News

• Cable business sales down 8.3% in the first quarter of 2009 despite the positive impact of the Group’s geographic redeployment into high growth areas.
• Group’s net debt reduced by one third, that is $NZ408 million dollars, compared with its level at December 31, 2008.

Paris, April 22, 2009 – Nexans today announced 2009 first-quarter sales of $NZ2,901 million dollars.  At constant non-ferrous metal prices* and consolidation scope, the quarter’s sales stood at $NZ2,430 million dollars, down 8.3% for Cable business compared with the good first quarter 2008 (down 9.9% when including electrical wires).

• In a difficult global economic climate, the Group benefited from the good performance of its new activities in South America following the acquisition in September 2008 of the Madeco group’s cable business.
• At a comparable scope and exchange rate, cable business sales were down 14.6%** because of the sharp fall in economic activity (and particularly in January) both in Europe and North America. This contraction is in line with the trend observed in the fourth quarter of 2008.
• As expected, Energy Infrastructures withstood the current conditions better than the other segments in the first quarter of 2009.
• The areas where the Group has invested heavily in the past three years are evolving more favorably with sales holding steady in the Asia-Pacific and MERA (Middle East-Russia-Africa) areas.
• The difference between the current scope (-8.3%) and the constant scope (-14.6%) confirms the Group’s acquisitions policy which aims at establishing positions in growth areas.

Confronted with a worse than expected deterioration in its historical scope, the Group considerably stepped up its restructuring actions, one of which is now complete in Canada (low and medium voltage), as well as in Romania and the Czech Republic (cables and harnesses for the automotive industry). In this respect, nearly 900 employees are expected to leave the Group. Furthermore, a project to close the Building Cable business in Germany has been announced, with 160 employees concerned. Finally, projects for additional reorganizations, mostly in Europe, and site specialization are being examined.

The Group has continued to focus on generating cash flow and as a result is able to report a further sharp reduction in its net financial debt down from $NZ1,249 million dollars at December 31, 2008 to $NZ843 million dollars at March 31, 2009.

Outlook

Despite a difficult economic context accentuated by seasonal effects attributable to climate conditions and the deferred billing due to delays in certain high voltage projects, the Group remains focused on its internal year-end objective of 6% operating margin, factoring in the measures already committed and the satisfactory performance of its South American business.

* To neutralize the effect of variations in the purchase price of non-ferrous metals and thus measure the underlying sales trend, Nexans also calculates its sales using a constant price for copper and aluminum.

** 2008 sales on the basis of comparable data correspond to constant metal sales, recalculated after adjustments for comparable scope and exchange rates. The exchange effect on sales at constant non-ferrous metal prices amounts to a negative $NZ79 million dollars, while the comparable scope effect amounts to a negative $NZ35 million dollars.

*** Estimated growth for Industry excluding automotive cables and harnesses.

Note: All figures have been converted from Euro to New Zealand Dollars at a rate of 2.33.