Bonheur Asa

Good morning and very welcome to everybody to Bonheur's second quarter presentation. My name is Annette Olsen. I am the CEO of Bonheur and today as usual we will have our CFO Richard Olavo presenting the figures and also the CEOs for the individual companies will present. At the end we will open up for Q&As so welcome everybody and Richard.

Yes thank you Annette and also a hearty welcome from me to this second quarter presentation. As an overall picture we're delivering a solid set of financial figures this quarter. Apart from some downtime in Fred Olsen renewables the companies are delivering well and in addition we have booked the gain of the sale over 50 percent share in United Wind Logistics. So in total the financial figures for this quarter come in at a strong level. I will now go through each segment quite briefly and with a more financial focus because they will be covered more thoroughly by the CEOs and then I will go through the consolidated P&L figures and also cover the sale of UWL in more detail so you can understand the financial effects and finally I will cover the balance sheet before handing over to the CEOs. But the highlights for the various segments Renewable Energy had done EBTA of 127 million down from 259 million. You could assume that due to the steep drop in the power prices in Sweden that the pricing is the main driver behind the drop. It's true we have very low power prices in Sweden but the prices in the UK are holding up quite well and UK is a much bigger part of our portfolio so pricing is not the driver for the reduced EBTA. The main driver we find on the generation side which is 20 percent lower than the P58 estimate and that's due to continued downtime in some of our operations and particularly at the Crystal Rig 1 wind farm where we also have rocks and good prices so lost generation there is also hurting from a financial perspective which Sophie will cover more in detail. The construction projects Crystal Rig 4 and Windy Standard 3 large projects total capex close to 3 billion kronor progressing according to plan very important and then Lars will cover the significant development in Scotland where we now have the onshore consent award for the Murmur project and knowing the grid situation in Scotland that's a very good achievement. Wind service requires some explanation this quarter because here we have a lot of effects I think I would point your attention to the fourth bullet point this has been a good operational quarter so if we look at just Fovec and Global Wind Service which will be the two operating companies in that segment going forward post the sale of UWL they deliver an improved EBTA of 145 million NOC when we exclude the significant termination and reservation fee effects in the wind service segments. I'll come back in a later slide hold that hold those reservation fees and termination fees affect the quarter but underlying it's a strong delivery from both Fovec and GVS in this quarter. I think also an important achievement in this quarter is the divestment of UWL and I'll come back to the financial effects from that but overall in EBTA is down from 763 to 584 and effects on the termination and reservation effect of that is 305 million net so if you take that out and add back the 145 million from Fovec and EBTA and a small effect from UWL you get to the 584. Then on the cruise an improvement from an EBTA of 212 million to 307 million almost 50% improvement in EBTA we're still sailing with less than full ships occupancy improvement to 79% also lower than we are aiming for. We see that net ticket income is up from 196 to 210 and we also have lower cost this quarter than second quarter last year where we also had a one-off related to the whole America case. On the other investments positive EBTA of 35 million compared to negative 4 million the main driver for that is improved results in NHST which had an EBTA in the quarter of 63 million up from 44 million similar quarter last year. The long-term trends since 2017 on EBTA and revenues per segment and total continues approximately the same level we have been with this quarter somewhat lower revenue due to this effect of the termination fees and we see also the EBTA are keeping on the same more or less the same level as in the last couple of years. The divestment of United Wind Logistics was announced in the first quarter but this quarter it will show the effects on the account. I think a very easy way of looking at the financial effect of this is that we acquired these shares back in 2019 for 12 million euro and we sold them for 48 and a half million euro so it's a gain buying and selling of 36 and a half million euro and in Norwegian Kroner it's more because the euro rate was lower than we acquired and when we sold. However when you look at the effect on the consolidated group level accounts the effect is less than the 36 and a half million euros it comes in at an effect of 29 million euro or