NKT (NKT) Status Update summary

Updated Financial Ambitions for 2028

• Organic revenue CAGR target raised to over 14% from 2021 to 2028, up from the previous >12% ambition.

• Operational EBITDA ambition increased to above €700 million by 2028, up from €550 million.

• Return on capital employed (RoCE) ambition maintained at above 20%.

• Upgraded ambitions reflect improved order backlog, investments in high- and medium-voltage capacity, and acquisitions such as Solidal.

• Enhanced earnings visibility from a larger high-voltage order backlog and strong demand for power cable solutions.

Investment Program and CapEx Outlook

• Accumulated CapEx for 2025–2028 expected to be around €2 billion, with 75% for growth and 25% for maintenance.

• Major investments include high-voltage expansion in Karlskrona, new vessel, and upgrades in Denmark, Sweden, Czech Republic, Germany, and Portugal.

• Karlskrona factory expansion cost increased by €300 million due to scope, design, and inflation, but remains accretive to RoCE target.

• New assets from Karlskrona expected operational from 2027; CapEx peaks in 2025 and normalizes post-2028.

• Full earnings effect of investments expected beyond 2028.

Risk Management and Project Execution

• Project risks include soil conditions, building design changes, and cost inflation, some of which have materialized.

• Detailed bottom-up risk assessment conducted, with contingency included in revised budget.

• Timeline for major projects remains unchanged despite cost increases.

• Ongoing focus on balancing time, quality, and cost, with priority on maintaining schedule and quality.