Interim financial report - 1st quarter 2008

14 May 2008, announcement 17Interim financial report- 1st quarter 2008SUMMARY - SOUND START TO 2008With Group revenue of 3,366 mDKK (+8%), operating income (EBIT) of 226 mDKK(+18%) and Group net income before tax of 184 mDKK (+15%), satisfactoryprogress has been made in comparison with the same period in 2007. Despiteuncertain market conditions, and signs of slowdown in a small sector in theNorth American market, 1st quarter developments may be described as “businessas usual”. These developments are in harmony with our expectations, and based on a highlyfavourable 1st quarter for NKT Flexibles, expected Group net income before taxhas been revised upwards from previously 900 mDKK to around 950 mDKK. Overall organic growth development for the Group was as expected in 1st quarter2008 and amounted to 4%. This development was based on organic growth of 4% forboth NKT Cables and Nilfisk-Advance. Growth at NKT Cables was influenced by thesupply of a major high voltage project being postponed until later in the year.Growth at Nilfisk-Advance was influenced by Easter falling in the 1st quarterin the case of 2008, rather than in the 2nd quarter as in 2007. The effect hasbeen evidenced by abnormally high growth in April 2008. NKT Photonics Groupmade a slow start to the year, and NKT Flexibles (51%) had a strong 1st quarterwith organic growth of 37%. Since the close of the 1st quarter two important framework agreements have beensigned. On 24 April we announced that NKT Cables had been chosen as a supplierto an Extra High Voltage Project in the Netherlands with an expected completiondate of 2010. And on 5 May we announced that NKT Flexibles had signed agroundbreaking framework agreement with Brazil's largest oil company to supplyoffshore pipes in the period 2009-2011. Details are contained in the companyreviews. Revised expectations for 2008Predicted organic growth in full-year revenue remains around 7%, which is basedon unchanged expectations for NKT Cables (8%), Nilfisk-Advance (5%) and NKTPhotonics (30%). Based on current metal prices this corresponds to anticipatedrevenue of around 14.8 bnDKK, as against 14.5 bnDKK previously forecast. Based on 1st quarter developments at NKT Flexibles, and the fact that forecastscan now be made for the rest of the year with less uncertainty than at thestart, we have adjusted our expectations with regard to Group net income beforetax from around 900 mDKK previously to around 950 mDKK.