Cadeler A/S

Good morning and welcome to Cadillac's H1 2025 earnings presentation. Presenting today are Mikael Glierup, 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 Cattler's results to differ materially from today's forward-looking statements include those detailed in Cattler'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 Cadillers 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 Cadillers' annual report. The annual report and today's earnings presentation are available on Caddler's website at caddler.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 has been recorded today. If you have any objections, please disconnect at this time. Mikael Glierup, you may begin.

Thank you very much and good morning and good afternoon and good evening to the people that have dialed into this presentation. Happy to present our half-year results together with Peter. And what we can say, around the first half-year result in 2025, our financial performance is above our expectations. With the full-year guidance increased in July 2025, we maintain that guidance in this half-year report. When Keeper delivered a long-term contract with Vestas was secured, I think a process that we entered into earlier during the year where this opportunity became possible for us and where we also had a discussion with our client to come to the point where we are now. Upgrades are waiting for Keeper before we will put her into commercial operation in Q1, 2026. Seven vessels are on hire around the world, including two in Taiwan and two in North America. Strong and increasing demand for O&M services, especially for the larger turbines, is reinforcing our decision to establish Nexra, our service concept, where we also have seen now the first real evidence of that coming to the market with the wind Keeper. Our catalog backlog continued to strengthen, even with the removal of the Horn C4 after delay from Ørsted on that project, and we currently stand at 2.5 billion euros. Commercial highlights in the first half of 25. The wind keeper is certainly a commercial highlight. It's a vessel that we negotiated, acquired, and took delivery of all ahead of schedule. It's the newest addition, and we have secured a long-term contract with Destas, a three-year period with additional two and a half years of options with the same client. The contract, as I said, commences in the early part of 2026. And we believe that the wind keeper will be a very versatile service vessel where the client can mainly do operations and maintenance for the vessel, but also have an ability to support transport and installation for certain projects. And before, as I said, before we put her on work for Vestas in Q126, the windkeeper will undergo tailored upgrades really to fit the Kettler operating model, but also what we would like to deliver to our clients in terms of vessel and also what the vessel can do in European waters on projects there. Overall, on the fleet, we can say that the Wind Orca is continuing the installation on Hidride. She had an O&M campaign earlier during the year, but is now installing on Hidride. Wind Osprey had also an O&M campaign and is installing on Baltic Power now in Poland. Silla, probably a question that I will receive in the questions and answer section around the Revolution Wind, but we are working on Revolution Wind for Ørsted and the vessel is still here in the US. On Saratan, she's working in Taiwan on O&M. The peak continues to install on Sofia. The wind maker is installing on Greater Changwa for Ørsted. And Wind Pace is also here in the US working for GE Vinnova. And the wind keeper is in transit on the way back in or close to South Africa at the moment, expecting to arrive in Northern Europe in October this year. In terms of our backlog standing at 2.5 billion euro, I think that what we wanted to highlight on this slide here is really because there's not a great change. We have had another project coming in in Taiwan with the Formosa 4 coming in. We announced that last week. It was part of a reservation agreement and we signed that contract last week. And I think that it was a healthy contract economics we saw on that project. and a project that will be installed in 2028, which fits really the strategy for what we are doing at the moment. And 2028 is certainly a focus here, but more to follow on that. In terms of US, we are busy on three projects. In the US, Revolution Sunrise and an O&M job here. But the U.S. in total constitutes less than 10% of our total backlog. And revolution itself is the smallest part of that U.S. backlog in itself because we are almost done on that project. In terms of the backlog, I think having increased the backlog, although slightly from the Q1 presentation, I think it is an achievement, especially with the large chunk coming out from the Horn C4. And we still stand at a very, very high level of final investment decisions in our backlog. So 97% of the projects in our backlog has final investment decision. And we are focusing on maintaining a solid overview of the projects that we are adding to the backlog, but also ensuring that the quality of projects we are letting into the backlog is something that we do. on the same basis as we have always done. But pleased that we have been able to maintain the backlog at its current level after the delay of Horn C4. In terms of the new builds, I'm pleased to say also that we are on Wind Ally almost complete. We are on seed trials and jacking trials as we speak, and we are ahead of schedule. Originally, we expected to deliver the Wind Ally in November this year, but according to the current plan, we are looking to take delivery at the end of September, which is a very, very strong performance, both by site team, but also by the yard, and everybody who has supported that. The ally then has a sequence of jobs to do in terms of mobilizing her for her first project, which will be the Horn C3. But it's very good for us that we are delivering as we are because it also means that we are coming on the project as we expect and everything there looks to go according to plan as we see it at the moment. Also on Windmover, we are also looking to deliver the Windmover in the fourth quarter of this year. And at the moment, it also looks like we are slightly ahead of schedule on Windmover, which is also positive. The Windmover has a contract also where she will depart the yard and immediately go on that contract. So for us, it's of course, it has been important to make sure that the yard and us have an agreement on when the vessel is delivering and as early as possible for us was important. The WindApex is also in production in Corsico Cidon and the WindApex is currently at block stage. So I would say that on new builds, the fourth remaining new builds is on or ahead of schedule and also on budget, which is pleasing. And on the financial results, I will hand it over to Peter, so he can walk you through the financial results.

