Nkt A/s · OMXCOP:NKT
Nkt A/s — Non-Deal Roadshow (November 2015)
38 slides from Nkt A/s's roadshow presentation, Nov 23, 2015
Slide 1: Nordea - Investor roadshow, Switzerland
NKT I Nordea - Investor roadshow - Switzerland 23 November 2015 I 1 NKT Nordea - Investor roadshow Switzerland, 23 November 2015
Slide 2: Forward looking statements
NKT I Nordea - Investor roadshow - Switzerland 23 November 2015 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
Slide 3: Agenda
NKT I Nordea - Investor roadshow - Switzerland 23 November 2015 I 3 Agenda Highlights Q3 2015 Business units • Nilfisk • NKT Cables • Photonics Group Outlook 2015 Questions & Answers
Slide 4: Highlights Q3 2015
NKT I Nordea - Investor roadshow - Switzerland 23 November 2015 I 4 Highlights Q3 2015 NKT Q3 overall performance as expected Slightly increased operational EBITDA 2015 outlook updated: organic growth Successful Capital Markets Day held on 23 margin despite organic growth declining continues to be
Slide 5: Financial highlights Q3 2015
NKT I Nordea - Investor roadshow - Switzerland 23 November 2015 I 5 Financial highlights Q3 2015 Revenue DKK 3,900m (Q3 2014: DKK 3,946m) Profit after tax DKK 72m (Q3 2014: DKK 60m) Organic growth Q3 2015 YTD 2015 Working capital amounted to DKK 2.6bn and LTM at 16.4% (Q3 2014: DKK 3.0bn and 18.7%)
Slide 6: Operational EBITDA slightly improved
NKT I Nordea - Investor roadshow - Switzerland 23 November 2015 I 6 Operational EBITDA slightly improved Operational EBITDA, LTM DKKm 1,500 12% 1,200 10% Oper. EBITDA, LTM, increased 900 to DKK 1,421m 8% (end-June 2015: DKK 1,415m) 600 Oper. EBITDA margin, LTM, 6% 300 increased to 10.3% (end-Ju
Slide 7: Changes Q3 2015 vs. Q3 2014
NKT I Nordea - Investor roadshow - Switzerland 23 November 2015 I 7 Changes Q3 2015 vs. Q3 2014 DKKm Q3 2015 Q3 2014 Change 01 DKKm Revenue decreased by -46 Revenue 3,900 3,946 -46 *01 Metal prices -46 Revenue, std. metal prices 3,268 3,281 -13 FX changes 92 Acquisitions 42 Operational EBITDA 276 27
Slide 8: Working capital improvement continues and at lowest level since 2010
NKT I Nordea - Investor roadshow - Switzerland 23 November 2015 I 8 Working capital improvement continues and at lowest level since 2010 Working capital Q3 2014 Q3 2015 % of revenue In NKT Cables, working capital 23.0% 18.7% 16.4% ratio, LTM, continued to decline DKK 3,049m* DKK 2,641m* to 13.0% f
Slide 9: Free cash flow increased due to lower working capital and divestment
NKT I Nordea - Investor roadshow - Switzerland 23 November 2015 I 9 Free cash flow increased due to lower working capital and divestment DKKm Q3 2015 Q3 2014 YTD 2015 YTD 2014 FY2014 Earnings, EBITDA 240 226 892 744 1,061 Interest, net -26 -21 -31 -73 -99 Change in working capital 61 -16 -33 -127 76
Slide 10: Solid capital structure assures flexibility
NKT I Nordea - Investor roadshow - Switzerland 23 November 2015 I 10 Solid capital structure assures flexibility Net interest-bearing debt DKKm Q3 2014 Q3 2015 5,000 4.5x • Capital structure targets unchanged 4,500 4,000 1.8x 0.9x - Debt ratio 2,5x operational EBITDA DKK 2,089m DKK 1,248m 3.5x (Q3
Slide 11: Change of presentation currency
NKT I Nordea - Investor roadshow - Switzerland 23 November 2015 I 11 Change of presentation currency Change from DKK to EUR • NKT's Board of Directors has decided to change NKT's presentation currency from DKK to EUR • Decision due to main business activities being denominated in EUR and all intern
Slide 12: Agenda: Business units
NKT I Nordea - Investor roadshow - Switzerland 23 November 2015 I 12 Agenda Highlights Q3 2015 Business units • Nilfisk • NKT Cables • Photonics Group Outlook 2015 Questions & Answers
Slide 13: Nilfisk
NKT I Nordea - Investor roadshow - Switzerland 23 November 2015 I 13 Nilfisk
Slide 14: Nilfisk realised 3% growth in Q3 driven by EMEA and APAC
