NKT 2015 Annual Report: Financial performance in line with expectations

Nasdaq Copenhagen
Nikolaj Plads 6
DK-1007 Copenhagen K

26 February 2016
Announcement no. 3

NKT 2015 Annual Report: Financial performance in line with expectations 

Group Executive Director, Michael Hedegaard Lyng commenting on the results;
- NKT’s 2015 financial performance was in line with expectations. Both organic growth and operational EBITDA were up 3%. In NKT Cables, the Products segment in particular delivered satisfactory results, positively impacted by the DRIVE efficiency improvement programme. In Nilfisk, financial performance was below our initial expectations, driven by lower organic growth and delayed positive impact from investments in sales and service.

2015 financial highlights

• Operational EBITDA increased by 3% to EUR 175.2m and operational EBITDA margin (std. metal prices) was 9.4%
• As expected, organic growth was 3%, and revenue amounted to EUR 2,224m
• Return on capital employed improved by 0.7%-point to 10.1%
• Net interest-bearing debt was EUR 88.9m, equal to 0.5x operational EBITDA
• Proposed dividend of DKK 4 per share, and launch of share buyback programme of DKK 550m (EUR 74m)

2016 outlook
In 2016, NKT expects flat organic growth and operational EBITDA margin (std. metal prices) on par with 9.4% realised in 2015. For further details on the 2016 outlook please refer to NKT's 2015 Annual Report, page 6.

Nilfisk: Results below original expectations
In Nilfisk,  organic growth was flat and operational EBITDA margin was 10.1% against 11.7% in 2014. Financial performance was below initial expectations due to lower organic growth and particularly from delayed positive impact from strategically important front-end investments, and delivery issues in 1st half 2015.

NKT Cables: DRIVE savings target reached one year ahead of schedule
NKT Cables achieved organic growth of 4% driven by the Projects and Products businesses. Operational EBITDA margin (std. metal prices) improved to 9.0%, up 1%-point from 2014, primarily related to Products and the effects of DRIVE. The annual savings target of EUR 60m from the efficiency improvement programme was reached ahead of schedule and future savings will be integrated in the EXCELLENCE 2020 strategy.

NKT Photonics: 9% organic growth and operational EBITDA margin up by 2.4%-point
Satisfactory organic growth was achieved in both the Imaging and Sensing segments. Operational EBITDA margin increased to 9.6% from 7.2% in 2014 impacted by higher revenue and product margins. Core businesses were redefined and all segments were integrated in one management entity under the name NKT Photonics.

Teleconference
NKT will host a teleconference for investors and financial analysts at 09:30 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 3544 5583
UK : +44 203 194 0544
US : +1 855 269 2604