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NKT A/S Annual Report 2020: Improved financial results and record high-voltage order backlog

24 February 2021
Announcement No. 2

NKT A/S Annual Report 2020: Improved financial results and record high-voltage order backlog

NKT CEO Alexander Kara says:
- 2020 was a successful year for NKT where our contribution to connecting a greener world gained further speed. This was mainly realized with a record-high order intake of high-voltage projects driven by our leading high-voltage DC technology. I am pleased to see that all three business lines in NKT contributed positively to the improved financial performance. In NKT Photonics, organic growth in 2020 was negative as the Industrial segment was impacted by the COVID-19 pandemic, which could not be offset by positive development in Medical & Life Science.

Financial highlights

 NKTNKT Photonics
EURmQ4 20202020Q4 20202020
Revenue268.7*1,087.0*25.969.9
Organic growth1%15%3%-6%
Operational EBITDA9.156.74.22.6
Operational EBITDA margin3.4%*5.2%*16.2%3.7%

* Std. metal prices

2021 financial outlook
In NKT, Revenue (in 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. NKT’s financial outlook for 2021 was already published in the Q3 2020 Interim Report.

In NKT Photonics, the organic revenue growth is expected to be approx. 0-10%, and the EBITDA margin is expected to be approx. 3-7%.

NKT: Operational EBITDA more than tripled and record-high order intake
Driven by growth in all three business lines, NKT’s revenue increased to EUR 1,087m in 2020 from EUR 945m in 2019. This corresponded to organic growth of 15%. The main growth contributors were Solutions and Service & Accessories through increased levels of activity and successful business expansion. All three business lines contributed to the increased earnings as the operational EBITDA amounted to EUR 56.7m, against EUR 15.1m in 2019. While this improvement was satisfactory, NKT remains set to improve profitability significantly.

2020 was the best-ever year for NKT in terms of high-voltage order intake. This growth in orders was primarily driven by the ongoing European transition towards increased generation of renewable energy. The total order intake in 2020 amounting to EUR 2.3bn was driven by five large DC projects.

NKT Photonics: Financial performance negatively impacted by COVID-19 pandemic
The revenue for NKT Photonics amounted to EUR 69.9m in 2020, compared with EUR 74.6m in 2019, corresponding to -6% organic growth. Revenue performance was adversely influenced by the COVID-19 pandemic, particularly in 1st half 2020. This Industrial market was impacted negatively by restrictions and uncertainty surrounding the pandemic with several orders postponed. The slowdown in Industrial outweighed the positive performance in the Medical & Life Science segment. Driven by the lower revenue, the EBITDA was EUR 2.6m compared to EUR 14.6m in 2019, which included some positive non-recurring items.

The Board of Directors intends 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.

Teleconference
NKT A/S hosts a teleconference for investors and financial analysts at 10:00 am CET on 24 February 2021. 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: 6033316):


DK +45 32 72 04 17
UK +44 (0) 207 192 8338     
US +1 646 741 3167

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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