Copyright of photographs: Nexans, Airbus, BMW, P. Dolemieux/La Company, S. Dolidon, M. Labelle S. Lavoué, S. Modet, NASA, V. Rackelboom, Sanaa, ZanArtphoto, DR, GospelCreative.

table of contents

CORPORATE SOCIAL RESPONSIBILITY & SUSTAINABLE DEVELOPMENT 1. About the Report ...................................................................................................................1 2. 2012 Highlights....................................................................................................................2 3. Message of the Chairman of Nexans Group .........................................................6 4. Corporate Social Responsibility for Nexans Hellas S.A. ...................................7 5. Financial Impact .................................................................................................................10 6. Environmental Impact ......................................................................................................15 7. Social Impact .......................................................................................................................19 8. Donations and Social Activity ......................................................................................23

Global expert in cables and cabling systems Nexans Hellas i.s.a. Registered Office Athens:15, Messoghion Avenue • Registration No 2176/06/B/86/06 – VAT No El. 094039860 Lamia Plant: Aghia Marina, 35300 Stylis, Fthiotis • Tel.: +30 211 120 7880 • Fax: +30 211 120 7899 Commercial Department: 21, Bichaki Street, 18233 Aghios Ioannis Rentis, Attica • Tel.: +30 211 120 7710 • Fax: +30 211 120 7799

www.nexans.gr, e-mail: [email protected]

Designed and produced by: GOSPELCREATIVE

About the Report The Report of Corporate Social Responsibility & Sustainable Development 2012 is the third publication of Nexans Hellas S.A., following the relevant publications of 2009 until 2011, concerning how it dealt with and managed the issues of Corporate Social Responsibility (CSR) in 2012. Our aim is to record the impact of our business activity on Economy, Environment and Society and to provide information on the activities of our company to all stakeholders such as shareholders, customers, employees, suppliers, our business associates, institutional investors, economic analysts and local communities. This report presents all the activities of our company. It contains references to financial issues (which are analyzed in detail in the Annual Financial Report 2012 of the company), while also examining closely the CSR issues with a detailed description of the environmental and social achievements and initiatives during last year. The financial figures of the report concern the performance of Nexans Hellas S.A. The environmental data are certified, checked and verified by competent bodies. Social data concern the initiatives of both the company and Nexans Group. The main purpose of our company is to develop an integrated management system based on the principles of Corporate Social Responsibility. We promptly inform all third stakeholders about our efforts and commitments regarding Corporate Social Responsibility. We are at your disposal for your comments and remarks regarding our sectors of activity and this report. Please send us your views: NEXANS HELLAS S.A. Communication Department Τ: +30 211 120 7726 F: +30 211 120 7729 E: [email protected]

Nexans, 2012

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overview

02 | Nexans, 2012

financial activity

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Frédéric Vincent President & CEO

In the which areas was progress made during the year? 2012 was a year of great contrast. It was a difficult time in terms of business volume and results, but it was constructive for our future performance in that we made significant progress in a number of spheres and launched several major initiatives. We have improved workplace safety and customer satisfaction, thanks to continuous improvement focused on product and service quality. We have also started to see the benefits of the new organization introduced in Europe to enhance our service and support for customers. We are gaining market share and customers in countries which we were previously unable to serve effectively. We are also pursuing innovation for the benefit of our customers. In February 2012, we acquired AmerCable Holdings Inc., North America’s top producer of cables for mining and oil & gas applications. In September, we finalized the acquisition of China-based Shandong Yanggu’s power cable operations. This deal has broadened our business horizons in a vast and buoyant market.

06 | Nexans, 2012

What are your main objectives for 2013? We have two priorities. The first is to provide solutions that meet customers’ expectations in terms of innovation, performance, lead times and pricing. The second is to restore our growth and profitability by building on the progress made in the high-voltage submarine segment and capitalizing on all of the benefits of our European organization. On January 14, 2013 the Board of Directors approved the outline of the 2013-2015 strategic plan, in terms of priority markets, products and industrial policy. Assuming an unchanged economic climate, our objective is operating margin of 350 to 400 million euros by 2015 and return on capital employed over 11%. I have every confidence in our ability to make this plan a success.

