Nkt A/s · OMXCOP:NKT
Nkt A/s — Q3 2013 Earnings Presentation
34 slides from Nkt A/s's earnings presentation, Nov 20, 2013
Slide 1: Interim Report Q3 2013
NKT I IR presentation I Interim Report Q3 2013 20 November 2013 I 1 NKT Interim Report Q3 2013 Webcast, 20 November 2013 at 10:00 am CET
Slide 2: Forward looking statements
NKT I IR presentation I Interim Report Q3 2013 20 November 2013 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, m
Slide 3: Agenda
NKT I IR presentation I Interim Report Q3 2013 20 November 2013 I 3 Agenda Highlights Q3 2013 Financial results Q3 2013 Business units NKT Cables Nilfisk-Advance Photonics Group Expectations 2013 Questions & Answers
Slide 4: Highlights Q3 2013
NKT I IR presentation I Interim Report Q3 2013 20 November 2013 I 4 Highlights Q3 2013 Q3 2013 showed continued growth and earnings in line with expectations • Revenue increased compared to 2012 both organically and as a consequence of the acquisition of the Ericsson energy cables activities in the
Slide 5: Agenda
NKT I IR presentation I Interim Report Q3 2013 20 November 2013 I 5 Agenda Highlights Q3 2013 Financial results Q3 2013 Business units NKT Cables Nilfisk-Advance Photonics Group Expectations 2013 Questions & Answers
Slide 6: Financial results Q3 2013
NKT I IR presentation I Interim Report Q3 2013 20 November 2013 I 6 Financial results Q3 2013 Q3 Revenue 4.077 mDKK (Q3 2012: 3.816 mDKK). Q1-Q3 Earnings before tax (EBT) amount to Q1-Q3 Revenue 11.624 mDKK (Q1-Q3 2012: 11.251 218 mDKK (Q1-Q3 2012: 149 mDKK) mDKK) Q3 Profit after tax amounts to 53 m
Slide 7: Q3 continuing the positive trend in Operational EBITDA
NKT I IR presentation I Interim Report Q3 2013 20 November 2013 I 7 Q3 continuing the positive trend in Operational EBITDA Operational EBITDA, LTM • Negative organic 1.200 10% Q3 Operational growth of EBITDA of 2% for 2012 257 mDKK, increased LTM EBITDA to •1.073 mDKK margin std. LTM 900 2012 of 8,1
Slide 8: Changes Q3 2013 vs. Q3 2012
NKT I IR presentation I Interim Report Q3 2013 20 November 2013 I 8 Changes Q3 2013 vs. Q3 2012 mDKK Q3 2013 Q3 2012 Change 01 mDKK Revenue increased by 261 Revenue 4.077 3.816 261 *01 Metal prices -53 Revenue, std. metal prices 3.282 3.036 246 FX changes -81 Acquisitions 305 *02 3% organic growth 9
Slide 9: Changes Q1-Q3 2013 vs. Q1-Q3 2012
NKT I IR presentation I Interim Report Q3 2013 20 November 2013 I 9 Changes Q1-Q3 2013 vs. Q1-Q3 2012 mDKK Q1-Q3 2013 Q1-Q3 2012 Change 01 mDKK Revenue increased by 373 Revenue 11.624 11.251 373 *01 Metal prices -164 Revenue, std. metal prices 9.405 8.921 484 FX changes -123 Acquisitions 305 Operati
Slide 10: Cash conversion rate improved
NKT I IR presentation I Interim Report Q3 2013 20 November 2013 I 10 Cash conversion rate improved Cash conversion, LTM Q3 2012 Q3 2013 mDKK 1.500 68% 77% 200% As of September 2013 cash conversion rate was 77%, LTM (Q2 2013: 47%) 150% 1.000 100% Cash conversion rate was 500 50% particularly influenc
Slide 11: Working capital improvement driven by NKT Cables
NKT I IR presentation I Interim Report Q3 2013 20 November 2013 I 11 Working capital improvement driven by NKT Cables Working Capital (in % of revenue) Q3 2012 Q3 2013 WC decreased to 19,8% 20,4% 19,8% vs. 19,9% end Q2 2013 (LTM) 3.186 mDKK 3.272 mDKK 24,0% NKT Cables decreased to 20,0% vs. 20,3% en
Slide 12: NKT Cables Projects division hides positive development
NKT I IR presentation I Interim Report Q3 2013 20 November 2013 I 12 NKT Cables Projects division hides positive development Working Capital (change by business unit ) 3.500 1 The increase in Nilfisk-Advance 483 working capital has returned to 3.000 normalised level from a low 153 point in YE12 – al
Slide 13: Free cash flow turned positive despite acquisition of cables activities
