Fugro N.V.

Very welcome to the 2024 full year results presentation of Fugro. Very welcome to everyone here in the room, but also online. Thank you for dialing in. We'll take you through a presentation today as normal. And then after that, we open up for questions for the people here available in the room. So let me start first by giving you a few highlights of the financials for 2024. We improved our margins significantly in the year, and Barbara will dive into some of the details showing you the regional split, but I can already say that we're very pleased that three out of the four regions actually produced double-digit margins. So this is good to see and also good to mention that both land and marine have improved actually the margins compared to last year. Operating cash flow increased by 20%, also very good, and obviously as a result of a good net result and cash generation, we are very pleased to announce the increase in the dividends to 75 cents, euro cents per share compared to obviously 40 cents last year. The strong EBIT improvement also was developed with actually some headwinds in the Americas and the Middle East markets. In the Americas obviously we were confronted with lower activity in the United States specifically due to the uncertainties around the elections. In the Middle East we have spoken about that. The revenue was impacted by cautious spending from several oil companies but also due to the conflicts in the region. Overall, we achieved a growth rate currency comparable of 3.6%. Some key highlights for 2024. We delivered against our midterm targets. And that's important because those targets were set for 2027. And we already delivered the EBIT margin, free cash flow, and also the ROCHI, the return on capital employed well within those targets. And the strong bottom line performance is a direct consequence of our resilient and well diversified business and I will show you later on how we now split in the different market segments and geographies. Over the past few years we have significantly improved our performance and financial position. And we're well on track with implementing our new strategy, Path to Profitable Growth. No, obviously, towards the full potential, Path to Profitable Growth was our former strategy, still really embedded in my brain. Towards the full potential is our new strategy, and we're well on track in the first year delivering on that. having a good plan and we'll stick to that plan. We're also well equipped to deliver on capturing emerging opportunities that we see across our markets and I will also say a few more words about that a little bit later because we have also new market segments where we see opportunities. And that is done all under the probably we could say uncertain geopolitical environment and for instance also in the light of the setbacks that we see now for instance in the offshore wind in the United States. The market fundamentals in general for Fugro are strong for the mid and longer term. With the world population growing by 25% to 10 billion, there's a lot of need for food, energy, water, and specifically the demand for energy in the upcoming years will continue to grow, and that's for food growth very important, and I will talk a bit more about how versatile we are to deliver services in the various energy markets. But also substantial infrastructure developments and addressing the climate change by adapting the environment is an important growth area for Fugro. Therefore, going forward, we're very confident that we can continue to deliver against our mid-term targets. If we go beyond the financial targets, here a sheet that we have produced for you already in the past, also in the Capital Markets Day with non-financial targets. On the left side, the people, the more social related topics. It's obviously very good to see that we managed to increase our employee engagement to 36. The EMPS, the Net Promoter Score, moved up from 36. from a lower to 36 now and we have actually a target of above 30. We already reached that quite early in this whole period. Also the turnover rate came down so it's good to see that we have really made progress on the people side. People are obviously at the heart of Fugro. It's very important that we make progress there. On the net zero roadmap, we have a clear roadmap in place to further develop reduction of emissions. You can see here the results of our renewable target, 860 million in renewables for the whole of Fugro, and also on the reduction of CO2. We make progress, although there will be fluctuation year out, and especially now we have added a number of additional vessels, and you see a bit of a response in that specific reduction number right now. But over time, we will catch up again towards that mid-term. It's also good that on the top right side you see the client engagement and the net promotion score for delivering high quality services at a very nice range of 61. So those are the targets that we have for non-financials for the mid-term and we'll continue to follow these and present to you how this is progressing over time. If I then come back on the strategy towards full potential, we have three pillars in the strategy, and I want to dive into one of these pillars one by one. We have made very clear that the first pillar, growing and transforming