Assets
| Type | Time | Amount | Unit |
|---|---|---|---|
| ifrs-full:Assets | 2025-12-31 | 5595000000 | eur |
| ifrs-full:Assets | 2024-12-31 | 4859000000 | eur |
Revenue
| Type | Start date | End date | Amount | Unit |
|---|---|---|---|---|
| ifrs-full:Revenue | 2025-01-01 | 2025-12-31 | 3565000000 | eur |
| ifrs-full:Revenue | 2024-01-01 | 2024-12-31 | 3252000000 | eur |
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<mrv:SustainabilityReport contextRef="ctx-1" id="f1__s10__7__6-1" xml:lang="en">NKT business modelResourcesBusinessValue creationPeopleCable and accessories Cable laying Power connectivityTransmission End userA greener worldNKTâs core consists of a diverse, manufacturingand installationConnecting energy and distribution Delivering energy to cities Sustainability is at the heart of NKT engaged, and highly skilled Sea and landsources including wind, and communitieswith a strong focus on connecting workforcesolar, and hydroa greener world and delivering net- zero emissions by 2050InnovationMore than 130 years of pioneering Societal value the power cable industry with NKT has a strong focus on ensuring innovative technology for the futureequal opportunities in the organisa- tion, actively engaging in local com- Partnersmunities, and operating according NKTâs business is built on to high safety standardslong-standing relations and strong partnershipsCustomer valueNKT supports its customers with extensive experience, high quality solutions and services, as well as ABstrong project execution and reli-abilityShareholder valueABNKT is creating shareholder value through business performanceNKT facilitates the transmission of energy by NKT enables the energy transition and electrification connecting energy sources to the existing power grid.of society by supplying power cable systems for distribution and transmission of energy.1 This page covers information to comply with ESRS 2 SBM-1, paragraph 38, 40a, 42a-b.â We remain focused on executing our high voltage order backlog and ramping up our major capacity expansion projects. At the same time, we continue to strengthen our technological capabilities and sustainable competitiveness, all while keeping people the centre of NKT.âOver the past decade, NKT has completed a comprehensive trans-formation from a diversified con-glomerate into a growing, pure-play power cable solutions provider and a European leader in the energy transition.In the past five years, the worldâs energy transition has accelerated, driven by increased renewable power generation, the electrification of society, and extensive grid mod-ernisation. In anticipation of these developments, NKT initiated signifi-cant investments in physical assets and people across the company. These investments have fuelled growth in revenues and earnings and increased the high-voltage order backlog across markets.As these expansions approach completion, NKT is entering a new phase. The company is now well positioned to serve high market demand at greater scale, with strengthened technological capa-bilities and a more focused and expanded footprint. Consequently, the strategic focus is shifting from transformation and accelerated growth in capacity and capabilities toward driving excellence in execu-tion and sustainable competitive-ness. At the same time, there is a continued strong focus on technol-ogy leadership and selective growth to further strengthen the pure-play power cable portfolio. Against this backdrop, NKT has introduced its new corporate strategy for 2026â2030: Charging Forward.Charging ForwardCharging Forward sets the direc-tion for NKTâs next strategic period through to 2030. The strategy prioritises the execution of the sig-nificant high-voltage order backlog and the ramp-up of already com-mitted capacity expansions, while strengthening scalable capabilities and reinforcing long-term resilience and competitiveness. The strategy builds on NKTâs leading position in Europe, while selectively capturing opportunities globally where a sus-tainable, long-term presence can be enhanced.In a world of rising electrification demand and increasing geopolitical uncertainty, the ability to deliver reliably, sustainably, and at scale will be central to maintaining leadership in the power cable industry.The name Charging Forward reflects both identity and ambition. âChargingâ represents the energy that flows through NKTâs cables and the commitment of its people, while âForwardâ signals continued progress - building on a decade of successful transformation to take the next decisive step in shaping the future of energy transmission.Sustainability as a core element of Charging ForwardSustainability is at the core of the new strategy, with a clear ambition of maintaining NKTâs position as a recognised leader of sustainable power cable solutions. As a key enabler of the energy transition, NKT plays an essential role in building a sustainable future. NKTâs ambition is clear and two-fold. Firstly, by maximising the contribu-tion to the decarbonisation of soci-ety through the facilitation and ena-blement of clean electricity in grid infrastructure - NKTâs handprint. Secondly, by minimising NKTâs footprint by among others pursuing ambitious decarbonisation targets to reach net zero in the value chain by latest 2050. Strategic pillarsCharging Forward builds on NKTâs strengths and positions the company for the next stage of sustainable growth, enabling the energy transition and connecting a greener world.Charging Forward is structured around three pillars that guide how we will deliver, strengthen, and develop NKT in the years ahead:ExecuteDeliver on high-voltage backlog and capacity expansions by effectively managing projects and deploying scalable capabilities.ExcelBe the reliable partner for customers, employees, and society while unlocking greater value from existing assets and strengths to enhance competitiveness and future earnings.EvolveDrive continuous innovation and develop the technology leaps for the future. Target selective growth globallySolutionsThe overall energy transition, electrification of society, and need to transmit and interconnect grids continues to be a key structural growth driver for high-voltage power cable solutions. In 2025, Solutions continued to deliver organic revenue growth and increased operational EBITDA, driven by high activity levels and overall satisfactory project execution. In parallel, the investments in increased high-voltage capacity progressed according to plan. The high-voltage order backlog was supported by additional project awards and was maintained at a high level, reaching EUR 10.2bn by the end of 2025.1Offshore AC and DC power cable solutions2Onshore AC and DC power cable solutions3Installation offshore and onshore1Business line overviewSolutions serves the global high-voltage power cable market. The business provides technolo-gy-leading solutions across voltage levels and technical specifications. NKT has developed strong compe-tencies in this market for more than 130 years, successfully delivering numerous projects.Solutions operates two high-voltage factories, in Karlskrona, Sweden, and Cologne, Germany. These factories complement each other in the allocation of incoming projects. In Karlskrona, the strategic focus is offshore projects, while Cologne focuses on onshore projects. Con-struction of a new high-voltage factory next to the existing factory in Karlskrona is ongoing, alongside investments to increase production capacity in Cologne. Solutions also owns and operates a cable-laying vessel, NKT Victoria, enabling Solutions to deliver complete end-to-end turnkey solutions, which are increasingly requested by custom-ers.As part of the Charging Forward strategy announced in November 2025, the Solutions business line has been renamed Transmission effective 1 January 2026. This change reflects the business lineâs role in enabling the expansion and renewal of energy transmission systems. Furthermore, the HVAC onshore project business currently within Solutions will transition to the new Grid Solutions & Accessories business line.ApplicationsIn 2025, Applications continued to improve its financial performance, showing double-digit growth in both revenue and operational EBITDA. NKT continued investing in additional capacity to meet growing demand driven by increasing electrification and the ongoing energy transition. These factors are key growth drivers for low- and medium-voltage power cable markets, where Applications is well positioned to capitalise on market trends and secure further profitable growth. 1Medium-voltage cables21 kV cables3Building wires4Telecom power cables1 Business line overviewApplications covers NKTâs medi-um-and low-voltage power cable offerings, as well as a minor posi-tion within telecom power cables. The product offering is tailored to broadly support both the growing electricity demand in European power grids and the construction sector.Applicationsâ seven main produc-tion sites are located across Czech Republic, Denmark, Poland, Swe-den, the UK, and Portugal. The cus-tomer relationship in Applications is based on long-term collaboration with several industry partners. NKT holds a leading position in parts of Northern, Central, Eastern, and Southern Europe.As part of the Charging Forward strategy announced in November 2025, the Applications business line has been renamed Distribu-tion effective 1 January 2026. This change reflects the business lineâs role in enabling the expansion and renewal of energy distribution sys-tems. Furthermore, as part of this transition, the HVAC project busi-ness from Applications will move to the new Grid Solutions & Accesso-ries business line.Service & AccessoriesPower cable services and accessories are essential components of the power cable value chain. The Service & Accessories business line is, to a high extent, dependent on the same market drivers as Solutions and Applications. In 2025, the financial performance improved with double-digit growth in both revenue and EBITDA. NKT continues to be well-positioned to capitalise on further demand going forward.1 Business line overviewService & Accessories offers a vari-ety of both offshore and onshore power cable accessories and ser-vices to maximise the utilisation, reliability, and long-term perfor-mance of power cable systems.NKT provides power cable services for both offshore and onshore markets and is a trusted partner throughout the lifecycle of a power cable system. The company has leading capabilities within repair, maintenance, and operations services with the organisation pre-dominantly located in Denmark, Germany, Poland, Sweden, the US, and the UK.NKT develops, produces, and installs a wide range of high- and medium-voltage power cable accessories including power cable joints, connectors, and terminations. These are used in offshore and onshore applications, distribution and transmission grids, and renew-able energy generation projects. The accessories are produced at sites in Germany and Sweden.As part of the Charging Forward strategy announced in November 2025, Service & Accessories was integrated into the Grid Solutions & Accessories business line effec-tive 1 January 2026. In addition to the current Service & Accessories segments, Grid Solutions & Acces-sories will also include the HVAC project business from the former Solutions and Applications business lines.Corporate governanceManagement structureNKTâs governance framework com-prises the Board of Directors, the Executive Management of NKT A/S, and the Group Leadership Team, ensuring clear accountability and effective oversight of the companyâs operations. In the context of the Corporate Sustainability Report-ing Directive (CSRD), the Board of Directors acts as the supervisory body, while the Group Leadership Team serves as the administra-tive and management body. This structure supports the execution of NKTâs new corporate strategy, Charging Forward, which empha-sises operational excellence, tech-nology leadership, and sustainability as core priorities.As a listed company on the Nasdaq Copenhagen Stock Exchange, NKT is subject to the regulatory frame-work for share issuers as well as the Danish Corporate Governance Recommendations. NKT continues to comply with the recommenda-tions issued in December 2020 and adheres to all 40 principles, reflect-ing a sustained commitment to transparency and accountability. Corporate governance reportBoard of DirectorsThe Board of Directors consists of nine members:îâ Six members elected annually at the Annual General Meeting (AGM).îâ Three members elected by Dan-ish employees for a four-year term.At the AGM held on 19 March 2025, all six AGM-elected members were re-elected: Jens Due Olsen (Chair), René Svendsen-Tune (Deputy Chair), Nebahat Albayrak, Karla Marianne Lindahl, Andreas Nauen, and, Anne Vedel.Since the publication of the 2024 Annual Report, one employ-ee-elected position has changed, with John Erik Andersen joining alongside Akos Frank and Jean Iversen, who both joined in 2024.Board compositionîâ AGM-elected members: Three females and three males, residing in Denmark, Finland, and Ger-many.îâ Employee-elected members: Three males.Nationalities represented include Danish, German, Finnish, and Dutch/Turkish.One AGM-elected member has served for more than 12 years and is therefore not considered independent under the Danish Cor-porate Governance Recommenda-tions. The Board collectively brings extensive international experience in renewable energy, infrastructure, technology, risk management, sus-tainability, law, and finance. The Board has at least seven annual ordinary meetings, with extraordi-nary meetings as required.Governance frameworkThe Board of Directors has appointed a Chairâs Committee (Chair and Deputy Chair) and estab-lished four specialised committees, each with defined responsibilities and annual work plans, and a âworking boardâ to support its over-sight responsibilities:îâ Audit Committee: Oversees financial reporting, risk manage-ment, internal controls, compli-ance, and sustainability reporting.îâ Remuneration Committee: Develops and monitors the com-panyâs remuneration policies.îâ Nomination Committee: Evalu-ates Board and leadership team qualifications and conducts annual Board assessments.îâ ESG Committee: Provides stra-tegic oversight of Environmental, Social, and Governance (ESG) initiatives.îâ Tender board: Large tenders are assessed by a Tender Board (classified as a working board) in accordance with NKTâs author-isation governance framework. The Tender Board consists of three board members together with the Executive Management. No additional remuneration is provided for participation in this work.The Tender Board is a âworking boardâ because it is convened for specific operational purposes â evaluating and approving large tenders â rather than ongoing governance. Unlike ordinary board committees with permanent man-dates and reporting duties, it oper-ates ad hoc within the authorisation framework and focuses solely on transactional decisions involving both Board and Executive Manage-ment.The governance framework is underpinned by applicable laws, regulations, recognised standards, and internal policies, including the NKT Code of Conduct.CommitteesThe committees prepare and ana-lyse matters within their respective areas, ensuring thorough ground-work for decisions by the full Board of Directors. Committees do not make decisions independently. Each committee has a standing agenda item at every ordinary Board meeting and all committee activities and recommendations are reported to the Board on a recurring basis for review and approval.Terms of reference for all Commit-tees presented above can be found here: Terms of References for Committees Audit CommitteeThe Audit Committee plays a central role in safeguarding NKTâs integrity and compliance. Its responsibilities include: îâ Ensuring accuracy and reliability of financial and sustainability reporting.îâ Monitoring internal controls and EuroSox compliance.îâ Overseeing auditor independence and statutory audits.îâ Supervising the companyâs legal compliance programme, cyber-security measures, whistleblower scheme, and enterprise risk man-agement.The EuroSox framework provides robust financial controls across all major subsidiaries, combining manual and automated processes to mitigate material risks. Annual assessments are conducted to eval-uate its effectiveness.The Committee also oversees compliance with NKTâs policies on risk management and financial reporting, covering areas such as accounting, treasury, hedging, insurance, and tax. With regard to sustainability, the Audit Committee oversees the integrity, processes, internal control framework, the audit processes, and disclosures of sustainability reporting.The Audit Committee oversees NKTâs whistleblower scheme, which enables employees and business partners to report suspected irreg-ularities. All reports are reviewed by the Chair of the Audit Committee, and serious matters are investigated thoroughly. Where concerns are substantiated, appropriate reme-dial measures are implemented. All compliance-related activities and findings are regularly reported through the Audit Committee to the full Board of Directors, ensuring 1transparency and alignment.Remuneration CommitteeThe Remuneration Committee pre-pares and evaluates remuneration policies for the BoD and Executive Management, ensuring alignment with shareholder interests and stra-tegic objectives. Fixed remuneration is designed to be competitive with-out being excessive.At the Annual General Meeting in March 2026, the Company will pro-pose an adjustment to the annual remuneration for the Board of Direc-tors. The proposal follows the most recent benchmarking conducted in 2025, building on the previous review in 2021. This analysis com-pared the Companyâs Board fees with those of companies of com-parable size and complexity listed on Nasdaq Copenhagen (C25) and showed that current remuneration levels fall below the market median.The proposed adjustment is intended to ensure the Company continues to offer a competitive and fair remuneration structure that sup-ports the attraction and retention of highly qualified Board members.Board remuneration: Fixed annual fees; AGM-elected members do not participate in incentive plans.Executive remuneration: A mix of fixed salaries and perfor-mance-based incentives tied to financial and strategic KPIs.All remuneration must be fair, reflect responsibilities, and provide attractive incentives for long-term commitment.Further details are available in notes 2.2-2.3 and in the remuneration report. Remuneration report Nomination CommitteeThe Nomination Committee defines qualifications for leadership roles and facilitates annual Board assess-ments, conducted either internally or with external consultants. These assessments evaluate Board effec-tiveness, competencies (including sustainability competencies), and focus areas.The 2025 Board assessment is ongoing using external resources. Every third year, the assessment is supported by external consultants. The Board also conducts evalua-tions of Executive Management, focusing on interaction with the Board and managementâs compe-tencies and performance. ESG CommitteeThe ESG Committee is the BoD's governance body for advising on sustainability matters and it meets at least quarterly. The ESG Commit-tee reviews sustainability impacts, 2 risks, and opportunities(IROs), as well as corporate policies, commit-ments, targets, strategies, budgets, trade-offs associated with material IROs, and other sustainability man-agement matters. Its mandate includes:Integrating sustainability into NKTâs strategy and aligning with global ESG frameworks.Overseeing risks, opportunities, due diligence, and progress toward targets.Ensuring compliance with regu-lations such as CSRD and align-ment with EU and Danish climate goals.Promoting transparency and addressing stakeholder concerns.Establishing governance struc-tures and driving sustainable prac-tices that create long-term value.Board of DirectorsAudit CommitteeRemuneration CommitteeNomination CommitteeESG Committee3Meetings in 2025(8 meetings)(5 meetings)(4 meetings)(5 meetings)(6 meetings)Jens Due Olsen 8/8 5/5 6/6René Svendsen-Tune 8/8 4/5Karla Lindahl 7/8Anne Vedel 7/8 5/5Andreas Nauen 8/8 5/5 4/4Nebahat Albayrak 7/8 4/4 4/6Akos Frank 8/8Jean Iversen 7/84John Erik Andersen 5/51 The previous two paragraphs contain information to comply with ESRS G1, paragraph 5a.2 Details on material sustainability impact, risks, and opportunities can be found on page 63.3 In line with prevailing market practice among C25 companies, NKT reports only on Board meetings where the Board convened physically or electronically. Meetings conducted by written procedure, which were included in previous years, are not included in this report.4 Since being an alternate elected in 2022 he stepped on as a Board member in April 2025.1Board of DirectorsNKT Committees: Board of Directorsâ annual base remuneration: Board of Directorsâ annual total remuneration: NKT shares at 31 December 2025: Other positions and directorships: Special qualifications:Jens Due Olsen Chair Born 1963, Danish nationalFirst elected in 2006Not considered independent due to tenureMSc Eco n.,19 9 0â ESG Committeeâ Nomination CommitteeDKK 1,125,000DKK 1,125,00051,891â KMD A/S, Deputy Chairâ European Energy, Chairâ Bioporto A/S, Chairâ Industrial managementâ Management of listed companiesâ Economic and financial mattersâ Risk management â TechnologyRené Svendsen-TuneDeputy ChairBorn 1955, Danish nationalFirst elected in 2016Considered independentBSc Eng. (hons.)â Nomination Committee, ChairDKK 750,00DKK 875,008,648â Aescolab ApS. Chairâ International managementâ Management of listed companiesâ Specialist expertise in technology, service businesses, large account sales, and strategy development with sustainability focusKarla LindahlBorn 1981, Finnish nationalFirst elected in 2020Considered independentMA in EC Competition Law, 2009Master of Laws (LLM), 2005DKK 375,00DKK 375,00â KONE Corporation, Executive Vice President for Europeâ Executive leadership of large international service and project business, operations, and organisation â International and industrial managementâ Expertise in strategy development and execution as well as com-petition and corporate lawNKT Committees: Board of Directorsâ annual base remuneration: Board of Directorsâ annual total remuneration: NKT shares at 31 December 2025: Other positions and directorships: Special qualifications:Anne VedelBorn 1981, Danish nationalFirst elected in 2023Considered independentMSc International Technology Management, 2008â Audit CommitteeDKK 375,000DKK 500,0000â Vestas Wind Systems A/S, Head of R&Dâ Senior leadership experience in the renewable energy industry and driving the energy transitionâ International expertise in technology, sales, organisational transformation, and delivering energy solutionsâ Expertise within engineering, product development, and industrialisation.â Expertise in driving large, complex product development portfolios Andreas NauenBorn 1964, German nationalFirst elected in 2017Considered independentMSc Mechanical Eng. 1991â Remuneration Committee, Chairâ Audit Committee, ChairDKK 375,000DKK 813,000â Sandbrook Capital, USA, Operating Partnerâ Semco Maritime A/S, Board memberâ International and industrial managementâ Management of listed companiesâ Financial expertise from project business applying IFRSâ Special expertise in technology, large infrastructure projects, renewable energy, and wind powerNebahat AlbayrakBorn 1968, Dutch/Turkish nationalFirst elected in 2022Considered independentLLM International and European Law, 1993â ESG Committee, Chairâ Remuneration CommitteeDKK 375,00DKK 594,000â Fortum Oyj, Executive Vice President, Sustain ability and Corporate Relations â Senior leadership experience in the energy industry and energy transitionâ International and industrial managementâ Experience from the public and private sectorâ Expertise in driving corporate sustainability strategy and performance â Specialist in corporate Reputation Management and Brandingâ Crisis managementNKT Committees: Board of Directors annual base remuneration: Board of Directorsâ annual total remuneration: NKT shares at 31 December 2025: Other positions and directorships: Special qualifications: John Erik AndersenBorn 1956, Danish nationalElected by the employees as an alternate board member in 2022Assumed the role of full board member in 2025Not considered independent due to employment with NKTSupport specialistNKT (Denmark) A/SMicrosoft Certified engineerWindows Exchange administrator and Windows server Hybrid administratorDKK 281,000DKK 281,000297IT management and digital supportAkos FrankBorn 1984, German nationalElected by the employees as an alternate board member in 2022 Assumed the role of full board member in 2024Not considered independent due to employment with NKTHead of Strategic Projects & Legal OperationsNKT Cables Group A/SLL.M. in U.S. and Global Business Law, 2009University Diploma in International Nuclear Law, 2008Juris Doctor, 2008Mastering Board Governance, IMD, 2025DKK 375,000DKK 375,00200Negotiating and legal management of industrial megaprojectsManagement of corporate legal internal educationInternal governance of multinational company groupsJean IversenBorn 1968, Danish nationalElected by the employees as an alternate board member in 2022 Assumed the role of full board member in 2024Not considered independent due to employment with NKTSite Manager / Project ManagerNKT (Denmark) A/SGraduate Diploma in LeadershipDKK 375,00DKK 375,000Cable installation site management and project leadershipCollective bargaining and labor relationsComposition and diversity in the Board of DirectorsReference Indicator Unit 2025 2024GOV-1 Gender ratio (BoD incl. employee-elected members) % 33% 44%GOV-1 Executive members (BoD incl. employee-elected members) Number 0 0GOV-1 Non-executive members (BoD incl. employee-elected members) Number 9 9Independent board members (BoD incl. employee-elected GOV-1members) Number 5 5107f BoD Members Number 9 9107f BoD members, excl. employee-elected members Number 6 6107f Underrepresented gender for above % 50% 50%107f BoD Members, employee-elected members Number 3 3107f Underrepresented gender for above % 0% 33%Information pursuant to section 107f of the Danish Financial Statements ActPursuant to the Danish Financial Statements Act section 107f, the following relates to NKT A/S.NKT maintains a quantitative objective of at least 40% female representation among AGM-elected Board members and currently exceeds this objective, with 50% female representation achieved in 2023 and maintained in 2025.Among employee-elected members in BoD the underrepresented gen-der is 0%, which is well below the quantitative objective of 33%. These members are selected through a direct election process, where all employees meeting certain crite-ria are eligible to participate. The process is overseen by an Election Committee, which in 2025 has con-sidered actions to address gender balance in the election process.NKT A/S has one employee, who is also part of Executive Management, resulting in an equal gender balance by definition.1Group Leadership TeamThe Group Leadership Team (GLT) consists of NKTâs Executive Man-agement and selected members of the business lines and group func-tions. Each member brings crucial competencies and experience rele-vant for the cable industry. Together, they represent a wide executive level of real-life knowledge neces-sary to drive NKT forward in deliver-ing lifetime value to NKTâs custom-ers, partners, and employees.NKTâs GLT is responsible for deliv-ering on NKTâs strategy and holds a leading role in defining the tactical and operational directions required to ensure effective execution across all business lines. GLTâs role and responsibilities for sustainabilityThe GLT collectively brings exper-tise on NKTâs material sustainability impact, risks, and opportunities (IROs) and is involved in the Double Materiality Assessment process. The GLT meets regularly and is responsible for driving NKTâs actions to manage IROs and for implementing the sustainability strategy across the organisation. Key responsibilities for sustainability include:îâ Translating strategy into measur-able goals and integrating them into daily operations.îâ Integrating sustainability practices in daily operations and identifying the need for corrective actions.îâ Managing sustainability risks and ensuring regulatory compliance, including CSRD.îâ Monitoring performance and delivering transparent sustaina-bility reporting aligned with global standards.îâ Fostering a proactive sustaina-bility culture through employee engagement and training.îâ Communicating initiatives to stakeholders and building part-nerships to amplify impact.Composition of the Group Leadership TeamReference Indicator Unit 2025 2024GOV-1 Male members in GLT % 85% 85%GOV-1 Female members in GLT % 15% 15%GOV-1 Executive members in GLT Number 2 2GOV-1 Non-executive members in GLT Number 11 11Executive ManagementClaes WesterlindPresident & Chief Executive Officer Born 1982, Swedish nationalJoined NKT in 2017Education: MSc Mechanical Engineering, Chalmers University of Technology, including studies at Hong Kong University of Science and Technology.NKT positions: Chief Executive Officer and Member of Executive Management 2023Various senior positions within NKT since 2017Directorships: Rockwool A/S, member of the Board and Audit CommitteeNKT shares at 31 December 2025: DKK 8,682Line Andrea FandrupChief Financial OfficerBorn 1979, Danish nationalJoined NKT in 2020Education: MSc Business Administration and Math, Copenhagen Business School, including studies at University of Strathclyde Glasgow and INSEAD.NKT positions: Chief Financial Officer and Member of Executive Management 2020Directorships: Dovista A/S, member of the Board and Audit CommitteeNKT shares at 31 December 2025: DKK 8,837Will HendrikxChief Operating Officer / Deputy CEOInterim Head of Grid SolutionsBorn 1964Joined NKT in 2020Education: BSc in Engineering and Management (HTS, Netherlands)Darren FennellExecutive Vice President, Head of TransmissionBorn 1975Joined NKT in 2012Education: Bachelor's degree in Construction Economics & ManagementMichael C. HjorthChief Commercial OfficerBorn 1966Joined NKT in 1995-2012 and rejoined in 2017Education: BSc EE + Maersk Young Managerâs programmeCarlos FernandezExecutive Vice President, Head of DistributionBorn 1971Joined NKT in 2021Education: Bachelor of Mechanical Engineering (B.E.) (Universitat Politècnica de Catalunya), Postgraduate in Business Administration (IESE Business School)Anders JensenChief Technology OfficerBorn 1964Joined NKT in 1993-2013 and rejoined in 2018Education: MSc in Electrical Engineering (Technical University of Denmark), BSc in Strategic Management and Business Development (Copenhagen Business School, Copenhagen)Morten BangChief Legal OfficerBorn 1984Joined NKT in 2016Education: Master of Law, University of CopenhagenMichael YongChief Strategy OfficerBor n 1974Joined NKT in 2021Education: Juris Doctor (George Washington Law School, USA), International MBA (IE Business School, Spain), BSc Mechanical Engineering (University of Tennessee, USA)Kira JohnsonChief Human Resources OfficerBor n 1974Joined NKT in 2021Education: MSc Political Science & Government, University of CopenhagenDenis SchulerExecutive Vice President, Head of AccessoriesBorn 1973Joined NKT in 2023Education: Executive Master of Business Administration, Zurich University of Applied SciencesSustainability statementGeneral informationNKTâs progress on sustainabilityNKT is a critical player in the clean energy transition as electrification and grid modernisation are essential to achieving a net zero society.In January 2026, NKTâs sustainability efforts were recognised when the company was ranked 13th on Corporate Knights' 2026 Global 100 Most Sustainable Corporations list. The ranking underscores among others the important role NKT plays in the green transition through its product handprint.Through its solutions and offerings, NKT generates negative environmental and social impacts, primarily from the materials used in its cable systems and from production, installation, and service activities. Thisconstitutes NKTâs footprint. To minimise some ofthese impacts, the company has defined six primary sustainability targets, representing its desired trajectory in areas such as climate change mitigation, production waste recycling, gender diversity, and employee health 1and safety.During 2025, there has been progress on a number of the targets, but NKT remains challenged on fulfilling its decarbonisation targets as the company continues to grow. All targets are presented in detail in the respective sections.1 SBM-1, paragraph 40e-f.Sustainability - a strategic prioritySBM-1, SBM-3Strategy NKTâs new strategy, Charging Forward, outlines NKTâs strategic focus areas until 2030 and beyond. Sustainability remains at the core of the strategy, with a clear ambition of maintaining NKTâs position as a recognised leader of sustainable cable solutions. This commitment is not only vital to strengthening NKTâs business but also to serving its cus-tomers, many of whom have their own high standards for sustainability performance. By holding itself to high sustainability standards, NKT also safeguards its greatest asset - its people - through a continuous focus on safety, inclusivity, and well-being. NKT's sustainability strategy is built around the strategic pillars: Environ-ment, Social and Governance, each with defined focus areas that guide NKTâs actions and commitments. The strategy is informed by the Double Materiality Assessment and its time horizons. Designed around the DMA, the strategy is assessed to be resilient in its capacity to address material impacts and risks and to realise material opportunities. The strategy is implemented through measurable targets, perfor-mance monitoring, and transparent disclosure practices, enabling effec-tive implementation and continuous improvement.Well-established areas such as Greenhouse Gases (GHG), Health & Safety, and Diversity & Inclusion have structured processes and performance monitoring in place. In contrast, emerging priorities like Nature and Material Health require further development and investment to reach a similar level of maturity.NKTâs sustainability strategy covers the companyâs whole value chain. NKT recognises that many of the negative impacts go beyond the companyâs own operations, making partnerships and collaborations with suppliers and business partners fundamental to a successful green transformation. NKT strategy NKT business modelValue chainThe simplified overview of NKTâs value chain starts upstream with the extrac-tion, processing, and fabrication of raw materials. NKT uses the raw materials to manufacture cables and cables systems. After manufacturing, the cables are installed on- and offshore either by NKT or its customers. Downstream, NKTâs cable systems facilitate the transmission of energy by connecting clean energy sources to the power grid. They enable the energy transition and elec-trification of societies by supplying power cable systems for the distribution and transmission of energy. By delivering reliable and durable cable systems that support stable and resil-ient power grids, NKT plays a vital role in advancing the clean energy transi-tion - helping society shift toward clean energy sources while contributing to secure an uninterrupted access to electricity.Upstream Own operations DownstreamExtraction of Refining of Fabrication of raw Cable Cable laying and installationPower generationTransmission End userraw materialsraw materialsmaterials for end usemanufacturingSea and landFacilitating the and distributionDistributing energy Metal ores and oil transmission Enabling the to buildings and for plasticsof clean energy transmission of for charging (wind, solar, hydro, energy, including clean infrastructureand nuclear)energy (wind, solar, hydro, and nuclear)Recycling of materials that can be used to replace virgin materials in fabrication. This can be in NKTâs value chain as well as other industriesNKT has a service agreement with customers to repair faulty or broken partsDouble Materiality AssessmentIRO-1, GOV-2 In 2025, NKT updated its Double Materiality Assessment (DMA), identifying new material sustainability matters that closely align with and reinforce NKTâs strategic direction within sustainability.NKT's updated DMA reflects continuous developments within sustainability, evolving stakeholder expectations, and emerging industry practices. The update reaffirms the overall material sustainability matters identified in the 2024 DMA. For some of these matters, the focus has been adjusted to enable a more targeted approach to manag-ing sustainability impacts, risks, and opportunities (IROs) across the value chain.The scope of the DMA is defined by segmenting upstream suppliers by economic relevance and potential impact to identify high risk materials (copper, aluminium, steel, lead, XLPE, PVC) and to map key supply chains. Downstream, the DMA targets key markets and customer segments. The scope of the downstream IROs, are closely linked to NKTâs role in the energy value chain: NKT designs, builds, and installs power and distribution cable systems. Each IRO is scored 0â25, applying severity (scale, scope, irremediability where appli-cable) and likelihood for potential impacts; and financial magnitude and likelihood for financial risks and opportunities. Materiality is set at â¥50% (12.5/25) for both impact and financial materiality and IROs meeting or exceeding this threshold are material.To read more: NKTâs DMA methodologyNKTâs approach across the value chainSome material sustainability matters are primarily linked to NKTâs opera-tions and its products, while others relate to the materials and compo-nents the company procures.For matters connected to NKTâs operations and products, such as climate change, circular design, material health, diversity, and safety the company focuses on internal processes, employee engagement, and operational improvements to reduce impacts and strengthen per-formance. Conversely, topics tied to the supply chain such as circularity, climate impact of raw materials, and respon-sible business conduct require collaboration with suppliers and partners. Here, NKT drives progress through procurement practices, supplier engagement programmes, and industry partnerships.The following overview of material IROs reflects this differentiated man-agement approach. It also presents the structure of the remaining sus-tainability statement.2025 DMA: Scope and resultsIRO-1, SBM-3The 2025 update reassessed selected sustainability topics. The topics were selected based on the evolving industry practices after the first wave of CSRD-compliant reports, and new internal and exter-nal stakeholder expectations. The reassessment followed the overall DMA methodology, specif-ically step 2, 3, 5, and 6, see page 179 and included input and calibra-tion of the scoring with NKT subject matter experts. The 2025 DMA was endorsed by the ESG Committee and the BoD. Key resultsIn 2025, the material IROs correlate with the 2024 results on an overall level, but with adjustments to the focus of selected IROs. From 2025, the material IROs for NKTâs own operations therefore also include: îâ Environment: Waste and sub-stances of very high concern (SVHC).