NKT Holding Interim Report Q2 2012

8/24/2012 1:57 AM EST

NKT Holding A/S
Half Year financial report

NKT Holding Interim Report Q2 2012

NASDAQ OMX Copenhagen
Nikolaj Plads 6
DK-1007 Copenhagen K

24 August 2012
Release No. 19

Uncertainty about the European economy impacted NKT's revenue in Q2, but
despite a decline of 3%, the Group managed to increase operational EBITDA by
21%. This indicates that costs are kept on a short leash and thereby mitigates
the effects of declining growth. The same trend was expressed for 1st half,
where organic growth for the Group decreased by 4%, while operational EBITDA
increased by 20%. 

Profit from the sale of NKT Flexibles was 100 mDKK higher than previously
expected. The sale has reduced the Group's net interest-bearing debt by 2
bnDKK, making today's debt equivalent to 2.5 times last 12 months operational
EBITDA. 

Also working capital and cash flow developed positively. Working Capital was
reduced 1% point from Q1 2012, and cash flow from operations was on a par with
the same period the year before. 

In view of the current economic development particularly in Europe, the Group
no longer expects revenue growth in 2012. The competition in the market for
high voltage cables has grown, customers have postponed cable projects into
2013, and in China, the market for catenary wires for high-speed railway
projects, develops slower than expected. Also Nilfisk-Advance is affected by
the economic slowdown, and therefore NKT alters the forecast for 2012 from the
previous 5-10% growth to zero growth. 

However, earnings are not expected to decrease to the same extent. In recent
years NKT Cables has redirected business towards being a project based
submarine- and high voltage cable producer, and Nilfisk-Advance strongly
focuses on emerging markets. Based on this, operational EBITDA for 2012 is now
expected to be approx. 1,050 mDKK, against earlier expected earnings in the
range 1,050-1,250 mDKK. Still up 200 mDKK on 2011 results and thus showing the
robustness of the business model. 

Please direct any questions to the signer on telephone +45 4348 2000.

Yours faithfully
NKT Holding A/S
Thomas Hofman-Bang
President and CEO
________________________________________________________

NKT Holding A/S is one of Denmark's major industrial groups with 9,100
employees at 31 December 2011 and a turnover in 2011 of 15.6 bnDKK. The group
consists of NKT Cables (the energy sector), Nilfisk-Advance (the cleaning
industry) and Photonics Group (the optical industry). Read more at www.nkt.dk.