4. Corporate Social Responsibility for Nexans Hellas EC

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4.1 Corporate Social Responsibility

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SO CIET Y

Corporate Social Responsibility is at the heart of the strategy of Nexans Hellas S.A. Both Nexans Group and we personally believe that it is a strong means of development and progress, incentive for innovation and a factor of continuous improvement. We acknowledge that the operation of our company affects the Economy, Environment and Society in which we are operating. The Nexans values contain the ways by which the targets of the Corporate Social Responsibility for a balanced and sustainable growth, advantageous to the society, as well as to the company, are achieved. For future challenges Nexans is committed to offer those solutions that ensure the best sustainable and responsible development.

ing of long-term relationships based on trust. By this way we are able to provide safer products and solutions to our customers, combining energy performance with reduced CO2 emissions, apply environment-friendly production processes by choosing investments based mainly on the elimination of risks against the environment, energy saving and the use of environment-friendly materials, to improve quality control while also reducing scrap, to recycle cables at the end of their lifecycle (Program+, REACH Program) and to reduce inventories improving customer service (IRIS Program). We demonstrate that in the context of Corporate Social Responsibility of Nexans Hellas, we set Health & Safety, Environment and Quality of our products and services as our top priority in light of our strategy to be a company oriented to the customer (Customer Oriented Company). From the onset of our business operation, we are steadily focused on the continuous improvement of our products quality and safety. We invest in production equipment, we improve the planning of cable delivery and we save natural resources while also participating in and implementing corresponding programs of Nexans Group.

We strengthen and safeguard the principles of Corporate Governance by protecting the interests of shareholders and all stakeholders, ensuring transparency and promoting the company’s competitiveness through the Industrial Excellence Program (Nexans Excellence Way).

The invariable commitment of our company is to secure a safe and healthy workplace. We implement modern training and information methods aiming directly to change the attitude in safety issues, we invest in the employees’ safety equipment and we adopt the best relevant practices offered by Nexans Group.

We believe it is our obligation and responsibility to develop our business model, to adjust our sales forces, our resource base and organizational processes, so as to encourage closeness to customers, responsiveness and the forg-

The growth of our enterprise is based on environmental protection and the safeguard of the living standards of the area where it is operating. Nexans Hellas S.A. takes initiatives in both production process and its other operations so as to adopt

Nexans, 2012

environment-friendly practices. We implement procedures of continuous improvement and we invest heavily in innovation with a view to meeting customers’ needs and reducing the environmental footprint of our operations and products. We are committed to providing solutions that enhance the safety of both people and equipment, reduce energy loss and facilitate the development of renewable energies. We implement accurately the environmental legislation through meticulous inspections based on ISO 14001 specifications. We train our employees in environmental management and prudent management issues. We also seek for the complete implementation of the standard ISO 26000 for the Social Responsibility.

Nexans Code of Ethics and Business Conduct The Code of Ethics and Business Conduct is distributed to all employees and all of the Group’s stakeholders are informed of its contents. It sets out the values, principles of behavior and rules of conduct which Group executives and more generally all managers of the Group’s business units and subsidiaries are responsible for applying and implementing. The application of the Code is one of the issues verified in the regular reviews carried out by the Internal Audit Department. The Code establishes the principles that the Group’s employees must adhere to in their professional activities. It forms part of the Corporate Social Responsibility program, the reinforcement of which led the Board of Directors adhere to the United Nations Global Compact on November 25, 2008. In 2012 a particular focus was placed on fostering awareness among sales and purchasing teams in order to make sure that the Code’s principles are applied in all dealings with customers and

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Code of Principles on Sustainable Development Nexans Hellas S.A. adopts the Code of Principles of the Hellenic Federation of Enterprises Council on Sustainable Development and: 1. Respects the principles of Sustainable Development and incorporates them in its decision-making. 2. Promotes the adoption of environmentally proper and scientifically wellfounded business planning methods. 3. Is oriented to the manufacture of products and the provision of services with positive environmental effects. 4. Promotes the application of production processes laying emphasis on recycling, natural resources saving and proper management of the produced waste. 5. Trains adequately its human resources and invests in natural, technological and financial resources aiming at sustainable development. 6. Promotes the continuous improvement of its performance in the fields of health, safety and protection of the environment. 7. Provides correct information to the authorities and society about its activities and pursues an honest dialogue with those affected by such activities. 8. Contributes to the social, cultural and overall economic growth of the communities in which it is operating. 9. Adopts the application of modern corporate governance systems. 10. Consistently meets its statutory obligations in a spirit of transparency and business ethics.

suppliers. Also during the year, an evaluation process was carried out jointly by the CSR Department and the Internal Audit Department in all of the subsidiaries to assess how the 10 principles of the UN Global Compact are being relayed and applied. The Code has been translated into 16 languages and may be viewed on the Group’s website (www.nexans.com) or on the Group or country intranets. It is given to each new employee when they join the Group and is being implemented everywhere in the world. Nexans Hellas translated the code in Greek, distributed it to all its employees who are being trained to these principles and established its compulsory implementation.

The investment register joined by Nexans represents a data base for investment funds using SRI criteria. Forum Ethibel’s selection is based on a questionnaire that Nexans fills in every 18 months. The Board’s operating procedures are appraised each year on the basis of a detailed questionnaire sent to each director. They are also assessed regularly by specialized consulting firms. Based on a study conducted by Ernst & Young in 2012 on corporate governance prac-

Forum ETHIBEL:

Public Authorities

Society

Employees

Suppliers

08 | Nexans, 2012

An increased visibility on the SRI market: By joining this register, Nexans will obtain a better visibility on the SRI market, while a growing number of the funds under management are being invested in socially responsible companies.

