INTERIM REPORT Q PDF Free Download

INTERIM REPORT Q2-2011 Live presentation 23 August 2011 at 11:00 am NKT Holding A/S / IR presentation / Interim Report 2, 2011 1

Agenda Highlights Q2 Financial results Q2 2011 Companies - NKT Cables - Nilfisk-Advance - Photonics Group - NKT Flexibles (51%) Expectations 2011 Questions & Answers NKT Holding A/S / IR presentation / Interim Report 2, 2011 2

Group structure August 2011 Northern Europe, Central Europe Eastern Europe, China, Australia Global presence NKT Photonics, LIOS Technology, Vytran Ownership: NKT: 51% Subsea 7: 49% NKT Holding A/S / IR presentation / Interim Report 2, 2011 3

Highlights Q2 - Revenue increased as expected (3% organic growth) but EBITDA failed to follow suit Revenue up from 3.635 mdkk in Q2 2010 to 4.016 mdkk in Q2 2011 Organic growth of 3% in Q2 2011 and 8% in H1 2011 Q2 2011 H1 2011 NKT Cables 0% 9% Nilfisk-Advance 8% 6% Photonics Group 6% 9% Operational EBITDA Q2 2011: 218 mdkk (7,1%) vs. 282 mdkk (9,5%) in Q2 2010. H1 2011: 439 mdkk (7,4%) vs. 517 mdkk (9,5%) in H1 2010 Operational EBITDA, LTM amounts to 908 mdkk (EBITDA-margin, LTM, std. 7,6%) EBITDA negatively impacted by the Cologne factory (NKT Cables) by 62 mdkk One-off costs in Nilfisk-Advance: 8 mdkk in Q2 Earnings before tax (EBT) amount to 89 mdkk in H1 2011 vs. 231 mdkk in H1 2010 WC amounts to 3,5 bn.dkk vs. 3,5 bn.dkk in Q1. LTM at 21,6% vs. 20,5% NIBD stabilized at 4,9 bn.dkk at 30 June 2011 (5,4x operational EBITDA) from 4,8 bn.dkk at end Q1 (5,0x operational EBITDA) Updated expectations for full year 2011: approx. 5% organic revenue growth Operational EBITDA is changes from 1.200 mdkk to the level 1.000-1.100 mdkk NKT Holding A/S / IR presentation / Interim Report 2, 2011 4

EBITDA Group 1.600 15% 1.400 1.200 12% mdkk 1.000 800 600 9% 6% 400 200 0 503 563 634 709 760 829 890 914 994 1.126 1.204 1.363 1.412 1.476 1.503 1.300 1.142 975 878 935 1.023 1.011 1.025 985 971 908 3% 0% Q1-05 Q2-05 Q3-05 Q4-05 Q1-06 Q2-06 Q3-06 Q4-06 Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Operational EBITDA LTM Oper. EBITDA% LTM Oper. EBITDA% LTM, std. Organic growth of 3% for Q2 2011 EBITDA-margin std. LTM for Q2 2011 of 7,6% or 908 mdkk vs. 8,2% (971 mdkk) for Q1 2011 NKT Holding A/S / IR presentation / Interim Report 2, 2011 5

Manufacturing PMI 62 57 52 47 42 37 32 USA EURO zone Expectation indicator Above the line indicates positive expectations for the manufacturing sector and below the line indicates declining expectations for the manufacturing sector Below the line indicate expectations of recession NKT Holding A/S / IR presentation / Interim Report 2, 2011 6

Financial results Q2 2011 vs. Q2 2010 mdkk Q2 2011 Q2 2010 Change Consensus Revenue 4.016 3.635 381 10% 4.030 EBITDA (operational) 218 282-64 -23% 341 Depreciation -114-98 -16-16% -118 EBIT (operational) 104 184-80 -43% 223 "One-off s" -8-24 16-8 Financial items -61-22 -39-177% -42 Result before tax 35 138-103 -75% 173 Tax -5-41 36-41 Net result 30 97-67 -69% 132 Revenue, std. 3.077 2.953 124 4% 3.127 Oper. EBITDA-margin std. 7,1% 9,5% 10,9% Oper. EBIT-margin std. 3,4% 6,2% 7,1% Tax % 14% 30% 24% Organic growth => NKT Cables 0%, Nilfisk-Advance 8% and Photonics Group 6% NKT Holding A/S / IR presentation / Interim Report 2, 2011 8

