NASDAQ OMX Copenhagen
Nikolaj Plads 6
DK - 1007 Copenhagen K
28 February 2014
Announcement no. 3
NKT realised the expectations for 2013
With a revenue amounting to 15.8 bnDKK all NKT business areas delivered organic growth in 2013 and earnings steadily increased over the year. A strong Q4 contributed to NKT realising the latest revised expectations for 2013:
-
Revenue in std. metal prices was 12,843 mDKK, equal to an organic growth of 4%
- Operational EBITDA increased from 1,039 mDKK in 2012 to 1,085 mDKK realised in 2013
NKT's Group Executive Director & CFO, Michael Hedegaard Lyng, on 2013:
- We are satisfied that all business areas delivered growth in 2013 despite difficult market conditions for Nilfisk-Advance and for NKT Cables in Europe and with the fact that earnings increased at the same time.
Nilfisk-Advance delivered organic growth of 3%, which was higher than anticipated. Growth mainly came from the mature markets in EMEA og the Americas, while market conditions in Asia have been challenging - especially in China. The operational EBITDA margin was maintained at 11.9%.
NKT Cables delivered organic growth of 4%, driven by the advanced submarine and high voltage cables as well at the Railway segment in China. The market for low and medium voltage cables was affected by a reduced investment level among European utilities, and building wires for the construction industry were met with continuous price pressure. Operational EBITDA margin in std. metal prices increased to 5.6%.
Photonics Group delivered 13% organic growth and an EBITDA of 6 mDKK, mainly due to the Imaging and Sensing product areas.
Michael Hedegaard Lyng on realised expectations:
- On the general level we have realised the expectations for the year and actually outperformed them. However, we have not quite achieved our strategic goal on a capital employed of around 15-20%, which is required on the longer term to ensure a solid return to our shareholders.
In 2013, NKT delivered a return on capital employed of 6.7%, mainly due to a satisfactory level in Nilfisk-Advance with a return of almost 18% .
- Today, NKT Cables' contribution to value creation in NKT is not adequate. On these grounds a major efficiency improvement programme has been introduced at NKT Cables in Q4 2013, with the aim of securing a significantly improved return within a two-year period, Michael Hedegaard Lyng explains.
The first phase of the efficiency programme DRIVE will be implemented in 2014 and 2015. Focus is on a significant reduction of costs of around 300 mDKK having full impact entering into 2016. More than 80 saving initiatives have been identified and 70% hereof will have been implemented by the end of 2014.
Expectations for 2014
I 2014, NKT expects a consolidated organic growth of around 0-3% and an operational EBITDA margin in std. metal prices of 9-9.5% compared to 8.4% in std. metal prices in 2013. The expectations for the operational EBITDA margin are excluded one-off costs related to the DRIVE programme in NKT Cables and Nilfisk-Advance's divestment of a minor product areas within sanders. For further description of the expectations please refer to NKT's 2013 Annual Report pages 6-7.
Dividend
At the Annual General Meeting on 25 March 2014 the Board of Directors will propose a dividend of 3.5 DKK per share.
Please address questions to the undersigned on telephone +45 4348 2000.
Yours sincerely,
NKT Holding A/S
Michael Hedegaard Lyng
Group Executive Director & CFO