NKT I Nordea - Investor roadshow - Switzerland 23 November 2015 I 14 Nilfisk realised 3% growth in Q3 driven by EMEA and APAC Americas still not satisfactory Nilfisk Organic growth 2012 2013 2014 2015 - Quarterly (Y/Y) 4% 1% -4% 1% 1% 4% 7% 1% 9% 4% 0% 9% -2% 0% 3% - Annually 0% 3% 6% 0% (YTD) Ameri
Slide 15: Operational EBITDA margin remain below expectations
NKT I Nordea - Investor roadshow - Switzerland 23 November 2015 I 15 Operational EBITDA margin remain below expectations Nilfisk - Operational EBITDA DKKm 11.7% 11.7% 12.0% 11.9% 11.9% 11.7% 12.1% 11.9% 10.9% 250 14% 11.8% 11.7% Oper. EBITDA margin, Q3, 11.8% 11.1% 11.7% 13% 10.9% 200 of 9.3% (end-
Slide 16: Accelerate strategy continued with launch of new initiatives
NKT I Nordea - Investor roadshow - Switzerland 23 November 2015 I 16 Accelerate strategy continued with launch of new initiatives Accelerate Growing our company to lead the industry Grow market share Strengthen Drive competitive Build strong Power front-end offerings brands supply chain performance
Slide 17: Strengthen front-end: Actively consolidating the industry
NKT I Nordea - Investor roadshow - Switzerland 23 November 2015 I 17 Strengthen front-end M&A agenda: Actively consolidating the industry Recent Nilfisk acquisitions, last 12 months Contractor (UK) Leading floorcare service company Three focus areas 1. Market access and Gesco (B) service capabilitie
Slide 18: US acquisition opens up new market opportunities
NKT I Nordea - Investor roadshow - Switzerland 23 November 2015 I 18 Strengthen front-end M&A case: US acquisition opens up new market opportunities Hydro Tek • Founded 1985, California, US • Manufacturing and sales of commercial high pressure washers Acquisition of Hydro Tek • Cold and hot water fu
Slide 19: Power supply chain performance
NKT I Nordea - Investor roadshow - Switzerland 23 November 2015 I 19 Power supply chain performance Supply chain delivery back on track, but distribution cost remain high Status on temporary delivery issues • Strong supply chain performance in Q3 • On-time delivery at all-time-high levels • Global
Slide 20: Drive competitive offerings
NKT I Nordea - Investor roadshow - Switzerland 23 November 2015 I 20 Drive competitive offerings Four strong product launches in Q3 and award won Steffen: Update text accordingly to picture Highlight - Two new upright scrubber dryers Award won - VP600 commercial vacuum cleaner • “Nilfisk SC100” an
Slide 21: Nilfisk realised organic growth of 3% in Q3
NKT I Nordea - Investor roadshow - Switzerland 23 November 2015 I 21 Nilfisk realised organic growth of 3% in Q3, driven by EMEA and APAC regions Operational EBITDA margin below expectations Financials Highlights and summary Q3 YTD DKKm 2015 2014 2015 2014 • Sales: Q3 growth (3%) driven by EMEA (4%
Slide 22: NKT Cables
NKT I Nordea - Investor roadshow - Switzerland 23 November 2015 I 22 NKT Cables
Slide 23: NKT Cables Group Management Team strengthened
NKT I Nordea - Investor roadshow - Switzerland 23 November 2015 I 23 NKT Cables Group Management Team strengthened Michael H. Lyng Roland Andersen Detlev Waimann Lika Thiesen Oliver Schlodder President & CEO EVP & CFO EVP EVP EVP High voltage & Projects Human Resources Strategy & Specialties
Slide 24: Growth impacted by production timing in Projects
NKT I Nordea - Investor roadshow - Switzerland 23 November 2015 I 24 Growth impacted by production timing in Projects APAC impacted by lower railway sales NKT Cables 2012 2013 2014 2015 Organic growth - Quarterly (Y/Y) -13% -4% 0% 0% 4% 10% -2% 4% 6% -11% 1% -12% 16% 13% -12% - Annually -4% 4% -5% 5
Slide 25: Operational EBITDA of DKK 109m impacted by lower revenue
NKT I Nordea - Investor roadshow - Switzerland 23 November 2015 I 25 Operational EBITDA of DKK 109m impacted by lower revenue NKT Cables - Operational EBITDA DKKm 10.2% 10.3% 300 12% 8.6% 250 10% 8.0% Oper. EBITDA of DKK 109m, 6.6% 5.7% 200 8% a decrease of DKK 25m 5.5% 6.1% 5.6% (Q3 2014: DKK 134m
Slide 26: DRIVE has achieved DKK 308m in cost improvements year to date
