NKT A/S · OMXCOP:NKT
NKT A/S — Q2 2003 Earnings Presentation
39 slides from NKT A/S's earnings presentation, Aug 27, 2003
Slide 1: NKT Holding A/S Presentation Second Quarter Report 2003
NKT Holding A/S Presentation Second Quarter Report 2003 Tuesday, August 27th, 2003
Slide 2: Presentation and sound track available online
Presentation and sound track is available at : www.nkt.dk www.cse.dk www.berlingske.dk
Slide 3: Second Quarter Report 2003 – consolidated accounts
Second Quarter Report 2003 – consolidated accounts The activities NKT Cables Group Nilfisk-Advance Group NKT Flexibles NKT Photonics Group Life Science (SMB & Cantion) Expectations 2003 Management agenda 2003 Questions
Slide 4: Profit and loss statement
Profit and loss statement Q2 2003 (Y/Y) (mDKK) Key Figures (mDKK) Q2 - 2002 Q2 - 2003 Change Revenue 1.530 1.468 (62) EBITDA 86 101 15 Depreciations (81) (49) 32 Amortizations (21) (16) 5 EBIT (16) 36 52
Slide 5: Development in revenue
Development in revenue Q2 2003 (Y/Y) (mDKK) Key Figures (mDKK) Q2 - 2002 Q2 - 2003 Change Revenue 1.530 1.468 (62) Other activities FX (22) Currency (52) NKT Flexibles +13 Disc. business (9) Volume/price +21 Other (1) Metal prices (32) HV, MV, LV, etc +20 America +10% Europe: Flat Asia-Pacific +7% T
Slide 6: Metal price development
Metal price development Q2 2003 (Y/Y) 14.000 -18% DKK / Ton of Copper 13.000 12.000 11.000 10.000 2002 2003
Slide 7: Development in EBITDA
Development in EBITDA Q2 2003 (Y/Y) (mDKK) Key Figures (mDKK) Q2 - 2002 Q2 - 2003 Change EBITDA 86 101 15 Other activities Gross margin: Lower EBITA-margin (Q2): 8,6% NKT Flexibles +3 - USA: 7,0% Cash O/H-cost: - 12% - EU & Asia/Pacific: 8,9% Priorparken (7) Others +8 EBITDA-margin (Q1): 7,1% Total
Slide 8: Profit and loss statement
Profit and loss statement Q2 2003 (Y/Y) (mDKK) Key Figures (mDKK) Q2 - 2002 Q2 – 2003 Change Revenue 1.530 1.468 (62) EBITDA 86 101 15 EBIT (16) 36 52 Financial items (net) (9) (5) 4 Tax / Minority interests 3 (8) (11) Net result (22) 23 45
Slide 9: Capital employed (mDKK)
Capital employed (mDKK) Key Figures 30-jun-02 31-dec-02 30-jun-03 Fixed Assets 2.735 2.009 1.906 Working Capital 1.408 973 1.194 Provisions etc. (366) (356) (341) Capital employed 3.777 2.626 2.759 Annual Deprec./Amort.~270 • 15% below Q2 last year Annual CAPEX ~160 Annual R&D ~40 • Seasonal pattern
Slide 10: Capital employed
Capital employed (mDKK) Key Figures 30-jun-02 31-dec-02 30-jun-03 Shareholders equity 3.557 2.898 2.787 Minority interests 190 135 129 Net interest-bearing debt 30 (407) (157) Capital employeed 3.777 2.626 2.759 Strong Balance Sheet is maintained • Equity ratio: 58% • Net interest bearing asset: 157
Slide 11: Net interest bearing debt
Net interest bearing debt (mDKK) Key Figures 30-jun-02 31-dec-02 30-jun-03 Net interest bearing debt 30 (407) (157) 500 2002 2003 400 2002 2003 300 200 100 0 jan- feb- mar- apr- maj- jun- jul- aug- sep- okt- nov- dec- jan- feb- mar- apr- maj- jun- jul- aug- sep- okt- nov- dec- 02 02 02 02 02 02 02 0
Slide 12: Cash flow Q2 2003
Cash flow Q2 2003 (mDKK) 101 (5) (22) (146) 321 6 157 2 31/3 EBITDA Finan- Capex Working Treasury FX 30/6 cial capital shares / adj. NIBD items etc. options / NIBD etc
Slide 13: The NKT share price – development 1H 2003
The NKT share price – development 1H 2003 120 Daily turnover 1/1 – 30/6 2003 : 2,3 mDKK 110 +22% +35% 100 DKK per share 90 80 +8% +20% 70 60 1/1/03 1/1/03 1/1/03 NKT Holding KFX rebased 30/6/03 22/8/03 50 40 02 02 02 02 02 02 02 02 02 03 03 03 03 03 03 03 03 2 2 2 .0 .0 .0 1. 2. 3. 4. 5. 6. 7. 8. 9.