îâ Social: Diversity, equality, and non-harassment.îâ Governance: Corruption and briber y.As in 2024, ESRS S4, Consumers and End-users is non-material to NKT.ScopeNKT did not conduct a separate screening of assets and activities or apply special criteria when assessing IROs relating to pollution, resource use and circular economy, water and marine resources, and business conduct. The company did not carry out direct consulta-tions with affected communities. For climate change, the severity of impact was determined using GHG emissions across scopes; NKTâs own energy consumption; available value chain energy data (e.g., LCAs, sector decarbonisation approaches for key commodities); and other desktop research sources (e.g., MSCI, SASB, supplier/peer/cus-tomer corporate reports, research publications). For climate-related risks, NKT performed a climate risk assessment covering physical and transition risks and opportunities. To read more: NKT and climate riskStakeholder engagementSBM-2, IRO-1Stakeholder engagement forms an integral part of NKTâs DMA and its management of IROs. To ensure relevance, accuracy, and robust-ness, the DMA process includes structured dialogues and consulta-tions with suppliers, customers, and other organisations.These engagements serve to vali-date and refine the understanding of IROs across the value chain and to prioritise material topics. The Board of Directors is annually informed about stakeholder engagement in the DMA process.In addition to the stakeholder engagement during the DMA pro-cess, NKT maintains an ongoing dialogue with key external stake-holders. The dialogue ensures that NKT remains transparent and responsive to the concerns and strategic direction of its suppliers, customers, and affected stakehold-ers.Key stakeholders and how we engage with themInvestors At NKT, investor engagement is a long-term partnership built on transparency. Through open communication, NKT shares its strategic vision, gathering valuable insights from investors. The engagement focuses on financial performance, sustainability progress, and risk management. NKT actively maintains selected ESG ratings aligned with the expectations from its investors. NKT prioritises the ratings from Ecovadis, CDP, Corpo-rate Knights, MSCI and Sustainalytics.CustomersAs a reliable partner for utilities, developers, and industries worldwide, NKT enables customers to reach their sustainability commitments by actively partnering with them. NKT is committed to building long-term relationships based on trust and transparency, fostering sustainability by among others reducing COe emissions, increasing circularity, 2and achieving positive biodiversity impact.Current employees People are central to NKTâs strategy and success. NKT fosters open feedback from its employees through regular employee surveys, leadership roundtables, and town halls. NKT engages with its current employees to understand their experiences, challenges, and perspectives on improvement areas. The engagement also fosters increased awareness of internal policies and procedures, such as within health and safety.Future employeesNKT partners with universities, local schools, and municipalities to engage with stu-dents and attract future talent through initiatives such as masterâs theses, development projects, and career fairs. In addition, the company runs the NKT Graduate Programme, which annually attracts hundreds of applicants.Membership in organisations NKT is an active participant in various industry organisations to stay at the forefront of industry developments and collaborate on key initiatives. NKT advocates for regulatory frameworks that accelerate electrification across all sectors and the promotion of mas-sive investments in electricity infrastructure and clean energy. These frameworks must be stable, Paris-aligned, and designed to unlock long-term investment in clean energy and grids. In this way, NKT is reinforcing its commitment to enabling Paris-aligned policy environments and accelerating the transition to a net zero economy.SuppliersNKT maintains strong relationships with its suppliers, engaging with them to ensure mutual, sustainable growth and adherence to sustainability standards. NKT focuses on strategic collaboration with suppliers of critical materials and components to support reliable and efficient energy infrastructure. This includes joint efforts to increase supply chain transparency, decarbonise production processes, integrate recycled content, and ensure ethical business conduct.Policies adopted to manage material sustainability mattersE1-1, E2-1, E3-1, E5-1, S1-1, G1-1NKTâs global sustainability policies outline the commitments, princi-ples, and strategic direction within NKTâs sustainability management and is governed by the corporate governance framework. Combined, the policies establish a structured framework that guides environmen-tal, social, and governance prac-tices across the organisation. Each policy reflects interests from appro-priate stakeholders and is available to all stakeholders. Accountability and monitoringThe NKT Executive Management is accountable for the implemen-tation of all policies. Monitoring the implementation of the policies is an integrated part of NKT's governance framework. All NKT policies are updated on a regular basis, typically every 1-3 years depending on the specific policy. Policy Content Coverage Related IROIMS NKTâs Integrated Management System (IMS) sets the framework for aligning health and safety, environmental responsibility, quality, and com-Own operations NKT's people: H&Spliance across global operations. The IMS establishes principles for creating safe and inclusive workplaces, reducing environmental impact, and value chainMaterial healthand safeguarding human rights while ensuring high-quality solutions. It integrates material ESG topics into governance and decision-making processes, making sustainability an embedded part of NKTâs operational approach.îClimate Change NKTâs Climate Change Policy establishes the basis for addressing climate change across the companyâs operations and value chain. It outlines Own operations Climate change mitigationNKT's commitment to renewable energy deployment and the company's science-based targets validated by the Science Based Targets initia-and value chainClimate change adaptationtive (SBTi), with a long-term goal of net zero emissions by 2050.EnergyThe policy integrates climate considerations into strategic planning and decision-making, and promotes collaboration with suppliers, custom-ers, and partners to reduce emissions and develop solutions that support the green transition. The policy is available externally.Circular Economyî NKTâs Circular Economy Policy sets the direction for the companyâs circularity efforts towards resource optimisation and product circularity.Own operations Resource inflowand value chainResource outflowAn increase in recycled content, lower resource intensity, and reuse and recyclability by design underpin the approach put forward in the Resource optimisationpolicy. Circularity is integrated into product development, procurement, and operational processes, contributing to a more resilient and re-source-efficient energy system.Procurement NKTâs Procurement Sustainability Policy defines the companyâs approach to sourcing goods and services in a way that supports environ-Value chain IROs in the supply chain:Sustainabilityî mental, social, and ethical performance across the value chain. It sets clear expectations for suppliers and service providers to comply with Pollutionenvironmental and labour legislation, reduce negative impacts, and uphold ethical labour practices.Water useBiodiversity lossAffected communitiesH&SCorruption and briberyHuman Rights NKTâs Human Rights Policy defines the companyâs commitment to respecting and promoting human rights. The policy sets expectations for Own operations NKT's peoplefair treatment, safe working conditions, and the prevention of child labour, forced labour, and discrimination. NKT aligns with internationally and value chainAffected communities: recognised standards, including the International Bill of Human Rights, the ILOâs Declaration on Fundamental Principles and Rights at Work, community rights and indig-and the UN Guiding Principles on Business and Human Rights. The policy also supports broader sustainability efforts by recognising the role enous peopleof human rights in enabling a just transition and resilient communities.H&S in the supply chainDiversity and NKTâs Diversity and Inclusion Policy highlights the companyâs commitment to fostering a diverse workforce and an inclusive culture across all Own operations NKT's people: Diversity, Inclusionoperations. The policy recognises diversity and inclusion as drivers of innovation, resilience, and long-term business performance, and sup-fairness and a harass-ports NKTâs purpose of connecting a greener world.ment-free workplaceThe policy applies across all stages of the employee journey, from recruitment to development and progression. It sets expectations for fair and unbiased treatment, equitable access to opportunities, and equal pay for equal work. It also includes a zero-tolerance stance on discrimi-nation and harassment, with mechanisms in place to address violations swiftly and appropriately.Anti-Bribery and NKTâs Anti-Bribery and Anti-Corruption Policy includes NKTâs commitment to conducting business with integrity, transparency, and compli-Own operations Corruption and briberyAnti-Corruptionance with international standards such as the UK Bribery Act and the U.S. Foreign Corrupt Practices Act (FCPA). It applies to all employees and value chainand prohibits all forms of bribery, corruption, and facilitation payments. The policy sets clear rules for gifts, entertainment, hospitality, spon-sorships, donations, and interactions with public officials, ensuring these are modest, transparent, and serve legitimate business purposes. Reporting mechanisms, including the confidential NKT whistleblower hotline, are available to report concerns.Non-Harassment NKTâs Non-Harassment and Non-Discrimination Policy aims to foster a workplace where everyone feels safe, respected, and valued. The scope Own operations NKT's people: Diversity, and Non-of the policy applies across all operations, events, and interactions with employees, contractors, and partners.fairness and a harass-Discriminationment-free workplacePreventive measures include regular training and awareness initiatives to reinforce respectful conduct and promote psychological safety.Sustainability governance and managementGOV-4, GOV-5, IRO-1Sustainability is integrated in NKTâs overall governance framework. More details can be found here: Corporate Governance Framework Business lines and group func-tions are responsible for driving sustainability within their markets, operations, and functional areas, implementing actions to achieve company targets and ambitions. The Vice President of Group Sus-tainability, reporting to the Chief Commercial Officer, is responsible for:îâ Developing the sustainability strategy in close collabora-tion with the GLT and which is endorsed by the BoD.îâ Supporting group functions and business lines in the implementa-tion of the strategy.îâ Monitoring the progress of the strategy implementation and reporting on this to GLT and ESG Committee regularly.Risk management and internal controls over sustainability reportingGOV-5NKT has implemented mitigating processes and internal controls to manage risks associated with its sustainability reporting. Risks are identified and assessed through regular reviews of reporting pro-cesses, supplier data, and regula-tory developments. The approach prioritises areas with potential for material misstatement or incomplete disclosures. NKTâs internal accounting guide-lines are based on ESRS require-ments, and includes comprehensive reviews to uphold a satisfactory data quality, either on a monthly or quarterly basis depending on the topic. NKT is continuously improving the companyâs internal control and risk management systems for sustain-ability reporting in order to reach a maturity level equal to the com-panyâs financial reporting and to ensure that the companyâs sustaina-bility reporting represents a true and fair view of NKT's performance, free from material misstatements, and in compliance with current legislation.Due diligenceGOV-4Due diligence is a cornerstone of NKTâs approach to managing sustainability risks and oppor-tunities. It enables the company to identify, prevent, and mitigate potential adverse impacts across its operations and value chain, ensuring informed and responsible decision-making. Through robust due diligence processes, NKT strengthens stakeholder trust and demonstrates its commitment to ethical and sustainable business practices. Details of NKTâs due diligence framework and implemen-tation are provided throughout this report and a dedicated section on NKTâs approach to due diligence in procurement is included under Gov-ernance, see page 109.Pages in the sustainability Core elements of due diligencestatementa) Embedding due diligence in governance, strategy, 12-14and business model111-112b) Engaging with affected stakeholders in all key steps 65, 183of the due diligence111-112c) Identifying and assessing adverse impacts 63-6471, 86, 93, 96, 105, 108d) Taking actions to address those adverse impacts 72-78, 87-89, 94, 97-99, 103, 106e) Tracking the effectiveness of these efforts and communicating 94, 102, 106 109-112Sustainability is integrated in NKTâs operations with a clear governance structure that ensures continuous progress towards achieving the companyâs sustainability ambitions.Basis for preparationBP-1, BP-2 Scope and consolidationNKTâs sustainability statement has been prepared as a consolidated statement for NKT A/S and its sub-sidiaries (NKT Group) and is fully aligned with the scope of the finan-cial statements. The sustainability statement cov-ers upstream and downstream activities, as well as NKTâs own operations. The respective sections explicitly state when assets under operational control are included in the disclosures. Accounting policies are included in the sections to which they relate in order to facilitate understanding of the content and the accounting treatment applied.The environmental, social and gov-ernance (ESG) metrics presented in this statement have been validated by the assurance provider, PwC.Confidentiality NKT uses the option to omit the following information: The overall total weight of products and technical and biological materials used during the reporting period; the absolute weight of secondary reused or recycled components, secondary intermediary products and secondary materials used to manufacture products and services (including packaging), total amount of substances of very high concern that are generated or used during production or that are procured by main hazard classes of substances of concern and total amount of substances of very high concern that leave facilities as emissions, as products, or as part of products or services by main hazard classes of substances of concern. The information is considered confidential due to competitive reasons.Significant estimates and judgementsNKT strives to ensure precise and reliable disclosures by applying pri-mary measurement data.NKT uses estimates and judge-ments for parts of the ESG perfor-mance data presented in the sus-tainability statement. Recognising the impact on the quality of the per-formance data, NKT has made sig-nificant efforts to ensure accuracy in the disclosed performance data and has initiated processes to minimise the risk of reporting errors. Selected data points are partially based on estimates due to dependency on information from NKTâs suppliers. If a data point is based on significant estimates or judgements, this will be stated explicitly in the related accounting policies. In 2025, sustainability impacts, risks or opportunities do not constitute significant impacts on NKT's finan-cial position, financial performance, and cash flows. Recurring costs are included in the current financial statements and budget for next year. Key adjustments During 2025, NKT introduced the following changes to the presenta-tion of sustainability information compared with the 2024 sustaina-bility statement:OmnibusThe Quick Fix Delegated Act has prolonged the reporting provisions that NKT applied in 2024. This means NKT will continue to report using the reduced scope originally introduced by the ESRS and there will be no changes to the reporting scope for phase-in requirements. NKT will make use of the option to include summarised information only (ESRS E2 paragraph 17) for the material topics E4, S2, and S3. These topics are all material in NKTâs upstream value chain.The EU Taxonomy framework has been revised, introducing new cri-teria for classifying and reporting sustainable economic activities, simplified templates, and a mate-riality threshold. Consequently, NKT has updated its EU Taxonomy disclosures to match the revised framework and ensure they comply with the latest EU requirements. New material impactsNKT identified new impacts and opportunities, which introduced new ESRS-related data points. NKT will provide comparative figures for performance metrics introduced in 2025, except for disclosures related to S1-16. The processes for S1-16 were only established during 2025, making it impracticable to obtain reliable comparative data.Disclosure requirement Significant estimates and judgement Estimates/judgementsE1-5, E1-6 Assets under operational control JudgementE1-6 Emission reduction progress and Scope 3 Category 11 Judgement and estimateE1, entity specific NKT handprint EstimateE2-5, E5-4 Sensitive information JudgementE5-4, E5-5 Data source and conversion of unit of measure Judgement and estimateE5-5 Categorisation JudgementThe 2025 sustainability statement marks NKTâs second year of preparing a sustainability statement in compliance with the EU Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS).Restatement of Scope 3E1-6NKT improved its Scope 3 calcula-tion methods and restated historic data. Key changes include:îâ Supplier-specific data in Category 1: Where available, NKT uses supplier-specific Product Car-bon Footprints (PCFs) instead of generic emission factors. Supplier data provides more accurate and representative emissions, reflects actual production technologies and energy use, and captures reductions achieved by suppliers. This improves the quality and rele-vance of NKTâs Scope 3 inventory.îâ Spend-based method in Cate-gory 1, 2, 4, 6 and 9: Inflation is applied to emission factors, not spend. This keeps emissions esti-mates aligned with current pur-chasing power without changing NKTâs financial records.îâ Data quality improvements in Cat-egory 5: NKT has enhanced the quality of its waste data, strength-ening the accuracy and reliability of the reported figures.îâ Use phase emissions, Category 11: NKT refined its methodology for calculating use-phase emis-sions by applying industry-aligned assumptions about how cables operate in real-life conditions. The update includes using more gran-ular current load factors across different cable applications and distinguishes more clearly between medium- and low-volt-age transmission, distribution, and building wire segments. This results in higher reported use-phase emissions but reflects improved accuracy and con-sistency rather than changes in underlying performance.îâ End-of-life treatment of sold prod-ucts in Category 12: NKT corrected the emission factor applied to the base year, updating the source from ecoinvent 3.6 to ecoinvent 3.10. This adjustment aligns the base-year calculation with the database version used in the cur-rent reporting year and was made to ensure consistency and compa-rability of emissions over time.The total adjustment of Scope 3 emissions is 16,728,446 tCOe in the 2base year 2019 from 3,411,629 tCOe 2to 20,140,075 tCOe, and 16,344,073 2tCOe in 2024 from 4,477,543 tCOe 22to 20,821,616 tCOe.2The most significant restatements relate to Category 1 and 11, which accounted for 99% of emissions in the base year. The restatements are:îâ Category 1, which has been adjusted from 1,447,999 tCOe 2to 848,070 tCOe in the base 2year, representing an adjust-ment of minus 848,068 tCOe, 2and from 2,252,754 tCOe to 21,689,858 tCOe in 2024, repre-2senting an adjustment of minus 562,896 tCOe.2îâ Category 11, which has been adjusted from 1,749,466 tCOe 2to 19,073,848 tCOe in the base 2year 2019, representing an adjustment of 17,324,382 tCOe, 2and from 1,718,496 tCOe to 218,420,887 tCOe in 2024, 2representing an adjustment of 16,702,391 tCOe.2Restatement of resource inflowE5-4 NKT changed to supplier-specific data from suppliers, who do not follow the the quantity credit mass balance accounting methodology, which resulted in a restatement of the 2024 performance. This change enables NKT to provide more precise and reliable disclosures of its circularity disclosures, thereby enhancing the accuracy and trans-parency of reported sustainability performance. Furthermore, NKT now discloses the rate of reused and recycled components separately for products and packaging. The changes have led to a restatement from 8% in 2024 to 14% for products and 5% for packaging.Restatement of resource outflow E5-5 NKT expanded its resource outflow disclosures to include main packag-ing categories such as drums. NKT now discloses the rate of recyclable content separately for products and packaging, which has led to a restatement from 42% for both prod-ucts and packaging in 2024 to 42% for products and 11% for packaging.Restatement of HSE MetricsS1-14 NKT has improved its data quality, which has led to a restatement of the number of lost days in 2024. This led to an adjustment of 152 days, from 827 lost days to 979 lost days in 2024.Expanded scope for incidents, complaints and severe human rights impactsS1-17 NKT expanded the scope of its complaint reporting, including cases of incidents of discrimination and harassment, to encompass cases reported to local HR departments, enabling a more comprehensive disclosure. The 2024 disclosure does not reflect the new scope as it is impracticable to recreate this data retrospectively. Any changes between the 2024 and 2025 dis-closures may reflect the broadened reporting scope rather than an actual trend.Incorporation by referenceThe table shows an overview of where information can be found relating to ESRS disclosures that have been incorporated by refer-ence and thereby outside of the sustainability statement, as part of the management's review or the Remuneration report.Disclosure requirement Where to find (page)Strategy, business model and value chain (ESRS 2 SBM-1, paragraph 38, 40a, 42a, b) NKT business model (p. 11)Strategy, business model and value chain (ESRS 2 SBM-1, paragraph 38, 40g) Our strategy through to 2030 (p. 12-15)Strategy, business model and value chain (ESRS 2 SBM-1, paragraph 38, 40a) Business lines (p. 33, 37, 40)The role of the administrative, management, and supervisory body (ESRS 2 Corporate Governance, Board of Directors, GOV-1, paragraph 20, 21, 22, 23 and G1, paragraph 5 a-b)Group Leadership Team (p. 46-55)Information provided to and sustainability matters addressed by the Corporate governance, Board of Directors, undertaking's AMSB (ESRS 2 GOV-2, paragraph 23, 24, 25, 26a-c)Group Leadership Team (p. 46-55)Integration of sustainability-related performance in incentive schemes (ESRS 2 GOV-3, paragraph 27, 28, 29) Remuneration reportRemuneration metrics (pay gap and total remuneration) (S1-16, paragraph 97b) Remuneration reportEnvironmental informationClimate changeSBM-3Upstream Own operations Downstream Scope 3 Energy consumption Scope 1 and 2 Transitional risk NKT's handprint Physical climate risk Energy consumption NKT's handprintClimate change mitigationClimate change adaptation NKT's handprint Facilitating and enabling the energy transition Physical climate riskAdapting to a changing climate Climate change necessitates an energy transition, making power cables essential infrastruc-NKT has identified both acute risks, like extreme weather events, and chronic climate-related NKT's handprintture. NKTâs diverse product range, from low- to high-voltage cables, is well positioned to physical risks that could impact company assets and operations.support this transition, enhancing its market position and stakeholder confidence.Time horizon: all.Actual positive impact. Time horizon: medium - and long-term. Scope 3 Greenhouse gas emissions NKT's operations and value chain contribute to greenhouse gas emissions. Actual emissions Scope 1 and 2Energyarise from fossil fuel use in manufacturing and installation, and from the manufacture of key materials such as conductor metals and insulation. The decarbonisation of these supply Energy consumptionContinued reliance on fossil fuel chains is challenging. Additionally, NKT power cables are part of an energy system that is not NKT's operations and value chain rely on fossil fuels, generating greenhouse gas emissions. yet fully decarbonised leading to power loss emissions.This includes natural gas in production, fossil fuels for cable-laying, and energy-intensive Actual negative impact. Time horizon: all.processes by metal and plastic suppliers.Actual negative impact. Time horizon: all. Transitional risk Declining global decarbonisation efforts If decarbonisation efforts fall short of the net zero emission goals, or the Paris Agreement, it could negatively impact the demand for energy transition technologies. This slowdown, driven by unfavourable policy environments, poses a risk to the growth and adoption of such technologies, including those offered by NKT. To read more about the material sustainability matters, see: DMA results on page 63.Time horizon: medium - and long-term. To read more about climate resilience.Climate changeClimate change is a defining global challenge impacting all sectors. For NKT, it represents both a responsibility and opportunity. As a key enabler of the green energy transition, NKT contributes to decarbonising society while aiming for net zero across its value chain by 2050. NKTâs ambition is clear: maximise our handprint and minimise our footprint.Transition plan for climate change mitigation E1-1The Climate Transition Plan sets out how NKT will reduce greenhouse gas emissions in line with climate science. NKTâs ambition is clear and two-fold. Firstly, by contributing to the decarbonisation of society through the facilitation and ena-blement of clean electricity in grid infrastructure - NKTâs handprint. Secondly, by reaching net zero in the value chain by latest 2050 - NKTâs footprint. Handprint: enabling the energy transitionAddressing climate change requires significant reductions in greenhouse gas emissions. For the energy sec-tor, this means replacing fossil fuels with clean electricity and electrifying transport, heating, and industry. None of this happens without strong grids and high-quality cables. NKT plays a critical role in the green transition as electrification and grid modernisation are prerequisites for a net zero society. NKTâs handprint is the positive climate impact created by delivering the cable systems that allow countries to add clean energy, reinforce networks, and share power across borders. Why this matters nowThe International Energy Agency (IEA) shows in all its scenarios that grids must expand dramatically. In the Net Zero Emissions (NZE) pathway, the world needs to add or refurbish around 80 million kilo-1metres of power lines by 2040, roughly equal to todayâs entire global grid. Annual grid investment must rise from about USD 300bn today to over USD 600bn by 2030 in the Announced Pledges Scenario 1, and USD 750bn in NZE(APS). These numbers underline a simple fact: The energy transition cannot happen without a massive build-out of grid infrastructure - and cables are a critical enabler of that transi-tion.NKTâs handprintNKT brings clean electricity to society through the power and distribution cable systems that it delivers. High-voltage direct current (HVDC) systems, for example, move large amounts of power efficiently over hundreds of kilometres, cutting electrical losses and making off-shore wind viable at scale. Modern cable systems also improve grid resilience and flexibility, reducing 2curtailment and supporting energy security.OpportunityFor NKT, this transformation creates a strong growth outlook. Demand for high-voltage, especially HVDC, cables for offshore wind exports and cross-border interconnectors is among the fastest-growing areas in grid infrastructure. Also, distribution cables are set for strong growth, underpinned by EUR 425bn in EU investment, local electrification, and the urgent need to modernise age-3ing infrastructure.NKTâs role as a climate enabler means the company's handprint is growing - more cables are needed to support the shift to clean energy. At the same time, this growth increases NKT's footprint, as pro-ducing more cables leads to higher emissions in the medium term. As the grid is continuously strength-ened so it can absorb more clean energy, these emissions will go down. This link between handprint and footprint is central to the com-pany's climate transition plan. NKT is scaling up to meet demand for a grid based on clean energy while working to reduce the emissions linked to that growth.FootprintNKT is committed to the goals of the Paris Agreement and to helping keep global warming to 1.5°C. The companyâs climate targets were set against a 2019 base year, validated by the Science Based Targets initia-tive in 2022 and again in 2024, and align with a 1.5°C pathway towards net-zero across the value chain by 2050.NKTâs carbon footprint is the green-house gas emissions linked to all activities related to the companyâs own operations and the value chain:îâ NKTâs own operations (Scope 1 and 2), such as fuel for vessels and energy used at sites.îâ NKTâs value chain (Scope 3), including materials like copper, aluminium, and plastics, and how the companyâs products perform in their lifetime.NKTâs decarbonisation actions focus on these hotspots:îâ Operations (Scope 1 and 2): Phase out natural gas, source 100% renewable electricity, and improve energy efficiency. Marine fuels are a major lever - NKT Vic-toria is able to run with HVO and NKTâs new vessel NKT Eleonora will be able to run on e-methanol and bio-methanol.îâ Materials (Scope 3): Work with suppliers to source low-carbon metals and polymers, increase recycled content, and integrate circular design principles.îâ Use phase (Scope 3): Offer low loss cable designs and larger conductor sizes to reduce lifetime emissions, while supporting rapid grid decarbonisation.Financial planning and resourcesEffective financial planning is essen-tial for delivering NKTâs climate tran-sition. It ensures that NKTâs invest-ments, funding, and innovation support the shift to a low-carbon economy while creating long-term value for stakeholders.Capital allocationNKTâs investments are strongly aligned with climate objectives and over 69% of capital expenditure (CAPEX) included under the compa-ny's taxonomy reporting is aligned with the EU Taxonomy for sustain-able activities. This demonstrates that NKTâs products and operations contribute directly to climate change mitigation. Operating expenditure (OPEX) also reflects this focus, with 44% of the included OPEX under the company's taxonomy reporting being taxonomy aligned. Going for-ward, NKT aims to maintain the cur-rent levels of taxonomy alignment.Funding and financingNKT integrates sustainability into the companyâs financing strategy. NKT has for example issued a Green Hybrid Bond under NKTâs Green Finance Framework. In 2025, NKT refinanced the companyâs EUR 400m Revolving Credit Facility as a Sustainability Linked Loan (SLL). The cost of this facility is tied to per-formance on key sustainability KPIs, including climate. Long-term commitmentDecarbonisation requires long-term investment. NKTâs ongoing CAPEX investment programme to expand capacities across the company (more than EUR 2bn) is a strong long -term commitment to the ongoing energy transition and grid reinforce-ment process. NKT also invests directly in decarbonisation levers like phasing out natural gas at the com-panyâs sites and upgrading technol-ogy to reduce emissions. Another example is NKTâs decision to invest in a new cable-laying vessel, NKT Eleonora, which will be ready in 2027 and capable of using e-meth-anol or biomethanol - a low-carbon marine fuel. NKT will also secure renewable electricity for a large part of its future electricity consumption through long-term Power Purchase Agreements (PPAs) with develop-ers across Europe, ensuring that a large part of NKTâs electricity will be generated from newly established photovoltaic projects.The Climate Transition Plan is endorsed by the Board of Directors.Find more details about NKTâs cli-mate transition plan in other parts of this report. The main elements are: Governance and accountability Climate policy Targets and progress Decarbonisation actions Key numbers and figures EU Taxonomy alignment Climate risks NKTâs handprintNKTâs handprint is the positive climate impact created by delivering the cable systems that allow countries to add clean energy, reinforce networks, and share power across borders. Since 2019, NKT has completed projects that are pro-jected to contribute 27 TWh of clean energy in 2030.NKT's handprintProjected clean energy facilitated or enabled by NKT in 203027TWh2019-20252019-20241527Targets E1-4GHG1Reduction in absolute Scope 1 and 2 COe emissions2ktCOe2-67%-67% -90%+4%7524258 82019 20242025 2030 2050 baselinenear-term SBTi net SBTi targetzero target1Reduction in absolute Scope 3 (Cat. 1 and 11) COe emissions2ktCOe22+18%+18%+17%-27. 5%-90.0%19,922 23,43820,111 14,4431,9922019 20252024 2030 2050 baselinenear-term SBTi net SBTi targetzero target1 Compared to baseline year 2019.2 Increase of 18% in Scope 3 emissions compared to baseline.Overall net zero targetîâ NKT commits to reach net zero greenhouse gas (GHG) emissions across the value chain by 2050.Near-term targets to 2030îâ Reduce absolute Scope 1 and 2 GHG emissions by 90% by 2030 from a 2019 base year.îâ Increase active annual sourcing of renewable electricity from 18% in 2019 to 100% by 2024 and continue active annual sourcing of 100% renewable electricity through 2030.îâ Reduce absolute Scope 3 GHG emissions by 27.5% from pur-chased goods and services and use of sold products by 2030 from a 2019 base year.Long-term targets to 2050îâ Maintain a minimum of 90% absolute reduction in Scope 1 and 2 GHG emissions from 2030 through 2050 from a 2019 base year.îâ Reduce absolute Scope 3 GHG emissions from purchased goods and services and use of sold products 90% by 2050 from a 2019 base year.NKTâs climate targets were vali-dated by the Science Based Targets initiative (SBTi) in 2022 and again in 2024 and are aligned with the 1.5°C pathway. NKT used the Absolute Contraction Approach (ACA), which requires companies to reduce total greenhouse gas emissions by a fixed percentage over time in line with global decarbonisation pathways. Because NKTâs sector does not have a dedicated Sectoral Decarbonisation Approach (SDA), no SDA was applied.The Scope 2 target is set for mar-ket-based GHG emissions. The Scope 3 target covers Category 1 (upstream value chain emissions) and Category 11 (use phase emis-sions), which accounted for 99% of Scope 3 emissions in the base year.Key actionsE1-3, E1-4NKTâs climate actions target the areas with the greatest impact on emissions across its operations and value chain. These actions are grouped into two areas:1. Scope 1 and 2 - reducing emis-sions from own operations.2. Scope 3 - reducing emissions from purchased materials and product use.Scope 1 and Scope 2: operational emissionsThree decarbonisation programmes support the delivery of the Scope 1 and 2 reduction target, with approx-imately EUR 18m allocated across the programmes. Each programme focuses on a main decarbonisation lever to reduce NKT's carbon foot-print:îâ Marine fuels - enabling low car-bon fuel for cable-laying vessels.îâ Natural gas - phasing out natural gas.îâ Electricity - sourcing renewable electricity.Marine fuels are a major source of direct emissions. The cable-laying vessel NKT Victoria is certified to run on Hydrotreated Vegetable Oil (HVO), enabling a reduction of lifecycle emissions by up to 88%. A new ves-sel, NKT Eleonora, will enter service in 2027 and is designed to operate on among others e-methanol, which can cut emissions by up to 97%.Natural gas is targeted to be phased out at production sites by 2030 through equipment upgrades and electrification of processes. NKT faces some challenges in this transition. The biggest is at the Portuguese site, which the com-pany acquired in 2024. This site uses large amounts of natural gas in aluminium furnaces, where the emissions are currently considered locked in. Right now, there are no widely economically viable alterna-tives available, such as electric or hydrogen-powered furnaces. NKT's current focus is to improve the 1energy efficiency of these furnaces. For any natural gas not phased out by 2030, the company will explore the use of biogas, a renewable alternative.Electricity accounts for most Scope 2 emissions. NKT has com-mitted to using 100% renewable electricity across the companyâs operations from 2024 through to 2030. NKT currently sources renew-able electricity through Energy Attribute Certificates (EACs). These certificates confirm that the pur-chased electricity is generated from renewable sources. While EACs are an important step, NKT recognises their limitations. Therefore, NKT is also securing renewable electricity for a large part of its future electric-ity consumption through long-term PPAs.Scope 1 and 2 decarbonisation programmesDecarbonisation lever 1Sustainable marine fuelsFuel switching. Use of alternative fuel sources such as Hydrated Vegetable Oil (HVO), e-methanol, or bio-methanol for cable-laying vessels.Performance outcomeNo performance outcome defined.Timeline2021-2030Metrics â COe emissions from marine fuels.2 â % share of alternative fuel consumption.ProgressNKTâs existing cable-laying vessel, NKT Victoria, has been recertified to be able to use HVO fuel. NKT's second cable-laying vessel, NKT Eleonora, which is under construction, will have a dual fuel system allowing the use of e-methanol and bio-methanol.Dialogue with customers and potential users/suppliers regarding the use of alterna-tive fuels is ongoing.Challenges and barriers â The cost per unit of HVO, e-methanol, or bio-methanol differs significantly in comparison to marine gas oil. â The high cost of switching to sustainable fuels presents an industry-wide challenge. NKT will offer and advocate for the use of sustainable fuels for both its vessels and calls on the wider industry to collaborate and overcome the challenging transition together.Decarbonisation lever 2Phasing out natural gasEnergy efficiency improvements (upgrading equipment, building retrofit) Electrification (electrifying processes).Focus areas: â Phase out natural gas at production sites â Electrification of processes â Energy efficiency measuresPerformance outcome0 MWh energy consumption from natural gas by 2030.Timeline2022-2030Metrics â Natural gas consumption in MWh.ProgressThe natural gas phase-out programme was established in 2022. During 2025, NKT has among others achieved progress at the site in Cologne, Germany and is well on its way to fully phasing out natural gas. Decarbonisation lever 3Sourcing renewable electricity Renewable energy adoption (on-site generation, Power Purchase Agreements (PPA), Energy Attribute Certificates (EACs).Source 100% renewable electricity for all sites using: â On-site renewable energy generation (solar panels) â PPAs â EACsPerformance outcome100% renewable electricity by 2024.100% renewable electricity after 2024.Timeline2021-2030Metrics â % share of renewable electricity from total electricity consumption.ProgressNKT sourced 100% renewable electricity in 2025 based on on-site renewable energy generation and EACs. More details on NKT energy consumption can be found in the section Energy consumption and mix.Challenges and barriers â There is increased scrutiny on the use of EACs. NKT purchases EACs matching country of consumption, and only from wind, solar, and hydro assets. Beyond purchasing EACs, NKT is committed to renewable electricity sourcing and to a future-fit approach by investing in on-site renewable energy generation and PPAs.Scope 3 (Category 1): emissions from materialsThe majority of upstream emissions come from a few energy-intensive materials. To reduce emissions in Category 1, NKT focuses on two main decarbonisation levers:îâ Source lower emission mate-rials Buy from suppliers using clean electricity and efficient processes. Select materials with lower embodied carbon where proven and available.îâ Promote circularity Design for recyclability, increase recycled content, and enable closed-loop systems. Extend product lifespans through repair, refur-bishment, and circular design integration in R&D and supplier programmes.To reduce emissions from high-im-pact materials, NKT works closely with suppliers who have the great-est impact on the companyâs Scope 3 footprint. NKTâs goal is to lower the carbon embedded in the com-panyâs products by identifying and using materials with a smaller foot-print and higher recycled content.By working actively with the supply chain, NKT aims to reduce the car-bon footprint of the products and support customers in fulfilling their own strategies.Scope 3 (Category 11): use phase emissionsPower cables not only cause emis-sions when they are made, trans-ported, or installed. A large share of their emissions come from their use. This means the emissions are linked to how the cable performs during the many years - often more than 40 years - it is in service. Cable manufacturers like NKT can help reduce these emissions by design-ing low-loss cables, offering larger conductor sizes, and supporting customers in balancing cost with lifetime emissions. At the same time, continued advocacy for rapid clean energy deployment is essential, because the carbon intensity of the grid will remain the largest factor shaping use phase emissions.There are two main levers for reduc-ing emissions during the use phase:îâ Reducing power losses.îâ Decarbonising the electricity grid.Reducing power lossesLosses are affected by the cableâs resistance, its design, length, surrounding conditions, and the amount of current it carries. Actions that can reduce losses include:What are powerlosses?When electricity flows through a cable, the cable margin-ally resists the current. This resistance causes part of the energy to turn into heat instead of reaching its destination. These lost units of electricity are called power losses. To supply the same amount of useful electricity, extra power must be generated somewhere else in the grid. If that extra generation comes from fossil fuels like coal or gas, it leads to more greenhouse gas (GHG) emissions.What are use phaseemissions?Use phase emissions are the GHG emissions caused by these power losses over the entire lifetime of a cable. Power cables often stay in service for more than 40 years. In accordance with the Greenhouse Gas Protocol, NKT accounts each year for the cumulative power-loss emissions for the entire lifetime of the products sold and/or projects completed in that year. This has a significant impact on the total amount of greenhouse gas emissions NKT must account for.îâ Using materials with lower resis-tivity (R). For example, copper has lower resistivity than aluminium.îâ Offering cables with a larger cross-section. Thicker cables reduce resistance but come with trade-offs: they cost more, require more materials, and take up more space.A clear understanding of NKTâs role in the energy value chain is essen-tial. NKT designs, builds and installs "energy highways". NKT does not operate them. The responsibility for managing the "traffic"âdeciding how much current to send through the cables at any given timeârests exclusively with the system opera-tors. Their decisions are based on a complex, dynamic optimisation of the entire grid. Therefore, while NKT is accountable for the intrinsic efficiency (the resistance, R) of the products, the operational emis-sions resulting from their use are a function of how the broader energy system is managed.Decarbonising the electricity gridEven with the most efficient cables, emissions will remain high if the grid electricity comes mainly from fossil fuels. This is where grid decarboni-sation plays a critical role.Across Europe, the outlook is clear: the electricity mix is expected to shift strongly toward clean energy in the next decades. Wind, solar, and hydro power are projected to drive most of the growth, while coal use is declining and gas and oil use will also shrink over time. This means that the emissions linked to cable power losses will steadily fall. Climate riskE1-3Climate-related risks refer to the potential negative impacts of climate change on NKTâs operations, sup-ply chain, financial performance, and reputation. In line with the Task Force on Climate-Related Financial Disclosures (TCFD), NKT catego-rises climate risks as either physical risks or transition risks. To manage these risks over time, NKT has assessed and quantified the most significant climate-related risks (resilience analysis), analysed potential financial consequences, and evaluated the need for mitiga-tion actions. Climate risks are fur-thermore integrated in the compa-ny's enterprise risk management.The climate risk assessment covers three timeframes: current, 2030 - 2050, and beyond 2050, which aligns with the NKT emission reduc-tion targets and climate change actions and follow best practices in climate science over the lifetime of assets, strategic planning, and the capital allocation plan.Physical climate riskNKT has assessed how exposed its production and non-production sites are to both chronic and acute physical climate hazards such as flooding, precipitation, and severe windstorms. The assessment uses three climate scenarios from the Intergovernmental Panel on Climate Change (IPCC):îâ ~ 1.5°C global warming scenario (SSP1 - RCP 1.9/2.6)îâ 2â3°C global warming scenario (SSP2 - RCP 4.5)îâ > 4°C global warming scenario (SSP5 - RCP 8.5)Using multiple scenarios helps NKT understand a wide range of possible future conditions and their impact on the business. The assessments have identified which sites are exposed to physical climate hazards in the range very low to very high. The results showed that flooding, severe windstorm, and sea level rise constitute the highest risk expo-sures. The assessment enabled each site exposed to high or very-high climate-related risks to focus on the relevant site-specific adapta-tion measures.Transition risksTransition risks relate to how the shift to a low-carbon economy could affect NKT. For NKT, one example of a transition risk is a shift in government policy or weaker support for renewable energy deployment that could slow invest-ment in grid projects, which may reduce future demand for NKTâs power cables. This could lead to lower use of new production capac-ity and weaker returns.To assess these risks, NKT used scenarios from IEA: Net Zero Emis-sions by 2050 (NZE), Announced Pledges Scenario (APS), and Stated Policies Scenario (STEPS). Performance dataEnergy consumption and mixE1-5NKT operates exclusively within sectors classified by the EU NACE codes as having a high climate impact, reflecting their significant influence on the environment and society. Specifically, it has activities within the "Manufacturing", and "Electricity, gas, steam and air con-ditioning supply" sectors. In 2025, while overall energy consumption increased by 10%, the share of renewable sources remained relatively stable at 63%. The increase in natural gas consumption reflects that the 2025 data includes a full year of operations from Esposende, Portugal, whereas 2024 only covered activity from the sec-ond half of the year, making the two years not directly comparable.2025 2024Fuel consumption from crude oil and petroleum products (MWh) 61,025 65,363 Fuel consumption from natural gas (MWh) 43,231 26,978 Fuel consumption from other fossil sources (MWh) - -Consumption of purchased or acquired electricity, heat, steam, and cooling from fossil sources (MWh) 19,047 18,431 Total fossil energy consumption (MWh) 123,303 110,772 Share of fossil sources in total energy consumption (%) 37% 36%Fuel consumption for renewable sources, including biomass (MWh) 8,550 9,483 Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources (MWh) 202,740 184,649 The consumption of self-generated non-fuel renewable energy (MWh) 1,530 21 Total renewable energy consumption (MWh) 212,820 194,153Share of renewable sources in total energy consumption (%) 63% 64%Total energy consumption (MWh) 336,123 304,925 Energy intensity per net revenueTotal energy consumption from activities in high climate impact sectors per net revenue from activities in high climate impact sectors (MWh/124 123EURm) Accounting policyEnergy consumption and mixNKT solely operates in high climate impact sectors. Consequently, NKT's total energy consumption and mix directly corresponds to the consump-tion in high climate impact sectors. NKTâs energy consumption includes all activities under NKT's financial and operational control, thus applying the same perimeter applied for reporting GHG Scope 1 and 2 emissions. This mainly consists of fuel used for ves-sels during offshore operations, natu-ral gas consumption at NKTâs produc-tion sites, and electricity purchased for its offices, production sites, and warehouses.This data originates from different sources, including marine gas oil, bio-gas, natural gas, district heating, and grid electricity, and is derived from NKTâs dedicated ESG reporting tool. When applicable, NKT has utilised the conversion functionality in its ESG reporting tool. Electricity from renewable sources includes electricity energy attribute certificates as well as self-generated non-fuel renewable energy. NKT fol-lows market-based accounting and thereby accounts for the purchase of green electricity by contractual agree-ment, i.e. certificates.Biogas includes open market certifi-cates provided by NKTâs supplier. 1Energy intensity ratioAs NKT exclusively operates in high climate impact sectors, its total net revenue directly corresponds to the net revenue from sectors with high climate impact sectors. Consequently, the energy intensity ratio is calculated based on the consolidated revenue presented in note 2.1: "Segment infor-mation and revenue" in the financial statements. The energy intensity ratio is calcu-lated by dividing the total energy consumption from activities in high climate impact sectors (in MWh) by the net revenue generated from those activities (in EURm, at standard metal prices). Significant judgementsTo determine the scope of the vessels utilised in NKTâs operations, an analysis of financial and operational control has been conducted in accordance with the guidance provided by the ESRS and the GHG Protocol. This assess-ment includes a review of vessel own-ership and NKTâs influence over the operations of vessels it does not own.Energy consumption related to vessels under NKTâs financial and/or opera-tional control are included in the report-ing of NKTâs energy consumption and mix. Vessels that are neither under financial nor operational control are reported under Scope 3, Category 1: Purchased goods and services.GHG emissionsE1-6In 2025, Scope 1 emissions increased by 4% compared to 2024, due mainly to the inclusion for the first time of a full year of emissions from Esposende, Portugal acquired in 2024. When emissions from Esposende are excluded, Scope 1 and 2 target performance improves to 70%, reflecting the successful substitution of natural gas with renewable energy sources in some of NKT's production processes.îIn 2025, 5% of the companyâs total Scope 3 emissions were based on primary supplier data; however, this represents 57% of the Scope 3 emissions associated with key materials reported under Category 1. Of this, 39% were based on sup-plier data on emission factors.Cable-laying vessels will be covered by the EU ETS scheme from 2026. The share of market-based Scope 2 emissions covered by EACs remained stable at 91% in 2025, in line with 2024. The EACs were fully comprised of unbundled Renewable Energy Certificates, Guarantees of Origin, Renewable Energy Guar-antees of Origin for the UK and Accounting policyDecarbonisation levers for Scope 1, 2, and 3 emissionsThe table presents historical progress from 2019 to 2025, and outlines expected emission reductions from 2025 through 2030 and 2050.The progress on the emissions from the base year 2019 until the most recent year 2025 is based on the emissions by scope stated in E1-6. It includes the three most significant emission sources in 2019 contributing to Scope 1 and 2, along with the two primary emission sources for Scope 3. Progress is meas-ured through both absolute changes in International Renewable Energy Certificates.tCOe and relative percentage changes. 2Each emission source is linked to its rel-evant decarbonisation programme, with comprehensive details available in E1-3.Future expectations are derived from NKT's SBTi commitments, as doc-umented in E1-4. These projections extend to both near-term (2030) and long-term (2050) horizons. The expected reductions for each decarbonisation lever have been calculated accounting for the expected and necessary impact of each decarbonisation programme, required to achieve these commitments.Decarbonisation levers for Scope 1, 2, and 3 emissionsE1-3, E1-6The increase in emissions from natural gas consumption reflects that the 2025 data includes a full year of operation from Esposende, Portugal, whereas 2024 only covered activity from the second half of the year, making the two years not directly comparable.Milestones Past performance and target yearsBase year % 2025/ % 2025/ Decarbonisation lever(s)2019 2024 20252024Baseyear 2030 2050Gross Scope 1 GHG emissions (tCOeq) 23,784 23,626 24,558 4% 3% - -2Marine fuel Sustainable marine fuels 12,320 14,977 13,435 -10% 9% - -Natural gas Phasing out natural gas 9,833 4,935 7,910 60% -20% - -Other 1,631 3,714 3,213 -13% 97% - -Gross market-based Scope 2 GHG emissions (tCOeq) 51,236 324 442 37% -99% - -2Electric power Sourcing renewable 50,903 - - 0% -100% - -electricityOther 333 324 442 37% 33% - -Gross Scope 1 and market-based Scope 2 27,5 0 2GHG emissions (tCOeq) 75,020 23,950 25,000 4% -67% 7,5 0 22120,821,6161Gross Scope 3 GHG emissions (tCOeq) 20,140,07524,071,936 16% 19% - -211120,110,74523,437,975 17% 18% 14,443,3911,992,192Total Category 1 and 11 19,921,91811,689,8581Category 1 Source lower emissions ma-848,0701,894,695 12% 123% - -terials and promote circularity118,420,887Category 11 Reducing losses and 19,073,84821,543,280 17% 13% - -decarbonising the grid1710,871Other 218,157633,961 -11% 182% - -1This number reflects the restated Scope 3 emissions, see page 69. 2 Combined Scope 1 and 2 target. For more details see Scope 1 and 2 - decarbonisation levers on page 75. Significant estimates and judgementsThe stated emission reduction level from marine fuels is based on the expectation that the gradual imple-mentation of the EU Emissions Trading System (EU ETS) for shipping will nar-row the price gap between conven-tional and alternative fuels, and create a more level playing field for sustain-able fuels. The emission reduction for contracted vessels is uncertain, and a decarbonisation plan is pending.The expected reduction in use phase emissions is based on the projected average decarbonisation of energy grids, following the Carbon Risk Real Estate Monitor (CRREM) trajectory. Further details on Scope 3 and the use of CRREM can be found in the accounting policy of E1-6.Retroperspective Milestones and target yearsGross Scopes 1, 2, 3, and total GHG emissions% 2025/ Annual % target / 2019 2024420252024 2025 2030 (2050)Base yearE1-6Scope 1 GHG emissions17,502Gross Scope 1 GHG emissions (tCO1eq) 23,784 23,626 24,558 4% - 7,5028.18%2NKT Group: Gross Scope 1 GHG emissions (tCOeq) 19,413 18,610 22,630 22% - - - -2Assets under operational control: Gross Scope 1 GHG emissions (tCOeq) 4,371 5,016 1,928 -62% - - - -2Percentage of Scope 1 GHG emissions from regulated emission trading schemes (%) NKT Group: Percentage of Scope 1 GHG emissions from regulated emission trading schemes (%) - - - - - - - -Assets under operational control: Percentage of Scope 1 GHG emissions from regulated emission trading schemes (%) - - - - - - - -Scope 2 GHG emissionsGross location-based Scope 2 GHG emissions (tCOeq) 52,230 50,659 49,067 -3% - - - -2NKT Group: Gross location-based Scope 2 GHG emissions (tCOeq) 52,230 50,659 49,067 -3% - - - -2Assets under operational control: Gross location-based Scope 2 GHG emissions (tCOeq) - - - - - - - -2Gross market-based Scope 2 GHG emissions (tCOeq) 51,236 324 442 36% - - - -2NKT Group: Gross market-based Scope 2 GHG emissions (tCOeq) 51,236 324 442 36% - - - -2Assets under operational control: Gross market-based Scope 2 GHG emissions (tCOeq) - - - - - - - -2Significant Scope 3 GHG emissions520,821,61653,53,51,992,1922.50%Total Gross indirect (Scope 3) GHG emissions (tCO21 Purchased goods and services 848,07051,689,85851,894,695 12% - - - -2 Capital goods 10,35157,9765105,178 81% - - - -3 Fuel and energy-related activities 10,647 6,576 6,769 3% - - - -4 Upstream transportation and distribution 33,691325,0805141,607 -56% - - - -5 Waste generated in operations 2,788 900 771 -14% - - - -1,97152,773 41% - - - -6 Business travelling 4157 Employee commuting 6,574 10,271 11,26 6 10% - - - -1,87152,419 29% - - - -9 Downstream transportation 2,44918,420,887521,543,280 17% - - - -11 Use of sold products (Indirect) 19,073,84812 End-of-life treatment of sold products 151,242 306,226 363,178 19% - - - -Total GHG emissionsTotal GHG emissions (location-based) (tCO2Total GHG emissions (market-based) (tCOeq) 20,215,0955 20,845,566524,096,936 16% - - - -2GHG Emissions intensity (location-based) (tCOe/EURm) 21,40058,39758,872 6% - - - -2GHG Emissions intensity (market-based) (tCOe/EURm) 21,39858,37758,854 6% - - - -2Biogenic emissions of CO outside of Scope 1 (tCOeq) 63 2,058 1,800 -13% - - - -22Biogenic emissions of CO outside of Scope 2 (tCOeq) 2,795 21,248 23,329 10% - - - -22Biogenic emissions of CO outside of Scope 3 (tCOeq) 0 0 0 0% - - - -221 Combined Scope 1 and 2 target. 2 Calculated on 2030 target. 3 Scope 3 target only covering Category 1 and 11. 4 As the 2024 disclosure includes only six months of emissions from Esposende, Portugal, figures are not directly comparable with other reporting years. 5 This number reflects the restated Scope 3 emissions, see page 69. Accounting policyScope 1 - Direct emissionsNKT's direct emissions include all activities and assets under its financial and operational control, which leads to Scope 1 GHG emissions. Assets under operational control include ves-sels not owned by NKT but utilised in its operations.NKTâs disclosure is based on the con-sumed energy multiplied by the appli-cable emission factor from the UK's Department for Energy Security & Net Zero and IPCC. When applicable, NKT has utilised the conversion functional-ity in its ESG reporting tool.Scope 2 â Indirect emissionsNKT's indirect Scope 2 emissions relate to the indirect emissions from energy purchases from all activities under its financial and operational control, which leads to Scope 2 GHG emissions. NKT discloses its emis-sions utilising both the location-based and market-based method to reflect the certificates purchased by NKT, which reduces NKT's indirect Scope 2 emissions.NKT's disclosure is based on the consumed energy multiplied by the applicable emission factor from US EIA Emission Factors for Steam and Chilled Water, Department for Energy Security & Net Zero, Energiföreta-gen Sverige, Environment Canada, International Energy Agency, and US Environmental Protection Agency Emissions & Generation Resource Integrated Database. The disclosure of NKT's indirect emissions includes the consumption of the renewable energy production from its installed solar pan-els, which is disclosed under ESRS E1-5. The percentage of contractual instruments in NKT's Scope 2 GHG emissions is calculated by comparing its Scope 2 GHG emissions with the amount of emissions covered by its purchase of Renewable Energy Cer-tificatesScope 3 - Indirect emissionsReporting is based on the GHG Pro-tocol and accordingly divided into 15 subcategories (Category 1-15) of which categories 8, 10, and 13-15 are in 2025 determined as not applicable to NKTâs operations.Scope 3 Category 1: Purchased goods and services Scope 3 emissions for purchased goods and services are calculated using a hybrid approach that com-bines two methods: The activity average method and the spend-based method.1. Activity average method: Calculates emissions for key commodities from key suppliers identified by economic relevance and volume. It multiplies purchased volumes with primary emission data from the supplier (Product Carbon Footprint, PCF) when available. If primary data is not available, the method applies lifecycle emission factors from ecoinvent 3.10 as a default. NKT follows a decision tree developed by PACT (Partnership for Carbon Transparency) to determine how to restate emissions when PCFs are updated.2. Spend-based method: This method applies to all other spend catego-ries. Emissions are calculated by multiplying the spend amount by sector average emission factors. NKT uses the EPA Supply Chain Greenhouse Gas Emission Fac-tors v1.2 by NAICS-6, mapping NAICS-6 codes to NKT's spend categories. The spend-based emis-sions factors are adjusted for infla-tion and currency exchange rates.Scope 3 Category 2: Capital goodsScope 3 Category 2 emissions are calculated using the spend-based method based on the EPA Supply Chain Greenhouse Gas Emission Factors v1.2 by NAICS-6. The spend-based method is adjusted for inflation and currency exchange rates.Scope 3 Category 3: Fuel and energy-related activitiesScope 3 emissions for fuel- and energy-related activities are calcu-lated using the average-data method, based on fuel quantities and types consumed. Emissions are determined using well-to-tank emission factors from the UK's Department for Energy Security and Net Zero for the respec-tive reporting year. These calculations include in-scope biogenic fuel emis-sions. For renewable electricity, only transmission and distribution emis-sions are considered, with generation emissions set to zero.Scope 3 Category 4: Upstream transportation and distributionUpstream transportation emissions are calculated using the spend-based method based on the EPA Supply Chain Greenhouse Gas Emission Fac-tors v1.2 by NAICS-6. Upstream emis-sions are adjusted for and include also emissions from inbound transportation not paid for by NKT. NKT assumed that 75% of inbound transportation is paid by others.Scope 3 Category 5: Waste generated in operationsScope 3 Category 5 (Waste) emis-sions at NKT are based on actual waste quantities and treatment categories: Landfill, incineration with energy recovery, and recycling. Emissions are based on the emission factors from the UK's Department for Energy Security and Net Zero for the reporting year.Scope 3 Category 6: Business travelScope 3 Category 6 emissions are determined using the spend-based method based on EPA Supply Chain Greenhouse Gas Emission Factors v1.2 by NAICS-6.Scope 3 Category 7: Employee commutingScope 3 emissions for employee com-muting (Category 7) are calculated by multiplying the number of employees in head count in the reporting year with a conversion factor from the now-discontinued Quantis Scope 3 Evaluator tool. The methodology estimates that the average employee emits approximately 1,700 kg COe 2per year.Scope 3 Category 9: Downstream transportation and distributionDownstream transportation emissions are calculated using the spend-based method applied in calculating upstream transportation emissions (see Scope 3 Category 4: Upstream transportation and distribution). Down-stream emissions are calculated on the basis of spend for outbound trans-portation. NKT assumes that 90% of the outbound transportation is paid for by NKT, while 10% is paid for by other non-NKT undertakings.Scope 3 Category 11: Use of sold productsScope 3 Category 11 emissions are calculated by multiplying the lifetime power losses of sold power cables by an emission factor reflecting the energy grid mix where the cable is used. These emissions are based on sales and project data from the report-ing year. The power loss calculation method aligns with Europacable's joint information note on Category 11 âUse of sold products.