NKT I Nordea - Investor roadshow - Switzerland 23 November 2015 I 26 DRIVE has achieved DKK 308m in cost improvements year to date Cost improvements FTE reduction One-off costs Capex Q3 2015 realised DKK 111m 26 FTE DKK 36m DKK 0m Year to date DKK 308m 74 FTE DKK 100m DKK 6m DKK 425m Project to date
Slide 27: Transformation started in 2013
NKT I Nordea - Investor roadshow - Switzerland 23 November 2015 I 27 Transformation started in 2013 EXCELLENCE 2020 covers next two phases 2016/17+ 2015/16+ III 2014/15+ II I 'Get fit' 'Be excellent' 'Accelerate growth' Main focus: Main focus: Main focus: Cost (DRIVE) Profitability Targeted growth E
Slide 28: EXCELLENCE 2020 strategic targets
NKT I Nordea - Investor roadshow - Switzerland 23 November 2015 I 28 EXCELLENCE 2020 Strategic targets to measure improvement Be the best… in the eyes of our customers …and our people RoCE Customers' Employee trust index >15% preferred >80% choice
Slide 29: EXCELLENCE 2020 Four group-wide must-win battles
NKT I Nordea - Investor roadshow - Switzerland 23 November 2015 I 29 EXCELLENCE 2020 Four group-wide must-win battles • Safe workplace and environment Safety, people & • Lean and agile organisation organisation • Excellent leadership skills Operational & • Lean operations, admin and support function
Slide 30: Clear strategic initiatives for each segment
NKT I Nordea - Investor roadshow - Switzerland 23 November 2015 I 30 EXCELLENCE 2020 Clear strategic initiatives for each segment Develop and grow Focus on profitability Turnaround Attractive markets with growth potential: Fragmented commodity markets under Markets we believe in, but with a need to
Slide 31: Growth and margin impacted by production timing in Projects
NKT I Nordea - Investor roadshow - Switzerland 23 November 2015 I 31 Growth and margin impacted by production timing in Projects Financials Highlights and summary Q3 YTD • New EXCELLENCE 2020 business strategy: Defines DKKm 2015 2014 2015 2014 roadmap towards RoCE >15% Revenue 2,102 2,322 6,928 6,5
Slide 32: Photonics Group
NKT I Nordea - Investor roadshow - Switzerland 23 November 2015 I 32 Photonics Group
Slide 33: Both Imaging and Sensing experienced significant growth
NKT I Nordea - Investor roadshow - Switzerland 23 November 2015 I 33 Both Imaging and Sensing business areas experienced significant growth Imaging Sensing • Solid growth in Q3 • Good order intake despite oil & gas market setback • OEM sponsored manufacturing development projects on • Pipeline sec
Slide 34: Significant organic growth in Q3 driving improvement in operational EBITDA
NKT I Nordea - Investor roadshow - Switzerland 23 November 2015 I 34 Significant organic growth in Q3 driving improvement in operational EBITDA Financials Highlights Q3 YTD • High growth: Imaging and Sensing both experience high DKKm 2015 2014 2015 2014 organic growth in Q3 Revenue 81 65 208 197 -
Slide 35: Agenda: Outlook 2015
NKT I Nordea - Investor roadshow - Switzerland 23 November 2015 I 35 Agenda Highlights Q3 2015 Business units • Nilfisk • NKT Cables • Photonics Group Outlook 2015 Questions & Answers
Slide 36: Outlook for 2015 updated
NKT I Nordea - Investor roadshow - Switzerland 23 November 2015 I 36 Outlook for 2015 updated Outlook 2015 Original Update in Q2 Update in Q3 NKT - Organic growth Up to 3% ~3% Unchanged For full year 2015, NKT expects - Operational EBITDA Increase of up to Increase of DKK ~1,300m • Organic growth ar
Slide 37: Agenda: Questions & Answers
NKT I Nordea - Investor roadshow - Switzerland 23 November 2015 I 37 Agenda Highlights Q3 2015 Business units • Nilfisk • NKT Cables • Photonics Group Outlook 2015 Questions & Answers
Slide 38: Financial calendar
NKT I Nordea - Investor roadshow - Switzerland 23 November 2015 I 38 Financial calendar 2016 26 February 2015 Annual Report 3 March Deadline for receipt of resolutions for the AGM 31 March Annual General Meeting 12 May Interim Report, Q1 18 August Interim Report, Q2 11 November Interim Report, Q3 20