Good morning, and welcome to Cadeler's 2024 Annual Result Report 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 Cadeler's results to differ materially from today's forward-looking statements include those detailed in Cadeler'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 Cadeler undertakes no obligation to update these statements as a result of new information or future events. This morning's presentation includes both IFRS and certain non-IFRS financial measures. A reconciliation of non-IFRS financial measures to the nearest IFRS equivalent is provided in Cadeler's Annual Report. The Annual Report and today's earnings presentation are available on Cadeler's website at cadeler.com/investor. We ask that you please hold all questions until the completion of the formal remarks, at which time you will 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.

So good morning, good afternoon, and good evening, and thanks for listening into our presentation, the Annual Report 2024. Very, very pleased to be joined by all of you and looking forward to go through our annual results from 2024. So that's a disclaimer. I would recommend everybody to read the disclaimer at a convenient time, but we will dive directly into the 2024 highlights for Cadeler. So in 2024, we had very strong financial performance and we believe that it was consistently strong through the year and that we were able to narrow the guidance that we had for 2024 in our Q3 presentation and also as we have now shown in our final results, that we are at the upper end and actually above the upper end on the EBITDA. We also give a guidance for '25 that shows that we are on our trajectory for the growth in 2025 and as such are very pleased with that. In terms of our newbuilds, we have delivered Wind Peak in 2024 on time and on budget and we have also in this year, in January 2025, we have delivered the first M-class vessel from Hanwha on time, on budget, and are also at a point where we can say that we are on track to deliver the remaining vessels on or ahead of time target, on budget. And we are, I would say, within hours from delivering the next vessel, which will really put us to 50% of the 2025 deliveries completed. In terms of our backlog, we continue to build the backlog, and we will go more into that in the presentation itself, but we are now standing at a backlog of EUR2.5 billion as of today. We have also in 2024 been executing our projects incredibly well…

Yeah. Thank you very much, Mikkel. This is a key financial highlights for '24. You can see revenue doubled from '23 to '24. SG (ph) ratio went a little bit down, but still very solid balance sheet. The reason for it is of course, that we are drawn down on our loans when we're getting the vessels delivered. Utilization was 83% adjusted and now we saw -- I think it's for the first time, we saw both an adjusted and unadjusted utilization and the utilization which is adjusted, that is where we adjust for planned dry docking, oil fire, and for transit from the yards in China to Europe. So that gives a better number of what kind of utilization do we have on the vessels that we have operating. The reason why we see also what obvious is that Zaratan due to the Taiwan waters they operate at a slightly lower utilization rate. But I think still a very good result with the O-Class cranes upgrades in Q1 '24. Market cap is EUR1.7 billion, EBITDA EUR126 million, tripling the level from '23 very satisfying but also shows the scalability in the -- in our business that we are able to triple EBITDA while revenue is doubled. Cash flow from operating activity started at 93, and as Mikkel said, backlog is EUR2.5 billion. Three months daily average turnover is EUR6.8 million. I think what you cannot see from this slide with these financial numbers is that there's also quite an achievement on the SOX compliance side where after one year of SOX compliance, we are delivering an annual report without any material weaknesses or significant deficiencies in our internal control framework over the financial reporting. I think that is quite remarkable. For Q4, we saw revenue going significantly up. Please…

Thank you, Peter. And I think that we can definitely say that from our experience now that the annual report that is being delivered here is really a company performance with all the SOX controls and all of that. But also really good to see that we are now starting to execute on our first foundation T&I project. And obviously, as Peter said, the bulk of the benefits comes when the vessel starts to install. This is where we see that these projects really start to be meaningful for Cadeler. But good to see that we are starting the projects and that we are on time on these projects and ready to really -- make really an impact on that project as well and the following projects In terms of sustainability also to bring your attention to that, that of course bring that is a very, very important point for Cadeler. Obviously, working in renewable energy, being a pure play company in our industry, this remains really central to us. And we have in the period since we last reported, we have promoted our sustainability manager to Chief Sustainability and Performance Officer in the company and lifted her up to the senior leadership team. We are expanding the team because we do believe that there's a lot of benefits for us as a company in really being at the forefront of this curve and also working with our clients to continue to develop strategies of how to minimize our own footprint. We have also surpassed the target for female representation on our Board but also in our leadership positions, which is something that we are proud of. But I would also like to say that, that process is not a tick mark exercise. It's really because we believe it gives…

Thank you. [Operator Instructions] Our first question will come from Martin Huseby from DNB. Please go ahead and ask your question.

Thank you. First, a question on the O&M market, such demand has scale been important to fill gaps and keep vessel utilization high for '25. But could you also talk how we have seen any changes from your clients related to secure access for such vessels into 2026 and also beyond? And also what type of contract economics are you seeing on O&M work?