Thanks to our continuous efforts in terms of sustainable development, Nexans has recently joined the ETHIBEL Excellence SRI register. The register is managed by the independent consultant firm Forum Ethibel which supports Socially Responsible Investment (SRI).

Social Partners

Shareholders

tices, Nexans ranked among the top 7% of companies in the SBF 120 index in terms of governance with a score of 7,5 out of 10.

Customers

Forum ETHIBEL is an independent agency for socially responsible investments that advises banks and brokers. Forum ETHIBEL reviews companies worldwide on their economic, social and environmental performance. For the composition of the register, ETHIBEL looks for companies that are trend-setters in the field of social responsible enterprising in their respective sector and region.

4.2 Our Partnership

• Education

In Nexans Hellas S.A. we believe that a strong relation of trust with all social partners, namely shareholders, customers, employees, suppliers, society and public authorities is a necessary condition for business growth. We invest in continuous cooperation; we inform about the application of sustainable management and commit to continuous improvement. We aim at communicating and exchanging views through dialogue and cooperating with all social partners.

• Innovation

4.3 Customer Satisfaction During 2012, we emphasized to the customer orientation, communicating the vision of our company to all our customers, up to the end user. The presentations to industry professionals, focused on very important issues such as: • Identifying, locating and understanding needs

• Quality Presentation and certification of cables for safety and reputation Our company’s participation in the 6th INTERNATIONAL EXHIBITION "ELECTROTEC and LIGHTING LOUNGE” held in METROPOLITAN EXPO Exhibition Centre at 04-07 October 2012, aimed to promote our main corporate values, to reinforce the cooperation and trustfulness with our customers and to exchange views related to our industry and the constantly changing market conditions. In our booth, there was a presentation of six thematic sections related to our business activities, expressed in cables. In addition, during the year, we published annexes for our product catalogues dedicated to the cables’ name recognition and detailed technical guide of cables. Also, we proceeded with the renewal of our website in order to facilitate our customers daily practice.

• Resolving questions • Interpretation processes

Transportation Cables

Innovation

Telecommunication Cables

Installation Cables

High voltage Submarine Cables

Power Cables & accessories

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5. Financial Impact We are invariably focused on the continuous improvement of both quality and safety of our products. We invest in modern, competitive productive industrial equipment, while at the same time we update our information systems saving natural resources through the participation and the implementation of Nexans Group programs aiming directly at innovation, initiatives, safety at work, reduce of cost and inventories, quality of service and economic growth.

5.1 Company Profile Since 1974 Nexans Hellas S.A. is involved in the production of all kinds of cables and in particular it produces energy cables of low, medium and high voltage, telecommunications cables as well as bare ducts made of copper, aluminium and aluminium alloys. In addition, the company produces land and submarine optical fiber cables.

Nexans Hellas is part of the international Nexans Group which has its registered offices in Paris. The French Nexans Participations SA with a share of 71.7% is the majority shareholder. The registered offices of the company are located at 15, Messoghion Avenue, 11526 Athens, while its principal establishment and production plant are situated in Aghia Marina, Fthiotis. The company has three branches which are also its distribution centres in Attica (21, Bichaki Str., Agios Ioannis Rentis), Thessaloniki (25, Kyprion Agoniston Str.) and Crete (Iraklio Industrial Zone). The shares of the company are registered and are traded on the Athens Stock Exchange as of March 1990.

Background

1973: Incorporation of the company under the name of “MANULI HELLAS CABLES S.A.” through the import of funds. 1974: Completion of the company’s production facilities at the area of Aghia Marina, Fthiotis and commencement of its production activity.

1990: Listing of the company’s shares on the Main Market of Athens Stock Exchange. 1991: Change of the company’s name from MANULI HELLAS CABLES S.A. into ALCATEL CABLES HELLAS S.A. 1996: Merger by absorption of VOLOS CABLES S.A. (former A.CHANDRIS CABLES S.A. 2000: Spin-off of the greatest part of the Cables and Accessories Sector of Alcatel from Alcatel Group and creation of a new Group under the name of Nexans.

2000: Change of the company’s name from ALCATEL CABLES HELLAS S.A. into NEXANS HELLAS S.A. 10 | Nexans, 2012

5.2 Company Organization Chart-Corporate Governance BOARD OF DIRECTORS INTERNAL AUDIT

The organizational structure of Nexans Hellas S.A. supports decision-making and its implementation in the context of our strategy. In addition, the relations and roles of employees are determined through the organizational structure so as to ensure coordination of projects and a central audit system. The company’s organization is thoroughly described in the “Internal Regulation” which has been drawn up according to the current rules for Corporate Governance.

