Nkt A/s · OMXCOP:NKT
Nkt A/s — Shareholder Meeting (March 2014)
35 slides from Nkt A/s's shareholder meeting presentation, Mar 25, 2014
Slide 1: NKT Annual General Meeting
NKT I Annual General Meeting 2014 25 March 2014 I 1 NKT ANNUAL GENERAL MEETING 25 March 2014
Slide 2: 2013 in NKT
NKT I Annual General Meeting 2014 25 March 2014 I 2 2013 in NKT Board of Directors • New structure in NKT • Change of management in Nilfisk-Advance • Efficiency improvement programme in NKT Cables NKT Holding • Substantial orders in Photonics Group Nilfisk-Advance NKT Cables Photonics Group
Slide 3: Income statement 2013
NKT I Annual General Meeting 2014 25 March 2014 I 3 Income statement 2013 Amounts in mDKK 2013 2012 Change Operational EBITDA, LTM Revenue 15,809 15,253 556 mDKK Revenue in std. metal prices 12,843 12,148 695 1.200 1,200 1,085 1.085 Operational EBITDA 1,085 1,039 46 1.039 1,039 One-off’s 18 -30 48 1
Slide 4: Strong liquidity reserves
NKT I Annual General Meeting 2014 25 March 2014 I 4 Strong liquidity reserves Amounts in bnDKK 2013 2012 Refinancing of bank facilities Committed total 5.9 5.1 provide substantial financial flexibility and the Uncommitted total 1.0 1.5 availability to operate and Total 6.9 6.6 further develop the bu
Slide 5: Expectations 2013
NKT I Annual General Meeting 2014 25 March 2014 I 5 Expectations 2013 Expected Updated Realised mDKK 2013 Q3 2013 2013 Revenue, std. metal prices ~12,148 12,843 • NKT realised expectations for 2013 Organic growth 0% 2-4% 4% • Growth in terms of Operational EBITDA ~1,039 1,085 revenue and earnings Ca
Slide 6: 25 March 2014 I 6
NKT I Annual General Meeting 2014 25 March 2014 I 6
Slide 7: New governance structure in NKT
NKT I Annual General Meeting 2014 25 March 2014 I 7 New governance structure in NKT Board of Directors Working committee Chairman Member Nilfisk- Lars Sandahl Sørensen Jens Due Olsen Advance Michael Hedegaard Lyng NKT Holding Kristian Siem NKT Cables Jens Due Olsen Michael Hedegaard Lyng Photonics J
Slide 8: Managements in the NKT Group
NKT I Annual General Meeting 2014 25 March 2014 I 8 Managements in the NKT Group NKT Holding NKT Cables Michael Hedegaard Lyng Marc van’t Noordende Henrik Bøggild Detlev Waimann Peter Becker Group Executive Director & CFO President & CEO President & CFO President, BU Projects President, BU Products
Slide 9: NKT's strategy based on global megatrends
NKT I Annual General Meeting 2014 25 March 2014 I 9 NKT’s strategy based on global megatrends Global megatrends Business opportunities Urbanisation, rising welfare and increased Automated cleaning processes/new environmental focus in growth markets professional cleaning equipment Investments in reli
Slide 10: Return on invested capital (RoCE)
NKT I Annual General Meeting 2014 25 March 2014 I 10 Return on invested capital (RoCE) 2013 Target 6.7% 15-20% 8% 7% 6% 5% 4% 2013 3% Nilfisk-Advance: 17.5% NKT Cables: 0.8% 2% 1% 0% 2012 2013
Slide 11: Strategy
NKT I Annual General Meeting 2014 25 March 2014 I 11 Strategy
Slide 12: Expectations 2014
NKT I Annual General Meeting 2014 25 March 2014 I 12 Expectations 2014 EXPECTATIONS 2014 2014 Assumptions NKT •A consolidated organic growth of - Organic growth 0-3% around 0-3% - Operational EBITDA, std. metal prices 9-9.5% •Operational EBITDA margin in std. Nilfisk-Advance metal prices of 9-9.5% c
Slide 13: Distribution of revenue by business area
NKT I Annual General Meeting 2014 25 March 2014 I 13 Distribution of revenue by business area Photonics Group 266 mDKK 2% NKT Cables Nilfisk-Advance 57% 41% 8,983 mDKK 6,561 mDKK
Slide 14: SC1500 stand-on scrubber
NKT I Annual General Meeting 2014 25 March 2014 I 14 SC1500 stand-on scrubber
Slide 15: New CEO of Nilfisk-Advance
NKT I Annual General Meeting 2014 25 March 2014 I 15 New CEO of Nilfisk-Advance Jonas Persson (1969) President & CEO 2009-2013: Assa Abloy, member of Group Management and Head of Asia-Pacific Division 1999-2009: Nolato 1994-1999: Alfa Laval Group MSc. in Engineering from Lund University, Sweden
Slide 16: Nilfisk-Advance
NKT I Annual General Meeting 2014 25 March 2014 I 16 Nilfisk-Advance
Slide 17: Nilfisk-Advance
NKT I Annual General Meeting 2014 25 March 2014 I 17 Nilfisk-Advance 5% 11% 11% 9% 19% 64% 43% 57% 32% 25% 24% Sales by products Sales by customers Sales by geography Floor care Commercial market EMEA Vacuum cleaners Industrial market Americas High pressure washers Private consumer market APAC Servi
Slide 18: Nilfisk-Advance