Yes. I think we have discussed it before with investors that we do see an increasing contract economics profile on the O&M projects. It of course can vary a lot because you can have very short term opportunities and you can have longer term opportunities as well. But we do see that it is very strong and it is very similar to the installation market at the moment because the O&M business at the moment is, I would say, arguably struggling with the same a supply demand equation that we have seen in the installation market. So we are seeing that many of the clients are discussing longer term commitments, frame agreements, but also let's say overall support structures from companies like ourselves to key O&M, but also to more feedback O&M on their platform. So we believe it is an area that needs more focus.

Good. Second question on newbuilds. So the industry had quite a high number of newbuilds ordered back in 2020 and 2021 and even into 2022. While there's been quite or there's not been too many newbuilds ordered in recent years. Can you talk a little bit to what prospects you see for the industry to add more newbuilds and also how do you see newbuilding prices and delivery times developing?

Yeah. I think that deliveries are challenging at the moment because I think that the amount of yachts that can complete a newbuild like this is certainly very limited. And some of the yachts that can do it, they are focusing elsewhere and hence not willing to bid on projects like these. And that means together with many other factors that the prices have gone up significantly. And we speculate at the moment that the prices are somewhere between 30% to 45% higher than when we ordered in 2021, the P-class vessels, which of course makes it a, let's say, a different environment to all the vessels. And at the same time, my view is that it's probably as hard as it has ever been to go into the boardroom and ask for capital to order new vessels because if one does not have an active name in the industry, it is probably hard now with the challenges that the industry have been through with lack of deliveries on projects, but also current narrative and very, very high prices and arguably longer lead times than we saw back in the days. So I think it is a challenging environment to have newbuilds in for most companies.

Thank you. I'll turn it back. Thanks.

Our next question comes from Jamie Franklin with Jefferies. Please go ahead and ask your question.

Hey, guys.

Hi, Jamie.

Hey, there. Thank you for taking my questions. So firstly, I just wanted to ask on 2025 guidance. How should we think about the moving parts in reaching the top end of that range? Is it primarily a function of timing for the remaining two newbuilds due this year? And then just kind of follow on question from that. So your first newbuild for 2025 Wind Maker was delivered in January. That was obviously on the early side of the targeted 1Q '25 delivery. And now you've said that your second newbuild this year Wind Pace is scheduled for delivery imminently versus a previous target for 2Q '25 delivery. So just trying to get a sense of what your base case is for delivering the next two vessels. Should we assume it is the midpoint of each quarter that you have outlined? Thank you.

I think we will just keep the delivery to the quarter for now. But of course, we indicate that we believe that the Ally is somewhat ahead of schedule in Cosco and that we believe that Mover will deliver as we have discussed in the past. I think that there are of course, still some moving parts in the overall year, but a lot of let's say, the utilization capacity has been locked down already. So on Zaratan, as we discussed, we have locked down a very significant portion on O&M, but there is room for more if that is available out there in the market. And we do believe that there is opportunity out in the market for that. And as I also discussed during the presentation, we are at the moment also in a situation where we are discussing certain options with clients in terms of delivering additional scope on projects and that can also impact the year. So we believe that we had a good point with the guidance. We are at a place in time and where we're at the junction in the journey, where we want to be, and also where we expected to be. As Peter explained in his presentation with these foundation T&I contracts, a lot of the services that are being delivered, we can say that the difference between the income and the cost curve is lesser. And then when we start installing the foundations, then it opens up those two curves because at the end of the day, that is really where we are starting to see the meaningful impact of the foundation C&I project when we start to put the foundations in the water. So it is a function of, let's say, time and also solid execution and then continuing to keep a very strong focus on the front end of the business making sure that our clients know that we are here, we are able to support them if they need us with anything. And I think the team overall, the whole team has done incredibly well in ensuring very strong utilization, strong execution, strong reporting, strong everything, so very, very, very pleased with how the team has gone through '24 and how we have already entered into '25 as well.

That's great. That's very helpful. And then second question just on a European market. obviously you've talked about the strength and that being the primary driver of growth for Cadeler. So can you talk maybe about the specific countries within Europe that are the greatest near term opportunity And I know you announced a contract in Poland back in January that was a particularly attractive contract and you've built backlog quite considerably there over the last few years. Maybe if you can touch on that as well. Thank you.