MANAGING DIRECTOR & GENERAL MANAGER SALES & MARKETING DEPARTMENT

PLANT MANAGEMENT

FINANCIAL DEPARTMENT

PRODUCTION DEPARTMENT

PURCHASING DEPARTMENT

TECHNICAL DEPARTMENT

IT DEPARTMENT

MAINTENANCE & FACILITIES DEPARTMENT

LEGAL SERVICES

SUPPLY CHAIN & LOGISTICS DEPARTMENT HEALTH & SAFETY DEPARTMENT

The company has an Internal Regulation, which defines duties and obligations of the bodies and various company departments. Nexans Hellas S.A. is run by a fivemember Board of Directors with a twoyear term of office. The Board of Directors consists of two executive members, one non-executive member and two independent, non-executive members. The composition of the Board of Directors is determined by the Shareholders General Meeting. The current Board of Directors was elected by the Shareholders General Meeting of 25.05.2011 and formed in body the same day as follows:

Giuseppe Borrelli Chairman (executive member)

Demetrios Kalogeras Vice-chairman, Managing Director & General Manager (executive member)

Jean-Michel Trouvé Non-executive member

George Chryssomalliς Independent non-executive member

Demetrios Politis Independent non-executive member

Executive members deal with everyday management affairs of the company, whereas non executive members promote all corporate issues. The independent members of the Board of Directors may submit, either separately or jointly, statements and other reports than those of the Board of Directors to the ordinary or extraordinary general meeting of the company, if they so deem necessary. The 3 non-executive members make up the company’s Audit Committee.

5.3 Declaration of Corporate Governance The declaration of Corporate Governance for 2012 is included in the Annual Report of the same period, as specifically provided in the article 43a paragr. 3 case d of C.L. 2190/1920 (see p. 19 to 20 of the attached Annual Report 2012).

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Financial activity of our company in numbers: (The amounts are in thousand Euros) Financial activity for 2012

118.925 (627) 211 687 10.865 5.000 2.543

Turnover Net loss after taxes Number of employees Investments Taxes, contributions to social security funds Fees and benefits to employees Expenses to local suppliers (Fthiotis) Nexans, 2012

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Key principles of our Company’s Environmental Policy: 1. Compliance with environmental laws. We implement applicable environmental laws to our company’s operation. 2. Responsible operation. We are aware of the effects of our activity on the environment and we take steps to eliminate such effects. 3. Cooperation with certified companies. We see to it that the companies with which we cooperate have the relevant licences for waste management and comply with applicable laws. 4. Continuous improvement. We constantly improve our environmental performance and minimize any environmental problems. 5. Adoption of best practices. We develop the best practices of the Group regarding the management of the environment and the sustainable growth. 6. Transparency. We provide all data to interested groups and we are open to a dialogue with them. 7. Training. We constantly train our employees in the protection of the environment aiming at raising awareness and their active participation in environmental management issues. 8. Environmental management system. We apply an environmental management system which aims directly at ensuring that the applied production processes do not entail any pollution risk against the environment.

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6. Environmental Impact Nexans Hellas is committed that the growth of the company is environment-friendly, applies the principles of Sustainable Development and operates in a fully transparent manner when implementing the applicable environmental laws. The total efforts aim to protect the environment, to control the consumption of energy, water and raw materials and to facilitate product recycling. In the context of Nexans Group, the company adopts a series of actions in order to comply with the objectives of Sustainable Development. The Group’s Environmental Manual sets out the various types of training, information and awareness-raising measures available to employees based on their level of responsibility as well as the environment-related skills and knowledge they are expected to have. It shows the departments and positions that could have a significant influence on the environment and for which specific training may therefore be required.

6.1 Impact Reduction Throughout the Product Life Cycle Nexans strives to develop products that both meet its customers’ needs and have a minimal impact on the environment throughout their life cycle. The Group offers solutions to make electricity transmission and distribution more reliable, mitigate power loss in lines and the amount of heat generated by equipment, and replace polluting energy generation sources. The Group is working successfully to lighten the cables used by transmission lines and to optimize the resistance of cables subject to severe constraints, such as deep water, high pressure, extreme temperatures, fire, corrosion and intense mechanical stress. Apart from the above, in the frame of better customer service and product standardization, Nexans Hellas has obtained HAR certification for the produced harmonized types of cables, thus ensuring the high quality of its products. HAR certification is carried out by an independent institution of certification (ELOT) that is authorized for HAR certifications and a member of IQnet.

6.2 Making the most of Eco-Friendly Design Measures to prevent, reduce or clean up air emissions and discharges into water and soil that seriously affect the environment: One of the objectives of the Group’s environmental policy is to gradually reduce the environmental impact of its operations, and it has analyzed the sources of pollution within its business activities, based on the key processes used and the overall risks they generate. The Group’s product designers use life cycle assessment (LCA) methodology and EIME software to select optimal solutions. A design-to-cost approach combining marketing, development and scalable manufacturing techniques is used to fine-tune cable performance and thereby limit resource consumption, without negatively impacting performance for customers. The Group complies rigorously with RoHS and REACH regulations on hazardous substances. Nexans also has a comprehensive database to help employees answer customers’ questions and assist customers with their own compliance procedures.

6.3 Better Production Nexans' environmental management is based on the assessment of risks, training courses on best practices, close monitoring of individual site performances, audits and the continuous improvement programs built into plants' three-year plans. The Group's new plants have been designed to minimize their environmental footprint. Improvements mainly concern soil protection, wastewater management, the containment of hazardous fluids, the treatment of emissions, the reduction of noise pollution, and the optimization of heating, air conditioning and lighting systems. Equipment, production processes and work practices are enhanced concurrently with a view to reducing consumption, waste and emissions. Baseline performances are defined in order to identify best practices for Group-wide implementation. In 2011, an energy efficiency plan was unveiled for the 16 plants that account for 50% of the Group's total consumption. The aim is to achieve a roughly 9% reduction in consumption within three years.

Useful information is summarized in Product Environmental Profiles (PEPs). 2011 saw the introduction of the EcoCalculator, which assists drawing offices with the online selection of low-voltage cables offering optimal energy efficiency, CO2 reduction and fire resistance.

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6.4 CSR Organization A CSR(1) Committee was established in July 2009 to determine the Group’s sustainable development policies and track its related initiatives. It is chaired by Frédéric Vincent, Group Chairman and CEO, and meets twice a year. The Group also has two specialized committees, made up of various working groups, which also meet twice a year and are tasked of steering and coordinating themes and projects in the following main fields: - Governance & Social Affairs Committee: Governance, ethics and business conduct, responsible purchasing, workplace safety, labor relations, corporate sponsorship projects and community relations. - Environment & Products Committee: On-site environmental management, soil testing, new product innovation and development, life-cycle assessment and eco-declarations, and sustainable products and solutions. In 2012, the Group published a CSR brochure which is available in English and French on the Group’s website (www.nexans.com).

6.5 Better Purchasing and Distribution Suppliers are encouraged to adhere to Nexans’ sustainable development policy by adopting the Supplier CSR Charter. To date, a total of 63% of the Group’s suppliers have signed up. Nexans is also increasing its “green” purchases, notably with regard to cable drums, paper and vehicles. The Group offsets airplane CO2 emissions resulting from employees’ business travel by purchasing carbon credits. On the logistics front, measures include optimized truck-loading and deliveries, the increased use of inland waterways and cable drum management.

Nexans, foundermember of the pepecopassport® program The program provides rigorously detailed information on the environmental impact of electrical and electronic products and heating, ventilation and air conditioning systems. All Product Environmental Profiles produced by members comply with the ISO 14025 and ISO 14040s standards. Since 2011, the profiles may be consulted online at www.pepecopassport.org

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6.6 Ordinary Audits and Certification of Environmental Protection Through the Award of EHP Label

In addition, during 2010 our company, in line with its objectives, was certified for the Environmental Management System according to International Standard ISO 14001.

The site-monitoring process uses an online questionnaire and audits. Upon completion of the audits, the internal EHP (Environnement Hautement Protégé, Highly Protected Environment) label is awarded to sites that satisfy the criteria specific to the Group’s operations. Sites that do not meet the criteria are required to initiate corrective actions, which are included in the three-year plans for the plants.

6.7 Recycling of End-of-Life Cables

At end-2011, the EHP label had been awarded to 71 of the 92 participating sites, i.e., 77% of those audited. This showing is in line with the established target of 75%. At the year-end, 56 plants in total had ISO 14001 certification. Already from the beginning of 2009, the plant of Nexans Hellas at Aghia Marina, Fthiotis has been certified by the Group and has been awarded the EHP label on the protection of the environment.

The Group is highly committed to recycling its manufacturing waste, notably through Recycables, a company in which it owns a 36% interest. In 2012, it sent 10.995 tonnes of cable waste from its manufacturing sites to Recycables for recycling. A further 4.704 tonnes of cable waste was sent to other recyclers. By sorting factory waste and recycling cable waste, most of the Group’s waste – including wood, paper, cardboard, ferrous metals, machine oil, batteries, and special waste – is re-used in some way.

Material recycling in Nexans Hellas

and motion generation to 2.996 MWh, while for 2011 the relevant consumption came to 2.023 MWh. Considering that the factory's production volume at the expense of products increased by approximately 45% in 2012 compared with the previous year, becomes comprehended that the energy saving measures were quite successful.

