2014 overview nexans brings energy to life · 2014-03-20 · 1 i nexans, 2014 overview...

L’Essentiel 2014 I 1

2014 Overview

NEXANSBRINGS ENERGYTO LIFE

1 I Nexans, 2014 Overview

Quality-of-life improvements are made possible by access to energy and information, the movement of goods and people, and the safety of infrastructure and buildings.

As a global player in the cable industry, Nexans helps meet essential, growing needs with cables and cabling systems that transmit the electricity and information required for society to function.

Evolving with our needs and our lifestyles, cables include more and more technology to meet growing requirements.

On the cutting edge of its industry for over a century, the Group provides solutions for the most complex applications and the most demanding environments.

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.

26,000 employees

6.7 billion euros in sales (1)

Plants located in 40 countries

Sales presence around the world(1) At current non-ferrous metal prices.

As a member of the United Nations Global Compact, Nexans is committed to supporting and implementing ten universally accepted principles in the areas of human rights, labor, environment and anti-corruption.

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

Nexans, 2014 Overview I 2

Serving essential needsTurning on a lamp, taking an elevator, starting a production line, carrying wind and solar energy – all these activities require cables and cabling systems. Nexans supports its customers in three main markets: energy infrastructure (electricity transmission and distribution), industry and the building market.

TrANSMiSSiON,DiSTriBUTiON & OPerATOrS

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

TelecommunicationsTerrestrial and submarine copper and optical fiber networks.

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

iNDUSTrY

resourcesOil and gas, Nuclear power, Renewable energies, Mining infrastructure, Umbilicals.

TransportAeronautics, Defense, Shipbuilding, Rolling stock, Railway networks.

HarnessesAutomotive and industrial harnesses.

Other industrial equipmentMachine tools, Handling, Robotics, Medical.

DiSTriBUTOrS & iNSTALLerS

BuildingFactories, logistics centers, shopping malls, hospitals, universities, museums, hotels, offices, residential commercial and industrial premises, airports, data centers.

LANs (Local Area Networks)Data, supervision and security networks.

3 I Nexans, 2014 Overview

Solutions at the core of performance

Nexans works closely with its customers and is committed to providing efficient solutions that meet their needs throughout the value chain – from engineering to recycling.

Its global Customer Orientation program puts customers first, helping to identify their requirements, understand their needs and provide solutions that help them quickly achieve their goals. This program uses a Group-wide customer relationship management tool, as well as shared standards and performance indicators. Standardized satisfaction surveys form the basis of improvement plans.

Building long-term, mutually beneficial relationships Nexans adapts its resources and its organization to strengthen its customer relationships and offer market solutions, by stepping up its marketing, separating sales from production, and assigning international or regional Key Account Managers to customers.

From products to solutionsThe Group develops comprehensive offerings for each market segment, accompanied by innovative, tailor-made services, including grouped and cyclical deliveries, inventory management, custom cable lengths, ready-to-install cable and harness sets, advanced specification models, turnkey power lines for network operators, training, and management of end-of-life cables.

Solutions for each application e

• 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®

Nexans, 2014 Overview I 4

OiL, GAS & MiNiNG Robust and service-orientedNexans AmerCable is a leader in North America that has built its success on exceptionally robust products, made-to-measure solutions, and first-class delivery, maintenance and repair services – a model that is being rolled out worldwide.AerONAUTiCS Light and reliableHigh-temperature power coaxial cables, data buses and optical fibers, and fire-resistant cables... Nexans seeks solutions for applications with cables that are lighter, safer, more compact and stronger than before, such as its aluminum cables that are 35% lighter and the smooth wrapped-tape cables presented at the last Paris Air Show at Le Bourget (France).

BUiLDiNG Easier installation and ManagementElected Building Product of 2013 by French construction professionals, DISTINGOTM simplifies the work of electricians with patented length marking that shows how much cable is left, making it easier to cut precise lengths, handle invoicing and manage inventories – with a different color for each cross-section for more reliable installation, as well as easier coil selection and order verification.MeDiCAL Smart and comfortableNEWSENSETM helps develop safe, comfortable and smart equipment – offering a large range of cables and microcables for this rapidly expanding market.MOBiLe APPLiCATiONS InformationCustomers can monitor the status of their orders at any time on Nexans’ extranet and use their smartphones to access e-catalogs, installation guides and warranty forms.

