Nkt A/s · OMXCOP:NKT
Nkt A/s — Q2 2005 Earnings Presentation
36 slides from Nkt A/s's earnings presentation, Aug 25, 2005
Slide 1: Second Quarter 2005
NKT Holding Second Quarter 2005 Thursday, August 25th, 2005
Slide 2: Agenda
NKT Holding A/S Financial Results 2 Quarter 2005 1 Half 2005 Intended share buy-back Companies Nilfisk-Advance Group NKT Cables Group NKT Photonics Group NKT Flexibles Expectations 2005 Q & A session Agenda
Slide 3: Management change
NKT Holding A/S Management change Tom Knutzen steps down as CEO as of December 31st, 2005 Thomas Hofman-Bang, CFO, new CEO as of January 1st, 2006 Executive management team will be reduced from 3 to 2 as a consequence of A more focused Group structure Well functioning management teams in Nilfisk-Adv
Slide 4: Agenda
NKT Holding A/S Financial Results 2 Quarter 2005 1 Half 2005 Intended share buy-back Companies Nilfisk-Advance Group NKT Cables Group NKT Photonics Group NKT Flexibles Expectations 2005 Q & A session Agenda
Slide 5: Financial results – Q2
NKT Holding A/S 2004 2005 Change Revenue 1.855 2.292 437 24% EBITDA 145 206 61 42% Depreciation (54) (49) 5 EBIT 91 157 66 73% Restructuring charges (127) (32) 95 Financial items (11) 1 12 Tax (11) (21) (10) Net result (58) 105 163 EBIT-margin 4,9% 6,8% Financial results – Q2
Slide 6: Financial results – Q2 revenue bridge
NKT Holding A/S 2004 Metal FX- Acqui- 2005 Nominal Organic Q2 prices/ impact sitions Growth Q2 growth growth trade NKT Cables 728 44 17 81 870 19,5% ~10% Nilfisk-Advance 1.103 -10 201 100 1.394 26,4% ~9% NKT Photonics 19 10 29 52,6% ~53% Others 5 -6 -1 Total Revenue 1.855 44 7 201 185 2.292 23,6% ~1
Slide 7: Nilfisk-Advance EBITDA and organic growth
NKT Holding A/S Organic growth (Y/Y) - Quarterly 6,6% 3,3% 5,2% 6,8% 8,2% 10,4% 7,8% 6,2% 2,3% 9,1% - Annually ~5% ~7% ~6% Nilfisk-Advance 150 10,2% 10,4% 9,9% 12,0% 9,6% 9,7% 9,5% 9,2% 9,0% 9,0% 8,6% 130 7,8% 10,0% EBITDA (mDKK) 110 8,0% EBITDA% 90 6,0% 70 50 4,0% 30 60 70 72 59 75 77 100 93 101 10
Slide 8: NKT Cables EBITDA and organic growth
NKT Holding A/S Organic growth (Y/Y) - Quarterly 3% 3% 3% 0% 10% 4% 4% 7% 3% 10% - Annually 3% 7% 7% NKT Cables 6,1% 6,0% 6,2% 6,1% 7,0% 5,9% 5,8% 5,9% 5,7% 90 EBITDA (mDKK) 6,0% 4,7% 4,7% 70 EBITDA% 3,9% 5,0% 50 4,0% 30 3,0% 28 18 49 66 33 22 64 70 36 23 62 10 2,0% Q3-03 Q4-03 Q1-04 Q3-04 Q2-04 Q4-
Slide 9: Gearing
NKT Holding A/S Gearing mDKK 2004 2005 0 Net Interestbearing Debt -200 ~8% -400 ~20% -600 -800 Actual Forecast without share buy-back Forecast with share buy-back Financial results – Q2
Slide 10: Financial results – 1. Half 2005
NKT Holding A/S 2004 2005 Change Revenue 3.159 4.158 999 32% EBITDA 213 334 121 57% Depreciation (99) (100) (1) EBIT 114 234 120 105% Restructuring charges (127) (35) 92 Financial items (11) (14) (3) Tax (17) (28) (11) Net result (41) 157 198 EBIT-margin 3,6% 5,6% Financial results – 1. Half 2005
Slide 11: Financial results – 1. Half 2005 revenue bridge
NKT Holding A/S 2004 Metal FX- Acqui- 2005 Nominal Organic 1. Half prices/ impact sitions Growth 1. Half growth growth trade NKT Cables 1.306 87 22 99 1.514 15,9% ~7% Nilfisk-Advance 1.806 -18 685 116 2.589 43,4% ~6% NKT Photonics 38 16 54 42,1% ~42% Others 9 -8 1 Total Revenue 3.159 87 4 685 223 4.
