Cadeler A/S

Good morning and welcome to Cadela's third quarter 2025 earnings presentation. Presenting today are Mikel Glirop, Chief Executive Officer and Peter Brogard, Chief Financial Officer. Please be reminded that 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 Security and Exchange Commission. Any forward-looking statements made this morning are based on assumptions as of today and CADLA 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 Caddler's 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 will 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. Michael Glirrup, you may begin.

Thank you very much, and thank you to everyone dialing in to listen to our presentation this morning slash afternoon. Yeah, I will ask everybody to read through the disclaimer in the presentation. So annual report 2025 and first taking you through the highlights of 2025. Financial performance in Cattler in 2025 were above our expectations. We ended at the top end of the range that we guided last year. ending the year with a robust contract backlog of Euro 2.8 billion, which really gives us that earnings visibility into the future that we have been discussing with our investors over the course of the last couple of years. We had four new bills scheduled for delivery in 2025, and they were all delivered on time and on budget. We added Windkeeper to the fleet to support Nexra and our partners and really this new O&M service platform. We continued exceptional execution with significant progress made towards the delivering on the Horn C3 projects. WindKeeper upgrades successfully completed and multiple campaigns supported with vessel swaps. We have had strong utilization with vessels operating across the world in markets as Europe, US and in APEC. Commercial highlights for the financial year 25. Sille continued to work in the US on Revolution Wind for Ørsted and have since shifted over to Sunrise Wind. The Wind Orca has been mobilizing for the Horn C3 project for Ørsted, where she will be executing the secondary steel scope. On Wind Osprey, we have been mobilizing for the EA3 turbine installation, which is a project we do for Scottish Power Renewables. On Windmover, we will shortly be commencing the turbine installation on the Baltic Power Project, where she's taking over from another vessel that we previously had working on that project. The windmaker stays in Asia and, as we have announced over the course of the last couple of weeks, will be executing O&M campaigns for clients in Taiwan this year. WindPace came back from the US after having supported the Vinyard Wind project and is also now mobilizing for the EA3 turbine installation project for Scottish Power Renewables. WindPeak will continue to install turbines on the Sophia project for Siemens Gamesa. The WindKeeper has been delivered to the client on an up to five and a half year contract and is currently installing on the HeadRide project for Vestas. Wind Ally is completing the last phase of the mobilization in Europe in Rotterdam and is preparing to go to the UK to start putting in monopiles for us on the Horn C3 project. And the Wind Saratan project for her, 2026, is a transition year. We have decided to do some upgrades to Wind Saratan, do some O&M work in Asia, and then take the vessel back to Europe to start working both on O&M, but also on support jobs for foundation projects. At a glance, we now stand at 362 office-based employees, more than 800 seafarers. We have now installed more than 1,700 wind turbines, more than 900 foundations, a number that will go up significantly during this year due to the Horn C3 project, and also have been working on more than 275 locations for operations and maintenance. So all in all, very busy and continuing to grow the business in the industry that is also growing with us. We have been discussing a lot with our investors and other stakeholders in the company, the transition to full scope T&I campaigns for the foundation work. And we have prepared a few slides to go through where we are now on the Horn C3 project and where we are as a company on the transition to taking on these full scope T&I campaigns. The company came from a charter-based day rate model where we could add services as requested by the client to now having a more integrated project delivery and construction platform. As we say, it's a solution-based offering to the clients. We used to have a very compact organization and moderate complexity in the organization, but also in the offerings we were offering to the clients. And now we are going into a much more complex environment And really also where the organization has to deliver many different scopes from transport on heavy lift vessels to handling equipment in port, offloading, unloading, very, very large pieces of equipment, storing them safely, Q&A on these products while we have them in our custody for the clients. We came from a utilization driven model with a higher relative percentage margin to an execution driven with a higher