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Revenue Exceed RMB30.9 Billion with R&D Expenditure RMB3.9 Billion

Continuing to Consolidate its Dominant Position In The fields of Breast Cancer and Lung Cancer

SHANGHAI, Oct. 29, 2024 /PRNewswire/ — On October 29, Shanghai Fosun Pharmaceutical (Group) Co., Ltd. (“Fosun Pharma” or “the Group”; Stock Code: 600196.SH; 02196.HK), announced its operating performance for the first three quarters of 2024. From January to September 2024, Fosun Pharma achieved revenue of RMB30.91 billion, an increase of about 5.74% YoY after excluding COVID-related products. The net profit attributable to owners of the parent of the Group after deducting extraordinary gain or loss amounted to RMB1.84 billion, up by 24.58% YoY.

In 2024, Fosun Pharma will further focus on innovative drugs and high-value devices, and continue to promote lean operations, cost reduction, efficiency improvement, and asset rationalization to optimize assets and financial structure, actively promote supply chain management and operational efficiency, and achieve healthy operating cash flow. In the first three quarters of 2024, the net cash flow from operating activities of Fosun Pharma was RMB2.99 billion, a year-on-year increase of 21.33%; the management expense ratio decreased by 0.15 percentage points YoY; excluding the impact of newly acquired companies, management expenses decreased by approximately RMB300 million on the same basis.

Focusing on advantageous therapeutic areas with innovative R&D pipelines continue to advance

In terms of innovative R&D, Fosun Pharma continues to focus on advantageous pipelines to achieve efficient results and continuous implementation of innovative products. In the first three quarters of 2024, Fosun Pharma’s R&D expenditure totaled RMB3.92 billion. In particular, R&D expenses were RMB2.65 billion. In addition to independent R&D, the Group fully implemented an open R&D model, and incubated and invested in R&D projects by initiating/managing industrial funds and other diversified ways, so as to ensure the sustainability of innovation and R&D.

Fosun Pharma’s innovative drug business mainly covers the core therapeutic areas of solid tumors, hematological tumors and immuno-inflammatory diseases, with emphasis on the enhancement of the core technology platforms of antibody/ADCs, cellular therapy and small molecules, to create an open and global innovative R&D system, continuously enhance pipeline value, and promote the development and commercialization of its products.

In the field of tumor immunotherapy, on September 13, 2024, Fosun Pharma announced it will acquire the 50% stake in Fosun Kite and will wholly own Fosun Kite (now renamed as “Fosun Kairos”). In the future, Fosun Kairos will serve as the core platform of Fosun Pharma’s cell therapy, continue to focus on the field of tumor immunotherapy, as well as to promote the development and commercialization of existing licensed products, Axi-Cel (i.e. Fosun Kite’s marketed product “Yi Kai Da”) and Brexu-Cel (i.e. Fosun Kite’s pipeline project FKC889), in Chinese mainland, Hong Kong SAR and Macau SAR with Kite Pharma.

In the third quarter of 2024, Fosun Pharma’s multiple independently developed innovative products and pipeline clinical trial results were announced in industry conferences and journals, further consolidating its dominant position in the fields of hematological tumors, breast cancer, lung cancer and other tumors. Particularly, the interim analysis results of the Phase III study of Foritinib Succinate (SAF-189s), an innovative drug independently developed to treat ALK-positiveb advanced non-small cell lung cancer (NSCLC), were released during the 2024 World Conference on Lung Cancer (“WCLC”). The above-mentioned studies have found that the overall efficacy of Foritinib Succinate is good. Compared with crizotinib treatment, it can significantly improve PFS and reduce the risk of CNS progression. Its safety is controllable, and no new safety signals appeared after treatment. Faritinib Succinate is expected to break through the current clinical difficulties faced in the treatment of ALK-positive NSCLC and bring new treatment options to NSCLC patients.

The multicenter real-world study of Fosun Pharma’s self-developed serplulimab-based immunochemotherapy for extensive-stage small cell lung cancer was released at the 2024 WCLC. The ASTRUM-005R study provides additional empirical evidence to support the therapeutic value of serplulimab plus chemotherapy and complements the pivotal data from the ASTRUM-005 clinical trial. Additionally, during the reporting period, the Committee for Medicinal Products for Human Use (“CHMP”) of the European Medicines Agency (EMA) issued a positive opinion recommending approval for Fosun Pharma’s self-developed serplulimab injection in combination with carboplatin and etoposide for the first-line treatment of adult patients with extensive-stage small cell lung cancer (ES-SCLC). The CHMP’s opinion will be submitted to the European Commission (EC) as a reference for marketing authorization approval.

