Nkt A/s · OMXCOP:NKT

Nkt A/s — Non-Deal Roadshow (August 2016)

35 slides from Nkt A/s's roadshow presentation, Aug 31, 2016

  1. Slide 1: Copenhagen Reverse Roadshow - Danske Bank

    NKT I Copenhagen Reverse Roadshow – Danske Bank 31 August 2016 I 1 6 Copenhagen Reverse Roadshow - Danske Bank Copenhagen, 31 August 2016

  2. Slide 2: Forward looking statements

    NKT I Copenhagen Reverse Roadshow – Danske Bank 31 August 2016 I 2 Forward looking statements ​This presentation and related comments contain forward- looking statements ​ Such statements are subject to many uncertainties and risks, as various factors of which several are beyond NKT Group’s control,

  3. Slide 3: Agenda

    NKT I Copenhagen Reverse Roadshow – Danske Bank 31 August 2016 I 3 Agenda Introduction to NKT Highlights Q2 2016 Business units • Nilfisk • NKT Cables • NKT Photonics Questions & Answers

  4. Slide 4: Industrial conglomerate with global presence...

    NKT I Copenhagen Reverse Roadshow – Danske Bank 31 August 2016 I 4 Industrial conglomerate with global presence... NKT Holding A/S Business area Key Products Geographic coverage Revenue Employees • Low & medium voltage cables North, Central and • High voltage cables EUR 1,212m NKT Cables • Submarine

  5. Slide 5: ... and a strong European position

    NKT I Copenhagen Reverse Roadshow – Danske Bank 31 August 2016 I 5 ... and a strong European position Sales and manufacturing facilities Nilfisk NKT Cables NKT Photonics 2% 10% 13% EUR EUR 44% 2,224m 54% 2,224m 77% Sales by business unit Sales by geography Nilfisk EMEA NKT Cables Americas NKT Photon

  6. Slide 6: Agenda

    NKT I Copenhagen Reverse Roadshow – Danske Bank 31 August 2016 I 6 Agenda Introduction to NKT Q2 2016 Business units • Nilfisk • NKT Cables • NKT Photonics Questions & Answers

  7. Slide 7: Highlights Q2 2016

    NKT I Copenhagen Reverse Roadshow – Danske Bank 31 August 2016 I 7 Highlights Q2 2016 ​Organic growth and earnings improved. ​ verall growth and earnings as O ​ atisfactory financial performance. S New organisation and cost savings to expected with positive performance Basis for commercial scale enh

  8. Slide 8: Financial highlights Q2 2016

    NKT I Copenhagen Reverse Roadshow – Danske Bank 31 August 2016 I 8 Financial highlights Q2 2016 Revenue EUR 553.2m (Q2 2015: EUR 600.4m), impacted by Profit after tax EUR 20.2m (Q2 2015: EUR -27.9m) lower revenue in NKT Cables Working capital amounted to EUR 318.8m and LTM at 15.4% Organic growth Q2

  9. Slide 9: Planning assumptions

    NKT I Copenhagen Reverse Roadshow – Danske Bank 31 August 2016 I 9 Overall outlook 2016 maintained, underlying assumptions specified 2016 Original Specified Q2 NKT - Organic growth ~ 0% Unchanged - Operational EBITDA, %* On par with 2015 (~ 9.4%) Unchanged Nilfisk - Organic growth 0 - 5% 1 - 3% Plan

  10. Slide 10: Operational EBITDA impacted by lower revenue in NKT Cables

    NKT I Copenhagen Reverse Roadshow – Danske Bank 31 August 2016 I 10 Operational EBITDA impacted by lower revenue in NKT Cables ​Operational EBITDA, LTM EURm 200 9.6% 180 9.4% 9.6% 9.3% 10% 8.4% 160 Operational EBITDA margin, 140 8% LTM, decreased to 9.3% (Q1 2016: 9.6%) 120 6% 100 This is compared w

  11. Slide 11: Changes Q2 2016 vs. Q2 2015

    NKT I Copenhagen Reverse Roadshow – Danske Bank 31 August 2016 I 11 Changes Q2 2016 vs. Q2 2015 EURm 2016 2015 Change 2015 01 EURm Revenue 553.2 600.4 -47.2 2,223.6 *01 Revenue, std.metal prices 485.5 494.8 -9.3 1,869.2 Revenue decreased by -47.2 Metal prices -37.9 Operational EBITDA 52.9 59.5 -6.6

