Q1 2025 Ørsted A/S Earnings Call

Operator: and thank you for joining.

<unk> the presentation.

Rasmus Errboe: During the first quarter of the year, we have focused on execution of the business plan that we presented in February. As part of the updated plan, we established four key business priorities for Orsted, which will be the core focus as we execute on Orsted. First, it is the strengthening of our capital structure. Secondly, it is the delivery of more than 8 gigawatts offshore construction portfolio. And thirdly, it is a focused and disciplined approach towards capsule allocation with value over volume. And finally, we will ensure that Orsted is even more competitive in the future. We will continue to focus on progressing all four priorities to deliver on our plan.

In the quarter of the year, we have focused on execution of the business plan that we presented in February . As part of the updated plan, we established four key business priorities for us today, which will be the core focus as we execute on our strategy. We are now at the end of the year. We are now at the end of the year.

First, it is the strengthening of our Cabza Stalk Show.

Secondly, it is the delivery of more than eight gigawatts offshore construction portfolio and thirdly it is a focused and disciplined approach towards capital location with value over volume and finally we will ensure that Orsted is even more competitive in the future.

We will continue to focus on progressing all four parties to deliver on our play.

Rasmus Errboe: With that said, the offshore wind industry continues to be challenged in the short term with headwinds relating to supply chain, regulatory uncertainty, and macroeconomic development. We follow the developments around further potential tariffs and other regulatory changes closely. Despite the significant challenges across certain geographies, the long-term fundamentals for offshore wind are strong, given the increasing global electricity demand, a strengthened focus on energy security and affordability through renewables, and improvements in framework conditions in several major markets.

With that said, the offshore wind industry continues to be challenged in the short term with headwinds relating to supply chain, regulatory uncertainty and macroeconomic developments.

We follow the developments around further potential tariffs and other regulatory changes closely.

Despite the significant challenges across certain geographies, the long-term fundamentals for all your wind are strong, given the increasing global electricity demand, a strengthened focus on energy security and affordability through renewables and improvements in framework conditions in several major markets.

Rasmus Errboe: With that, let me walk you through our progress on each of the four strategic priorities. During the first quarter, we have seen solid operational results, with a reported group EBITDA increasing 18% compared to last year. In addition, we continue to deliver on our Farm Down program as we close two divestments since the start of the year.

With that, let me walk you through our progress on each of the four strategic parties.

During the first quarter, we have seen solid operational results, where the reported group will be there, increasing 18% compared to last year.

In addition, we continue to deliver on our farm-down program as we close two government investments since the start of the year.

Rasmus Errboe: In the U.S., we completed the 50% farm down of two of our solar farms. And just last week, we completed a divestment of a part of our West of Dutton Sands offshore wind farm in the U.K. These transactions deliver total proceeds of around $7 billion and are supportive of our capital. We continue our relentless focus on the delivery of our offshore construction portfolio, and during the first quarter, we continue to deliver on this with successful commissioning of Code Wind 3. This also marks that we now have installed more than 10 gigawatts of offshore wind. On the back of the short-term challenged offshore wind industry and the adverse developments experienced in recent years, we will employ an even more focused approach to our capital allocation, and we do see that we have ample opportunities in our core offshore wind markets to leverage our distinct capabilities.

In the U.S., we completed the 50% farm down of two of our solar farms, and just last week we completed a divestment of a part of our West of Don Sands of your wind farm in the U.K.

These transactions deliver total proceeds of around 7 billion and are supportive of our capital structure.

We continue our relentless focus on the delivery of our all-for-all construction portfolio, and during the first quarter we continue to deliver on this with successful commissioning of Goodwin 3.

This also marks that we now have installed more than 10 gigawatts of offshore wind capacity.

On the back of the short-term challenge of your wind industry and the adverse development experience in recent years, we will employ an even more focused approach to our capital allocation. And we do see that we have ample opportunities in our core of your wind markets to leverage our distinct capabilities.

Rasmus Errboe: With the opportunity set that we have, we will only select and progress the most attractive investment opportunities. A key part of this is a very clear prioritization of value over volume for our shareholders.