Slide 14: Second Quarter Report 2003 – consolidated accounts
Second Quarter Report 2003 – consolidated accounts The activities NKT Cables Group Nilfisk-Advance Group NKT Flexibles NKT Photonics Group Life Science (SMB & Cantion) Expectations 2003 Management agenda 2003 Questions
Slide 15: The NKT Group structure
The NKT Group structure - as of August 27th, 2003 NKT Holding - NKT Cables - Nilfisk-Advance NKT Photonics Other activities Group - NKT Integration - Priorparken - Crystal Fibre - NKT Flexibles (51%) - KOHERAS - SMB - LIOS Technology - NKT Research Changes: Watech sold & Innovation Cantion discontin
Slide 16: NKT Cables – development in turnover 1H 2003 vs. 1H 2002
NKT Cables – development in turnover 1H 2003 vs. 1H 2002 Real growth ~3% 1.324 1.300 1.247 ~40 1.207 mDKK 1.200 ~(94) (23) 1.100 1.000 1H Metals & Discont. Adj. Growth 1H 2002 currency businesses turnover 1H 2003 2003 Growth driven by HV and MV segment, LV stable Telecom cables flat, but on low leve
Slide 17: NKT Cables – EBITDA in mDKK and % per quarter
NKT Cables - EBITDA in mDKK and % per quarter 100 11,0% 8,9% 90 9,0% 80 70 6,8% 7,1% EBITDA (mDKK) 70 5,3% 7,0% 5,1% EBITDA % 60 4,5% 50 3,8% 49 5,0% 50 43 3,2% 38 35 40 1,6% 3,0% 28 30 0,0% 18 1,0% 20 11 10 (4) -1,0% Q4-01 Q1-02 Q2-02 Q3-02 Q4-02 Q1-01 Q2-01 Q3-01 Q1-03 Q2-03
Slide 18: NKT Cables
NKT Cables Market continues to be very competitive (price / volume) Measures : Focused product portfolio Increased efficiency Restructuring progressing according to plan During 1H staff has been reduced by 9,5% to 2.436 Moderate growth in near export markets Development in volume and EBITDA-margin i
Slide 19: NKT Cables – expectations 2003
NKT Cables - expectations 2003 Unchanged market conditions Moderate growth in volume excl. discontinued activities Turnover ~2.700 mDKK (present currency rates, metal prices etc.) EBITDA ~ 6% (2002 : 3,9% excl. restructuring costs) Progress due to effect from restructuring and general improvements
Slide 20: Nilfisk-Advance – headlines second quarter 2003
Nilfisk-Advance – headlines second quarter 2003 Turnover 687 mDKK down 31 mDKK compared to 2Q 2002 Real growth 3% adjusted for exchange rates (y-t-d 4,9%) EBITA-margin 8,6% EBITA-margin EU & A/P 8,9% (9,5% in Q1) EBITA-margin US 7,0% (4,5% in Q1) Volume growth q-t-q 10% Stable fixed costs (adj. for
Slide 21: Nilfisk-Advance – EBITDA in mDKK and % per quarter
Nilfisk-Advance - EBITDA in mDKK and % per quarter 10,4% 10,5% 100 11,0% 8,5% 8,9% 90 8,4% 9,0% 80 70 72 EBITDA (mDKK) 6,1% 70 5,6% 60 60 7,0% EBITDA% 60 4,5% 56 3,8% 3,8% 5,0% 50 45 38 40 33 3,0% 28 26 30 1,0% 20 10 -1,0% Q4-01 Q1-02 Q3-02 Q4-02 Q2-02 Q2-01 Q3-01 Q2-03 Q1-01 Q1-03
Slide 22: Nilfisk-Advance
Nilfisk-Advance The US activities have been stabilized Volume and profitability are improving Improved market position is driven by new products and focus on customers combined with cost efficiency in the value chain Initiatives to expand market presence Sales sub. in Greece, Czech Republic, Poland,
Slide 23: Nilfisk-Advance – expectations 2003
Nilfisk-Advance - expectations 2003 Unchanged market conditions Moderate growth in volume due to new products EBITDA > 9,5% (2002 : 7,8%) EBITA > 7,5% (2002 : 5,7%) Turnover ~2.700 mDKK (present exchange rates)
Slide 24: NKT Flexibles (51%)
NKT Flexibles (51%) Second Quarter Turnover 67 mDKK and breakeven on EBITDA level Order intake 58 mDKK Year-to-date Turnover 143 mDKK (34% up compared to 1H 2002) EBITDA (7) mDKK (1H 2002 was (1) mDKK) Main focus : Improved efficiency in execution Product development towards improved competitiveness
Slide 25: NKT Flexibles (51%) – expectations 2003
NKT Flexibles (51%) - expectations 2003 Gradual improvement in market demand Order backlog : 200 137 161 152 150 99 100 50 0 2001 2002 Q1 2003 Q2 2003 Increase in turnover ~300 mDKK (2002 : 223 mDKK) EBITDA ~ break-even (2002 : -6,7%)
