NKT A/S Q3 2017: Satisfactory performance with continued improvement of profitability

Nasdaq Copenhagen
Nikolaj Plads 6
DK-1007 Copenhagen K

15 November 2017
Announcement No. 31

NKT A/S Q3 2017: Satisfactory performance with continued improvement of profitability

Group Executive Director Michael Hedegaard Lyng states:
- The financial development in Q3 2017 was satisfactory for both NKT and NKT Photonics. In NKT, our revenue and earnings increased as expected driven by the performance in the acquired high-voltage activities, and our full-year financial outlook is unchanged. Further, I am excited that we have recently marked our strong position in the offshore wind cable market with the award of one firm order and two Preferred Supplier Agreements.

Q3 2017 financial highlights

* Std. metal prices

2017 financial outlook unchanged for NKT and adjusted for NKT Photonics
For NKT, the 2017 financial outlook provided on 11 April 2017 is confirmed, cf. Company Announcement No. 8. The expected revenue (std. metal prices) is approx. EUR 1.1bn and operational EBITDA is approx. EUR 140m.
For NKT Photonics, expected organic growth is approx. 10% and operational EBITDA margin is approx. 10%, against a previous target of approx. 15%. The adjusted margin is solely due to a reassessment of the LTI programme for senior management with EUR 2.3m expected to be provisioned for this in 2017.

NKT (formerly NKT Cables): Operational EBITDA increased by EUR 23m, corresponding to a 4%-points higher margin. Recent strong momentum for NKT in the European offshore wind market
NKT increased operational EBITDA to EUR 43.8m in Q3 2017 from EUR 20.5m in the same period of 2016. The improvement was driven by the acquired activities leading to a greater exposure to the high-voltage cable market. The operational EBITDA margin (std. metal prices) was up by 4%-points. The integration of the acquired activities is progressing to plan and during Q3 2017, the combined organisation was fully implemented.

NKT has recently announced the award of the order for the Borssele Beta offshore wind project in the Netherlands, and was chosen as preferred supplier for further two in the UK, Moray East and Triton Knoll.

NKT Photonics: Flat organic growth and the acquisition of Onefive completed
In Q3 2017, NKT Photonics reported flat organic growth with positive developments in the Imaging & Metrology and Material Processing divisions, which was offset by negative growth in Sensing & Energy. EBITDA was negatively impacted by EUR 1.8m due to provisions for the LTI programme for senior management. The programme has been reassessed following the acquisition of Onefive, which was completed on 1 September 2017, which will strengthen NKT Photonics' position in the fast-growing ultrafast laser market.

Teleconference
NKT hosts a teleconference for investors and financial analysts at 9:00 am CET today, and it can be accessed at investors.nkt.com. The presentation for the call will be available shortly after this release. To attend, please dial in from: 
Denmark: +45 3271 1658
UK: +44 (0) 203 427 1908
US: +1 212 444 0896

Contacts
Investor Relations: Michael Nass Nielsen, Head of Investor Relations, tel: +45 2494 1654
Media Relations: Helle Gudiksen, Head of Group Communications, tel: +45 2349 9098

Vedhæftede filer:

NKT Q3 Report_2017.pdf