with the current business, is going to generate in the midterm most of the value. The second pillar, expanding into development segments, there is lots of opportunities there and we see that coming in and that will start to generate returns in the next three to five years. And then we'll see that being more on the board and more visible. But also in the upcoming period, we'll already see projects obviously coming in. But to become more substantial, it will take a little bit longer. And last but not least, the third pillar there, building recurring revenue. We'll give you a few examples there. That's really in the longer term, five to ten years to be significant, generating returns for Fugro in the longer term. So first, the first pillar, grow and transform with our current business. First and foremost, on the right side, you see some data points, things that we have done over the last period of time. We have said that we want to expand our capacity. Specifically, you have seen the announcements around the geotechnical fleet. We have added, since the Capital Markets Day end of 2023, three additional owned vessels, geotechnical vessels. That program of expanding our own capacity, so to say, on the geotechnical side is coming to an end. We're still modifying some of the vessels that we have bought. They will come to the market during the course of this year, and then we have basically coming to the end of this program. We've hired more than 2,000 people and trained those people, which is very important, as I said, because the knowledge of Fugro is really in the heart of our professionals that we have working for us. If you talk about transforming the capabilities, then this is very much related to also the remote solutions that we're bringing in. We're bringing in these uncrewed service vessels to do things from a distance with no people out there in the hazardous environment. So it's better for the CO2 emissions. It's better for the safety side for the people. We're more efficient. We can have the data quicker to the customer. So there are a lot of things that we're doing there remotely. This is not only the uncrewed service platforms, it's also the positioning work that we do, the navigation work, the construction support work that we do more and more remotely out of our control centers. Another good one to mention is the opportunity that we have with a new technology that we're developing which is called Ground IQ and that's on the land business side. This is a geophysical non-intrusive system where we can actually measure also geotechnical parameters in the subsurface combined with drilling. and cone penetration, and we can provide similar parameters as we would normally do for site investigation and site screening purposes. And this is quite revolutionary, and we have some patents on it as well, and if we're really successful, and we're running a number of projects now, and we see the successes coming in, if we can expand further on this, then we really will make a difference also on the land side, changing the way the data is collected for larger and complex projects. speeding up the answers for our customers, also making it more efficient and more cost effective. And then we are doing all sorts of things for the, yeah, the optimization. Digitalization of processes, but also our laboratories are becoming more sophisticated, more automated, and also in general, we're really driving that operational efficiency up. We move then to the second pillar, the developing segments, and these are in our existing markets, but they offer us opportunities. We have a few listed here on the board. I want to quickly mention them. First and foremost, you have seen the announcement on the acquisition that we have done, Earth observation capabilities in EOMAP that we have recently acquired. This is really adding capacity as we announced in our strategy to add specific, complementing our services with expertise and technologies that we do not have in-house. And this is a company that we were using already as a supplier for multiple projects and it's really strengthening our portfolio of services right now. A bit adjacent in the ocean health business, we are actually doing already a lot of environmental baseline studies. We are also there further developing the capabilities on the biodiversity side. So we can do more for any project out there at sea to do these environmental baseline studies and to actually monitor what is happening with the underwater environment and basically the flora and fauna in those areas. If you then move to CCS, carbon capture usage and storage projects, we see those popping up almost everywhere in the world now. We have already done projects in the Gulf of Mexico, in Indonesia, India, Norway, UK, Netherlands, many places we have been involved in CCS projects, and it's coming up now in discussions almost everywhere. Two weeks ago I was in Brazil, also Petrobras is now doing pilot projects with CCS. Everywhere where you have normal developments of oil and gas, they will probably combine it with some carbon capture and storage work. But also, certain energy companies are specifically looking at, for instance, direct air capture or other ways to store CO2, buy it from the market, store it. It's actually a new service, a new business area that they