Nexans S.A.

Good morning and welcome to Nexon's nine month 2025 financial information conference call. My name is Laura and I will be a coordinator on today's event. Throughout today's recorded presentation, all participants will be in the listener remote. Later, we will open up the call for questions. You may register for the questions at any time by pressing star one. And we kindly ask you to limit the number of your questions to one to two questions per person. And now, I'd like to hand the call over to Mr. Julian Hubert, Nexans CEO. Please go ahead, sir.

So, good morning, everyone, and thank you for joining us today on the Nexans conference call. It's a special moment for me to be speaking with you for the first time as the CEO of Nexans. With me today, I have Christine Prevolezzi, our Interim CFO, and Audrey Bourgeois, our VP, Investor Relations. I would like to begin by thanking the Board of Directors for their confidence. It's an honor to take this role and to lead a strong, high-performing company with a clear vision for our future. I also want to express my appreciation to Christopher Guerin for his leadership and the remarkable transformation he has led, a transformation I was proud to have drive as part of the Executive Committee. Chris leaves behind a strong company built on solid foundation that will keep strengthening. I spent more than two decades at Nexense, always close to operations and transformation. From my early years in manufacturing to leading our activities in China, South Korea, or globally for the industry solution project, I've seen how performance is built on operational excellence, flow-wise execution, and a deep understanding of our customers. As a member of the Executive Committee since 2018, I helped shape a growth strategy on the capital markets roadmap. Leading our €2.6 billion of power grid on Connect in Europe business reinforced my conviction that agility, execution and industrial excellence are the levels that will be key to an excellent next chapter. Our strategy remains unchanged, and the megatrends behind it have never been so strong. Electrification is accelerating and the need for secure modern infrastructure keeps growing. These dynamics reinforce next-gen positioning on long-term strategy. As a new CEO, I want to be very clear, we will continue to execute the roadmap presented at the last Capital Market Day, and we confirm our 2025 guidance on 2028 objectives as well. The direction is right. and the foundations are solid, and all megatrends are continuing. The environment, however, has grown more complex since our last Captain Market Day, from geopolitics, supply chains, disruption, or shifting policy environments around energy and renewable. This makes one thing clear. It is the right time to make next steps even stronger, stronger in execution, stronger in competitiveness, and stronger in agility. I will continue to fuel our model of value creation that delivers results, combining our shift program, complexity reduction, innovation deployment, and vertical developments. But building on that, I will also move forward and I will emphasize even more on further complexity reduction of the organization. efficiency optimization of our industrial operations, both in terms of productivity and cost competitiveness, further mutualization of our industrial footprint, and of course, keeping absolute discipline on cost and cash. All these priorities will further enhance the resilience of Nexon's model. Our ambition is clear to consolidate Nexon's competitiveness while amplifying selective profitable growth in electrification powered by digital acceleration on the smart use of new technologies and artificial intelligence. Nexense is entering this new phase from a position of real strength. We have a clear roadmap, robust financial foundations, and teams that are talented, dedicated, and united and proud of what we do. Together, we will deliver with strong discipline and focus the long-term value creation for all our stakeholders. So, after this introduction, let me now turn to the growth performance in Q3 on the first nine months of 2025 on page 4. In the third quarter, the group delivered a plus 7.7 organic growth, including a strong 12.6% in electrification. Over the first nine months of 2025, the group's standard cell reached 5.3 billion euros, representing a plus 5.8% organic growth compared to last year. Over the same period, electrification, which remains the core of Nexon's growth, recorded a plus 9.4% organic growth, confirming our disciplined execution across our three segments, which are transmission, grid, and connect. Our transmission-adjusted backlog reached €7.9 billion at the end of September, providing for Nexon's strong visibility for the coming years. No later than today, I am pleased to announce the acquisition of ElectroCable in Canada that will be reinforcing Nexon's position in PowerConnect in a highly dynamic market and with approximately €125 million current sales on a yearly basis. And I will come back on that on the next slide. In short, the first nine months concern the solid and disciplined growth of electrification businesses. This performance reflects our sharp focus on high added value solution and our selective approach to capture the strong underlying trends in electrification. So before we move to our segment in details, I wanted to highlight something that is important to me. I will move to slide five. Our innovation summit in Toronto that took place two weeks ago was a great platform for exchange with our platinum customers, our technology experts, and our partners. Nexon is becoming a pure player of electrification, so I believe that our role is to bring together the key stakeholders of the electrification ecosystem to imagine and to build collectively the next level of electrification that is critical to our societies, from powering homes and hospitals to supporting education and many other essential services. The choice of holding this event in Canada reflects our strong interest in North America. Canada is a powerful growth platform for Nexense, both for the grid and the robustness of its construction industry in our connector segment. So talking about Canada, I will now move to page 6 where I will present the acquisition of ElectroCable that was signed today, this morning in fact. ElectroCable is a Canadian player in low voltage cable system, delivering a high performance on service focused solution. This company represents a strong strategic complement to an excellence Canadian portfolio, offering an attractive growth perspective on a robust profitability profile. This acquisition also allows Nexon to further strengthen and complement its portfolio in Canada, enhancing its position in a very dynamic market while optimizing local supply chain efficiency. It also paves the way for valuable synergies driven by Nexon's expanded local presence and the rollout of its proven property shift program while enhancing innovation. This acquisition will be fully financed in cash, leveraging an excellent strong balance sheet, and is expected to be EPS accredited from day one and from year one. Now moving to page seven, let me now comment the overall growth performance over the first nine months of 2025. Standard sales reached 5.3 billion euros, representing a plus 5.8% of organic growth, confirming a solid trajectory for the group. The growth continues to be driven by electrification business, which make up the core of Nexon's strategy. It delivers a plus 9.4% organic growth over the period. Let me remind you that this is well above our Captain Market organic growth that we have announced last November of a CAGR between plus 3% and plus 5%. This performance reflects the disciplined execution in transmission and in-grid, as well as the recovery in CONNECT during this third quarter. Other activities, mainly metallurgy, a strategic segment for Nexon, posted a plus 4.1 organic growth over the first nine months of this year. And as you know, we observed unusually high level of external cells in H1, That was driven by customer bringing forward orders ahead of the US tariff. As expected, this overstocking subsequently led to correction in Q3 2025. The non electrification activity declined by minus 6% as expected. Given the challenging automotive market. We remain very active to make this disposal of the last remaining activity to finalize our portfolio rotation. So overall, the group growth is at a high level and fueled by healthy growth drivers in electrification, which remains our main engine of value creation.

So let's now take a closer look at our different segments, starting with transmission on page 8.