Slide 26: Second Quarter Report 2003 – consolidated accounts
Second Quarter Report 2003 – consolidated accounts The activities NKT Cables Group Nilfisk-Advance Group NKT Flexibles NKT Photonics Group Life Science (SMB & Cantion) Expectations 2003 Management agenda 2003 Questions
Slide 27: NKT Photonics Group
NKT Photonics Group INTZGRATION KOHERAS *- «OQ. - CRYSTAL FIBRE e- 10S TECHNOLOGY
Slide 28: NKT Photonics Group – Profit and loss
NKT Photonics Group Profit and loss - Q1 2003 (Y/Y) Key Figures (mDKK) Q2 - 2002 Q2 - 2003 Revenue 22 18 EBITDA (17) (17) EBIT (29) (27) Capital employed 191 159
Slide 29: Market still depressed but telecom operators start to show profitability
Market still depressed but Telecom operators start to show profitability Consolidation in industry continues Simplified competitive landscape Staying power Continued technology progress Packaging and pig-tailing of components in N.A. A-thermal 40-channel AWG-component High index materials offered as
Slide 30: Sales growth according to plans
Sales growth according to plans High-power lasers, for display-systems, industrial lasers a.o. Good technical progress Air-guiding fibers of high quality University of Jena has demonstrated more than 250 Watt in single-mode fiber laser Sales growth according to plans Focus on industrial applications
Slide 31: Sales according to plans
Sales according to plans Growth in sales as compared to 2002 Quality issue solved by introduction of new laser New partnership within induction furnaces Center for exploitation of synergies within NKT Photonics AdSphere, making good progress
Slide 32: NKT Photonics Group – synergies
NKT Photonics Group - synergies High index material Cost reduction Silica Integration NK SION New functionalities NK T T GR INT ≡ GR INT ≡ A TI A TI ON ON [Figurative] High power lasers Use of competences within Crystal Fibre KOHERAS NKT Integration NKT Research incl. NKT Academy
Slide 33: NKT Photonics Group – expectations 2003
NKT Photonics Group - expectations 2003 Unchanged market conditions Telecom market still depressed Expected growth for non-telecom activities R&D activity level unchanged Focus on near-term within existing businesses EBITDA ~ (70) mDKK (2002 : (81) mDKK)
Slide 34: Life Science companies
Life Science companies Cantion NKT’s engagement brought to an end SMB Growth in sales and in customer base Company moved to own premises in Farum with own production and laboratories, including clean room New ownership is actively being pursued
Slide 35: Second Quarter Report 2003 – consolidated accounts
Second Quarter Report 2003 – consolidated accounts The activities NKT Cables Group Nilfisk-Advance Group NKT Flexibles NKT Photonics Group Life Science (SMB & Cantion) Expectations 2003 Management agenda 2003 Questions
Slide 36: Expectations 2003 – assumptions
Expectations 2003 - assumptions (as of second quarter 2003) Exchange rates, interest level and raw material prices ~ actual level Economical climate unchanged No acquisitions or structural changes No sale of real estate in Priorparken is expected this year
Slide 37: Expectations 2003
Expectations 2003 (as of second quarter 2003) NKT Group, consolidated Turnover 5.800 – 5.900 mDKK, EBITDA >6% Result after tax and minorities 40 ~ 70 mDKK Cash flow > dividend (excl. cash out restructuring costs ~(100) mDKK) NKT Cables : Turnover ~2.700 mDKK, EBITDA ~6% Nilfisk-Advance : Turnover ~2
Slide 38: Management agenda 2003
Management agenda 2003 - unchanged • Profitable in 2003 • Balance earnings short term vs. investment in growth potential • Maintain financial strength NKT Holding - NKT Cables - Nilfisk-Advance NKT Photonics Other activities • Stability • Focus on market • Continue trend in • Stabilize NKTF • Improv
Slide 39: NKT Holding A/S Presentation Second Quarter Report 2003
NKT Holding A/S Presentation Second Quarter Report 2003 Tuesday, August 27th, 2003