Yeah. I think that we see basically that it's of course, the North Sea region and the Baltic Sea region that is growing very fast. UK remains the leading country in wider Europe to say without offending anybody, I hope that that is the leading. But we do see around the Baltic sea a lot of activity, but also Germany and Denmark. We had a missed auction in Denmark. I would say for most industry people it was not the biggest surprise in the world. And I'm sure that, we will be seeing something pretty different in the upcoming Danish auction where we have seen the Danish government moving more to like a CFD style auction type. And I think that this is just reinforcing the picture that Europe remains very focused on delivering this and very strong growth demand continuously.

Okay. That's great. Thanks, guys. I'll hand it over.

Our next question comes from Benjamin Nolan with Stifel. If you'd like to ask your question.

Great. Hopefully, you guys can hear me. I wanted to ask, Peter, you'd mentioned you had -- you guys were taking people and adding them to some of your existing vessels in preparation for the delivery of the newbuilds. Am curious, you're taking delivery and the industry is delivering quite a bit of equipment very quickly. Can you maybe talk to the availability of skilled labor and is that at all a challenge in being able to execute for the industry for you guys specifically?

It has not been a problem for us up to now. We still have unsolicited applicants coming in from the industry and oil offshore. So in general speaking, it has not been a problem and we do not see an issue. Maybe you can add, Mikkel.

Yeah. I'm happy to do that. I think that we are benefiting from many different factors at the moment where we see, let's say, skilled people coming in, but maybe skilled people from different areas of offshore where we believe that the right thing to do is also to give them the best possible preparation by having them on some of our existing vessels before we send them potentially to a new builder before they take over any existing vessels and we send some of the experienced people from that vessel to a newbuild. So it is really one of the bigger questions we get from investors. Many times it's what keeps you awake at night. And we often talk about safety by then. And in order to operate these very sophisticated vessels, training is important. And that's why we're doing it. We are doing it because we want to ensure that we are working with one safety standard with one culture on board and overall best possible preparation for what we are executing for our clients. So that's why we are doing it. So you can basically say that the reason behind it is really just a reason of caution and being prepared.

Okay. Thank you. And then my next question I wanted to mention, I appreciate the adjusted utilization measure that you put in there. As you're thinking about the guidance for 2025, you may be talk through what sort of is being considered or modeled in that adjusted utilization into your numbers?

Yeah. We are not giving guidance on the utilization for '25. So -- but we can say that the reason that we are doing it is because we have of course discussed in the past that where we want to see the fleet in terms of utilization. But when you have two vessels, for example, out for crane upgrades, you can't operate them and hence it's not relevant to talk about that time. And that's why we decided that this time it's relevant to have an adjusted number where we can also show you guys kind of like this is just time that it's not available to us. And if we discount that, then actually the utilization was pretty good. We also made an active decision that we discussed with you guys and with our investors last year, where we said we will really do everything we can to prepare Scylla to go to the U.S. because in case we need to do any maintenance on Scylla in the U.S. it will be much more complicated and much more expensive. So again, under the same umbrella of being cautious, you can say we decided to do an extra effort on Scylla before we sent her to the U.S., and that reduced the number of days we had available. Had we not done that, we could maybe have squeezed in an O&M project prior to her leaving to the U.S. but we decided no, we're not going to do that. And the same umbrella there, you can say that on Wind Ally that we are delivering from Cosco. We are not planning any utilization on Ally before we start the rest of the project because we just want to make sure that we start that project as well equipped as early as with as much buffer as possible because that is a very important project to us that we have also discussed with our investors and clients and suppliers a lot. So we are currently not planning anything on Wind Ally prior to going on the Hornsea 3 project.

Okay. That's helpful. And lastly, if I could just you're speaking about the Scylla and the -- and now you'll have two assets in the U.S. Mikkel, you said that there's a real sense of acceleration in the U.S. trying to get things done quickly. Do you anticipate those assets, or at least one of those assets, remaining in the U.S. for some time in order to meet those customer needs?

That is very possible. And we know that the Pace has to come back again because it has another commitment. So there's a dock dead pace on that and Pace will return back to Europe to do that commitment for our clients. No doubt there. But of course, could this continue in the U.S. for some time? Yes, that is very likely. And we are monitoring the opportunity. I think we can also say we are harvesting the opportunity because we came out from being probably the most cautious on the U.S. market to now being the ones that are operating a lot over there. And I think that that is also sometimes how the world develops. If your client has a confidence in you being able to deliver what they need in that market, then I think that you can be the chosen one. And I think that we have at least put ourselves in a situation where we're working very, very efficiently together with our clients to try to deliver what they have in the pipeline over there as best possible. But there is a lot of complexities in the market in terms of operations, and it also means that it requires a lot of effort to ensure efficient installation in the U.S. market. But we are -- if we want to support our clients there as long as we are able to protect the company in the right way in terms of terms and conditions, and that the projects on a standalone basis is good enough to meet our criteria.

