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Long-term and active transformation of businesses - our core competence
NKT’s core competence is through active ownership to drive long-term value creation. The tools - NKT’s knowledge and experience of industrial operations, global mindset and business acumen - are applied consistently. Typically, the value creation is realised through strategic re-focus, targeted investment, stringent financial governance and organic growth combined with mergers and acquisitions. When NKT no longer considers itself the best owner, a rigorous search is conducted to find the best alternative for the future development of the business concerned. Such alternatives may be divestment, de-merger or a strategic partnership with a view to optimising value creation going forward, this mindset will be used to further develop NKT’s core businesses. Key targets are:
This also implies that NKT will exploit opportunities to grow through acquisitions - both within its current businesses, and potentially also within adjacent business areas that offers synergies with the existing business portfolio.
NKTs structure supports stronger value creation
NKT believes that superior long-term value creation is driven by the ability to create an industrial platform for our investments which offers a stable environment supporting the long-term development of the businesses. This ‘no end-of-life’ setup encapsulates our competitive advantage compared with other investment vehicles.
NKT also drives its businesses based on a close monitoring and analysis of megatrends. This influences how we optimise our investment and divestment decisions, but also how the existing businesses are operated and improved. NKT’s strategic direction is based on megatrends such as urbanisation, sustainable energy supply, and healthcare demand, which we believe will remain strong macro drivers in the coming years and represent opportunities for further development of our businesses.
Group strategic targets
NKT drives its businesses via ambitious, long-term strategic targets in addition to its specific business unit targets. NKT also actively explores investment and divestment opportunities for selected parts of its business units. Materialisation of such opportunities depends on factors such as strategic fit and valuation, all based on the assessment of whether NKT is the best owner.
NKT's long-term strategic targets are: