Slides
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August 2025 H1 2025 Interim Report Webcast Presentation
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Today’s presenting team | 2 Claes Westerlind President & CEO Line Andrea Fandrup CFO NKT A/S | H1 2025 | Webcast | August 2025
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Forward looking statements This presentation and related comments contain forward- looking statements. Such statements are subject to many uncertainties and risks, as various factors of which several are beyond NKT’s control, may cause that the actual development and results differ materially from the expectations. NKT A/S | H1 2025 | Webcast | August 2025 | 3
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Key messages Q2 2025 High activity level and progress on ongoing investments across all three business lines * Std. metal prices. | 4 Organic growth of 13% driven by high activity level across all three business lines Updated 2025 outlook NKT now expects revenue (in std. metal prices) of approximately EUR ~2.65bn- 2.75bn and operational EBITDA of approximately EUR ~360-390m Capacity expansion projects progressing according to plan across all business lines. New high- voltage capacity in Karlskrona on track to be operational from 2027 Record-high operational EBITDA of EUR 105m up from EUR 86m in Q2 2024, driven by Applications and Service & Accessories NKT A/S | H1 2025 | Webcast | August 2025
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NKT A/S | H1 2025 | Webcast | August 2025 | 5 Agenda 06 13 18 Business highlights Financial highlights Questions & Answers
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Financial performance in Q2 2025 13% organic revenue* growth with high activity level across all three business lines * Std. metal prices | 6 Key financial highlights (EURm)Key developments in Q2 2025 ▪ Solutions with organic revenue* growth of 18% driven by high activity level, specific variation orders and overall satisfactory execution on the high order backlog. Operational EBITDA was largely unchanged from Q2 2024. ▪ Applications organic revenue* growth of 11% and higher operational EBITDA driven by the SolidAl acquisition and robust demand in the power distribution grid segment. Demand in the construction-exposed segment remained subdued. ▪ Service & Accessories more than doubled operational EBITDA with high activity level, satisfactory execution and improved margins in both the Service and the Accessories business. Revenue* Operational EBITDA 13% Revenue* Organic growth Margin*Operational EBITDA 14.2% NKT A/S | H1 2025 | Webcast | August 2025 86 105 19 2024 2025 605 723 118 2024 2025 14.5% Q2 Q2 1,139 1,353 214 2024 2025H1 161 186 2024 2025 25 H1 14.1% 13.8% 12%
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Solutions – Q2 2025 * Std. metal prices Note: AC = Alternating Current and DC = Direct Current | 7 Q2 2025 financial highlightsHigh activity level and overall satisfactory execution Development during Q2 2025 Customer offerings ▪ High-voltage AC/DC off-/onshore power cable solutions 450m Revenue*, EUR (Q2 2024: EUR 379m) 66m Oper. EBITDA, EUR (Q2 2024: EUR 67m) 18% Organic growth (Q2 2024: 33%)▪ Organic growth of 18% driven by continued high activity level, specific variation orders and overall satisfactory execution. Operational EBITDA largely unchanged from 2024. Lower operational EBITDA- margin of 14.7% due to project mix and specific variation orders with a relatively lower margin. ▪ Continued progress on several projects including Champlain Hudson Power Express, Hornsea 3, East Anglia 3, SuedLink, and SuedOstLink. ▪ The high-voltage investment programmes progressed according to plan, and activities are ongoing across several workstreams. Capacity is expected to be operational from 2027. NKT Solutions Applications Serv. & Acc. NKT A/S | H1 2025 | Webcast | August 2025
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High-voltage market and order backlog Continued high level of market activity in Q2 2025. High-voltage order backlog maintained at high level | 8 NKT Solutions Applications Serv. & Acc. ▪ NKT estimates that the value of projects awarded in its addressable high- voltage power cable market was around EUR 3bn in H1 2025, majority based on DC technology. ▪ During the quarter, the high-voltage order backlog was supplemented by smaller orders and variation orders. At end-Q2 the high-voltage backlog was slightly down compared to end-Q1 2025 driven by ongoing execution. ▪ NKT continues to anticipate that its average addressable high-voltage market will be above EUR 10bn per year between 2024 and 2030. In H2 2025, several larger orders are expected to be awarded in the market. ▪ Short-term variations from volatile political and economic environment, but supply/demand balance is expected to be healthy throughout the decade. High-voltage market is expected to become more balanced when approaching the 2030’s. NKT A/S | H1 2025 | Webcast | August 2025 10.8 10.6 10.1 3.1 Dec. 2021 4.7 Dec. 2022 >2.5 Dec. 2023 >3.5 Dec. 2024 >3.5 Jun. 2025 Booking commitments Projects in backlog High-voltage order backlog (EURbn) ~90%European Transmission System Operator ~10% Other High-voltage order backlog by customer (%) ~55% Interconnector~40%Offshore wind <5% Power-from-shore High-voltage order backlog by application (%)
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Applications – Q2 2025 * Std. metal prices | 9 NKT Solutions Applications Serv. & Acc. Q2 2025 financial highlightsOrganic growth* driven by power distribution grid segment Development during Q2 2025 Customer offerings ▪ Medium-voltage power cables for distribution grid ▪ Low-voltage power cables and building wires ▪ Telecom and other specialty power cables 234m Revenue*, EUR (Q2 2024: EUR 175m) 31m Oper. EBITDA, EUR (Q2 2024: EUR 21m) 11% Organic growth (Q2 2024: 3%) NKT A/S | H1 2025 | Webcast | August 2025 ▪ Revenue* increase driven by SolidAl acquisition and robust demand in the power distribution grid segment. The construction-exposed segment remained subdued. However, a slight sequential improvement was observed from Q1 to Q2. ▪ EBITDA increased to EUR 31m driven by higher revenue. Operational EBITDA margin* Improved from 11.8% in Q2 2024 to 13.0% in Q2 2025, mainly driven by the SolidAl acquisition and higher revenue. ▪ Capacity investments in Denmark and Portugal progressed according to schedule. SolidAl integration progresses according to plan.
