Nkt A/s · OMXCOP:NKT
Nkt A/s — Q1 2014 Earnings Presentation
32 slides from Nkt A/s's earnings presentation, May 14, 2014
Slide 1: NKT Interim Report Q1 2014
NKT I IR presentation I Interim report Q1 2014 14 May 2014 I 1 NKT Interim Report Q1 2014 Webcast, 14 May 2014 at 10:00 am CET
Slide 2: Forward looking statements
NKT I IR presentation I Interim report Q1 2014 14 May 2014 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, may ca
Slide 3: Introducing today's presenters
NKT I IR presentation I Interim report Q1 2014 14 May 2014 I 3 Introducing today’s presenters NKT Holding Nilfisk-Advance NKT Cables Michael Hedegaard Lyng Jonas Persson Marc van’t Noordende Group Executive President & CEO President & CEO Director & CFO
Slide 4: Agenda: Highlights Q1 2014
NKT I IR presentation I Interim report Q1 2014 14 May 2014 I 4 Agenda Highlights Q1 2014 Business areas • Nilfisk-Advance • NKT Cables • Photonics Group Expectations 2014 Questions & Answers
Slide 5: Highlights Q1
NKT I IR presentation I Interim report Q1 2014 14 May 2014 I 5 Highlights Q1 Solid Q1 performance provide good start to the year • 8% organic growth - with growth across all businesses • Operational EBITDA margin up to 8.0% (vs. 7.6% Q1 ’13, at std metal prices) • Strong cash flow from increased ear
Slide 6: Group financial highlights Q1 2014
NKT I IR presentation I Interim report Q1 2014 14 May 2014 I 6 Group financial highlights Q1 2014 Q1 Revenue 3,865 mDKK (Q1 2013: 3,509 mDKK) Working capital amounts to 2.7 bnDKK (End 2013: 2.8 bnDKK) at 19.8%, LTM vs. 20.2% compared to revenue Organic growth 8% in Q1 2014 Cash flow from operations
Slide 7: Q1 earnings continuing the positive course
NKT I IR presentation I Interim report Q1 2014 14 May 2014 I 7 Q1 earnings continuing the positive course Operational EBITDA, LTM mDKK • Negative organic 1,200 10% growth of 2% for 2012 Q1 Operational EBITDA of • EBITDA 254 mDKK,margin std.LTM increased LTM 900 2012mDKK to 1,122 of 8,1% or 980 8% mD
Slide 8: Changes Q1 2014 vs. Q1 2013
NKT I IR presentation I Interim report Q1 2014 14 May 2014 I 8 Changes Q1 2014 vs. Q1 2013 mDKK Q1 2014 Q1 2013 Change 01 mDKK Revenue increased by 356 Revenue 3,865 3,509 356 *01 Metal prices -12 Revenue, std. metal prices 3,179 2,859 320 FX changes -99 Acquisitions 242 Operational EBITDA 254 217 3
Slide 9: Working capital lowered despite growth
NKT I IR presentation I Interim report Q1 2014 14 May 2014 I 9 Working capital lowered despite growth Working capital End 2013 Q1 2014 19.8% % of revenue 24.0% 20.2% WC decreased to 19,8% vs. 20,2% end 2013 (LTM) 23.0% 2,812 mDKK 2,681 mDKK 22.0% Large projects completed in 21.0% Q1 in NKT Cables re
Slide 10: Nilfisk-Advance at stable level, but significant improvement in NKT Cables
NKT I IR presentation I Interim report Q1 2014 14 May 2014 I 10 Nilfisk-Advance at stable level, but significant improvement in NKT Cables Working capital by business area mDKK 3,500 Nilfisk-Advance working capital up due 3,000 to increased activity 221 -341 1 -12 19.2%* NKT Cables working 2,500 20.
Slide 11: Strong operating cash flow in Q1
NKT I IR presentation I Interim report Q1 2014 14 May 2014 I 11 Strong operating cash flow in Q1 mDKK Q1 2014 Q1 2013 FY2013 Reported EBITDA 296 217 1,103 Interest, net -25 -48 -160 Strong Q1 cash flow from Change in working capital 70 -666 -222 operating activities was Other* -142 -24 -176 mainly e
Slide 12: Leverage ratio reduced to 1.8x Operational EBITDA
NKT I IR presentation I Interim report Q1 2014 14 May 2014 I 12 Leverage ratio reduced to 1.8x Operational EBITDA Net interest bearing debt (x oper. EBITDA) Q1 2013 Q1 2014 mDKK 2.7x 1.8x NIDB of 1,999 mDKK (1.8x operational EBITDA) vs. 2,111 2,776 mDKK 1,999 mDKK 5,000 6.0x mDKK (1.9x operational 4
Slide 13: Agenda: Business areas
NKT I IR presentation I Interim report Q1 2014 14 May 2014 I 13 Agenda Highlights Q1 2014 Business areas • Nilfisk-Advance • NKT Cables • Photonics Group Expectations 2014 Questions & Answers
Slide 14: Nilfisk-Advance
NKT I IR presentation I Interim report Q1 2014 14 May 2014 I 14 Nilfisk-Advance
Slide 15: Growth across all regions
NKT I IR presentation I Interim report Q1 2014 14 May 2014 I 15 Growth across all regions Nilfisk-Advance - Operational EBITDA, LTM mDKK Higher than expected organic growth of 9% in Q1 2014 (Q4: 1%) 11.9% 250 14% 11.9% 12.1% 11.9% 11.7% 10.5% • EMEA 8% (Q4: 5%) 11.7% 11.6% 11.8% 11.8% 10.6% 13% 11.7
Slide 16: Strong growth and increasing margins
NKT I IR presentation I Interim report Q1 2014 14 May 2014 I 16 Strong growth and increasing margins Financial Highlights Q1 • EMEA: Strong growth. Several Southern European mDKK 2014 2013 economies rebounding. Continued double digit growth in Revenue 1,737 1,655 Turkey and Russia - Org. growth 9% 1
