NKT A/S: NKT A/S 2017 Annual Report: Satisfactory increase in revenue and earnings

27 February 2018
Company Announcement No. 1

NKT A/S 2017 Annual Report: Satisfactory increase in revenue and earnings

President & CEO Michael Hedegaard Lyng comments on the 2017 development:
- Following the demerger of Nilfisk in October 2017, our company now consists
of NKT and NKT Photonics. Overall, the financial performance in 2017 was
satisfactory and in line with the latest communicated financial outlook. With
the acquisition of ABB HV Cables, NKT has created one of the world's leading
high-voltage power cable companies. The new organization is fully integrated
and we are ready to capitalize further on our capabilities.  In NKT Photonics,
we strengthened our position in the ultrafast laser segment with the
acquisition of Onefive. 

Financial highlights

                                  NKT         NKT Photonics
-----------------------------------------------------------
EURm                       Q4 2017    2017    Q4 2017  2017
-----------------------------------------------------------
Revenue                     281.5*  1,058.0*   21.0    50.9
-----------------------------------------------------------
Organic growth               -1%       7%       13%     7% 
-----------------------------------------------------------
Operational EBITDA          33.8     138.3      5.7     3.5
-----------------------------------------------------------
Operational EBITDA margin   12.0%*   13.1%*    27.1%   6.9%
RoCE                        7.5%      7.5%     neg.    neg.
-----------------------------------------------------------

 * Std. metal prices

2018 financial outlook
The company provides separate outlook for each business unit.

For NKT, revenue (std. metal prices) is expected to be approx. EUR 1.0-1.1bn
and the operational EBITDA is expected to be approx. EUR 90-110m. 

For NKT Photonics, revenue is expected to be approx. EUR 65-70m and EBITDA is
expected to be approx. EUR 10m. 

NKT: The operational EBITDA almost doubled in 2017 driven by the acquired
activities. Projects awarded in the high-voltage market was at a relatively low
level in 2017 
Driven by the acquired activities, NKT increased operational EBITDA to EUR
138.3m in 2017 from EUR 72.5m in 2016. The operational EBITDA margin* was
13.1%, up by 3.4%-points on 2016. With the closing of the ABB HV Cables
acquisition on 1 March 2017, NKT strengthened its presence in the high-voltage
segment with the factory in Karlskrona, Sweden, and the cable-laying vessel NKT
Victoria. 

During 2017, projects awarded in the high-voltage market have been at a
relatively low level and consequently the order intake for NKT in this segment
has been lower than anticipated. This will expectedly lead to lower capacity
utilization on the production site in Karlskrona during the second half of 2018
compared to 2017. However, NKT underlined its position as a leading player in
the offshore wind market in 2017, receiving the order for the Borssele Beta
project in the Netherlands, and by being selected as preferred supplier for two
projects in the UK; Moray East and Triton Knoll. 

NKT Photonics: EUR 50m revenue mark passed in 2017. Strategically important
acquisition in ultrafast laser segment 
In 2017, NKT Photonics increased revenue by 18% against 2016 driven by a
combination of growth in the existing business and acquired growth. The organic
growth was 7%. Primarily due to provisioning for a long-term incentive
programme for senior management and investments in growth, the EBITDA level was
lower than in 2016. With the acquisition of the Swiss-based company Onefive on
1 September 2017 the position of NKT Photonics in the rapidly growing ultrafast
laser segment was significantly improved. 

Teleconference
NKT A/S hosts a teleconference for investors and financial analysts at 10:00 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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