Results of the phase 2 study of HLX22, an innovative anti-HER2 monoclonal antibody (mAb), in combination with Han Qu You (trastuzumab) and chemotherapy for the first-line treatment of HER2-positive advanced gastric/gastroesophageal junction (G/GEJ) cancer were presented on 2024 ESMO Gastrointestinal Cancers Congress (ESMO GI) and MED, a flagship clinical and translational research monthly journal by Cell Press. The results showed that add HLX22 to HLX02 (trastuzumab) and chemotherapy as first-line therapy improved efficacy in HER2-positive G/GEJ cancer patients with manageable safety.

In September 2024, Fosun Pharma announced the Biologics License Application (“BLA”) for the licensed product RT002 (DaxibotulinumtoxinA-lanm, Chinese trademark: 达希斐^®) for the temporary improvement in the appearance of moderate to severe glabellar lines associated with corrugator and/or procerus muscle activity in adult patients, was approved by the National Medical Products Administration (“NMPA”), becoming the first DaxibotulinumtoxinA-lanm approved for marketing in Chinese mainland. Additionally, the results of a Phase III multicenter, double-blind, placebo-controlled study conducted in China for the treatment of moderate to severe glabellar lines were published in the Journal of Plastic, Reconstructive & Aesthetic Surgery (JPRAS). The study demonstrates that the product provides durable efficacy and high safety in Chinese patients with moderate to severe glabellar lines.

Actively implementing share repurchases and increasing holdings with continuous efforts on enhancing ESG

Fosun Pharma, a company listed on both the A-share and H-share markets, and its controlling shareholder Fosun High Tech have actively engaged in share repurchases and increased holdings this year, demonstrating confidence in the Company’s future development and further boosting market confidence. In the first three quarters of 2024, Fosun Pharma spent approximately RMB127 million and approximately HKD66.9 million to repurchase around 5.68 million A shares and 5.47 million H shares respectively. As of now, the H Share Repurchase Plan is still valid. In addition, the controlling shareholder Fosun High Tech, has spent a total of approximately RMB101 million to increase its holdings of around 4.30 million A shares of Fosun Pharma, under the latest Shareholding Increase Plan.

Founded in 1994 and with three decades of development, Fosun Pharma has grown into a global innovation-driven pharmaceutical and healthcare industry group. The Company always regards innovation as its primary social responsibility, consistently focusing on unmet clinical needs, prioritizing innovative R&D, advancing the launch of innovative products, promoting drug accessibility and affordability, and driving high-quality corporate growth. Fosun Pharma maintained an A grade rating in MSCI ESG Ratings for three consecutive years and an A- rating in HSI ESG, ranking among the top tier in the healthcare industry for pharmaceuticals and biotechnology. It was also selected as a constituent of the Hang Seng (China A) Corporate Sustainability Benchmark Index (“HSCASUSB”), Hang Seng (China A) Corporate Sustainability Index (“HSCASUS”), and Hang Seng (Mainland and HK) Corporate Sustainability Index (“HSMHSUS”).

With its sustained excellence in innovation and global operational capabilities, Fosun Pharma has been recognized by multiple authoritative institutions in innovative R&D, ESG and other areas. The Company ranked in the top four of China’s 2023 Top 100 Pharmaceutical Industry, was included in the “China Best Managed Companies” List (BMC) for the second consecutive year and was listed in Forbes 2024 China ESG 50. In addition, the Company has actively introduced its independently developed artemisinin-based innovative products to Africa, providing a Chinese solution to the global fight against malaria. This initiative highlights the inclusive, diverse, and open nature of ESG and earned Fosun Pharma recognition as an “Inspirational ESG Case”, serving as a model for corporate ESG practices.

***

About Fosun Pharma

Founded in 1994, Shanghai Fosun Pharmaceutical (Group) Co., Ltd.* (“Fosun Pharma”; stock code: 600196.SH, 02196.HK) is a global innovation-driven pharmaceutical and healthcare industry group. Fosun Pharma directly operates businesses including pharmaceuticals, medical devices, medical diagnosis, and healthcare services. As a shareholder of Sinopharm Co., Ltd., Fosun Pharma expands its areas in the pharmaceutical distribution and retail business.