Financial results Q2 2011 vs. Q2 2010 mdkk Q2 2011 Q2 2010 Change Revenue 4.016 3.635 381 EBITDA (operational) 218 282-64 Depreciation -114-98 -16 EBIT (operational) 104 184-80 "One-off s" -8-24 16 Financial items -61-22 -39 Result before tax 35 138-103 Tax -5-41 36 Net result 30 97-67 Revenue, std. 3.077 2.953 124 EBITDA-margin std. 7,1% 9,5% EBIT-margin std. 3,4% 6,2% Tax % 14% 30% mdkk Revenue increased by 381 Metal prices 235 FX changes -20 Acquisitions 44 3% organic growth 122 - NKT Cables 0% - Nilfisk-Advance 8% - Photonics Group 6% mdkk EBITDA decreased by 64 NKT Cables -72 - down from 5,9% to 0,7% Nilfisk-Advance 9 - down from 12,5% to 12,1% Photonics Group 4 NKT Flexibles (51% share) -2 - down from 16,4% to 14,5% Other -3 mdkk One-off s in Nilfisk-Advance 8 NKT Holding A/S / IR presentation / Interim Report 2, 2011 9

Trends NKT Cables Oper. EBITDA (mdkk) 250 200 150 100 50 0 13,4% 123 13,1% 191 12,4% 161 10,2% 55 8,4% 15 7,6% 145 7,0% 118 8,0% 95 8,9% 60 7,4% 81 Oper. EBITDA mdkk Oper. EBITDA% LTM Oper. EBITDA% LTM, std. 7,4% 5,9% 5,2% 142 46 29 3,9% 9 15% 14% 13% 12% 11% 10% 9% 8% 7% 6% 5% 4% 3% 2% EBITDA Q2: Cologne Rest -63 mdkk 72 mdkk Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Realized 0% organic growth Q2 (H1: 9%): Electricity Infrastructure -3% (H1: 10%), Construction -4% (H1: 1%), Railway 10% (H1: 20%), and Automotive 14% (H1: 17%) Organic growth - Quarterly (Y/Y) 2008 2009 2010 2011 4% 3% 3% 0% -14% 3% -10% -8% 4% 1% 25% 34% 20% 0% H1 organic growth peer 9%: Energy Infrastructure 5%, Industry 16%, and Buildings 9% - Annually 3% -7% 16% 9% NKT Holding A/S / IR presentation / Interim Report 2, 2011 10

Trends Nilfisk-Advance 250 14% 200 150 100 10,1% 10,2% Oper. EBITDA (mdkk) 10,2% 11,0% 11,0% 11,1% 11,0% 10,4% 9,9% 9,2% 9,2% 9,2% 10,2% 11,0% 10,9% 10,7% 10,6% 10,5% 13% 12% 11% 10% 9% 50 8% 0 146 174 134 180 154 193 136 130 105 125 121 118 172 191 129 119 181 200 7% Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Realized 8% organic growth Q2: EMEA 8%, Americas 8% and Asia/Pacific 9% (17% adjusted for phasing out of customer) Organic growth - Quarterly (Y/Y) 2008 2009 2010 2011 4% 6% 5% -12% -12% -20% -13% -3% 6% 10% 5% 7% 5% 8% Q2 organic growth peer: 16% EMEA 6%, Americas 19% and Asia/Pacific 18% - Annually 1% -13% 7% 6% NKT Holding A/S / IR presentation / Interim Report 2, 2011 11

Gross profit development Nilfisk-Advance 46% Total 12 mth 45% 44% 43% 42% 41% 40% 39% 38% 37% 36% Jun '11 May '11 Apr '11 Mar '11 Feb '11 Jan '11 Dec '10 Nov '10 Oct '10 Sep '10 Aug '10 Jul '10 Jun '10 May '10 Apr '10 Mar '10 Feb '10 Jan '10 Dec '09 Nov '09 Oct '09 Sep '09 Aug '09 Jul '09 Jun '09 May '09 Apr '09 Mar '09 Feb '09 Jan '09 Dec '08 Nov '08 Oct '08 Sep '08 Aug '08 Jul '08 Jun '08 Gross profit at 41,1% for Q2 2011 vs. 42,6% for Q2 2010 - positively impacted by structural initiatives and negatively impacted by increased input prises - sales prices increased by app. 1,5% in May-June. The full impact on gross profit is expected in Q3 Gross profit LTM at 41,4% vs. 42,0% at year end. NKT Holding A/S / IR presentation / Interim Report 2, 2011 12