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Service & Accessories – Q2 2025 * Std. metal prices | 10 NKT Solutions Applications Serv. & Acc. Q2 2025 financial highlightsGrowth in revenue and earnings driven by both business areas Development during Q2 2025 Customer offerings ▪ High- and medium-voltage accessories ▪ Power cable services 70m Revenue*, EUR (Q2 2024: EUR 64m) 14m Oper. EBITDA, EUR (Q2 2024: EUR 5m) 7% Organic growth (Q2 2024: 19%)▪ Revenue increased from Q2 2024, with a high activity in both business areas. Organic growth was driven by the Accessories business. ▪ Operational EBITDA more than doubled to EUR 14m, driven by the high activity level and improved profitability in both business areas. ▪ NorNed interconnector repair was completed during the quarter. ▪ High-voltage capacity expansion in Accessories and new test hall in Allingsas was completed as expected during the quarter. NKT A/S | H1 2025 | Webcast | August 2025
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Update on major capacity investment projects New high-voltage factory in Karlskrona | 11NKT A/S | H1 2025 | Webcast | August 2025 New cable-laying vessel, NKT Eleonora New medium-voltage capacity across four sites Key activities: ▪ Progressing according to plan across multiple work streams ▪ New logistics center inaugurated as first completed building Key activities: ▪ Progressing according to plan with the hull currently being constructed Key activities: ▪ Construction work in Denmark ongoing according to timeline. Extrusion tower in final stages of construction ▪ Expansion in Portugal progressing as planned with construction of buildings ongoing Key activities: ▪ Progressing according to plan across work streams ▪ Installation of new extrusion line initiated. Installation of other production assets ongoing Additional high-voltage capacity in Cologne
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| 12 Agenda 06 13 18 Business highlights Financial highlights Questions & Answers NKT A/S | H1 2025 | Webcast | August 2025
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Income statement: Revenue growth driven by all three business lines ▪ 13% organic growth* with high activity level across all three business lines. ▪ Operational EBITDA increase of EUR 19m compared to Q2 2024 driven by Applications and Service & Accessories, enabling a margin increase from 14.2% to 14.5%. ▪ Financial items of EUR -1m compared to an income of EUR 16m in Q2 2024 mainly driven by exchange rate fluctuations of the SEK. ▪ Tax of EUR -16m, up from EUR -2m in 2024, which was impacted by regulation of German tax assets. The effective tax rate was 23% in Q2 2025. ▪ Average number of employees increased by 989 from Q2 2024 average, driven by high activity levels, ongoing investments, and the SolidAl acquisition. Key developments in Q2 2025 * Std. metal prices. | 13NKT A/S | H1 2025 | Webcast | August 2025 Income statement highlights EURm 2025 2024 2025 2024 Revenue 945 802 1,782 1,506 Revenue (Std. metal prices) 723 605 1,353 1,139 Organic growth NKT 13% 29% 12% 28% Operational EBITDA 105 86 186 161 Operational EBITDA margin* 14.5% 14.2% 13.8% 14.1% One-off items 0 -1 0 -1 EBITDA 105 85 186 160 Depreciation, amortisation and impairment -34 -24 -64 -46 Financial items, net -1 16 24 24 Tax -16 -2 -35 -15 Net result from continuing operations 54 75 111 123 Net result from discontinued operations 0 104 0 101 Net result 54 179 111 224 Average number of employees NKT 6,097 5,108 6,000 5,043 Q2 H1
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Cash flow: Negative cash flow driven by investments and working capital Key developments in Q2 2025 ▪ Cash flow from operating activities of EUR -1m with negative contribution from changes in working capital and other items more than offsetting positive operational EBTIDA. ▪ Changes in working capital in Q2 2025 were due to phasing of milestone payments in Solutions. The development in the first half of the year also reflects timing effects following a strong end-2024 position. ▪ Cash flow from investing activities of EUR -174m compared to investments of EUR -100m in Q2 2024. The increase is driven by ongoing investments to increase capacity and capabilities