50Hertz has selected NKT to provide several 525 kV XLPE high-voltage direct current (HVDC) on- and offshore power cable systems for the ongoing development of the German power grid. The award is a multi-year framework agreement with firm contracts for five specific turnkey projects enabling the German transition to renewable energy. The five projects have a combined order value of approx.

EUR 3.5 billion which sets a new company record for NKT and increases the high-voltage order backlog to more than EUR 10bn. The contracts awarded to NKT under the framework agreement are for the five projects SuedOstLink+ (SOL+), Ostwind 4, DC32 (NordOstLink+), LanWin 6 and the German part of the Bornholm Energy Island project, covering approx. 2.500 km of core cables.

The five projects range from offshore wind export cable systems, onshore energy connections as well as a hybrid interconnector for an offshore energy island and are expected to be commissioned from 2029 to 2035. Additional HVDC projects can be added under the framework agreement. In recent years, NKT has invested in high-voltage capabilities and capacity in Cologne, Germany, and Karlskrona, Sweden, after growing its order backlog significantly.

In Second Quarter 2023, NKT launched an approx. EUR 1bn investment program in Karlskrona to support the transition to renewable energy. The award from 50Hertz is an excellent fit with the decisions made to expand high-voltage production capacity and add a new market leading cable-laying vessel to the fleet.

NKT will continue to assess the need for additional investments across both sites. Increased sustainability focus: To ensure a strong sustainability profile of the upcoming projects, 50Hertz has included Environmental Cost Indicators as key selection criteria in the projects awarded to NKT. Thereby both parties agree to the highest standards for the environmental focus in the projects and set a continuous incentive to reduce the carbon footprint of the power cable systems. In order to decrease carbon emissions, NKT will produce the power cables at its high-voltage factories in Cologne and Karlskrona.

Both sites are operating on renewable electricity and are located close to the installation sites in the North Sea, Baltic Sea and in Germany thereby reducing the carbon footprint from transportation. Furthermore, NKT will complete the offshore cable installation using the cable-laying vessel NKT Victoria, which is one of the most energy and fuel-efficient in the industry, and/or the new market leading cable-laying vessel operational from 2027. With the project awards, 50Hertz continues the ambitious extension of its high-voltage transmission grid and increased generation of energy from offshore wind as a key element in the acceleration of the Energiewende ?

Germany?s long-term strategy for the transition to renewable energy by 2050. The order does not change the 2023 financial outlook for NKT. Key facts: Customer:50Hertz Transmission GmbH and 50Hertz Offshore GmbH; Combined contract value of five specific projects: Approx.

EUR 3.5 billion in market prices (EUR 3.1 billion in std. metal prices). Subjects in contracts: None.

All contracts are firm from 29 September 2023. Project specifications: SuedOstLink+ (SOL+): Northern extension of the onshore German corridor. SuedOstLink with approx.

440 km of core cables. Ostwind4: Approx. 345 km of core cables to connect 2GW offshore wind in the Baltic Sea.

DC32 (NordOstLink+): Onshore corridor projects with approx. 375 km of core cables. LanWin 6: Approx.

900 km of core cables to connect 2GW offshore wind in the North Sea. Bornholm Energy Island (German part): Offshore interconnection of the energy island to be located close to Danish island Bornholm located in the Baltic Sea. Approx.

490 km of core cables. Cable specifications: In total 2.500 km of core cables (DC and metallic return). Schedule: The five projects are expected to be commissioned from 2029 to 2035.