Nexans Finance: Powering the Future Through Strategic Financial Management

Nexans, a global leader in cabling and connectivity solutions, relies on a robust and strategically aligned finance function to fuel its innovation, growth, and sustainability initiatives. The finance department is not simply a support function; it’s a critical partner in shaping the company’s direction and ensuring long-term value creation.

Key Responsibilities

Nexans’ finance team is responsible for a broad spectrum of activities, including:

• Financial Planning & Analysis (FP&A): Developing and implementing the company’s financial strategy, including budgeting, forecasting, and performance monitoring. They analyze market trends, competitive landscapes, and internal performance data to provide insights that inform strategic decision-making.
• Accounting & Reporting: Ensuring accurate and timely financial reporting, adhering to international accounting standards (IFRS), and maintaining strong internal controls. This includes preparing consolidated financial statements and managing relationships with external auditors.
• Treasury Management: Overseeing cash flow management, foreign exchange risk mitigation, and financing activities. They are responsible for optimizing the company’s capital structure and ensuring access to funding for investments and operations. This also involves managing relationships with banks and other financial institutions.
• Mergers & Acquisitions (M&A): Evaluating and executing strategic acquisitions and divestitures to expand Nexans’ market presence and product portfolio. The finance team plays a crucial role in due diligence, valuation, and negotiation processes.
• Investor Relations: Communicating the company’s financial performance and strategy to investors, analysts, and other stakeholders. They ensure transparency and build trust in Nexans’ financial management.
• Internal Audit: Providing independent assurance that Nexans’ internal controls are effective and that its risk management processes are sound.

Strategic Alignment

Nexans’ finance function is deeply integrated with the company’s overall strategic objectives. It actively supports the company’s focus on electrification, energy transition, and sustainability. Financial decisions are guided by a commitment to long-term value creation and responsible business practices. Specifically:

• Supporting Innovation: Finance helps allocate resources to research and development, enabling Nexans to develop innovative cabling solutions for emerging markets.
• Driving Efficiency: The finance team continuously seeks opportunities to improve operational efficiency and reduce costs, enhancing profitability and competitiveness.
• Promoting Sustainability: Nexans is committed to sustainable development, and finance plays a key role in evaluating the financial implications of environmental and social initiatives, ensuring that sustainability is integrated into business decisions. This includes assessing the financial viability of renewable energy projects and responsible sourcing practices.

Challenges and Opportunities

Nexans’ finance team faces several challenges, including navigating economic volatility, managing complex global operations, and adapting to evolving regulatory requirements. However, these challenges also present opportunities to enhance its financial capabilities and drive further value creation. Embracing digital technologies, such as data analytics and automation, will be crucial for improving efficiency, enhancing decision-making, and mitigating risks. By continuing to invest in its people and processes, Nexans’ finance function will be instrumental in powering the company’s future success.