âPower loss calculations use assump-tions about cable use, including current load factor and lifetime (25-40 years), aligned with Europacable. Emissions are calculated by multiply-ing the annual power losses of each cable sold or deployed by a projected emission factor for each year of the cable's assumed lifetime. The pro-jected emission factor is based on lifecycle emission factors by voltage segment and country, sourced from ecoinvent 3.11 for 2025, 3.10 for 2024, and 3.6 for 2019. The forecasted emission factors follow the CRREM Global Pathways 1.5-degree trajec-tory. CRREM pathways provide a publicly available, regularly updated source with a long forecasting horizon until 2050.The NKT model uses a constant emission factor after 2050 for unbi-ased calculations. Ecoinvent emission factors include lifecycle emissions and transmission losses, while CRREM focuses on direct combustion for electricity generation. Therefore, fore-casted ecoinvent emission factors are used to calculate absolute emissions of sold cables.Scope 3 Category 12: End of life treatment of sold productsScope 3 Category 12 emissions are calculated using the activity average method. The volumes of materials entering and leaving the organisation are assumed equal, with metals recy-cled and insulation incinerated with energy recovery at the product end-of-life. Emissions are calculated based on material quantities and emission factors from the UK's Department for Energy Security and Net Zero.Effect of restatement on target and programmesThe changes to the Scope 3 carbon inventory do not affect the decarboni-sation target. The target is maintained. The decarbonisation programmes remain valid, too.GHG emissions intensity ratioThe GHG emissions intensity ratio for location-based emissions is calculated by dividing the total GHG emissions, location-based in tCOe by the net 2revenue generated from NKT's activi-ties in EURm, at std. metal prices. The GHG emissions intensity ratio for market-based emissions is calculated by dividing the total GHG emissions, market-based in tCOe by the net rev-2enue generated from those activities in EURm, at std. metal prices.The net revenue used for the calcula-tion of GHG emissions intensity, can be found in the consolidated revenue presented in note 2.1: "Segment infor-mation and revenue" in the Financial statements.Biogenic carbon emissionsThe biogenic carbon emissions from Scope 1, 2, and 3 are calculated by multiplying the volume of used biomass with the corresponding car-bon emission factors from the UK's Department for Energy Security & Net Zero. Significant estimates and judgementsTo determine the scope of the vessels utilised in NKTâs operations, an analy-sis of financial and operational control has been conducted in accordance with the guidance provided by the ESRS and the GHG Protocol. This assessment includes a review of ves-sel ownership and NKTâs influence over the operations of vessels it does not own.Vessels under NKTâs financial and/or operational control are included in the reporting of NKTâs direct emissions. Conversely, vessels that are neither under financial nor operational control are reported under Scope 3, Category 1: Purchased goods and services.Reported GHG emissions and emis-sion-reduction progress are subject to significant estimates and judgements, particularly regarding data quality, val-ue-chain boundaries, and methodo-logical choices. Refer to the significant estimates and judgements on page 80 for further details.NKT's handprint: Projected clean electricity facilitated or enabled by NKT in 2030In 2025, NKT completed projects projected to facilitate or enable 12 TWh in 2030 adding to the 15 TWh enabled or facilitated by projects completed between 2019 and 2024. Since 2019, NKT has in total completed projects that are projected to contribute 27 TWh clean energy in 2030. Entity specific Unit 2019-2025 2019-2024Aggregated handprintDirect connection of renewable energy production assets to the grid (Facilitated) TWh 24 12Interconnection of electricity grids (Enabled) TWh 3 3Total TWh 27 15 Accounting policyNKT's handprint is calculated using a transparent and conservative meth-odology developed by Ramboll and is based on internationally recognised sources, including the Greenhouse Gas Protocol, the International Energy Agency (IEA), ENTSO-E data, and confidential NKT project information. The methodology estimates how NKTâs cables installed between 2019 and 2025 are expected to contribute to renewable electricity generation in Europe in 2030. The handprint com-prises two independently calculated components: â Direct facilitation, representing the estimated renewable electricity pro-duction from assets (such as off-shore wind farms) that are directly connected to the electricity grid using NKTâs cable systems; â Indirect enablement, representing the estimated additional renewable electricity production enabled by NKTâs interconnector cable sys-tems by reducing renewable energy curtailment and allowing surplus electricity to flow across regions. For direct facilitation, renewable electricity production is calculated by multiplying the installed capacity of connected renewable assets by coun-try-specific capacity factors sourced from ENTSO-E. For indirect enable-ment, expected avoided curtailment is estimated using a European power system simulation model aligned with the ENTSO-E Ten-Year Network Development Plan (TYNDP 2024). The handprint is presented as the sum of the direct facilitation and indirect enablement contributions. The hand-print is forward-looking, represents an estimate rather than actual measured outcomes, and is disclosed separately from NKTâs greenhouse gas emis-sions inventory. Significant estimatesThe handprint is calculated using an energy system model that assesses how NKTâs cables enable the inte-gration of renewable electricity into the European power system. The internal model simulates the European electricity grid under two scenarios: with the projected 2030 grid and with the same grid where specific NKT power cables are removed, with the difference representing the handprint. The model is based on the 2024 ENTSO-E Ten-Year Network Development Plan (TYNDP) 2030 scenario and relies on publicly avail-able, internationally recognised data sources. Key assumptions include installed generation capacities from TYNDP National Trends, electricity demand from TYNDP National Trends (classic demand) and Global Ambition, commodity prices aligned with IEA Announced Pledges, transmission capacities from the TYNDP 2024 Project Collection, as well as full avail-ability of offshore wind farms in 2030 with no major technical or regulatory issues, no consideration of transmis-sion losses, and the use rolling aver-ages for wind capacity factors Negative impact Positive impact Resource use and circularity Financial risk SBM-3 Financial oppor tunityUpstream Own operations Downstream Raw materials Raw materials Resource shortages Production waste Production waste Circularity market demand Substances of very high concern End-of-lifeResource inflows Raw materialsUse of virgin materials Circularity market Unrealised circularity potential NKT uses significant amounts of virgin materials with environmental impacts. The material demandDemand for circular products is rising, making product footprint crucial for customers. Failing flow is mostly linear.to improve circularity can lead to missed opportunities.Actual negative impact. Time horizon: all. Time horizon: all. Resource shortagesAvailability of raw material Resource inflows with adverse negative effects on people and environment can cause repu-Resource optimisationtational damage and resource shortages, affecting NKT from a brand perspective. Resource Production wasteWaste generation in production shortages from mines pose a risk to continued production.As a production company, NKT generates waste from the production of cable systems and Time horizon: all.through the installation, service, and maintenance of cables and cable systems. Actual negative impact. Time horizon: all.Resource outflowsMaterial health End-of-lifeLimited end-of-life recovery The materials used by NKT follow a linear system from extraction to end-of-life. Power cables Substances of very Usage of toxic substances often last more than 40 years, and many remain in place in the ground and seabed as potential high concernNKT uses substances classified as substances of very high concern (SVHC) in production, and resources even though recycling technologies are available.some remain present in the finished products. Certain substances are difficult to substitute in Actual negative impact. Time horizon: all.the short term.Actual negative impact. Time horizon: all. To read more about the material sustainability matters, see: DMA results on page 63.Resource use and circularity Circularity is a key enabler for reducing environmental impacts across the value chain. It supports resource efficiency, minimises waste, and contributes to decarbonisation efforts, which are material to NKTâs long-term sustainability and resilience.NKTâs approachE5-1, E2-1NKT works with circularity by inte-grating principles across the value chain and within its own operations, as outlined in the Circularity Frame-work. NKT incorporates circularity in the procurement of raw materials, in production, installation, service and maintenance of cable systems, and through collaboration with partners on decommissioning. The enabling principles behind all of these activi-ties is NKTâs focus on two strategic areas: îâ Design for circularity.îâ Resource optimisation.While circularity is a key strategic focus area for NKT, proper manage-ment of the materials in its produc-tion and products also mandates a focus on Material Health. Material Health refers to the chemicals, such as substances of very high concern (SVHC), NKT uses in its production and that it introduces to the market in a limited number of products. These may, if not managed properly, have a negative impact on workers during production and installation of the cable systems as well as on the surrounding environment. NKTâs approach to avoid pollution caused by SVHC includes prevention and substitution. By ensuring compli-ance with the REACH regulation in the companyâs operation and actively working with finding alterna-tives to SVHCs in R&D, the preven-tion of pollution is an integrated part of how the company operates.The relevant NKT policies can be found here: Circular Economy Policy IMS Policy Procurement Sustainability PolicyKey actions E5-2, E5-4, E5-5Design for circularityCables and cable systems are designed for long lifetimes and high quality standards. To enhance cir-cularity, NKT addresses it from the earliest design stages, recognising it as an ongoing process since early decisions ultimately deter-mine how circular a cable system can be. Through supplier engage-ment, product development, and Research & Development (R&D), NKT applies circular design princi-ples enabling that: îâ Products have a high recycled content by replacing virgin resources with secondary mate-rials, where quality and technical specifications allow.îâ Products are durable and meet high quality standards. Typically, NKTâs products are designed to ensure that energy distribution networks serve 40 years, building wires 30 years, and telecom net-works 20 years.îâ Products are highly recyclable and cable system solutions are repairable. îâ Packaging solutions are return-able and reusable. In 2025, NKT developed a new framework to assess sustainability aspects in product development and R&D, which includes key circu-larity aspects such as recycled con-tent and product recyclability. This structured approach will increase circularity in NKTâs product portfo-lio and will be embedded in future R&D work. An example of NKTâs recently launched product is the Adaptive Rigid Seajoint, a âone for allâ solution suitable for all common three-phase submarine cables up to 300 kV. This modular design offers fewer spares, reduced costs, and less waste. Resource optimisationIn cable systems production, resource optimisation is driven by two activities:îâ Higher material efficiency rates.îâ Higher reuse and recycling rates for production waste, ensuring that any disposed materials fol-lows the waste hierarchy. Actions to improve resource optimi-sation and to reach the 2030 target, are tailored to NKT sites, with an emphasis on sharing best practices across locations. For example, regrinding, remelting, and reusing plastic scrap output is done at a number of the factories. At one of the Portuguese sites, generated aluminium scrap is being remelted in the site furnace and introduced as pre-consumer recycled content. At one of the Swedish sites, wood waste has been diverted away from incineration with energy recovery towards furniture production. These actions ensure that materials are being utilised with maximum value retention.NKTâs primary material inflowsE5-4 The main material inflows to produce NKTâs cable system products are metals like copper, aluminium, lead, steel, and plastics.These materials have complex value chains where the initial step is extraction of raw materials such as crude oil and metal ores, followed by refining processes and man-ufacturing into high-quality products. These products are then used by NKT to manufacture cable systems. NKT uses copper and aluminium in the cable conduc-tors for their electrical properties, where aluminium is processed from bauxite, and copper from copper ore. Both materials are listed in the Critical Raw Materials Act. The different plastics are used for their insulation and semi-conductive properties and are critical to maintain high performance of cable systems. After the cables are produced, NKT delivers them in packaging such as cable drums in steel, wood, and plastic. The main impacts of the core materials are in the value chain where mining and extraction of virgin materials con-tribute to among others resource depletion and carbon emissions through energy-intensive refining processes. Overall, increasing circularity in the value chain is an important decarbonisation and resource use lever to reduce these impacts.These actions for resource optimi-sation are made possible by long term partnerships with waste ser-vice suppliers. where collaboration on reusing and recycling materials is key for keeping materials high up in the waste hierarchy. During installation, projects have waste management plans to ensure that downstream waste is minimised and that generated waste is reused or recycled to the extent possible. Increasing the lifetime of the existing energy grid After the installation of cables, NKT works with its customers to prolong the lifetime of existing assets by offering service and maintenance. By focusing on maintaining, repairing, and refurbishing systems dating back to the mid-20th century, NKT postpones decommissioning for as long as possible. However, some cable systems will become obsolete or their maintenance impractical. At this stage, NKTâs focus shifts to recovering as many resources as possible from the cable. This reduces the demand for new raw materials and minimises waste. Advanced recycling techniques allow for the disassembly and recycling of metals, insulation, and other com-ponents. This focus has in 2025 resulted in the following demonstrable exam-ples of NKT's approach to increas-ing the lifetime of the existing energy grid: îâ Offering of a comprehensive cable monitoring solution called ®MakeSense, which makes it possible to enhance the perfor-mance and lifespan of power cables.îâ The successful repair of an offshore 220 kV cable that con-nected a wind park to the main-land supplying 450,000 house-holds with electricity. îâ Refurbishment of terminations in the NordNet system between Norway and the Netherlands. NKT actively participates in the Cir-cular Energy Economy coalition in the Netherlands, an initiative driven by the government and local grid operators to transform the energy infrastructure industry toward circu-lar operating models. Material HealthE2-2Material Health is a strategic focus area for NKT with particular emphasis on the avoidance and substitution of substances of very high concern (SVHC). In NKTâs manufacturing processes, SVHCs are used in accordance with the REACH regulation and industry best practices. As the regulatory frame-works evolve, NKT will continue to monitor regulatory developments and update its product portfolio and processes to ensure ongoing com-pliance and to minimise the use of SVHCs wherever feasible.Looking ahead, NKT will further strengthen its approach to chemical safety by an increased focus on governance structures, chemical management, and actions to iden-tify and implement safer alterna-tives. Material Health is also part of the sustainability framework in R&D, which will be fully embedded into future product development activities.NKT has set a voluntary resource optimisation target to recycle or reuse 90% of production waste by 2030. The target was established in close collaboration with multiple internal stake-holders and is based on industry best practice and the waste hierachy from the EU Waste Directive. Generated waste flows mainly consist of metals and plastics. Total volumes of waste are reported in the Performance section.While NKT has not set a specific target for product circularity, the company is currently assessing the applicability for setting a circularity target. Actions aimed at increasing circular product design and material use are tracked as described under Actions and monitoring of related of metrics is conducted as part of the annual reporting on performance, including the rate of secondary materials, product durability, repairability, and recyclability. In addition, the overall use of SVHCs is monitored with a focus on reduction. No specific target regarding SVHC has been established and NKT is currently assessing the applicability of setting one.Targets E5-3, E2-3CircularityResource optimisation90% recycling or reuse of production waste by 203080%69% 82% 80% 90%2022 2024 2025 2030 targetbaselinePerformance dataResource in- and outflow E5-4, E5-5In 2025, the average levels of recycled content in copper increased. This improvement was however offset by changes in the materials mix of cables produced resulting in an overall lower average.Unit 2025 2024Biological materials in products % 0 0Biological materials in packaging % 30 30Secondary reused or recycled components, secondary intermediary products and secondary materials in products % 12 14Secondary reused or recycled components, secondary intermediary products and secondary materials in packaging % 3 51The rates of recyclable content in products % 40 21The rates of recyclable content in products packaging % 9 11 Accounting policyPercentage of sustainably sourced biological materialsThe percentage of biological materi-als and biofuels used for non-energy purposes is calculated by dividing the total weight of sustainably sourced biological materials in metric tonnes by the total weight of raw materials in metric tonnes. The biological materials are PEFC certified. Percentage of reused or recycled componentsThe proportion of reused or recy-cled components in raw material purchased in the reporting period is obtained directly from NKT's sup-pliers. In cases where NKT cannot obtain information on the supplier spe-cific recycling rates from its suppliers, they are estimated using the global average data on recycled copper and steel supplied by the ecoinvent database.The percentage of secondary reused or recycled components, secondary intermediary products, and secondary materials used for the manufacturing of products and packaging is calcu-lated by dividing the total weight of reused/recycled components used for respectively products or main packag-ing categories in metric tonnes by the total weight of raw materials used for respectively products or main packag-ing categories in metric tonnes.Sustainably sourced materialsFor the disclosure on sustainably sourced biological materials, NKT relies on the availability and quality of data from its suppliers. In cases where NKT cannot obtain information on the amount of sustainably sourced bio-logical materials from its suppliers, it assumes the share to be 0%.Reused or recycled componentsFor the disclosure on reused or recy-cled components, NKT relies on the availability and quality of data from its suppliers. When supplier data is not available, NKT has opted to use the verified global average for recycled content available in the ecoinvent database. This approach allows NKT to present a more accurate and reli-able assessment of its environmental impact.In cases where NKT cannot obtain information on the amount of reused or recycled components from the suppliers or ecoinvent database, it assumes the share to be 0%.Recovery rateNKT has opted to use the verified global average for recovery rates as stated in the industry standard EN 50693:2019. This approach allows NKT to present a more accurate and reliable assessment of environmental impacts. In cases where NKT has no specific or representative data available, and where industry standard EN 50693:2019 does not provide guid-ance on the recovery rate, NKT assumes the share to be 0%. Significant estimates and judgementsFor the disclosures related to circular-Refer to the sity, NKT assumes the total amount of Basis for preppurchased main raw materials to be on the omissioconsumed within the reporting period.confidentialityResource outflow - wasteE5-5NKT works actively with minimising waste from its production. The table summarises NKTâs total waste generation, disaggregated by disposal method and waste composition. The table further shows NKTâs progress toward its 2030 target of achieving 90% recycling or reuse of production waste.Unit 2025 2024Total waste generated Tonnes 40,933 37,452Non-hazardous wasteTotal amount of non-hazardous waste Tonnes 38,994 36,10 8Non-hazardous waste - Preparation for reuse Tonnes 225 105Non-hazardous waste - Recycling Tonnes 30,083 28,740Non-hazardous waste - Other recovery options Tonnes 7, 8 2 8 6,295Non-hazardous waste - Incineration Tonnes 0 0Non-hazardous waste - Landfill Tonnes 858 968Non-hazardous waste - Other disposal operations Tonnes 0 0Hazardous wasteTotal amount of hazardous waste Tonnes 1,939 1,344Hazardous waste - Preparation for reuse Tonnes 21 145Hazardous waste - Recycling Tonnes 1,289 689Hazardous waste - Other recovery options Tonnes 362 193Hazardous waste - Incineration Tonnes 11 48Hazardous waste - Landfill Tonnes 256 269Hazardous waste - Other disposal operations Tonnes 0 0OtherNon-recycled waste Tonnes/% 9,314 / 23% 7,773 / 21%Total amount of radioactive waste Tonnes 0 0NKT waste target performanceWaste from production facilities Tonnes 36,830 32,16 3Reused waste from production facilities Tonnes 29,354 26,394NKT waste target performance % 80% 82% Accounting policyVolumes of wasteNKTâs generated waste includes all activities under NKT's financial and operational control, thus applying the same perimeter applied for reporting of energy consumption and GHG Scopes 1 and 2 emissions. This mainly consists of waste generated during the production of cables and cable accessories. Waste from production facilities excludes waste related to CAPEX projects. The data is derived from NKTâs ESG reporting tool. Percentage of non-recycled wasteThe percentage of non-recycled waste is calculated by dividing the total amount of non-recycled waste in metric tonnes by the total waste gen-erated in metric tonnes. Significant judgementsNKT has performed a centralised reclassification of waste categories for ESRS alignment. Where direct mapping from NKT's internal report-ing categories to the ESRS waste reporting categories was not possible, proxy calculations based on data from NKTâs ESG reporting tool were used.Substances of very high concern E2-5NKTâs disclosure focuses on the main hazard classes of SVHCs present in its production processes. Hazard classes of SVHC's present in NKT's manufacturing processesHealth Hazard Classes H301 Toxic if swallowedH314 Causes severe skin burns and eye damageH315 Causes skin irritationH317 May cause an allergic skin reactionH318 Causes serious eye damageH319 Causes serious eye irritationH330 Fatal if inhaledH334 May cause allergy or asthma symptoms or breathing difficulties if inhaledH335 May cause respiratory irritationH341 Suspected of causing genetic defectsH350 May cause cancerH360 May damage fertility or the unborn childH361 Suspected of damaging fertility or the unborn childH362 May cause harm to breast-fed childrenH372 Causes damage to organs through prolonged or repeated exposureEUH208 May produce an allergic reactionEnvironmental Hazard ClassesH400 Very toxic to aquatic lifeH410 Very toxic to aquatic life with long lasting effectsH411 Toxic to aquatic life with long lasting effectsOther Hazard ClassesEUH440 Accumulates in the environment and living organisms including in humansEUH441 Strongly accumulates in the environment and living organisms including in humans Accounting policyThe disclosure of NKT's SVHCs applies to its production sites only. Information on the types of SVHCs used in NKTâs production processes is obtained from its dedicated chemi-cal management systems. Negative impact Positive impact Engaging suppliers on environment Financial risk SBM-3 Financial oppor tunityUpstream Own operations Downstream Pollution of environment Water use Waste generation Biodiversity lossPollutionWater Pollution of Pollution of air, water, and soil Water useUse of water in mining and metal processesMining wastewater can pollute water sources, affecting aquatic life and human health. Mining Mining and metal processing require significant water, impacting local water sources and the environment can cause heavy metal contamination, harming soil, ecosystems, and human health.hydrological cycle.Actual negative impact. Time horizon: all.Actual negative impact. Time horizon: all.NatureResource optimisation Biodiversity lossLoss of biodiversity due to mining activities Mining contributes to biodiversity loss through habitat destruction and ecosystem changes. Waste generationGeneration of mining waste Mining and other upstream activities results in the production of large volumes of waste, such Mining degrades land, causing habitat destruction, fragmentation, and wildlife displacement.as tailings. Upstream, the mining of metal ores generates waste and by-products, impacting Mines in natural habitats cause significant species impacts, including habitat destruction and the environment.fragmentation.Actual negative impact. Time horizon: all.Actual negative impact. Time horizon: all. To read more about the material sustainability matters, see: DMA results on page 63.Engaging suppliers on environmentE2-2, E2-3, E2-4, E3-2, E3-3, E4 (summarised version as per BP-2.17)NKT procures materials from upstream business partners, who extract and process these materials through mining and resource-intensive activities. NKT recognises that the materials used in cable production can have significant impacts on the environment. We work to mitigate these impacts through robust supplier due diligence requirements and ongoing engagement. NKTâs approachNKT manages the impacts from its upstream business partners through its supplier engagement and due diligence process. Man-aging the impacts is fundamental for NKT to produce cable systems with a transparent environmental footprint.NKT's expectations for suppliers to mitigate environmental impacts are communicated through the NKT Procurement Sustainability Policy and the NKT Supplier Code of Con-duct. They cover topics related to compliance with relevant legislation, low-carbon materials, circularity, biodiversity, the reduction of waste and of the pollution of air, water, and soil.NKT acknowledges the importance of these material impacts and have therefore integrated them in the company's ongoing established due-diligence approach, which aims to identify, assess, and address risks in collaboration with the com-pany's suppliers. NKT has not set separate targets or metrics for these matters but monitors the effective-ness of its due diligence policies and activities within the existing due diligence process.NKTâs actions on engagement with its suppliers on environmental impacts can be found in the section on Supplier management.For more information: Supplier management Procurement Sustainability PolicySocial information Negative impact Positive impact NKT's people Financial risk SBM-3 Financial oppor tunityUpstream Own operations Downstream Health and safety Harassment of vulnerable groups Health and safety Equality and equal opportunities DiversityHealth and safetyDiversity, fairness, and a harassment-free workplace Health and safetyImpact on health and safety of own workforce There are inherent health and safety risks associated with the manufacturing of cables, which DiversityOpportunity to employ a more diverse workforce Health and safetycan impact all employees on NKT premises. If not mitigated, the consequences of hazards NKT operates in the industrial sector, which historically has developed a male-dominated can result in severe injuries for the individual employee. Health and safety risks in cable man-workforce. To ensure a continuously strong employment base, NKT regards working towards a ufacturing can impact market perception if not managed well. Customers and stakeholders more diverse workforce as an opportunity.consider this information when selecting suppliers.Time horizon: all.Actual negative impact. Time horizon: all. Harassment of Harassment risk in own workforce vulnerable groupsWithin NKTâs operations the risk of harassment in the workforce represents a negative impact for underrepresented or vulnerable groups. This can occur both in office environments and in the companyâs factories, with consequences for the individual employee.Actual negative impact. Time horizon: all. Equality and equal Advancing gender equality opportunitiesHistorically, industrial sectors have often limited opportunities for women and underrepresented groups, leading to pay gaps and unequal representation. This reinforces inequality and slows progress towards fair and inclusive workplaces.Actual negative impact. Time horizon: all. To read more about the material sustainability matters, see: DMA results on page 63.NKTâs peopleNKTâs people are the foundation of the companyâs success. NKT considers diversity, well-being, and health and safety as essential aspects of how the company supports its people.NKTâs employeesS1-6NKT employs 6,627 employees across 16 countries of operations. NKTâs workforce consists of tech-nical, operational, and knowledge professionals across its production facilities and support functions. NKT manufactures and installs cables, which pose significant health and safety risks to employees, with individual incidents identified as the primary negative impact.NKT operates in the industrial sec-tor, which historically has developed a male-dominated workforce, today evidenced by the fact that NKT employs 80% male across all levels. To ensure a continuously strong employment base and to leverage the benefits of a diverse workforce, NKT has an opportunity in working with diversity and equal opportuni-ties as part of an inclusive and fair work culture. Due to the nature of the compa-nyâs operations, NKTâs employees work in multiple geographies and in diverse cultural settings. While the location of the companyâs activities does not present a significant risk of forced, compulsory, or child labour, NKTâs Code of Conduct includes a statement on zero tolerance of child or forced labour across the value chain. NKTâs engagement with its employeesS1-2, S1-3, S1-4NKTâs engagement with its employ-ees remains a cornerstone of the company, reflecting its Nordic herit-age and values. The organisational culture is shaped by the Shared Beliefs and Leadership Princi-ples, which guide behaviour and decision-making across all levels. These principles were developed by employees and are firmly grounded in the lived experience of working at NK T.The Group Leadership Team (GLT) has operational responsibil-ity for ensuring that engagement with NKTâs employees is carried out and as part of the employee engagement, NKT engages with employees on sustainability-related impacts, risks, and opportunities. Engagement occurs both with the employees directly and with their representatives through department meetings and in meetings with union representatives.Employee insights are captured annually through the global VOICE survey, which informs targeted actions and enables progress track-ing across the business, including on the companyâs targets for its own workforce. The VOICE survey includes employee characteristics to support NKTâs work on inclu-sion and marginalised groups. In 2025, the company introduced new demographic questions designed to better understand the experiences of marginalised groups and to ensure its efforts are inclusive and equitable. In politically complex environments, where local norms or legislation may conflict with NKTâs commitment to diversity and inclusion, NKT applies measures to safeguard its stand-ards. These efforts support the reaffirmation of a safe and inclusive workplace for LGBTQ+ employees, particularly in regions where their rights may be challenged.Awareness around misconduct reporting continues to be strength-ened, reinforcing NKTâs commit-ment to integrity and transparency. The global launch of the non-har-assment initiative has enabled the company to identify both strengths and areas for improvement in foster-ing respectful workplaces.NKT recognises the vital role of col-laboration with workersâ represent-atives and unions, which remains essential to building trust and driv-ing sustainable change together.NKTâs workforce can raise con-cerns through the companyâs speak up culture, to HR, or through the formalised Whistleblower Hotline, of which a description can be found here: NKTâs Whistleblower Hotline Incidents and complaintsNKT's people: diversity, fairness, and a harassment-free workplaceDiversity and fairness are core priorities for NKT, reflecting the companyâs commitment to equal opportunities and a workplace free from harassment and violence.NKTâs approachS1-1, S1-4NKT is actively working on diversity and fairness as part of its commit-ment to fostering an organisation where people from different back-grounds are given equal oppor-tunities based on merit and can perform at their best, regardless of gender, belief, sexual orienta-tion, social class, nationality, age, ethnicity, physical ability, or other distinguishing characteristics. NKT regards diversity in educational backgrounds, personalities, and perspectives as beneficial to the companyâs performance.At some of NKTâs operational sites, it has been a national regulatory requirement to address and imple-ment actions against harassment and violence in the workplace whereas at other sites there have been limited requirements. In 2025, NKT initiated work to ensure a harmonised approach across all operational sites to create a psycho-logically safe and secure workplace without harassment and violence, while reflecting the differing maturity levels across the company.Human rightsNKT's commitment to human rights aligns with recognised international human rights standards, includ-ing the International Bill of Human Rights and the eight ILO funda-mental core conventions forming the basis of ILO's Declaration on Fundamental Principles and Rights at Work. NKTâs approach to human rights is guided by the OECD Guide-lines for Multinational Enterprises and the UN Guiding Principles. All NKTâs employees are covered by the Human Rights Policy. NKT will continuously strengthen its human rights reporting, which can be found in the governance section: Reporting on human rights impactsThe relevant NKTâs policies can be found here: Diversity and Inclusion Policy Non-Harassment and Non- Discrimination Policy Human Rights PolicyTargets S1-5DiversityUnderrepresented gender in senior leadership30% share of underrepresented gender in senior leadership by 203019% Share of female new hires30% share of women among new hires by 203028%Key actionsS1-4DiversityTo reach the company targets for diversity, NKT focuses on two areas:îâ Diversity among current employeesîâ Diversity in recruitmentNKT's actions within these areas are driven by dedicated resources at both group and operational level and are related to: Diversity among current employeesîâ Female leadership develop-ment Dedicated programmes support women at entry-level and mid/senior leadership stages, alongside broader leadership initiatives.