Cadeler A/S

Good morning and welcome to Cadela's H1 2026 earnings presentation. Presenting today are Mikkel Gleerup, Chief Executive Officer, and Peter Brogaard, 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 Cadela's results to differ materially from today's forward-looking statements include Those detailed in Cadella's annual report on Form 20-F, 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 Cadella undertakes no obligation to update these statements as a result of new information or future events. This morning's presentation includes both IRFS and certain non-IRFS financial measures. A reconciliation of non-IRFS financial measures to the nearest IRFS equivalent is provided in Cadala's annual report. The annual report and today's learning presentation are available on Cadala's website at cadala.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. Mikkel Gleerup, you may begin.

Thank you very much and welcome to this half-year presentation from Kettler. Very pleased to be joined by everyone here. Just a disclaimer slide here first, and then our H1 highlight slide. So the first half of 2026 has been Really, a third half that is defined by very solid financial performance. Adjusting for the last termination fee we had last year, we do see a very strong revenue, and it is now that are both more than doubling on a year-on-year basis. The nuclear program continues to be on track. We delivered our second 8,000 vessels on the 17th of July, and that vessel is now preparing for its first project with coming to Europe for final mobilization. We also successfully acquired a main leading global provider of specific equipment and technology solutions for offshore combination installation. A little bit more about that later in the presentation. And then we continue solid execution across all key regions where we are currently busy. And the OT3 execution also continues and I'm very pleased with that and also more about that in the presentation. And then we signed firm contracts for the two new T-Stars vessels, something we have been working very, very hard to achieve. And I think it's fair to say that it's been a tough negotiation and very pleased to be where we are now. In terms of commercial highlights, the acquisition of MINC, we already have gone through the transaction rationale in a separate presentation. But really, it is about strengthening the custom offering and the execution capabilities that we have in Cadler. We do see this as one of the key components for a successful foundation campaign. We do also see that our clients have been increasingly concerned about whether this tool can be sourced to the market at the necessary volume. and that is something that we have decided to take an active position in and to make sure that there's enough equipment for what the industry is needing and that really means what our clients are needing, what our peers are needing and also what Tesla is needing and all together we believe that that is a very sound business move Thank you very much for joining us. Thank you for watching. to evaluate the program length on a foundation project going forward. So the combined knowledge between the two companies is something that we very much expect will benefit not only our clients but the industry as a whole. and then, of course, maybe it's a solid business. It's a business that is more and more shifting into a rental model and we believe that the earnings profile of the company is something that is very attractive and that is something that fits well with how we do business in Cadla and what we want to do on a forward-going basis. And then there's just a very strong strategic and industrial fit between the two companies because the models, they are very, very much aligned. In terms of what the company is offering, we showed the slide also just on the day of the announcement. But really, the hydraulic hammers, that is the main part of the business and also the biggest part in terms of revenue generation. But there is a lot of other things that are very interesting to develop as we now go forward with the company, in particular in lifting and handling. where we also are big clients ourselves for this type of equipment but also on noise mitigation. Noise mitigation is something that is taking more and more attention in the industry and Clouding and drilling. Clouding and drilling is also in some cases a necessity for foundation projects and it's good that there are solid technology bases for both of these components for the future projects as well and something we all together here believe will be positive effects on projects going forward and really increasing efficiency on foundation installation in the industry. For Kettler, we have been very open about how we see this. It's very much like we have seen with the vessels. We are aiming to build scale so we can offer science redundancy. And I think it's fair to say that we have showed the redundancy. We have showed that it works. We also get the feedback from the clients that the journey that Kettler has been on is something that is working. It's also working for them because if the day is on practice, then we are able to support We have done that already several times in the industry and we see that that is something that the clients, they greatly appreciate. And we believe that by merging now the devil with the hammer in the Tattler case, that is also something the clients will appreciate because really we remove one risk interface on their installation campaigns. and it's really one of the risk interfaces that they are worried about and also one if it goes wrong that will cost a lot of money for the industry and hence having the ability to merge the two components we believe that that is something that will be sought after by the clients out there. I would say also the first half of this year it has been very much about executing on projects globally. We continue on Venezuela to install in the U.S. We have been back at Revolution Wind. We are at Revolution Wind installing the final couple of turbines before we go back to Sunrise again to complete that project. On Okla, we are installing the secondary steam for only three projects for us. On Osprey, we are installing EA3 turbines. at a very, very rapid pace. Osprey has done incredibly well on that project. The Windmover is installing on the Baltic Power project and the Windmaker has done an O&M campaign in Asia and is currently also operating on O&M out there. We are bringing Wynn Ceritan into a new era and we are doing some small upgrades to Wynn Ceritan to make sure that she can support other parts of the business going forward and we are looking forward to see Wynn Ceritan contributing value to the company as we go forward. Wynn-8 was delivered as I said in terms of installing initial equipment. Wynn-Ally is on warranty free installing and very We are pleased to see what we are doing there, and as you will see in a future slide here, we