5 I Nexans, 2014 Overview

A global and local partnerConnecting islands to the mainland, providing access to electricity for a region, improving network safety, supporting customers during the technical implementation of their solutions – Nexans works alongside its customers worldwide to make their projects a reality.

Nexans cultivates the assets that set the Group apart – a wide range of cables and connection accessories that meet current worldwide standards, the capacity to mobilize several plants for a single customer or project and synchronized logistics.

Providing support and staying a step aheadNexans serves very different customers – network operators, energy producers, mining companies, equipment and infrastructure manufacturers, builders,

installers, distributors and engineering firms – whose needs may be highly heterogeneous and span several countries.

Working closely with major clients, Nexans’ regional and international Key Account Managers seek to understand and respond to the challenges their customers face, to meet their needs today and anticipate the needs they will have tomorrow. All Nexans’ functions are involved in this effort to work better together to serve Nexans’ end customers.

Coordinated support Handling tenders and managing major projects requires coordinated multi-product, multi-site offerings. They are overseen by specialized teams that can mobilize the Group’s resources to provide the most suitable industrial and logistics solutions.

eUrOPeCreating reliable railway networks Sweden is optimizing its railway infrastructure, and it has chosen Nexans as its main supplier for three years because of the Group’s extensive offer, technical expertise and advantageous solutions in terms of total operating costs.

ASiA Enhancing safety in a nuclear power plantIn the event of a fire, the emergency and security systems of the new Chinese power plant in Tianwan will be well protected. The Nexans cables selected use a technology that incorporates halogen-free insulating sheaths to preserve circuit integrity in the event of a fire and limit smoke emissions.

AFriCA Combining productivity and respect for marine ecosystemsThe submarine pipelines of the Lianzi oil field off the coast of Angola and the Republic of Congo will be equipped with a full direct electric heating system supplied by Nexans. This environmentally friendly technique eliminates the need for chemical injection to maintain flow in production pipelines, thus protecting marine life.

Nexans, 2014 Overview I 6

SOUTH AMeriCAEquipping a large-scale hydroelectric power projectThe Coca Codo Sinclair dam will supply one-third of Ecuador’s electricity. Sinohydro, which is building the dam, called on Nexans for the extra high-voltage cables needed for this major project because of the Group’s technological sophistication and strong presence in South America – a plus for the dam’s operator, which will be able to tap into important skills locally.

NOrTH AMeriCAMeeting strong demand

for energy infrastructure A new plant for extra high-voltage cables

will be opening in Charleston, South Carolina (United States) at the end of

2014 in response to strong demand for electrical infrastructure in the Americas.

7 I Nexans, 2014 Overview

Meeting challenges for safety, performance and energy transition

Nexans pursues a vigorous innovation policy to meet its customers’ challenges while controlling environmental impact, and maintain its leadership in game-changing developments like superconductivity, power line carrier technology and smart grids.

innovation that focuses on the markets

• Four research centers specialized by field that are involved in creating innovative materials, fine-tuning technologies and developing new products.

• Application centers open to customers to test and compare cable performance under real operating conditions.

• A technical conference for customers and partners held every year since 2011 to address innovation in a specific market, such as overhead lines in 2013.

exclusive Technologies • Lo-SagTM, these composite core conductor cables

for overhead lines transmit much more electricity with reduced sag.• ICEFLEX®, for resistance to extremely cold temperatures. • INFIT®, fire protection for cable conductors and electricity distribution.

A collection of records

• 600 m: the longest superconducting cable.

• 550 000 v: the highest-voltage insulated cable.

• 1,000°C: the most heat-resistant cable.

• - 50°C: the most cold-resistant cable.

• 156 km: the longest cable in one length.

• 135 kg/m: the heaviest cable

• - 2300 m: the greatest depth of a submarine cable.

Nexans, 2014 Overview I 8

Preventive maintenance This cable used for automation has several layers of different colored insulation to alert users to abrasion. When the red sheath appears, it is time to replace the cable in order to protect production and equipment.More accessible submarine robotsBy improving the bending fatigue resistance of umbilical cables, the new ENABLE® range has helped create more cost-effective submarine robots.