NKT I IR presentation I Interim Report Q3 2013 20 November 2013 I 13 Free cash flow turned positive despite acquisition of cables activities Q1-Q3 Q1-Q3 mDKK Q3 2013 Q3 2012 2013 2012 Earnings, EBITDA 241 239 737 696 Decrease in funds tied Interest, net -36 -44 -124 -155 Change in working capital 19
Slide 14: Leverage ratio close to target despite acquisition and dividend
NKT I IR presentation I Interim Report Q3 2013 20 November 2013 I 14 Leverage ratio close to target despite acquisition and dividend Net interest bearing debt (relative to operational EBITDA) Q3 2012 Q3 2013 2,8x 2,6x NIDB of 2.753 mDKK (2,6x Operational EBITDA) vs. 2.839 2.751 mDKK 2.753 mDKK mDKK
Slide 15: Sufficient financing to support our strategy
NKT I IR presentation I Interim Report Q3 2013 20 November 2013 I 15 Sufficient financing to support our strategy Est. post Cash resources available bnDKK re-financing 30.09.13 31.12.12 Committed (>3 years) 2,0 0,3 3,7 • Total of 3,4 bnDKK available, undrawn Committed (1-3 years) 3,7 3,7 0,4 facilit
Slide 16: Agenda
NKT I IR presentation I Interim Report Q3 2013 20 November 2013 I 16 Agenda Highlights Q3 2013 Financial results Q3 2013 Business units NKT Cables Nilfisk-Advance Photonics Group Expectations 2013 Questions & Answers
Slide 17: NKT Cables
NKT I IR presentation I Interim Report Q3 2013 20 November 2013 I 17 NKT Cables ‘NKT Cables is creating value for its customers by providing solutions with cables’
Slide 18: NKT Cables overview
NKT I IR presentation I Interim Report Q3 2013 20 November 2013 I 18 NKT Cables overview Sales entities Manufacturing companies and Sales companies 5% 7% 4% 24% 25% 5% 30% 47% 19% 13% 67% 26% 28% Sales by fields of application Sales by geography Sales by customers Electricity Infrastructure Denmark
Slide 19: Operational EBITDA stable from Q3 2012
NKT I IR presentation I Interim Report Q3 2013 20 November 2013 I 19 Operational EBITDA stable from Q3 2012 NKT Cables - Operational EBITDA, LTM Realised -2% organic growth in Q3 2013 (Q1-Q3: 4%) 160 • Electricity Infrastructure -11% 7,4% 14% 140 (Q1-Q3: 5%) 12% • Railway 61% (Q1-Q3: 44%) 5,5% 5,3%
Slide 20: NKT Cables Q3 in slight organic decline, but earnings stable
NKT I IR presentation I Interim Report Q3 2013 20 November 2013 I 20 NKT Cables Q3 in slight organic decline, but earnings stable Highlights Operational Q3 2013 Q3 Q1-Q3 2013 2012 2013 2012 • Electricity Infrastructure: Negative development was due Revenue 2.456 2.247 6.492 6.243 to low sales of med
Slide 21: Nilfisk-Advance
NKT I IR presentation I Interim Report Q3 2013 20 November 2013 I 21 Nilfisk-Advance ‘We enable sustainable cleaning worldwide to improve quality of life’
Slide 22: Nilfisk–Advance overview
NKT I IR presentation I Interim Report Q3 2013 20 November 2013 I 22 Nilfisk–Advance overview Sales entities Manufacturing companies 7% 13% 11% 8% 18% 42% 62% 51% 25% 38% 25% Sales by products Sales by geography Sales by customers Floor care EMEA Commercial market Vacuum cleaners Americas Industrial
Slide 23: Stable earnings despite gross profit pressure
NKT I IR presentation I Interim Report Q3 2013 20 November 2013 I 23 Stable earnings despite gross profit pressure Nilfisk-Advance - Operational EBITDA, LTM Realised 7% organic growth 11,9% 250 14% in Q3 2013 (Q1-Q3: 4%) 11,7% 10,5% 11,7% 11,0% 11,8% 11,6% 11,8% 11,9% 10,6% • EMEA 8% (Q1-Q3: 5%) 11,
Slide 24: Nilfisk-Advance continue strong growth by gaining market share
NKT I IR presentation I Interim Report Q3 2013 20 November 2013 I 24 Nilfisk-Advance continue strong growth by gaining market share Financial Operational Q3 2013 Q3 Q1-Q3 mDKK 2013 2012 2013 2012 • EMEA: Continued to gain market share, through benefitting Revenue 1.556 1.517 4.952 4.846 from its dis
Slide 25: Gross profit pressured by change in sales mix and price pressure...