are now going from proof of concept to really doing it fast and safe. That is really what we are aiming for here, and the team has worked tremendously hard to reach the target that we have. And we will keep our continence on a long-term agreement with Vestas, doing various work, and very positive as well there. Winpeak has also completed the SOFIA project and has subsequently done an O&M campaign for an extra, ultimately for Siemens, but currently working in the next set-up. And WinPage is, together with Windows Spray, installing turbines on the EA3 project. On OT3, as we said, it's from first to last. We are still working on further accelerations and efficiencies on the project because we will be doing many projects in the future and hence the learnings we get now from ONSI is something that we can really implement into the company on a long-term scale. It has been an incredible learning journey to be on Hornsea and I think that we are very positive with where we are. We continue to find the improvements that we can benefit from and that the client can benefit from and I think that we are very ambitious in terms of where we want to be. But really, the proof of concept, the fact that Paddler is now installing full-scale foundation products safely and efficiently, that is something that has taken a lot of work, and a great thank you to the team that is continuing to deliver on that. The monofilament installation continues, and the secondary steel installation is also on track. and the logistics around the project that we are also handling is also progressing. We have three heavy transport vessels on charter and we have around 100 monopiles that have been loaded into the marshalling port. And really, as I already said, the focus is to continue safe execution on this project while still Thank you very much. In terms of Nexra, I'm also pleased to say that Nexra has seen a pickup in commercial performance and we have had three vessels working in the Nexra space, when served and when made and when peaked. that have performed the O&M spokes in Europe and APEC and we have had more than 230 battle days that have been working with service and also that the team in Nexla is working incredibly hard with our clients to secure long-term commitments on the O&M side. We maintain our view on the O&M side. We maintain that this is very, very interesting for us and also a very solid business and a place that Capra very much wants to play a role in the Nexla setup. So we continue to put Peter Kragh on Nexla and are also very, very positive with what we have seen in the latest months from the clients. And on the backlog, standing at 2.5 billion, as we always say, it's a very solid earnings visibility. I think that what we are saying on this slide today here is also that we are bringing you a little bit behind the curtains in terms of what is happening out there and also part of why we are positive around what we're seeing for the future. At the moment, we are in the category Vessel Resolvation Agreement and Progressive Bio-Agreements that are not currently in the backlog. We have three DCG projects for 2027, 2028 and 2031. We have a foundation project for 2028. We have also a project for 2031 on both the foundation and turbines, and also a long-term O&M agreement. So a lot of work is at the moment going on to convert these vessel restoration agreements as preferred supplier agreements into firm contract backlog and I think that the team is fair to say that they are negotiating at full speed while we actually see a lot more coming at the moment. Especially for the beginning of the next decade we see an enormous appetite from the clients and especially with the announcement of the T-class vessels, we have been in a very positive momentum with the clients who would like to understand the abilities of the T-class vessels and how we can work together with the A-class and the T-class vessels and our several installation vessels to ensure a very efficient installation campaign. And with the acquisition of Mint, I think it's also fair to say that we have had very positive conversations with our clients on the combination of the hammer and the vessel, but also with our peers, where several of our peers have reached out to say that they would like to discuss availability of hammers on an ongoing basis, and we have also made it very clear that that is very, very much our ambition, and we will prove it to the market that that is something that we are going to do. In terms of the backlog, as I said, around €2.5 billion, 77% of that has reached FID, and there are projects that are currently in the FID process now, and also, as I said, the projects that we see on the right side of this slide that are currently in the preferred supplier agreement status, they're not included in the backlog, but we do expect that these projects and two projects that we can announce in the not so distant future. So I would say all in all a very, very strong commercial momentum in the business at the moment as well and everybody is working full speed on those opportunities out there together with our clients. In terms of progress on the new build, now it's new build and singular before we are starting the T-Club, but we are expecting delivery on Wind Apex in the second quarter of 2027. This represents an acceleration that we have agreed with Cosmo and that is really to deliver towards the project that you saw in the preferred supplier category. We have seen that WinAPEX has achieved significant time optimization compared to the first vessel that was delivered. And I think that our collaboration with COSPO is really a fantastic collaboration where we do understand each other and we can speak about the various things that are going on. And that is also why that it was an actual next step for us to award COSPO with the CSAS new builds that will be delivered in 2030 and 2031 and we are looking forward to see them coming to the market as well and together with our partners from Portugal. Win8 also delivered ahead of schedule and on budget again a very strong performance that's now the 11th vessel that has been delivered and the second of the three A-TAC new builds and as we now start to take delivery of the A-class vessels, we will also start to have a fleet of these vessels that can support each other. It is going straight into mobilization with the mission equipment and having soon two vessels that are fully mobilized for foundation installation in a very flexible setup, we believe that that is something that will give us a very, very significant flexibility to support potential delays in the industry and also our clients really to ensure that we get these foundations installed on time on budget. and the next vessel coming next year will also be able to do that, although she will start with the turbine installation for the first period of time. Coming into the financial line-up, I hand over to Peter, so please take it away, Peter.