see developing. If you then look on the right side, we haven't heard too much about that yet, but maybe you picked up from the news that we have been doing some pilot projects with defense here in the Netherlands to do some work on our USV to see how we can do inspections of existing infrastructure on the seabed, critical infrastructure on the seabed. And we see some more opportunities out there. Obviously, we all understand what is happening. We read the newspapers. And there's a lot required there in the North Sea, but also in other areas of the world. And Fugro is doing inspection and monitoring work for decades already everywhere in the world. And this is our core expertise. So we see opportunities to work together with the governments to supply these services as well. So I would advise you to follow Fugro carefully in the upcoming periods because we'll have some more news to share with you. If we then go to the third pillar of our strategy, also to give you some progress and details on that, this is really based on changing the portfolio of Fugro. So we are a 90 plus percent project-based company and we have set in our strategy rollout that we want to become a different type of business where we probably will go to 70% projects and maybe 30% recurring revenue based on geo data, on software and hardware solutions. So we see some examples here on the board. I will name a few. For instance, Geodin, which was a golden nugget that we developed already years ago in Fugro in Germany. And we have now repackaged, rewritten the software package Geodin, combined it also with the services that Autodesk is delivering. And this really allows us to expand the scale and scale it up and have more clients that really work on the infrastructure side, development of infrastructure, to really look properly at the geotechnical data, geophysical or the borehole data, because that's better stored and they can use that in a better manner. So this is a great example of what we're doing in this field. It will take a little bit longer, but it's really progressing. On the other side, you see some hardware-related data solutions. Totalite is a great example. We developed also a patented solution, very revolutionary, to change traditional land survey technologies to do monitoring, millimeter, submillimeter monitoring, for tunnels, bridges, roads, all these kind of things, movements, settlements, we can measure. So this is now going through several pilot projects and we expect in the upcoming years that we can further scale this up and expand the production of these systems. Sea watch early warning systems, those solutions are based on our existing buoys that we have. We spoke about the wind lidar buoys where we do wind measurements. But we can use those buoys also with different sensors, with different technology on the buoys, and maybe we can even use them to do some monitoring at sea, what is happening on the surface or even on the subsurface. So we're investigating and working on some programs there as well. So those are the three pillars of our strategy. We're really progressing very well with that strategy towards full potential. Then, talking about the diversity of our business and our markets that we serve, this is one of my favorite slides, as you know. We have a very nicely diversified portfolio of markets that we serve now. 37% oil and gas, 38% renewables, and the rest, infrastructure and water, close to 25%. So you see on the right side a very nice spread of different clients that we serve. And this is also very important because we can move between the clients, we can move between the markets. It's the same expertise that we deliver. So one of the things we'll talk about a little bit later around the Americas, okay, if it's shifting from offshore wind to oil and gas or LNG or maybe some other work, we can shift our assets and people to different markets. This is very important because this makes Fugro now a very resilient company and it's actually shown also in the fourth quarter in 2024 results where we show that we can make money even if the markets actually change and move. So it's very important to see how this is developing further. Some showcase projects maybe to mention. Also always good to have some tangible examples. I'm not going to dive into all of them. You see, I was in Brazil. We have now launched the first USV, include service vessel, in Brazil. So we are doing the first projects with Petrobras right now. We launched or we opened up a remote control center there as well. And this is just the start of where this business is going because there's a lot required there. Brazil is a growing country with the services that are required there. And I think this is a great example of how we are further developing our expertise in different markets and different segments. Also in the middle there on the right side, you see the wind development in Japan. We'll talk a little bit more about winds, but definitely in Japan, you see that progressing as well. It's still on the board and it will continue to develop. And they have a high ambition for renewable energy development there. On the right side, even an example on CCS carbon capture project. Okay, I would like to dive into the markets a little bit more in detail. This is a very full slide. On the left side, maybe some generic information on the global trends. Don't have to necessarily dive into those in detail because I think we all read the newspaper. We obviously see a lot of things happening on the macroeconomic side. with changes in inflation, inflation coming down, still high in some countries, but also concerns around the economic slowdown in China that might affect actually the global growth. And then if we look at energy transition, you see obviously changes in the world. We just spoke about America, so we'll come back on that, but you also see that there's maybe some shifts. Now we see the Clean Infrastructure Deal in Europe, basically an answer from Europe on a conference that was held two years ago, the North Sea Summit, where companies, I was there myself as well, where companies and governments came together to say, what do we need to do to further enhance the development of offshore wind in Europe? and there were a lot of recommendations given by companies there and basically this is the answer to it. So we see this as a positive development where now this is also really stimulated to further pick up again in Europe which is needed because some of the operators are obviously looking very carefully at what project is economically viable to develop and what not. But be careful, we also said for the last couple of years some of these projects or these ambitions are so high there's actually no capacity to deliver on that, so it's actually also not that that market is maturing and actually deciding okay what is economically viable and what's not. So I think it's a great answer from Europe to what is happening now in the Americas and investments that maybe are not done by operators in the Americas might now move to Europe creating a better environment. So let me dive into some of these markets starting with offshore wind. So offshore wind globally. First and foremost, it's important to understand how much Fugro does in offshore wind. We just saw it, 863 million is in the renewables business, which is the majority is offshore wind. How is that spread around the world? You see that on the left side of this picture. 20% of the $863 million is in the Americas, not in the U.S., but in the Americas. So if you talk about how much is that of the total revenue of Fugro, so 7% of the total revenue of Fugro is offshore wind business in the Americas. Now 65% is the majority of our renewables business is in Europe and then the rest is in Asia Pacific and a little bit happening in Middle East India. And if I talk about Middle East India, specifically India that is developing all these opportunities because they have a very large project on the board of 37 gigawatts by 2030. That's very ambitious and that's really starting right now because they are already several years working on it and now we see that this is progressing. So on the Americas I will come back with another slide to dive into a bit more detail and say a few more things about it. I already mentioned for Europe the wind power package or the clean infrastructure deal that is now launched. We see that this market will continue to develop with the comment that obviously the market is maturing and that operators are also more critical in where to develop and what is economically viable and what not. If we talk about Americas, I will dive into that, but specifically, it's not only the USA that has opportunities there. There's also Latin America. We see big opportunities there in Colombia, for instance, but also in Brazil, specifically Brazil, where they're really starting to develop the offshore wind capabilities now. Asia Pacific is continuing. I already mentioned Japan, but also in Korea, still very buoyant. Taiwan as well. Australia is happening, several licenses are out there. How much will be built, we'll have to see in the future, but at least the investigations, the ground investigations are done in several fields there as we speak. Then we also see Philippines, Vietnam coming in probably in a few years from now. That will take a little bit longer. And I already spoke about India. If we then go to the Americas and specifically the USA, what is happening there? And obviously we get a lot of questions. Once again, 7% of the total revenue of Fugro is in offshore wind in the Americas, not specifically in the US. And then we see basically three categories. You have projects that have licenses. and that have a power purchase agreement. So they're already going. And those projects will very likely continue and they are continuing as we speak. Then you have projects that have licenses but do not have a power purchase agreement. So you have nobody that wants to take the power for a certain price from the operator. That is obviously still a problem and those will be probably affected to some extent right now and they put on pause as they say. And then we have many projects, 28 projects here on the board that are no licenses or they have no licenses and that have no power purchase agreements. And those are obviously now at stake and will influence the amount of marine site characterization work that needs to be done in the upcoming period. Now, this business is reliant on a lot of blue collar workers and the whole industry in the US as well. So it is still a bit of a question mark how this further develops. Because