Nkt A/s · OMXCOP:NKT
Nkt A/s — Shareholder Meeting (March 2016)
33 slides from Nkt A/s's shareholder meeting presentation, Mar 31, 2016
Slide 1: Annual General Meeting 2016
NKT I Annual General Meeting 2016 31 March 2016 I 1 6 Annual General Meeting 2016
Slide 2: Long-term transformation towards increased value creation
NKT I Annual General Meeting 2016 31 March 2016 I 2 Long-term transformation towards increased value creation Nilfisk NKT Cables NKT Photonics Accelerate EXCELLENCE 2020 Commercial scale • Growth • Improved profitability • Growth • Consolidating market-leading • Improved profitability position
Slide 3: NKT's core competence
NKT I Annual General Meeting 2016 31 March 2016 I 3 NKT’s core competence ” To create value by exercising long-term and active ownership ” in businesses where NKT is best owner
Slide 4: 2015 financial development
NKT I Annual General Meeting 2016 31 March 2016 I 4 2015 financial development REVENUE, EURm 2,224 ORGANIC GROWTH 3% OPERATIONAL EBITDA MARGIN* 9.4% * Standard metal prices
Slide 5: Profit for the year
NKT I Annual General Meeting 2016 31 March 2016 I 5 Profit for the year PROFIT FOR THE YEAR, EURm 1.2 PROFIT FOR THE YEAR ADJUSTED, EURm 74.4
Slide 6: Return on Capital Employed (RoCE)
NKT I Annual General Meeting 2016 31 March 2016 I 6 Return on Capital Employed (RoCE) DEBT LEVERAGE 0.5x OPERATIONAL EBITDA RoCE 10.1%
Slide 7: Strong financial headroom
NKT I Annual General Meeting 2016 31 March 2016 I 7 Strong financial headroom Financial headroom of EUR 604m to further develop the businesses; organically and through investments and M&A Distribution to shareholders DKKm EURm Dividend per share: DKK 4 97 13 Share buyback 550 74 Total 647 87
Slide 8: Nilfisk
NKT I Annual General Meeting 2016 31 March 2016 I 8 Nilfisk REVENUE, EURm 972 ORGANIC GROWTH 0% OPERATIONAL EBITDA MARGIN 10.1% RoCE 12.9%
Slide 9: Accelerate - new growth strategy
NKT I Annual General Meeting 2016 31 March 2016 I 9 Accelerate - new growth strategy Long-term financial targets • Organic growth 2-3% above GDP • RoCE of 18-19%
Slide 10: Accelerate levers
NKT I Annual General Meeting 2016 31 March 2016 I 10 Accelerate levers Accelerate Growing our company to lead the industry Grow market share Strengthen Drive competitive Build strong Power front-end offerings brands supply chain performance
Slide 11: Commercial Excellence programme
NKT I Annual General Meeting 2016 31 March 2016 I 11 Commercial Excellence programme Strengthen front-end Full-scale roll-out Implementet On-going Light-scale roll-out Scheduled
Slide 12: 35 launches of new products and product versions in 2015
NKT I Annual General Meeting 2016 31 March 2016 I 12 35 launches of new products and product versions in 2015 Drive competitive offerings
Slide 13: Two global brands: High-end market and Mid-market
NKT I Annual General Meeting 2016 31 March 2016 I 13 Two globale brands Build strong brands High-end market Mid-market High quality products and Basis product with high reliability and high level of service to a low cost
Slide 14: Active participation in industry consolidation – five acquisitions in 2015
NKT I Annual General Meeting 2016 31 March 2016 I 14 Active participation in industry consolidation – five acquisitions in 2015 Contractor (UK) Leading floorcare service company Pressure-Pro (US) Leading pressure Kerrick (AUS/NZ) washer manufacturer Broad-ranged Hydro Tek (US) dealer/service Leading
Slide 15: NKT Cables
NKT I Annual General Meeting 2016 31 March 2016 I 15 NKT Cables REVENUE, EURm 1,212 ORGANIC GROWTH 4% OPERATIONAL EBITDA MARGIN* 9.0% RoCE 8.2% * Standard metal prices
Slide 16: Offshore cable projects
NKT I Annual General Meeting 2016 31 March 2016 I 16 Offshore cable projects NEW MAJOR ORDERS 2 FULL PRODUCTION UNTIL 2017
Slide 17: DRIVE efficiency improvement programme target reached 1 year ahead
NKT I Annual General Meeting 2016 31 March 2016 I 17 DRIVE efficiency improvement programme target reached 1 year ahead Cost improvements FTE reductions One-off costs Capex 2015 EUR 54.2m 110 EUR 23.2m EUR 0.9m To date EUR 60.5m 381 EUR 50.1m EUR 1.9m Full effect EUR ~60m 400-450 EUR ~50m EUR ~6.5m
