Svitzer Group A/S

Welcome to our Q3 call and thanks for dialing on everyone. I am Kasper Nielaus, I'm the CEO of Switzer and I'm joined by Knud Winkler, the CFO, and we'll take you through the presentation and then happy to take any questions you may have in the end.

Good.

So if we start an agenda, I will take you through the business performance. Then Knut will go into detail on the financials. And then, as mentioned, we'll have a Q&A session in the end. So let's jump into it. So the highlights of the quarterly results. So we had a revenue growth of a little more than 9% in context. exchange rate when compared to Q3 2023, and the EBITDA increased by more than 14% in the constant exchange rate, which also led to an increase in the EBITDA margin. So we are on track to deliver the financial outlook for 2024 after so far solid performance in 2024. So overall, we are very happy with the result of quarter three. It's a solid performance. Then we took delivery of our first transverse truck. We can talk a little bit about the transverse truck in previous calls and communication. It's a new design that we have done in Switzerland. We took delivery of the first one. We're currently doing jobs with it in Amsterdam and collecting all the data. But so far, it's proving to be as good as we hoped. We also placed an order for another transverse truck. We'll go a little bit more into it on the next slides, running on battery with a methanol backup engine. And then we actually also order four more transfer to us for feed renewals. So we have quite a few in the order book. On the commercial side, we have so far extended all the contracts that were expiring this year. So all our terminal tourist contracts expiring have been extended. And we started a new operation on a five-year contract for a truck in Brazil. Also on the commercial front. If we dive a little bit more into our transfer truck design, then we took delivery, as I mentioned, of the first 26-meter long transfer truck. We have put it into Amsterdam where there are a lot of truck jobs, so we can get a lot of experience with it quickly. The hypothesis was, which was, of course, backed up by tank testing and modeling and so on, that it will be more efficient, so less fuel consumption, and also able to do truck jobs faster than traditional truck designs. And so far, our results confirm it. It seems to be a nice fuel saving on double digits, at least on the fuel consumption. And it is as maneuverable and as safe as we hoped it to be. So when we have enough data to fully document the performance, then of course, we'll be explaining that to a larger audience. So as I said, we ordered in the quarter one new truck running on batteries. I think that's the next slide. So battery, six megawatt battery package on this truck. It has a backup engine that can run on methanol and also another backup engine that can run smaller engines on diesel or biofuel. We will deploy it into Gothenburg when it's delivered in 2026. We expect that it can do 90 percent of its operations on the batteries, so green shore power, and then it will have backup power from the two engines. So what this signifies, of course, for us, a significant milestone, also the industry-first battery methanol truck. And then it also – we've also focused our efforts and decarbonization agenda on the electrification of truck boats. So expect to see more in the future on this front. If we dive down to the regional highlights, Australia, we have seen progress across all regions. Australia, which is our largest region, it's more than a third of our revenue and earnings. We had a good revenue pickup, also a significant EBITDA increase. led by the contract we've been talking about a few times. New contracts have started up, including the Woodside contract that started up in Q4 last year, so full effect in Q3 this year. Also, the contract with BHP, the mining company, where we now have four TOFs deployed, still waiting for the fifth one, has full impact here in Q3. So, big impact from the terminal toad segment, also from the harbor toad segment by turf increases. And then we had a few special jobs that we also did. The volumes were a little bit lower than Q3 2023 in Habitats, but more than made up for by the revenue increase or the tariff increase. So also a good margin increase. If we look at Europe, Europe is the other big region, a little bit smaller from a contribution size than Australia. Then we also here saw a significant revenue increase and a big EBITDA uplift. Again, we had impact material increases. We had the contract in Greece, the terminal torch contract in Greece that had a full effect in quarter three and was not in quarter three, 2023. And there was also a special operation job, a smaller, yeah, special operation job in Northern Denmark. And the activity also improved in harbour torch. So good progress also in Europe. Americas, we have traditionally seen over the last few years significant growth. And we have a mix of harbor toads and terminal toads, primarily harbor toads. So we also saw revenue increase and EBITDA increase, not to the same extent as we have seen in some of the other quarters or the other regions, primarily due to also Q3, last year in America has been quite strong with a special operation job in Q3 last year. So still strong performance from America, still good volumes, and also here we've seen we've also had a special job during the quarter. And then we started up, as I mentioned initially, this new contract for a top for five years in Brazil. If we look at Asia, Middle East, Africa, It's a region primarily almost exclusively made up of terminal storage. However, we do have one operation in Morocco, that's harbour storage terms. We saw also revenue increase primarily from the harbour storage operations, of course, also from the escalations we have in the terminal storage contracts. And then at Flat Ibida, we also saw cost increases in the harbour storage operation in Morocco due to the high volumes. We extended our terminal storage contract in Liberia for a five-year term during quarter three. So I'll hand it over to Knud.