Given that one of the company's environmental goals is to recycle all sorts of materials (raw materials, packaging materials, auxiliary materials, etc), the competent department and the employees of the plant and branches of Nexans Hellas undertake, in a systematic and coordinated manner, to collect and segregate at source the materials to be recycled. Category of material 2012 for recycling Quantity (tons) Cable cut-outs Wood Paper – carton Iron Plastics Lubricants Scrap

494 207 43 30 171 10 709

Accordingly, an action plan has been developed for packaging materials such as wooden drums and wooden pallets which leads to their re-use as much as possible, thus restricting the needs for raw materials and generating direct benefits, since wood-cutting is limited and forests are saved. Packaging materials

Wooden drums and palettes Plastic packaging film

2012 Quantity (tons)

3.213 14

Cooperation of Nexans Hellas with the Hellenic Recovery & Recycling Corporation (He.R. & R.Co) Our company has entered into an agreement with the Hellenic Recovery & Recycling Corporation having as main goal to recycle the packages rejected by the product's end users, thus contributing to the minimization of the nuisance to the environment and to the achievement of the collective objective of recycling on a national scale.

6.8 Water and energy use

6.9 Lubricant and oil Management Aluminium and copper drawing and rolling lubricants as well as machinery lubricating oils, after being used, are temporarily collected in sealed containers in a special fenced and roofed area of the plant. They are further taken by specialized licensed companies cooperating with our company to final processing and distribution in compliance with legal provisions. The company improved the process of washing its fork-lift vehicles and installed an oil-divider that accumulates small quantities of lubricants so that they do not leak to the ground. Afterwards, the lubricants are disposed off with certified companies, as above.

Water Water is used in production to cool cables at the plastics extrusion lines (where there is a water recirculation closed circuit, thus saving large quantities of water) and to generate steam. In addition, it is used in irrigation so as to preserve green areas (gardens, grass, etc) and for health and cleaning purposes. During 2012, water consumption came to 4.934 m3, while during 2011 water consumption came to 5.005 m3. It is worthwhile noting that within the Group, our plant is among the top ten plants in terms of water saving. Also, our factory does not drain liquid waste to the ground or in Maliakos Bay area.

Energy Energy saving is of primordial importance for Nexans. For 2012, electricity consumption for motion, lighting, heating and cooling came to 14.373 MWh, while for 2011 the relevant consumption came to 13.506 MWh and the necessary thermal energy from fossil fuels for steam

Nexans, 2012

6.10 Environmental Compliance The company fully complies with the requirements of both Greek and E.U. Laws and strictly abides by the approved environmental terms, this being confirmed by the relevant inspections conducted by the competent State Services.

6.11 Investments in Environmental Protection In the context of environmental protection and prevention measures, the company, assisted by the Group's central services and specialized external consultants, has drawn up an action plan to eliminate the risks from any pollution of the environment. To this effect, our company has taken the following actions: • Construction of ground tanks for liquid storage. • Extension of special areas for ware-

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housing lubricants and machine oils. • Construction of rainwater network cut-off systems. • Total waste management via licensed companies (lubricants, machine oils).

6.12 Application of EU Reach Regulation In order to implement REACH, a European Union Regulation, which concerns protection from chemical toxic substances, the Group has put into effect a series of actions: • It has set up a complete organization consisting of REACH Team at Group level which is supported by Senior Managers of the Group, Legal Advisors and Information Services. • A REACH contact has been appointed in each country, assisted by a group of technicians in each plant who are in charge of gathering all data on the raw materials used in our finished cables. • In addition, our sales administrators are ensuring proper communication with customers. Throughout the supply chain from the purchase of raw materials to production,

sales and final promotion to customers, compliance with the regulation is controlled having as ultimate goal the distribution of safe products (100% REACH compliant).

6.13 Application of EU RoHS Directive Our company implements RoHS directive of the European Union which refers to the content of the company’s products in heavy metals.

to the members and the society in general. SEV Council for Sustainable Development is the Greek department of the regional network of the World Business Council for Sustainable Development (WBCSD).

6.15 Continuous Improvement Nexans Hellas has established, applied and maintains a quality control system,

6.14 Partcipation of Nexans Hellas in the Council of the Hllenic Federation of Enterprises (SEV) for Sustainable Development Our company has been participating in the SEV Council for Sustainable Development since November 2008 as one of the 31 founding members of the relevant initiative of SEV Board of Directors. Its objective is to promote the Sustainable Development in the Greek business reality through communication, information, training, cooperation and promotion actions

according to the ISO 9001:2008 standard, having as target the continuous performance improvement and focusing to the customer. The quality control system is certified by an independent certification company (Bureau Veritas).