Cables that are even easier to installThe DISTINGOTM range makes it easier to identify, cut and install building cables.A communicating electricity networkThe G3 PLC standard makes it possible to use low- and medium-voltage power line carriers to exchange data at a rate that is Web 2.0 compatible: a communications solution that is advantageous for network operators and was tested by

the SOGRID consortium among 1,000 households equipped with smart meters by ERDF. Overhead cable with extractable fiberA cost-effective solution to provide high-speed broadband fiber to the most remote regions.

patents filed in 2013

600 76 650 80engineers and technicians

million euros (investments in 2013)

patent families

Nexans ranks among the top 30 most innovative companies in France(1)

(1) 2013 INPI ranking.

AmpaCity wins the 2013 RWE Supplier Innovation Award! Designed to replace a high-voltage cable in the German city of Essen, this superconductivity solution, made up of a cable and a fault current limiter, eliminates the need for transformers in city centers.

9 I Nexans, 2014 Overview

Mobilized for operational excellence

Reliability, quality, performance and service – Nexans’ teams are engaged in a continuous improvement process to meet their customers’ expectations.

The Nexans Excellence Way program seeks the continuous, long-term improvement of all the Group’s processes in terms of safety, quality, delivery lead times, costs and impact on the environment.This worldwide program draws on support from the Group’s teams, the sharing of best practices, standardization and the use of lean management tools.

Competitiveness plan:efficiency in project phase Nexans has rolled out a competitiveness plan at Group level focusing on eight areas that cover the entire value chain: redesign to cost, streamlined references, optimized purchasing, improved payment terms, lower working capital requirement, improved supply flows and reduced investment costs.

Several projects will be carried out in each area.The competitiveness plan is managed at each level of the organization in project phase with financial objectives, schedules, structured teams and controlled results.

Nexans Excellence Way

• 75 plants signed up

• A consistent organization of technological networks for sharing innovation and best practices among plants

Competitiveness plan

• 8 areas, 19 initiatives, 100 projects

• 200 people trained by Nexans University in project management

Nexans, 2014 Overview I 10

wOrKPLACe SAFeTYr

Within 3 years, Nexans has halved the workplace accident frequency rate by using a very structured approach. The rate was 4.12 in 2013, and the Group aims to improve the accident frequency rate by 30% in 2014 and again in 2015.

OPTiMOHMr

Copper and aluminum wires account for over 50% of the cost of cables. The Group identifies the best internal practices in order to optimize their design and production.

SUPPLYe

Purchasers identify the most competitive countries by product family in order to qualify new suppliers in these countries.

11 I Nexans, 2014 Overview

Ambitious goals and shared values

Working at Nexans means sharing the values and ambition of a Group that develops its employees’ talents.

Our people, their talent and their commitment make the difference. To enable all employees to achieve their potential by contributing to the Group’s strategy, Nexans harmonizes its evaluation and human resources management processes, strengthens its planning management, promotes mobility, invests in training, and focuses on attracting and retaining talent.

Competency models for managersCompetency models for managers and for each business have been used to enhance employees’ leadership skills and professional qualifications. They are used for the hiring, training and development of employees.

valuesSix values underpin Nexans’ corporate culture. The ability to embody these values in order to serve the Group’s strategic objectives is at the core of the performance management system.

Annual performance reviews should allow employees to talk to their managers about achieving objectives, their competencies, their career development, their training needs and the objectives for the coming year.

UniversityAs the Group’s central learning body, Nexans University enhances skills in all spheres critical to Nexans’ success and develops employees’ ability to work together.

MotivationProfit-sharing and employee share ownership, Nexans uses all means to encourage employees to perform well and involve them in achieving goals.

Nexans, 2014 Overview I 12

Nexans University recognized in 2013 Nexans University ranks among the top 3 most innovative corporate universities in the World, according to the Global Council of Corporate Universities, for its «simple and smart tools.» 12 academies, 450 instructors and course designers, 100 training courses in 10 languages. Over 6,000 employees received training in 2013.

internal promotionNexans’ goal is to fill 80% of positions through internal promotion. This involves identifying talent and devising succession plans for the main managers in each country.