Slide 17: Nilfisk-Advance overview
NKT I IR presentation I Interim report Q1 2014 14 May 2014 I 17 Nilfisk–Advance overview Sales entities Manufacturing companies 7% 11% 11% 8% 18% 42% 64% 51% 25% 38% 25% Sales by products Sales by geography Sales by customers Floor care EMEA Commercial market Vacuum cleaners Americas Industrial mark
Slide 18: NKT Cables
NKT I IR presentation I Interim report Q1 2014 14 May 2014 I 18 NKT Cables
Slide 19: Solid Q1 operational performance, but earnings to improve
NKT I IR presentation I Interim report Q1 2014 14 May 2014 I 19 Solid Q1 operational performance, but earnings to improve NKT Cables - Operational EBITDA, LTM mDKK 140 10% Realised 6% organic growth 5.6% in Q1 2014 (Q4: 4%) 5.5% 120 5.3% 4.8% 8% • Projects -7% (Q4: 2%) 5.7% 100 5.4% 5.4% 5.2% • Prod
Slide 20: 6% growth despite lower Projects revenue, Products up 22%
NKT I IR presentation I Interim report Q1 2014 14 May 2014 I 20 6% growth despite lower Projects revenue, Products up 22% Financial Highlights Q1 2014 2013 • DRIVE in full implementation Revenue 2,064 1,799 • Projects: One large offshore contract finalised during Q1 Revenue, std. prices 1,378 1,149
Slide 21: DRIVE implementation on track FY 2014 and full potential re-confirmed
NKT I IR presentation I Interim report Q1 2014 14 May 2014 I 21 DRIVE implementation on track FY 2014 and full potential re-confirmed Cost FTE reduction One-off costs Capex improvements Q1 2014 ~ 20 mDKK ~ 85 FTE 2 (Lower FTE reduction ~26 mDKK 0 mDKK Realized (~100mDKK run-rate)1 number expected in
Slide 22: Strong progress across all saving initiatives
NKT I IR presentation I Interim report Q1 2014 14 May 2014 I 22 Strong progress across all saving initiatives Manufacturing & External Spend Organizational Portfolio Working Capital supply chain • Confirmation of • Levers progressing • Implementation of • Intensive discussion • New inventory policy
Slide 23: DRIVE "GET FIT" examples
NKT I IR presentation I Interim report Q1 2014 14 May 2014 I 23 DRIVE “GET FIT” examples Implementation Lever Focus/Target Summary Status • Improved efficiency • Confirmation of savings potential 1 • Streamlining of processes • Measure implementation started NKT Lean Operations • Reduce complexity •
Slide 24: NKT Cables overview
NKT I IR presentation I Interim report Q1 2014 14 May 2014 I 24 NKT Cables overview Sales entities Manufacturing companies and Sales companies 15% 7% 28% 28% 33% 28% 43% 16% 21% 57% 24% Sales by Business Unit Sales by geography Sales by fields of application BU Projects Denmark Utilities BU Products
Slide 25: Photonics Group
NKT I IR presentation I Interim report Q1 2014 14 May 2014 I 25 Photonics Group
Slide 26: Growth of 19% driven by Sensing and Fiber processing
NKT I IR presentation I Interim report Q1 2014 14 May 2014 I 26 Growth of 19% driven by Sensing and Fiber processing Photonics Group - Revenue, LTM mDKK Imaging: Manufacturing improved 300 and demonstrating stable 250 operation with high throughput 200 Sensing: High activity level for fire detection
Slide 27: Growth momentum sustained, EBITDA improved
NKT I IR presentation I Interim report Q1 2014 14 May 2014 I 27 Growth momentum sustained, EBITDA improved Financial Highlights Q1 • Imaging: Highly successful promotion at Photonics West mDKK 2014 2013 exhibition Revenue 65 55 - Org. growth 19% -6% ‐ Introduced four new product offerings EBITDA 0 -
Slide 28: Photonics Group overview
NKT I IR presentation I Interim report Q1 2014 14 May 2014 I 28 Photonics Group overview Sales by products 19% Imaging Sensing 44% Fiber Processing 37% HQ NKT Photonics HQ Lios Technology HQ Vytran All data based on FY 2013
Slide 29: Agenda: Expectations 2014
NKT I IR presentation I Interim report Q1 2014 14 May 2014 I 29 Agenda Highlights Q1 2014 Business areas • Nilfisk-Advance • NKT Cables • Photonics Group Expectations 2014 Questions & Answers
Slide 30: Maintain expectations for 2014
NKT I IR presentation I Interim report Q1 2014 14 May 2014 I 30 Maintain expectations for 2014 Planning 2014 Assumptions NKT NKT expects a consolidated organic - Organic growth 0 - 3% growth of around 0-3% for 2014 - Operational EBITDA, % std. metal prices 9 – 9,5% Nilfisk-Advance Operational EBITDA
Slide 31: Agenda: Questions & Answers
NKT I IR presentation I Interim report Q1 2014 14 May 2014 I 31 Agenda Highlights Q1 2014 Business areas • Nilfisk-Advance • NKT Cables • Photonics Group Expectations 2014 Questions & Answers
Slide 32: Financial calendar
NKT I IR presentation I Interim report Q1 2014 14 May 2014 I 32 Financial calendar 2014 20 August Interim Report Q2 13 November Interim Report Q3 2015 27 February Annual Report 2014