NKT (NKT) investor relations material

Strategic direction and market outlook

• Charging Forward shifts focus to execution, value creation, efficiency and selective growth through 2030, guided by Execute, Excel and Evolve.

• Since 2024, the business has transitioned to a pure-play power cable system provider, divesting non-core assets and expanding production capabilities across Europe.

• Global electricity demand is projected to rise 80% by 2050; annual grid investment is expected to increase from EUR 350bn to EUR 850bn, supporting long-term infrastructure demand.

• Europe remains the core market, with opportunities in the Mediterranean, North America and Asia; transmission’s estimated addressable market exceeds EUR 10bn annually through 2030.

• Permitting delays, overhead-line choices and affordability may affect near-term build-outs; beyond 2030, supply and demand are expected to be broadly balanced absent mega-projects or a step-change in backlog.

Investment and operational execution

• The EUR 2bn CapEx program covers 2025–2028 and is a ceiling for currently known capacity plans; execution focuses on completing investments and converting the EUR 13bn transmission backlog into revenue, earnings and cash.

• Karlskrona’s new high-voltage factory is expected to begin commercial operation in Q2 2027, with revenue and utilization ramping through 2029; modular expansion capacity is built in.

• Karlskrona and Cologne expansions are expected to become operational during 2027; Falun and Velké Meziříčí expansions are complete, Asnæs is ramping up and Esposende capacity is due by year-end 2026.

• NKT Eleonora adds 23,000-ton cable capacity across three turntables; the T-3600 trencher can bury cable beyond 5.5m, extending turnkey installation capability.

• Investment in factories, vessels and R&D is on track, with quality and risk controls maintained during backlog execution.

Financial outlook and capital allocation

• 2026 guidance is EUR 2.65bn–EUR 2.75bn turnover and EUR 400m–EUR 430m EBITDA; the outlook remains unchanged from August, when the EBITDA range was narrowed and raised.

• 2030 ambitions are average annual growth above 7% from 2024, operational EBITDA above EUR 900m and ROCE above 22%, based on the EUR 2bn CapEx program.

• ROCE ambition for 2028 is above 20%; 2025 ROCE reached 24%, versus a 12% target set for that year in 2022.

• Cash generation is expected to strengthen as EBITDA grows beyond CapEx after the investment bulge; post-program base CapEx is estimated at ~4% for financial planning.

• Capital priorities are balance-sheet strength and target leverage of 6.0x debt/EBITDA, value-enhancing investment, stable dividends with a minimum 20% of adjusted net profit, then buybacks or extraordinary dividends for excess cash.