(AOF) – Nexans, a leader in the design and manufacture of cable systems and services, is launching a new range of high voltage cables for the aeronautics industry. With higher efficiency than the previous generation, these cables mark a decisive step towards the objective of carbon neutrality for this sector by 2050.
Previewed at the International Aeronautics and Space Show (SIAE) at Paris-Le Bourget, these new high-voltage cables designed by Nexans for electric and hybrid aircraft, as well as for take-off and vertical landing (e-VTOL), meet the requirements of the aeronautical industry in terms of reducing its carbon footprint but also the agenda of the French government and the European Commission concerning the development of an innovative solution for the integration of electric and hybrid motors in aeronautics.
Twenty times more efficient than typical aircraft cables, Nexans high voltage cables can be used from 600 to 6000 V (AC or DC or PWM), whereas standard voltages in aircraft are between 28 V (DC) and 115 V or 230 V (AC).
They offer higher power density (power-to-weight ratio), thanks to a patented structure of extruded sandwich-extruded semiconductor and high-resistivity layers.
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Key points
– Group created in 1901 specializing in cables for electrification;
– Turnover of €6.1 billion achieved at 13% in energy production and transmission, 16% in distribution, 27% in building, 23% in industry and solutions and 5% in telecoms and data;
– Breakdown of sales at 45% in Europe, 31% in the Americas, 14% in Asia Pacific and 8% in the Middle East, Africa and Russia;
– “Electrify the future” business model centered on the electrification value chain, from energy production to transmission, distribution and consumption, favoring growth in value and premiumization of offers;
– Split capital with 3 strong positions – the Chilean Invexans Pack for 28.8%, BPI France for 7.69% and the employees for 6.3%-, Jean Mouton chairing the 14-member board of directors, Christopher Guérin being general director ;
– Very healthy financial situation, soon to be further strengthened by the sale of the Telecom Systems business, with a debt of €182 million, on the raised note.
Challenges
– Strategic ambition 2022-24 “Winds of change”:
– concentration on 4 sectors and reorientation of the portfolio towards electrification,
– €200 million investment in submarine high voltage by 2023 in Norway and the United States,
– deployment of the SHIFT Performance program
– financial objectives: €6 to 7 billion in turnover and operating margin between 10 and 12%;
Dynamic innovation strategy with €100 million invested in the 15 R&D centers (1,800 patents, 75 filed in 2022):
– at the service of customers and partners: intensification of the Platinum program, 540,000 users connected to digital platforms and services, such as ULTRACKER,
– launch of AmpaCity, a global innovation hub dedicated to low-carbon electrification.
– internally, efficiency and intelligence: eco-design approach, Plug & Play cabling, use of digital twins to increase the return on assets and limit working capital requirements;
– 2030 environmental strategy validated by the SBTi and accelerated in 2022:
– 46.2% reduction in scope 1 and 2 CO2 emissions of 46.2% vs 2019 and 24% by 2030 for those emitted in scope 3 (suppliers),
– intermediate objectives for 2023: certification of industrial sites at 93%, 70 to 80% of sales of products contributing to the energy transition and 80% of connected and recyclable cables,
– full deployment of the E3 tool (Economy, Environment, Commitment) for measuring performance;
– Advances in electrification offers with the acquisitions of Colombian cable and cable manufacturers Centelsa and REKA;
– Good start for the cable ship Aurora and the American cable factory and increase in the order book to €3.5 billion in power transmission and production.
Challenges
– Diversity of profitability between branches, buildings & territories being the lowest margins;
– Inflation, in particular of the price of copper, offset by the SHIFT Performance and Prime and Amplify plans and the increases in selling prices;
– Shortage of semiconductors and raw materials: launch of Ultracker, a set of solutions for supply chains;
– After a 6.3% increase in revenues, 2023 target of operating income of between €570 and €630 million, and cash generation of between €150 and €250 million;
– Dividend of €2.1 up 75% and share buyback.
The Threat of Open Technology, RAN
Equipment manufacturers will have to face this threat in the next few years. This new architecture consists in replacing the traditional antennas by software allowing more interoperability thanks to the cloud. Telecom operators will thus be able to reinforce innovation and increase their choice of suppliers. They will also be able to have access to more services and flexibility for network deployment and management costs which should decrease. For the moment, none of the major operators has switched to this new technology. Nevertheless, the freedom of choice of suppliers is a decisive element, underlined by the decision of Europe and the United States to sanction the Chinese Huawei for national security reasons.