Trends NKT Flexibles mdkk 1.600 1.400 Revenue (LTM) EBITDA% (LTM) Oper. EBITDA (LTM) WC% (LTM) 40,0% 35,0% 1.200 30,0% 1.000 800 600 400 25,0% 20,0% 15,0% 10,0% 5,0% 200 0,0% 0-5,0% jan-07 feb-07 mar-07 apr-07 maj-07 jun-07 jul-07 aug-07 sep-07 okt-07 nov-07 dec-07 jan-08 feb-08 mar-08 apr-08 maj-08 jun-08 jul-08 aug-08 sep-08 okt-08 nov-08 dec-08 jan-09 feb-09 mar-09 apr-09 maj-09 jun-09 jul-09 aug-09 sep-09 okt-09 nov-09 dec-09 jan-10 feb-10 mar-10 apr-10 maj-10 jun-10 jul-10 aug-10 sep-10 okt-10 nov-10 dec-10 jan-11 feb-11 mar-11 apr-11 maj-11 jun-11 Nom. growth Q2: 23% Turnover up from 318 mdkk in Q2 2010 to 390 mdkk in Q2 2011 EBITDA-margin of 14,5% in Q2 2011 vs. 16,4% in Q2 2010 NKT s share of profit in Q2 2011 is 21 mdkk vs. 23 mdkk in Q2 2010 Order back-log as per end June 2011 amount to 1,0 bn.dkk vs. 1,0 bn.dkk end March 2011. In addition the new frame agreement with Petrobras with a value of 9,7 bn. DKK NKT Holding A/S / IR presentation / Interim Report 2, 2011 13

Working Capital (in% of revenue) - Group 24,0% 23,0% WC 3MTH LTM Q2 2010 17,4% Q2 2011 21,6% 22,0% 21,0% 20,0% 19,0% 18,0% 17,0% 16,0% 15,0% jan-09 feb-09 mar-09 apr-09 maj-09 jun-09 jul-09 aug-09 sep-09 okt-09 nov-09 dec-09 jan-10 feb-10 mar-10 apr-10 maj-10 jun-10 jul-10 aug-10 sep-10 okt-10 nov-10 dec-10 jan-11 feb-11 mar-11 apr-11 maj-11 jun-11 WC of 3.492 mdkk as per 30 June 2011 vs. 3.498 mdkk as per 31 March 2011 and 2.812 mdkk as per 30 June 2010. Still high focus area in both NKT Cables and Nilfisk- Advance Strategic target remains 18% in Nilfisk-Advance and <17% in NKT Cables WC increased to 21,6% (LTM) vs. 20,5 % end Q1 and 19,3% end 2010 NKT Cables increased to 22,9% vs. 21,2% end Q1 and 19,4% end 2010 Nilfisk-Advance is unchanged 19,3% from end Q1 and 19,0% end 2010 NKT Holding A/S / IR presentation / Interim Report 2, 2011 14

Net interest bearing debt 30 June 2011 mdkk 0-500 -1.000-1.500-2.000-2.500-2.283-2.587-2.681-2.725-3.000-3.500-4.000-3.394-3.790-4.144-4.105-4.500-4.821-4.940-5.000-5.500 jan-09 feb-09 mar-09 apr-09 maj-09 jun-09 jul-09 aug-09 sep-09 okt-09 nov-09 dec-09 jan-10 feb-10 mar-10 apr-10 maj-10 jun-10 jul-10 aug-10 sep-10 okt-10 nov-10 dec-10 jan-11 feb-11 mar-11 apr-11 maj-11 jun-11 NIBD of 4.940 mdkk as per 30 June 2011 vs. 4.821 mdkk end 31 March 2011 and 3.790 mdkk as per 30 June 2010 NIBD decreased at 30 June (4.940 mdkk) compared to April and May NIBD increased by 119 mdkk in Q2 mainly impacted by investments of 157 mdkk End June 2011 net interest bearing debt amounts to 5,4x operational EBITDA (end Q1: 5,0x). Max. NIBD of 2,5x operational EBITDA remains the internal target Gearing of 124% (end Q1: 121%). Max. ratio of 100% remains the internal target Solvency ratio of 29% (end Q1: 29%). Ratio >30% remains the internal target NKT Holding A/S / IR presentation / Interim Report 2, 2011 15