in the upcoming period, policies need to be written. There's a lot of narrative from the new president out there, but this needs to be translated into policies. And those policies will be all written in the reconciliation bill that comes out mid-year. And there we will see how these policies exactly pan out to be. And then you can say, okay, which project will continue or will not continue, et cetera, et cetera. But we do see already that the bottom part of this picture will impact certainly the beginning of this year or the starting and we do see that this will be paused for longer. We already saw cancellation also of a project in the fourth quarter which has also affected directly our numbers in the fourth quarter in the US. Zoom out again a little bit, not the United States only, but Americas. Then we see lots of opportunities in the United States and in the Americas. And we have categorized this for you. I will not step through everything, but you can see how much opportunities these markets have, markets, and obviously we grow with the markets, so we see more opportunities if the markets grow faster. Oil and gas is coming back, for sure. We see deep water coming back in, in Latin America, but also in the United States is being discussed. So in the last couple of years, under the Biden administration, we only saw three licenses issued in the Gulf of Mexico. And now compared to maybe Trump's first period, there were more than 40 licenses in a similar period issued. So there's a big difference. So we can clearly see that oil and gas will be unleashed, if you want to call it like that. And then gas also, natural gas, liquid natural gas, LNG will continue to go back on the board. So we had the Biden ban over the last couple of years that is now lifted, but still also these markets are waiting for policies and for clear descriptions how these will further develop. And that's applicable also for certain areas of the infrastructure where we see lots of opportunities on critical minerals, very high on the agenda for the United States and for the world, Europe as well. to really not be dependent on China or Russia in that field. Another one to mention, and I already did, is the carbon capture storage. We do see that the administration there in the US is also stimulating these policies because they see opportunities for the large energy companies. Water, climate and nature, we still feel in the Americas there are lots of opportunities that we can further develop. So, if I zoom out again and talk about the markets in general, and these are, yeah, market pictures that are generated from the standard databases for Sea of Shore, Rystad, and those kind of things. So, this is a snapshot what it is today. If you wait a quarter, then you will have slightly different numbers again. But I think it's important to say that in the mid to longer term, the market fundamentals for Fugro are positive. And we also see that in our developments in the business. We have said we are affected, obviously, certainly at the beginning of this year, 2025, or in the first period of this year, by what is happening in the United States at the moment. and also maybe settling in some of these new markets further developing. But in overall, we gave the guidance, and we'll come back on that, that we will grow in 2025. So important for this picture is, and I want to emphasize that again, the world needs energy. And energy means development. And for Fugro, it does not matter if it is oil and gas, traditional energy, LNG, or offshore wind. We always say the world should stop with coal, should reduce oil, accept gas and accelerate renewables. And with that, I would like to close out this session and hand over to Barbara for more details on the financials.

Thanks Mark and welcome all. Thanks for joining us in the room and also on the webcast. As usual, I would like to start with a quick glance of the highlights of our results, only making a couple of brief observations and elaborate further when presenting the following slides. We realized strong bottom line results in a year in which our top line growth was slightly lower than anticipated. We realized a strong improvement in our EBITDA and EBIT and in three out of four regions we posted double digit EBIT margins both in marine and land activities. The increase in EBITDA has translated to a 66 million higher operating cash flow, a 20% improvement. And we raised our dividend to euros 75 cents per share. And as Mark pointed out earlier, we delivered well against our midterm targets. An EBIT margin of 13.8% pre-cash flow of 7.1% and Orochi of 18.1%. So let's look at the trajectory. And this is a slide which shows the last 12 months. And here you can clearly see the structural year-on-year improvements. in our margins and that we delivered these in the last couple of years. And in combination with the top line expansion during the last years, we have a solid base going forward. And if we look at the same time period on a quarter by quarter basis, we've also been able to improve significantly. On a quarterly basis for Q4-24, we have been able to show a year-on-year top line growth of 1.8% currency comparable growth. And an EBIT margin expansion in Q4 from 12.2% in 24, which was 11.5% in 23. And now let's look at the underlying regional performance. Let's