absolute return and upside model on the T&I scopes. The vessels in the previous model was the primary revenue stream and where we today see vessels as strategic enablers to capture more scope as we take on these bigger projects for our clients. On Horn C3, trying to give you an overview of the timeline for the first full TNI scope that we have embarked on. The project was signed in early 23, a very busy year for signing both that project, but also working on the merger with the NETI. Preparing for taking delivery of the vessel, a lot of supplier scopes, starting to transport monopiles and secondary steel, starting to install monopiles and secondary steel, and then also embarking on installing 50% of the turbines on the project and then commissioning and closing the project somewhere in 27. It is a very, very complicated project and something that we go into with a great deal of humility. But I think that I'm pleased to say that we are exactly where we want to be. And the Ben Ali delivered early. We were able to mobilize her in China directly from the new-build yard and have taken her successfully back to Europe, finalizing mobilization now in Rotterdam before, as I said, starting to put in monopiles in April this year. Horn C3 really requires a lot of coordination and we are also now experiencing being in the middle of the project, the complexity of the project and also the benefit of having built up the team and having worked close with our client in terms of what was required to execute this. Because a project like this never goes to plan, I think it's fair to say. And we have also been met with requirements from our clients to change different things as we have worked since 23 and until today. But I'm pleased to say that we have taken on these challenges with our can-do attitude in the company. And we are exactly where we want to be in terms of being ready to install the project from April of this year. At a total capacity of 2.8 gigabit when it's installed, 197 monopiles, 60 office-based staff working on it, 120 port and construction staff working out there for us in somewhere where there's a yellow dot on this map. We have 10 vessels in total, three from Kettler working on the project. We are transporting more than 400,000 tons of material on the project. We have 10 ports involved and 12 plus partners involved in this. So in all fairness, a very complicated project, but also one where we are learning a lot. We've taken some pictures from the project to also demonstrate the scale of this project, because I think it's hard to understand the size of these monopiles. All of them are the same size as a Los Angeles class submarine. And we are installing 197 of those in the UK from April this year and until 2027 and into 2027. We have also been working with our client to do a mock-up trial of the secondary steel. These foundations are TP-less, meaning that they don't have a transition piece on top. And that means that all the secondary steel is being installed by a tool that is being carried on board the Wind Orca that carries storage towers for secondary steel. And then she's lifting the secondary steel onto the foundation in one lift with this tool. And together with our client, we built a mock-up for this, a full-scale mock-up in the port where we were able to test this tool and the functionality of this tool before going offshore. And it's been a pleasure to work with our client on these mock-ups and really refining the whole rehearsal of concept before we go into the actual execution offshore. And we have added some pictures on that as well. As we have been discussing, the changes in the project timeline has lead to increased but delayed revenue for the foundation TNI. So Kettler will earn more money on the Horn C3 project compared to what was originally envisaged when we signed the project. Not due to things that have happened on the Kettler side, so to speak, but because our client have had to change what they originally anticipated in terms of, for example, monopile delivery, whereas the monopile is coming from, originally we expected two fabrication yards. Today we are working with four fabrication yards. That all means that we are receiving the monopiles in a different pace, but it also means that the project is stretching over a longer time and that we will be involved with some of the suppliers that we have on the project for a longer time. So what it means is that it's an increased revenue and an increased margin to Cattler, but the project will stretch over a longer period of time. In terms of our commercial pipeline across the globe, I think I'm happy to say that we are still continuing to grow and we are still involved in a lot of projects and a lot of bidding on projects globally. Obviously, the European market is really the front runner in terms of new projects that we are working on. And as you can see from this slide, we are working on more than 50 plus open commercial opportunities in the market. And we are discussing projects with our clients both for 27, 28, 29, 2030, but also well into the next decade, which gives us a very great deal of confidence in the market as such, but also a positive outlook for where we are going as an industry. And I'll come back to that a little bit later in the presentation. Asia continues to perform as well. We see new markets opening in Asia as we progress the ongoing market, which is Taiwan, Korea, and Japan. We see also development now in the Philippines, but also development in Australia. And all in all, we are active where our clients want us to be active, and we are continuing to bid for projects in the region, in a region that I would say is developing as expected. The U.S. market, It is what it is, and we have discussed it many times before. We don't see any short-term opportunities in the U.S. market, but we are still executing in the U.S. market. We sent the wind pace back to Europe from completion on Vinyard Wind, and we are now installing with the Scylla on the Sunrise Wind project. All in all, we expect to be busy in the U.S. for the years to come, and also we are happy to engage with our clients for new projects in the U.S. region when that time is coming. We still sit on a significant backlog. Our backlog year on year has grown. We are standing at 2.8 billion in backlog, which, as I said, really provides the earnings visibility that we would expect and also what we have communicated to our clients. We have things that also that we are working on here that we have discussed in the market where we are preferred to apply on a foundation project that is not counted in our backlog. And it's also not sitting in our vessel restoration agreements because it has not reached that stage yet. But we still have work that will hit the backlog. And we are sure that in the coming quarters that we will have positive announcements around backlog development. As I said, the backlog stands at 2.8 billion euro at the moment, and 80% of the total backlog has reached FID. And we have discussed that before. And I think that that's really a sign of the quality of the backlog, where we know that 80% has already been approved for the final investment decision at the client side, meaning that that project has also reached a contractual milestone that is important for us. And as I said, we do have a preferred supplier agreement, a sizable preferred supplier agreement. And one of the things that we discussed around our Q3 announcement was that we had some projects in the site that we would like to secure. And one of them is what we have now a preferred supplier agreement on. It's for a significant foundation project in Europe and one of the projects that was important for us for our 2028 campaign. And I'm pleased to say that we have been moving ahead as we expected on that one with our client and that we are also now in the negotiation with the client to make this preferred supplier agreement into a real contract. And on 27, 28, that we discussed at length in the Q3 presentation, I'm happy to say that in 27, we consider ourselves fully booked now. We are currently working with the yard to potentially deliver the wind apex slightly earlier because we have a client that is ready to take the vessel straight from the yard and into a project. Meaning that we are, with the few white spaces we have left in 27, we do consider that time that we want to keep available for clients should they run into some sort of supply chain issue and really have built a solid 27 for ourselves. In 28, we are also much more positive now than we were in Q3 due to the fact that we have secured the preferred supplier agreement on this large-scale foundation project and overall are seeing positive momentum for the 28 campaign overall. In terms of the progress on the new builds, Wendays, we are at 94% completion. The naming ceremony for the Wendays, the official naming ceremony, will be on the 15th of April, and we are looking to deliver the vessel on time. On the wind apex, as I said, we are 34% completion and we are currently discussing with the yard to do up to one month early delivery due to the fact that we have a client who would like to take that vessel straight from the yard and into a project for a sizable project on turbine installation. In terms of the progress from the yard, a few pictures as we always have, I think that I can say that on the Costco shipyard side, things are progressing as planned. Not many surprises there. And really pleasing to see that the collaboration we have with Costco shipyard continues to develop. And we are very, very pleased to work with Costco shipyard, a quality partner for us and for the development of the company. The fully delivered Kettler fleet, as it stands today, with an average fleet age of five years, which I believe is a very good number to have, and really also shows that we have been building a young fleet that is ready to take on the positive developments of the future. Now I will hand over to Peter for the financial highlights of 2025.