NKT I IR presentation I Interim Report Q3 2013 20 November 2013 I 25 Gross profit pressured by change in sales mix and price pressure... Gross profit, LTM (%) Gross profit percentage, LTM, Q3 2011 Q3 2012 Q3 2013 continues to decline due to 46% 45% 41,3% 42,2% 41,0% changed sales mix and price press
Slide 26: ... but compensated by lower overhead costs
NKT I IR presentation I Interim Report Q3 2013 20 November 2013 I 26 ... but compensated by lower overhead costs Overhead costs, LTM (%) An increased and constant Q3 2011 Q3 2012 Q3 2013 focus on reducing overhead 33,2% 33,3% 31,9% 38% costs paying off as overhead 37% costs as percentage of 36% reve
Slide 27: Photonics Group
NKT I IR presentation I Interim Report Q3 2013 20 November 2013 I 27 Photonics Group ‘To lead the way in transforming the Photonics Industry’
Slide 28: Photonics Group overview
NKT I IR presentation I Interim Report Q3 2013 20 November 2013 I 28 Photonics Group overview Sales by products 27% Imaging 35% Sensing Fiber Processing 38% All data based on FY 2012 HQ NKT Photonics HQ Lios Technology HQ Vytran
Slide 29: Continued strong growth from Imaging and Sensing
NKT I IR presentation I Interim Report Q3 2013 20 November 2013 I 29 Continued strong growth from Imaging and Sensing Photonics Group - Revenue, LTM 300 Q3 2013 saw 25% growth despite that Fiber Processing equipment 250 activity remained low 200 Imaging continues to increase revenue and order intake
Slide 30: Photonics Group sees strong order intake to fuel continued growth
NKT I IR presentation I Interim Report Q3 2013 20 November 2013 I 30 Photonics Group sees strong order intake to fuel continued growth Highlights Operational Q3 2013 • Imaging: Order intake continues to grow from both Q3 Q1-Q3 mDKK 2013 2012 2013 2012 industrial and R&D customers Revenue 62 51 179 1
Slide 31: Agenda
NKT I IR presentation I Interim Report Q3 2013 20 November 2013 I 31 Agenda NKT – Highlights Q3 2013 Financial results Q3 2013 Companies NKT Cables Nilfisk-Advance Photonics Group Expectations 2013 Questions & Answers
Slide 32: Updated expectations 2013
NKT I IR presentation I Interim Report Q3 2013 20 November 2013 I 32 Updated expectations 2013 The expectations for 2013 are updated from the forecast in the 2012 Annual Report and Interim Report Q2/2013. In earlier statements, forecast revenue in standard metal prices has been on par with 2012. Bas
Slide 33: Agenda
NKT I IR presentation I Interim Report Q3 2013 20 November 2013 I 33 Agenda Highlights Q3 2013 Financial results Q3 2013 Companies NKT Cables Nilfisk-Advance Photonics Group Expectations 2013 Questions & Answers
Slide 34: Financial calendar
NKT I IR presentation I Interim Report Q3 2013 20 November 2013 I 34 Financial calendar 2014 25 February Deadline for receipt of AGM agenda proposals 28 February Annual Report 2013 25 March Annual General Meeting 14 May Interim Report Q1 20 August Interim Report Q2 13 November Interim Report Q3 2015