a 347 million financial gain this is not part of the EBTA it's a part of the financial gain in the quarter. The reason why you have a delta is obviously that we have taken in the profits from UWL in the period while we have not received dividends as the company has paid down debt on the ships. The cash effect is 51.2 million euro because in addition to this equity price for the share of 48 and a half million was a share of 2.7 million that was paid back in Cuba. So what should you expect going forward? Well we sold the shares for 48 and a half million for 50 percent of the company so the full value of the company was then priced to 97 and a half million euro. The EBTA of UWL the last years have been around nine million euros that will now go out from our accounts going forward so a very easy way to think about it is that the company on equity value was sold on a hundred percent basis for 97 million euro and it's around nine million euro that will go out from the consolidated EBTA going forward. Then going a little bit more into the variation between second quarter last year and second quarter this year on revenues and EBTA. Renewable energy mainly lower generation both on revenue and EBTA which Sophie will cover more in detail and then we have the wind service where we see the revenue is down almost a billion mainly related to the termination and reservation fees in previous years but I would like to point your attention to wind service EBTA which again is down 179 million. There we have booked a positive reverse or positive effect of the termination fee of 100 million in this quarter while we had a positive effect of 405 million in the same quarter in 2024. So the net of this is 305 million negative effect from 24 to 25 while we see the variance is only a reduction of 179 million. So hence there has been a strong underlying improvement in both global wind service and Fred Olsen wind carrier mostly in Fred Olsen wind carrier. Cruise lines and NHST already commented on a little bit of a credit to NHST improved revenues and good cost control in this quarter delivering a strong strong quarter. Yeah. And then on a consolidated basis already comment on the revenues and EBTA. On the depreciation is a small special effect this quarter is that we could reverse an impairment all 23 million NOC related to mentioned solution in this quarter that was a debt item that we could now eliminate and put back on the on the impairment. So a positive effect there of 23 million. Net finance is positive this quarter that was negative with 130 million same quarter last year and that's basically the gain on the sale of UWL shares with 347 million. That's the main driver of the 320 million variance year on year. So earnings before tax comes in at 967 million 164 stronger than last year. Tax costs are down because we basically where we earn money in this quarter is all the vessels which are all in the tonnage tax system. So other less profit in renewable energy where we are in a taxable position. So the net result come in 226 million stronger than second quarter last year and as the main profit generator in these quarters are 100 percent owned by the donor the share of the results to the parent is quite high this quarter with 877 million to the parent compared to 596 same quarter last year since improvement of 281 million. So for the parent company this has been a quite strong quarter. Finally from my side the capitalization per second quarter I will not go through again the policy and the capital allocation policy but I just remind you what is to the left there and how important it is to us but more focusing on the figures. As usual we have split this in the entities we control 100 percent and the joint ventures and where we don't own 100 percent to the bottom. Where we own 100 percent the cash position now is close to 5.7 billion and the net cash debt is 3.5 billion. The only significant external debt we have where we have 100 percent are the bond loans in Bonnur. And as you see the net cash debt in Bonnur is down by 321 million that is basically related to that we paid out dividend to the shareholders in the second quarter and that we have not upstreamed the cash from wind service. You would see in wind service there is now a cash position coming from the UWL sale and the strong results in Fred Olsen wind carrier are more than 2 billion in cash in wind service and very little external debt related to break turn and bolt turn so a net cash and debt position in wind service so close to 1.7 billion. On the less than 100 percent but more than 50 percent on entities there is no significant development in renewable energy that does some basically related to the joint ventures in Scotland. While on wind service obviously these numbers now are without the United Wind Logistics so these numbers are really related to global wind service and and blue turn in particular. Yeah so that takes Annette me to the end of my presentation.

