NKT — Earnings Release 2017

Aug 17, 2017

Nasdaq Copenhagen
Nikolaj Plads 6
DK-1007 Copenhagen K

17 August 2017
Announcement No. 15

NKT A/S Q2 2017: Significant increase in operational EBITDA

Due to the intended split of NKT A/S, Nilfisk is considered as discontinued
operations and therefore a separate Q2 2017 Interim Report is issued (enclosed
in this announcement).

Group Executive Director Michael Hedegaard Lyng states:
- Q2 2017 was the first quarter with full impact of the acquired ABB HV Cables
business and it contributed significantly to the results. The operational
EBITDA in NKT doubled compared with last year and the integration process is on
track. In Nilfisk, Hans Henrik Lund joined as CEO in the beginning of August
2017 as planned, and the company’s financial performance showed continued
organic growth and improved earnings in Q2 2017. Lastly, the intended split of
NKT A/S is progressing according to plan and the first trading day for NKT A/S
and Nilfisk A/S as two separately listed companies is expected to be 12 October
2017.

Q2 2017 financial highlights

EURm NKT NKT Photonics Nilfisk**
(formerly NKT Cables)

---

Revenue 288.1* 11.2 280.0

Organic growth 8% 26% 2%

Operational EBITDA 42.9 0.7 35.9***

Operational EBITDA margin 14.9% 6.3% 12.8%**

• Std. metal prices, ** discontinued operations, *** before special items

2017 outlook maintained
The NKT A/S 2017 financial outlook comprises separate guidance for each
business unit and the guidance provided 11 April 2017 is confirmed, cf. Company
Announcement No. 8 and Q2 2017 Interim Report page 6.

NKT (formerly NKT Cables): Operational EBITDA doubled in Q2 2017 driven by the
acquired activities. The integration process of ABB HV Cables on track
NKT increased revenue by EUR 88.0m to EUR 288.1m (std. metal prices) in Q2 2017
driven by the acquired business. The organic growth was 8% in the quarter and
-1% excluding the acquired business. The increased revenue led to operational
EBITDA of EUR 42.9m compared with EUR 21.5m in Q2 2016. The integration of the
acquired ABB HV Cables activities is on track with the combination of the teams
in the Cologne and Karlskrona plants advancing. The divestment of the
Automotive business was closed on 30 April 2017.

NKT Photonics: Strong organic growth and announcement to acquire Onefive
As expected, NKT Photonics delivered a strong recovery in organic growth in Q2
2017, realising 26% driven by the Imaging & Metrology and Sensing & Energy
segments. The higher revenue drove an improvement in EBITDA of EUR 1.0m from Q2
2016 and the EBITDA margin was 6.3%. NKT Photonics announced the acquisition of
Onefive, a leading supplier of ultrafast lasers, that will be completed on 1
September 2017 as the parties have obtained all required approvals.

Nilfisk: Continued positive development in organic growth and margins. New CEO
on board
In Q2 2017, Nilfisk reported organic growth of 2% driven by continued solid
performance in the Americas of 6%. The operational EBITDA margin before special
items was up by 1.0%-point to 12.8% compared with Q2 2016 due to changed
product mix and operational improvements. As planned, Nilfisk’s new CEO, Hans
Henrik Lund, joined in the beginning of August 2017 and will lead Nilfisk
towards the listing expected to be completed 12 October 2017.

Teleconference
NKT hosts a teleconference for investors and financial analysts at 9:00 am CET
today, and it can be accessed at www.nkt.dk. The presentation for the call will
be available shortly after this release. To attend, please dial in from:
Denmark: +45 3271 1659
UK: +44 (0) 20 3427 1914
US: +1 646 254 3364

Contacts Press
Investors Helle Gudiksen
Michael Nass Nielsen Tel: +45 2349 9098
Tel: +45 2494 1654