Yeah, thank you very much, Mikkel. Yeah, Q2 stands alone after three months, ending 13th of June 2026. We have adjusted for the comparable figures from 2025 for the termination fee that we received last year. In order to be able to compare on an average to average basis on the main activity of Caddler. So we have adjusted here for revenue, EBITDA and net profit for the €187 million. The revenue for Q2 was 282.8 million euro, that was a plus as compared to last year of 132%. Energy tube ratio was a solid 15%, which is stated at a very satisfactory level, nearly 91%, and also up from the The adjusted number from last year. The market cap amounted to 2 billion euros. If we look at 160.6 million euros, that is an increase of 106 as compared to last year. Then profit 95 million, which is plus 73% as compared to last year. So it's been by a million. Backup stands at 2.5 billion. and that is compared to the same period. Last year it is up 23%. 3 months steady average turnover of 6.9 million euro. If we look at the Q2 numbers in the full period, again we see that Revenue is up, and if we adjust for the termination fee last year, it is significantly up, and doubled, more than doubled. Feed utilization increased to 85% as compared to 76% last year, and that is up from the 48% we had in June 1st this year. as a result of the deliberate basis and they have been now mobilized and are on contract. The adjusted utilization is 100% compared to last year's comparable number. Cost of sales has increased by 0.93 million. And that is, of course, linked by the full core operating cost base of three additional vessels. It will be an Ally, a Mover and a Keeper. So we have now ten vessels operating as compared to seven last year. SDMA is increased by seven million euros, which reflects the continuous scaling of our Officers in order to, as we have explained many times, to be able to operate the bigger fleet, but also the foundation projects. Maisel Norvex is €9.871 per day. which is above the level that we have seen in previous quarters, basically just below 40,000 euro per tonne. If we look for the sixth one setting, pressures of fuel, revenue again more than doubled to the euro 480 million. when we adjust for the Euro 111 million in dissemination fees and approximately the same unadjusted availability or utilization for 26 as compared to the first half of 25 and then adjusted the utilization 85% for the 6 months. Again, the same two hours behind the increase in overpass cost of sales, and then driven by the three additional buses. And again, the HDNA has increased by 9 million as compared to last year, and again, due to the same reason of having a bigger back office to be able to handle the additional buses and get the foundation scope. and again Ibiza, more than doubled when we adjust for the German fee, which is now the current income. Finances, now we have an equity of 1.8 billion Euro, which is of course a portion of The capital increase that we made in the 21st of March this year, and then the positive result, the equity ratio stands at 50%, which is a solid balance sheet. This slide is the finished slide that we have shown before with the topics on the new principles, and now we have also included the net acquisition in this. to illustrate that we are not in need of any cancer increase to be able to take over MEDIC and go through this acquisition. As at the end of June 2016 we have all-in-one facility on the RCFs, A and B of 180, Then in July we made an additional home-cook facility with Santander, 40 million euro which adds of course to available liquidity. Main transaction, we got a bench facility of 380 million from GmbH and Rabobank which was then used for the payment of milk around the 500 million euro. So, then we are having the new bits still. We have the A-class bias of 510 million and A-class opus of 425. And then we are going to make a down payment from the ordering of the T-class bits of 1112, or 121 actually, it's not stated here, but it's 121 million euro.