With the opportunity set that we have, we will only select and progress the most attractive investment opportunities.

A key part of this is a very clear prioritization of value over volume for our shareholders.

Rasmus Errboe: This disciplined approach to capital allocation has led us to the decision to discontinue the development of our 2.4 gigawatt Horn C4 project in the UK in its current form. Since the award, the business case has seen numerous adverse developments, especially cost increases across the supply chain and higher interest rates. In combination, these developments have deteriorated the potential value creation and increased the execution rate. Throughout the development phase, we have been very diligent in our approach to capital commitments and followed our updated Stage Gates model. We are well below our internal commitment thresholds and we are taking this decision well ahead of the planned FID.

This disciplined approach to capital allocation has led us to the decision to discontinue the development of our 2.4 gigawatt-honsie 4 project in the UK in its current form.

Since the award, the business case has seen numerous adverse developments, especially cost increases across the supply chain and higher interest rates.

In combination, these developments have deteriorated the potential value creation and increased the execution risk.

Throughout the development phase, we have been very diligent in our approach to capital commitments and followed our updated state skates model.

We are well below our internal commitment thresholds and we are taking this decision well ahead of the planned FID.

Rasmus Errboe: I would like to emphasize that Orsted continues to view the long-term fundamentals as strong and see attractive perspectives for offshore wind in the UK. We will evaluate options for future development of the Horn C4 project as we continue to hold the CPAT rights, the development content order, as well as a grid connection agreement. The decision to discontinue the development of Horn C4 in its current form will not impact our mid- and long-term strategic ambitions and financial goals.

I would like to emphasize that Oster continues to view the long-term fundamentals as strong and see attractive perspectives for all of your wind in the UK.

We will evaluate options for a future development of the Hone C4 project as we continue to hold the CPAT rights, the development constant order, as well as a great connection agreement.

The decision to discontinue the development of ONC4 in its current form will not impact our mid and long-term strategic ambitions and financial targets.

Rasmus Errboe: I am excited to have welcomed two new members to our group, executives. Part of our journey to become increasingly competitive in the future will require our business to be more efficient and focused going forward. With the recent appointments of Amanda Dash and Gottson Yoku, the full offshore wind value chain from development to construction to generation is now represented in our Group Executive Team. The changes to the group executive team reflect our sharpened focus on our core business, project execution, and on improving our competitiveness. And I'm very pleased that we have been able to attract two such strong candidates to our group.

I am excited to have welcomed two new members to our group, Executive Team.

Part of our journey to become increasingly competitive in the future will require our business to be more efficient and focus going forward.

With the recent appointments of Amanda Daz and Gossan Yoko, the full offshore wind value chain from development to construction to generation is now represented in our Group Executive Team.

The changes to the Group Executive Team reflect our sharpened focus on our core business, project execution and on improving our competitiveness. And I'm very pleased that we have been able to attract two such strong candidates to our team.

Rasmus Errboe: Let's turn to slide five, where I will walk through some of the operational highlights for the group. First, I am pleased with the operational earnings for the first quarter of the year, where our EBITDA, excluding new partnerships and cancellation fees, amounts to $8.6 billion. The 14% increase compared to last year puts us on track towards delivering our full year guidance of 25 to 28 billion of EBIT. One of the supporting elements of our solid operational performance was the availability within our offshore. compared to same quarter last year, the availability increased with nine percentage points and is as such a significant contributing element to the increase in our earnings, despite the lower wind speeds offshore in Europe that we have seen.

Let's turn to slide five, where I will walk through some of the operational highlights for the quarter.

First, I am pleased with the operational earnings for the first quarter of the year, where our EBITDA, excluding new partnerships and cancellation fees, amounts to $8.6 billion.

The 14% increase compared to last year puts us on track towards delivering our full year guidance of 25 to 28 billion of EBITDA.

One of the supporting elements of our solid operation performance was the availability within our offshore business.

Compared to same quarter last year, the availability increased with 9% points and is a sort of a significant contributing element to the increase in our earnings despite the lower wind speeds of shore in Europe that we have seen.

