +33 1 78 15 05 40 [email protected]
We have chal lenges…
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Undertake further transformation▪ The potential of turnaround remains high▪ Manage for growth the 50% of the Group that generates a very good return▪ Transform the remaining 50% to unlock value
Mindset change from volume to value growth▪ More volume does not mean more profit, we need to scale more than to grow▪ Move up the value chain rather than focus on growth at all cost▪ Grow value by positioning Nexans as a service provider and conquer new white
spaces
Adjust organization structure to introduce more accountability and agility▪ Higher discipline in execution ▪ Stronger focus on Return on Capital Employed and Free Cash Flow generation▪ Simplified, leaner and more agile organization
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The current strategic plan and the initiatives it describes are based on assumptions and scenarios used as hypothesis upon which the attached document is based. These assumptions and scenarios are exposed to all risk factors and main uncertainties described in the 2017 Registration document and in the 2018 Half-year financial report of the Group. Moreover, certain scenarios considered in the current strategic plan will be further analyzed prior to deciding their implementation, and projects resulting from those studies will be submitted to relevant legal bodies including to employee representatives bodies if applicable and when needed.
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A differentiation DNA▪ Demonstrated capabilities to differentiate through deployment of services and use of
marketing, creating value in very competitive markets such as Building & Territories▪ Successfully managed to develop systems in segments such as wind turbines▪ Our service team is being reinforced to scale this up
Megatrends support our value chain move▪ Capturing new services, building modules & systems to escape commodity traps
and future intermediation risks ▪ Address the €120Bn market services with new offerings and strategic partnerships
A turnaround method already proven and scalable▪ Europe and Middle East Africa Areas, have succeeded their transformation▪ A methodology called SHIFT has been designed by Nexans▪ Our teams are already starting to deploy it in underperforming units
… and a great potent ial to unlock
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The current strategic plan and the initiatives it describes are based on assumptions and scenarios used as hypothesis upon which the attached document is based. These assumptions and scenarios are exposed to all risk factors and main uncertainties described in the 2017 Registration document and in the 2018 Half-year financial report of the Group. Moreover, certain scenarios considered in the current strategic plan will be further analyzed prior to deciding their implementation, and projects resulting from those studies will be submitted to relevant legal bodies including to employee representatives bodies if applicable and when needed.
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The World population will increase by +20%, and urbanization by +40%
Energy consumption will jump by +40%
Renewable energy will double
Energy transition bringing huge needs in Infrastructures and Networks
2030
2018
Cable & connectivity production will grow 3.9% per year to 2030System management will grow up to 9.2% per year to 2030.
L E A D T H E V A L U E G R O W T H ( I N N O V AT I O N & S E R V I C E S )
Long term perspectives are excellent and require a move alongside the value chain leading to value growth more than volume growth.
By capturing new services, building modules and systems Nexans will:1- Deliver the best value for money for its clients 2- Escape the commodity traps and future intermediation risks. 3- Address the €120Bn market services with new offerings and strategic partnerships
All third party trademarks (including logos and icons) referenced here remain the property of their respective owners. Unless specifically identified as such, Nexans’ use of third party trademarks does not indicate any relationship, sponsorship, or endorsement between Nexans and the owners of these trademarks.
Cable production(Incl. accessories and cable assembly)
Cable Services
Asset management(design, build and maintain equipment & infrastructures)
Operations
System management
€220Bn
~€120Bn
~€1,000-1,100Bn
~€1,100-1,400Bn
~€20-25Bn(fast growing)
Total ~€2,700BnFirst estimate
Big picture view of the Energy & data management market Focus on Transmission & Distribution (power & data out of scope)
Cust
om
er
need
Fro
m b
asi
c to
sophis
ticate
d
+
-
FOCUS
Reduce operation complexity, be more selective
SIMPLIFY
Reduce organization complexity, increase efficiency
ADAPT
Optimize operations & Shift the portfolio
CONNECT DIGITALIZE DISRUPT
Develop new customers’ offering with partners
Digital transformation to capture higher returns
Penetrate new white spaces with less capital intensity
2019 2020 2021
Managem
ent fo
cus
TRANSFORM OUR OPERATIONAL MODEL
Pay our performance Debt
TRANSFORM OUR POSITIONING
Change Playfield to grow value
Scale up the new
model
Del iver on t ransformation to bui ld our future
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Agile organization, Talent Management, Corporate Social Responsibility
2018
The current strategic plan and the initiatives it describes are based on assumptions and scenarios used as hypothesis upon which the attached document is based. These assumptions and scenarios are exposed to all risk factors and main uncertainties described in the 2017 Registration document and in the 2018 Half-year financial report of the Group. Moreover, certain scenarios considered in the current strategic plan will be further analyzed prior to deciding their implementation, and projects resulting from those studies will be submitted to relevant legal bodies including to employee representatives bodies if applicable and when needed.
