Nexans — Earnings Release 2023

Apr 26, 2023

VALUE-DRIVEN GROWTH MODEL SETS STRONG FOUNDATION FOR THE YEAR

• First-quarter 2023 standard sales of 1,674 million euros, up +2.2% organically year-on-year and +6.5% excluding Other activities
• Distribution segment benefiting from expanding grid investments in Europe and North America and renewable energy projects more globally
• Accelerating innovation and deployment of solutions: +100% growth in Connected Objects and 40 million euros investment in Autun plant for Fire Safety Technology
• Healthy adjusted backlog¹ for Generation & Transmission at 3.2 billion euros, up +32% compared to March 2022 with unique risk-reward model
• 2023 guidance confirmed underpinned by strategic focus on value-driven growth and Nexans' transformation platform
• Step-up in Electrification Pure Player strategic roadmap:
  • o Exclusive negotiations to divest Telecom Systems
  • o Antitrust clearance obtained for Reka Cables acquisition in Finland closing of the transaction imminent
• Revised S&P outlook from Stable to Positive, with BB+ rating confirmed

Paris, April 26th , 2023 – Today, Nexans published its financial information for the first quarter of 2023.

Commenting on the Group's performance, Christopher Guérin, Nexans' Chief Executive Officer, said:

"We continued our momentum from a successful 2022 and began 2023 with a strong start. Our success can be attributed to our strategic approach that combines value-driven growth with a focus on our key customers.

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We are proud to announce that our recent innovations and solutions have led to exceptional development, with a growth rate of over 100% in Connected Objects in just one quarter. Furthermore, we are investing 40 million euros in our Autun plant in France over the next three years to accelerate the deployment of our Fire Safety technology.

We are continuing to pursue our strategy of inorganic regional growth in the Electrification market, with the Reka Cables acquisition in Finland to be finalized imminently. We actively work towards a safer and more sustainable world by applying our E3 performance model of economics, engagement, and the environment to all of our business decisions.

We are confident that we will achieve our 2023 financial objectives thanks to a resilient electrification tailwind and our proven ability to execute on our commitments, even in uncertain times."

¹ Pro forma adjusted backlog, including Special Telecom.

CONSOLIDATED SALES BY SEGMENT

(in millions of euros) At standard metal prices Copper reference at €5,000/t	2 Q1 2022	Q1 2023	Organic growth Q1 2023 vs. Q1 2022	Sequential growth Q1 2023 vs. Q4 2022
Electrification	927	942	-0.1%	-1.3%
Generation & Transmission	246	200	-10.7%	-25.8%
Distribution	242	277	+7.1%	+10.5%
Usages	439	465	+1.5%	+6.9%
Non-electrification (Industry & Solutions)	367	449	+22.3%	+14.3%
Total Group (excl. Other activities)	1,294	1,391	+6.5%	+3.2%
Other activities	329	282	-14.4%	-13.2%
Total Group	1,623	1,674	+2.2%	+0.0%

I. Q1 2023 HIGHLIGHTS

In the first quarter of 2023, sales at standard metal prices amounted to at 1,674 million euros, up +2.2% organically compared to the first quarter of 2022 and up +6.5% excluding Other activities. This value-driven growth reflected positive mix/price management and value-added solutions.

Electrification sales were flat organically reflecting accelerating value growth in the Distribution and Usages segments, offset by a lower contribution from Generation and Transmission, primarily due to the impact of the progressive shutdown of the Umbilical business.

Non-electrification sales (Industry & Solutions) were up +22.3% organically, benefitting from strong momentum in Automotive harnesses. Within the Other activities segment, the Metallurgy business continued to be downsized in accordance with the Group's strategy.

In the first quarter of 2023, Nexans continued to focus on accelerating the development and scaling up innovative products, services and solutions for its customers. During the period, the Group made significant progress in Services with more than 60,000 connected objects (+100% compared to December 2022).

S&P's outlook for Nexans' long-term rating of 'BB+' revised from stable to positive, reflecting the continued improvement of the Group's balance sheet, further strengthened by the successful issuance of its first euro Sustainability-Linked Bond for an aggregate nominal amount of 400 million euros.

Continued deployment of Nexans' Electrification Pure Player strategic roadmap

Nexans is continuing to pursue its strategy of inorganic growth in Electrification markets, as demonstrated by its recent announcement of its intension to acquire Reka Cables, a Finland-based specialist in Distribution and Usages. In 2022, Reka Cables had sales of 172 million euros, EBITDA of 11 million euros and a workforce of 270 people. The Finnish antitrust authorities now has cleared the transaction, and the closing date is imminent.