Fosun Pharma is patient-centered and unmet clinical needs-oriented. Through diversified and multi-level cooperation models such as independent research and development, cooperative development, license-in, and industrial investment, the company continues to enrich its innovative product pipeline and focus on differentiated product R&D with high-tech barriers, to continuously enhance the value of its pipeline. Fosun Pharma’s innovative products focus on core therapeutic areas such as solid tumors, hematologic tumors and immunity inflammation. It also strengthens core technology platforms such as antibodies/ADC, cell therapy, and small molecules.

Guided by the 4IN strategy (Innovation, Internationalization, Intelligentization, and Integration), Fosun Pharma adheres to the business philosophy of “Innovation for Good Health”, continues to promote innovative transformation, actively deploys internationalization, strengthens business focus by product lines, promotes integrated operations and efficiency improvement, and is dedicated to being the global leading integrator of pharmaceutical and healthcare innovation.

For more information, please visit the official website: www.fosunpharma.com

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SOURCE Fosun Pharma

• Delivered both revenue and Adjusted EBITDA above guidance range: We continue to execute with focus and efficiency, delivering exceptional results amid a challenging macro environment. Our strategy to lean into value-added services to drive take rate expansion continues to pay off, and we continue to invest in going upmarket to unlock long-term growth opportunities.
• Growing a high-quality buyer base: We continue to grow wallet share among our customers, with spend per buyer up 9% y/y in Q3’24. The recently rolled out Business Rewards Program on Fiverr Pro is showing promising signs to drive spending growth among larger customers, leading to more buyers spending over $10K on Fiverr annually.
• Creating end-to-end experience to enable complex projects: We launched Dynamic Matching, an AI-powered tool to provide a seamless matching experience for buyers with complex job requirements. Together with Professions Catalog and Hourly-Based Contracts, we are enabling an end-to-end experience for businesses to search, find, and engage with talent for complex projects and longer duration.
• Raising full-year guidance: The strong performance in Q3 gave us confidence to raise our full-year guidance range for both revenue and Adjusted EBITDA. This also translates into strong cash flow generation and puts us well on track to deliver the three-year targets on Adjusted EBITDA and free cash flow that we laid out last quarter.

NEW YORK, Oct. 30, 2024 (GLOBE NEWSWIRE) — Fiverr International Ltd. FVRR, the company that is changing how the world works together, today reported financial results for the third quarter 2024. Additional operating results and management commentary can be found in the Company’s shareholder letter, which is posted to its investor relations website at investors.fiverr.com.

“Our strong Q3 results underscored the consistency of our execution and the resilience of our business. We have a clear strategy for driving growth catalysts amid the uncertain macro environment. The investments we made in strengthening our value-added product portfolio have clearly paid off, as we continue to diversify our business model and expand into a platform where businesses can lean into both technology and human experts,” said Micha Kaufman, founder and CEO of Fiverr. “In addition, we are laying critical product foundations for us to appeal to larger customers and projects, which we expect to unlock significant long-term growth opportunities down the road. The integration of GenAI technology allows us to develop groundbreaking products that were not possible before. I’m really proud of our team who work around the clock to build these amazing experiences for our customers.”

“I’m pleased to report an exceptional quarter with both top and bottom lines exceeding expectations. The strong results and our continued progress on profitability improvements put us well on track to achieve our three-year targets for Adjusted EBITDA and free cash flow,” said Ofer Katz, President and CFO of Fiverr. “With a strong balance sheet and free cash flow generation, we have ample cash to address outstanding convertible notes, while having sufficient liquidity to run our business, and additional capacity to return capital to our shareholders. We are fortunate to have the optionality and we will continue to execute a disciplined capital allocation strategy to drive long-term shareholder value.”