Oh, it's not 120, it says in the call-up.

So, the liquidity leaves us with 280, and then the event facility needs to be repaid at some point of time. We have on the searching basis The negotiation of an additional or set-up facility of 250, i.e. we will finance the rest of the 280 that we have in which facility by the cash that we have available on hand. That leaves us with 150. This is, you know, a point of time, a snapshot, and it doesn't include the operational cash flow that will be running in the coming months, and also contribute to the repayment of the next facility. And it also only will include, of course, the first down payment at ordering on the T-class, which is 15%, because the The rest of the installments will come in 2028 and 2029, and for the majority will be within one year of the liquid. So this should hopefully make it clear for everybody that we will not have to do capture increase for the naked resistance. This is the financing overview. What has happened since last quarter is that we have signed it with APEX Facility. We signed it 10th of July. There were 7 syndicates and ECA backed by IFO. We have extended the RTFB until December 2027. Then we have off-sized the whole co-facility with this and from there. So that is the findings in the whole USFG. Full year outlook. This has to be said, it's without length acquisition. So it's kind of a stand-alone. We communicate on the impact from length. Later in the coming months, when we have the full overview of the impact, we maintain the outlook for 26, so a review in the range of 854 to 944, and the EBITDA still in the range of 420 to 510. So that much the financials. Over to you, Glenn.