Furthermore, in line with its plan to divest all its non-electrification operations, Nexans has recently entered into exclusive negotiations with Syntagma Capital, a private equity firm headquartered in Belgium, for the sale of its Telecom Systems activity (sales of approximately 180 million euros in 2022). This proposed transaction, once closed, will seal Nexans' exit from the Telecom Infrastructure and LAN cables and Systems businesses. The Special Telecom activity is now an integral part of Generation & Transmission division as increasingly more subsea high voltage projects require telecom fibers within the energy transmission cable. As a result, the Group no longer has a Telecom & Data reporting segment.

² Pro forma sales at standard non-ferrous metal prices. The detailed impact of changes is set out in the appendix to this press release.

II. Q1 2023 SALES PER BUSINESS GROUP

To reflect the proposed sale of the Telecom Systems business, the Group has now halted reporting on its "Telecom & Data" business segment. Sales for the former "Telecom & Data" segment have been allocated to the following other segments:

• The "Generation & Transmission" segment includes the "Special telecom (Subsea)" subsegment of Telecom & Data, as its operations are closely linked to subsea high voltage projects.
• The "Other activities" segment includes the remaining part of the "Telecom & Data" business segment, notably the Telecom Systems sub-business which is scheduled for sale.
• No material impacts in the "Distribution", "Usages", and "Industry & Solutions" segments.

ELECTRIFICATION BUSINESSES: -0.1% ORGANIC GROWTH IN Q1 2023

| GENERATION & TRANSMISSION: -10.7% in Q1 2023 reflecting the exit of the Umbilical activity

Generation & Transmission sales were down -10.7% in the first quarter of 2023 compared to the same period of 2022 reflecting the strategic decision to exit the Umbilical activity offsetting the ramp-up of Charleston plant in the United States. The contribution of Special Telecom to the segment was 19 million euros in the first quarter of 2023, down -17.1% compared to first quarter 2022.

During the period, the largest contributors to sales were the Moray West project, the Attica-Crete project, and the Tyrrhenian Links turnkey project. In addition, the South Fork Wind cable supply contract in the United States made a significant contribution.

The adjusted backlog stood at 3.2 billion euros at the end of March 2023, up +32% compared to March 2022, providing sound long-term visibility. The Halden, Norway, and Charleston, United States, plants are fully loaded for 2023 and Halden plant expansion is on track. In a booming market, tendering activity remains strong, benefitting the Charleston facility as the unique U.S.-based High Voltage Subsea Cable manufacturing facility.

| DISTRIBUTION: +7.1% organic growth in Q1 2023 fueled by structural market trends

Distribution sales amounted to 277 million euros at standard metal prices in first quarter 2023, of which 20 million euros was contributed by Centelsa. The segment recorded +7.1% organic sales growth compared to the same period of 2022, and period-on-period growth of +10.5%. The segment's performance was once again largely influenced by increases in (i) grid investments to accommodate urbanization and renovation trends, particularly in Europe and North America, and (ii) renewable energy projects.

In the first quarter of 2023, Nexans remained focused on deploying value-added solutions aimed at improving the overall customer experience. Notably, the Group (i) recorded over 60,000 connected objects (+ 100% compared to December 2022) through its ULTRACKER digital services, and (ii) adopted Authentic Vision Meta-Anchor™ technology to secure Nexans products and fight against illicit trade.

The quarterly trends by geography were as follows:

• Europe surged by +10.5% thanks to contract renewals and sustained demand from utilities to enhance and strengthen grid infrastructure. The Nordic countries demonstrated robust organic growth compared to the same period of 2022.
• South America saw an uptick in sales of +1.7% in first quarter 2023, primarily fueled by the solid growth in Columbia and Peru driven by renewable projects, and despite a slowdown in Brazil.
• Asia Pacific experienced a sales decline of -9% during the quarter, primarily in China due to softer than expected recovery, despite strong demand in Australia.
• North America sales were up by +9% thanks to continued thriving market conditions.
• Middle East and Africa sales were up +12.5%, primarily driven by the continued recovery in Lebanon, notably in solar.

| USAGES: +1.5% in Q1 2023 reflecting selective approach on growth driven by value

Usages sales amounted to 465 million euros at standard metal prices in first quarter 2023, of which 39 million euros was contributed by Centelsa. Organic growth was +1.5% compared with first quarter 2022,

mainly driven by value reflecting (i) Nexans' selective approach, (ii) pricing and mix initiatives, and (iii) sustained demand. Moreover, the segment reported +6.9% period-on-period growth compared to the fourth quarter of 2022.