Third Quarter 2024 Financial Highlights

• Revenue in the third quarter of 2024 was $99.6 million, compared to $92.5 million in the third quarter of 2023, an increase of 8% year over year.
• Active buyers¹ as of September 30, 2024 was 3.8 million, compared to 4.2 million as of September 30, 2023, a decline of 9% year over year.
• Spend per buyer¹ as of September 30, 2024 reached $296, compared to $271 as of September 30, 2023, an increase of 9% year over year.
• Take rate¹ for the period ended September 30, 2024 was 33.9%, up from 31.3% for the period ended September 30, 2023, an increase of 260 basis points year over year.
• GAAP gross margin in the third quarter of 2024 was 81.0%, a decrease of 270 basis points from 83.7% in the third quarter of 2023. Non-GAAP gross margin¹ in the third quarter of 2024 was 84.0%, a decrease of 120 basis points from 85.2% in the third quarter of 2023.
• GAAP net income in the third quarter of 2024 was $1.4 million, or $0.04 basic and diluted net income per share, compared to $3.0 million net income, or $0.08 basic net income per share and $0.07 diluted net income per share in the third quarter of 2023.
• Non-GAAP net income¹ in the third quarter of 2024 was $24.6 million, or $0.69 basic non-GAAP net income per share¹ and $0.64 diluted non-GAAP net income per share¹, compared to $22.6 million non-GAAP net income, or $0.59 basic non-GAAP net income per share¹ and $0.55 diluted non-GAAP net income per share¹, in the third quarter of 2023.
• Net cash provided by operating activities in the third quarter of 2024 was $10.9 million. Net cash provided by operating activities, excluding one-time escrow payment for contingent consideration of $12.2 million, was $23.0 million in the third quarter of 2024, compared to $23.4 million in the third quarter of 2023.
• Free cash flow in the third quarter of 2024 was $10.6 million. Free cash flow, excluding one-time escrow payment for contingent consideration of $12.2 million, was $22.7 million in the third quarter of 2024, compared to $23.1 million in the third quarter of 2023.
• Adjusted EBITDA¹ in the third quarter of 2024 was $19.7 million, compared to $16.5 million in the third quarter of 2023. Adjusted EBITDA margin¹ was 19.7% in the third quarter of 2024, compared to 17.9% in the third quarter of 2023, representing a 180 basis points improvement y/y.

Financial Outlook

Our Q4’24 outlook and updated full-year 2024 guidance reflect the recent trends in our marketplace.

Conference Call and Webcast Details

Fiverr’s management will host a conference call to discuss its financial results on Wednesday, October 30, 2024, at 8:30 a.m. Eastern Time. A live webcast of the call can be accessed from Fiverr’s Investor Relations website. An archived version will be available on the website after the call. To participate in the conference call, please register using the link here.

About Fiverr

Fiverr’s mission is to change how the world works together. We exist to democratize access to talent and to provide talent with access to opportunities so anyone can grow their business, brand, or dreams. From small businesses to Fortune 500, around 3.8 million customers worldwide worked with freelance talent on Fiverr in the past year, ensuring their workforces remain flexible, adaptive, and agile. With Fiverr Business Solutions, large companies can find the right talent and tools, tailored to their needs to help them thrive and grow. On Fiverr, you can find over 700 skills, ranging from programming to 3D design, digital marketing to content creation, from video animation to architecture.

Don’t get left behind – come be a part of the future of work by visiting fiverr.com, read our blog, and follow us on X, Instagram, and Facebook.

Investor Relations:
Jinjin Qian
investors@fiverr.com

Press:
Siobhan Aalders
press@fiverr.com

Source: Fiverr International Ltd.

Key Performance Metrics and Non-GAAP Financial Measures

This release includes certain key performance metrics and financial measures not based on GAAP, including Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP net income (loss), non-GAAP net income (loss) per share, and free cash flow, as well as operating metrics, including GMV, active buyers, spend per buyer and take rate. Some amounts in this release may not total due to rounding. All percentages have been calculated using unrounded amounts.

We define each of our non-GAAP measures of financial performance, as the respective GAAP balances shown in the above tables, adjusted for, as applicable, depreciation and amortization, share-based compensation expenses, contingent consideration revaluation, acquisition related costs and other, income taxes, amortization of discount and issuance costs of convertible note, financial (income) expenses, net. Non-GAAP gross profit margin represents non-GAAP gross profit expressed as a percentage of revenue. We define non-GAAP net income (loss) per share as non-GAAP net income (loss) divided by GAAP weighted-average number of ordinary shares basic and diluted. We use free cash flow as a liquidity measure and define it as a net cash provided by operating activities less capital expenditures.