Cash flows Q2 2011 mdkk Q2 Q2 H1 H1 2011 2010 2011 2010 Earnings, EBITDA 210 258 426 471 Interest, net -61-22 -104-49 Change in working capital -27-435 -581-790 Other -29-41 -73-77 Share of profit in NKT Flexibles -21-23 -49-39 Cash flows from operating activities 72-263 -381-484 Acquisition of business activities -39-22 -148-22 Acq. of property, plant and equipment, net -109-153 -202-448 Other investments, net -38 38-67 12 Cash flows from investing actitivities -186-137 -417-458 Cash flows operating and investing activities -114-400 -798-942 Change in long- and short-term loans 116 403 866 964 Dividend paid, etc. 0 3-47 -83 Cash flows from financing activities 116 406 819 881 Net cash flow 2 6 21-61 NKT Holding A/S / IR presentation / Interim Report 2, 2011 16

Gross debt and Cash Resources Gross debt: Gross debt: 63% in DKK, 19% in CZK and remaining part in EUR, USD & CNY Largest part is at variable interest +/- 1% change in interest will impact net interest with +/- 34 mdkk (Q1: 35 mdkk) Cash resources: Undrawn facilities of 1,4 bn.dkk + cash of 0,2 bn.dkk. In total 1,6 bn.dkk The debt is not subject to any kind of financial covenants Amounts in bn.dkk 30.06.11 31.03.11 30.06.10 Total Total Total Committed (>3 years) 3,8 3,8 1,3 Committed (1-3 years) 1,0 1,0 2,4 Committed (<1 year) 0,3 0,1 0,6 Committed total 5,1 4,9 4,3 % of total 76% 80% 81% Uncommitted 1,6 1,2 1,0 % of total 24% 20% 19% Total 6,7 6,1 5,3 Cash 0,2 0,2 0,2 Utilize -5,3-5,1-4,0 Cash resources 1,6 1,2 1,5 NKT Holding A/S / IR presentation / Interim Report 2, 2011 17

NKT Cables Group Manufacturing Companies Sales Entities All data based on revenue std. for FY 2010 Sales by Products Sales by Customers Sales by Markets 5% 7% 10% 30% 27% 21% High voltage cables and subsea Medium voltage cables Low voltage cables Railway wires Auto Other 35% 27% 38% Utilities Wholesales Industry 8% 27% 31% 13% 21% Denmark Germany Eastern Asia Other NKT Holding A/S / IR presentation / Interim Report 2, 2011 19

NKT Cables Sales development (keur) Cologne Intercompany elimination Other units Production value in Cologne hurt in Q2 by final relocation of machines Stabile development in rest of the Cable group The one company organization is contributing to growing cross selling between units NKT Holding A/S / IR presentation / Interim Report 2, 2011 20

Cologne backlog (keur) NMP 600,0 552,5 500,0 400,0 300,0 271,0 279,6 200,0 100,0 0,0 Dec 09 Dec 10 Aug 11 NKT Holding A/S / IR presentation / Interim Report 2, 2011 21

NKT Cables EBITDA development (keur) Cologne - EBITDA Cologne GM and Fixed cost Other units - EBITDA The last 9 months deteriorating GM in Cologne is single cause for the unsatisfactory development in 2011 Fixed cost development in Cologne reflect investments in the organization as well as an element of double cost Cost follows plans and has peaked NKT Holding A/S / IR presentation / Interim Report 2, 2011 22

Nilfisk-Advance Group Manufacturing Companies Sales Entities All data based on FY 2010 Sales by Products 8% 9% 39% 18% 26% Floor-care equipment Vacuum cleaners High pressure cleaners Service Sales by Customers 12% 50% 38% The commercial market The industrial market Sales by Markets 11% The domestic 26% market 63% EMEA Americas Asia/Pacific Other sales NKT Holding A/S / IR presentation / Interim Report 2, 2011 23

Expectations 2011 Consensus mdkk Consensus Revenue 16.027 Operational EBITDA NKT Cables 491 Nilfisk-Advance 714 Photonics Group -2 NKT Flexibles 89 Others -30 Operational EBITDA 1.262 D&A -466 Operational EBIT 796 One off s -25 Financial items -167 Earnings before tax, EBT 604 Tax -164 Earnings after tax 440 Expectations unchanged: organic growth of 5% NKT Cables approx. 5% Nilfisk-Advance approx. 5% Photonics Group approx. 20% Updated EBITDA expectations: Planned in the level of 1-1,1 bn.dkk compared to earlier communicated 1,2 bn.dkk NKT Holding A/S / IR presentation / Interim Report 2, 2011 25

NKT Holding A/S / IR presentation / Interim Report 2, 2011 27