Changed earnings expectations for 2008

NASDAQ OMX CopenhagenNikolaj Plads 6DK-1007 Copenhagen K18 December 2008Release No. 22Changed earnings expectations for 2008NKT Holding A/S has reduced its forecast earnings for 2008 as a consequence ofdevelopments in November and updated earnings expectations for December.Forecast Group net income before tax and restructuring costs is now around 725mDKK, which is 50 mDKK lower than notified previously. From this amount must be deducted costs for restructuring. These costs havepreviously been reported as being approximately 125 mDKK, which includes 75mDKK relating to NKT Cables and 50 mDKK relating to Nilfisk-Advance. Inaddition, the decision has been taken in December to close the small businessNanon which carries out surface modification of plastics. It is estimated thatthe closure will result in write-downs and winding-up costs amounting to around10 mDKK. Forecast total restructuring costs are thereafter around 135 mDKK. Total net income before tax and after restructuring costs is thus expected tobe on the low side of 600 mDKK, as against 650 mDKK previously. The assessment of forecast earnings is based on the assumption that impairmenttesting performed in connection with the closing of the annual accounts willnot result in write-down of Group assets. There are at present no indicationsof impairment of group assets, but final verification of course awaitcompletion of the year-end audit. BackgroundThe NKT Group's last earnings forecast was published in interim financialreport 3/2008. This was based on realised earnings development for the periodJanuary - October 2008 and on expected earnings for the remaining two months. Forecast earnings for the year, after inclusion of the month of November, arestated below: 1.	Nilfisk-Advance realised a nominal revenue decrease in November of 14% inrelation to the same period last year. After adjustment for the effect ofexchange rates, the fall in revenue was 17%. In comparison October showed adecline of 3% and for December a decline in the level of 10% is expected. This development reflects a sharp slowdown in demand in all main markets, whichfar exceeds our previous expectations. The underlying cause is the globaleconomic situation, including the financial crisis. Both factors have led toincreased focus by all players in the value chain on reducing capital tie-up instocks. The trend is expected to continue in December, and against thatbackground the forecast full-year revenue for Nilfisk-Advance is now 5.9 bnDKK,as against 6.0 bnDKK previously. Expectations with regard to profit margin arechanged and are now expected to be on the low side of 7.5% 2.	As expected, NKT Cables realised flat organic growth in November. Againstthis background, expectations with regard to full-year revenue, measured instandard metal prices, are unchanged at around 5.0 bnDKK. It is no longer possible to realise the profit margin of around 7.5% - 8.0%previously forecasted. The main reason is the sharply and rapidly falling metalprices and exchange rates that have temporarily reduced the contribution ratioin a number of markets. After allowing for this, forecast profit margin for theyear is around 7%. 3.	The decision has been taken to close down the company Nanon, whose businessis surface modification of special plastics. Despite unique technology, acommercially sustainable platform has been unable to be created. Nanon, whichin the most recent interim financial reports has been included within the NKTHolding segment, realised an operating loss (EBIT) of 7 mDKK for the first 10months. The closure decision follows a long and unsuccessful search by NKT Holding tofind a new owner for Nanon. At the end of November it was expected that a salecould be completed, but the potential buyer withdrew. The closure will lead to15 redundancies, and activities currently in progress will be wound up over themonths ahead. The closure will result in write-downs and closure costs ofaround 10 mDKK. Intensified reportingIn a departure from normal practice, the Board of Directors of NKT Holding A/Shas decided to intensify the publication of earnings forecasts for as long asmacro-economic and financial market conditions are as uncertain and volatile asis currently the case. It is thus intended to supplement this release with an update on 6 February2009 when results for December are known and when overview has been obtained ofthe year's closing financial entries.  The up-date is also expected to includeannouncement of further restructuring measures. The annual report for 2008 willbe published on 5 March 2009 as previously stated. Further informationMore information can be obtained by emailing the undersigned [email protected] or calling +45 4348 2000. Kind regards,NKT Holding A/S,Thomas Hofman-Bang,CEO