first look at marine. Marine revenue growth amounted to 5.5%, enabled by the expansion of the geotechnical fleet. Overall, vessel utilization was 70%, and the margin expanded to 15.9%. In Europe-Africa, we saw a strong growth in site characterizations, mainly in offshore wind, and the construction and support business. And this has translated into a further margin improvement, as you can see in the bridge, also as a result of favorable terms and conditions and strong operational performance. If we look at the Americas, you can see that revenues were significantly impacted last year. This was caused by the election year and the pausing of, in particular, offshore wind projects, caused by the uncertainty in change of administration. And due to strong and strict cost control, the region was able to maintain its margin, as you can see. In Asia Pacific, the third region, we saw a strong growth. in both the geotechnical site investigation for both oil and gas and offshore wind clients and more inspection and monitoring campaigns for oil and gas infrastructure. And the latter drove the margin improvement. And finally, in the Middle East, revenue and margin were strongly impacted by ongoing regional conflicts and cautious client spending compared to a very busy 2023 with the lower second project. And then we move into land. Land revenue decreased slightly by 2.2%. But it's encouraging to see that the margin improved to 7%. And this is what we've been working on and focusing on. And we've communicated before about this. We're not happy with the land margins, and we're working to improve those. In Europe-Africa, the revenue and margin expansion was mostly driven by nearshore projects, and the onshore site investigations restructuring in the UK, which we did around last summer, had a negative revenue impact of $17 million and a positive impact of $2 million. So you see a decrease on the top line, but an increase on the profitability. In the Americas, revenues and EBIT on land were lower as a consequence of the continued slow nearshore LNG market in the U.S. We've been talking quite a lot about it when the Biden ban was lifted. And that return of that market has been slower than anticipated. In Asia Pacific, we executed a major offshore wind project, which was near shore in Japan. And that was partly offset, that good result, by the slow infrastructure market in Hong Kong. And in the Middle East, we saw a scale back of some very large projects in Saudi Arabia. And still, as you can see, we have been able to improve the margin due to better project delivery. And now briefly some highlights of the 2024 bottom of the P&L. You can see that net finance costs decreased with 47 million due to foreign exchange gains. And this was primarily related to the appreciation of the US dollar compared to the devaluation in 23. If you look at the tax line, just like last year, we have been able to recognize previously unrecognized tax losses due to the improved business outlook. We have also recognized an additional liquidation loss related to CBAT. and a positive impact related to the tonnage tax regime. And this adds then up to 43 million, compared to what was 39 in 23, where we activated a lot of the deferred tax assets, mainly in Singapore and the US, and the liquidation loss in CBAT. Quite a big move. Bottom line, we report the highest net results Cash flow. Free cash flow as a percentage of revenue. 7.1%, which is well within our mid-term target range of 6% to 9%. Operating cash flow before working capital increased by 66 million. And this increase was offset by higher capital expenditure. And I will get back on CAPEX on the next slide. On the right side, you can see our working capital development. Thanks to an enhanced billing and cash collection, we realized a significant reduction, and I'm quite pleased about that. We're managing the working capital in a range, as mentioned before, between 10% to 15%, lowest end always being the end of the year, highest always at mid-year. So we are very pleased with the 7.6%. This does include some one-offs. Without those, we would be closer to 9%. In any event, a very excellent performance. If we look at CAPEX, CAPEX was $242 million, and that excludes the $23 million for the new head office that we're building. And it's just below our guidance of 250 million for the full year of 24. A significant part of the transformation and expansion CAPEX is related to the expansion and conversion of our geotechnical fleet in 24. We had the delivery and the conversion of the Sapphire, formerly known as the Sea Goldcrest. The finalization of the conversion of both the Fugrand Resilience and Resolve. And this expansion has already in 2024, as mentioned by Mark, contributed significantly to the bottom line and the cash generation, which is an important enabler of the success for our geotechnical business. In 2025, we anticipate capital expenditure of around 100 million for maintenance and sustaining Capex. and around 150 million, again, for ongoing expansion and transformation. And that, the speed of transformation, and I've said this before, it's really also dependent on the pace of the development of the opportunities that we see in the market. And Mark just highlighted some new segments, and we all, as mentioned, read the newspaper, and there's