Interim Report 2nd Quarter 2010

NKT Holding A/S24 August 2010Announcement No. 18Interim Report 2nd Quarter 2010With Group revenue of 3,635 mDKK for 2nd quarter, corresponding to organicgrowth of 5%, the positive trend from 1st quarter 2010 continued. Positivelyinfluenced by Nilfisk-Advance, operational EBITDA for 1st half was 517 mDKK,while developments at NKT Cables' new factory in Cologne not yet has led to asatisfactory productivity SummaryNKT experienced overall a satisfactory 2nd quarter, maintaining the organicgrowth of 5% realized in the 1st quarter, and organic growth for 1st half 2010was also 5%. The performance of Nilfisk-Advance was particularly noteworthy,with 10% organic growth, while NKT Cables did not effect the expected highvoltage production in Cologne and therefore did not achieve satisfactory growthand earnings. Operational EBITDA decreased in 2nd quarter 2010 by 12 mDKK compared with 2ndquarter 2009 and amounted to 517 mDKK for 1st half 2010, an increase of 76 mDKK(1st half 2009: 441 mDKK). On a rolling 12-month basis (LTM), operationalEBITDA was 1,011 mDKK at 30 June 2010 (31 March 2010: 1,023 mDKK),corresponding to an EBITDA margin of 9.8% (31 March 2010: 10.1%). Expectations relating to Group revenue and operational EBITDA remain in linewith the initial announcements and comprise organic growth of approx. 6-10% andoperational EBITDA of approx. 1 bnDKK, respectively. The assumptions are basedon the expectation of a stronger result for Nilfisk-Advance than initiallyanticipated, balanced however by a poorer than expected result for NKT Cables. As expected, working capital increased in the 2nd quarter and at 30 June 2010amounted to 2,812 mDKK or 17.4% LTM (31 March 2010: 16.6%). NKT Cables realized an increase in organic growth of 1% in 2nd quarter 2010compared with 2nd quarter 2009 (1st half 2010: 2%). The high voltage/submarinecable segment and the medium voltage segment grew by 16% and 14% respectively,while negative growth of 1% was realized for the low voltage segment.Developments for other segments were as expected. The quarter was influenced byunsatisfactory productivity development in Cologne which impact negatively onboth growth and earnings for the period. EBITDA margin (LTM) was 7.4%,corresponding to quarterly earnings of 81 mDKK (1st half 2010: 141 mDKK). Nilfisk-Advance realized organic growth of 10% in 2nd quarter 2010 comparedwith 2nd quarter 2009 (1st half 2010: 8%). This positive development wasdistributed by region: EMEA 11%, Americas 10% and Asia/Pacific 9%. At the sametime the gross profit margin increased to 43%, which together with continuedtight cost control led to an increase in EBITDA margin (LTM) of 11%, a rise of0.8%-points. This corresponds to operational EBITDA for the quarter of 191 mDKK(1st half 2010: 363 mDKK). NKT Flexibles and Photonics Group both lived up to expectations in the 2ndquarter with an EBITDA margin of 16% (1st half 2010: 17%) for NKT Flexibles,and an improvement in EBITDA of 7 mDKK to -5 mDKK (1st half 2010: -11 mDKK) forPhotonics Group.