Yes good thank you. First one to present today is Fred Olsen renewables with CEO Sofia Olsen-Jepsen. Thank

you very much. The highlights of this quarter is that production were below estimates due to the low availability and also low wind in Scotland. We see weak power prices and curtailed generation in Sweden despite there being quite high winds and then finally the construction of our two wind farms in Scotland is progressing well. So moving on then we have presented our business model previously with the overview of our projects. No highlights or news to mention there today so I will just keep it here and then move forwards. Talking about the market because we do see that the average prices have declined due to a low demand which is not unreasonable given that we have the onset of the in the more southern regions of Europe but not the same amount expected in northern Europe. I think the most remarkable thing to note in this quarter is that we have had a record amount of negative price hours up over 50 percent year to date compared to last year and this is driven by solar and wind generation because we do see in general that the renewable energy supply is high in general. Moving on then to comment on our production. As mentioned the generation is below budget due to downtime and there are three main reasons for that. Crystal Rig 1, our wind farm in Scotland, has technical and operational challenges at these early 2.5 megawatts turbines or early generation I should say as they were very novel at the time they were built. We do have a turnaround program ongoing and are working closely with our service provider to really get this turnaround. In Sweden we see that Högaliiden has had technical challenges related to blade bearings and several have been exchanged in the quarter and that has been the main reason for the downtime there. Now that is solved but going forwards we have mentioned, sorry, seen that we needed to take three turbines offline as we want to investigate some suspected blade cracks. I think this shows the importance of being proactive because they were identified during some proactive drone campaigns that we had on the wind farm. Midhill, our wind farm in the northern part of Scotland, has had a grid outage from 16th of June to the 13th of July. There is unfortunately a planned grid outage from September 25 until May 26 and there is work ongoing to try to mitigate this impact to see if that can be done in any way. However, an outage should be expected on this wind farm in that period. Then we have had high winds as mentioned and periods with then low negative prices in Sweden which means that we are curtailing production and a measure to counter this is that we are on the way to access the incinerary market in Sweden which has had record prices lately. Then we have had low winds in Scotland on top of the impacts mentioned above which has further reduced generation. So moving on then to address our construction projects. The first one is in Scotland in the south west. Windy standard three progressing well. There is a lot of trees on site and the tree felling has achieved its first milestone ahead of time. We are now have been constructing the roads and the hard stands and the construction compound is where all the activity is done from. Then we have another construction project as well, Crystal Rig 4 which is a bit progressed in the timeline and all the hard stands are now ready for turbine installation. We will now start the transport of the turbines components. This is the more exciting time I would say of the construction period when we actually do see the erection of the turbines. Then we have also had the transformer delivered to site and the installation and commissioning of this is ongoing. So summing up, production is below estimates due to low availability and low wind in Scotland. We have had weak power prices and curtail generation in Sweden despite high winds there and our construction projects are progressing well. I also wanted to mention the reason why we are here and what we are working to achieve every day and that is actually that we do very strongly believe that onshore wind plays a core part in the future energy mix and we do see that Fred Olsen renewables benefits from having a presence in very committed markets like the UK, like Italy, like Sweden and that we do have a strong pipeline.

Thank you Sophie. Lars Bender, CEO of the SeaWinds.

Thank you Annette and I will take you through the highlights for Fred Olsen SeaWinds this quarter but before doing that I thought I would make a few overall comments both in relation to the quarter but also in relation to our projects and as you see here the first point is that we have strong projects in attractive markets. Coddling Windpark is a fundamentally strong project. It's one of the largest bottom-fixed projects in Europe and as important it is sitting in a market where the government is in strong support of offshore wind. In Scotland we have MuirWare which is a floating offshore wind project with the potential of becoming the first large-scale floating project in the world. Again a project with strong fundamentals and also a project which sits in a country with a strong governmental support. The reason I mention this is because this is naturally key for us that we have strong projects and it's key also for our strong belief and confidence in taking these projects forward along the way. The second bullet in relation to our projects we apply what I would call diligent development strategies which basically means point one we maintain lean cost and davix profiles. Secondly we minimize pre-FID commitments and then thirdly and as importantly we focus on delivering incremental value and progress on the projects quarter on quarter and this allows us to be flexible in the development but it also allows us to progress the projects in a manner where we can gradually take them towards the next milestones and I think that leads naturally to the third point which is good news for this quarter. Richard already mentioned it we had an onshore consent award for our MuirWare project in Scotland which I can say a bit more about what that means for the project if we turn to the MuirWare slide. Because we've now had an onshore consent granted which naturally is positive is a significant milestone and it's a very well executed job by the team in Scotland so very well done. Now we are naturally awaiting the next step which would be the offshore consent which will come first half of 26 or at least that's the expectation following the final consent award the project will be in a position for bidding into a CFD option. Another advancement over I would say this quarter but also the last quarter is that our grid position has significantly improved we now have a radial connection and we are also eligible under the UK connections reform process so both our consent and our grid is coming along nicely and advancing in the manner that we we had hoped. This also supports and emphasizes the strategy we had from day one which has been one of the first mover projects in Scotland for floating offshore. And with that I will turn to Kotlin. Naturally a focus point in Ireland is the consent application process which I've mentioned I think numerous times on these quarterly presentations and we follow it closely. The planning body is now starting to request further information from the different projects which is a I would say natural next step in the process of planning. Very importantly and I think worth emphasizing also based on my earlier comment is that we had a new Irish government coming into office not in this quarter but the quarter before and we very much see a government that is very committed to offshore wind and committed to progressing this rapidly and with government support in basically paving the way for these first projects in Ireland. And naturally Kotlin remains key to the government's ambition in reaching its offshore wind ambitions. So in the project we are of course focusing on being ready on the back of the consent determination and the award of final consent to execute the project. So I'd say overall a quarter with some good news in Scotland with both advancement of grid and also the consent on onshore but also very importantly I think it's important to mention we have strong projects in attractive markets which we have strong confidence in. And with that I will give the word back to you and a wish of a nice summer holiday.

