Finance

NKT Group updates 2021 monetary outlook and resumes the overview of strategic options for NKT Photonics

Firm Announcement

16 July 2021
Announcement No. 12

NKT Group updates 2021 monetary outlook and resumes the overview of strategic options for NKT Photonics

In the present day, NKT Group offers preliminary monetary figures for Q2 2021, updates the 2021 monetary outlook and resumes the overview of strategic options for NKT Photonics.

NKT CEO Alexander Kara says:
– Now we have had a robust 1st half 2021 and the improved monetary efficiency was pushed by broad-based progress in each NKT and NKT Photonics. It’s passable to see that we proceed to learn from the inexperienced transformation and profitable implementation of enchancment initiatives. Within the energy cables enterprise, we delivered a 1st half 2021 operational EBITDA larger than what we count on for the 2nd half. That is primarily as a result of anticipated mixture of initiatives in Options and that we accomplished an exceptionally excessive quantity of service restore work within the first a part of the 12 months.

Preliminary Q2 2021 monetary figures
In Q2 2021, the preliminary monetary figures for NKT had been revenues (std. metallic costs) of EUR 344m and operational EBITDA of EUR 42m. The advance was pushed by larger exercise ranges and effectivity good points throughout all three enterprise traces. The ends in Service & Equipment had been exceptionally sturdy resulting from a excessive degree of restore work. Options additionally elevated earnings solidly in comparison with Q2 2020.

To enhance monetary efficiency, NKT has through the latest quarters launched a number of initiatives in Functions and within the Equipment enterprise. These steps embrace relocation of manufacturing of constructing wires to Poland, and centralization of the high-voltage equipment manufacturing to Sweden.

To additional help the journey in direction of the medium-term ambitions, NKT is at present additionally reviewing the setup and value construction in Options, with the purpose to enhance profitability, to have the ability to compete in a broader a part of the high-voltage market and improve enterprise alternatives. The present estimation is that prices and investments associated to this overview might be as much as EUR 40m.

NKT Photonics’ preliminary monetary figures for Q2 2021 had been revenues of EUR 18m and EBITDA of EUR 0m. Pushed by the Industrial phase, the enterprise continued to recuperate from the 2020 monetary efficiency the place primarily 1st half of the 12 months was adversely impacted by the COVID-19 pandemic.

Replace of 2021 monetary outlook
Primarily based on NKT’s efficiency in Q2 2021, full-year monetary outcomes for NKT are actually anticipated to be within the higher finish of the beforehand guided ranges. Revenues (std. metallic costs) are anticipated to be within the higher finish of approx. EUR 1.1–1.2bn (beforehand approx. EUR 1.1–1.2bn) and the operational EBITDA is predicted to be within the higher finish of approx. EUR 80–110m (beforehand approx. EUR 80–110m).

Pushed by the expansion recorded in Q2 2021, NKT Photonics now expects full-year natural income progress to be approx. 8-15% (beforehand higher finish of approx. 0-10%), and the EBITDA margin is predicted to be approx. 6-8% (beforehand higher finish of approx. 3-7%).

The monetary outlooks for each NKT and NKT Photonics are topic to uncertainty as a result of normal market state of affairs of constrained entry to each uncooked supplies and materials for the manufacturing in addition to the continued unknown growth of the COVID-19 pandemic.

Evaluate of strategic options for NKT Photonics
On 20 November 2019, the corporate introduced the initiation of a overview of strategic options for NKT Photonics with the targets to maximise worth creation, and to place NKT Photonics for long-term progress. On 13 Could 2020, the Board of Administrators determined to place the overview on maintain as a result of market uncertainties pushed by the COVID-19 pandemic, and with respect to the targets of maximizing the worth creation.

The Board of Administrators has now determined to renew the overview of strategic options for NKT Photonics.

There isn’t a definitive schedule to finish it and with no choice on any specific transaction or various. Equally, there isn’t any certainty that any transaction or various might be undertaken or pursued. NKT A/S doesn’t intend to make additional bulletins relating to the overview until it concludes they’re warranted by the circumstances or are expressly required by regulation.

Announcement of full Q2 2021 Interim Report
The Q2 2021 Interim Report might be introduced on 17 August 2021 as deliberate.

Contact

Investor Relations: Michael Nass Nielsen, Head of Investor Relations, tel: +45 2494 1654
Press: Helle Gudiksen, Head of Group Communications, tel: +45 2349 9098

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