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7. Social Impact We commit to improve at all times the safe and healthy working conditions by applying modern working methods and minimizing any risks. We are interested in the prosperity of the local and wider society by strengthening actions that benefit citizens. Nexans University: created by Nexans and its employees Nexans University has consistently risen to the threefold challenge of developing training programs aligned with the needs of the Group and of its served geographic markets, managing linguistic and cultural diversity, and keeping costs within reasonable boundaries. The University deploys training using a cascade model through: • A training school, where managers from the various countries are taught how to design a training program, teach courses and train instructors in their countries. • 12 departments, representing the Group’s main businesses, which identify best practices, document expertise and determine, in conjunction with training managers, the best way to share this expertise. The ambition of the Nexans University is to become the “collective memory” of the Group so that a solution found once is acquired for everybody and forever. In all, 450 Group employees are involved in the design of training programs for acquiring the extra skill of training, and 6.500 employees have attended learning courses during 2012. More than 84 training programs have been developed over a five-year period. Courses are offered in 10 languages, and the training hours have exceeded 23.000 in more than 20 countries.

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7.1 Value People A skilled, motivated workforce is essential to Nexans. The Group’s employees must be capable of pulling together to form winning teams. Being a Nexans employee means sharing performance and responsibility values in a company that readily provides the necessary resources for professional growth.

corporate social responsibility

seeks to reflect the diversity of the countries in which it operates in its employee base. Internal promotions and mobility are encouraged. A mobility charter ensures equal treatment among all Group expatriates, whatever their country of origin.

Education at Nexans Hellas The data for the training of personnel in 2012 are as follows:

Total number of employees trained

“Talent reviews” are used to identify key talent and high-potential employees.

112

Shared values

Broadening cooperation

In 2011, based on the outcome of a participative process involving 22 teams worldwide, Nexans defined the values that guide employees on a daily basis in the workplace and in their dealings with the Group’s customers, suppliers and other contacts. Our values form the basis for the achievement of the strategic priorities of our Group.

Nexans encourages networking aimed at sharing experiences and best practices, spreading innovation and furthering cooperation in all spheres. Examples of such networking are the Group’s Expert Clubs, Business Clubs and themed gatherings.

Total number of educational hours for 2012

Actions are promoted via dedicated media. Impetus is also provided by more than 200 collaborative platforms that unite nearly 3.000 users.

2.134 Average hours of training per employee

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Skills and training To ensure that employees’ skills are aligned with the Group’s needs, Nexans has deployed competency models for each business. In addition, individualized development plans are crafted based on regular competency assessment interviews between employees and their respective managers. Nexans University serves as the Group’s central learning body. Created by Nexans for the Group, the University promotes the sharing of a common culture, and the spread of knowledge and best practices in all spheres critical to the Group’s success. Emphasis is also placed on the development of individual employees’ and teams’ ability to work together and to leverage Nexans’ resources to the full for the good of customers. Attracting and retaining talent Nexans emphasizes the recruitment of young graduates suited to working in an international environment. The Group also

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Working at Nexans Hellas Nexans Hellas S.A. employs more than 200 full-time employees providing to them safe and healthy working conditions. At the same time, through our participation in the Group’s University called Nexans University, we offer to our employees’ lifelong learning and training options while also reinforcing the dialogue with the company’s trade union. We disapprove any form of forced or child labour and we require the same behaviour from the suppliers and subcontractors with whom we cooperate.

More specifically:

25 executives were trained for

646 hours (roughly 26-hour education/executive)

87 employees were trained for 1.488 hours (roughly 17-hour education/employee)

7.2 Organization for health and safety

7.3 Risk Management at the Workplace

In order to secure a healthy and safe working environment for the employees, visitors and collaborating third parties (subcontractors’ personnel), the company has established a series of procedures in addition to those provided for by law and has designated responsibility posts for the compliance with the health and safety measures in working areas.

Based on the principle of prevention, risk management at the workplace is a continuous procedure in which the employees and the head of the specific working area are actively engaged in addition to the institutional bodies (Safety Technician, Occupational Physician, and Occupational Health and Safety Committee). The procedure is based on the methodology developed by the Group and is related to the processes carried out in cable plants and risk analysis per post. Thus, risks are evaluated for each post, the necessary measures are taken, proper working practices are adopted and the Personal Protective Equipment is accurately defined.

Thus, constant supervision is ensured in each working area for the employees’ compliance with safety procedures, the use of personal protective equipment and the performance of work in line with the approved work instructions. As a result, any eventual risks are timely identified and all steps are taken either to eliminate them or diminish them at acceptable levels. In addition, efforts are made at all times to apply safer work methods. The company has a Safety Technician and an Occupational Physician while the Occupational Health and Safety Committee consisting of employee representatives properly performs its duties at each work place. The company has implemented considerable investments in order to improve health and safety, while all employees have participated in seminars regarding health and safety.