îâ Awareness and training Webi-nars, workshops, and campaigns are held to build understanding and engagement around diversity and equality.îâ Diversity in talent processes Succession planning and talent development are continuously being refined with a focus on diverse representation.îâ Gender pay equity measures During 2025, a global analysis tool has been implemented, with associated training, and prepara-tions are underway to disclose in alignment with the EU Pay Trans-parency Directive.Diversity in recruitmentîâ Bias-aware recruitment prac-tices Recruitment processes are reviewed to mitigate bias, ensure equal terms for new hires, and promote fairness across all roles.îâ Targeted employer branding and outreach Diversity-focused branding, university partnerships, and campaigns like âRefer a Womanâ support broader out-reach and balanced representa-tion.Incidents of harassment and violenceNKT will continue to strengthen its harmonised approach to address-ing, mitigating, monitoring, and tracking incidents of harassment and violence across NKT. While a global initiative, actions and man-agement of incidents will be firmly anchored at the operational level to ensure effective response. In 2025, NKT has strenghtened the founda-tion of the harmonised approach by:îâ Establishing a process to track reports of harassment and dis-crimination globally.îâ Developing and rolling-out train-ing of key staff to handle harass-ment and discrimination reports.îâ Developing and launching an e-learning course addressing har-assment and discrimination.îâ Increasing visibility and aware-ness of the topic across the business.These initiatives will serve as the basis for NKTâs ongoing work to ensure a consistent, respectful, and safe working environment across all operations.NKTâs approach to diversity is tracked through the companyâs diversity targets above. The targets drive actions to reach a diverse work-force by addressing the company's two diversity focus areas and has been approved within the corporate goverance framework including BoD endorsement, however with limited involvement of employees. The target, and the performance towards the target, is monitored continuously and reported bi-annually to the GLT, ESG Committee, and the BoD.Performance dataCharacteristics of employees S1-6, S1-9 NKT employed 6,627 people in 2025 which is an increase from 6,057 people in 2024, reflecting the company's organic growth during the year. Employees by gender and contract type Unit 2025 2024Female Head count 1,350 1,181Male Head count 5,276 4,875 Other Head count 1 0 Not disclosed Head count 0 1 Total number of employees Head count 6,627 6,057 Female Head count 1,239 1,097 Male Head count 4,955 4,575 Other Head count 1 0 Not disclosed Head count 0 1 Total number Head count 6,195 5,673 of permanent employeesFemale Head count 111 84 Male Head count 321 300 Other Head count 0 0 Not disclosed Head count 0 0 Total number Head count 432 384 of temporary employeesFemale Head count 0 3 Male Head count 12 20 Other Head count 0 0 Not disclosed Head count 0 0Total number of non- Head count 12 23 guaranteed hours employees Accounting policyFor related information on NKTâs workforce, refer to note 2.2: "Staff costs" in the financial statements.Gender categoriesNKT's employees may choose a gen-der category, which is aligned with their identity or decide not to disclose their gender. As such, NKT operates with four categories; female, male, other, and not disclosed.Total head countThe total number of employees is determined by the head count of all individuals holding an NKT employ-ment contract and remunerated through NKTâs payroll as of the end of the reporting period. This figure includes temporary and permanent employees, as well as those on leave. The data is sourced from the Groupâs HR platform. Employees who have been made redundant or have resigned are counted until the end of their notice period, regardless of whether they have been released from their duties. Accounting policyGender distribution at top management level NKT defines the top management as the third level beneath the supervisory bodies. This group, known as the Extended Leadership Team, consists of the Group Leadership Team as well as all employees at the Vice President level and higher.Employee age distributionThe employee breakdown is based on the head count of all individuals hold-ing an NKT employment contract and remunerated through NKTâs payroll as of the end of the reporting period and divided into three categories based on the birthdate of the employee; Under 30 years old, Between 30 and 50 years old and Over 50 years old.Employees by age group Unit 2025 2024Under 30 years old Head count 1,245 1,095 Between 30 and 50 years old Head count 3,392 3,10 2 Over 50 years old Head count 1,990 1,860 Gender distribution in senior leadership Unit 2025 2024Extended Leadership Team Head count/% 70/100% 72/100%Female Head count/% 13/19% 12/17%Male Head count/% 57/81% 60/83%1Employees by countryUnit 2025 2024Sweden Head count 2,424 2,264 Germany Head count 1,490 1,327 Czech Republic Head count 649 632 Portugal Head count 481 430 Denmark Head count 456 388 Poland Head count 426 443 India Head count 223 173 Lithuania Head count 196 152 United Kingdom Head count 103 88 Netherlands Head count 93 82 Other Head count 86 78 Total Head count 6,627 6,057 1 This table covers information to comply with SBM-1.Employee turnover Unit2025 2024Employees who have left NKT Head count 746 606Employee turnover % 12% 10%Permanent employees Head countwho have left NKT 450 447Permanent employee turnover % 8% 8%Temporary employees who have left NKT Head count 296 159Temporary employee turnover % 75% 37% Accounting policyFor related information on NKTâs workforce, refer to the note 2.2: "Staff costs" in the financial statements.Employee distribution by countryThe employee breakdown is based on the total head count at the end of the reporting period. The countries where NKT has at least 10% of its total workforce, exceeding 50 employees, are disclosed separately. The remain-ing NKT employees are consolidated under the category âOtherâ. The geo-graphical assignment of NKT employ-ees is determined by their contractual affiliations. Employee turnoverThe employee turnover rate is calcu-lated using the average number of employees to account for fluctuations in head count. To accurately reflect NKTâs turnover rate, three distinct fig-ures are reported for each data point: One covering all employees, one for permanent employees and one for temporary employees. This distinction is necessary due to the inherently higher turnover rate among temporary employees. The turnover rate includes all employ-ees leaving NKT during the reporting period and is calculated by dividing the total number of terminated perma-nent or temporary employees by the average number of respectively per-manent and temporary employees.Average number of employeesThe average number of employees is determined by calculating the average head count over the reporting period, based on the head count at the end of each month.RemunerationS1-16The reported gender pay gap shows that female employees are paid 3% more than their male col-leagues. This pay gap reflects an unadjusted calculation across the entire employee population, with-out segmentation by job category, seniority, or employment type. As NKTâs workforce includes a signifi-cant proportion of male employees in blue-collar roles, which typically have lower remuneration compared to white-collar positions, the result-ing metric may be influenced by workforce composition rather than indicating a systemic pay disparity. Accordingly, the disclosed figure should be interpreted in light of these structural factors and does not necessarily represent a trend or policy-driven imbalance within the organisation. To enhance trans-parency and comparability, NKT is implementing policies, frameworks and processes that will contribute to addressing any identified gender pay gaps.Remuneration metric 2025Gender pay gap-3% Accounting policyThe disclosure related to gender pay gap is determined by considering the full remuneration of employees, encompassing all remuneration com-ponents and associated benefits. All remuneration components are available in the Groupâs HR platform. For the purposes of this calculation, on-target amounts for short- and long-term incentive schemes and bonuses are included as estimated amounts, as actual outcomes are subject to variables not fully ascertainable at the reporting date. The calculation utilises estimated annual total remuneration as at the end of the reporting period. The employee population is defined as all individuals with an active NKT employment contract who are remu-nerated via NKTâs payroll at the end of the reporting period. Gender pay gapThe gender pay gap is calculated as the difference between the average gross hourly pay of male employees and the average gross hourly pay of female employees, expressed as a percentage of the average gross hourly pay of male employeesIncidents and complaintsS1-17In 2025, complaints related to social topics filed through NKT's grievance mechanisms increased from 19 in 2024 to 46 in 2025. This may reflect several factors such as the impact of internal training and awareness activities and increased focus across NKT sites on creating a psychologically safe and secure workplace without harassment and violence.1Unit 20252024ComplaintsNumberComplaints filed through NKT's grievance mechanisms46 19NumberComplaints to National Contact Points for OECD Multinational Enterprises0 0Discrimination and harassmentIncidents of discrimination (including harassment) Number 42 5Human rights Issues and complaints filed through NKT's grievance mechanisms Number 0 0Severe issues and complaints filed through NKT's grievance mechanisms Number 0 0Issues and complaints to National Contact Points for OECD Multinational Enterprises Number 0 0Severe issues and complaints to National Contact Points for OECD Multinational Enterprises Number 0 0Fines, penalties, and compensationTotal amount of fines and penalties and total amount of compensation for damages EURm 0 0Total amount of fines, penalties, and compensation for severe human rights issues and incidents EURm 0 0 Accounting policyNKTâs 2025 disclosure now also accounts for complaints reported to local HR departments, offering more comprehensive coverage. As a result, differences from 2024 data may be due to this broader scope rather than actual changes in trends.Number of complaintsThe number of complaints filed through grievance mechanisms or the National Contact Points for OECD Multinational Enterprises (NCPs for OECH Multina-tional Enterprises) is derived from the Whistleblower Hotline and the NCPs for OECH Multinational Enterprises. The scope has been expanded to include complaints reported to local HR departments. These complaints are managed locally and subse-quently reported into the Group for consolidation, ultimately resulting in the presentation of one consolidated figure based on the complaints from both the Whistleblower Hotline and local HR. The number of complaints encom-passes complaints related to social topics such as working conditions and equal treatment, but excludes incidents of discrimination, including harassment which are reported separately.Number of incidentsThe number of discrimination and severe human rights incidents affect-ing NKT employees is based on reports from the Whistleblower Hot-line. The scope has been expanded to include incidents reported to local HR departments. All reported cases are consolidated into a single figure.NKTâs Corporate Affairs monitors any complaints filed with NCPs for OECD Multinational Enterprises, along with any incident from the Whistleblower Hotline.FinesThe total amount of fines, penalties, and compensation paid for damages related to incidents of discrimination, including harassment and complaints and severe human rights abuses/breaches filed during the reporting period. Compensation for damagesThe total amount of compensation paid for damages related to incidents of discrimination, including harass-ment and complaints filed during the reporting period.Targets S1-5Health and safetyRate of work-related accidents Rate of work-related accidents (RWA) of 2.50 in 20305.455.655.95 5.45 2.502022 2024 2025 2030 baselinetargetThe RWA target covers NKTâs employees and non-employees, excluding contractors. In 2025, the time horizon has been extended to 2030 (previously 2028) to align with the Charging Forward strategy, and the ambition level has been increased accord-ingly. The target was developed by Group H&S in collaboration with GLT, with workforce representa-tion provided through the HSE Managers in the HSE Council. The target is designed to drive continuous improvement in safety performance and employees play a vital role in implementing safety measures and tracking performance to achieve the target. RWA progress is monitored monthly, with overall target progress reviewed annually.NKTâs people: Health and safetyHealth and safety is a fundamental priority for NKT, reflecting the companyâs commitment to protecting its workforce across cable manufacturing and installation activities. NKTâs approachS1-1, S1-4, S1-5NKTâs approach to health and safety is guided by one of the companyâs four beliefs, We Care, which underpins a culture of shared responsibility and mutual support. This principle reflects a genuine commitment to fostering an environ-ment where individuals look out for one another and where safety initi-atives go beyond compliance, pri-oritising the wellbeing of its employ-ees, contractors, and visitors. This value-driven approach ensures that safety is embedded in every aspect of operations, reinforcing a shared responsibility to create a workplace where everyone can return home safe and healthy each day.NKTâs commitment to H&S is out-lined in the IMS Policy: IMS PolicyNKTâs approach to H&S is based on three pillars: Behavioural safety, Safety improvement plans, and global standards targeting harmo-nised processes and systems. Actions and progress are monitored through a formalised structure involving the Health, Safety and Environment (HSE) Council and the GLT. The HSE Council consists of HSE Managers from all production facilities and group functions. The HSE Managers represent work councils and local site management at the companyâs production sites. The Council plays a key role in iden-tifying actions to mitigate risks and monitoring progress on H&S across NKT. Implementation of actions and policies rests with local manage-ment at each production site.NKTâs H&S workplace management system covers the entire workforce, with 75% of production sites certi-fied to ISO-45001 in 2025.Key actionsS1-4 NKT will continue to prioritise a healthy and safe workplace for all employees. While NKT has seen progress during 2025, the com-pany is still not where it aims to be regarding safety incidents and remains committed to improving the safety culture. This commitment is demonstrated by some of the activ-ities recently carried out under each of the three H&S pillars: îâ Behavioural safety SafeStart reached full rollout across all NKT sites in 2025, embedding a common safety mindset through workshops, online training, and daily âRate your stateâ interac-tions between managers and employees. SafeStart targets behavioural safety, as human factors are often the main con-tributing factor to the companyâs recorded incidents and acci-dents.îâ Safety improvement plans All production sites developed safety improvement plans in 2025 and are currently implementing the identified actions. The safety improvement plas are outlining and targeting key actions to be carried out at each of NKTâs pro-duction sites. In 2025, selected sites with high H&S risks were selected for in-depth assessments with external consultants, further identifying targeted actions and now being executed under the Safety Maturity Roadmap.îâ Global standards Where rel-evant, NKT works with global standards. In 2025, the company launced a number of global standards for high-risk activities within operations, ensuring a harmonised approach across all business lines.PerformanceHealth and safety metrics S1-14In 2025, NKT recorded a moderate improvement toward RWA target, reaching 5.45 compared to 5.95 in 2024. For the companyâs own employees, the RWA increased, moving from 5.24 in 2024 to 5.61 in 2025.Unit 2025 2024Employees covered by health %and safety management system100% 100%NumberFatalities among NKT's employees 0 0Fatalities of other workers working on NKT's sites Number 0 0Recordable work-related accidents Number 62 52Days lost Number 1,269 979RWA for NKT's employees Accidents per million work hours 5.62 5.24RWA for NKT's Group target Accidents per million work hours 5.45 5.95 Accounting policyCoverage of health and safety management systemThe coverage of NKTâs health and safety management system is calcu-lated by dividing the total head count of employees covered by NKT's health and safety management system by the head count of employees in NKT.FatalitiesFatalities are the number of NKT's employees and other workers working on NKT's sites who lost their lives as a result of a work-related incident or work-related ill health. Fatalities are included in the rate of recordable accidents.Recordable work-related incidentsThe total recordable work-related incidents include any incidents which resulted in medical treatment, reduced work, lost time, or fatalities as reported in NKT's incident manage-ment system. Rate of recordable work-related accidentsThe calculation of the RWA for own workforce is based on number of work hours derived partly from payroll information and partly from estimates using the contractual hours. The RWA is calculated by dividing the number of recordable accidents for NKTâs workforce multiplied by 1,000,000 by the total number of hours worked by NKTâs workforce.The RWA for NKT's group target is calculated using the methodology described above, including accidents and hours worked by non-employees.Lost daysThe number of days lost to work-re-lated injuries are the total number of calendar days of absence due to work-related injuries and fatalities from work-related accidents in NKTâs own workforce, including the first and last full day of absence. The number of days lost due to fatali-ties will be assessed individually, con-sidering the circumstances leading up to each fatality. Negative impact Positive impact Engaging suppliers on social aspects Financial risk SBM-3 Financial oppor tunityUpstream Own operations Downstream Health and safety for workers Indigenous peoplein the supply chain Community rights Workers in the value chainAffected communities Health and safety Impact on health and safety of value chain workers Community rightsCommunities affected by mining activities for workers in the Workers in NKT's value chain face significant health and safety risks in the mining, smelting, Mining affects communities by reducing water availability, displacing people, and causing land supply chainand refining of metals.impacts.Actual negative impact. Time horizon: all.Actual negative impact. Time horizon: all. Indigenous peopleRights of indigenous people Mining activities in indigenous regions cause environmental conflicts with local communities.Actual negative impact. Time horizon: all. To read more about the material sustainability matters, see: DMA results on page 63.Engaging suppliers on social aspectsS2, S3 (summarised version as per BP-2.17)NKT recognises the complexities within its supply chain, particularly regarding the procurement of materials often sourced from countries where social issues, such as human rights, are under pressure. This creates a risk of NKT potentially being complicit in human rights violations. The company acknowledges the need to address and manage these risks to support a just transition to net zero.NKTâs upstream value chain includes both mining and heavy industrial processes before materials reach its production facilities. These activities pose inherent risks to the health and safety of workers throughout the value chain.NKTâs approachNKT manages impacts from upstream business partners through supplier engagement and due diligence. This is fundamental to producing cable systems that support a just electrification. These impacts are addressed through the companyâs due dili-gence framework. Expectations for suppliers to mitigate social risks are communicated via the NKT Procurement Sustainability Policy, the NKT Human Rights Policy, and the NKT Supplier Code of Conduct. These policies cover compliance with relevant legislation, human rights, fundamental labour rights, and the rights of indigenous com-munities.During 2025, NKT entered into an international responsible business agreement with the Social and Eco-nomic Council of the Netherlands to advance International Responsible Business Conduct (IRBC). Through its participation, NKT reinforces its commitment to addressing human rights and environmental impacts across the value chain. Further actions undertaken in 2025 target-ing NKTâs engagement with suppli-ers on social impact can be found in the section on supplier manage-ment. For more information: Supplier management Human Rights Policy Procurement Sustainabiliy PolicyNKT has not established specific targets or metrics to track the pro-gress on these impacts as they are an integrated part of the company due diligence process. While NKT acknowledges the importance of the material topics, the effective-ness of the existing due diligence policies and processes is monitored through ongoing activities within the existing process.Governance information Negative impact Positive impact Business conduct Financial risk SBM-3 Financial oppor tunityUpstream Own operations Downstream Supplier corruption and bribery Ethical business conduct Business conduct Ethical business Potential corruption and bribery conductNKT operates across diverse legal and regulatory landscapes, creating a complex compli-ance environment, particularly regarding anti-corruption laws. Non-compliant activities, such as corruption or bribery incidents, constitute a financial risk to NKTâs continued operations.Time horizon: all. Supplier corruption Supplier management, including corruption and bribery A significant proportion of NKTâs suppliers are based in Europe, which reduces the inherent risk of corruption and bribery. However, NKT also procures input materials and engages in business relationships across diverse geographies and sectors, some of which are located in regions with a considerable risk of corruption.Time horizon: all. To read more about the material sustainability matters, see: DMA results on page 63.Ethical business conductAt NKT, ethical business is fundamental to how operations are conducted and how stakeholders are engaged. A strong commitment to integrity, transparency and accountability applies across all aspects of the company's activities. This approach is anchored in international standards and regulations and reflects NKTâs responsibility to uphold trust in the markets that it serves.NKTâs approachG1-1, G1-3, G1-4NKTâs governance framework ensures that ethical conduct is embedded in decision-making and daily operations. The NKT Compli-ance Programme covers adherence to policies, regulatory require-ments, and best practices, and is supported by internal compliance reviews conducted during the year. NKTâs Code of Conduct remains the cornerstone of the companyâs ethical standards. It sets clear expectations for employees and business partners regarding integ-rity, responsible business practices, and compliance with applicable laws and regulations. The Code is complemented by targeted policies and training initiatives to ensure understanding and application across the company. In 2025, NKT introduced a new Anti-Bribery and Anti-Corruption Policy, strengthening its zero-tol-erance approach to bribery and corruption. The policy focuses on high anti-corruption risks, clarifies roles and responsibilities across the organisation, and strengthens con-trols around interactions with public officials and third-party engage-ments.NKT maintains a proactive stance against corruption through:Due diligence proceduresîâ All relevant business partners are screened for compliance risks, including bribery, corruption, and sanctions.îâ Enhanced due diligence on agents and distributors and other high-risk business partners.îâ Ongoing monitoring of medium and high-risk business parties.Written policies and guidelinesîâ The Code of Conduct defines zero tolerance on bribery and corrupt practices.îâ The Anti-Corruption and Anti-Bribery Policy includes definitions and real-life examples to support employeesâ under-standing.Training and awarenessîâ All white-collar employees undergo mandatory onboarding of the Code of Conduct e-learn-ing and an annual recertification thereafter.îâ Employees in high-risk functions such as Sales, Procurement, and Senior Management, receive additional online and/or in per-son scenario-based training on anti-bribery and anti-corruption measures.îâ The Code of Conduct and all other compliance policies and guidelines are published on the companyâs intranet where they are easily accessible to employ-ees and regular awareness cam-paigns are undertaken during the year.Internal controlsîâ Segregation of duties and approval workflows to control transactions and reduce the risk of corruption and fraud.îâ Reporting of gifts and entertain-ment to/from public officials.îâ Regular spot checks to monitor compliance with screening and reporting requirements.NKTâs commitment and approach to corruption and anti-bribery is outlined in the Anti-Bribery and Anti-Corruption Policy. Anti-Bribery and Anti-Corruption PolicyNKT Whistleblower HotlineNKT actively promotes a speak-up culture through dedicated training, awareness initiatives, and an acces-sible Whistleblower Hotline. Aware-ness of the Whistleblower Hotline is monitored through the annual VOICE survey, where rising aware-ness and the increasing number of reports (see page 102) indicate that employees consider the chan-nel effective. The Hotline provides employees and business partners with a secure channel to report concerns anonymously and in mul-tiple languages. Communication about these efforts is integrated into onboarding, the company intranet, and supplier agreements. Together, they form part of the Anti-Corrup-tion and Anti-Bribery Policy and the Code of Conduct, and cover all matters, sustainability related or not, that may give rise to concerns among the company's employees or business partners. When a whistleblower concern is received, or if a bribery/corruption concern is received outside of the Whistleblower Hotline, investigations are conducted by the Compliance Function, and where necessary, relevant internal or external stake-holders are engaged to ensure impartiality. The outcome of inves-tigations and corrective actions are presented to the Compliance Board and the Audit Committee of the Board of Directors, duly anonymised. NKT regularly reviews its procedures to ensure continuous improvement and alignment with best practices. NKT has a strict non-retaliation policy, ensuring no individual faces retaliation for raising concerns or reporting misconduct in good faith. Retaliation includes adverse actions such as termination, demotion, disciplinary sanctions, changes in assignments, wages, working hours, negative performance evalu-ations, or public badmouthing. Accounting policyTraining percentageThe number of employees in func-tions-at-risk and the number of valid certificates related to the Code of Conduct training were derived from the NKT Learning Portal.Key actionsDuring 2025, NKT implemented the following actions to strengthen its performance around corruption and ethical business conduct:îâ Introduced the new Anti-Bribery and Anti-Corruption Policy.îâ Conducted internal compliance reviews to assess adherence to the Compliance Programme.îâ Conducted tailored training on ethical conduct and anti-corrup-tion to employees in high-risk functions and jurisdictions.TargetNKT has not established a target for business conduct, as responsible behaviour is an ongoing part of the companyâs governance and com-pliance processes. Effectiveness is monitored through established metrics, such as Code of Conduct training completion rates and other compliance indicators, which are tracked on an ongoing basis to ensure high levels of awareness and adherence across the workforce. As these activities are continuous and not linked to a defined base year, no time-bound target has been set.Performance dataIn 2025, NKT migrated its learning management system, which lead to a decrease in the training coverage percentage of its functions-at-risk. NKT furthermore maintained 0 convictions for violation of anti-corruption and anti-bribery laws.At-risk functionsCode of Conduct trainingG1-32025 2024Training coverageTotal no. of employees 3,131 2,958Total receiving training 2,614 2,703Training coverage percentage 83% 91%FrequencyHow often training is required Annually AnnuallyCorruption and bribery metricsG1-4 Unit 2025 2024Number of convictions for violation of anti-corruption and anti-bribery laws 0 0Amount of fines for violation of anti-corruption and anti-bribery laws EURm 0 0The coverage of the Code of Conduct training is calculated by dividing the valid certificates as of the last day of the reporting period by the total num-ber of employees in functions-at-risk, which is defined as all white-collar employees at NKT. Number of convictions and finesInformation regarding convictions and fines related to violations of anti-corruption and anti-bribery laws is supplied by NKTâs Compliance department.Supplier managementNKT is committed to ensuring responsible business practices throughout its supply chain by implementing robust supplier due diligence processes. This approach helps the company identify, assess, and mitigate environmental, social, and governance risks, fostering transparency and sustainable partnerships.NKTâs approach G1-2, G1-4At NKT, responsible sourcing is a fundamental pillar of the companyâs procurement strategy and sustain-ability agenda. NKT is committed to upholding the highest standards of ethical conduct by actively inte-grating social, environmental, and human rights considerations into its operations and supply chains.NKTâs commitments and approach to the company's supplier is out-lined in the Procurement Sustaina-bility Policy: Procurement Sustainability PolicySupplier due diligenceNKT's approach to sustainability due diligence follows the OECD Six-Step Framework for Respon-sible Business Conduct, ensuring that its procurement decisions are informed, transparent, and aligned with international best practices. NKT operationalises this approach through the following steps: Step 1: Embedding responsible conduct in policies and systemsNKT embeds sustainability and ethical sourcing principles within the NKT Procurement Sustainability Policy, the NKT Supplier Code of Conduct, and internal procurement processes. The Procurement Lead-ership team acts as first approver for supply chain due diligence activites, while the CEO has overall responsibility.The NKT Supplier Code of Conduct defines the principles and expec-tations the company sets for its suppliers. Specifically, the Supplier Code of Conduct has the follow-ing requirements related to NKT's material IROs:îâ Environmental requirements: Suppliers must manage any neg-ative environmental impacts in line with the mitigation hierarchy and international best practise. This covers specifically require-ments for actions to reduce car-bon emissions, prevent the pol-lution of water and air, to ensure no harm to protected biodiversity areas or irreversible ecosystem damage, as well as responsible management of waste and haz-ardous materials. îâ Social requirements: Suppli-ers must protect human rights, among others by preventing forced and child labour in line with local and international law and ILO Conventions. They must ensure fair wages, freedom of associa-tion, and safeguard workers from discrimination and harassment. Suppliers are required to provide safe working conditions and man-age all occupational health and safety risks according to inter-national best practice and legal requirements. Additionally, they must avoid negative impacts on Indigenous peoples.