Slide 12: EBITDA by company, 1. Half 2005
NKT Holding A/S mDKK 2004 2005 Change EBITDA (excl. restruc. costs) 213 334 121 57% Other 1 NKT Flexibles 7 NKT Photonics Group 11 NKT Integration 22 NKT Cables 2 Nilfisk-Advance 78 0 25 50 75 100 Financial results – 1. Half 2005
Slide 13: Share price development
NKT Holding 260 250 Share price since 1/1/2005 +60% 240 KFX index since 1/1/2005 +29% 230 Daily turnover since 1/1/2005 16,7 mDKK 220 210 - same period last year 6,7 mDKK 200 190 180 170 NKT Holding KFX rebased 160 150 140 130 120 110 100 03 04 30 04 04 29 4 4 4 30 4 4 30 4 4 4 4 28 5 30 5 5 30 5 5
Slide 14: Agenda
NKT Holding A/S Financial Results 2 Quarter 2005 1 Half 2005 Intended share buy-back Companies Nilfisk-Advance Group NKT Cables Group NKT Photonics Group NKT Flexibles Expectations 2005 Q & A session Agenda
Slide 15: Intended share buy-back
NKT Holding A/S A Declaration of Intent has been signed with Potagua Kapital to Buy back NKTH shares at market price for ~276 mDKK Corresponds to approx. 1.090.000 shares or 4,45 % of share capital Will allow Potagua Kapital to enter into solvent liquidation (subject to their EGA) NKTH will increase
Slide 16: Agenda
NKT Holding A/S Financial Results 2 Quarter 2005 1 Half 2005 Intended share buy-back Companies Nilfisk-Advance Group NKT Cables Group NKT Photonics Group NKT Flexibles Expectations 2005 Q & A session Agenda
Slide 17: Nilfisk-Advance Group
Nilfisk-Advance Group - Organic growth on track - Development as planned
Slide 18: Nilfisk-Advance Q2 financial performance
Nilfisk-Advance Group Turnover 1.394 mDKK in Q2 2005 Up 26 % compared to Q2 2005 Corresponds to 9 % organic growth in Q2 2005 Year-to-date organic growth 6 % Progress in all regions except Australia (consumer vacs / drought) EBITDA 151 mDKK excl. one-offs equal to 10,8 % margin (9,1%) One-off relate
Slide 19: Nilfisk-Advance activities
Nilfisk-Advance Group Continued expansion of market coverage Karkone, distributor in Finland, was acquired (12 empl./20 mDKK turnover) Åmål relocation to new site in Hungary progressing according to plan ALTO integration on track Plant relocations from Germany and Denmark to Hungary and China almost
Slide 20: ALTO integration on track (continued)
Nilfisk-Advance Group ALTO integration on track (continued) Consolidation of two US plants initiated. Production of industrial machines at Bowling Green, Ohio, to be transferred to Plymouth, Minnesota Relocation of Ecologica assembly site to main site in Italy in progress Challenge to compensate for
Slide 21: Nilfisk-Advance guidance for full year 2005
Nilfisk-Advance Group Expectation for full year 2005 Turnover in the level of 5 bnDKK – back to original guidance Organic growth around 5 % - up from around 3 % EBIT in the level of 7 % (unchanged) Excl. 35 mDKK one-off costs concerning Åmål relocation Guidance
Slide 22: NKT Cables Group
NKT Cables Group - Satisfactory growth - Continued metal price increases a challenge
Slide 23: NKT Cables Q2 financial performance
NKT Cables Group Turnover 870 mDKK in Q2 2005 Up 20 % compared to Q2 2005 Growth influenced by higher metal prices Corresponds to 10 % organic growth in Q2 2005 Year-to-date organic growth 7 % Margins continue to be under pressure due to higher metal prices EBITDA 62 mDKK equal to 7,1 % margin (8,4
Slide 24: Metal prices