Our 2021 object ivesB a s e d o n t h e c u r r e n t m a r k e t c o n d i t i o n s
2018E
8.5 %
2021P
15.5 %
+7.0 pts
R O C E
-190 M€
2016-2018E
> 200M€
2019E-2021P
F R E E C A S H F L O W
C U M U L A T E D
I n M i l l i o n s E u r o s
325 M€
500 M€
2018E 2021P
+175M€
E B I T D A
• Transform underperforming units towards greater profitability• Focus profitable units on growth for value via differentiation and innovation• Restore competitiveness through ambitious cost reduction plan• Enforce more discipline in CAPEX management and ROI monitoring
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I n M i l l i o n s E u r o s ( B e f o r e M & A a n d d i v i d e n d s )I n % ( B e f o r e t a x e s )
The current strategic plan and the initiatives it describes are based on assumptions and scenarios used as hypothesis upon which the attached document is based. These assumptions and scenarios are exposed to all risk factors and main uncertainties described in the 2017 Registration document and in the 2018 Half-year financial report of the Group. Moreover, certain scenarios considered in the current strategic plan will be further analyzed prior to deciding their implementation, and projects resulting from those studies will be submitted to relevant legal bodies including to employee representatives bodies if applicable and when needed.
EBITDA: Operating Margin (OM) before depreciations ROCE: 12months on end-of-period capital employed restated for antitrust provisions. Yearly depreciation amounting to approximately 140M€ in 2018 and 150M€ beyond, Operating Margin can be computed accordingly.
~
~
FOCUS SIMPLIFY ADAPT CONNECT DIGITALIZE DISRUPT
2019 2020 2021
Managem
ent fo
cus
Strategic scorecard : 2 Sequences, 6 Management streams
CSR priorities – p15
TRANSFORM OUR OPERATIONAL MODEL
Pay our performance Debt
TRANSFORM OUR POSITIONING
Change Playfield to grow value
Scale up the new model
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Transformation plan – p12 to p13
Zoom
on s
ele
cted
initia
tive
s
KPI & Routines – p14
Business Unit portfolio management – p10 to
p11
Dedicated presentation in 2019
Cost reduction initiatives – p11
The current strategic plan and the initiatives it describes are based on assumptions and scenarios used as hypothesis upon which the attached document is based. These assumptions and scenarios are exposed to all risk factors and main uncertainties described in the 2017 Registration document and in the 2018 Half-year financial report of the Group. Moreover, certain scenarios considered in the current strategic plan will be further analyzed prior to deciding their implementation, and projects resulting from those studies will be submitted to relevant legal bodies including to employee representatives bodies if applicable and when needed.
2018
FOCUS Strong business unit portfolio management
EBIT% of Net Constant sales
Net Constant sales% of OWC
Restructure
Milk
Value burners
Profit driversProfitable cash tanks
Cash tanksTransformation candidates
NEXANS BUSINESS UNIT PORTFOLIO ANALYSISA granular view
BY 2021 WE TARGET A COMPLETE TURNAROUND OF VALUE BURNERS, ONE THIRD OF THE COMPANY WILL STILL BE IN TRANSFORMATION PHASE
Split of the estimated 2018 turnover per Business Unit segment (Simplified and at iso-volume)
Value Burners
Profit drivers and Profitable Cash tanks
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2021P
2018E
2018E
2021P
2021P
2018E
2018E
2021P
Building & Territories
High Voltage & Projects
Telecom & Data
Industry & Solutions
Transformation candidates and Cash tanks
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The current strategic plan and the initiatives it describes are based on assumptions and scenarios used as hypothesis upon which the attached document is based. These assumptions and scenarios are exposed to all risk factors and main uncertainties described in the 2017 Registration document and in the 2018 Half-year financial report of the Group. Moreover, certain scenarios considered in the current strategic plan will be further analyzed prior to deciding their implementation, and projects resulting from those studies will be submitted to relevant legal bodies including to employee representatives bodies if applicable and when needed.