Thank you very much. Yes, the financial highlights for 2025. It was really a strong year seen from a financial and operational point of view. As Michael said, we ended in the high end of the range that we have a guided revenue of 620 million euros as compared to 249. Equity ratio is now at 44%. It's a decrease as compared to last year. But it's also where we see it bottom out, the equity ratio, and starts to increase again. Utilization also very high, 88.9% adjusted utilization as compared to 75% last year. And that is the adjustment is where we say, okay, we take out what is planned dry docking and transportation from the yard. We think that is a meaningful number to look at when we get all these new vessels delivered. Market cap 1.8 billion. EBITDA 425 million euro as compared to 126 million euro last year. Net profit, important number for the shareholders, of course, 280 million euro as compared to 65 last year. And as we elaborated on, a backlog of 2.8 billion euros. three months daily average turnover 7.1 million euro on the stock exchanges if we first look at the the last three months of the year q4 25 very very strong quarter 167 million euro in revenue an increase of 82 million compared to q4 25 24 and with the adjusted utilization of 87 percent cost of sales is of course going up with the delivered vessels and sdna also is up because of the ramp up that we have talked about previous releases where we build up the organization to be able to manage these foundation projects with increased complexity finance net isolated for Q4 is 20 million euro and that is a A shift you see here in Q4 finances because we have capitalized the borrowing cost to a greater extent while we had more vessels under construction. Now that the vessels have been delivered, then a bigger part of the finance interest is going to the P&L, and that is something you will see in 2026 as well. Of course, it's the same cash outflow, but it's just whether it's in P&L or it is in CAPEX. EBITDA, I think, very, very strong, 104 million euros in a quarter where... where ally and also mover were not in operation as such, but in transport to first project. That was Q4 isolated for the full year. Some of the same remarks that we had in Q4, but also what we have seen During the year, it's fair to say everything has paid out exactly to plan revenue in the higher end of the gardens. Cost of sales, everything is according to plan, SDNA the same. So we are very, very pleased with the financial result for 2025, but also the underlying operation where we have control of the important things. If we have 425 million euro vessel OPEX per day, It's 36.3 million, a small increase towards last year and I think also under control. Headcount onshore average is 307. The consolidated balance sheet, now we have an equity of 1.5 billion euro. an increase of nearly 300 million as compared to last year. And we see the equity value of 44%. I think that is something we have all along said that it's approximately there where we will bottom out. And of course, it's a natural consequence of taking delivery of the basis where your assets go up and your liabilities increase. We still have a cabbage program now on the the wind ace and the wind apex this is the installments to the yard that we show here we have signed commitment for a class wind ace and we also have an ongoing rcf facility of 148 so together with what we expect to To raise of financing on the wind apex, we are at 637 of total financing. We are in an advanced discussion with the wind apex and are confident that we will be able to sign that during 26th. As you may recall, it's delivered in AQ 2.27. So we have really had the goal of signing a facility, sign commitment one year ahead. So we are not paying unnecessary fees and commitment fees and so forth. Interest from banks are strong. So is it from the ECA? So it would be on similar term as you have seen on previous transactions. Cash 152. And you can see with the A-class payments we have outstanding, there's still a significant cash surplus. This is the financing overview. You can see here that we have the RCFA and the B. We have not drawn up fully yet. And since Q3, September, we have signed the whole co-financing second one with HSBC and Clifford Capital on secured loan, 60 million with an accordion of 80 million. And it was made on very similar terms as... as the original hold call with HHPC and Stanchart. With APEX, I have talked to that, but that is progressing according to plans. We are very confident on that financing. Then there is Outlook for 26. I think What we guide is in revenue 854 to 944 and EBITDA 420 to 510. We have put up the comparison here, of course, 25 includes revenue that you're supposed to get in 28, but was postponed and we got termination fees for that, so of course that should be adjusted for in the comparison, but a very strong outlook for 26. What is important to understand about the outlook in 26 is exactly what Mikkel has talked about earlier in the presentation. First of all, it's a transition year for Saraton. So isolated on 26, you could argue it is financially a transition year, but it will improve the returns in 27 and onwards. So it's actually a good year for Saraton as it is in an investment year. WindAce will be delivered in Q3 26, but will not go on any contract and have any contractual revenue in 26, simply because we will sell direct to first projects EA2 North. You have seen in the past that on some of the wind turbine installation vessels that we can do some work before the first project, but it's simply not possible on a foundation project. It's a good sign because the customer wants us to be at the site as early as possible. So we are simply doing everything that we can to arrive as early as possible. We can in 27. And then this Horn G3. When HON-T3, you can't look at HON-T3 isolated in one year. First of all, it's a project where you have revenue across several years we already had in 24, 25. But as illustrated by the slide Miguel presented, we now see that the revenue on the project goes up due to changes on the project, not due to catalyst specific things. but due to something designed by the developer. But that means for Kettler, two things, the total project goes up, earnings goes up, but the timing is different. So some is pushed into 27. So when you look at N26 and the outlook, you should also remember that Thank you, Peter.