Thank you Lars. Next is Per Arved Holt. I'm not going to sing the birthday that's fine thank you. Happy birthday.

Thank

you. And you will present for us the technology developments.

I will yes. So for 1848 this time we will start with floating wind and reflecting a bit about the importance of the project certification process and how we have attacked that and and joined up with some observations and then for floating solver then we'll share some observations from the last quarter. So looking at

a certification process that has been something that we had

focused on from the start. Now a certification process is really a technical de-risking of a project development and this technical de-risking that is done by technical concept according to a set of requirements agreed requirements which are defined in industry standards which have then been accepted by all the industry stakeholders and by industry stakeholders and that is of course a normal food chain with vendors fabricators and developers but it also include other stakeholders such as banks giving loans and insurers providing insurance. So to the right here you see that I have stolen two figures out of two search industry standards these two issued by DNV showing a typical certification scope and and which parts of the technical system which are typically de-risked. For a bottom fixed project just to compare with that before moving into floating you typically have a certified turbine the start so a certified turbine type certified turbine that is that means that the turbine itself has been pre-certified according to a set of boundary conditions then you take the pre-certified turbine and you integrate it with a site specific foundation being a monopile or a jacket and that is done as part of the project development process. For floating wind that's a bit different because the floating foundation itself can affect the operation of the turbine so in effect the turbine and the floater needs to be certified as one unit and the benefit of that is that that one unit is much less site specific dependent on site specific conditions so that means that you can with the industry standards available today you can take out a larger chunk of the technical de-risking scope outside of the project development and away from the critical line of the project. So from our side there has been an important feature when we've been working with Brunel to achieve an advanced level of certification as early as possible. So how does this look out into the market? Well for us we know that there are certain floating designs has achieved an advanced level of certification for smaller turbines but when it comes to commercially sized turbines such as announced our basic design certificate in October but then this quarter BVDO follows suit announcing their basic design certificate and for us we believe that we have a good solution when it comes to to industrialization and performance but this news is also good for the floating industry it's stepping in the right direction is my view. So that concludes the floating wind part on the floating solar this is much the same observations as we shared last time Asia continues to lead the way with the utility scale projects this quarter underlined by by the Philippines preparing for the fourth energy option green energy option and by that the Philippines will have a total pipeline around three gigawatts for a floating solar. Hybridization with hydrodams shows good potential we see that is also the same continuing Vietnam and Thailand has announced more projects and and in fact the largest most projects in Asia today is is hybridization projects and then on the last bullet Europe is slowing is moving forward but slowly then that was in use this week underlining that we thought with Italy launching a therefore 50 megawatts for floating solar which is very very positive but of course a different scale than what we see in in Southeast Asia so by that that was my good

thank

you

welcome Magnore CEO of the North Wind Area.