Slide 18: Strategy
NKT I Annual General Meeting 2016 31 March 2016 I 18 Strategy Long-term strategic goals • RoCE above 15% • Become customers’ preferred choice • Achieve an employee satisfaction index of >80%
Slide 19: Cross-organisational Must-Win Battles
NKT I Annual General Meeting 2016 31 March 2016 I 19 Cross-organisational Must-Win Battles Safety, people and Operational and Material and product Digitalisation organisation commercial excellence development
Slide 20: Segment initiatives
NKT I Annual General Meeting 2016 31 March 2016 I 20 Segment initiatives DEVELOPMENT AND GROW FOCUS ON PROFITABILITY TURNAROUND High-voltage onshore Building wire & High-voltage offshore Low-voltage Accessories Medium-voltage & Railway Automotive APAC
Slide 21: NKT Photonics
NKT I Annual General Meeting 2016 31 March 2016 I 21 NKT Photonics REVENUE, EURm 41 ORGANIC GROWTH 9% OPERATIONAL EBITDA MARGIN 9.6% RoCE 0.4%
Slide 22: New president and CEO in NKT Photonics
NKT I Annual General Meeting 2016 31 March 2016 I 22 New president and CEO in NKT Photonics Basil Garabet (1959) President and CEO 2001-2013: EM4, US manufacturer of optoelectronics and subsystems 1999-2001: Altitun Inc., Swedish manufacturer of tunable lasers 1996-1999: Mellot Griot Inc., US manufa
Slide 23: Primary strategic initiatives towards commercial scale
NKT I Annual General Meeting 2016 31 March 2016 I 23 Primary strategic initiatives towards commercial scale • Complete solutions to end-customers • Active pursuit of partnerships and joint ventures • Organic growth and growth through M&A • Lean manufacturing • Faster introduction of new products
Slide 24: Scale as key driver of value creation
NKT I Annual General Meeting 2016 31 March 2016 I 24 Scale as key driver of value creation Long-term strategic goals: • Annual organic growth above 10% • RoCE ~20%
Slide 25: Redefined core business and one management unit
NKT I Annual General Meeting 2016 31 March 2016 I 25 Redefined core business and one management unit SEGMENTS WITH GROWTH POTENTIAL • Imaging & Metrology • Sensing & Energy • Material Processing ONE MANAGEMENT UNIT NKT Photonics
Slide 26: NKT's governance model
NKT I Annual General Meeting 2016 31 March 2016 I 26 NKT’s governance model • Enables efficient and transparent decision-making processes • Dynamic structure • Supports strategic dialogue BOARD OF DIRECTORS • Close co-operation on optimising value creation BUSINESS UNITS GROUP COMMITTEES FUNCTIONS
Slide 27: Farewell to two Board members
NKT I Annual General Meeting 2016 31 March 2016 I 27 Farewell to two Board members Kristian Siem – Deputy Chairman Kurt Bligaard Pedersen – Chairman of the Nomination Committee
Slide 28: Election of new Board members
NKT I Annual General Meeting 2016 31 March 2016 I 28 Election of new Board members René Svendsen-Tune Anders Runevad
Slide 29: Thank you to the employees
NKT I Annual General Meeting 2016 31 March 2016 I 29 Thank you to the employees
Slide 30: Development in NKT share price
200 300 400 500 DKK Jan Jan Jan Jan Jan Feb NKT I Annual General Meeting 2016 Feb Feb Feb Mar Data was updated after the AGM 2016 Mar Mar Mar Apr Apr Apr Apr May May May May May Jun Jun Jun Development in NKT share price Jun Jul 2015 Jul Jul Jul NKT Holding A/S Jul Aug Aug Aug Aug Sep Sep Sep Sep O
Slide 31: Outlook 2016
NKT I Annual General Meeting 2016 31 March 2016 I 31 Outlook 2016 Flat organic growth Operational EBITDA margin* on par with 2015 (9.4%) *Standard metal prises
Slide 32: Long-term active ownership as basis for increased value creation
NKT I Annual General Meeting 2016 31 March 2016 I 32 Long-term active ownership as basis for increased value creation Organic growth above market average RoCE above 15% Dividend of approx. 1/3 of profit RoCE 18-19% >15% ~20% Key value driver Growth Profitability Commercial scale
Slide 33: Annual General Meeting 2016
NKT I Annual General Meeting 2016 31 March 2016 I 33 6 Annual General Meeting 2016