Apprenticeships, work-study placements, internshipsNexans actively contributes to the training of young people worldwide and draws on support from seniors through mentoring and tutoring.

employee share ownershipEmployee shareholders hold 3% of the Group capital through the employee share ownership plans offered in 24 countries. Nexans’ Board of Directors has an employee shareholder.

13 I Nexans, 2014 Overview

Responsible growthNexans and its teams are committed to offering solutions that promote energy efficiency and achieving sustainable business performance.

As part of its policy of continuous improvement and innovation, Nexans strives to improve the energy efficiency of its solutions, optimize the use of natural resources and reduce the environmental footprint of its operations as much as possible.Using eco-friendly design, Nexans develops products that both meet customers’ needs and have a lesser impact on the environment throughout their life cycle.

Sustainable solutionsNexans provides solutions that can enhance the safety of people and equipment, improve energy efficiency and CO2 emissions,

facilitate the expansion of renewable energies, reduce environmental disruption, and safeguard both landscapes and marine life.

The Group is a recycling pioneer and, with Sita (a Suez Environnement subsidiary), has created a complete solution to recycle sheaths and metals from end-of-life cables.

responsible purchasingThe Group focuses on purchasing products and services that are more environmentally friendly, particularly for packaging and transport. Nexans’ suppliers are involved in this socially responsible approach.

The Nexans FoundationCreated in 2013, the Nexans Foundation provides a shared framework for the initiatives carried out by the Group’s entities worldwide and underscores its long-term commitment.It supports projects organized by NGOs to reduce precarious living conditions and energy poverty in France and in the rest of the world.

www.fondationnexans.com

63 ISO 14001 certified plants

93% of cable production waste recovered and recycled in 2013

12 projects receive support from the Nexans Foundation

Nexans, 2014 Overview I 14

Green drums Nexans offers its customers an environmentally friendly solution for wooden drums that saves more than 100,000 trees every year. Nearly 300,000 drums have already been reused 1 to 5 times. This solution also allows customers to save storage space.

Product environmental profileMore than 1,000 Nexans products have a PEP ecopassport that provides information on their environmental profile. In addition, the EcoCalculator can be used online to select the most cost-effective and sustainable solution for a specific building application.

Safe, sustainable buildingsNexans is the first cable manufacturer certified by the Singapore Green Building Council, which serves as a benchmark in Southeast Asia.

The Nexans Foundation supports a project led by the

French non-profit organization Un Enfant Par La Main, enabling

277 primary school students from Blengoua and Gonido in Mali to do their homework in

the evening by providing solar power to their schools.

North America• 14% of Group sales(2)

• 3 138 employees• 3 countries with

manufacturing sites

South America• 9% of Group sales(2)

• 2,136 employees• 5 countries with

manufacturing sites

europe• 57% of Group sales(2)

• 14,679 employees• 18 countries with

manufacturing sites

Middle east, russia and Africa• 6% of Group sales(2)

• 3,135 employees• 11 countries with

manufacturing sites

Asia-Pacific• 14% of Group sales(2)

• 2 755 employees• 5 countries with

manufacturing sites

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

Transmission, Distribution & Operators

Industry

Other

(1) At constant non-ferrous metal prices.

SALES, EMpLOYEES ANd MANuFACTuRING SITES

BY GEOGRAphIC AREA

8, rue du Général Foy - 75008 Paris - France - Tel. : + 33 (0)1 73 23 84 00

www.nexans.com Published by Nexans – Communications Department – February 2014

Photographs and graphic design: Nexans, BØRNEfonden Mali, S. Dolidon, Fotolia, Getty, T. Gracchus, P. Kosmider, M. Labelle, M. Xavier, ZanArtphoto, All rights reserved.

Institutional Investors: 88,4% of which:• Quiñenco Group (Chile): 26,6%

• Manning & Napier (United States): 7,9%• Bpifrance (France): 7,8%

Unidentified shareholders: 1,6%

Individual shareholders and employees: 10% of which:• Individual shareholders: 7%• Employee shareholders: 3%

SALES BY BuSINESS(1)

25%

6%

43%

26%

OWNERShIp STRuCTuRE

(AT dECEMBER 31, 2013)

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