some opportunities we see in that. So that transformation, that path, we will continue on. And of course, all CAPEX is subject to strict capital return guidelines. And as communicated on the capital market today, we have a very clear capital allocation policy on how we allocate KPACs to certain buckets. Then we dusted off some slides from the capital market today to show our progress regarding our asset portfolio strategy and capital allocation. And as you know, we are investing in a gradual shift of our asset base towards asset lighter and low carbon solutions such as uncrewed service vessels. Around 40% of our revenue, including our land business, has a relatively low asset intensity. And we target a further decrease over time by increased utilization of remote and non-invasive technologies. Around 60% on the right hand side of the slide is relatively acid intensive. And in that we target a healthy balance between owned and chartered vessels. And this provides us with the security of supply on the one hand and flexibility towards the future on the other hand. With chartered vessels acting as a flexible layer to remain agile when market conditions change. and we're on track with the acetylated strategy. The marine geotechnical activities are the most capital intensive part of their business. That's the top layer. The offshore wind market in particular has a sizable need for mapping and soil composition via the extraction and testing of soil samples. Today and in the medium term, these activities cannot be executed with smaller, and our uncrewed platforms, and will therefore remain asset-intensive in the near term. In order to ensure capacity to cater for the future demand, we have invested in the expansion. And this has already, as I just mentioned, contributed significantly to the results in 2024. and hence also the green checkmark as communicated in the CMD. If we look at the bottom two rows for our marine geophysical and inspection and monitoring business, we're gradually moving towards uncrewed and remote operations. Today, we have 10 USVs, uncrewed service vessels, and we're working on a further fleet expansion through the development of larger USVs with longer endurance and deep water capability. We believe this is where the future lies, and that's why we are investing in that. And on the acid integrity side, we target five to 10 additional USVs, including the 18 meter blue eclipse. For the site characterization, the geophysical work, we target also five to 10 additional USVs, including the 16 meter blue prism. So we continue to invest in the next generation with the asset lighter strategy. Now let's look at the balance sheet, which is strong by any measure I would say, driven by solid cash generation. our balance sheet continued to strengthen further. Our leverage at year-end is 0.2 times. And our strong financial position enables us to execute on a strategy by investing in sustainable growth to provide attractive return to shareholders. It also gives us the agility to make decisions for the future of Frugal. Towards year end, we arrange a new financing package. This is now unsecured, which is good. We got better terms and conditions, which is also good. And the debt maturities are now in 29. Again, that gives us flexibility. Just to reiterate the capital allocation framework that we have, we will remain and stick to it. We will invest for sustainable growth, make balanced and consider investment decisions for the current business and the future business to achieve our strategic objectives. We are selective regarding M&A, which we said before. And we, for both categories, continue to look how we can accelerate our strategy. We also want to maintain a strong balance sheet. And that means leverage below one and a half times and keep sufficient liquidity in the business. As I mentioned, we have working capital swings throughout the year. We need at all times to keep sufficient liquidity in the business to keep it funded and also to cater for further growth. And then lastly, we target attractive returns for shareholders with dividend payout of 75 cents at 30%, which is well within our range of the payout policy. Then, the outlook. That's also important in an uncertain world. First of all, I want to reiterate that we are fully focused on achieving our strategy towards full potential. The key fundamentals in our key core markets remain strong. Offshore wind, oil and gas, and infrastructure. But also we see emerging market segments, coastal resilience, carbon capture and storage, critical minerals, and surveillance of critical infrastructure. This offers really great growth potential for Fugro. And for 2025, what does that mean? We expect to deliver EBIT margins within the range of 11% to 15%. Free cash flow between 6% to 9%, and a road shear above 15%. And as a market leader in our markets, we anticipate growing with our markets, resulting in revenue growth for the full year. However, limited by the current dynamics in the US, specifically impacting the first part of the year. Overall, as you can expect from us, we will continue to be proactive and adapt and take actions as required in a very fast changing political, economical, and social landscape. And with that, I would like to thank you and open the floor for questions.

Thank you very much, Barbara.