Back to the commercial outlook, where I think that we are getting a lot of presence on how we see the market developing and what is it we are talking to our clients about. And I think we, as I already said, we are seeing a lot of activity at the moment and we see also that our clients are really coming to us now for projects that are starting, some of them are starting in 29, some of them are starting in 2030, 2031, 2032. but overall we do see a very sharp uptick in client activity at the moment for these years. I think it's also clear from what we in general discussed that there will be a lot of need for electricity and one of the solutions for that will be offshore wind and we believe it will be a firm part of that. We have also seen that with some of the recent geopolitical tensions that the importation of fossil fuels is not as straightforward as it maybe once was and hence there is really a focus on energy security at the moment that is also building a stronger momentum for renewable energy sources that are locally produced electrons in for example Europe and that is something we but also in general amongst our clients that are being strongly incentivized to do that and we see that by options that are being adapted to be more developer friendly and we think that that is the right direction to go in and we saw that Denmark had successful options now after having shifted over to a CFD scheme and I think that the successful options were also relatively priced and that is something that we have also discussed quite a lot. But one thing I would like to note is that in terms of projects being awarded in the market, we have already seen 26 more projects awarded than what we saw in 25 on a gigabit basis and with more to come. And we do expect also that 2027 will be a very, very strong year as well. So after We have done good work to make sure that we have a very strong baseline there, but now we are seeing an uptake that will especially impact the second half of 2019 and 2030, 2031 and so on. In terms of supply and demand, we maintain also our view that on the foundation vessel demand, there is a very, very strong demand for efficient vessels. This is what we hear again and again and again from the clients is that efficiency really matters, and if the solution is efficient, then that is the preferred solution. There's still somewhat of a gap between what is required and what is in supply, and the efficient vessels will be taken away from the market fast. They will be taken away first as well. We have also included the hammer again in the slide here to give a view on what we are seeing because the hammers are not exactly following the same as the vessel although a vessel installing a foundation project needs a hammer but there are also Thank you very much. and why is that so? That is simply because the ownership structure of these companies have not been focusing on aggressive outbuild of the equipment needed but maybe more on harvesting the cash in these businesses and hence we need to make sure that there is enough equipment ready for what we are coming with in the beginning of the next decade with Fiverr and also our peers that definitely have demand and a demand that we would very much like to help them supply. As you have seen a couple of times before on the vessel market and how it looks just in total numbers, not having any opinion about how these vessels are performing and how efficient they are, Kepler now stands at 14 vessels with the two C-classes now being firmly added with firm orders with the shipyard. And I think that as we have said in the past, but it really gives us the flexibility, the redundancy, and for the clients that really the reduced risks that they really appreciate and what we're also getting very positive, let's say, credit for from the clients at the moment. If we do look at what are efficient information vessels, then the picture looks slightly different, and that is why we do maintain the view that there is still a very, very high demand for these vessels that are efficient and thoughtless in the industry, because we do see, as we come into the next decade, that a lot of the vessels will simply not be able to install efficiently, or simply just hitting the 25-year mark, and hence having to look at retirement from the industry. In terms of our growth journey, I think it's evident for anyone that that is what we have been focusing on to be able to deliver a very strong customer offering and also a very, very strong value back to our investors with what we are doing. And I think that today's numbers also show that the growth journey is our plan and it is working what we are trying to do. But really, you know, focus has been that vertical and horizontal expansion. And here we really are deepening our foundation offering with the mint acquisition, but also with the O&M offering. And we do start to see the effects of the O&M offering. And as you saw from the backlog slide, we also now are first by one of these long-term O&M agreements, which we believe will be very effective to the whole capital story. and organic and inorganic growth. I think it's been done both just a couple of weeks ago, so I think it's self-explanatory, but that is where our goals have been to ensure that we maintain the position we have achieved with our clients where we are asked for basically everything They know that at any given time we likely will have capacity available. And I think we have had many good examples this year of discussions with clients on potential things that they would like to use us for. And I think that that is something we will keep continuing both in the short, the mid, and the long term. As you saw in the previous slide, we have a strong focus on securing some of these huge projects out in the future. On regional expansion, we are constantly focusing on being present. We see lots of expansion in the Asian market and basically we are being in every single market that is expanding in Asia at the moment and are very positive with these developments out there where we are working very much together with our key clients but also with new clients and the commercial team has done remarkably well in getting us into the right position in these new markets. Then there's also a very strong focus in the company at the moment on monitoring and applying new technologies. We are actively starting to work with AI on some of our data handling to ensure that we are more efficient in how we analyze these thousands of data points that we have from projects and pre-projects. to ensure that we had a better view of how the vessels were performing on the program and this is something that we will communicate more about in the future but also something that we will be starting to use on a more integrated basis in the company. We do see the value of this and we have been dipping our toes into it but I think that it's fair to say that we now see really the first three steps into using AI in our whole structuring of bits and programming with analyzing these many, many data points. And it also goes with our main data system where we will be sitting on 50 million data points on pilot driving, which we would like to also have to build a model around so we can ensure that both main and catalog can deliver a very, very high value to our clients on their projects. And then, of course, continuing what we have always done, focusing on strategic partnerships with our clients and also after the main acquisition with a new group of clients which is our peers. We have worked together with our peers for many years in many different ways and I've always said that the beauty in Fablet is that we basically can work with anyone and that More evident than ever after the LinkedIn position and we will do our part to really make sure that not only can our peers get the equipment that they need, but hopefully they can also get a better service going forward in the combined structure compared to what they had in the past. So that is very much our ambition and also what we are currently discussing with our peers and we will be also coming out with a very strong governance model to give them the feeble feeling around that as they rightly would expect from us. And just in terms of executing on growth in 2026, I think we have ordered the two new T-class vessels. It has been a very, very tough negotiation. One of the toughest ever, I think. The yachts are in a situation where they're basically fully booked. There's a lot of activity in the yachts. There's a lot of competition from other industries. And to have the two T-class vessels now signed and ready for delivery in 2030 and 2031 is a real milestone for everybody that's worked on this in Kattler. It has not been easy. The positive thing is that it will also not be easy for our competitors, and I think that we will see that it will be displayed going forward, I think, and I think that it will be very, very hard to order additional capacity. Carbocation, we have announced that, and we are still working full speed on that, building the team at the moment, and we will be announcing also on the asset side of that business as soon as we are ready to do that. And then last, but certainly not least, Welcome to all our new colleagues from Mint. We are very pleased with this acquisition. We believe that the combined value proposition of the two companies will be better together than it would have been on a standalone basis. And from the conversations we have had so far with the Mint team, we are also incredibly positive by how motivated they are for this new journey. We will continue to visit locations and come around and speak to all of you and it's been really good. So, last but not least, in terms of the key investment highlights, we maintain the largest and most capable and versatile feed and mission equipment. And what does that mean? It really means redundancy for the clients. We focus on relationships and partnerships and we do that from an industry-leading position where we will continue to create value for everyone. We have a global reach and experience and we are now the company that has installed most foundations by any company in the industry. We continue to see a structural undersupply and an increasing market demand, demonstrated also by the amount of preferred supply agreements and resolution agreements that we are talking about today. So we are in a very solid position. And then, as we also discussed a little bit previously, we are now also seeing an increased drive on the technology, not only on on AI, but also on technology for tooling and stuff like that, where we will be using what we are sitting on in terms of data points to really ensure that we can combine that and create value for our clients and really ensure that we are first with next-generation insulation technology. So with that said, I think that we move into the Q&A, so can you please take over?