  12. Slide 12: Agenda

    NKT I Copenhagen Reverse Roadshow – Danske Bank 31 August 2016 I 12 Agenda Introduction to NKT Highlights Q2 2016 Business units • Nilfisk • NKT Cables • NKT Photonics Questions & Answers

  13. Slide 13: Nilfisk

    NKT I Copenhagen Reverse Roadshow – Danske Bank 31 August 2016 I 13 Nilfisk

  14. Slide 14: Nilfisk organic growth of 3% in Q2 driven by EMEA

    NKT I Copenhagen Reverse Roadshow – Danske Bank 31 August 2016 I 14 Nilfisk organic growth of 3% in Q2 driven by EMEA Americas below expectations Organic growth 2013 2014 2015* 2016 - Quarterly (Y/Y) 1% 4% 7% 1% 9% 4% 0% 9% 0% 0% 4% -2% -1% 3% - Annually 3% 6% 0% 1% Americas EMEA APAC Q2 2016 -4% Q2

  15. Slide 15: Earnings increased due to improved margin and reduced overhead cost ratio

    NKT I Copenhagen Reverse Roadshow – Danske Bank 31 August 2016 I 15 Earnings increased due to improved margin and reduced overhead cost ratio ​Operational EBITDA, QTR EURm 35 11.9% 11.7% 10.4% 12% 10.2% 30 10.1% Gross margin increased to 10% 41.2% (Q2 2015: 40.9%), 25 driven by all regions and 8% re

  16. Slide 16: ACCELERATE+: Four organisational elements to secure growth

    NKT I Copenhagen Reverse Roadshow – Danske Bank 31 August 2016 I 16 ACCELERATE+: Four organisational elements to secure growth Get closer to the customers Customer orientation 1 Accountability 2 Empower the organisation Simplify 3 Speed and agility 4

  17. Slide 17: ACCELERATE+: Simpler and more agile organisation focused on sales

    NKT I Copenhagen Reverse Roadshow – Danske Bank 31 August 2016 I 17 ACCELERATE+: Simpler and more agile organisation focused on sales Focused sales organisations Global Portfolio Support operations management + EMEA Americas APAC functions R&D Premium Business areas • Sourcing (High-end) • Productio

  18. Slide 18: ACCELERATE+: Identified EUR 35m cost savings

    NKT I Copenhagen Reverse Roadshow – Danske Bank 31 August 2016 I 18 ACCELERATE+: Identified EUR 35m cost savings Expected one-off costs for Expected one-off costs for Cost savings impact savings new organisational structure Full EBITDA impact 2019 Total by 2019 Total by 2019 EUR 35m EUR 35m EUR 5m •

  19. Slide 19: New organisational structure and improved organic growth and earnings

    NKT I Copenhagen Reverse Roadshow – Danske Bank 31 August 2016 I 19 New organisational structure and improved organic growth and earnings ​Financials ​Highlights and summary Q2 1st half FY EURm 2016 2015 2016 2015 2015 • Growth of 3% overall driven by strong increase in EMEA of 7% with Americas belo

  20. Slide 20: NKT Cables

    NKT I Copenhagen Reverse Roadshow – Danske Bank 31 August 2016 I 20 NKT Cables

  21. Slide 21: Overall organic growth in line with expectations

    NKT I Copenhagen Reverse Roadshow – Danske Bank 31 August 2016 I 21 Overall organic growth in line with expectations Products grew by 9% while Projects was impacted by current project portfolio Organic growth 2013 2014 2015 2016 - Quarterly (Y/Y) 4% 10% -2% 4% 6% -11% 1% -12% 16% 13% -12% 2% -24% -1

  22. Slide 22: Projects' revenue decrease driven by calculation change and less civil works

    NKT I Copenhagen Reverse Roadshow – Danske Bank 31 August 2016 I 22 Projects' revenue decrease driven by calculation change and less civil works Projects revenue bridge*, Q2 2015 to Q2 2016 EURm 90 10 Changed in method for 7 completion calculation in Q1 2015 8 impacts comparison 15 51 Less civil wor

  23. Slide 23: Operational EBITDA down due to lower revenues

    NKT I Copenhagen Reverse Roadshow – Danske Bank 31 August 2016 I 23 Operational EBITDA down due to lower revenues ​Operational EBITDA, QTR EURm 35 12% 30 10% 9.0% 9.3% Operational EBITDA 8.0% 8.2% 25 decreased to EUR 21.5m 8% (Q2 2015: EUR 32.7m) 20 5.6% 6% 15 Driven by lower revenue and profitabili