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FOCUS Strong business unit portfolio management
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Our Strategy
Our Initiatives
Our targets
Status
RestructureManage for cash
Sales Attrition
Freeze CAPEX
Transform
No volume growth or attrition to
target margin ratios
increase
CAPEX freeze Except
maintenance safety and
environment
Incremental 100M€ EBITDA run rate by 2021
Reduction of 190M€ OWCthrough SHIFT and other
initiatives
▪ Deploy transformation task force
▪ Focus KPIs on cost control and free cash flow
▪ Favor attrition of the activities to target margin ratios increase
▪ Optimize Industrial footprint
2Manage for Value Growth
Grow ValueAllocate CAPEX
Differentiate & Innovate
Focused & profitable growth targeting 55M€ EBITDA run
rate by 2021
400M€focused on a
limited number of initiative of
which Aurora new HV
subsea boat
Seed for value growth
New offerings,
Smart products
Turnkey, new capabilities
▪ Deploy Service & Innovation task forces
▪ Carry out Differentiated offers methods
▪ Focus KPIs on growth and free cash flow
▪ Boost value growth
TurnaroundManage for cash
1 2 3
ALL UNITS Offset Price cost squeeze & labor
inflation
Cost reduction initiatives
210M€ fixed and variable cost reduction run rate by 2021
To offset the Price cost squeeze & Labor inflation, estimated at ~190M€ over the
period
▪ Industrial Footprint optimization
▪ Indirect spend reductions
▪ LEAN manufacturing implementation
▪ Support functions optimization
The current strategic plan and the initiatives it describes are based on assumptions and scenarios used as hypothesis upon which the attached document is based. These assumptions and scenarios are exposed to all risk factors and main uncertainties described in the 2017 Registration document and in the 2018 Half-year financial report of the Group. Moreover, certain scenarios considered in the current strategic plan will be further analyzed prior to deciding their implementation, and projects resulting from those studies will be submitted to relevant legal bodies including to employee representatives bodies if applicable and when needed.
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FOCUS & ADAPT
Results
Rethink business portfolio Reduce complexity, enhance density Break silos, become systemic, and holistic
The transformation project is split into Business Units that correspond to existing profit centers.Make KPIs simple: EBITDA, OWC, FCF
The mission is organized in project mode for 12 to18 months with a weekly tempo under direct supervision Nexans top management.
A task force fully dedicated to support and drive the transformation is being deployed on sites. Composed of consultants & Nexans leaders.
More than 30 transformation levers have been codified and adapted to the cable industry covering sales, logistics and operations into a holistic approach.
€CASE STUDY – European Activities – 2014-2016
What has been done?
Squad turnaround forces transforming Data into Actions and Actions into Results.
10 Business Units have been covered between December 2014 and December 2016 on a Sales perimeter of 0,9Bn€ (Constant metal prices) :
• An additional 20M€ EBITDA has been generated in 2016 vs. 2014.
• The OWC decreased of 70M€ on the period.
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Transformation plan
The current strategic plan and the initiatives it describes are based on assumptions and scenarios used as hypothesis upon which the attached document is based. These assumptions and scenarios are exposed to all risk factors and main uncertainties described in the 2017 Registration document and in the 2018 Half-year financial report of the Group. Moreover, certain scenarios considered in the current strategic plan will be further analyzed prior to deciding their implementation, and projects resulting from those studies will be submitted to relevant legal bodies including to employee representatives bodies if applicable and when needed.
Since 2014
Building & Terri tories
High Voltage & Projects
Telecom & Data
Industry & Solutions
HY 2018 2019 2020
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FOCUS & ADAPT
The full transformation program targets a contribution of 100M€ EBITDA and 190M€ OWC reduction by 2021
Estimate is based on the results of our ‘financial stress test’ ran in Q3 2018, and our past experiences.
Transformation plan
The Land HV business unit is currently going through a special transformation plan, covering sales, OWC and industrial performance
Deployed on 5 Business Units
Deployed on 2 Business Units
Deployed on 3 Business Units
6 Business Units covered
1 Business Units covered
14 Business Units covered
1 Business Units covered
6 Business Units covered
2 Business Units covered
2 Business Units covered
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We will stick with a time-tested approach that generates big returns from dramatic improvements in operations.
The current strategic plan and the initiatives it describes are based on assumptions and scenarios used as hypothesis upon which the attached document is based. These assumptions and scenarios are exposed to all risk factors and main uncertainties described in the 2017 Registration document and in the 2018 Half-year financial report of the Group. Moreover, certain scenarios considered in the current strategic plan will be further analyzed prior to deciding their implementation, and projects resulting from those studies will be submitted to relevant legal bodies including to employee representatives bodies if applicable and when needed.