The Group is expanding its range of solutions for clients by introducing new packaging solutions through the MOBIWAY MOB drum kit, and also providing a comprehensive fire safety offering to electrify the future in a safer way for people and assets.

Quarterly trends by geography were as follows:

• Europe sales grew +3.6% in first quarter 2023 compared to first quarter 2022. Solid demand, coupled with the introduction of new products and enhanced solutions, as well as consistent mix and pricing strategies, contributed to the sales growth of the region.
• South America sales were down -4.9% organically during the quarter, mainly affected by macroeconomic headwinds in Chile. Centelsa performed well with integration progressing ahead of schedule.
• Asia Pacific sales edged up +0.3% in first quarter 2023 compared to first quarter 2022.
• North America normalized, down -18.7% compared to first quarter 2022, but with sales still well above the level seen in the prior years. Pricing remained favorable and provided continued tailwinds.
• Middle East and Africa region experienced a substantial sales increase of +24.7%, driven by consistent growth in West Africa and Morocco, along with a solid performance in Turkey.

NON-ELECTRIFICATION BUSINESSES: +22.3% ORGANIC GROWTH IN Q1 2023 THANKS TO STRONG MOMENTUM

Industry & Solutions segment sales amounted to 449 million euros at standard metal prices in the first quarter of 2023, up +22.3% organically year-on-year, mainly driven by sustained and strong demand in the Auto-harnesses and Automation businesses.

Automation business posted outstanding growth, with sales up +26.2% year-on-year. Mining sector continued to see strong momentum (sales up +26.6% year-on-year). Mobility sales rose by +22.2% yearon-year, driven by the recovery of the aerospace industry and high demand in shipbuilding, following two years of low investments during the Covid pandemic.

Automotive harnesses business experienced a significant increase in sales, with year-on-year growth of +23.5%, in the first quarter of 2023. The strong momentum was driven by market share gains, ramp-up effects of projects and a positive base effect resulting from the Ukrainian crisis in the first quarter of 2022.

OTHER ACTIVITIES: -14.4% ORGANIC GROWTH IN Q1 2023 IN LINE WITH THE DOWSIZING OF METALLURGY ASSET

Other activities segment sales amounted to 282 million euros at standard metal prices in the first quarter of 2023, down -14.4% organically year-on-year.

Metallurgy sales – corresponding for the most part to copper wire sales– were down -14.3% year-on-year, in line with Nexans' strategy to scale down external copper sales and increase tolling agreements.

Telecom – corresponding for the most part to cables, components and accessories used to deploy Telecom Infrastructure Networks – reported a -1.3% year-on-year sales decrease, reflecting a segment mix impact. The main portion of this sub-segment is part of the exclusive negotiations for the sale of the Telecom Systems activity.

III. SIGNIFICANT EVENTS SINCE THE END OF MARCH

April 5 – Invexans Limited completed the market sale of 4.2 million shares of Nexans, in a transaction valued at 367 million dollars. Invexans Limited and its related companies will remain reference shareholders of Nexans with an interest of 19.2% and with an active representation on Nexans' Board of Directors.

April 5 – Nexans announced the successful issuance of its inaugural euro Sustainability-Linked Bond for an aggregate nominal amount of 400 million euros with a 5-year maturity and an annual interest rate of 5.50%.

April 12 – Nexans, HEC Paris and the HEC Foundation have launched the "Orchestrating sustainable business transformation" chair to support companies on their journey to greater sustainability.

April 17 – Swissgrid selected Nexans for the 25 million euros project for burying the Very High Voltage overhead power lines along the southern side of the Geneva-Cointrin airport.

IV. 2023 OUTLOOK

Nexans is confident in its capacity to sustain and improve its performance momentum within a geopolitical and economic environment which remains uncertain. The Group will continue to prioritize value growth over volume in its strategy, unleashing profits from its unique transformation platform to convert conjunctural growth into structural growth, while investing in the growing Generation & Transmission markets. Additionally, Nexans is only at the initial stages of its premiumization journey, with the development of value-added systems and solutions for its end-users.

In this context, Nexans confirms its targets for 2023, excluding non-closed acquisitions and divestments:

• o EBITDA between 570 and 630 million euros;
• o Normalized Free Cash Flow between 150 and 250 million euros.