Yeah, thank you very much, Mikkel. For Q2, the three-month ending, we had a revenue of €233.1 million. That is, of course, impacted by the termination fees from the postponement of Hornsley 4. However, if you adjust for that, then it's still a substantial growth as compared to last year. XG ratio is still at around 50%, i.e. a very solid balance sheet going forward. Utilization, adjusted utilization for the three months in Q2 was 94.1%, which is very, very solid as well. And we are pleased to see that we are above 90% for the quarter. Market cap, 1.7 billion euros. EBITDA also substantially up against last year, again, of course, impacted by the termination fees on the 100-4. We adjusted our outlook for 25 early July, so we took the range up with 103 million. indicative of this termination fee, but adjusting for that, it is still a substantial growth that we are showing. Cash flow from operating activities also up 50 million in the quarter. Backlog stands, as Mikkel said, at 2.5 billion euro. And three months daily average turnover on the stock exchanges, 4.9 million euro. If you look at the P&L for Q2 2025, and still bearing in mind, of course, this termination fee which inflates the numbers, we see very, very solid growth in Q2. Of course, now we have eight vessels on water as compared to four last year when Keebo came in very late in the quarter and not operational yet. However, we see that our operational model is functioning very well. The cost of sales is following the the increase of versus OPEX also even a little bit lower than compared to last year and SDNA, which is a number that we have talked a little bit about in the past where we have increased that number in the past to be able to to operate a bigger fleet and the foundations versus now also showing that that with the base that we have we can operate a a bigger fleet and also foundations versus and more projects as said utilization was 76 percent and adjusted utilization 94 And cost of sales is, of course, increasing with the delivery risks, which is then will peak. Delivered in August last year, so not in comparable numbers with NATO and with PACE. And EBITDA also have a very solid growth from 32 million to 189 million euros. The P&L for the first half is... of course, impacted again by the termination fees that we have received on T4. Adjusted utilization for six months is 89%, also a very, very good number. Revenue increases with the termination fees, of course, but also with more projects and more vessels at and projects we also see at a higher rate than historically. So again, it shows the operational business model is working as planned. If we look at the quarter and the first half, it is as we have expected and planned, I think on all lines. So I think development under very good control, costs under very good control, revenue as expected or above. So it is a really, really strong quarter. No doubt about it. The balance sheet is of course increasing with the delivery of vessels. Also CapEx for the quarter was, as expected you can find, More flavor on it in the notes to the first half accounts. But it is growing with the wind maker. Installments on Ally. It is on the M class vessels of which one was delivered. And it's on the wind keeper that came in. late june with a significant amount but again as planned other current assets is increasing and that is of course again the the termination fees they are sitting in the balance as contract assets we We issued the invoices early July. We got the termination very late in June, hence it's sitting as a contract asset, but it's not a reflection of, it's less certain. It is only a reflection of that we received the termination the 30th of June, so then invoiced in early July. Transmission fees are due here in Q3, so we expect to have a cash inflow from other current assets in Q3. Still a solid balance sheet, execute ratio 50%. As compared to 64%, of course, it goes down as the balance sheet is a little bit more leveraged, but we will not expect the execute ratio to go below 45% around. CAPEX program is expected to be fully funded. What is outstanding now is only the third A-class vessel, the APEX, coming in in 2027. It's a bit early for us to start that. started, you could say, the bend and stretch on starting up a facility discussion on that one, but it's not being delivered until 27, so it's too early to start paying commitment fees, but there is a strong interest from banks to also support the funding of that business. We have a CAS of 51, but of course, we are not taking in the determination fees here. So all in all, the conclusion on this slide is that we have a very, very solid financial situation with cash and available cash, substantially available cash also after payment of the Capex program. As we have elaborated on in the past, our hedging policy is that we hedge 50% of the US dollar exposure on the installments to the yards. And we hit 50% of the interest exposure. And that is a straight policy that stick to what I think has served us very well in the past. Financing overview. We have 2 billion, 2.1 billion of committed facilities. And then the APEX is uncommitted as of now, but we are in dialogue with the banks to also get that financing committed. And we expect to close it approximately a year before delivery. We had the windkeeper bridge facility in Q2, which formed a part of a very attractive business case where we were able to buy the windkeeper at an attractive price, get an attractive contract on it, and fully finance it. We have to sign the takeout facility of 125 million. The remaining part of purchase price and the capex we can finance from the operational cash flow and the already available cash we have in place. Full year outlook, I said it was increased. in early July, on the back of the termination of Honshu 4. The project is now in an outlook of revenue between 588 to 628 million, and an EBITDA of 381 to 421 billion euro. Of course, the full year is impacted by termination fees and timely investor deliveries and execution on projects. Windbreaker and Windpace, which was delivered in Q1-25. And it's already employed in APEC and US. And then there is two additional vessels deliveries coming in, Q3, Q4, WindAlly and WindMover. And as Millie said, it is on time and budget. And then we also start to see the revenue and cost from foundation projects starting to be recognized. So it's the two foundation projects that we have, Haunting 3 and EA2. I would like to also elaborate a little bit on how we show revenue in our numbers. There's two lines. There's a line from... time chart of revenue and foundation work, installation work. That is what is coming from our business and the contracts on the business. Then we have another line, which is other revenue for this first half. It's 120 million euros. That is where the termination fees sits. But the 120 million euros is not equal to the termination fees as there's also... Other services and other revenue in there, it's what you would call sun-dry income. So it's income from accommodation and catering on the business. And there can also be other smaller revenue streams. And you can see in the comparable numbers, there's also 13 million euro in for the first six months in 2024. So it's not a correct conclusion then to say that the termination fees from Horn C4 is 120 million euro. Then I will give the word to Mikkel on sustainability.