Nkt A/s · OMXCOP:NKT
Nkt A/s — Q1 2005 Earnings Presentation
29 slides from Nkt A/s's earnings presentation, May 12, 2005
Slide 1: First Quarter 2005
NKT Holding First Quarter 2005 Thursday, May 12th, 2005
Slide 2: Agenda
NKT Holding NKT Group structure Financial Results First Quarter 2005 Companies Nilfisk-Advance Group NKT Cables Group NKT Photonics Group NKT Flexibles Expectations 2005 Q & A session Agenda
Slide 3: NKT Group Structure May 2005
NKT Holding A/S NKT Holding A/S Nilfisk- NKT NKT Advance Cables Photonics Group Group Group • Europe • Central Europe • Crystal Fibre • North America • Eastern Europe • KOHERAS • Asia • Northern Europe • LIOS Technology • Oceania • China • NKT Research & Innovation • Nanon NKT Flexibles (51%) NKT Gr
Slide 4: Share price development
NKT Holding 240 230 Share price since 1/1/2005 +44% 220 KFX index since 1/1/2005 +11% 210 Daily turnover since 1/1/2005 17,0 mDKK 200 - same period last year 6,4 mDKK 190 180 170 160 150 NKT Holding KFX rebased 140 130 120 110 100 4 4 4 4 4 4 4 4 4 5 5 5 5 3 04 04 04 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0
Slide 5: Agenda
NKT Holding NKT Group structure Financial Results First Quarter 2005 Companies Nilfisk-Advance Group NKT Cables Group NKT Photonics Group NKT Flexibles Expectations 2005 Q & A session Agenda
Slide 6: Financials – Q1 2005
NKT Holding Continued operations DK IAS/ IAS/ Gaap IFRS IFRS Q1 NKT Goodwill Disc. Q1 Q1 mDKK 2004 Flexibles amorts. business Other 2004 2005 Change Revenue 1430 -32 -94 1304 1866 562 EBITDA 71 1 -2 -2 68 125 57 Depreciation -67 6 15 1 -45 -51 -6 EBIT 4 7 15 -1 -2 23 74 51 Financial items -1 1 0 -15
Slide 7: Revenue
NKT Holding 2004 Metal FX- Acqui- 2005 Nominal Organic Q1 prices/ impact sitions Growth Q1 growth growth trade NKT Cables 578 43 5 18 644 11,4% 3,1% Nilfisk-Advance 703 -8 484 16 1.195 70,0% 2,3% NKT Photonics 19 6 25 31,6% 31,6% Others 4 -2 2 1.304 43 -3 484 38 1.866 43,1% 2,9% ` Revenue up 562 mDK
Slide 8: EBITDA – Nilfisk-Advance
NKT Holding Incl. ALTO 10,2% 10,4% 9,9% 9,6% 9,7% 9,5% 12,0% 9,0% 9,0% 8,6% 90 EBITDA (mDKK) 7,8% 10,0% EBITDA% 70 8,0% 6,0% 50 4,0% 30 60 70 72 59 75 77 100 93 101 101 2,0% 10 0,0% Q1-04 Q2-04 Q3-04 Q3-03 Q4-03 Q4-02 Q1-03 Q2-03 Q4-04 Q1-05 EBITDA – Nilfisk-Advance
Slide 9: EBITDA – NKT Cables
NKT Holding 6,1% 6,2% 6,1% 7,0% 5,9% 6,0% 5,9% 5,8% EBITDA (mDKK) 90 6,0% 4,7% 4,7% EBITDA% 70 3,9% 5,0% 50 4,0% 30 3,0% 28 18 49 66 33 22 64 70 36 23 10 2,0% Q3-03 Q4-03 Q1-04 Q2-04 Q3-04 Q4-02 Q1-03 Q2-03 Q4-04 Q1-05 EBITDA – NKT Cables
Slide 10: Net interest bearing debt
0 -800 -700 -600 -500 -400 -300 -200 -100 Jul-04 NKT Holding Aug-04 Sep-04 Oct-04 Net interest bearing debt Nov-04 Dec-04 Jan-05 Aktuelt Feb-05 Mar-05 Apr-05 Forecast May-05 Jun-05 Jul-05 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05
Slide 11: Agenda
NKT Holding NKT Group structure Financial Results First Quarter 2005 Companies Nilfisk-Advance Group NKT Cables Group NKT Photonics Group NKT Flexibles Expectations 2005 Q & A session Agenda
Slide 12: Nilfisk-Advance Group
Nilfisk-Advance Group - Development as planned - Focus on ALTO integration
Slide 13: Nilfisk-Advance Group Turnover and EBITDA
Nilfisk-Advance Group Turnover 1.195 mDKK Up 70% compared to Q1 2004 2% organic growth - Progress in all geographical regions - Challenges in consumer vac segment - Åmål restructuring caused product flow issues in Q1 EBITDA 101 mDKK corresponding to margin of 8,5% Up 24 mDKK compared to Q1 200
Slide 14: ALTO integration progressing according to plan
Nilfisk-Advance Group ALTO integration progressing according to plan New assembly plans in Hungary and China are running well Next step is to localize sourcing of components Improve logistical flow – avoid extra freight costs ALTO distribution centre in Hadsund to be consolidated with distri
Slide 15: Continued investment in new markets
