Bonheur Asa

Good morning, everybody, and welcome to the first quarter presentation for Bonheur. My name is Annette Olsen. I am the CEO of Bonheur and Fred Olsen & Company. And with me today, I have Richard Olavo, our CFO, and he will do the first part of the presentation, as usual, And then the CEOs for the different segments will come and present. And we will take the questions and answers at the end. So, Rikard, over to you.

Yes, thank you, Anette. And also a hearty welcome from me to this first quarter presentation. We have a mixed quarter. On one hand, we have an improvement in our operating result with 132 million, which of course is positive. On the other hand, we have had some wind farms that have not operated as capacity due to technical issues. And we have had a cancelled cruise for Balmoral due to the geopolitical situation in the Red Sea. And obviously, without these issues, the operating results could have been better. So again, it's a mixed report this time. I will quickly go through the main events in each segment, as they will be thoroughly covered by my good colleagues. Starting with renewable energy, where we have a small year-on-year improvement on the EBITDA, but we have to remember that first quarter, 24, was a very low wind speed quarter. On the very positive side, we have seen higher power prices in the UK, more than compensating the very low power prices in northern Sweden, where there are severe issues with the trapped power in northern Sweden due to lack of transmission capacity from north to south, which Sofie will come back to. Like I said, generation is low this quarter. It's 21% lower than the P50 estimate, which is the kind of midpoint estimate for wind given historical wind resources in the various countries. The observed viewer of this presentation will note that we now report this including compensated curtailment to have a more clean number compared to the technical issues where where we also then include on generation what we actually get compensated for. This is a trend we see that governments will compensate for curtailment due to the big impact of renewables in the grid. So we think this is a better way to present the figures going forward. But then the 21% deviation is then really related to low wind in the quarter, in particular in Scotland and Norway, but also due to technical issues that we also come back to. Very good. Mid-Hill, that was out for half of last year, commenced operation back in 25th of January. And also very good in the quarter that the two big projects that Foras have undertaken, Crystal Rig 4 and Windy Sander 3, which are CapEx programs of close to 3 billion Norwegian kroner, are progressing on time and budget. Moving on to wind service, despite only 57% utilization for a bold turn and blue turn, we have a strong improvement on EBTA from 174 million to 280 million. And also the two yard stays for a bold turn and blue turn have went well, which Håkon Magne will also come more back into in his presentation. Also in the segment, we agreed in the quarter in March to sell our 50% stake United Wind Logistics to our partner. And that was closed 30th of April. Moving on to cruise, and we don't have a separate slide on cruise in this deck because the main things on cruise are actually covered in these bullet points here. Its results clearly lower than where it should have been and also lower than we expected. The main reason for the lower result is that we had to cancel one cruise for Balmoral, a long cruise to Asia that was going through the Red Sea area. And due to the geopolitical situation, we deemed it unsafe to conduct that cruise. That is the main reason why the occupancy is only 63%, as Boletta and Borealis have operated as expected in the quarter. So it's really one main event in this quarter, and that is the impact of this cancelled cruise for Balmoral that we were not able to replace with high-paying guests on replacement cruises. Booking numbers are up 11% compared to last year. And that also includes the week first quarter. These are the full year for 25 and 26. And we also started to selling some world cruises into 27. So that's 11%. We have utilized the market turmoil in the last months to hedge 75% of the estimated bunker consumption. And we have hedged that in pounds sterling. On the other investment, we see an improvement of 35 million. The main driver for that is NHST, which continued to perform much better than in the past and had an EBITDA of positive 38 million in the quarter compared to a negative 3 million first quarter last year. There are also some interesting trends around Fred Olsen 1848 that Per will cover more in his presentation. But we see now on floating that the technology we have developed, Brunell, finally we see that the markets start to appreciate the big benefits of that technology. And we see that also on the floating solar side that it's really picking up in Southeast Asia. Despite having a few issues in this quarter, like I said, it's a quarter with improvement compared to first quarter last year with 132 million. And it really supports this long term trend that we present now in each quarter. Where we came out of COVID and the recovery in energy prices, but also the strong performance in the wind service segment, we have been able to lift our 12 months running EBITDA between 3 and 4 billion. And we see this quarter actually add to that trend with a small tick up in this quarter due to that you're replacing fourth quarter last year with an improved 132 million. So it's supportive of this trend we have seen and the 12 months rolling EBITDA now stands between 3.5 and 4 billion as you see here, which is more than a doubling of the level pre-COVID. On the numbers, we have covered several of these, but it's maybe important to note a few things on the revenues and the margins. And on the revenue side, we are more or less in line with the revenue last quarter with a drop of 77 million. And it's really in the wind service where the revenue drop is the biggest of 109 million. While on the other hand, the EBITDA in the wind service improved by 106 million. That is related to the Shimizu contract that has a much lower margin than we have on the vessels that we own, Blue Turn and Brave Turn and Bold Turn. So it's purely a mixed effect on that score. The lower revenue on Cruise is really only related to the issues on Balmoral. And the variances on the EBITDA we already have covered. Then on the consolidated figures, we've been through the revenues and the EBITDA, improvement of 132 million. Depreciation is higher. That is related to that we're now starting to depreciate both cranes or upgrades on the turn vessels. So we see higher depreciation. Net finance this quarter is on a very normal level when it comes to net interest, but we have some unrealized currency effects related to internal loans. They will fluctuate up and down each quarter. On the first quarter last year, we have some very positive unrealized effects. I wouldn't pay too much attention to those unrealized effects, but rather the slide will show later on the cash and debt in the group on external level. Tax cost is lower that we are not in Taiwan this quarter where we paid the tax on the operation. Final slide from my end is the group capitalization per first quarter 25. As you remember from the fourth quarter presentation, we presented then the capital allocation framework, which is closely linked to our financial policy. I will not repeat the financial policy and the capital allocation framework in this presentation, but rather spend time on the figures. On the figures, there are no material changes from last quarter, but it just confirms the policy. If we look at the 100% owned entities on the top, we have at the end of the first quarter a cash position of close to 5.2 billion, and an external debt of close to 3.5 billion, so a net cash of slightly more than 1.6 billion. And as you see, the subsidiaries control 100% of Bonneur are all net cash positive, and cash and external debt in Bonneur is matching around 3 billion. Where we have significant debt is in renewable energy, and that is related to the two joint ventures in Scotland, where we have optimized the capital structure according to the financial policy and the capital allocation framework by taking in very competitive short-term, long-term project debt and also competitive priced equity by partners. So there we have a net debt position of 4.5%. Close to 4.4 million on the two joint ventures. And on the wind service, where we don't control 100%, which is UWL, Global Wind Service and Blue Turn, cash and debt is fairly matching. We have presented in this report a note eight where you can see the effect of UWL going out of the balance sheet. So here it's included and it's also included in the numbers in this quarter. It will go out in the second quarter. And from the note eight, you can see what will go out on the asset and the liability sides from UWL going forward. My final remark on this slide is very important to link this to the policy and that we walk as we talk when it comes to the numbers related to the policy. So by that, back to you, Anette.

Very good. First company to present is Fred Olsen Renewables with CEO Sofia Olsen-Jepsen.