Post Q1 Update and CEO Roadshow

Research evidence excerpt

Post Q1 Update and CEO Roadshow

ely tracking adoption. PREV 2.45

US channel checks supportive. US distributors are pointing to a similar slower start to the

year that can easily be made up in larger quarters coming, however. Strength in data centers,

Exhibit 1 - Seeing acceleration YTD in US PPIutility and industrial segments, offset by weakness in residential and parts of commercial for electrical equipment, components and

construction. Data centers continue to be the main driver of growth, with visibility extending, cables that should benefit distributors along

seeing large orders being 2-3x historical average order size and further benefits from the trends with copper prices at record highs (YoY %

change)

to behind the meter solutions. Labour remains the key challenge to meet data center demand. 16 50

14 40No impact from Middle East conflict seen so far except higher cost of shipping, some risk

30into H2 if oil prices stay elevated. Distributors point to "numbness" to price increases from 1210

customers, positive given continued inflationary pressures. 86 2010

Raising estimates on pricing, PT to €43.70 - Buy. We raise adj. EPS estimates ~1% and sit 20 0-10

~2-3% ahead of VA cons for 2026-2028e. We broadly maintain organic growth for the period

but see a mix shift with more price vs. volume that should positively impact margins, driven . Average US PPI Electrical categories Copper price (RHS)

by stronger OEM pricing and inflationary pressures from the Middle East. This comes on top Source: US Bureau of Labor Statistics, Bloomberg

of the copper price upside already seen, as the metal is reaching new highs this week ($13.5k

spot vs. $11k in guidance). While some risks to volume remain into H2, we see an overall net