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NKT A/S Q3 2020: Improved financial results lead to specification of outlook for NKT. High-voltage order backlog at all-time high

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Company Announcement10. November 2020
Announcement No. 24NKT A/S Q3 2020: Improved financial results lead to specification of outlook for NKT. High-voltage order backlog at all-time highNKT CEO Alexander Kara says:
– NKT delivered improved financial results in Q3 2020 and therefore we also specify our outlook for the full-year results upwards. We were awarded two large high-voltage projects supporting the green transformation, which lead to an all-time high order backlog of over EUR 3bn at the end of the quarter, providing us with improved production visibility for the coming years. After a challenging 1st half 2020, NKT Photonics recorded positive organic growth, while the business continued to be negatively impacted by the COVID-19 pandemic.Q3 2020 financial highlights:*std. metal prices2020 financial outlook
The financial outlook for NKT is specified further. The revenue (std. metal prices) is expected to be approx. EUR 1.1bn. The operational EBITDA is expected to be in the upper end of EUR 40–60m.Introduction of 2021 financial outlook and mid-term targets for the power cables business
 Given the intension to issue new shares before end-2020, NKT presents its 2021 financial outlook for the power cables business. Revenue (std. metal prices) is expected to be approx. EUR 1.1–1.2bn and the operational EBITDA is expected to be approx. EUR 80–110m. This is a continuation of the growth achieved in 2020 and mainly expected to be driven by Solutions.NKT Q3 2020: Improved financial performance and high-voltage order backlog at all-time high
 In Q3 2020, NKT’s three business lines delivered improved revenue* totalling EUR 300m, an increase of EUR 68m from the same period of 2019. This equalled organic growth of 28%. The main growth contributor was Solutions driven by the execution of recent years’ high-voltage order awards. The revenue growth translated into higher earnings for all three business lines. Operational EBITDA in Q3 2020 increased to EUR 21.4m from EUR 6.9m in Q3 2019.In Q3 2020, NKT was awarded high-voltage DC projects with a total value of more than EUR 500m. The two largest were for the Shetland HVDC Link and the offshore wind connection BorWin5.
The high-voltage order backlog totalled EUR 3.12bn at end-Q3 2020.NKT Photonics Q3 2020: Positive organic growth, while financial performance remained negatively impacted by COVID-19 pandemic
 The revenue in Q3 2020 amounted to EUR 16.7m on par with Q3 2019. After a challenging 1st half 2020, positive organic growth was recorded at 3%, while particularly the Industrial segment remained negatively impacted by the COVID-19 pandemic. EBITDA for Q3 2020 amounted to EUR 1m, against EUR 3.9m generated in Q3 2019. NKT Photonics has continuously invested in future growth opportunities in anticipation of attractive market opportunities in the years ahead. NKT Photonics’ cost base has therefore increased in 2020.In October 2020, the Board of Directors announced its intention to resume the strategic review of NKT Photonics when the business and financial performance is no longer materially affected by the COVID-19 pandemic and the general economic situation. The company is currently contemplating a divestment of a smaller non-core part of the NKT Photonics business and is evaluating approaches from interested parties.Teleconference
NKT A/S hosts a teleconference for investors and financial analysts at 10:00 am CET on 10 November 2020. It can be accessed at investors.nkt.com. The presentation for the call will be available before the teleconference.
To attend, please dial in from (confirmation code: 6881386):
DK +45 32 72 04 17
UK +44 (0) 207 192 8338     
US +1 646 741 3167AttachmentNKT_Q3_Interim_Report_2020_final

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