We define GMV or Gross Merchandise Value as the total value of transactions ordered through our platform, excluding value added tax, goods and services tax, service chargebacks and refunds. Active buyers on any given date is defined as buyers who have ordered a Gig or other services on our platform within the last 12-month period, irrespective of cancellations. Spend per buyer on any given date is calculated by dividing our GMV within the last 12-month period by the number of active buyers as of such date. Take rate is revenue for any such period divided by GMV for the same period.

Management and our board of directors use certain metrics as supplemental measures of our performance that is not required by, or presented in accordance with GAAP because they assist us in comparing our operating performance on a consistent basis, as they remove the impact of items not directly resulting from our core operations. We also use these metrics for planning purposes, including the preparation of our internal annual operating budget and financial projections, to evaluate the performance and effectiveness of our strategic initiatives and capital expenditures and to evaluate our capacity to expand our business. In addition, we believe that free cash flow, which we use as a liquidity measure, is useful in evaluating our business because free cash flow reflects the cash surplus available or used to fund the expansion of our business after the payment of capital expenditures relating to the necessary components of ongoing operations. Capital expenditures consist primarily of property and equipment purchases and capitalized software costs.

Free cash flow should not be used as an alternative to, or superior to, cash from operating activities. In addition, Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP net income (loss) and non-GAAP net income (loss) per share as well as operating metrics, including GMV, active buyers, spend per buyer and take rate should not be considered in isolation, as an alternative to, or superior to net income (loss), revenue, cash flows or other performance measure derived in accordance with GAAP. These metrics are frequently used by analysts, investors and other interested parties to evaluate companies in our industry. Management believes that the presentation of non-GAAP metrics is an appropriate measure of operating performance because they eliminate the impact of expenses that do not relate directly to the performance of our underlying business.

These non-GAAP metrics should not be construed as an inference that our future results will be unaffected by unusual or other items. Additionally, Adjusted EBITDA and other non-GAAP metrics used herein are not intended to be a measure of free cash flow for management’s discretionary use, as they do not reflect our tax payments and certain other cash costs that may recur in the future, including, among other things, cash requirements for costs to replace assets being depreciated and amortized. Management compensates for these limitations by relying on our GAAP results in addition to using Adjusted EBITDA and other non-GAAP metrics as supplemental measures of our performance. Our measure of Adjusted EBITDA, free cash flow and other non-GAAP metrics used herein is not necessarily comparable to similarly titled captions of other companies due to different methods of calculation.

See the tables above regarding reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures.

We are not able to provide a reconciliation of Adjusted EBITDA and Adjusted EBITDA margin guidance for the fourth quarter of 2024 and the fiscal year ending December 31, 2024, and long term to net income (loss), the nearest comparable GAAP measure, because certain items that are excluded from Adjusted EBITDA and Adjusted EBITDA margin cannot be reasonably predicted or are not in our control. In particular, in the case of Adjusted EBITDA and Adjusted EBITDA margin, we are unable to forecast the timing or magnitude of share based compensation, amortization of intangible assets, impairment of intangible assets, income or loss on revaluation of contingent consideration, other acquisition-related costs, convertible notes amortization of discount and issuance costs and exchange rate income or loss, in each case, as applicable without unreasonable efforts, and these items could significantly impact, either individually or in the aggregate, GAAP measures in the future.

Forward Looking Statements

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding our expected financial performance and operational performance including our targets regarding Adjusted EBITDA, our expectation regarding certain benefits of our investments, our business plans and strategy, the growth of our business, AI services and developments, our product portfolio, our stock repurchase plan and expected shareholder value, our customer relationships and experiences, as well as statements that include the words “expect,” “intend,” “plan,” “believe,” “project,” “forecast,” “estimate,” “may,” “should,” “anticipate” and similar statements of a future or forward-looking nature. These forward-looking statements are based on management’s current expectations. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to: risks related to political, economic and military instability in Israel, including related to the war in Israel; our ability to successfully implement our business plan within adverse economic conditions that may impact the demand for our services or have a material adverse impact on our business, financial condition and results of operations; our ability to attract and retain a large community of buyers and freelancers; our ability to generate sufficient revenue to achieve or maintain profitability; our ability to maintain and enhance our brand; our dependence on the continued growth and expansion of the market for freelancers and the services they offer; our dependence on traffic to our website; our ability to maintain user engagement on our website and to maintain and improve the quality of our platform; our operations within a competitive market; our ability and the ability of third parties to protect our users’ personal or other data from a security breach and to comply with laws and regulations relating to data privacy, data protection and cybersecurity; our ability to manage our current and potential future growth; our dependence on decisions and developments in the mobile device industry, over which we do not have control; our ability to detect errors, defects or disruptions in our platform; our ability to comply with the terms of underlying licenses of open source software components on our platform; our ability to expand into markets outside the United States and our ability to manage the business and economic risks of international expansion and operations; our ability to achieve desired operating margins; our ability to comply with a wide variety of U.S. and international laws and regulations; our ability to attract, recruit, retain and develop qualified employees; our reliance on Amazon Web Services; our ability to mitigate payment and fraud risks; our dependence on relationships with payment partners, banks and disbursement partners; and the other important factors discussed under the caption “Risk Factors” in our annual report on Form 20-F filed with the U.S. Securities and Exchange Commission (“SEC”) on February 22, 2024, as such factors may be updated from time to time in our other filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. In addition, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements that we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this release are inherently uncertain and may not occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Accordingly, you should not rely upon forward-looking statements as predictions of future events. In addition, the forward-looking statements made in this release relate only to events or information as of the date on which the statements are made in this release. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

¹ This is a non-GAAP financial measure or Key Performance Metric. See “Key Performance Metrics and Non-GAAP Financial Measures” and reconciliation tables at the end of this release for additional information regarding the non-GAAP metrics and Key Performance Metrics used in this release.

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9M 2024 financial information
+4% organic growth driven by Electrification
Set for a robust year

_PRESS RELEASE_

• Standard sales of €5,226 million in the first nine months of 2024, up +4.0% organically year on year and up +6.9% excluding Other activities
• Electrification businesses up +7.9% organically in the third quarter of 2024, reflecting early-bird strategic investments in the Generation & Transmission segment
• Strong adjusted backlog for Generation & Transmission, mainly subsea-driven, at €6.2 billion, up +19% compared to September 2023
• Expansion of manufacturing capacities through investments in onshore high-voltage and the production of low-carbon medium-voltage cables in France
• Strategic investment agreement in France to increase copper production and recycling capacity across Europe
• Ambitious Net-Zero 2050 climate targets approved by the Science Based Targets initiative
• Full-year 2024 guidance as updated in July 2024 confirmed
  • Adjusted EBITDA of between €750 and 800 million
  • Normalized Free Cash Flow of between €275 and 375 million
• Capital Markets Day to be held on November 13, 2024 in London and virtually, and US investors day on November 20, 2024 in New York City

~ ~ ~

Paris, October 30, 2024 – Nexans, a global leader in the design and manufacturing of cable systems to power the world, announces its financial information for the first nine months of 2024. Commenting on the Group’s highlights, Christopher Guérin, Nexans’ Chief Executive Officer, said:

“The first nine months of 2024 have laid strong foundations for a robust financial year. Our Electrification businesses continue to drive growth, up +7.9% organically in the third quarter of 2024, showcasing that early strategic investments in Generation & Transmission are already yielding benefits.

In order to reinforce the positioning of our electrification strategy and keep pace with increasing electricity demand, we have decided to invest €90 million in onshore high-voltage capacity at our French and Belgian plants and €15 million in the production of low-carbon medium-voltage cables in France. In addition, Nexans continues to lead the way in the circular economy with a strategic investment agreement at the Lens plant, enabling the recycling of over 80,000 metric tons per year.

As we look ahead, I am confident that our continued focus on performance and strategic execution will drive long-term value for all stakeholders. At our upcoming Capital Markets Day in November, where we will further outline the initiatives that will shape Nexans’ trajectory in the years to come.”

CONSOLIDATED SALES BY SEGMENT

9M AND Q3 2024 HIGHLIGHTS

In the first nine months of 2024, standard sales amounted to €5,226 million, up +4.0% compared to the same period of 2023 and up +6.9% excluding Other activities, which are being scaled down in line with the Group’s strategy. Third-quarter 2024 standard sales amounted to €1,680 million, down -0.5% organically and up +2.5% excluding Other activities compared to the third quarter of 2023.

The Electrification businesses (Generation & Transmission, Distribution and Usage) witnessed a strong organic sales increase of +12.1% in the first nine months thanks to (i) the ramp-up of the Halden plant (Norway) in the Generation & Transmission segment, (ii) ongoing positive demand driven by long-term trends in the Distribution segment, and (iii) a resilient Usage segment.

Non-electrification sales were down -3.8% in the first nine months of the year on account of a slowdown in the Automation business and a high base effect in the Auto-harnesses business. Other activities experienced a significant organic decrease of -14.2% compared to the first nine months of 2023 in line with the Group’s strategy.

SUSTAINABILITY

As a key player in electrification, Nexans is committed to not only driving the future of power, but also to integrating and promoting sustainability and safety across all its operations and activities. Aligned with its fundamental principles and commitments to achieving Net-Zero emissions by 2050, key initiatives were implemented during third-quarter 2024:

• Nexans’ ambitious Net-Zero 2050 climate objectives were approved by the Science Based Targets initiative, underscoring the company’s leadership in climate action.
• The Copper Mark, an esteemed label for responsible copper production, was awarded to Nexans’ foundries in Montreal, Canada, and Lens, France, highlighting the company’s dedication to ethical and sustainable practices.
• In a strategic move to bolster energy efficiency, Nexans partnered with Niehoff to launch an innovative rod breakdown line at the Lens facility in France, which is projected to cut energy usage by 25%. This translates into a substantial reduction of approximately 840 tons of CO₂ emissions annually.
• In line with its target of 100% decarbonized electricity consumption by 2030, Nexans inaugurated a 1.7 MW solar farm at its Cortaillod plant in Switzerland, with over 90% of the energy generated being used onsite.

9M 2024 STANDARD SALES PER SEGMENT

| GENERATION & TRANSMISSION (17% OF TOTAL STANDARD SALES)

Generation & Transmission standard sales came in at €899 million in the first nine months of 2024, up +54.3% organically compared to the first nine months of 2023, propelled by the ramp up of new capacity at the Halden plant (Norway). In the third quarter of 2024, sales were up +36.2% organically compared to the third quarter of 2023, reflecting notably robust installation campaigns, Great Sea Interconnector execution and contributions from Inspection, Maintenance and Repair (IMR) works.

Customer activity remained robust, and in line with its risk-reward selectivity approach, the segment’s adjusted backlog reached €6.2 billion at September 30, 2024, up +19% compared to September 30, 2023. In the third quarter, Nexans secured the final contract for the pioneering electrical transmission link from the Orkney Islands in Scotland. Additionally, a definitive agreement was reached between Greece and Cyprus for the ambitious Great Sea Interconnector at the end of September. This key development represents a crucial step forward for the project, and Nexans is now anticipating the final notice to proceed with the contract.

During the third quarter, the Group unveiled a strategic €90 million investment at its facilities in France and Belgium. This investment will increase the production of advanced 525kV onshore cables meeting the requirements of the TenneT frame agreement. Progress continues apace on Nexans Electra, the company’s third cable-laying vessel. This state-of-the-art vessel is set to markedly increase the company’s installation capacity, effectively addressing the business’s expanding backlog.

| DISTRIBUTION (18% OF TOTAL STANDARD SALES)

Distribution sales amounted to €923 million at standard metal prices in the first nine months of 2024, up +1.6% organically, compared to the first nine months of 2023.

Europe has seen an uptick, thanks to the establishment of new frame agreements and a surge in renewable energy projects. This progress has been achieved notwithstanding the temporary dip in activity due to the consolidation of manufacturing operations in Finland during the third quarter. In France, the Group invested €15 million in late August to increase its capabilities in producing low-carbon medium-voltage cables in order to support growth in electrification requirements in France and in Western Europe. Additionally, the Group pioneered a cutting-edge solar power solution in France, designed to support the photovoltaic sector with a sustainable, low-carbon alternative.

The Asia Pacific region has witnessed a rebound primarily fueled by substantial investments in renewable energy and grid enhancement projects, especially in Australia and New Zealand.

In the Americas, the underlying market conditions have continued to exhibit strength. Despite this, the growth trajectory has moderated slightly, influenced by destocking and the timing of substantial orders.

| USAGE (29% OF TOTAL STANDARD SALES)

Usage sales amounted to €1,522 million at standard metal prices in the first nine months of 2024, up +0.5% organically compared with the first nine months of 2023.

In North America (Canada), solid demand in industrial markets during Q3 2024 supported the Group’s growth. While Europe faced headwinds with lower volumes and destocking in certain markets, South America saw strong demand in Brazil and Chile, while destocking in Columbia. In Africa, a robust recovery in Morocco offset the subdued demand in Turkey.

In a strategic move to fortify its commitment to 30% recycled copper in its products by 2030, Nexans launched CableLoop, an exclusive cable recycling and recovery service in France and across Europe. CableLoop is a pioneering, end-to-end solution that facilitates the collection of installation cable off-cuts in distributors’ networks at the Group’s recycling centers. Here, these materials are transformed into high-quality recycled raw materials, exemplifying the Group’s dedication to circular economy principles.

The sales figures reflect the strategic acquisitions of La Triveneta Cavi as of June 1, 2024, and Reka Cables since April 2023. These acquisitions are integral to Nexans’ Electrification strategy, expanding the Group’s capabilities in key regions.

| NON-ELECTRIFICATION (Industry & Solutions) (25% OF TOTAL STANDARD SALES)

In the Industry & Solutions segment, standard sales for 9M 2024 amounted to €1,294 million, reflecting an organic year-on-year decline of -3.8%. This was primarily attributed to a slowdown in Automation, which was partially offset by robust growth in the Shipbuilding, Nuclear and Rolling Stock markets. Auto-harnesses market remained resilient despite a high base effect from last year.

| OTHER ACTIVITIES (11% OF TOTAL STANDARD SALES)

The Other Activities segment – corresponding for the most part to copper wire sales and corporate costs that cannot be allocated to other segments – reported standard sales of €588 million in 9M 2024. Standard sales were down -14.2% organically year-on-year, mainly linked to the Group’s strategy to reduce copper wire external sales through tolling agreements in order to mitigate their dilutive effect.

2024 OUTLOOK

As the world continues to embrace electrification, Nexans is well-positioned to harness buoyant market demand, supported by global megatrends and the Company’s commitment to delivering value-added solutions. Nexans’ Generation & Transmission segment boasts a strong risk-reward adjusted backlog, ensuring solid visibility. The Group is poised to reap benefits from the expanded capacity of the Halden plant in Norway, positioning Nexans to meet the growing global demand for high-voltage solutions. Looking ahead, the Generation & Transmission business is on a trajectory of gradual improvement. This progress is contingent upon the successful execution of projects and the completion of legacy contracts. The Distribution market is entering a significant hyper cycle of investment, presenting Nexans with opportunities for growth and enhanced profitability. Despite weak demand in certain geographies within the construction sector, Nexans’ Usage segment remains resilient, with strategic initiatives in place to mitigate the impact of these macroeconomic conditions.

The Group expects to achieve the following targets which were upgraded in July, excluding the impact of any non-closed acquisitions and divestments:

• Adjusted EBITDA of between €750 and €800 million (€670 – €730 million previously);
• Normalized Free Cash Flow of between €275 and €375 million (€200 – €300 million previously).

Nexans reaffirms its commitment to the 2021 Capital Markets Day targets and will continue to execute its strategic roadmap and priorities.

SIGNIFICANT EVENTS SINCE THE END OF SEPTEMBER

October 22, 2024 – Nexans signed a strategic investment agreement in France to increase its copper production and recycling capacity across Europe. With an investment of over €90 million, wire rod production capacity will increase by over 50% at the Lens plant, boosting its copper scrap recycling capacity to manage up to 80,000 metric tons per year.

The third-quarter 2024 press release and presentation slides are available in the Investor Relations Results section at Nexans – Financial results.

A conference call is scheduled today at 9:45 a.m. CET. Please find below the access details:

Webcast
https://channel.royalcast.com/landingpage/nexans/20241030_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

November 13, 2024:         Capital Markets Day, London and virtually
November 20, 2024:         US investors day, New York City
February 19, 2025:         Full-year 2024 earnings

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 approximately 28,500 people in 41 countries, the Group is paving the way to a new world of safe, sustainable and decarbonized electricity that is accessible to everyone. In 2023, Nexans generated €6.5 billion 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, Usage 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 is recognized on the CDP Climate Change A List as a global leader on climate action and has committed to Net-Zero emissions by 2050 aligned with the Science Based Targets initiative (SBTi).

Nexans. Electrify the Future.

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

Contacts

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 Universal Registration Document, which include a description of the Group’s risk factors. 

• Nexans_Third quarter 2024 Press release_Final