Rasmus Errboe: Operating our 10 gigawatt offshore wind fleet with a sharp focus on financial performance will remain a key priority for us. During the quarter, we also made progress on the renewable share of our generation. For several years, we have had a target that renewables should consist of 99% of our generation by 2025. And during the first quarter of the year, this was, in fact, the case. The increased share of renewables was driven by the closing of our last coal-fueled CHB plant in the second half of 2024, which marked another important milestone in our decarbonisation.

Operating our ten gigawatt of your wind fleet with a sharp focus on financial performance will remain a key priority for us.

During the quarter we also made progress on the renewables share of our generation.

For several years, we have had a target that renewable should consist of 99% of our generation by 25 and during the first quarter of the year, this was in fact the case.

The increased share of renewables was driven by the closing of our last coal-fueled CHB plant in the second half of 2024, which marked another important milestone in our de-giverization journey.

Rasmus Errboe: Lastly, our continued and relentless focus on safety has continued and the total recordable injury rate for the first quarter of 2025 has been reduced from 2.9 last year compared to 1.9 this year. However, this positive development was overshadowed by the two tragic fatalities among our contractor employees at the Plum Creek Onshore Wind Farm earlier this year. Our deepest condolences go to their families and friends. We are focusing on the current investigation that the relevant authorities are conducting, and we are in close coordination with GE, Wincombe, and the authorities.

Lastly, our continued and relentless focus on safety have continued and the total recordable injury rate for the first quarter of 25 has been reduced from 2.9 last year compared to 1.9 this year.

However, this process of development was overshadowed by the two tragic fatalities among our contractor employees at the Plum Creek on Sherwin Farm earlier this year.

Our deepest condolences go to their families and friends. We are focusing on the current investigation that the relevant authorities are conducting and we are on close coordination with GE, Wincom and the authorities.

Rasmus Errboe: Let's turn to slide 6 and an overview of our contract. As mentioned, as part of our release in February, we will, going forward, provide more insights into the execution of our construction portfolio. To keep this the most relevant for you, we will do so for the projects that are most advanced and active in their construction activities.

Let's turn to slide six and an overview of our construction projects.

As mentioned, as part of our religion February , we will go forward provide more insights into the execution of our construction portfolio.

To keep this the most relevant for you, we will do so for the projects that are most advanced and active in their construction activities.

Rasmus Errboe: Before I go into the detailed updates, let me put a few remarks to the remainder of our construction portfolio. During the first quarter, we successfully commissioned the GoToWin3 project. This achievement increases our operational capacity and also marks that we now have installed more than 10 gigawatts of offshore wind capacity. For BROKKOM RIPRON 3, we have installed all foundations and turbines and are awaiting the grid connection from the German transmission system operator. First Power is expected towards the end of this year, and the project is expected to be commissioned in the beginning of 2020. The delay of the connection will be compensated according to market regulations.

Before I go into the detailed updates, let me put a few remarks to the remainder of our construction portfolio.

During the first quarter, we successfully commissioned the Gordavan 3 project. This achievement increases our operational capacity, and also marks that we now have installed more than 10 gigawatts of all your wind capacity.

For Borkham Rift on 3, we have installed all foundations and turbines and are waiting the good connection from the German transmission system operator.

First power is expected towards the end of this year, and the project is expected to be commissioned in the beginning of 2026.

The delay of the connection will be compensates according to market regulation.

Rasmus Errboe: Until the grid connection is ready and the project can be commissioned, we are ensuring that we maintain the integrity of the assets as part of our service and inspection.

Until the grid connection is ready and the project can be commissioned, we are ensuring that we maintain the integrity of the assets as part of our service and inspection campaigns.

Rasmus Errboe: For the Hornsea 3 project in the UK, the construction continues to progress as planned. The onshore works are on track and the offshore scope started in Q1 2025, focusing on pre-construction activities such as removal of unexploded ordnance. We are working closely with suppliers to manage the ramp-up and delivery of components to be installed offshore during 2026, with fabrication and monopiles being a key focus. The construction work for the co-located battery storage solution is planned to start during the second quarter of the year.