Nilfisk-Advance Group Continued investment in new markets Distributor in Hungary acquired during Q1 2005 Continued high investments in new products Innovative and competitive All segments (vacs, HPC, floor care and industrial machines) Strong market and service coverage improves our competitiv
Slide 16: Nilfisk-Advance Group Expectation for full year
Nilfisk-Advance Group Expectation for full year Turnover slightly under 5 bnDKK - down from in the level of 5 bnDKK Organic growth around 3% - down from around 4% EBIT in the level of 7% (unchanged) - Excl. 35 mDKK one-off costs concerning Åmål relocation ALTO synergy potential confirmed Long
Slide 17: NKT Cables Group
NKT Cables Group - Divestment of non core businesses completed - Continued growth
Slide 18: NKT Cables Group Q1 2005 financials
NKT Cables Group Sale of telecom activities in Austria and enamelled wire business in Poland completed The divestment process of non-core activities are hereby completed Odin Kabel in Norway acquired Financials Q1 2005 – on plan Sales 644 mDKK vs. 578 mDKK last year - Organic growth 3% - on par/sl
Slide 19: Copper prices and initiatives moving forward
NKT Cables Group Copper Prices, $/ton JAN-APR 2005 Q1 prices up 14% vs. same quarter last year and up 9% from DEC 04 average to MAR 05 average Initiatives moving forward Consolidation of activities in Poland Investments in improved efficiency of manufacturing facilities, especially in Eastern Eu
Slide 20: NKT Cables Group Expectations for 2005
NKT Cables Group ` Expectations for 2005 Turnover in the level of 3 bnDKK - Up from almost 3 bnDKK Organic growth adjusted for metal prices and exchange rates - Unchanged of around 3% EBIT-margin in the level of 4% - Slightly down from over 4% ` The slightly revised outlook is driven by price
Slide 21: NKT Photonics Group
NKT Photonics Group - Development according to plan
Slide 22: NKT Photonics Group Development according to plan
NKT Photonics Group Development according to plan Turnover 25 mDKK, hereof 5 mDKK one-off EBITDA break-even due to 5 mDKK one-off income KOHERAS and LIOS positive development in order intake Crystal Fibre launches sale of sub-assemblies Increasing number of opportunities for KOHERAS and Crystal Fibr
Slide 23: NKT Flexibles (51%)
NKT Flexibles (51%) - Gradual improvement
Slide 24: NKT Flexibles
NKT Flexibles Turnover 86 mDKK - up from 32 mDKK Q1 2004 EBITDA break-even - up from (10) mDKK Q1 2004 Order intake 65 mDKK during Q1 2005 (book-to-bill 76%) Order backlog end March 2005 amounts to 376 mDKK Positive outlook for the investment level in the offshore oil and gas sector driven by high o
Slide 25: Agenda
NKT Holding NKT Group structure Financial Results First Quarter 2005 Companies Nilfisk-Advance Group NKT Cables Group NKT Photonics Group NKT Flexibles Expectations 2005 Q & A session Agenda
Slide 26: Shares held for sale – AMSC/IMA
NKT Holding A/S Shares in American Superconductor Corporation (AMSC) and Inverness Medical Innovations (IMA) As per IFRS changes in value are recorded over book equity Only effect on income statement when sold Intention is to sell the shares during 2005 – timing related to tax considerations Mar
Slide 27: Expectations 2005 - assumptions
NKT Holding ` Group structure as of March 2005 ` Includes announced restructuring project in Nilfisk-Advance concerning Åmål - expected cost 35 mDKK to be expensed in 2005 accounts ` Expected gain on sale of shares in AMSC and IMA of minimum 20 mDKK is included in Group guidance ` Current Exchange
Slide 28: Expectations 2005
NKT Holding ` Turnover slightly under 5 bnDKK ` Organic growth 3% ` EBIT ~7% excl. 35 mDKK restructuring Åmål plant ` Turnover ~ 3 bnDKK ` Organic growth 3% ` EBIT ~ 4% ` Turnover ~100 mDKK ` EBITDA ~(10) mDKK, incl. 5 mDKK one-off ` Net result (NKT share 51%) ~(15) mDKK ` Turnover ~8 bnDKK ` Group
Slide 29: Questions & Answers
NKT Holding Questions & Answers