Accountability for results
Pace & routines
Indicators & targets
Switch the culture from Understanding to Acting Foster a results-oriented mindset by creating repeatable processes that
spur performance improvements again and again. Develop managers hard skills on turnaround practices
Stronger weighting of ROCE & Free cash flow Adapt KPIs to the business cluster (Growth vs. Turnaround) Align management variable remuneration
Increase the pace: from quarterly routines to monthly & weekly ones Actions & projects linked to financial result Increase routine frequency when results deviate from target Central control tower to lead and monitor weekly all initiatives
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ADAPT New management routines, new kpi, Central control tower
14The current strategic plan and the initiatives it describes are based on assumptions and scenarios used as hypothesis upon which the attached document is based. These assumptions and scenarios are exposed to all risk factors and main uncertainties described in the 2017 Registration document and in the 2018 Half-year financial report of the Group. Moreover, certain scenarios considered in the current strategic plan will be further analyzed prior to deciding their implementation, and projects resulting from those studies will be submitted to relevant legal bodies including to employee representatives bodies if applicable and when needed.
CSR ranking 2014 2017
DC+
‘Prime’
D B
63/100 2017: 72/100
CSR as a value creation lever
Our TOP 4 priorities
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KPI Target 2021
Safety
<1Workplace accident frequency rate
Women 25%
in management positions
Environmental certifications97%
sites certified EHP and/or ISO 14001
OTIF 94%
including logistic and plants data
Safety
Ensure health and safety at sites
Leverage safety rules enforcement to reinforce our discipline in execution
Trainings
Build people who build business
Reinforce Nexans employees hard skills (finance, sales & marketing, lean manufacturing)
Energy transition
Engage with customers to contribute to a more sustainable economy (energy transition, electric mobility, smarter grids and renewable energy)
Position ourselves on future proof business
Values & Ethics
Maintain a compliant framework and fair business practices
Promote Nexans as a business partner of trust for clients & investors
The current strategic plan and the initiatives it describes are based on assumptions and scenarios used as hypothesis upon which the attached document is based. These assumptions and scenarios are exposed to all risk factors and main uncertainties described in the 2017 Registration document and in the 2018 Half-year financial report of the Group. Moreover, certain scenarios considered in the current strategic plan will be further analyzed prior to deciding their implementation, and projects resulting from those studies will be submitted to relevant legal bodies including to employee representatives bodies if applicable and when needed.
2018-2021 Br idgeOverall Trajectory – Waterfall from Baseline to 2021 EBITDA
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325
500
210
100
55
2018E Organic Growth & Value Growth
Initiatives
2021P
190
Transformation PlanPrice cost squeeze & labor inflation
Cost reduction initiatives
EBITDAIn million €
The current strategic plan and the initiatives it describes are based on assumptions and scenarios used as hypothesis upon which the attached document is based. These assumptions and scenarios are exposed to all risk factors and main uncertainties described in the 2017 Registration document and in the 2018 Half-year financial report of the Group. Moreover, certain scenarios considered in the current strategic plan will be further analyzed prior to deciding their implementation, and projects resulting from those studies will be submitted to relevant legal bodies including to employee representatives bodies if applicable and when needed.
EBITDA: Operating Margin (OM) before depreciations ROCE: 12months on end-of-period capital employed restated for antitrust provisions. Yearly depreciation amounting to approximately 140M€ in 2018 and 150M€ beyond, Operating Margin can be computed accordingly.
~
2018-2021 trajectory
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325
500
FY18E FY19P FY20P FY21P
EBITDA
350 to 390
In million €
Actions financial impact (Cumulated % of 2021 Run Rate)
Transformation Plan
Organic growth & value growth init.
Cost reduction init.
Price cost squeeze & labor inflation
20-30%
5-15%
30-40%
33%
60-70%
55-65%
60-70%
100%
100%
100%
66% 100%
The current strategic plan and the initiatives it describes are based on assumptions and scenarios used as hypothesis upon which the attached document is based. These assumptions and scenarios are exposed to all risk factors and main uncertainties described in the 2017 Registration document and in the 2018 Half-year financial report of the Group. Moreover, certain scenarios considered in the current strategic plan will be further analyzed prior to deciding their implementation, and projects resulting from those studies will be submitted to relevant legal bodies including to employee representatives bodies if applicable and when needed.
EBITDA: Operating Margin (OM) before depreciations ROCE: 12months on end-of-period capital employed restated for antitrust provisions. Yearly depreciation amounting to approximately 140M€ in 2018 and 150M€ beyond, Operating Margin can be computed accordingly.
