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