NKT A/S: 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

EURm                       NKT (formerly NKT Cables)  NKT Photonics
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Revenue                                       303.2*           11.2
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Organic growth                                   24%             0%
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Operational EBITDA                              43.8           -0.8
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Operational EBITDA margin                     14.4%*           neg.
-------------------------------------------------------------------

* 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: [phone]
UK: [phone]
US: [phone]

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

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