in Solutions and Applications. A high investment level is expected throughout 2025. ▪ Free cash flow of EUR -175m with EBITDA improvement being more than offset by changes in working capital and the high investment level. Cash flow statement highlights | 14NKT A/S | H1 2025 | Webcast | August 2025 Update EURm 2025 2024 2025 2024 Cash flow from operating activities -1 642 -142 690 EBITDA 105 85 186 160 Financial items paid/received, net -8 16 12 24 Changes in working capital -82 585 -316 543 Others -16 -44 -24 -37 Cash flow from investing activities -174 -244 -341 -308 Investments -174 -100 -341 -164 Acquisition and divestment of businesses 0 -144 0 -144 Free cash flow -175 398 -483 382 Cash flow from financing activities -23 -5 -38 -17 Cash flow from discontinued operations 0 248 0 248 Net cash flow -198 641 -521 613 Q2 H1
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Balance sheet: Increased working capital and capital employed Key developments in Q2 2025 ▪ Working capital increased from EUR -1,184m at end-Q1 2025 to EUR -1,132m due to phasing of milestone payments in Solutions. ▪ RoCE of 30% down from 32% at end-Q1, driven by higher capital employed from investments and the working capital development. ▪ Net interest-bearing debt increased by EUR 196m from end-Q1, driven by negative free cash flow. ▪ Available liquidity reserves of EUR 1,393m, comprising cash of EUR 993m and undrawn credit facilities of EUR 400m. During Q2, NKT renewed its Revolving Credit Facility. ▪ A conservative capital structure is maintained to execute on investments in Solutions and Applications as NKT continues to progress on its growth journey. Balance sheet highlights | 15NKT A/S | H1 2025 | Webcast | August 2025 31 Dec EURm 2025 2024 2025 2024 2024 Working capital -1,132 -1,152 -1,184 -667 -1,432 Capital employed 1,196 552 1,033 955 573 RoCE 30% 30% 32% 22% 35% Net interest-bearing debt (NIBD) -757 -1,277 -953 -642 -1,280 NIBD / Operating EBITDA, LTM -2.0x -4.2x -2.7x -2.4x -3.7x Total assets 4,938 4,597 4,930 3,707 4,859 Total equity 1,953 1,829 1,986 1,597 1,853 30 Jun 31 Mar
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Financial outlook for 2025 updated * Std. metal prices | 16 The financial outlook is based on several assumptions including: ▪ Satisfactory execution of high-voltage investments and projects to deliver on expected profitability margin ▪ Satisfactory operational execution across business lines ▪ Stable market conditions for Applications and Service & Accessories ▪ Normalised offshore power cable repair work activity ▪ Stable supply chain with limited disruptions and access to the required labour, materials, and services ▪ Stable development in global economy, foreign currency, and metal prices NKT A/S | H1 2025 | Webcast | August 2025 Revenue* EUR ~2.65-2.75bn Operational EBITDA EUR ~360-390m Previously EUR ~2.37-2.52bn Previously EUR ~330-380m
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| 17NKT A/S | H1 2025 | Webcast | August 2025 Trajectory towards medium-term financial ambitions for 2028 Organic revenue* CAGR from 2021 >14% Operational EBITDA EUR >700m RoCE% >20%
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Key messages Q2 2025 High activity level and progress on ongoing investments across all three business lines * Std. metal prices. | 18 Organic growth of 13% driven by high activity level across all three business lines Updated 2025 outlook NKT now expects revenue (in std. metal prices) of approximately EUR ~2.65bn- 2.75bn and operational EBITDA of approximately EUR ~360-390m Capacity expansion projects progressing according to plan across all business lines. New high- voltage capacity in Karlskrona on track to be operational from 2027 Record-high operational EBITDA of EUR 105m up from EUR 86m in Q2 2024, driven by Applications and Service & Accessories NKT A/S | H1 2025 | Webcast | August 2025
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Investor Relations Update Questions & Answers
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Financial calendar 2025 | 20 Event2025 For full list of Investor Relations events, please visit investors.nkt.com NKT A/S | H1 2025 | Webcast | August 2025 19 November Interim Report, Q1-Q3 2025