NKT (NKT) investor relations material

Strategic direction and market outlook

• Charging Forward shifts focus from portfolio transformation and capacity build-out to execution, value creation, efficiency and selective profitable growth through 2030, guided by Execute, Excel and Evolve.

• Shifted from a diverse industrial portfolio to a focused power cable systems provider, concentrating capital, technology and operations on the cable market.

• Electrification, renewables and grid modernization underpin demand; global annual grid investment is expected to rise from EUR 350bn to EUR 850bn, while global electricity demand is projected to increase 80% by 2050.

• Selective organic growth may include vertical integration, modular factory expansions and greenfield capacity; M&A is an option, subject to long-term value creation and disciplined returns.

Investment and execution

• The EUR 2bn CapEx program covers 2025–2028 and is a ceiling for currently known capacity plans, with most investments expected online in 2027.

• Karlskrona’s new high-voltage factory, described as the world’s largest offshore cable factory, is scheduled for commercial operation in Q2 2027; controlled ramp-up is expected to reach full revenue generation in 2029.

• Cologne expansion is expected to be operational in 2027; Falun and Velké Meziříčí expansions are complete, Asnæs is ramping up, and Esposende capacity is due online by year-end.

• Transmission backlog was EUR 13bn at June 30, with EUR 2.5bn in additional booking commitments; projects extending beyond 2030 support execution and earnings visibility.

• Priorities include delivering investments and backlog on time, cost and quality, improving productivity and asset returns, advancing technology and maintaining disciplined growth.

Financial outlook and capital allocation

• 2026 guidance remains unchanged from August: turnover of EUR 2.65bn–EUR 2.75bn and operational EBITDA of EUR 400m–EUR 430m; the year is framed as consolidation of recent investments.

• 2030 ambitions are reaffirmed: organic revenue CAGR above 7% from 2024, operational EBITDA above EUR 900m and ROCE above 22%; the 2028 ROCE ambition remains above 20%.

• Completion of the EUR 2bn investment program is expected to support higher cash generation; post-program base CapEx is projected at ~4% of revenue.

• Capital priorities include a robust, investment-grade balance sheet and a 6.0x debt/EBITDA leverage target; value-enhancing investment and M&A remain disciplined, with excess cash available for buybacks or extraordinary dividends.

• A dividend may resume as early as 2028 when free cash flow is meaningful; the stated minimum is 20% of adjusted net profit, with stable dividends prioritized before extraordinary dividends or buybacks.