îâ Govenance requirements: NKT maintains a zero-tolerance policy on corruption and bribery and the Supplier Code of Con-duct upholds strict business integrity by prohibiting bribery, corruption, and extortion. Through adherence to these stand-ards, NKT aims to promote sustain-able development, safeguard the well being of people and the planet, and generate long term value for all stakeholders.NKTâs suppliers undergo due dili-gence and fulfil the requirements in the NKT Procurement Sustainability Policy and the NKT Supplier Code of Conduct before being awarded a contract. Regular trainings are pro-vided to procurement teams on the process and information is shared with suppliers via the supplier portal and meetings.Step 2: Identifying and assessing adverse impactsNKT follows a comprehensive multi-tiered risk assessment that combines:îâ Sanctions risks: Evaluating sup-pliers against global sanctions list using external tools.îâ Reputational and legal risk reviews: Conducting analysis for suppliers in high and medium risk countries against any reputational cases, legal cases, corruption, or ethical risks.îâ Supplier level reviews: Suppliers with high business impact, such as related to raw materials cat-egories, undergo detailed risk assessment through defined methodology and against sus-tainbility risks such as human rights, labour rights, and environ-mental risks.This structured risk assessment enables prioritisation of suppliers and materials that require broader due diligence.NKT takes conscious steps and actions to enhance traceability and transparency in its supply chain through supplier engagement and industry collaborations.Step 3: Preventing and mitigating adverse impactsHigh risk suppliers are required to undergo due diligence process and qualification steps with require-ments related to self-assessments and relevant certifications. Medium risk and low risk suppliers are monitored through relevant assess-ments, through regular meetings on identified risks, and identified miti-gating actions.NKT emphasises partnership and collaboration, and aims to support suppliers in strengthening their sus-tainability performance and reduc-ing their environmental footprint.Step 4: Tracking progress and verificationNKT monitors progress through different sustainability data analyt-ics and internal key performance indicators by consolidating data on suppliers' onboarding, registrations, adherence to Supplier Code of Con-duct, risk assessment results, and qualification process. NKT also reg-ularly monitors the supplier perfor-mance through analysis of self-as-sessments, certifications such as ISOs, due diligence supporting certifications such as Copper Mark, Aluminum Stewardship Initiative (ASI), and corrective actions.This data-driven approach allows NKT to measure real impact and continuously improve its responsible sourcing framework.Step 5: CommunicationNKT shares its due diligence pro-cesses and progress through its Annual Report, customer briefings, and supplier engagement forums.Externally, the company communi-cates its commitment to ethical pro-curement through participation in industry sustainability platforms and partnerships promoting responsible supply chains such as the UNGC.Step 6: RemediationNKT is committed to ensuring its suppliers and supply chain partners have access to grievance and rem-edy. This is part of the NKT Whistle-blower Hotline. Whistleblower HotlineSupplier engagementThe NKT Supplier Engagement Pro-gramme aims to build and maintain strong relationships with strategic suppliers through collaboration and continuous engagements on relevant topics. NKT focuses on working with strategic and high risk suppliers on supply chain risk to achieve production and sustainabil-ity goals. The suppliers with high risk are encouraged to mitigate identified and potential risks in their supply chain by promoting working with globally recognised standards such as Copper Mark. Key actionsîâ NKT launched its Supplier Code of Conduct in 2025, which, going forward will define the principles and expectations it set for its sup-pliers, including zero-tolerance for corruption and bribery, respect for internationally recognised human rights, fair labour prac-tices, and proactive identification and mitigation of environmental risks.îâ NKT strengthened its onboarding process for suppliers across all business lines and categories with more risk reviews related to environment and social sustain-ability, corruption, bribery, sanc-tions, and operational risks. îâ NKT conducted detailed risk assessments in its prioritised cat-egories using specific risk criteria and collaborated with suppliers on mitigation actions, self-as-sessment questionnaires, and certifications.Content indexA list of disclosure requirements complied with in preparing the sustainability statement, based on the outcome of the materiality assessment, can be found in the content index.Disclosure Disclosure Disclosure requirement Description Pagesrequirement Description Pagesrequirement Description PagesGeneral disclosuresClimate changeWater and marine resourcesESRS 2E1E3BP-1 General basis for preparation of sustainability statement 68-69E1-1 Transition plan for climate change mitigation 72-73IRO-1 Description of the processes to identify and assess 64material water and marine resources-related IROsBP-2 Disclosures in relation to specific circumstances 68-69SBM-3 Material IROs and their interaction with strategy and 71business modelE3-1 Policies related to water and marine resources 66GOV-1 The role of the administrative, management, and 46-53supervisory bodiesIRO-1 Description of the processes to identify and assess 64E3-2 Actions and resources related to water and marine 94material climate-related IROsresourcesGOV-2 Information provided to and sustainability matters 46-53addressed by the ASM bodiesE1-2 Policies related to climate change mitigation and 66E3-3 Targets related to water and marine resources 94adaptationGOV-3 Integration of sustainability-related performance in 69incentive schemesE1-3 Actions and resources in relation to climate change 75-78Biodiversity and ecosystemspoliciesGOV-4 Statement on due diligence 67E4E1-4 Targets related to climate change mitigation and 74GOV-5 Risk management and internal controls over sustainability 67adaptationreportingE4 Summarised version as per BP-2 ESRS 2 paragraph 17 94E1-5 Energy consumption and mix 79SBM-1 Strategy, business model, and value chain 61-62 E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions 80-83SBM-2 Interests and views of stakeholders 65Resource use and circular economy179-18 0E5IRO-1 Description of the process to identify and assess material 63-65PollutionSBM-3 Material IROs and their interaction with strategy and 86IROs179-18 0E2business modelIRO-2 Disclosure requirements in ESRS covered by the 175-176IRO-1 Description of the processes to identify and assess 64undertakingâs sustainability statementSBM-3 Material IROs and their interaction with strategy and 86business model93material resource use and circular economy-related IROsIRO-1 Description of the processes to identify and assess 64E5-1 Policies related to resource use and circular economy 66material pollution-related IROsE5-2 Actions and resources related to resource use and 87-89E2-1 Policies related to pollution 66circular economyE2-2 Actions and resources related to pollution 87, 89 E5-3 Targets related to resource use and circular economy 8994E5-4 Resource inflows 90E2-3 Targets related to pollution 89E5-5 Resource outflows 90-9194E2-5 Substances of very high concern 92Disclosure Disclosure requirement Description Pagesrequirement Description PagesOwn workforceWorkers in the value chainS1S2SBM-2 Interests and views of stakeholders 65S2 Summarised version as per BP-2 ESRS 2 paragraph 17 105SBM-3 Material IROs and their interaction with strategy and 96business modelAffected communitiesS1-1 Policies related to own workforce 66S3S1-2 Processes for engaging with own workforce and workersâ 97S3 Summarised version as per BP-2 ESRS 2 paragraph 17 105representatives about impactsS1-3 Processes to remediate negative impacts and channels 97for own workforce to raise concernsBusiness ethicsS1-4 Taking action on material impacts, and approaches 97, 98, G1to managing material risks and pursuing material 99, 103opportunities, and effectiveness of those actionsGOV-1 The role of the administrative, supervisory and 69management bodiesS1-5 Targets related to managing material negative impacts, 99advancing positive impacts, and managing material risks IRO-1 Description of the processes to identify and assess 64and opportunitiesmaterial IROsS1-6 Characteristics of the undertakingâs employees 97, 100, G1-1 Business conduct policies and corporate culture 66101G1-2 Management of relationships with suppliers 111-112S1-9 Diversity metrics 100-101G1-3 Prevention and detection of corruption and bribery 109-110S1-14 Health and safety metrics 104G1-4 Incidents of corruption and bribery 110, 111S1-16 Remuneration metrics 101S1-17 Incidents, complaints, and severe human rights impacts 102Data points deriving from other EU legislationIRO-2 This section outlines a table of all the datapoints that derive from other EU legislation as listed in Appendix B in ESRS 2.SFDR Pillar 3 Benchmark regulation EU Climate Law Disclosure requirement and related datapoint(23) reference(24) reference(25) reference(26) referenceESRS 2 GOV-1 Board's gender diversity paragraph 21 (d) Page 52 Page 52ESRS 2 GOV-1 Percentage of board members who are independent paragraph 21 (e) Page 52ESRS 2 GOV-4 Statement on due diligence paragraph 30 Page 67ESRS 2 SBM-1 Involvement in activities related to fossil fuel activities paragraph 40 (d) i Not material Not material Not materialESRS 2 SBM-1 Involvement in activities related to chemical production paragraph 40 (d) ii Not material Not materialESRS 2 SBM-1 Involvement in activities related to controversial weapons paragraph 40 (d) iii Not material Not materialESRS 2 SBM-1 Involvement in activities related to cultivation and production of tobacco paragraph 40 (d) iv Not materialESRS E1-1 Transition plan to reach climate neutrality by 2050 paragraph 14 Page 72-83ESRS E1-1 Undertakings excluded from Paris-aligned Benchmarks paragraph 16 (g) Page 72-83 Page 72-83ESRS E1-4 GHG emission reduction targets paragraph 34 Pa ge 74 Pag e 74 Page 74ESRS E1-5 Energy consumption from fossil sources disaggregated by sources (only high climate impact sectors) paragraph 38 Page 79ESRS E1-5 Energy consumption and mix paragraph 37 Page 79ESRS E1-5 Energy intensity associated with activities in high climate impact sectors paragraphs 40 to 43 Page 79ESRS E1-6 Gross Scope 1, 2, 3 and Total GHG emissions paragraph 44 Page 81 Page 81 Page 81ESRS E1-6 Gross GHG emissions intensity paragraphs 53 to 55 Page 81 Page 81 Page 81ESRS E1-7 GHG removals and carbon credits paragraph 56 Not materialESRS E1-9 Exposure of the benchmark portfolio to climate-related physical risks paragraph 66 Material (phase-in)ESRS E1-9 Disaggregation of monetary amounts by acute and chronic physical risk paragraph 66 (a) Material (phase-in)ESRS E1-9 Location of significant assets at material physical risk paragraph 66 (c). Material (phase-in)ESRS E1-9 Breakdown of the carrying value of its real estate assets by energy-efficiency classes paragraph 67 (c). Material (phase-in)ESRS E1-9 Degree of exposure of the portfolio to climate- related opportunities paragraph 69 Material (phase-in)ESRS E2-4 Amount of each pollutant listed in Annex II of the E-PRTR Regulation (European Pollutant Release and Transfer Register) emitted to air, water and soil, paragraph 28 Not materialESRS E3-1 Water and marine resources paragraph 9 Page 94ESRS E3-1 Dedicated policy paragraph 13 Not materialESRS E3-1 Sustainable oceans and seas paragraph 14 Not materialESRS E3-4 Total water recycled and reused paragraph 28 (c) Not materialESRS E3-4 Total water consumption in m3 per net revenue on own operations paragraph 29 Not materialESRS E4 Summarised version as per BP-2 ESRS 2 paragraph 17ESRS E5-5 Non-recycled waste paragraph 37 (d) Not materialSFDR Pillar 3 Benchmark regulation EU Climate Law Disclosure requirement and related datapointâ continued(23) reference(24) reference(25) reference(26) referenceESRS E5-5 Hazardous waste and radioactive waste paragraph 39 Not materialESRS 2- SBM3 - S1 Risk of incidents of forced labour paragraph 14 (f) Not materialESRS 2- SBM3 - S1 Risk of incidents of child labour paragraph 14 (g) Not materialESRS S1-1 Human Rights Policy commitments paragraph 20 Page 98ESRS S1-1 Due diligence policies on issues addressed by the fundamental International Labor Organisation Conventions 1 to 8, paragraph 21 Page 98ESRS S1-1 processes and measures for preventing trafficking in human beings paragraph 22 Page 98ESRS S1-1 workplace accident prevention policy or management system paragraph 23 Page 103ESRS S1-3 grievance/complaints handling mechanisms paragraph 32 (c) Page 97ESRS S1-14 Number of fatalities and number and rate of work-related accidents paragraph 88 (b) and (c) Page 103 Page 103ESRS S1-14 Number of days lost to injuries, accidents, fatalities or illness paragraph 88 (e) Page 103ESRS S1-16 Unadjusted gender pay gap paragraph 97 (a) Page 101 Page 101ESRS S1-16 Excessive CEO pay ratio paragraph 97 (b) Remuneration ReportESRS S1-17 Incidents of discrimination paragraph 103 (a) Page 102ESRS S1-17 Non-respect of UNGPs on Business and Human Rights and OECD paragraph 104 (a) Page 102 Page 102ESRS 2- SBM3 â S2 Significant risk of child labour or forced labour in the value chain paragraph 11 (b) Page 97ESRS S2 Summarised version as per BP-2 ESRS 2 paragraph 17ESRS S3 Summarised version as per BP-2 ESRS 2 paragraph 17ESRS S4 Summarised version as per BP-2 ESRS 2 paragraph 17 Not materialESRS G1-1 United Nations Convention against Corruption paragraph 10 (b) Not materialESRS G1-1 Protection of whistleblowers paragraph 10 (d) Page 109ESRS G1-4 Fines for violation of anti-corruption and anti-bribery laws paragraph 24 (a) Pag e 110 Pag e 110ESRS G1-4 Standards of anti- corruption and anti- bribery paragraph 24 (b) Pa ge 110Double Materiality Assessment methodologyIRO-1, IRO-2, SBM-2NKT conducted its first ESRS-aligned Double Materiality Assess-ment (DMA) in 2024 to understand the impacts, risks, and opportuni-ties associated with its business. This assessment followed a struc-tured approach, aligning with the European Financial Reporting Advi-sory Group (EFRAG) guidelines and the ESRS. NKTâs methodology for DMA follows six steps, outlined below:1. Defining context and scopeNKT initiates the DMA process by establishing the context and scope. This foundational step involves mapping activities, products, ser-vices, and locations, and describing how these elements are intercon-nected within the business model. A comprehensive value chain map-ping, including a spend analysis, is conducted to prioritise key suppliers and materials. Suppliers are catego-rised based on economic relevance and potential impact, enabling the identification of high-risk materials such as copper, aluminium, steel, lead, XLPE, and PVC. This analysis informs the mapping of upstream value chains, focusing on key com-modities, while the downstream value chain analysis targets key markets and customer segments. For more information, see: Value chain2. Identifying IROsThe second step of the DMA involves identifying the Impacts Risks and Opportunities (IROs). Following EFRAG recommendations and guidelines of, the list of sus-tainability matters in ESRS 1 AR16 serves as foundation for covering ESG sustainability matters. The sus-tainability matters on the list were screened using an evaluation matrix where the key screening criteria are: îâ Type of IROîâ Location in the value chain (upstream, own operations, or downstream)The screening is informed by pre-vious DMAs, desktop research, databases, reports, and stakeholder input.3. Assessing IROsIn the third step, potential and actual negative and positive impactsâas well as financial risks and oppor-tunities over various time hori-zonsâare assessed and scored. Scoring follows EFRAG guidance and excludes mitigation actions, as recommended.Impact severity is evaluated based on scale, scope, and irremediability (for negative impacts), while like-lihood is considered for potential impacts. For potential negative human rights impacts, severity takes precedence over likelihood. NKTâs human rights and climate risks assessments are used as inputs, reflecting the findings of the newest edition of these assess-ments. Financial risks and opportunities are scored based on magnitude and like-lihood, with financial effects quantified through integration with the Enter-prise Risk Management (ERM) model. Scoring is partially aligned with ERM.All characteristics are scored, creating a possible scale of 0 to 25, incorporating likelihood where applicable.4. Calibrating with internal stakeholdersScoring of IROs is calibrated and validated through internal work-shops or through meetings with the relevant internal subject mat-ter experts. IROs are prioritised based on relevance and impact. The calibration of topics includes discussions on dependencies and how to account for them during the assessment.5. Determining materialityMateriality is determined using a threshold set at 50% of the possi-ble scale (12.5 out of 25) for both impact and financial materiality. The materiality threshold reflects two key aspects: transparency and uncertainty. NKT aims to provide stakeholders with clear insights into its impacts, risks, and opportunities, ensuring that the threshold does not obscure transparency. Given the significant uncertainty associated with these assessments, the thresh-old is set to avoid deeming a topic material without sufficient knowl-edge. This balanced approach is established through collaboration with the assessment team, partici-pants in calibration workshops, and senior management, and is con-firmed through various stakeholder engagement discussions. Disclosure requirements and data points are defined based on mate-rial matters at a sub-sub-topic level. Then, the materiality of information to define the scope of reporting is applied on metrics, establishing if a disclosure requirement is mate-rial information to the users of the sustainability reporting. Data points with transitional options are used. All significant information to meet users' decision-making needs is included for reporting.Endorsement by board and managementThe results of the DMA are pre-sented to senior management for final validation and to the BoD for endorsement. The reporting phase ensures transparency and accuracy in addressing significant sustainabil-ity matters across NKT's operations and value chain.DMA outcomes inform updates to the business strategy and guide supporting initiatives. The DMA is reviewed and updated annually.Stakeholder involvement in the DMAStakeholder engagement forms an integral part of NKTâs Double Materiality Assessment (DMA). To ensure relevance, accuracy, and robustness, the assessment pro-cess includes structured dialogues and consultations with suppliers, customers, and non-governmental organisations.These engagements serve to vali-date and refine the understanding of impacts, risks, and opportunities across the value chain. The initial hypotheses on IROs are derived from the above-mentioned desktop research. Insights gathered through stakeholder input complement the internal analysis and desktop research, enabling the incorpora-tion of context-specific details and enhancing the credibility of findings.The information from stakeholder engagement, is furthermore cross-verified against the initial research to ensure accuracy.The engagement process also sup-ports the prioritisation of material topics, ensuring that the assess-ment reflects both upstream and downstream realities. By integrating diverse perspectives, the DMA process reinforces transparency and contributes to informed deci-sion-making within the broader sus-tainability strategy.The Board is informed about stake-holder engagement in the DMA process annually.Stakeholders engagedEngaging in dialogues with external stakeholders is crucial for NKT. These dialogues ensure that NKT remains transparent and responsive to the concerns of its suppliers, customers, and affected stakehold-ers. Suppliers: Suppliers are engaged to identify potential and actual IROs in the upstream value chain, par-ticularly in relation to key materials. Interviews across material supply chains provide data that comple-ments desktop research, including perspectives on working conditions and social impacts.Customers: Customers contribute input on potential and actual IROs in the downstream value chain. Engagement spans all business lines and key customer segments, supporting a balanced view of mar-ket-facing sustainability matters.Affected stakeholders: NKT rec-ognises the importance of engaging with affected stakeholders such as affected communities and work-ers in the value chain, especially regarding human rights. To do so, NKT incorporates input from third-party organisations with expertise in human rights and multi-stakeholder structures. Organisations such as the Initiative for Responsible Min-ing Assurance (IRMA), the Copper Mark, and the Danish Human Rights Institute are consulted to provide representative insights into the per-spectives of affected communities and stakeholders.Employees: Employees participates in internal workshops designed to calibrate and validate the assess-ment of IROs. These sessions ensure that internal perspectives are reflected in the prioritisation of material topics. Employees with specific subject matter expertise are furthermore included on an ongoing basis to ensure correct understanding and assessment of specific IROs.</mrv:SustainabilityReport>
<mrv:StatementOfTheDiversityPolicies contextRef="ctx-1" id="f1__s10__7__13" xml:lang="en">Diversity and inclusion NKTâs diversity policy is designed to foster an inclusive organisation, ensure fair recruitment processes, and embed diversity and inclusion throughout the employee life cycle. The policy targets NKTâs entire workforce and is supported by initiatives such as leadership commitment, a D&I champions council, integration of diversity in people processes, and employee engagement campaigns. During the reporting period, referrals through the âRefer a Womanâ cam-paign grew and the D&I index score remained stable at 77% reflecting employeesâ consistently positive perceptions of NKTâs commitment to diversity, inclusion, and belonging. Female representation among new hires remained at 28%, in line with 2024, placing NKT well on track to fulfilling the 2030 target of 30%. Rep-resentation of the underrepresented gender in senior leadership is only marginally better than the baseline year at 18%. Achieving the 2030 tar-get of 30% will therefore require sus-tained focus and continued action. NKT reports on these efforts in accordance with section 107d of the Danish Financial Statements Act.</mrv:StatementOfTheDiversityPolicies>
<mrv:StatementOfPolicyForDataEthics contextRef="ctx-1" id="f1__s10__7__12" xml:lang="en">NKT and data ethicsNKT respects and manages all data from employees, customers, and stakeholders in full compliance with applicable laws and high ethical standards. The companyâs data ethics policy, introduced in 2021, embeds responsible data handling into its operations. It focuses on integrating data ethics across pro-cesses, developing data-driven practices responsibly, and strength-ening data privacy measures as part of NKTâs broader data protection programme.During the year, NKT enhanced GDPR compliance processes, updated its internal data privacy framework and e-learning modules, introduced additional templates and guidelines, and delivered targeted training to employees in high-risk roles. Looking ahead, the company will continue implementing its data ethics and protection policies, and will embed the next group of requirements of the AI Act into its processes. NKT reports on these efforts in accordance with section 99d of the Danish Financial State-ments Act.</mrv:StatementOfPolicyForDataEthics>
<mrv:DisclosureOfMaterialImpactsRisksAndOpportunitiesAndHowTheyInteractWithStrategyAndBusinessModelExplanatory contextRef="ctx-1" id="f1__s10__7__15-1" xml:lang="en">Double Materiality AssessmentIRO-1, GOV-2 In 2025, NKT updated its Double Materiality Assessment (DMA), identifying new material sustainability matters that closely align with and reinforce NKTâs strategic direction within sustainability.NKT's updated DMA reflects continuous developments within sustainability, evolving stakeholder expectations, and emerging industry practices. The update reaffirms the overall material sustainability matters identified in the 2024 DMA. For some of these matters, the focus has been adjusted to enable a more targeted approach to manag-ing sustainability impacts, risks, and opportunities (IROs) across the value chain.The scope of the DMA is defined by segmenting upstream suppliers by economic relevance and potential impact to identify high risk materials (copper, aluminium, steel, lead, XLPE, PVC) and to map key supply chains. Downstream, the DMA targets key markets and customer segments. The scope of the downstream IROs, are closely linked to NKTâs role in the energy value chain: NKT designs, builds, and installs power and distribution cable systems. Each IRO is scored 0â25, applying severity (scale, scope, irremediability where appli-cable) and likelihood for potential impacts; and financial magnitude and likelihood for financial risks and opportunities. Materiality is set at â¥50% (12.5/25) for both impact and financial materiality and IROs meeting or exceeding this threshold are material.To read more: NKTâs DMA methodologyNKTâs approach across the value chainSome material sustainability matters are primarily linked to NKTâs opera-tions and its products, while others relate to the materials and compo-nents the company procures.For matters connected to NKTâs operations and products, such as climate change, circular design, material health, diversity, and safety the company focuses on internal processes, employee engagement, and operational improvements to reduce impacts and strengthen per-formance. Conversely, topics tied to the supply chain such as circularity, climate impact of raw materials, and respon-sible business conduct require collaboration with suppliers and partners. Here, NKT drives progress through procurement practices, supplier engagement programmes, and industry partnerships.The following overview of material IROs reflects this differentiated man-agement approach. It also presents the structure of the remaining sus-tainability statement.2025 DMA: Scope and resultsIRO-1, SBM-3The 2025 update reassessed selected sustainability topics. The topics were selected based on the evolving industry practices after the first wave of CSRD-compliant reports, and new internal and exter-nal stakeholder expectations. The reassessment followed the overall DMA methodology, specif-ically step 2, 3, 5, and 6, see page 179 and included input and calibra-tion of the scoring with NKT subject matter experts. The 2025 DMA was endorsed by the ESG Committee and the BoD. Key resultsIn 2025, the material IROs correlate with the 2024 results on an overall level, but with adjustments to the focus of selected IROs. From 2025, the material IROs for NKTâs own operations therefore also include: îâ Environment: Waste and sub-stances of very high concern (SVHC).îâ Social: Diversity, equality, and non-harassment.îâ Governance: Corruption and briber y.As in 2024, ESRS S4, Consumers and End-users is non-material to NKT.ScopeNKT did not conduct a separate screening of assets and activities or apply special criteria when assessing IROs relating to pollution, resource use and circular economy, water and marine resources, and business conduct. The company did not carry out direct consulta-tions with affected communities. For climate change, the severity of impact was determined using GHG emissions across scopes; NKTâs own energy consumption; available value chain energy data (e.g., LCAs, sector decarbonisation approaches for key commodities); and other desktop research sources (e.g., MSCI, SASB, supplier/peer/cus-tomer corporate reports, research publications). For climate-related risks, NKT performed a climate risk assessment covering physical and transition risks and opportunities. To read more: NKT and climate riskStakeholder engagementSBM-2, IRO-1Stakeholder engagement forms an integral part of NKTâs DMA and its management of IROs. To ensure relevance, accuracy, and robust-ness, the DMA process includes structured dialogues and consulta-tions with suppliers, customers, and other organisations.These engagements serve to vali-date and refine the understanding of IROs across the value chain and to prioritise material topics. The Board of Directors is annually informed about stakeholder engagement in the DMA process.In addition to the stakeholder engagement during the DMA pro-cess, NKT maintains an ongoing dialogue with key external stake-holders. The dialogue ensures that NKT remains transparent and responsive to the concerns and strategic direction of its suppliers, customers, and affected stakehold-ers.Key stakeholders and how we engage with themInvestors At NKT, investor engagement is a long-term partnership built on transparency. Through open communication, NKT shares its strategic vision, gathering valuable insights from investors. The engagement focuses on financial performance, sustainability progress, and risk management. NKT actively maintains selected ESG ratings aligned with the expectations from its investors. NKT prioritises the ratings from Ecovadis, CDP, Corpo-rate Knights, MSCI and Sustainalytics.CustomersAs a reliable partner for utilities, developers, and industries worldwide, NKT enables customers to reach their sustainability commitments by actively partnering with them. NKT is committed to building long-term relationships based on trust and transparency, fostering sustainability by among others reducing COe emissions, increasing circularity, 2and achieving positive biodiversity impact.Current employees People are central to NKTâs strategy and success. NKT fosters open feedback from its employees through regular employee surveys, leadership roundtables, and town halls. NKT engages with its current employees to understand their experiences, challenges, and perspectives on improvement areas. The engagement also fosters increased awareness of internal policies and procedures, such as within health and safety.Future employeesNKT partners with universities, local schools, and municipalities to engage with stu-dents and attract future talent through initiatives such as masterâs theses, development projects, and career fairs. In addition, the company runs the NKT Graduate Programme, which annually attracts hundreds of applicants.Membership in organisations NKT is an active participant in various industry organisations to stay at the forefront of industry developments and collaborate on key initiatives. NKT advocates for regulatory frameworks that accelerate electrification across all sectors and the promotion of mas-sive investments in electricity infrastructure and clean energy. These frameworks must be stable, Paris-aligned, and designed to unlock long-term investment in clean energy and grids. In this way, NKT is reinforcing its commitment to enabling Paris-aligned policy environments and accelerating the transition to a net zero economy.SuppliersNKT maintains strong relationships with its suppliers, engaging with them to ensure mutual, sustainable growth and adherence to sustainability standards. NKT focuses on strategic collaboration with suppliers of critical materials and components to support reliable and efficient energy infrastructure. This includes joint efforts to increase supply chain transparency, decarbonise production processes, integrate recycled content, and ensure ethical business conduct.Policies adopted to manage material sustainability mattersE1-1, E2-1, E3-1, E5-1, S1-1, G1-1NKTâs global sustainability policies outline the commitments, princi-ples, and strategic direction within NKTâs sustainability management and is governed by the corporate governance framework. Combined, the policies establish a structured framework that guides environmen-tal, social, and governance prac-tices across the organisation. Each policy reflects interests from appro-priate stakeholders and is available to all stakeholders. Accountability and monitoringThe NKT Executive Management is accountable for the implemen-tation of all policies. Monitoring the implementation of the policies is an integrated part of NKT's governance framework. All NKT policies are updated on a regular basis, typically every 1-3 years depending on the specific policy. Policy Content Coverage Related IROIMS NKTâs Integrated Management System (IMS) sets the framework for aligning health and safety, environmental responsibility, quality, and com-Own operations NKT's people: H&Spliance across global operations. The IMS establishes principles for creating safe and inclusive workplaces, reducing environmental impact, and value chainMaterial healthand safeguarding human rights while ensuring high-quality solutions. It integrates material ESG topics into governance and decision-making processes, making sustainability an embedded part of NKTâs operational approach.îClimate Change NKTâs Climate Change Policy establishes the basis for addressing climate change across the companyâs operations and value chain. It outlines Own operations Climate change mitigationNKT's commitment to renewable energy deployment and the company's science-based targets validated by the Science Based Targets initia-and value chainClimate change adaptationtive (SBTi), with a long-term goal of net zero emissions by 2050.EnergyThe policy integrates climate considerations into strategic planning and decision-making, and promotes collaboration with suppliers, custom-ers, and partners to reduce emissions and develop solutions that support the green transition. The policy is available externally.Circular Economyî NKTâs Circular Economy Policy sets the direction for the companyâs circularity efforts towards resource optimisation and product circularity.Own operations Resource inflowand value chainResource outflowAn increase in recycled content, lower resource intensity, and reuse and recyclability by design underpin the approach put forward in the Resource optimisationpolicy. Circularity is integrated into product development, procurement, and operational processes, contributing to a more resilient and re-source-efficient energy system.Procurement NKTâs Procurement Sustainability Policy defines the companyâs approach to sourcing goods and services in a way that supports environ-Value chain IROs in the supply chain:Sustainabilityî mental, social, and ethical performance across the value chain. It sets clear expectations for suppliers and service providers to comply with Pollutionenvironmental and labour legislation, reduce negative impacts, and uphold ethical labour practices.Water useBiodiversity lossAffected communitiesH&SCorruption and briberyHuman Rights NKTâs Human Rights Policy defines the companyâs commitment to respecting and promoting human rights. The policy sets expectations for Own operations NKT's peoplefair treatment, safe working conditions, and the prevention of child labour, forced labour, and discrimination. NKT aligns with internationally and value chainAffected communities: recognised standards, including the International Bill of Human Rights, the ILOâs Declaration on Fundamental Principles and Rights at Work, community rights and indig-and the UN Guiding Principles on Business and Human Rights. The policy also supports broader sustainability efforts by recognising the role enous peopleof human rights in enabling a just transition and resilient communities.H&S in the supply chainDiversity and NKTâs Diversity and Inclusion Policy highlights the companyâs commitment to fostering a diverse workforce and an inclusive culture across all Own operations NKT's people: Diversity, Inclusionoperations. The policy recognises diversity and inclusion as drivers of innovation, resilience, and long-term business performance, and sup-fairness and a harass-ports NKTâs purpose of connecting a greener world.ment-free workplaceThe policy applies across all stages of the employee journey, from recruitment to development and progression. It sets expectations for fair and unbiased treatment, equitable access to opportunities, and equal pay for equal work. It also includes a zero-tolerance stance on discrimi-nation and harassment, with mechanisms in place to address violations swiftly and appropriately.Anti-Bribery and NKTâs Anti-Bribery and Anti-Corruption Policy includes NKTâs commitment to conducting business with integrity, transparency, and compli-Own operations Corruption and briberyAnti-Corruptionance with international standards such as the UK Bribery Act and the U.S. Foreign Corrupt Practices Act (FCPA). It applies to all employees and value chainand prohibits all forms of bribery, corruption, and facilitation payments. The policy sets clear rules for gifts, entertainment, hospitality, spon-sorships, donations, and interactions with public officials, ensuring these are modest, transparent, and serve legitimate business purposes. Reporting mechanisms, including the confidential NKT whistleblower hotline, are available to report concerns.Non-Harassment NKTâs Non-Harassment and Non-Discrimination Policy aims to foster a workplace where everyone feels safe, respected, and valued. The scope Own operations NKT's people: Diversity, and Non-of the policy applies across all operations, events, and interactions with employees, contractors, and partners.fairness and a harass-Discriminationment-free workplacePreventive measures include regular training and awareness initiatives to reinforce respectful conduct and promote psychological safety.Double Materiality Assessment methodologyIRO-1, IRO-2, SBM-2NKT conducted its first ESRS-aligned Double Materiality Assess-ment (DMA) in 2024 to understand the impacts, risks, and opportuni-ties associated with its business. This assessment followed a struc-tured approach, aligning with the European Financial Reporting Advi-sory Group (EFRAG) guidelines and the ESRS. NKTâs methodology for DMA follows six steps, outlined below:1. Defining context and scopeNKT initiates the DMA process by establishing the context and scope. This foundational step involves mapping activities, products, ser-vices, and locations, and describing how these elements are intercon-nected within the business model. A comprehensive value chain map-ping, including a spend analysis, is conducted to prioritise key suppliers and materials. Suppliers are catego-rised based on economic relevance and potential impact, enabling the identification of high-risk materials such as copper, aluminium, steel, lead, XLPE, and PVC. This analysis informs the mapping of upstream value chains, focusing on key com-modities, while the downstream value chain analysis targets key markets and customer segments. For more information, see: Value chain2. Identifying IROsThe second step of the DMA involves identifying the Impacts Risks and Opportunities (IROs). Following EFRAG recommendations and guidelines of, the list of sus-tainability matters in ESRS 1 AR16 serves as foundation for covering ESG sustainability matters. The sus-tainability matters on the list were screened using an evaluation matrix where the key screening criteria are: îâ Type of IROîâ Location in the value chain (upstream, own operations, or downstream)The screening is informed by pre-vious DMAs, desktop research, databases, reports, and stakeholder input.3. Assessing IROsIn the third step, potential and actual negative and positive impactsâas well as financial risks and oppor-tunities over various time hori-zonsâare assessed and scored. Scoring follows EFRAG guidance and excludes mitigation actions, as recommended.Impact severity is evaluated based on scale, scope, and irremediability (for negative impacts), while like-lihood is considered for potential impacts. For potential negative human rights impacts, severity takes precedence over likelihood. NKTâs human rights and climate risks assessments are used as inputs, reflecting the findings of the newest edition of these assess-ments. Financial risks and opportunities are scored based on magnitude and like-lihood, with financial effects quantified through integration with the Enter-prise Risk Management (ERM) model. Scoring is partially aligned with ERM.All characteristics are scored, creating a possible scale of 0 to 25, incorporating likelihood where applicable.4. Calibrating with internal stakeholdersScoring of IROs is calibrated and validated through internal work-shops or through meetings with the relevant internal subject mat-ter experts. IROs are prioritised based on relevance and impact. The calibration of topics includes discussions on dependencies and how to account for them during the assessment.5. Determining materialityMateriality is determined using a threshold set at 50% of the possi-ble scale (12.5 out of 25) for both impact and financial materiality. The materiality threshold reflects two key aspects: transparency and uncertainty. NKT aims to provide stakeholders with clear insights into its impacts, risks, and opportunities, ensuring that the threshold does not obscure transparency. Given the significant uncertainty associated with these assessments, the thresh-old is set to avoid deeming a topic material without sufficient knowl-edge. This balanced approach is established through collaboration with the assessment team, partici-pants in calibration workshops, and senior management, and is con-firmed through various stakeholder engagement discussions. Disclosure requirements and data points are defined based on mate-rial matters at a sub-sub-topic level. Then, the materiality of information to define the scope of reporting is applied on metrics, establishing if a disclosure requirement is mate-rial information to the users of the sustainability reporting. Data points with transitional options are used. All significant information to meet users' decision-making needs is included for reporting.Endorsement by board and managementThe results of the DMA are pre-sented to senior management for final validation and to the BoD for endorsement. The reporting phase ensures transparency and accuracy in addressing significant sustainabil-ity matters across NKT's operations and value chain.DMA outcomes inform updates to the business strategy and guide supporting initiatives. The DMA is reviewed and updated annually.Stakeholder involvement in the DMAStakeholder engagement forms an integral part of NKTâs Double Materiality Assessment (DMA). To ensure relevance, accuracy, and robustness, the assessment pro-cess includes structured dialogues and consultations with suppliers, customers, and non-governmental organisations.These engagements serve to vali-date and refine the understanding of impacts, risks, and opportunities across the value chain. The initial hypotheses on IROs are derived from the above-mentioned desktop research. Insights gathered through stakeholder input complement the internal analysis and desktop research, enabling the incorpora-tion of context-specific details and enhancing the credibility of findings.The information from stakeholder engagement, is furthermore cross-verified against the initial research to ensure accuracy.The engagement process also sup-ports the prioritisation of material topics, ensuring that the assess-ment reflects both upstream and downstream realities. By integrating diverse perspectives, the DMA process reinforces transparency and contributes to informed deci-sion-making within the broader sus-tainability strategy.The Board is informed about stake-holder engagement in the DMA process annually.Stakeholders engagedEngaging in dialogues with external stakeholders is crucial for NKT. These dialogues ensure that NKT remains transparent and responsive to the concerns of its suppliers, customers, and affected stakehold-ers. Suppliers: Suppliers are engaged to identify potential and actual IROs in the upstream value chain, par-ticularly in relation to key materials. Interviews across material supply chains provide data that comple-ments desktop research, including perspectives on working conditions and social impacts.Customers: Customers contribute input on potential and actual IROs in the downstream value chain. Engagement spans all business lines and key customer segments, supporting a balanced view of mar-ket-facing sustainability matters.Affected stakeholders: NKT rec-ognises the importance of engaging with affected stakeholders such as affected communities and work-ers in the value chain, especially regarding human rights. To do so, NKT incorporates input from third-party organisations with expertise in human rights and multi-stakeholder structures. Organisations such as the Initiative for Responsible Min-ing Assurance (IRMA), the Copper Mark, and the Danish Human Rights Institute are consulted to provide representative insights into the per-spectives of affected communities and stakeholders.Employees: Employees participates in internal workshops designed to calibrate and validate the assess-ment of IROs. These sessions ensure that internal perspectives are reflected in the prioritisation of material topics. Employees with specific subject matter expertise are furthermore included on an ongoing basis to ensure correct understanding and assessment of specific IROs</mrv:DisclosureOfMaterialImpactsRisksAndOpportunitiesAndHowTheyInteractWithStrategyAndBusinessModelExplanatory>
<mrv:DescriptionofTheTaxonomyRegulation contextRef="ctx-1" id="f1__s10__7__18-1" xml:lang="en">EU TaxonomyThe EU Taxonomy is a classifica-tion system designed to identify environmentally sustainable eco-nomic activities. For NKT, the EU Taxonomy provides a recognised framework for identifying and quan-tifying the companyâs contribution to climate change mitigation. NKT is primarily engaged in economic activities with the potential of pro-viding a substantial contribution to climate change mitigation, and has provided reporting on the EU Tax-onomy since 2021.During 2025, NKT has assessed that its economic activities are eligible under the following three activities: îâ 3.1. Manufacture of renewable energy technologies îâ 3.20. Manufacture, installation, and servicing of high-, medium-, and low-voltage electrical equip-ment for electrical transmission and distribution that result in or enable a substantial contribution to climate change mitigationîâ 4.9. Transmission and distribution of electricity In 2025, 50% of NKT's revenue, 69% of CAPEX, and 44% of OPEX included under the company's taxonomy reporting is aligned with the EU Taxonomy, and substanti-ates NKT's contribution to climate change mitigation. As NKTâs work with the EU Taxonomy evolves, the company will continue to assess opportunities to increase taxonomy alignment.As a member of Europacable, NKT follows the guidance for eligibility, alignment, and reporting applicable for cable companies in order to comply with the taxonomy. The full overview of NKTâs EU Tax-onomy 2025 performance can be found in the annex. NKT's EU Taxonomy reportingNKTâs 2025 EU Taxonomy reporting23%22% Eligible and aligned activities (EURm)39% Eligible, not aligned activities (EURm)RevenueOPEXCAPEX50%69%44% Non-eligible activities (EURm)27%9%17%NKT's substantial contribution Revenue CAPEX OPEXto climate change mitigation2025 2024 2025 2024 2025 2024EURm % EURm % EURm % EURm % EURm % EURm %Eligible and aligned activities (EURm)3.1 Manufacture of renewable energy technologies 591 17% 542 17% 385 49% 189 31% -16 27% -12 23%3.20 Manufacture, installation, and servicing of high-, medium- and low-voltage electrical equipment for electrical transmission and distribution 199 5% 125 3% 15 2% 18 3% -2 4% -2 3%4.9 Transmission and distribution of electricity 1,001 28% 932 29% 138 18% 134 22% -8 13% -10 18%Eligible, not aligned activities (EURm)3.1 Manufacture of renewable energy technologies 16 0% 0 0% 3 0% 0 0% 0 0% 0 0%3.20 Manufacture, installation, and servicing of high-, medium- and low-voltage electrical equipment for electrical transmission and distribution 829 24% 750 23% 53 7% 91 15% -8 15% -9 17%4.9 Transmission and distribution of electricity 97 3% 162 5% 12 2% 7 1% -1 2% -1 2%Non-eligible activities 832 23% 740 23% 173 22% 172 28% -23 39% -19 37% Accounting policyEligible activitiesNKT has identified three relevant cat-egories for its eligibility assessment under the Climate Delegated Act: â 3.1 Manufacture of renewable energy technologies: Includes cable systems for wind farms and other renewable energy applications under NACE code C27.3. â 3.20 Electrical equipment for trans-mission and distribution: Covers manufacturing, installation, and servicing of high-, medium-, and low-voltage cables that enable elec-trification and renewable integra-tion. Cables for buildings or telecom are excluded. â 4.9 Transmission and distribution of electricity: Includes engineering, procurement, construction, and installation services for intercon-nectors and grid reinforcement pro-jects. When activities overlap with 3.20, they are allocated to 4.9.Alignment assessmentThe alignment assessment consists of three steps: 1. Assessment of substantial contri-bution:NKT screens its activities against three technical criteria for climate change mitigation: â 3.1: Projects and products dedi-cated to renewable energy applica-tions, primarily wind power. â 3.20: Compliance achieved when products enhance renewable energy share or energy efficiency. NKT applied a market-based threshold aligned with the EUâs 2030 renewable energy target (42.5%). Devices qualify if they enhance renewable energy share or energy efficiency, with the latter assessed based on sales to mar-kets meeting or exceeding the EUâs 2030 renewable energy target of 42.5%, using Eurostat and World Bank data; markets below this threshold are excluded. â 4.9: Alignment confirmed for interconnector projects and grid infrastructure supporting renewable electricity generation.NKT has not identified any activities that contribute to climate change adaptation.2. Assessment of Do No Significant Harm (DNSH):Aligned activities comply with applica-ble DNSH criteria across manufactur-ing, product, and project levels. NKT documents compliance through its management systems at production facilities and through product- and project-specific documentation respectively. 3. Compliance with minimum safe-guards:NKT assesses minimum safeguards at company level, referencing its Code of Conduct, Supplier Code of Conduct, Human Rights Policy, Sustainable Procurement Policy, Diversity and Inclusion Policy and other related policies, statements, and processes. Anti-corruption and fair competition are addressed in the Code of Con-duct, and NKTâs Tax Policy is publicly available on NKT.com. The company aligns with the UN Guiding Principles on Business and Human Rights and OECD Guidelines for Multinational Enterprises, applying these standards internally and across its value chain.Taxonomy KPIsRevenue (market prices), as presented in the income statement in the finan-cial statements and in line with NKT's financial definition, includes only exter-nal revenue. CAPEX is defined as "Investments in property, plant, and equipment" and "Intangible assets and other invest-ments" as reported in the cash flow statement in the financial statements. It also includes leasing additions reported in the right-of-use assets from leases included in property, plant and equipment.OPEX is defined as direct non-capital-ised costs that relate to research and development, short-term lease, main-tenance and repair.The share of Taxonomy-eligible/aligned revenue is calculated as the revenue from Taxonomy-eligible/aligned projects and products as a proportion of total revenue. The share of Taxonomy-eligible/aligned CAPEX is calculated as the investments related to assets, pro-cesses, and technologies associated with Taxonomy-eligible/aligned eco-nomic activities as a proportion of the total CAPEX.The share of Taxonomy-eligible/aligned OPEX is calculated as the OPEX associated with processes and activities related to Taxonomy-eligible/aligned economic activities as a pro-portion of total OPEX.Eligibility and alignment assessment The revenue (market prices), CAPEX and OPEX related to Taxonomy-eligi-ble/aligned activities are determined based on the assessment of project and product eligibility and alignment. Revenue, CAPEX, and OPEX that can be linked to identified Taxono-my-aligned activities are classified as Taxonomy-aligned. The proportion of revenue, CAPEX, and OPEX that is associated with Taxonomy-eligible but not-aligned activities is disclosed separately. This includes the eligible activities where NKT does not meet the technical screening criteria for substantial contribution, DNSH, or Minimum Safeguards for Taxonomy alignment. The proportion of revenue, CAPEX, and OPEX that is associated with Taxonomy-non-eligible activities is disclosed separately.Allocation keyThe share of Taxonomy-eligible/aligned CAPEX and OPEX is assessed by applying the share of Taxonomy-el-igible/aligned produced quantities per categories within specific business lines as an allocation key. The majority of NKTâs investments and costs can be used to produce both eligible/aligned and non-eligible projects and products. NKT has determined that an output-based approach serves as an effective proxy for distinguishing between eligible or aligned activities and those that are not eligible. Double countingRevenue, CAPEX, and OPEX are allo-cated to a single applicable activity, either within the three key Taxono-my-eligible categories or the non-Tax-onomy-eligible category, ensuring a clear and accurate distribution without the risk of double counting.Materiality ThresholdWhen applying the materiality thresh-old introduced under the revised EU Taxonomy Framework, any economic activities that cumulatively account for less than 10% of the companyâs total revenue, CAPEX, or OPEX, respec-tively, are not subject to an eligibility or alignment assessment. These activi-ties are considered non-material and are reported separatelyEU Taxonomy 1EU Taxonomy FY 2025Breakdown by environmental objectives Financial year (N) 2025of Taxonomy aligned activitiesKPI (1)EURm % EURm % % % % % % % % % % EURm %Revenue 3,565 77% 1,791 50% 50% N/A N/A N/A N/A N/A 50% N/A 2% 1,600 49%CAPEX 779 78% 538 69% 69% N/A N/A N/A N/A N/A 69% N/A 3% 341 56%-58 61% -26 44% 44% N/A N/A N/A N/A N/A 44% N/A 15% -23 44%OPEX1 Refer to page 85 of the sustainability statement for the applicable accounting policiesRevenue Revenue2025 Environmental objective of Taxonomy aligned activitiesEconomic Activities (1)% EURm % % % % % % % E T %3.1 Manufacture of renewable energy technologies CCM 3.1 17% 591 17% 17% N/A N/A N/A N/A N/A E N/A 97%4.9 Transmission and distribution of electricity CCM 4.9 31% 1,001 28% 28% N/A N/A N/A N/A N/A E N/A 91%3.20 Manufacture, installation, and servicing of high, medium and CCM 3.20 29% 199 5% 5% N/A N/A N/A N/A N/A E N/A 19%low voltage electrical equipment for electrical transmission and distribution that result in or enable a substantial contribution to climate change mitigationSum of alignment per objective50% N/A N/A N/A N/A N/ATotal KPI (Revenue / CAPEX / OPEX) 77% 1,791 50% 50% N/A N/A N/A N/A N/A 50% N/A 66%CAPEX CAPEX2025 Environmental objective of Taxonomy aligned activitiesEconomic Activities (1)% EURm % % % % % % % E T %3.1 Manufacture of renewable energy technologies CCM 3.1 50% 385 49% 49% N/A N/A N/A N/A N/A E N/A 99%4.9 Transmission and distribution of electricity CCM 4.9 19% 138 18% 18% N/A N/A N/A N/A N/A E N/A 92%3.20 Manufacture, installation, and servicing of high, medium and CCM 3.20 9% 15 2% 2% N/A N/A N/A N/A N/A E N/A 22%low voltage electrical equipment for electrical transmission and distribution that result in or enable a substantial contribution to climate change mitigationSum of alignment per objective69% N/A N/A N/A N/A N/ATotal KPI (Revenue / CAPEX / OPEX) 78% 538 69% 69% N/A N/A N/A N/A N/A 69% N/A 89%OPEX OPEX2025 Environmental objective of Taxonomy aligned activitiesEconomic Activities (1)% EURm % % % % % % % E T %3.1 Manufacture of renewable energy technologies CCM 3.1 27% -16 27% 27% N/A N/A N/A N/A N/A E N/A 99%4.9 Transmission and distribution of electricity CCM 4.9 15% -8 13% 13% N/A N/A N/A N/A N/A E N/A 89%3.20 Manufacture, installation, and servicing of high, medium and CCM 3.20 19% -2 4% 4% N/A N/A N/A N/A N/A E N/A 22%low voltage electrical equipment for electrical transmission and distribution that result in or enable a substantial contribution to climate change mitigationSum of alignment per objective44% N/A N/A N/A N/A N/ATotal KPI (Revenue / CAPEX / OPEX) 6 1% -26 44% 44% N/A N/A N/A N/A N/A 44% N/A 72%</mrv:DescriptionofTheTaxonomyRegulation>
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<sob:StatementByExecutiveAndSupervisoryBoards contextRef="ctx-1" id="f1__s10__7__188" xml:lang="en">Group Managementâs statementThe Board of Directors and Executive Board and the Executive Board have today considered and adopted the Annual Report of NKT A/S for the financial year 1 January â 31 Decem-ber 2025.The Consolidated Financial State-ments and the Parent Company Financial Statements have been prepared in accordance with IFRS Accounting Standards as adopted by the EU and further requirements in the Danish Financial Statements Act. Managementâs Review has been pre-pared in accordance with the Danish Financial Statements Act. In our opinion, the Consolidated Financial Statements and the Parent Company Financial Statements give a true and fair view of the financial position on 31 December 2025 of the Group and the Parent Company and of the results of the Group and Parent Company operations and consoli-dated cash flows for the financial year 1 January - 31 December 2025.In our opinion, Managementâs Review includes a fair review of the develop-ment in the operations and financial circumstances of the Group and the Parent Company, of the results for the year and of the financial position of the Group and the Parent Company as well as a description of the most sig-nificant risks and elements of uncer-tainty facing the Group and the Parent Company.Additionally, the Sustainability State-ment, which is part of Managementâs Review, has been prepared, in all material respects, in accordance with paragraph 99a of the Danish Financial Statements Act. This includes compli-ance with the European Sustainability Reporting Standards (ESRS) including that the process undertaken by Man-agement to identify the reported infor-mation (the "Process") is in accord-ance with the description set out in the section titled âGeneral informationâ in the Sustainability Statements and Double Materiality Assessment meth-odology in appendices. Furthermore, disclosures within âEU Taxonomyâ in the Environmental Information section of the Sustainability Statement and EU Taxonomy tables in appendices are, in all material respects, in accord-ance with Article 8 of EU Regulation 2020/852 (the âTaxonomy Regula-tionâ).The Sustainability Statement includes forward-looking statements based on disclosed assumptions about events that may occur in the future and possi-ble future actions by the Group. Actual outcomes are likely to be different since anticipated events frequently do not occur as expected.In our opinion, the annual report of NKT A/S for the financial year 1 Jan-uary to 31 December 2025 with the file name nkt-2025-12-31-en.zip is prepared, in all material respects, in compliance with the ESEF Regulation.We recommend that the Annual Report be adopted at the Annual Gen-eral Meeting.</sob:StatementByExecutiveAndSupervisoryBoards>
<sob:PlaceOfSignatureOfStatement contextRef="ctx-1" id="f1__s10__7__189" xml:lang="en">Copenhagen</sob:PlaceOfSignatureOfStatement>
<sob:DateOfApprovalOfAnnualReport contextRef="ctx-1" id="f1__s10__7__190">2026-02-25</sob:DateOfApprovalOfAnnualReport>
<cmn:NameAndSurnameOfMemberOfExecutiveBoard contextRef="ctx-47" id="f1__s10__7__191" xml:lang="en">Claes Westerlind</cmn:NameAndSurnameOfMemberOfExecutiveBoard>
<cmn:NameAndSurnameOfMemberOfExecutiveBoard contextRef="ctx-48" id="f1__s10__7__193" xml:lang="en">Line Andrea Fandrup</cmn:NameAndSurnameOfMemberOfExecutiveBoard>
<cmn:TitleOfMemberOfExecutiveBoard contextRef="ctx-47" id="f1__s10__7__192" xml:lang="en">President & CEO</cmn:TitleOfMemberOfExecutiveBoard>
<cmn:TitleOfMemberOfExecutiveBoard contextRef="ctx-48" id="f1__s10__7__194" xml:lang="en">CFO</cmn:TitleOfMemberOfExecutiveBoard>
<cmn:NameAndSurnameOfMemberOfSupervisoryBoard contextRef="ctx-49" id="f1__s10__7__195" xml:lang="en">Jens Due Olsen</cmn:NameAndSurnameOfMemberOfSupervisoryBoard>
<cmn:NameAndSurnameOfMemberOfSupervisoryBoard contextRef="ctx-50" id="f1__s10__7__197" xml:lang="en">René Svendsen-Tune</cmn:NameAndSurnameOfMemberOfSupervisoryBoard>
<cmn:TitleOfMemberOfSupervisoryBoard contextRef="ctx-49" id="f1__s10__7__196" xml:lang="en">Chair</cmn:TitleOfMemberOfSupervisoryBoard>
<cmn:TitleOfMemberOfSupervisoryBoard contextRef="ctx-50" id="f1__s10__7__198" xml:lang="en">Deputy Chair</cmn:TitleOfMemberOfSupervisoryBoard>
<cmn:NameAndSurnameOfMemberOfSupervisoryBoard contextRef="ctx-52" id="f1__s10__7__200" xml:lang="en">Anne Vedel</cmn:NameAndSurnameOfMemberOfSupervisoryBoard>
<cmn:NameAndSurnameOfMemberOfSupervisoryBoard contextRef="ctx-53" id="f1__s10__7__201" xml:lang="en">Nebahat Albayrak</cmn:NameAndSurnameOfMemberOfSupervisoryBoard>
<cmn:NameAndSurnameOfMemberOfSupervisoryBoard contextRef="ctx-54" id="f1__s10__7__202" xml:lang="en">Karla Lindah</cmn:NameAndSurnameOfMemberOfSupervisoryBoard>
<cmn:NameAndSurnameOfMemberOfSupervisoryBoard contextRef="ctx-55" id="f1__s10__7__203" xml:lang="en">Akos Frank</cmn:NameAndSurnameOfMemberOfSupervisoryBoard>
<cmn:NameAndSurnameOfMemberOfSupervisoryBoard contextRef="ctx-56" id="f1__s10__7__204" xml:lang="en">Jean Leif Iversen</cmn:NameAndSurnameOfMemberOfSupervisoryBoard>
<cmn:NameAndSurnameOfMemberOfSupervisoryBoard contextRef="ctx-57" id="f1__s10__7__205" xml:lang="en">John Erik Andersen</cmn:NameAndSurnameOfMemberOfSupervisoryBoard>
<cmn:NameAndSurnameOfMemberOfSupervisoryBoard contextRef="ctx-51" id="f1__s10__7__199" xml:lang="en">Andreas Nauen</cmn:NameAndSurnameOfMemberOfSupervisoryBoard>
<arr:AuditorsReportOnFinancialStatements contextRef="ctx-1" id="f1__s10__7__208" xml:lang="en">Independent auditorâs reportsTo the shareholders of NKT A/SOur opinionIn our opinion, the Consolidated Financial Statements and the Parent Company Financial Statements give a true and fair view of the Groupâs and the Parent Companyâs financial position at 31 December 2025 and of the results of the Groupâs and the Par-ent Companyâs operations and cash flows for the financial year 1 January to 31 December 2025 in accordance with IFRS Accounting Standards as adopted by the EU and further requirements in the Danish Financial Statements Act.Our opinion is consistent with our Auditorâs Long-form Report to the Audit Committee and the Board of Directors.What we have auditedThe Consolidated Financial State-ments p. 114-157 and Parent Com-pany Financial Statements of NKT A/S p. 158-166 for the financial year 1 Jan-uary to 31 December 2025 comprise the income statement, the statement of comprehensive income, the bal-ance sheet, the statement of changes in equity, the cash flow statement and notes, including material accounting policy information for the Group as well as for the Parent Company. Col-lectively referred to as the âFinancial Statementsâ.Basis for opinionWe conducted our audit in accord-ance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are fur-ther described in the Auditorâs respon-sibilities for the audit of the Financial Statements section of our report.