Thank you. At this time we invite those analysts wishing to ask a question to click on the raise hand button which can be found on the black bar at the bottom of your screen. You may remove yourself from the queue at any time by lowering your hand. When it is your turn you will hear your name called and you will receive a prompt to be promoted. Please accept this prompt, wait a moment and once you've been promoted you may unmute yourself and ask your question. We encourage you to turn your video on as well. We will wait one moment to allow the queue to form. And our first question comes from Anders Rosalund Axted. You may now unmute your line and ask your question. Thank you. Our first question today will come from Jamie Franklin, rather, at Jefferies. Jamie, you may now unmute your line and ask your question. Thank you.

Hey guys, thanks for taking my question. So, great to see obviously second quarter utilisation really kind of stepped up. Just wanted to Your help with how to think about vessel utilisation through the remainder of the year. Could we expect a similar level in 3Q, 4Q or based on current scheduling, is there any reason that utilisation may be any lower in the third and fourth quarters? And then thinking more specifically about Horn C3. Clearly everything is very much on track so far. How should we think about the contribution from that project through the remainder of the year? Clearly good progress on the monopoles. I would expect that is continuing through the third quarter. And then is it right to think about the turbine installation kicking off at the start of the fourth quarter?

I think that we can say that we expect strong utilization for the rest of the year. We were building up in Q1 and I think that we will continue to see strong utilization for the rest of 26. There's a lot of activity going on and that's to carry our expectation. The program on Wall Street 3 is what we basically have discussed already and has not changed as such. We are, as I said, focusing on speeding up, and where we end exactly with the speed, that is still a little bit of a question mark, but we are very positive with what we have achieved. Of course, in the beginning of such a project, when you are learning, there are some big low-hanging fruits that you are picking, and then the fruits become smaller and smaller, but we continue because we are ambitious in this space. also because it is something that we will continue to learn for the next project. We are starting year two in the not-so-distant future. We have other projects that are being started in the not-so-distant future. And hence, the learnings that we capture now from Hornstein, that is something that we can really bring into the company. And it is a mindset change because we are really talking about production here. It is a much more production mentality on a project like that. And hence, we are very ambitious in terms of what we want to achieve. still having safe performance. So again, it is from first to last that we are looking at here now and we are already pretty fast but we want to potentially be even faster on that project. And in terms of turbine installation, turbine installation remains on track. That is also the ambition of everyone that we are starting the turbine installation as for what has already been contracted.

