Cadeler A/S

Good morning and welcome to Cadillac's Q1 2025 earnings presentation. Presenting today are Mikel Glirop, Chief Executive Officer and Peter Brogard, Chief Financial Officer. Please be reminded that the presenters' remarks today will include forward-looking statements. Actual results may differ materially from those contemplated. The risks and uncertainties that could cause Cadillac's results to differ materially from today's forward-looking statements include those detailed in Cadillac's annual report on Form 20F on file with the United States Securities and Exchange Commission. Any forward-looking statements made this morning are based on assumptions as of today, and Cattler undertakes no obligation to update these statements as a result of new information or future events. This morning's presentation includes both IFRS and certain non-IFRS financial measures. A reconciliation of non-IFRS financial measures to the nearest IFRS equivalent is provided in Cadillac's annual report. The annual report and today's earnings presentation are available on Cadillac's website at cadillac.com forward slash investor. We ask that you please hold all questions until the completion of the formal remarks, at which time you'll be given instructions for the question and answer session. As a reminder, this call is being recorded today. If you have any objections, please disconnect at this time. Mikael, clear up, you may begin.

Thank you. Welcome to this Q1 2025 presentation. Thank you for joining us for the presentation of what has gone on in Q1 2025 in Catalan. Firstly, a few highlights. What we want to say is that our financial performance in this quarter is in line with our expectations. No negative or positive surprises. We are following a plan and hence the results that we came out with today is exactly as we expected it. We took delivery of two new bills, the wind maker and the wind pace in Q1. And that is 50% of the new bills that we are supposed to deliver in our program this year. And we have delivered them in the first quarter on our head of schedule and on budget. And the remaining four new builds we have on the program, they are on track for delivery and also on our ahead of schedule. We now have seven vessels that are active either in Europe, APAC or US, and that is demonstrating Catalyst's global footprint. We continue to see a growing demand for O&M services, and that is strongly contributing to the utilization of Catalyst fleet. And we do believe that this is very important on a continuous basis. Catalyst contract backlog continues to strengthening, increasing to over two and a half billion Euro in the quarter. On the vessels, we have seen activity in different parts of the world, in different regions, and the fleet has been busy just after coming out from the yard. I think that we are, as I said before, we are following the plan. We see that Wind Orca is very busy, first with the O&M campaign, and then hence after that on the Hidrite project for Vestas. On Osprey, we are doing an O&M campaign for Vestas, and after that, we are going to do the Baltic Power project, our first project in Poland. On Scylla, we continue to work for Ørsted in the US. On Saratan, we continue to work in the Asian region with an O&M campaign in Taiwan. On PEAK, after we took delivery of PEAK, she came back to Europe, started an O&M campaign and have now started the SOFIA project where we work for Siemens on an RWE project. The wind maker, we managed to deliver the wind maker on the schedule where we needed to have her so she could mobilize and be ready for the project in Taiwan together with Ørsted, also something that we are really pleased with. And on wind pace, last but not least, she is currently steaming towards her first project, which will be in the US. In terms of the backlog, we see that we are continuing to build a backlog and we are now standing at Euro 2.5 billion. And that is a backlog that is diversified across types of work, types of clients, different clients, and also regions. And we have further reservation agreements that is not included in the backlog and lots of projects that we are working on. If we look at what the contract backlog is standing at currently, we've said it before, 2.5 billion. It continues to grow also from when we did our full year 24. But what is also changing here is that 100% of our backlog today has reached FID. And I do believe that that is a very, very important number that we currently are sitting with 100% of our backlog that has made a final investment decision. We have also secured a significant project at an offshore wind farm in the US that is supposed to start here in the second quarter of 2025. And the wind pace, as I said, is already steaming towards that project. It is continuing until Q1 26, after which she's coming back to Europe to start the first installation project that she is designated for. We have also signed two contracts with undisclosed clients for the utilization of WindMover in 26, and the scope of work may include both O&M and installation work. And the total estimated contract value is up to 75 million euro. We have also entered into a contract with Rensaritan and has commenced work, and that is on an O&M campaign in the Asia-Pacific region. On vessel reservation agreement, we don't include that in the backlog. And that is a decision we have made a long time ago, so that's not new. But we are continuing to see a lot of activity on the tendering phase and also leading to vessel reservation agreements that eventually will lead to contracts and to further backlog. And we have signed one vessel restoration agreement also in the Polish waters for BC Wind for installation of circa 30 turbines in the Polish Baltic Sea. And that has a value between 48 and 56 million euro. In terms of the new builds, we are coming very, very close with WindAlly. And WindAlly is currently expected to deliver around seven to nine weeks ahead of schedule. So that's also very, very strong performance there. WindMover is also still on track to be built and completed by Q4 25, and WindAce for Q3-26, and Rendepex also, as expected, for Q2-2027. And they have different completion stages at the moment, but I think that what is important to say here on the new build and the CapEx program is that we are following the plan, and we are where we want to be and where we project to be. In terms of financial highlights, I will here hand over to Peter.