  24. Slide 24: Products' profitability improvement continued, Projects better than expected

    NKT I Copenhagen Reverse Roadshow – Danske Bank 31 August 2016 I 24 Products' profitability improvement continued Projects better than expected Business unit profitability development* Index = 100 Products continued profitability improvement in Q2 2016 and is expected to improve further Projects del

  25. Slide 25: Products business continued positive growth and earnings trend in Q2 2016

    NKT I Copenhagen Reverse Roadshow – Danske Bank 31 August 2016 I 25 Products business continued positive growth and earnings trend in Q2 2016 ​Financials ​Highlights and summary Q2 1st half FY • Positive growth in Products, driven especially by EURm 2016 2015 2016 2015 2015 Central Europe, but also

  26. Slide 26: NKT Photonics

    NKT I Copenhagen Reverse Roadshow – Danske Bank 31 August 2016 I 26 NKT Photonics

  27. Slide 27: Satisfactory organic growth of 9% driven by Sensing & Energy

    NKT I Copenhagen Reverse Roadshow – Danske Bank 31 August 2016 I 27 Satisfactory organic growth of 9% driven by Sensing & Energy Imaging & Metrology Sensing & Energy Material Processing Focused growth area Established area New growth area • Existing Imaging & Metrology segment • Strong growth across

  28. Slide 28: Integration of Fianium and Lios progressed as planned

    NKT I Copenhagen Reverse Roadshow – Danske Bank 31 August 2016 I 28 Integration of Fianium and Lios progressed as planned Integration of Fianium, the recent UK-based acquisition within ultra- fast lasers, going well and synergies are realised as planned Integration of Lios, the German- New based ent

  29. Slide 29: Satisfactory growth and integration proceeding as expected

    NKT I Copenhagen Reverse Roadshow – Danske Bank 31 August 2016 I 29 Satisfactory growth and integration proceeding as expected ​Financials ​Highlights and summary Q2 1st half FY • Good growth in all segments with Sensing EURm 2016 2015 2016 2015 2015 showing strong growth Revenue 8.9 8.5 16.1 17.1 4

  30. Slide 30: Agenda

    NKT I Copenhagen Reverse Roadshow – Danske Bank 31 August 2016 I 30 Agenda Introduction to NKT Highlights Q2 2016 Business units • Nilfisk • NKT Cables • NKT Photonics Questions & Answers

  31. Slide 31: Financial calendar

    NKT I Copenhagen Reverse Roadshow – Danske Bank 31 August 2016 I 31 Financial calendar 2016 11 November Interim Report, Q3 2017 1 March 2016 Annual Report For list of Investor Relations events, go to www.nkt.dk

  32. Slide 32: Appendix

    NKT I Copenhagen Reverse Roadshow – Danske Bank 31 August 2016 I 32 Appendix

  33. Slide 33: Working capital reduction continued, primarily driven by NKT Cables

    NKT I Copenhagen Reverse Roadshow – Danske Bank 31 August 2016 I 33 Working capital reduction continued, primarily driven by NKT Cables ​Working capital development Q2-2015 Q2-2016 22% 16.9% 15.4% EUR 374m EUR 319m 20% 20.2% 20.2% 19.6% Nilfisk Working capital ratio, LTM 18% reduced to 15.4% (Q1 201

  34. Slide 34: Strong operating cash flow of EUR 28.7m

    NKT I Copenhagen Reverse Roadshow – Danske Bank 31 August 2016 I 34 Strong operating cash flow of EUR 28.7m Q2 FY EURm 2016 2015 2015 EBITDA 50.8 54.9 152.0 Financial items, net -2.9 -2.8 -6.1 Operating cash flow of Change in working capital -9.0 -37.9 41.7 Other EUR 28.7m due to change in -10.2 -9.

  35. Slide 35: Net interest-bearing debt still low, impacted by share buyback programme

    NKT I Copenhagen Reverse Roadshow – Danske Bank 31 August 2016 I 35 Net interest-bearing debt still low, impacted by share buyback programme ​Net interest-bearing debt EURm Q1-2016 Q2-2016 450 0.9x 1.1x 3x 400 EUR 159m EUR 188m 350 1.9x 300 2x Positive free cash flow, offset 250 by share buyback pro

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