Okay very helpful thank you and then secondly just thinking ahead to 2028 so you mentioned obviously the preferred supplier agreement which hopefully will convert to a firm contract and then also there's a turbine project for 27-28 that could convert as well just wondering if there's much else you are working on and any other sort of potential additions for 2028 at this point?

I think the short answer is yes, but I think that they will be slightly later. And I think also there are extensions on current projects that are running into 28, which is not something that we include in this, but we have seen extensions on current projects also running further into 28 than what was previously expected. So I think all in all, I maintain what I said. We believe that the baseline is strong and there are more to achieve in 2028, but as we have said before, we believe that there will be additional work of progress as we get closer to 2028.

Okay, very true. Thanks. That's all from me. I'll turn it over. Thank you. Thank you.

Thank you. Our next question today comes from Anders Roseland at CERB. You may now unmute your line and ask your question.

Thank you. Can you hear me now? I have some problems with the technical solution. But anyhow, can you break down the backlog for the years 2026, 2027 and 2028?

Yes, I can, but we don't.

Okay. Then I have a question about the financials. Depreciation was and I assume that is both explained by the A-class vessel having a full quarter of depreciation in Q2. Is the depreciation level that we saw in Q2, is that the run rate we should expect going forward, say for additional vessels being delivered?

Yes, you should expect that. There can be also coming something from project equipment that is capitalized and then depreciated over the lifetime of the asset. But yes, we could expect the same levels, but then adjusted for full year impact and A's coming in now at Apex next year.

There are no impairments in the second quarter. In fact, I appreciate your conversation.

Sorry?

There are no impairments in the second quarter.

No, no, no impairments at all. Thank you very much. Thank you.

So as a reminder today, to ask a question, you can click on the raised hand button, which can be found on the black bar at the bottom of your Zoom screen. And our next question today comes from Audrey Zong at China Securities. Audrey, you may now unmute your line and ask your question. Thank you.

Hi. Good afternoon. This is Audrey from China Securities, and thank you for taking my question. and actually my question is, we observed that Kessler is trying to become a comprehensive platform rather than just a wind turbine installation company. And we observed that you still have approximately like 425 million Euro of remaining commitments for the A-class vessels. and you have recently ordered two T-class vessels for euro like 805 million and also you acquired LINK as an enterprise value of Eur like 500 million and has confirmed that the Scout Protection Investment Plan remains intact. So actually my question is, is it necessary to pursue all of these investments at the same time? What minimum IRR or ROIC hurdle do you apply to each investment? And from which year do you expect each of them to generate returns about the cost of capital? Thank you.

Yeah, it doesn't come at the same time, so to speak, because And then, of course, we have already paid the acquisition price. But on the new buildings, it follows a certain schedule. So, as said under the presentation, we have taken a delivery of A's now, and paid the final installment for that. So rent and A's is done. Then, some remaining capex are on Apex coming in next year. On the cheaper A-S, we will downplay now as ordering 120 million euros, but then next installment is, or substantial installment is in 2030 and 2031 when they are delivered. And also, somehow, I think the question, your follow-up on this is when will they start to generate revenue ACE will start to generate value early 2027 when it will go on projects that it is mobilized for. At the moment LINK is generating positive income and cash flow from operations from 11th of August. So already kicking in. And then the key part is that the majority of the fabrics is in 2030 and in 2031 and then they will start to generate costs 16 to 9 months after delivery. So it is a little bit more nuanced picture and some of the cost is also deferred. Disclose what is the requirement for return of terms and what we find that all these systems vary when we look at the IIR on these projects.

Yeah, I think you can vary beyond the target on every investment. And one of the things in particular on the C-class was that we achieved was a very back-end payment schedule and that was very important for us. So not only do we have a lower upfront payment than we have had in the past, but also we have managed to back-end the payments on the T-class vessels a lot.

Great. Great. Thank you. It's very clear and very helpful. Thank you very much.

Thank you.

So we have no further questions at this time. Thank you for your participation and I will now hand the floor back to Mikkel Gleerup for any closing remarks. Thank you.

Thank you to everyone for listening in. Thank you for your support and yeah, we will continue to work hard to deliver on our targets. Thank you very much. Have a fantastic day. Bye bye.