7.4 Nexans Excellence Way Program for operational excellence (Nexans Excellence Way) The company participates in the program for operational excellence of the Group called Nexans Excellence Way which is being implemented in 75 plants of the Group worldwide. We aim at modifying our operation, so as to make the company more competitive, more flexible and more efficient for our customers. This pro-

gram has ambitious objectives in terms of workplace safety, cost and inventory reduction, and customer service quality. Nexans Excellence Way was launched in mid-2009 and is being rolled out rapidly in many plants. During 2012 the number of plants signed up to the program was 75 (compared to 64 at the end of 2011). Facilities with an advanced implementation maturity level (A or B) numbered 52 (70% of the plants). Momentum has been sustained by the application of Nexans industrial competency models and the heightened emphasis on training. Nexans Excellence Way is organized around autonomous teams, which take action to achieve the objectives set for them. The 5S approach is applied systematically to ensure that plants are as clean, tidy and safe as possible. Anything not essential to the production process and conducive to the loss of time, raw materials or energy is identified and subsequently eliminated. Potential commodity savings compatible with specifications under the Theoretical Minimum Cost method are regularly assessed at all sites. Action plans to reduce waste and excessive consumption have been initiated. Standards governing work procedures are defined and applied, notably with the

The company makes its best efforts to create the proper working conditions, so that employees feel they are safe when working and that they run no risk provided they work in full compliance with the instructions in which they have been trained and of which they are aware

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overview

financial activity

corporate social responsibility

aim of speeding up tool and production changeovers and thereby assuring the flexibility required to meet customer demand without increasing inventories. Nexans Excellence Technology 2011 saw the launch of 10 cross-functional Nexans Excellence Technology networks. The themed networks are intended to quicken the exchange of best practices and innovations between plants using the same industrial processes. The development of new operating standards has continued with the aid of simple, accessible tools that familiarize operators with Group policies. A certification process for operators was introduced in 2012. Major objectives have been set at Group level. They resulted to a radical improvement in safety, by 30% reduction per year in the workplace accident frequency rate over three years (20132014), a 10% decrease in the inventory coverage rate over three years and the optimization of raw material consumption. Training programs have been set up, with deployment coordinated by a network of eight regional industrial excellence champions. Each plant uses a standardized set of key indicators. Each of the 10 indicators is analyzed at one-month intervals to achieve close performance tracking. Workplace safety: highly productive measures The workplace accident frequency rate is the primary monthly key indicator used by the plants. 2009 saw the launch of an ambitious program underpinned by com-

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mon rules, standards to prevent the most serious risks and improvement measures in each country. Workplace Safety Days involving management teams are organized at each site and Safety Awards are given in recognition of achievements. Nexans implements Job Safety Analysis, an approach that enables the determination of the safest work procedures for each workstation, as well as the observation tool SUSA (Safe Unsafe Act) to keep the running task and to determine safe and unsafe actions and conditions in order to prevent accidents. Near-accidents have been factored into the key indicators used by plants and the Group has concentrated improvement efforts on the 10 lowest-rated facilities. As a recognition for good performance, with regard to the specific initiatives undertaken, the excellent results in workplace safety, the full implementation of Nexans Excellence Way program and its overall industrial performance, the Chairman of Nexans Group Frédéric Vincent awarded our Nexans Hellas plant in Lamia as “The Nexans plant of the year 2010” within the whole Group, during a special event in March 2011. Our goal now is to maintain our Lamia plant among the best plants of the Group in relation with the implementation of Nexans Excellence Way program.

7.5 Safety Rates In order to determine the safety level, the cases that entailed accidents are recorded and further analysed. The most utilised indicator is the indicator

of frequency of accidents, which determines the number of hours of work lost because of accidents, compared to 1.000.000 total hours of work. This indicator for the factory of Nexans Hellas in Lamia was null (0) so for the year 2012 and 2011.

8. Donations and Social Activity The Group’s interaction on a regional level is based on fostering close links with local organizations and communities. Through the nature of its business, the Group contributes to local employment and therefore plays a role in regional development. It places great importance on building up close ties with local and regional communities, economic and s uality relationships with their neighboring communities and to limit the environmental impact of their operations. As a member of the United Nations Global Compact, Nexans is committed to using its skills and cabling solutions to improve the living conditions of underprivileged populations. The Group and its employees actively contribute to the training of young people. Nexans also participates in the preservation and showcasing of exceptional heritage through its sponsorship commitments (Partnership with Electricians Without Borders, Supporting youth education, Sponsorship of the Palace of Versailles and of the Louvre-Lens museum etc).

In this context our company actively contributes to the local communities where it operates by making donations to charities (like “Smile of the Child“ “Sin ston Anthropo”, the “Pediki Stegi Tis Gonias Tou Pediou”, Lamia Hospital). In addition, our company participates in university research programs, contributes willingly to cultural events while also receives and guides in its premises school classes of all education levels and special classes of schools that train young people to become electrical professionals. Our aim is to prepare them for the future and help them learn about the business world. Since many years, the company has been continuously contributing to the organisation of the “Maritime Week” of the Municipality of Stylida, and to other cultural events for children, like “Santa’s Village”, whereas in the past it has made donations to the Band of the Municipality of Lamia.

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