~
2018-2021 trajectory
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8.5%
FY18E
15.5%
FY19P FY21PFY20P
ROCEBefore taxes
FY21PFY18E
4.4 Bn€
FY19P FY20P
~3% CAGRSales Constant metal prices
9% to 11%
The current strategic plan and the initiatives it describes are based on assumptions and scenarios used as hypothesis upon which the attached document is based. These assumptions and scenarios are exposed to all risk factors and main uncertainties described in the 2017 Registration document and in the 2018 Half-year financial report of the Group. Moreover, certain scenarios considered in the current strategic plan will be further analyzed prior to deciding their implementation, and projects resulting from those studies will be submitted to relevant legal bodies including to employee representatives bodies if applicable and when needed.
EBITDA: Operating Margin (OM) before depreciations ROCE: 12months on end-of-period capital employed restated for antitrust provisions. Yearly depreciation amounting to approximately 140M€ in 2018 and 150M€ beyond, Operating Margin can be computed accordingly.
2018-2021 trajectory
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Delta OWC (Transf.)
EBITDA Cost reduction One-offs
CAPEX Delta OWC (Growth)
CF Before Taxes & Interest
Debt interest & pensions1
Cash Taxes
Cumulative CF2
Cumulated Free Cash Flow 2019P-2021P Before dividends and M&A
• Cost reduction one-offs estimated at ~250M€ on the period will be self financed within 2 years. • CAPEX : Includes 400M€ focused on a limited number of Profit Drivers segment initiative such as Aurora new HV subsea boat and North
America
>200M€
1.3 to 1.4Bn€
The current strategic plan and the initiatives it describes are based on assumptions and scenarios used as hypothesis upon which the attached document is based. These assumptions and scenarios are exposed to all risk factors and main uncertainties described in the 2017 Registration document and in the 2018 Half-year financial report of the Group. Moreover, certain scenarios considered in the current strategic plan will be further analyzed prior to deciding their implementation, and projects resulting from those studies will be submitted to relevant legal bodies including to employee representatives bodies if applicable and when needed.
EBITDA: Operating Margin (OM) before depreciations ROCE: 12months on end-of-period capital employed restated for antitrust provisions. Yearly depreciation amounting to approximately 140M€ in 2018 and 150M€ beyond, Operating Margin can be computed accordingly.
Walk the ta l kT h e c o m m u n i c a t i o n a g e n d a o n o u r i n i t i a t i v e s
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Full Year 2018 results Half Year 2019 results
TRANSFORM OUR POSITIONING
TRANSFORM OUR OPERATIONAL MODEL
SHIFT– Status and results
New group operational organization
Cost reduction initiatives – Follow up and results
The current strategic plan and the initiatives it describes are based on assumptions and scenarios used as hypothesis upon which the attached document is based. These assumptions and scenarios are exposed to all risk factors and main uncertainties described in the 2017 Registration document and in the 2018 Half-year financial report of the Group. Moreover, certain scenarios considered in the current strategic plan will be further analyzed prior to deciding their implementation, and projects resulting from those studies will be submitted to relevant legal bodies including to employee representatives bodies if applicable and when needed.
Transform Our Positioning – Strategic update
Full Year 2019 results Half Year 2020 results
Fact based Comprehensive review
We have gone deeper than ever before to understand our strengths and weaknesses building a view of the Nexans’ future based on a clear understanding of where we can succeed and how we must change to get there.
Transformation We have a clear, concise and actionable plan forward rooted on the past success of SHIFT. The turnaround we proved for 50% of Nexans’ will now be the focus for the rest of the company as we ramp up our value drivers delivering cash and building our future potential. Changing the company culture and structure from one of understanding to acting.
Sequential Continued Transformation Focus
Delivering on a future not based on wishful thinking but on the fundamental market trends driving our customers of today and those of tomorrow. Constructed on the market megatrends that spell out the future growth cycles, Nexans’ after its transformation will be uniquely positioned to drive customer and shareholder value.
Future proof Future based on customer success
Snapshot
Positioning
Transforming Nexans’ value delivery model
23The current strategic plan and the initiatives it describes are based on assumptions and scenarios used as hypothesis upon which the attached document is based. These assumptions and scenarios are exposed to all risk factors and main uncertainties described in the 2017 Registration document and in the 2018 Half-year financial report of the Group. Moreover, certain scenarios considered in the current strategic plan will be further analyzed prior to deciding their implementation, and projects resulting from those studies will be submitted to relevant legal bodies including to employee representatives bodies if applicable and when needed.