Thank you very much, Michael. As Michael said in the beginning, the quarter was, from a financial point of view, exactly as planned and expected. Revenue was at 65.5 million, significantly up from last year. where the two O-class vessels were out for crane upgrades. Equity ratio is 49.7%. It's going down a little bit as we take on more debt with the deliveries of the vessels, but still very strong balance sheet. Utilization was 79.4%, and it was really a quarter of a transition. So you can see that the unadjusted utilization was 55%, whereas when we adjust for dry log and transition from the delivery, it's 79%. We got delivery of the two vessels, Baker and Pace in Q1. EBITDA, 23.7 million, also significantly up from last year. Nearly all EBITDA was flowing through to the cash, so 20 million euro from operating activities. Backlog, as mentioned, 2.5 million. and three months daily average turnover was 5.6 million euro. If we look at the P&L, all line items were as expected, already touched upon the revenue, which is significantly up and the cost of sales, the OPEX is also exactly as planned, of course increasing when we get more vessels on the water, SDNA is up as compared to last year, but also according to the plan, it's the organizational ramp up that we have been doing for some quarters now. And that is also exactly to plan. The vessel opening per day was 36.9 thousand euro per day. Up from last year, and that is really also as we communicated around annual report, we have some extra OPEXs here because we are putting extra trainee positions on some of the vessels on water to prepare for the new builds coming in. We had the seven visits operational at the end of Q1 as compared to fall last year. CAAT counts significantly up. In average, we were 272 in the first quarter, onshore. Controlled balance sheet. You can see non-current assets are going up with deliveries and non-current liabilities interest-bearing debt is going up also with the deliveries but still a solid and sound energy which is important in the capital intensive industry as our service really the best protection in such an industry working capital more or less unchanged The CAPEX program, we have shown this slide a couple of times, but still we see that the CAPEX program is fully financed. We have signed a committed facilities board of 841 million euros. We have not started. The only vessel without a financing in place is the third A-class, the Apex, but that is delivered in 27. Since we have not started that yet, it will simply be a too long period of patient commitment. Cash was 94 at the end of the quarter, and then you have the outstanding installments. on the last N-class vessel remover and then the three A-class vessel, but as a solid surplus of funding. Still, we are following strictly this hedging policy we have, which is 50% of US dollar exposure is hedged. That is primarily the, the installments to the yards in US dollars, and then we have hit 50% of the interest exposure on a forward five-year starting basis. This is the financing overview, total community is 1.9, and the total is 2.2 million USD. The A-class has been syndicated on the two first vessels. We are waiting for a planned signage or issuing the LOI here in May month, as we also communicated at the annual report. And then we will start the wind apex financing in 26. Full year outlook, we maintain the outlook as presented in the annual report. Revenue 485 to 525 million. EBITDA 278 to 318 million euro. Significantly up, of course, as compared to 24. The full year is impacted, of course, with the deliveries of maker and pace. going on contracts now and the two upcoming vessels with Ally and Mover. And then we spoke a little bit also about the foundation projects. They start to be, the revenue and costs start to be recognized here in 25. to a lesser extent than it will be when it kicks in when we start installing in 26 but still there are some revenue and costs there and it's with a lower margin on some of the T&I scope that starts in 25 than we will see for the full project over project time. Then there has been this termination of reservation agreement that will have a positive impact on 2025, but that is still to be analyzed and we will communicate on that as soon as we have finalized those analysis on the impact.