Fugro N.V.

The Fugro Q1 trading update will begin shortly.

Good morning, all. Thank you for dialing in to this webcast, audio webcast. Katrien van Buttinga is my name, Investor Relations. I'm here with Mark Heijnen, CEO, and Barbara Gele, CFO. We have a short presentation to... give to you about the Q1 trading update, which will last, I don't know, I think around 10, 15 minutes in total max, and then we'll open the floor for your questions. Mark, please go ahead.

Thank you, Katrien. Good morning, everyone. Q1 2026 trading update. As anticipated, Q1 was seasonally low and the market conditions remain challenging. with a lower offshore wind activity impacting our top line. Revenue declined by 2.1% on a currency comparable basis. We saw growth in other markets, especially oil and gas and infrastructure, largely offset by offshore wind softness. The EBITDA margin slightly improved to 10.4%. EBIT margin was in line with last year, driven by lower revenue, largely offset by cost reductions. The 120 million cost reduction program is completed, but we're also prepared to take further action if required. Free cash flow improved due to significantly lower capital expenditure. However, working capital increased because of large ongoing contracts, high activity of billing, especially at the end of the quarter, and very high payables last year in the first quarter. remain focused on what we can control, maintaining cost discipline, actively managing vessel capacity, improving cash flow conversion through reduced capital expenditure, and lowering working capital from elevated levels seen in the recent quarters. At the same time, strengthening sales momentum remains a clear priority with a strong focus on accelerating the conversion of opportunities into awards. Our backlog for the coming 12 months stands at 1.4 billion, slightly lower than last year, 3.5% lower, with a strong tendering activity across markets. Next slide, please. The direct impact of the conflict in the Middle East has so far been largely confined to our operations in the UAE and Qatar. And this relates to, amongst others, to our two key vessels there, Fugro Proteus and the Pacific Grouse. The latter one is a charter, a long-term charter, that will probably release later in the year. And, yeah, they have been facing limitations on operations in the UAE and Qatar. And please note that these vessels currently do not require the passage through the Strait of Hormuz. The other vessels in the region, the Kobi Ruik and the Fugro Mapper, have been and are operating outside of the affected area and are less exposed. Still, we have experienced some knock-on effects in other countries and regions. Going forward, we continue to monitor the situation, ready to respond when necessary, with safety of our people as our foremost priority. Next slide, please. If we talk about the markets, a brief update compared to what we said earlier in the full year presentation. Official wind markets in Europe are indeed showing first signs of recovery, with increased tender activity in several key markets in Q1 2026. And that's notable in the UK, Germany, Netherlands, France and Ireland. The war in the Middle East, which might well have meaningful and long-lasting implications for the global energy sector, with increasing localized oil and gas investments and the diversification of the energy sources we dive a little bit deeper in oil and gas what's also here on the board and we spoke about that before as well energy companies in oil and gas are selectively expanding their oil and gas portfolios through targeted exploration programs with obviously a strong emphasis on tight timelines and cost efficiency And there's heightened attention on energy security and energy independence. And that's also expected to support continued client investments, particularly where the higher oil prices improve project economics. If we talk about the offshore wind market, we already said that we see the signs of recovery of the market. It will take some time. So it is important to note that this is obviously happening. We see it happening. We see activity increasing over time but it will take a little bit of time before that materializes where they increase installations only from 2030 31 onwards in asia pacific short-term challenges remain as we said before but the sector is cautiously optimistic about the auction frameworks and that are revised there and the bottlenecks are addressed obviously we don't see any new fields coming to the market in the U.S., albeit we saw the first emerging wind activities in Latin America, Brazil, and Canada. And with that, I would like to hand over to Barbara.