Good morning everyone I think for second quarter for Fovik was a mixed quarter but I think it's mixed in a good way if you look at what Airways did one of the vessels preparing for a monopile drilling campaign one vessel installing turbines one vessel doing OEM so I think it's a good testimony of the diversity of our vessels and our organization. We also had some west yard but despite that the financials came in at a solid level as highlighted by Richard earlier. On the market side I think we reiterate the view that we communicated for the last quarters that we see a very tight market the next years but we see some more volatility creating somewhat reduced visibility as we go along. I think if we go over to what the vessels did last quarter as I said we had Bolton she started to prepare for a large offshore monopile drilling campaign with Saipem. I've updated the picture to try to illustrate the size of the drilling equipment that's gone on board. Normally this is a huge deck area now you only see drilling equipment and the temporary living quarters. Brave Turn completed the energy project in May thereafter she went into yard to do the upgrade of the aft to do a generic 15 three turbine setup so we easily can switch between Siemens and Vestas turbines and to do some other maintenance. Blue Turn she came out of yard during the period and she commenced O9 campaign with Siemens. Also updated the picture to illustrate what we're doing we have made a huge tent which is basically a fabric on board. Blue Wind continued on the Heilong project during the If we go then over to the financials it was a solid operational quarter we had a 99% utilization when we was on contract taking into account the downtime we incurred in the yard and between the contract and yard the total utilization was 73%. I think I've been standing here for some quarters now talking about yard I don't like it but we see now that this high activity with planned yard activity is coming to an end. Brave Turn will now be in yard for most of the quarter but I think that should hopefully mark at least it marks almost three quarters with higher than normal planned yard activity. The financial for the quarter came in with an EBTA of 42.1 million euro which is very good but please note that 8.8 million of this is an accounting tech of a previously announced cancellation fee back from a contract termination in Q4 2024. Then over to the market and backlog I think in general we have seen fewer than normal new contract award in first half of 2025. A lot of what has been announced has been early announced reservation agreement and acceleration campaign meaning that you need more vessel time and or there is has been cold issues on the turbines leading to more vessel time. This was the same effect for Fulwick this quarter we did not book any new major contract so the backlog went from 426 to 352 million euros. On the market as mentioned we continue to see a tight market going forward in next years with increasing activity. We also see that the ongoing value chain issues we have the growth pains that we see in the offshore wind industry which started two three years ago is again impacting the demand creating some more volatility and some more uncertainty on the visibility when we go more out into the decade. But if you look then at our tendering activity we always track the number of active tenders and you see the number of tenders that we have in the pipeline today is at a very strong level also when you compare it to 23 and 24. So activity on the tendering side remains high and that both for project in the medium term but also on the longer term. So I think that concludes my remarks.

Thank you. Richard we'll talk to you about Fred Olsson Kurslunds.

Yes thank you Annette. We're very pleased to see that coming out of a quite weak first quarter where we had the impact from the cancelled cruise in the Red Sea or due to the geopolitical situation in the Middle East that impacted our first quarter in quite a material way. So we're quite pleased now to in with the results that is significantly improved from second quarter last year. And we see on this slide that some of the drivers passenger numbers are up 12 percent second quarter last year to this year and also the yield per passenger is up 7 percent. And despite that like I commented earlier we're still below 80 percent occupancy so there is still room to grow. And that leads me to the third bullet point there is the cumulative sales going forward. We also had a quite strong booking quarter second quarter this year so the cumulative sales now for the full year 25 including the weak first quarter 26 and 27 is 11 percent percent up. That leads me to the next slide then apart from a very nice picture of our very good vessels there are a couple of important points in this slide and one is you see some of the destinations we're going to which we think are very attractive destination for customers. But I'd like to point your attention to the number of cruises. Each vessel now has a double digit number of cruises in the quarter so it's quite short cruises compared to what we have in fourth and first quarter during the winter season where the cruises are longer. What we're able to do with these shorter cruises is attract a lot of new guests that are new to Fred Orsen cruise lines and younger guests that will be important going forward. So this is quite important that we utilize the summer season with shorter cruises where we can attract younger audiences which have less time for cruises into more cruises for a week or so on to quite attractive destinations in around in Europe as you see as you see here. So it's a big shift between the winter and the summer and that has been executed so far this summer quite successfully and that's also what we see going into second and third quarter next year. So a key challenge is how do we do this in the winter season maybe in a improved way which which cruise lines is is working on. But all in all a strong improvement from second quarter last year but still a lot more potential in the company.

Good.

Thank you.

This now concludes the main presentation and we will move to the session of questions and answers.

Thank you. To ask a question you will need to press star one and one on your telephone and wait for your name to be announced. To withdraw your question please press star one and one again. Once again if you would like to ask a question please press star one and one on your telephone keypad. I will do another reminder if you would like to ask a question today please press star one and one on your telephone keypad. There are currently no phone questions. I will hand the call back to you. Thank you very much and it remains just to wish you

a very nice summer.