NKT A/S Q2 2017: Significant increase in operational EBITDA

Nasdaq Copenhagen
Nikolaj Plads 6
DK-1007 Copenhagen K

17 August 2017
Announcement No. 15

NKT A/S Q2 2017: Significant increase in operational EBITDA

Due to the intended split of NKT A/S, Nilfisk is considered as discontinued operations and therefore a separate Q2 2017 Interim Report is issued (enclosed in this announcement).

Group Executive Director Michael Hedegaard Lyng states:
- Q2 2017 was the first quarter with full impact of the acquired ABB HV Cables business and it contributed significantly to the results. The operational EBITDA in NKT doubled compared with last year and the integration process is on track. In Nilfisk, Hans Henrik Lund joined as CEO in the beginning of August 2017 as planned, and the company’s financial performance showed continued organic growth and improved earnings in Q2 2017. Lastly, the intended split of NKT A/S is progressing according to plan and the first trading day for NKT A/S and Nilfisk A/S as two separately listed companies is expected to be 12 October 2017.

Q2 2017 financial highlights

* Std. metal prices, ** discontinued operations, *** before special items

2017 outlook maintained
The NKT A/S 2017 financial outlook comprises separate guidance for each business unit and the guidance provided 11 April 2017 is confirmed, cf. Company Announcement No. 8 and Q2 2017 Interim Report page 6.

NKT (formerly NKT Cables): Operational EBITDA doubled in Q2 2017 driven by the acquired activities. The integration process of ABB HV Cables on track
NKT increased revenue by EUR 88.0m to EUR 288.1m (std. metal prices) in Q2 2017 driven by the acquired business. The organic growth was 8% in the quarter and -1% excluding the acquired business. The increased revenue led to operational EBITDA of EUR 42.9m compared with EUR 21.5m in Q2 2016. The integration of the acquired ABB HV Cables activities is on track with the combination of the teams in the Cologne and Karlskrona plants advancing. The divestment of the Automotive business was closed on 30 April 2017.

NKT Photonics: Strong organic growth and announcement to acquire Onefive
As expected, NKT Photonics delivered a strong recovery in organic growth in Q2 2017, realising 26% driven by the Imaging & Metrology and Sensing & Energy segments. The higher revenue drove an improvement in EBITDA of EUR 1.0m from Q2 2016 and the EBITDA margin was 6.3%. NKT Photonics announced the acquisition of Onefive, a leading supplier of ultrafast lasers, that will be completed on 1 September 2017 as the parties have obtained all required approvals.

Nilfisk: Continued positive development in organic growth and margins. New CEO on board
In Q2 2017, Nilfisk reported organic growth of 2% driven by continued solid performance in the Americas of 6%. The operational EBITDA margin before special items was up by 1.0%-point to 12.8% compared with Q2 2016 due to changed product mix and operational improvements. As planned, Nilfisk’s new CEO, Hans Henrik Lund, joined in the beginning of August 2017 and will lead Nilfisk towards the listing expected to be completed 12 October 2017.

Teleconference
NKT hosts a teleconference for investors and financial analysts at 9:00 am CET today, and it can be accessed at www.nkt.dk. The presentation for the call will be available shortly after this release. To attend, please dial in from: 
Denmark: +45 3271 1659
UK: +44 (0) 20 3427 1914
US: +1 646 254 3364