Interim Financial Report, 1st quarter 2009

NKT HOLDING A/S, 12 MAY 2009, ANNOUNCEMENT NO. 10With consolidated revenue of 2,635 mDKK and operational EBITDA of 147 mDKK,developments in 1st quarter 2009 were on a par with expectations. Although theeconomic downturn is having a negative effect, operating activities generatedpositive cash flow of 167 mDKK and market shares are being won byNilfisk-Advance SUMMARYOverall organic growth of -12% and a fall in operating income (EBITDA) of 158mDKK were realized in 1st quarter 2009. This equated with an EBITDA margin of6.3%, as compared with 11.3% in 1st quarter 2008. Collectively, the resultsrealized were in accordance with the expectations for 1st quarter 2009. Expectations for 2009 are unchanged compared with stock market announcement no.5 issued on 5 March 2009. Operating income (EBITDA) of around 700-900 mDKK istherefore still expected. NKT Cables realized negative organic growth of 14%, primarily caused by thegeneral economic slowdown that has resulted in a substantial fall of 25% insales of low voltage products to the building and construction sector. Sales tothe high voltage sector and sales of catenary wires particularly, which in 1stquarter 2009 were up by 48% on the same period in 2008, are having positiveinfluence, however. Operating income (EBITDA) measured in standard metal priceswas 1.5% for 1st quarter 2009 compared with 10.4% for the same period in 2008.Construction of the new high voltage factory in Cologne is proceeding to planand pilot production began in April. In January, NKT Cables signed a 750 mDKKcontract for the supply of high and medium voltage armoured subsea cables, andin March the company signed a conditional joint venture agreement concerningproduction and sale of high voltage cables in China. Nilfisk-Advance realized organic growth of -12%, the negative trend beingequally pronounced in all regions. Despite the lower utilization of capacitythe company succeeded in maintaining its gross profit in the 1st quarter.Operational EBITDA margin was 8% for 1st quarter 2009 compared with 10.4% forthe same period in 2008. The implementation of a large number of structural andadjustment measures, previously referred to, is proceeding to plan. One effectof these measures has been to reduce the number of employees by more than 700(14%) compared with the same time in 2008. Around 20 mDKK was spent on thesemeasures in the 1st quarter. 1st quarter cash flow from operating activities was satisfactory, 167 mDKK, ascompared with -250 mDKK in the same period last year. The improvement waspartly attributable to a 1st quarter reduction in consolidated working capitalof 161 mDKK. Interest bearing debt at 31 March 2009 was 2.3 bnDKK, which wassimilar to the end of 2008. NKT's capital resources have been further increasedin 2009 and are adequate at the present time, cf. Fig. 3 page 4.