NKT I Annual General Meeting 2014 25 March 2014 I 18 Nilfisk-Advance Financials 2013 highlights mDKK 2013 2012 • EMEA and Americas: Growth mainly driven by the mature markets Revenue 6,561 6,491 - Organic growth 3% 0% • APAC: Sales negatively impacted by challenges in China Operational EBITDA 778 77
Slide 19: Nilfisk-Advance
NKT I Annual General Meeting 2014 25 March 2014 I 19 Nilfisk-Advance Sales units in EMEA 45 countries • Austria Americas • Belgium APAC • Argentina • Czech Republic • Australia Dealers in • Brazil • China • Canada • Denmark • Finland • Hong Kong 70+ countries • Chile • France • India • Mexico • Germ
Slide 20: NKT Cables
NKT I Annual General Meeting 2014 25 March 2014 I 20 NKT Cables 7% 0% 15% 0% 28% 28% 33% 28% 43% 16% 57% 21% 24% Sales by Business Unit Sales by geography Sales by fields of application BU Projects Denmark Utilities BU Products Germany Wholesalers BU APAC Eastern Europe Industry Asia Other, primaril
Slide 21: NKT Cables
NKT I Annual General Meeting 2014 25 March 2014 I 21 NKT Cables Financials 2013 highlights mDKK 2013 2012 • BU Projects: Increased revenue partly due to Revenue 8,983 8,526 high voltage projects - Revenue, std. metal prices 6,017 5,421 - Organic growth 4% -4% • BU APAC: Growth in the Railway segment
Slide 22: DRIVE: Background and targets
NKT I Annual General Meeting 2014 25 March 2014 I 22 DRIVE: Background and targets The European power cable market DRIVE targets: continues to be under pressure: • Increase earnings • Affected by downturn • Strengthen competitiveness • Overcapacity • Improved value creation in terms of NKT Cables’ m
Slide 23: DRIVE programme three phases
NKT I Annual General Meeting 2014 25 March 2014 I 23 DRIVE programme three phases DRIVE - First phase 2016/17+ 2015/16 III 2014/15 II I ‘Get fit’ ‘Be excellent’ ‘Grow for value’ Reduce costs Improve sales and margins Introduce new products Reduce complexity Excellence in production, sales Enter new
Slide 24: Effect of DRIVE
NKT I Annual General Meeting 2014 25 March 2014 I 24 Effect of DRIVE Cost FTE reduction One-off costs Investments improvements Impact ~100 mDKK ~200 ~180 mDKK ~50 mDKK 2014 Full impact 400-450 going into ~300 mDKK 25% white collars ~240 mDKK ~50 mDKK 2016 75% blue collars
Slide 25: Drejeskive
NKT I Annual General Meeting 2014 25 March 2014 I 25 Drejeskive
Slide 26: The factory in Falun, Sweden
NKT I Annual General Meeting 2014 25 March 2014 I 26 The factory in Falun, Sweden
Slide 27: Photonics Group
NKT I Annual General Meeting 2014 25 March 2014 I 27 Photonics Group Sales by products 19% Imaging 44% Sensing Fiber Processing 37% Imaging Fiber Processing Sensing
Slide 28: Photonics Group
NKT I Annual General Meeting 2014 25 March 2014 I 28 Photonics Group Financials 2013 highlights mDKK 2013 2012 • Growth supplied by Imaging and Sensing. Revenue 266 237 Low level of activity in Fiber Processing - Organic growth 13% 10% EBITDA 6 9 • Changed emphasis away from focus on research enviro
Slide 29: Xxx xxx
NKT I Annual General Meeting 2014 25 March 2014 I 29 Xxx xxx
Slide 30: 25 March 2014 I 30
NKT I Annual General Meeting 2014 25 March 2014 I 30
Slide 31: Proposed remuneration for Board of Directors
NKT I Annual General Meeting 2014 25 March 2014 I 31 Proposed remuneration for Board of Directors Amounts in 1,000 DKK 2014 2013 Chairman (3x base amount) 900 900 Deputy Chairman (2x base amount) 600 450 Other directors, each member (base amount) 300 300 Audit Committee - (Chairman 200 and member 10
Slide 32: Employee-elected Board members
NKT I Annual General Meeting 2014 25 March 2014 I 32 Employee-elected Board members Niels-Henrik Dreesen Gitte Toft Nielsen René Engel Kristiansen Production Engineering Manager Finance Assistant Regional Sales Manager NKT Cables Nilfisk-Advance NKT Photonics
Slide 33: Proposed dividend
NKT I Annual General Meeting 2014 25 March 2014 I 33 Proposed dividend 2013 2012 Proposed dividend for the financial year per share, DKK 3.5 8.0 Total payment, mDKK 83.8 191.1 Dividend will be paid four bank days after the AGM
Slide 34: Development of the NKT share
NKT I Annual General Meeting 2014 25 March 2014 I 34 Development of the NKT share 400 NKT Holding A/S Increase in OMXC20 CAP 2013 350 35% 300 250 200 150 jan feb mar apr maj jun2013 jul aug sep okt nov dec jan 2014 feb mar
Slide 35: NKT Annual General Meeting
NKT I Annual General Meeting 2014 25 March 2014 I 35 NKT ANNUAL GENERAL MEETING 25 March 2014