NKT Cables Group The copper price continues to go up +15 % from Q2 2004 to Q2 2005 in EUR (+22 % in USD) USD / ton source : London Metal Exchange The price fluctuations have an impact on the purchase patterns among some wholesalers in some markets Metal prices
Slide 25: NKT Cables activities
NKT Cables Group ` Satisfactory growth in ` Catenary wires (railway business) ` LV products in eastern European markets (margins under pressure) ` Order intake for HV-business ` Export business in general ` Stable development for MV-business ` Investment program in Poland & Czech is progressing as p
Slide 26: NKT Cables guidance 2005
NKT Cables Group ` Expectations for full year 2005 ` Turnover in the level of 3,2 bnDKK ` Up from in the level of 3 bnDKK ` Organic growth adjusted for metal prices and exchange rates ` Around 4 % (up from around 3 %) ` EBIT-margin in the level of 4 % (unchanged) Guidance
Slide 27: NKT Photonics Group
NKT Photonics Group - Development according to plan
Slide 28: NKT Photonics Group Q2 2005
NKT Photonics Group Q2 2005 Turnover of 29 mDKK (17 mDKK in Q2 2004 excl. NKTI) EBITDA (4) mDKK vs. (9) mDKK in Q2 2004 excl. NKTI Satisfactory order intake and activity level in general Minor challenge in LG, Germany, related to specific customer Improved prospects for applications using our compon
Slide 29: NKT Flexibles (51%)
NKT Flexibles (51%) - Continued improvement
Slide 30: Key figures Q2 and 1H 2005
NKT Flexibles Turnover Q2 :126 mDKK - up from 49 mDKK in 2004 1H : 212 mDKK - up from 81 mDKK in 2004 EBITDA at NKT Flexibles (100%) Q2 : 8 mDKK - up from 3 mDKK in 2004 1H : 8 mDKK - up from (7) mDKK in 2004 NKTH 51% share of net result Q2 : (1) mDKK - up from (3) mDKK in 2004 1H : (5) mDKK - up fr
Slide 31: Development – turnover & order intake
NKT Flexibles 2003 2004 1. half 2005 mDKK 420 800 355 700 Q2 550 197 212 605 600 500 65 397 Q1 400 250 305 300 200 99 100 44 0 Backlog Order Turnover Backlog Order Turnover Backlog Order Turnover Backlog end intake 2003 end intake 2004 end intake 1H 2005 end June 2002 2003 2003 2004 2004 1H 2005 200
Slide 32: NKT Flexibles guidance
NKT Flexibles Good visibility well into 2006 Continued high bidding activity in all markets Improvement in plant efficiency due to high load Order execution on track Development program for ultra deep water applications on track Guidance for 2005 slightly improved NKTH's share of net result now expe
Slide 33: Agenda
NKT Holding A/S Financial Results 2 Quarter 2005 1 Half 2005 Intended share buy-back Companies Nilfisk-Advance Group NKT Cables Group NKT Photonics Group NKT Flexibles Expectations 2005 Q & A session Agenda
Slide 34: Expectations 2005 - assumptions
NKT Holding ` Group structure as of August 2005 ` Includes announced restructuring project in Nilfisk-Advance concerning Åmål - expected costs 35 mDKK to be expensed in 2005 accounts ` Current – Exchange rates – Interest rate levels – Metal and raw material prices ` Present economical climate ` No m
Slide 35: Expectations 2005
NKT Holding *) ` Turnover around 5 bnDKK up ` Organic growth 5 % up ` EBIT ~7 % excl. 35 mDKK restructuring Åmål plant same ` Turnover ~ 3,2 bnDKK up ` Organic growth 4 % up ` EBIT ~ 4% same ` Turnover ~100 mDKK same ` EBITDA ~(10) mDKK same ` Net result (NKT share 51%) ~(10) mDKK up ` Turnover ~8,3
Slide 36: Questions & Answers
NKT Holding Questions & Answers Q&A