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.IndependenceWe are independent of the Group in accordance with the International Eth-ics Standards Board for Accountantsâ International Code of Ethics for Profes-sional Accountants (IESBA Code) as applicable to audits of financial state-ments of public interest entities, and the additional ethical requirements applicable in Denmark. We have also fulfilled our other ethical responsibili-ties in accordance with these require-ments and the IESBA Code.To the best of our knowledge and belief, prohibited non-audit services referred to in Article 5(1) of Regulation (EU) No 537/2014 were not provided. AppointmentWe were first appointed auditors of NKT A/S on 23 March 2023 for the financial year 2023. We have been reappointed annually by shareholder resolution for a total period of uninter-rupted engagement of 3 years includ-ing the financial year 2025.Key audit mattersKey audit matters are those matters that, in our professional judgement, were of most significance in our audit of the Financial Statements for 2025. These matters were addressed in the context of our audit of the Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.Key audit matter Revenue recognition and construction contractsThe accuracy and valuation of work in progress of large construction contracts in Solutions and the timing of revenue recognition in the income statement is dependent on complex estimation methodologies of, amongst others, construction costs, percent-age-of-completion and uncertainties in the construction phase. We focused on this area because the revenue recognised over time as well as accuracy and valuation of con-struction contracts require significant judgements and estimates by Man-agement.Refer to notes (2.1) and (4.5) in the Consolidated Financial Statements.How our audit addressed the key audit matterWe performed risk assessment pro-cedures with the purpose of achieving an understanding of IT-systems, business procedures and relevant key controls regarding revenue recognition and construction contracts. In respect of key controls, we assessed whether they were designed and implemented effectively to address the risk of material misstatements. For selected controls that we planned to rely on, we tested whether they were performed on a consistent basis, primarily related to contract approvals, monitoring of project development and estimation of costs to complete projects. We considered the appropriateness of the Groupâs accounting policies for revenue recognition and construction contracts and assessed compliance with IFRS 15. On a sample basis, we reviewed the individual contracts in Solutions and challenged the accounting treatment applied by Management. We tested whether revenue is recorded in the correct period and whether construc-tion contracts are valued properly by challenging the estimated costs to complete related to the projects, including the assumptions used, and by performing retrospective review and considering the historical accu-racy of the assessment of percent-age-of-completion and of the assess-ment of risk provisions.We also assessed how the project managers determined the degree of completion by obtaining their calcula-tions and challenged assumptions and inputs used. We assessed the completeness and accuracy of the disclosure of revenue recognition and construction con-tracts against the disclosure require-ments in IFRS 15.Key audit matterValuation and recognition of deferred tax assetsNKT has deferred tax assets from tax losses carried forward and other timing differences in foreign entities, especially in Germany. Significant judgement and estimates are applied when recognising and measuring the tax assets, including when and to which extent these can be utilised in the future.We focused on this area because Management makes significant judge-ments and estimates when recog-nising and measuring the tax assets, including when and to which extent these can be utilised in the future.Refer to note (2.5) in the Consolidated Financial Statements.How our audit addressed the key audit matterWe considered the appropriateness of the accounting policies and valuation models utilised for tax accounting and assessed compliance with IAS 12. We also assessed Managementâs process for identifying and assessing deferred tax assets that might not be recoverable.We assessed Managementâs judge-ments and estimates of tax balances and carrying amounts as well as the related applied tax rates when calculating these. We also assessed the reasonableness of the main data and assumptions used to calculate the taxable income forecasts used for recognition and measurament of the deferred tax assets relating to tax loss carryforward and other timing differences.We obtained and evaluated Manage-mentâs expectations for the generation of future taxable profits in Germany, and reviewed the Groupâs preliminary tax calculation. We verified that taxes recognised in the Financial Statements are in accordance with the preliminary tax calculation. We performed a retrospective review and considered the historical accuracy of the valuation of deferred tax assets. In assessing the valuation and rec-ognition of deferred tax assets, we involved our tax specialists.We assessed the completeness and accuracy of the disclosure of deferred tax assets against the disclosure requirements in IAS 12.Statement on Managementâs ReviewManagement is responsible for Man-agementâs Review p. 1-112 and p. 174-184.Our opinion on the Financial State-ments does not cover Managementâs Review, and we do not as part of the audit express any form of assurance conclusion thereon.In connection with our audit of the Financial Statements, our responsi-bility is to read Managementâs Review and, in doing so, consider whether Managementâs Review is materially inconsistent with the Financial State-ments or our knowledge obtained in the audit, or otherwise appears to be materially misstated. Moreover, we considered whether Managementâs Review includes the disclosures required by the Danish Financial Statements Act. This does not include the requirements in para-graph 99 a related to the Sustainability Statement covered by the separate auditorâs limited assurance report hereon.Based on the work we have per-formed, in our view, Managementâs Review is in accordance with the Consolidated Financial Statements and the Parent Company Financial Statements and has been prepared in accordance with the requirements of the Danish Financial Statements Act, except for the requirements in para-graph 99 a related to the Sustainability Statement, cf. above. We did not identify any material misstatement in Managementâs Review.Managementâs responsibilities for the Financial StatementsManagement is responsible for the preparation of consolidated financial statements and parent company financial statements that give a true and fair view in accordance with IFRS Accounting Standards as adopted by the EU and further requirements in the Danish Financial Statements Act, and for such internal control as Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.In preparing the Financial Statements, Management is responsible for assessing the Groupâs and the Parent Companyâs ability to continue as a going concern, disclosing, as applica-ble, matters related to going concern and using the going concern basis of accounting unless Management either intends to liquidate the Group or the Parent Company or to cease opera-tions, or has no realistic alternative but to do so.Auditorâs responsibilities for the audit of the Financial StatementsOur objectives are to obtain reason-able assurance about whether the Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorâs report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark will always detect a material misstatement when it exists. Mis-statements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influ-ence the economic decisions of users taken on the basis of these Financial Statements.As part of an audit in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: â Identify and assess the risks of material misstatement of the Finan-cial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evi-dence that is sufficient and appro-priate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. â Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of express-ing an opinion on the effectiveness of the Groupâs and the Parent Com-panyâs internal control. â Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management. â Conclude on the appropriateness of Managementâs use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncer-tainty exists related to events or conditions that may cast significant doubt on the Groupâs and the Par-ent Companyâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorâs report to the related disclosures in the Financial State-ments or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditorâs report. How-ever, future events or conditions may cause the Group or the Parent Company to cease to continue as a going concern. â Evaluate the overall presenta-tion, structure and content of the Financial Statements, including the disclosures, and whether the Financial Statements represent the underlying transactions and events in a manner that gives a true and fair view. â Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or busi-ness units within the group as a basis for forming an opinion on the Consolidated Financial Statements. We are responsible for the direc-tion, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our audit opinion.We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independ-ence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence and, where applicable, actions taken to eliminate threats or safeguards applied.From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Financial Statements of the current period and are therefore the key audit matters. We describe these matters in our auditorâs report unless law or regulation precludes public disclosure about the matter.Report on compliance with the ESEF RegulationAs part of our audit of the Financial Statements we performed procedures to express an opinion on whether the annual report of NKT A/S for the financial year 1 January to 31 December 2025 with the filename nkt-2025-12-31-en.zip is prepared, in all material respects, in compliance with the Commission Delegated Regulation (EU) 2019/815 on the European Single Electronic Format (ESEF Regulation) which includes requirements related to the preparation of the annual report in XHTML format and iXBRL tagging of the Consolidated Financial Statements including notes.Management is responsible for pre-paring an annual report that complies with the ESEF Regulation.This responsibility includes: â Preparation of the annual report in XHTML format; â Selection and application of appro-priate iXBRL tags, including exten-sions to the ESEF taxonomy and the anchoring thereof to elements in the taxonomy, for all financial infor-mation required to be tagged using judgement where necessary; â Ensuring consistency between iXBRL tagged data and the Con-solidated Financial Statements presented in human-readable for-mat; and â For such internal control as Man-agement determines necessary to enable the preparation of an annual report that is compliant with the ESEF Regulation.Our responsibility is to obtain reason-able assurance on whether the annual report is prepared, in all material respects, in compliance with the ESEF Regulation based on the evidence we have obtained, and to issue a report that includes our opinion. The nature, timing and extent of procedures selected depend on the auditorâs judgement, including the assessment of the risks of material departures from the requirements set out in the ESEF Regulation, whether due to fraud or error. The procedures include: â Testing whether the annual report is prepared in XHTML format; â Obtaining an understanding of the companyâs iXBRL tagging process and of internal control over the tag-ging process; â Evaluating the completeness of the iXBRL tagging of the Consolidated Financial Statements including notes; â Evaluating the appropriateness of the companyâs use of iXBRL ele-ments selected from the ESEF tax-onomy and the creation of exten-sion elements where no suitable element in the ESEF taxonomy has been identified; â Evaluating the use of anchoring of extension elements to elements in the ESEF taxonomy; and â Reconciling the iXBRL tagged data with the audited Consolidated Financial Statements.In our opinion, the annual report of NKT A/S for the financial year 1 Jan-uary to 31 December 2025 with the file name nkt-2025-12-31-en.zip is prepared, in all material respects, in compliance with the ESEF Regulation.</arr:AuditorsReportOnFinancialStatements>
<arr:AddresseeOfAuditorsReportOnAuditedFinancialStatements contextRef="ctx-1" id="f1__s10__7__207" xml:lang="en">To the shareholders of NKT A/S</arr:AddresseeOfAuditorsReportOnAuditedFinancialStatements>
<arr:OpinionOnAuditedFinancialStatements contextRef="ctx-1" id="f1__s10__7__209" xml:lang="en">Our opinionIn our opinion, the Consolidated Financial Statements and the Parent Company Financial Statements give a true and fair view of the Groupâs and the Parent Companyâs financial position at 31 December 2025 and of the results of the Groupâs and the Par-ent Companyâs operations and cash flows for the financial year 1 January to 31 December 2025 in accordance with IFRS Accounting Standards as adopted by the EU and further requirements in the Danish Financial Statements Act.Our opinion is consistent with our Auditorâs Long-form Report to the Audit Committee and the Board of Directors.What we have auditedThe Consolidated Financial State-ments p. 114-157 and Parent Com-pany Financial Statements of NKT A/S p. 158-166 for the financial year 1 Jan-uary to 31 December 2025 comprise the income statement, the statement of comprehensive income, the bal-ance sheet, the statement of changes in equity, the cash flow statement and notes, including material accounting policy information for the Group as well as for the Parent Company. Col-lectively referred to as the âFinancial Statementsâ.</arr:OpinionOnAuditedFinancialStatements>
<arr:DescriptionOfQualificationsOfAuditedFinancialStatements contextRef="ctx-1" id="f1__s10__7__210" xml:lang="en">Basis for opinionWe conducted our audit in accord-ance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are fur-ther described in the Auditorâs respon-sibilities for the audit of the Financial Statements section of our report.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.IndependenceWe are independent of the Group in accordance with the International Eth-ics Standards Board for Accountantsâ International Code of Ethics for Profes-sional Accountants (IESBA Code) as applicable to audits of financial state-ments of public interest entities, and the additional ethical requirements applicable in Denmark. We have also fulfilled our other ethical responsibili-ties in accordance with these require-ments and the IESBA Code.To the best of our knowledge and belief, prohibited non-audit services referred to in Article 5(1) of Regulation (EU) No 537/2014 were not provided. AppointmentWe were first appointed auditors of NKT A/S on 23 March 2023 for the financial year 2023. We have been reappointed annually by shareholder resolution for a total period of uninter-rupted engagement of 3 years includ-ing the financial year 2025.</arr:DescriptionOfQualificationsOfAuditedFinancialStatements>
<arr:KeyAuditMattersAudit contextRef="ctx-1" id="f1__s10__7__211" xml:lang="en">Key audit mattersKey audit matters are those matters that, in our professional judgement, were of most significance in our audit of the Financial Statements for 2025. These matters were addressed in the context of our audit of the Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.Key audit matter Revenue recognition and construction contractsThe accuracy and valuation of work in progress of large construction contracts in Solutions and the timing of revenue recognition in the income statement is dependent on complex estimation methodologies of, amongst others, construction costs, percent-age-of-completion and uncertainties in the construction phase. We focused on this area because the revenue recognised over time as well as accuracy and valuation of con-struction contracts require significant judgements and estimates by Man-agement.Refer to notes (2.1) and (4.5) in the Consolidated Financial Statements.How our audit addressed the key audit matterWe performed risk assessment pro-cedures with the purpose of achieving an understanding of IT-systems, business procedures and relevant key controls regarding revenue recognition and construction contracts. In respect of key controls, we assessed whether they were designed and implemented effectively to address the risk of material misstatements. For selected controls that we planned to rely on, we tested whether they were performed on a consistent basis, primarily related to contract approvals, monitoring of project development and estimation of costs to complete projects. We considered the appropriateness of the Groupâs accounting policies for revenue recognition and construction contracts and assessed compliance with IFRS 15. On a sample basis, we reviewed the individual contracts in Solutions and challenged the accounting treatment applied by Management. We tested whether revenue is recorded in the correct period and whether construc-tion contracts are valued properly by challenging the estimated costs to complete related to the projects, including the assumptions used, and by performing retrospective review and considering the historical accu-racy of the assessment of percent-age-of-completion and of the assess-ment of risk provisions.We also assessed how the project managers determined the degree of completion by obtaining their calcula-tions and challenged assumptions and inputs used. We assessed the completeness and accuracy of the disclosure of revenue recognition and construction con-tracts against the disclosure require-ments in IFRS 15.Key audit matterValuation and recognition of deferred tax assetsNKT has deferred tax assets from tax losses carried forward and other timing differences in foreign entities, especially in Germany. Significant judgement and estimates are applied when recognising and measuring the tax assets, including when and to which extent these can be utilised in the future.We focused on this area because Management makes significant judge-ments and estimates when recog-nising and measuring the tax assets, including when and to which extent these can be utilised in the future.Refer to note (2.5) in the Consolidated Financial Statements.How our audit addressed the key audit matterWe considered the appropriateness of the accounting policies and valuation models utilised for tax accounting and assessed compliance with IAS 12. We also assessed Managementâs process for identifying and assessing deferred tax assets that might not be recoverable.We assessed Managementâs judge-ments and estimates of tax balances and carrying amounts as well as the related applied tax rates when calculating these. We also assessed the reasonableness of the main data and assumptions used to calculate the taxable income forecasts used for recognition and measurament of the deferred tax assets relating to tax loss carryforward and other timing differences.We obtained and evaluated Manage-mentâs expectations for the generation of future taxable profits in Germany, and reviewed the Groupâs preliminary tax calculation. We verified that taxes recognised in the Financial Statements are in accordance with the preliminary tax calculation. We performed a retrospective review and considered the historical accuracy of the valuation of deferred tax assets. In assessing the valuation and rec-ognition of deferred tax assets, we involved our tax specialists.We assessed the completeness and accuracy of the disclosure of deferred tax assets against the disclosure requirements in IAS 12.</arr:KeyAuditMattersAudit>
<arr:StatementOnManagementsReviewAuditorsReportOnAuditedFinancialStatements contextRef="ctx-1" id="f1__s10__7__212" xml:lang="en">Statement on Managementâs ReviewManagement is responsible for Man-agementâs Review p. 1-112 and p. 174-184.Our opinion on the Financial State-ments does not cover Managementâs Review, and we do not as part of the audit express any form of assurance conclusion thereon.In connection with our audit of the Financial Statements, our responsi-bility is to read Managementâs Review and, in doing so, consider whether Managementâs Review is materially inconsistent with the Financial State-ments or our knowledge obtained in the audit, or otherwise appears to be materially misstated. Moreover, we considered whether Managementâs Review includes the disclosures required by the Danish Financial Statements Act. This does not include the requirements in para-graph 99 a related to the Sustainability Statement covered by the separate auditorâs limited assurance report hereon.Based on the work we have per-formed, in our view, Managementâs Review is in accordance with the Consolidated Financial Statements and the Parent Company Financial Statements and has been prepared in accordance with the requirements of the Danish Financial Statements Act, except for the requirements in para-graph 99 a related to the Sustainability Statement, cf. above. We did not identify any material misstatement in Managementâs Review.</arr:StatementOnManagementsReviewAuditorsReportOnAuditedFinancialStatements>
<arr:StatementOfExecutiveAndSupervisoryBoardsResponsibilityForFinancialStatements contextRef="ctx-1" id="f1__s10__7__213" xml:lang="en">Managementâs responsibilities for the Financial StatementsManagement is responsible for the preparation of consolidated financial statements and parent company financial statements that give a true and fair view in accordance with IFRS Accounting Standards as adopted by the EU and further requirements in the Danish Financial Statements Act, and for such internal control as Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.In preparing the Financial Statements, Management is responsible for assessing the Groupâs and the Parent Companyâs ability to continue as a going concern, disclosing, as applica-ble, matters related to going concern and using the going concern basis of accounting unless Management either intends to liquidate the Group or the Parent Company or to cease opera-tions, or has no realistic alternative but to do so.</arr:StatementOfExecutiveAndSupervisoryBoardsResponsibilityForFinancialStatements>
<arr:StatementOfAuditorsResponsibilityForAuditAndAuditPerformed contextRef="ctx-1" id="f1__s10__7__214" xml:lang="en">Auditorâs responsibilities for the audit of the Financial StatementsOur objectives are to obtain reason-able assurance about whether the Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorâs report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark will always detect a material misstatement when it exists. Mis-statements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influ-ence the economic decisions of users taken on the basis of these Financial Statements.As part of an audit in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: â Identify and assess the risks of material misstatement of the Finan-cial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evi-dence that is sufficient and appro-priate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. â Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of express-ing an opinion on the effectiveness of the Groupâs and the Parent Com-panyâs internal control. â Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management. â Conclude on the appropriateness of Managementâs use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncer-tainty exists related to events or conditions that may cast significant doubt on the Groupâs and the Par-ent Companyâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorâs report to the related disclosures in the Financial State-ments or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditorâs report. How-ever, future events or conditions may cause the Group or the Parent Company to cease to continue as a going concern. â Evaluate the overall presenta-tion, structure and content of the Financial Statements, including the disclosures, and whether the Financial Statements represent the underlying transactions and events in a manner that gives a true and fair view. â Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or busi-ness units within the group as a basis for forming an opinion on the Consolidated Financial Statements. We are responsible for the direc-tion, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our audit opinion.We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independ-ence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence and, where applicable, actions taken to eliminate threats or safeguards applied.From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Financial Statements of the current period and are therefore the key audit matters. We describe these matters in our auditorâs report unless law or regulation precludes public disclosure about the matter.</arr:StatementOfAuditorsResponsibilityForAuditAndAuditPerformed>
<arr:AuditorsReportOnXbrlTagging contextRef="ctx-1" id="f1__s10__7__215" xml:lang="en">Report on compliance with the ESEF RegulationAs part of our audit of the Financial Statements we performed procedures to express an opinion on whether the annual report of NKT A/S for the financial year 1 January to 31 December 2025 with the filename nkt-2025-12-31-en.zip is prepared, in all material respects, in compliance with the Commission Delegated Regulation (EU) 2019/815 on the European Single Electronic Format (ESEF Regulation) which includes requirements related to the preparation of the annual report in XHTML format and iXBRL tagging of the Consolidated Financial Statements including notes.Management is responsible for pre-paring an annual report that complies with the ESEF Regulation.This responsibility includes: â Preparation of the annual report in XHTML format; â Selection and application of appro-priate iXBRL tags, including exten-sions to the ESEF taxonomy and the anchoring thereof to elements in the taxonomy, for all financial infor-mation required to be tagged using judgement where necessary; â Ensuring consistency between iXBRL tagged data and the Con-solidated Financial Statements presented in human-readable for-mat; and â For such internal control as Man-agement determines necessary to enable the preparation of an annual report that is compliant with the ESEF Regulation.Our responsibility is to obtain reason-able assurance on whether the annual report is prepared, in all material respects, in compliance with the ESEF Regulation based on the evidence we have obtained, and to issue a report that includes our opinion. The nature, timing and extent of procedures selected depend on the auditorâs judgement, including the assessment of the risks of material departures from the requirements set out in the ESEF Regulation, whether due to fraud or error. The procedures include: â Testing whether the annual report is prepared in XHTML format; â Obtaining an understanding of the companyâs iXBRL tagging process and of internal control over the tag-ging process; â Evaluating the completeness of the iXBRL tagging of the Consolidated Financial Statements including notes; â Evaluating the appropriateness of the companyâs use of iXBRL ele-ments selected from the ESEF tax-onomy and the creation of exten-sion elements where no suitable element in the ESEF taxonomy has been identified; â Evaluating the use of anchoring of extension elements to elements in the ESEF taxonomy; and â Reconciling the iXBRL tagged data with the audited Consolidated Financial Statements.In our opinion, the annual report of NKT A/S for the financial year 1 Jan-uary to 31 December 2025 with the file name nkt-2025-12-31-en.zip is prepared, in all material respects, in compliance with the ESEF Regulation.</arr:AuditorsReportOnXbrlTagging>
<arr:SignatureOfAuditorsPlace contextRef="ctx-1" id="f1__s10__7__216" xml:lang="en">Hellerup</arr:SignatureOfAuditorsPlace>
<arr:SignatureOfAuditorsDate contextRef="ctx-1" id="f1__s10__7__217">2026-02-25</arr:SignatureOfAuditorsDate>
<cmn:NameOfAuditFirm contextRef="ctx-59" id="f1__s10__7__219" xml:lang="en">PricewaterhouseCoopersStatsautoriseret Revisionspartnerselskab</cmn:NameOfAuditFirm>
<cmn:NameOfAuditFirm contextRef="ctx-58" id="f1__s10__7__218" xml:lang="en">PricewaterhouseCoopersStatsautoriseret Revisionspartnerselskab</cmn:NameOfAuditFirm>
<cmn:IdentificationNumberCvrOfAuditFirm contextRef="ctx-58" id="f1__s10__7__220">33771231</cmn:IdentificationNumberCvrOfAuditFirm>
<cmn:IdentificationNumberCvrOfAuditFirm contextRef="ctx-59" id="f1__s10__7__221">33771231</cmn:IdentificationNumberCvrOfAuditFirm>
<cmn:NameAndSurnameOfAuditor contextRef="ctx-58" id="f1__s10__7__222" xml:lang="en">Kim Tromholt</cmn:NameAndSurnameOfAuditor>
<cmn:NameAndSurnameOfAuditor contextRef="ctx-59" id="f1__s10__7__225" xml:lang="en">Søren Ãrjan Jensen</cmn:NameAndSurnameOfAuditor>
<cmn:DescriptionOfAuditor contextRef="ctx-58" id="f1__s10__7__223" xml:lang="en">State Authorised Public Accountant</cmn:DescriptionOfAuditor>
<cmn:DescriptionOfAuditor contextRef="ctx-59" id="f1__s10__7__226" xml:lang="en">State Authorised Public Accountant</cmn:DescriptionOfAuditor>
<cmn:IdentificationNumberOfAuditor contextRef="ctx-58" id="f1__s10__7__224">mne33251</cmn:IdentificationNumberOfAuditor>
<cmn:IdentificationNumberOfAuditor contextRef="ctx-59" id="f1__s10__7__227">mne33226</cmn:IdentificationNumberOfAuditor>
<arr:AuditorsReportOnSubstainabilityReport contextRef="ctx-1" id="f1__s10__7__229" xml:lang="en">Independent auditorâs limited assurance report on the Sustainability StatementTo the stakeholders of NKT A/SLimited assurance conclusionWe have conducted a limited assur-ance engagement on the sustainability statement of NKT A/S (the âGroupâ) included in Managementâs Review p. 57 â 112 and p. 174â 184, for the financial year 1 January â 31 Decem-ber 2025 (the âSustainability State-mentâ).Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention that causes us to believe that the Sustainability Statement is not prepared, in all material respects, in accordance with the Danish Finan-cial Statements Act paragraph 99 a, including: â compliance with the European Sustainability Reporting Standards (ESRS), including that the process carried out by Management to identify the information reported in the Sustainability Statement (the âProcessâ) is in accordance with the description set out in the section Double Materiality Assessment p. 63-66 and Double Materiality Assessment Methodology p. 179-180; and â compliance of the disclosures in the section âEU Taxonomyâ within the environmental section p. 84-85 and EU Taxonomy tables p. 181-184 of the Sustainability Statement with Article 8 of EU Regulation 2020/852 (the âTaxonomy Regulationâ).Basis for conclusion We conducted our limited assurance engagement in accordance with International Standard on Assurance Engagements (ISAE) 3000 (Revised), Assurance engagements other than audits or reviews of historical financial information (âISAE 3000 (Revised)â) and the additional requirements appli-cable in Denmark. The procedures in a limited assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement. Consequently, the level of assur-ance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been per-formed.We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion. Our responsibilities under this stand-ard are further described in the Audi-torâs responsibilities for the assurance engagement section of our report. Our independence and quality managementWe are independent of the Group in accordance with the International Eth-ics Standards Board for Accountantsâ International Code of Ethics for Profes-sional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark. We have also fulfilled our other ethical responsibili-ties in accordance with these require-ments and the IESBA Code.Our firm applies International Stand-ard on Quality Management 1, which requires the firm to design, imple-ment and operate a system of quality management including policies or procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.Managementâs responsibilities for the Sustainability StatementManagement is responsible for designing and implementing a process to identify the information reported in the Sustainability State-ment in accordance with ESRS and for disclosing this Process as included in the section Double Materiality Assessment p. 63-66 and Double Materiality Assessment Methodology p. 179-180 of the Sustainability State-ment. This responsibility includes: â understanding the context in which the Groupâs activities and busi-ness relationships take place and developing an understanding of its affected stakeholders; â identification of the actual and potential impacts (both negative and positive) related to sustainability matters, as well as risks and oppor-tunities that affect, or could rea-sonably be expected to affect, the Groupâs financial position, financial performance, cash flows, access to finance or cost of capital over the short-, medium-, or long-term; â assessment of the materiality of the identified impacts, risks and oppor-tunities related to sustainability matters by selecting and applying appropriate thresholds; and â making assumptions that are rea-sonable in the circumstances.Management is further responsible for the preparation of the Sustaina-bility Statement, which includes the information identified by the Process, in accordance with the Danish Finan-cial Statements Act paragraph 99 a, including: â compliance with the ESRS; â preparing the disclosures as included in the section âEU Tax-onomyâ within the environmental section p. 84-85 and EU Taxonomy tables p. 181-184 of the Sustain-ability Statement, in compliance with Article 8 of the Taxonomy Regulation; â designing, implementing and maintaining such internal control that Management determines is necessary to enable the preparation of the Sustainability Statement that is free from material misstatement, whether due to fraud or error; and â selection and application of appro-priate sustainability reporting meth-ods and making assumptions and estimates that are reasonable in the circumstances. Inherent limitations in preparing the Sustainability StatementIn reporting forward-looking infor-mation in accordance with ESRS, Management is required to prepare forward-looking information on the basis of disclosed assumptions about events that may occur in the future and possible future actions by the Group. Actual outcomes are likely to be different since anticipated events frequently do not occur as expected.Auditorâs responsibilities for the assurance engagementOur responsibility is to plan and perform the assurance engagement to obtain limited assurance about whether the Sustainability Statement is free from material misstatement, whether due to fraud or error, and to issue a limited assurance report that includes our conclusion. Misstate-ments can arise from fraud or error and are considered material if, individ-ually or in the aggregate, they could reasonably be expected to influence decisions of users taken on the basis of the Sustainability Statement as a whole. As part of a limited assurance engage-ment in accordance with ISAE 3000 (Revised) we exercise professional judgement and maintain professional scepticism throughout the engage-ment. Our responsibilities in respect of the Process include: â Obtaining an understanding of the Process, but not for the purpose of providing a conclusion on the effec-tiveness of the Process, including the outcome of the Process; â Considering whether the informa-tion identified addresses the appli-cable disclosure requirements of the ESRS; and â Designing and performing pro-cedures to evaluate whether the Process is consistent with the Groupâs description of its Process, as disclosed in the section Double Materiality Assessment p. 63-66 and Double Materiality Assessment Methodology p. 179-180. Our other responsibilities in respect of the Sustainability Statement include: â Identifying where material misstate-ments are likely to arise, whether due to fraud or error; and â Designing and performing proce-dures responsive to disclosures in the Sustainability Statement where material misstatements are likely to arise. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.Summary of the work performedA limited assurance engagement involves performing procedures to obtain evidence about the Sustainabil-ity Statement. The nature, timing and extent of procedures selected depend on professional judgement, including the identification of disclosures where material misstatements are likely to arise, whether due to fraud or error, in the Sustainability Statement.In conducting our limited assurance engagement, with respect to the Pro-cess, we: â Obtained an understanding of the Process by performing inquiries to understand the sources of the information used by Management; and reviewing the Groupâs internal documentation of its Process; and â Evaluated whether the evidence obtained from our procedures about the Process implemented by the Group was consistent with the description of the Process set out in the section Double Materiality Assessment p. 63-66 and Double Materiality Assessment Methodol-ogy p. 179-180.In conducting our limited assurance engagement, with respect to the Sus-tainability Statement, we: â Obtained an understanding of the Groupâs reporting processes rele-vant to the preparation of its Sus-tainability Statement, including the consolidation processes, by obtain-ing an understanding of the Groupâs control environment, processes and information systems relevant to the preparation of the Sustaina-bility Statement but not evaluating the design of particular control activities, obtaining evidence about their implementation or testing their operating effectiveness; â Evaluated whether the information identified by the Process is included in the Sustainability Statement; â Evaluated whether the structure and the presentation of the Sustain-ability Statement are in accordance with the ESRS; â Performed inquiries of relevant per-sonnel and analytical procedures on selected information in the Sus-tainability Statement; â Performed substantive assurance procedures on selected information in the Sustainability Statement; â Where applicable, compared dis-closures in the Sustainability State-ment with the corresponding dis-closures in the Financial Statements and Managementâs Review; â Evaluated the methods, assump-tions and data for developing estimates and forward-looking information; and â Obtained an understanding of the Groupâs process to identify taxon-omy-eligible and taxonomy-aligned economic activities and the corre-sponding disclosures in the Sus-tainability Statement.</arr:AuditorsReportOnSubstainabilityReport>
<arr:AddresseeOfAuditorsReportOnSubstainabilityReports contextRef="ctx-1" id="f1__s10__7__230" xml:lang="en">To the stakeholders of NKT A/S</arr:AddresseeOfAuditorsReportOnSubstainabilityReports>
<arr:IdentificationOfMattersOnWhichAssuranceReportIsProvidedAndDescriptionOfAssuranceEngagementSubstainabilityReport contextRef="ctx-1" id="f1__s10__7__231" xml:lang="en">Limited assurance conclusionWe have conducted a limited assur-ance engagement on the sustainability statement of NKT A/S (the âGroupâ) included in Managementâs Review p. 57 â 112 and p. 174â 184, for the financial year 1 January â 31 Decem-ber 2025 (the âSustainability State-mentâ).</arr: