Nkt A/s · OMXCOP:NKT
Nkt A/s — Shareholder Meeting (March 2015)
45 slides from Nkt A/s's shareholder meeting presentation, Mar 25, 2015
Slide 1: Annual General Meeting 2015
NKT I Annual General Meeeting 2015 25 March 2015 I 1 Annual General Meeting 2015
Slide 2: Group structure
NKT I Annual General Meeeting 2015 25 March 2015 I 2 Group structure
Slide 3: Key messages
NKT I Annual General Meeeting 2015 25 March 2015 I 3 Key messages Strategic direction set to Nilfisk accelerate - focus on growth value creation NKT Cables NKT’s active ownership - transformation towards improved earnings strengthened Photonics Group - redefined focus on core business
Slide 4: Income statement 2014
NKT I Annual General Meeeting 2015 25 March 2015 I 4 Income statement 2014 Amounts in DKKm 2014 2013 Change Operational EBITDA, LTM Revenue 15,863 15,809 54 Revenue in std. Metal prices 13,180 12,843 337 DKKm 1,400 Operational EBITDA 1,269 1,085 184 1,269 One-off’s -208 18 226 1,200 1,039 1,085 EBIT
Slide 5: Strong financial headroom
NKT I Annual General Meeeting 2015 25 March 2015 I 5 Strong financial headroom Cash resources available of DKK 4.6bn ensure a strong financial headroom for further development of the business units, organically and through acquisitions
Slide 6: Guidance 2014
NKT I Annual General Meeeting 2015 25 March 2015 I 6 Guidance 2014 Expected Realised 2014 2014 Organic growth 0-3% 1% Operational EBITDA 9-9.5% 9.6%
Slide 7: Outlook 2015
NKT I Annual General Meeeting 2015 25 March 2015 I 7 Outlook 2015 Planning assumptions NKT: Nilfisk Consolidated organic growth of - Organic growth ~5% up to 3% - Operationelt EBITDA ~11.7% An improved operational NKT Cables EBITDA margin in std. metal - Organic growth 0% prices of up to 1%-point fr
Slide 8: NKT's active ownership model
NKT I Annual General Meeeting 2015 25 March 2015 I 8 NKT’s active ownership model • Enables efficient and transparent decision-making processes BOARD OF DIRECTORS • Dynamic structure • Supports strategic dialogue BUSINESS • Close co-operation on optimising UNITS value creation GROUP COMMITTEES FUNCT
Slide 9: NKT's strengths
NKT I Annual General Meeeting 2015 25 March 2015 I 9 NKT’s strengths ! COMPETENCES & CAPITAL OPERATIONAL REDUCED TALENT SYNERGIES RISKS • Attract the right • Stronger capital • Global presence • Risk management members to base • Cross Functions • Compliance Board of Directors • Capital market and th
Slide 10: Megatrends
NKT I Annual General Meeeting 2015 25 March 2015 I 10 Megatrends URBANISATION ENERGY SOURCES HELATHCARE DEMAND NILFISK NKT CABLES PHOTONICS GROUP Increased use of Offshore wind farms Early diagnostics of automated cleaning diseases equipment PHOTONICS GROUP Monitoring of power NKT CABLES cables and
Slide 11: NKT's strategic targets
NKT I Annual General Meeeting 2015 25 March 2015 I 11 NKT’s strategic targets Organic growth +15% above the market RoCE Approx. 1/3 of year profit in annual dividend
Slide 12: Strategic themes in business units
NKT I Annual General Meeeting 2015 25 March 2015 I 12 Strategic themes in business units PROFITABILITY GROWTH VALUE CREATION COMMERCIAL SCALE
Slide 13: Nilfisk key messages
NKT I Annual General Meeeting 2015 25 March 2015 I 13 Nilfisk key messages Strong organic growth - new name and corporate brand 6% Commercial Excellence RoCE programme rolled out in 6 countries 17.6% New business strategy
Slide 14: Nilfisk product development
NKT I Annual General Meeeting 2015 25 March 2015 I 14 Nilfisk product develpoment 6 launches 15 launches E.g. compact E.g. walk-behind multifunction machine scrubber dryer Other incl. Floor-care Outdoor High- pressure washers Total 46 product launches 18 launches 7 launches E.g. Nilfisk vacuum clean
Slide 15: Nilfisk revenue
NKT I Annual General Meeeting 2015 25 March 2015 I 15 Nilfisk revenue Customers Regions 10% Private 11% consumer APAC market 34% Revenue 24% Revenue Industrial Americas market DKK 6.8bn 56% DKK 6.8bn 65% Commercial EMEA market
Slide 16: Nilfisk financial highlights
NKT I Annual General Meeeting 2015 25 March 2015 I 16 Nilfisk financial highlights DKKm 2014 2013 Revenue 6,836 6,561 - Organic growth 6% 3% Operational EBITDA 799 778 Operational EBITDA margin 11.7% 11.9% Capital employed 3,283 3,074 RoCE 17.6% 17.5% No. employees, year-end 5,420 5,321 Organic grow
Slide 17: Nilfisk strategy
NKT I Annual General Meeeting 2015 25 March 2015 I 17 Nilfisk strategy New business strategy for the period 2015-2018 • Focus on growth • Commercial Excellence programme • New markets and segments • Service - a growing parameter for growth • Strong brand
Slide 18: NKT Cables key messages
NKT I Annual General Meeeting 2015 25 March 2015 I 18 NKT Cables key messages New Realised DRIVE savings CEO DKK 169m Management structure Operational EBITDA margin changed 5.6% 8.0% 2 major orders RoCE on submarine cables 0.8% 4.2%
Slide 19: NKT Cables key messages - new CEO
NKT I Annual General Meeeting 2015 25 March 2015 I 19 NKT Cables key messages New Michael Hedegaard Lyng (1969) CEO CEO 2007- : NKT Holding A/S Group Executive Director and CFO
Slide 20: NKT Cables key messages
NKT I Annual General Meeeting 2015 25 March 2015 I 20 NKT Cables key messages New Realised DRIVE savings CEO DKK 169m Management structure Operational EBITDA margin changed 5.6% 8.0% 2 major orders RoCE on submarine cables 0.8% 4.2%
Slide 21: NKT Cables' Business Line structure
NKT I Annual General Meeeting 2015 25 March 2015 I 21 NKT Cables’ Business Line structure PROJECTS PRODUCTS APAC HV & Products Products Specialties APAC Projects Nordic Central Europe
Slide 22: NKT Cables highlights
NKT I Annual General Meeeting 2015 25 March 2015 I 22 NKT Cables highlights DKKm 2014 2013 Revenue 8,738 8,983 - Revenue in std. metal prices 6,055 6,017 - Organic growth -5% 4% 10% APAC Operational EBITDA 484 335 25% Projects Operational EBITDA margin (std. metal prices) 8.0% 5.6% Capital employed
Slide 23: DRIVE programme three phases
NKT I Annual General Meeeting 2015 25 March 2015 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 new segme
Slide 24: Impact of DRIVE
NKT I Annual General Meeeting 2015 25 March 2015 I 24 Impact of DRIVE Cost FTE One-off Capex improvements reduction costs Realised DKK~169m 271 DKK 200m DKK12m 2014 Expectations DKK~300m ~180 DKK~120m DKK~40m 2015 Full impact DKK~400m 450 DKK~320m DKK~50m from 2017
Slide 25: Photonics Group key messages
NKT I Annual General Meeeting 2015 25 March 2015 I 25 Photonics Group key messages New business activity EBITDA margin in the US launched to capitalise on growing energy sector 2.3% 7.2% Organic growth Strategic core defined for Sensing and Imaging 9% Strategic alternatives for Fiber Processing expl
Slide 26: Søren Isaksen
NKT I Annual General Meeeting 2015 25 March 2015 I 26 Søren Isaksen
Slide 27: Photonics Group - key products
NKT I Annual General Meeeting 2015 25 March 2015 I 27 Photonics Group - key products DTS - Distributed Temperature Systems SuperKTM fiber laser SENSING IMAGING KoherasTM laser FIBER AeroPULSETM fiber laser PROCESSING GPX - Glass processing equipment
Slide 28: Photonics Group financial highlights
NKT I Annual General Meeeting 2015 25 March 2015 I 28 Photonics Group financial highlights DKKm 2014 2013 Revenue 290 266 - Organic growth 9% 13% EBITDA 20% 21 6 Fiber Processing Capital employed 201 200 No. employees, year-end 209 205 Revenue 43% DKK 290m Imaging Organic growth Imaging 5% 37% Sensi
Slide 29: 25 March 2015 I 29
NKT I Annual General Meeeting 2015 25 March 2015 I 29
Slide 30: Annual General Meeting 2015
NKT I Annual General Meeeting 2015 25 March 2015 I 30 Annual General Meeting 2015
Slide 31: Board of Directors' self-assessment
NKT I Annual General Meeeting 2015 25 March 2015 I 31 Board of Directors' self-assessment Self-assessment supported by external consultant Conclusions: • Efficient Board • The right discussions and conclusions • Meeting structure and materials to be improved
Slide 32: Proposed remuneration for the Board of Directors
NKT I Annual General Meeeting 2015 25 March 2015 I 32 Proposed remuneration for the Board of Directors Amounts in DKK 1,000 2015 2014 Chairman (3x base amount) 900 900 Deputy Chairman (2x base amount) 600 600 Other members, each (base amount) 300 300 Audit Committee - (Chairman 200 and member 100) 3
Slide 33: Nomination of new Board member
NKT I Annual General Meeeting 2015 25 March 2015 I 33 Nomination of new Board member Jutta of Rosenborg Born1958, Denmark. Resident in Luxembourg • Board member of several Danish and international listed companies • Former CFO of ALK-Abelló A/S • Positions and competences that can add to NKT’s value
Slide 34: Proposed dividend
NKT I Annual General Meeeting 2015 25 March 2015 I 34 Proposed dividend 2014 2013 Proposed dividend for the financial year per share, DKK 4.0 3.5 Total payment, DKKm 95.7 83.8 Dividend will be paid four bank days after the AGM
Slide 35: Development in the NKT share price
NKT I Annual General Meeeting 2015 25 March 2015 I 35 Development in the NKT share price 450 Increase in NKT Holding A/S 2014 OMXC20 CAP 400 24% 350 300 250 200 2014 2015
Slide 36: NKT Annual General Meeting
NKT I Annual General Meeeting 2015 25 March 2015 I 36 NKT ANNUAL GENERAL MEETING 25 March 2015
Slide 37: Annual General Meeting 2015
NKT I Annual General Meeeting 2015 25 March 2015 I 37 Annual General Meeting 2015
Slide 38: Technical hitch – we apologise!
NKT I Annual General Meeeting 2015 25 March 2015 I 38 Technical hitch – we apologise!
Slide 39: Ballot paper No. 6
NKT I Annual General Meeeting 2015 25 March 2015 I 39 Ballot paper No. 6
Slide 40: Ballot paper No. 5
NKT I Annual General Meeeting 2015 25 March 2015 I 40 Ballot paper No. 5
Slide 41: Ballot paper No. 4
NKT I Annual General Meeeting 2015 25 March 2015 I 41 Ballot paper No. 4
Slide 42: Ballot paper No. 3
NKT I Annual General Meeeting 2015 25 March 2015 I 42 Ballot paper No. 3
Slide 43: Ballot paper No. 2
NKT I Annual General Meeeting 2015 25 March 2015 I 43 Ballot paper No. 2
Slide 44: Ballot paper No. 1
NKT I Annual General Meeeting 2015 25 March 2015 I 44 Ballot paper No. 1
Slide 45: NKT Annual General Meeting
NKT I Annual General Meeeting 2015 25 March 2015 I 45 NKT ANNUAL GENERAL MEETING 25 March 2015