NKT A/S Q1 2022: Improved revenues and results


company announcement

May 18, 2022
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NKT A/S Q1 2022: Improved revenues and profits

NKT CEO Alexander Kara says:
– We had a satisfactory start to 2022. At NKT, our financial performance in the first quarter of 2022 showed improvements compared to the same period last year. I am particularly satisfied with our performance in Applications, where the positive financial development in 2021 continued in 2022. With the completion of several offshore wind projects, we continued our contribution to the green transition. At NKT Photonics, we further increased our revenues and focused more on our core business with the disposal of the LIOS detection business.

Financial Highlights

NKT NKT Photonics
millions of euros Q1 2022 Q1 2022
Revenue 319.2* 16.1
Organic growth 7% 7%
Operating EBITDA 38.3 -1.7
Operating EBITDA margin 12.0%* -10.6%

*Std. metal prices

2022 Financial outlook
At NKT, the financial outlook is unchanged from Company Announcement #2 on February 23, 2022.

Sales (in std. metal prices) should be approx. 1.35 to 1.45 billion EUR and operating EBITDA should be c. 130 to 155 million euros.

The financial outlook assumes limited financial impact due to global supply chain challenges.

In NKT Photonics Financial Outlook Company Announcement #2 February 23, 2022
has been updated to reflect the accounting gain realized in Q1 2022.

Organic revenue growth is expected to be c. 12-17%, and the operating EBITDA margin should be c. 11-14%. The operating EBITDA margin excludes the €8.0 million accounting gain related to the sale of the LIOS detection business, which is treated as a non-recurring item.

An important assumption for realizing the financial outlook is that current global supply chain challenges will have a limited impact on financial results.

NKT: Revenue and operating EBITDA up compared to Q1 2021 with Applications and Solutions as tits main contributors
NKT increased its revenues (std. metal prices) from €296 million in the first quarter of 2021 to €319 million in the first quarter of 2022, corresponding to organic growth of 7%. Operating EBITDA increased from €30.2 million in the first quarter of 2021 to €38.3 million in the first quarter of 2022 with positive contributions from applications and solutions.

NKT’s high voltage order book stood at €2.75 billion at the end of the first quarter of 2022 (€2.35 billion in std. metal prices). This was less than the 2.87 billion euros (2.43 billion euros in std. metal prices) at the end of the previous quarter. Several change orders for existing projects and onshore projects were added in the first quarter of 2022.

In January 2022, NKT acquired Ventcroft Ltd to strengthen its position in fire resistant electrical cable technology. With this acquisition, NKT has expanded its portfolio of low voltage power cables and building wires, an important step in its growth strategy. NKT will now focus on increasing production to expand its presence in fire resistant construction cables in the European market.

NKT Photonics: Q-record1 revenue
NKT Photonics revenue for the first quarter of 2022 amounted to €16.1 million, compared to €15.7 million for the first quarter of 2021. This corresponds to an organic growth of 7%. The positive growth was driven by three of the four segments and was achieved on top of strong organic growth of 26% in the first quarter of 2021.

Operating EBITDA for the first quarter of 2022 amounted to -€1.7 million, down slightly compared to the first quarter of 2021. This change is mainly due to the write-downs related to inventories of obsolete and slow moving raw materials. .

In March 2022, NKT Photonics sold its LIOS detection business. With this divestiture, NKT Photonics is fully focused on its core business in lasers and fiber optic solutions for the medical and life sciences, quantum technology and nanotechnology, industrial, aerospace markets. and defense.

NKT A/S is hosting a conference call for investors and financial analysts at 10:00 a.m. CET on May 18, 2022. It can be viewed at investor.nkt.com. The call presentation will be available prior to the conference call. To attend, please dial (confirmation code: 2198684):

DK +45 32 72 04 17
UK +44 207 192 8338
USA +1 646 741 3167

Investor Relations: Michael Nass Nielsen, Head of Investor Relations, tel. : +45 2494 1654
Media relations: Louise Westh Naldal, group communications manager, tel. : +45 2982 0022


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