Excellent. I appreciate you taking my questions. Thank you.

Of course, Ben.

Thank you, Ben.

Our next question is from Pet Billing from SEB. If you'd like to go ahead and ask your question.

Yes. Hello. Can you hear me?

Sounds good.

Great. I have two questions. The first one is tax related. You mentioned, Peter, that most of your current business is covered by tonnage taxation in the UK and Denmark. Once you move into becoming sort of more of a project driven business with T&I services for the foundations, should we think any differently about taxation for your business going forward?

No. Then that is also covered by both tonnage tax regimes, so no.

Okay. Great. And the second question, again, also related to the O&M market. What do you see in terms of how developers think about utilization or using more high spec vessels compared to lower spec vessels? Also for lower sized turbines, do you see any sort of mechanic where even for smaller turbines that they prefer to use more highly spec vessels?

I think what we can say is that the higher spec vessels has the benefit that they can work across different platforms and that gives an efficiency increase for some of the clients in the industry that hence has that as a priority. But I think that it's not necessarily always a choice because we tend to get focused on the turbine type and say, can this vessel do this turbine type? Yeah, obviously it can because it installed this turbine type. But it might be that the water depth is too high for that vessel, for example. So we have seen O&M jobs in the industry that has been waiting for a long time for execution due to the lack of availability of vessels with, for example, long enough legs. And that is why I argue that a higher spec vessel is always a more attractive option for the client if it is available. The challenge has really been that they have not been available. And that is also why we are arguing that the O&M space is a space that could do with more focus and more commitment, both from clients and from contractors like ourselves. Because at the end of the day, there is a rather big, let's say, challenge to solve and in overall keeping all the turbines globally spinning. And that is something that we need to work together to solve that equation. And what we are saying is really that we are committed to play our part in that problem solving together with our partners from the O&M space, OEM space, and also in the developer space. And we do see that sometimes they take a different approach to that market.

Understood. Thank you. That's all for me.

Thank you.

Our next question is from Asne Holsen from ABG Sundal Collier. If you'd like to ask your question.

Hi. Can you hear me?

Yes. Loud and clear.

Great. Thanks for taking my question. I was wondering about the wording on your dividend comments. You say that you do not expect to make any dividend payments in the medium term. How would you define a medium term? Can you say anything?

We define it like the second a class vessel being delivered in '26. And that is because the whole confers initially we have, there's a covenant around not paying out dividends before that vessel is delivered, but it doesn't cover the third a class vessel is being delivered in '27. So that is what we mean by that in midterm. Yeah.

I think what we can say in addition to that is that the discussion around the whole topic is something that has started now together with the Board and that we think that is something that will continue and when we are ready, we will communicate clearly to the market. But it is obvious that we will be in a position at some point in time where we have the ability, for example, to pay a dividend.

Definitely. Yeah. I think I'll give off the microphone. Thank you.

Thank you.

Due to time constraints, this will be our final question. Our next question will be from Roald Hartvigsen from Clarksons. If you'd like to go and ask your question.

Thanks. Hey, guys. Congratulations on another strong quarter. We have seen some consolidation in the space over the last months with the key one probably being the announced Saipem and Subsea7 merger. And obviously, offshore wind is not the only market for those players today. But do you believe that merger will have any meaningful impact on market dynamics? And how do you see prospects for further consolidation in the space ahead? Thanks.

I don't think it will drive anything. I think it's probably good for these two companies. I think that there's a lot of synergies between these two companies to do a consolidation and I -- we congratulate them on the efforts. I -- we have said it before that there is still some degree of fragmentation in the industry. The problem is also in the industry there is a lot of assets that arguably will not be installing for very long and hence it depends a little bit how you want to consolidate and why you want to consolidate. But I think that we are, from our side at least, very, very pleased that we were moving on the opportunity that we saw back in 2023 and successfully concluded that merger with Eneti. We believe that we have created a company that didn't have a lot of overlaps at that time. And that is the additional challenge to most of the other companies out there that there's probably too many overlaps to make it super reasonable to see how a merger would happen. So it depends a little bit on why one company wants to merger and how. Yeah.

Perfect. Thanks. I'll leave it there.

Thank you.

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

Thank you. Just wanted to say thank you to everybody for listening in and spending your time here in the morning or afternoon or evening with us. Another year is now concluded, and a year is already well underway. And we are really looking forward to take on this challenge and to deliver. And, that really just brings me to really thanking the team, our investors, our clients, and partners for all the support during '24 and all what we have seen in '25. And we are super ready to take on this year and to continue to deliver on our promise. So thank you.