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A webcast is scheduled today at 9:00 a.m. CET. Please find below the access details:

Webcast

https://channel.royalcast.com/landingpage/nexans/20230426\_1/

Audio dial-in

• International switchboard: +44 (0) 33 0551 0200
• France: +33 (0) 1 70 37 71 66
• United Kingdom: +44 (0) 33 0551 0200
• United States: +1 786 697 3501

Confirmation code: Nexans

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Financial calendar

May 11, 2023:	Annual Shareholders' Meeting
May 15, 2023:	Dividend – Ex date
May 16, 2023:	Dividend – Record date
May 17, 2023:	Dividend – Payment date
July 26, 2023:	Fist-half 2023 results

Appendices

Group total sales breakdown (in millions of euros)

	First-quarter
	2022 reported	2022 proforma	2023
Sales at current non-ferrous metal prices by segment
Generation & Transmission	229	253	206
Distribution	292	294	323
Usages	611	611	619
Industry & Solutions	405	405	484
Telecom & Data	89	-	-
Other activities	438	503	402
Group total	2,065	2,065	2,035
Sales at standard non-ferrous metal prices by segment Copper standard of €5,000/t
Generation & Transmission	222	246	200
Distribution	241	242	277
Usages	439	439	465
Industry & Solutions	367	367	449
Telecom & Data	86	-	-
Other activities	267	329	282
Group total	1,623	1,623	1,674

Impact of changes in the scope of consolidation and exchange rates on sales at standard nonferrous metal prices

Copper standard of €5,000/t

	First quarter 2022 reported	Allocation changes	First quarter 2022 pro forma	Scope	Currency effect	Organic growth	First quarter 2023
Generation & Transmission	222	23	246	-	(22)	(24)	200
Distribution	241	1	242	20	(2)	17	277
Usages	439	-	439	35	(15)	6	465
Industry & Solutions	367	-	367	-	-	82	449
Telecom & Data	86	(86)	-	-	-	-	-
Other activities	267	61	329	5	(4)	(47)	282
Group total	1,623	-	1,623	60	(43)	34	1,674

Glossary

Adjusted Generation & Transmission backlog: backlog adjusted for secured but not yet implemented Subsea, Land and Special Telecom contracts.

Electrification: the electrification of an area is the connection of that place to an electricity supply. For Nexans, the electrification value chain covers the Generation & Transmission, Distribution and Usages segments.

Normalized Free Cash Flow (NFCF): NFCF is calculated as FCF excluding strategic capex, disposal proceeds of property, plant and equipment, impact of material activity closures and assuming project tax cash-out based on completion rate rather than termination.

Organic growth: standard sales growth as a percentage of prior‑year standard sales. Organic growth is a measure of growth excluding the impact of changes in the scope of consolidation and changes in exchange rates.

Sales at constant/Standard metal prices: sales figures based on a standard price for copper and aluminum in order to neutralize the effect of fluctuations in non‑ferrous metal prices and therefore measures the underlying sales trend. Starting on January 1, 2020, these references are set at 5,000 euros per metric ton for copper and 1,200 euros per metric ton for aluminum, and are then converted into the currencies of each unit.

Sales at current metal prices: net sales (at current metal prices) represent revenue from sales of goods held for resale, as well as sales of goods and services deriving from the Group's main activities, for which consideration has been promised in contracts drawn up with customers.

Strategic capex: strategic capex corresponds to the investments in the Halden , Norway, and Charleston, United States, plants in the Generation & Transmission segment, announced at the Capital Markets Day on February 17, 2021.

About Nexans

For over a century, Nexans has played a crucial role in the electrification of the planet and is committed to electrifying the future. With around 28,000 people in 42 countries, the Group is leading the charge to the new world of electrification: safe, sustainable, renewable, decarbonized and accessible to everyone. In 2022, Nexans generated 6.7 billion euros in standard sales. The Group is a leader in the design and manufacturing of cable systems and services across four main business areas: Generation & Transmission, Distribution, Usages, and Industry & Solutions. Nexans was the first company in its industry to create a Foundation supporting sustainable initiatives bringing access to energy to disadvantaged communities worldwide. The Group pledged to contribute to carbon neutrality by 2030.

Nexans. Electrify the future.

Nexans is listed on Euronext Paris, compartment A. For more information, please visit www.nexans.com

Contacts:

Investor relations Elodie Robbe-Mouillot elodie.robbe-mouillot@nexans.com Communication Emmanuel Guinot emmanuel.guinot@nexans.com

NB: Any discrepancies are due to rounding

This press release 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.

Readers are invited to visit the Group's website where they can view and download the 2022 Universal Registration Document, which includes a description of the Group's risk factors.