Bodhorn, C3 Project in the UK, the construction continues to progress as planned.

The onshore works are on track and the offshore scope started in Q1 2025, focusing on pre-constructing activities such as removal of unexploded ordinances. [inaudible]

We are working closely with suppliers to manage the ramp up and delivery of components to be installed offshore during 26, with fabrication and monopies being a key focus.

The construction work for the co-located battery storage solution is planned to start during the second quarter of this year.

Rasmus Errboe: Following the final investment decision on our Baltica 2 project in January, we are progressing the first phases of the construction. At the current stage, this involves the preparation of the onshore substation as well as the manufacturing activities related to the offshore substation. We are closely monitoring the fabrication progress of the key components for the project as well as the progress on the installation harbour in Poland, which will be used for the load-out of the turbine. We will continue progressing the fabrication, cable route preparation and also commence the offshore boulder removal campaign in the coming period.

Following the final investment decision on our Baltic A2 project in January , we are progressing the first phases of the construction work.

At the current stage, this involves the preparation of the onshore substation as well as the manufacturing activities related to the offshore substation.

We are closely monitoring the fabrication progress of the key components for the project as well as the progress on the installation harbour in Poland, which will be used for the loadout of the turbines.

We will continue progressing the fabrication, cable route preparation, and also commence the off-shore

Rasmus Errboe: Lastly, the construction of our onshore projects across Europe and the US continues to progress according to plan.

Lastly, the construction of our onshore projects across Europe and the U.S. continues to progress according to plan.

Rasmus Errboe: Turning to slide 7 and a more detailed update on our Greater Tiananmen 2B and 4 project in Taiwan. The degree of completion for the project is around 35%. The degree of completion is one of our metrics measuring the progress of a construction project's installation schedule and reflects a combination of scheduled progress and financial success. At this point, all the foundations and export cables have been fabricated. The vast majority of the array cables have been fabricated as well and the manufacturing of the remaining turbines are progressing according to plan. Remaining array cables and majority of turbine components are being fabricated in Europe, and once complete, they will be transported to Taiwan for pre-assembly and installation.

Turning to Site 7, and a more detailed update on our Greater Jianguo 2B and 4 project in Taiwan.

The degree of completion for the project is around 35% [inaudible]

The degree of completion is one of our metrics measuring the progress of a construction project's installation schedule and reflects a combination of scheduled progress and financial spend.

At this point, all the foundations and export cables have been fabricated. The vast majority of the array cables have been fabricated as well, and the manufacturing of the remaining turbines are progressing according to plan.

Remaining array cables and majority of turbine components are being fabricated in Europe , and once complete, they will be transported to Taiwan for pre-assembly and installation.

Rasmus Errboe: It is the first project in our portfolio where we are installing the 14 megawatt wind turbines from Siemens and the installation is going really well.

It is the first project in our portfolio where we are installing the 14-megawatt wind turbines from Siemens and the installation is going really well.

Rasmus Errboe: During the first quarter, we have progressed the fabrication of key components and also achieved important milestones as we have started offshore construction activities with the installation of both foundations and turbines. Currently, we have installed around 30% of the foundations and the first few turbos. The vessels needed for the installation of array cables have also arrived in Taiwan and are ready to begin the installation in the coming days.

During the first quarter, we have progressed the fabrication of key components and also achieved important milestones as we have started offshore construction activities with the installation of both foundations and turbines.

Currently, we have installed around 30% of the foundations and the first future points.

The vessels needed for the installation of the array cables have also arrived in Taiwan and are ready to begin the installation in the coming periods.

Rasmus Errboe: From a risk perspective, the project is focused on managing any potential schedule implications caused by the weather conditions. We have taken into consideration an expeditiously longer installation period during the winter season due to challenging weather conditions throughout this year. Likewise, the project continues the monitoring of the sea routes needed for transportation of the remaining equipment. In the coming period, the project will continue to progress the installation of foundations, turbines, export and arrangement.

From a risk perspective, the project is focused on managing any potential schedule implications caused by the weather conditions.

We have taken into consideration and expedited the longer installation period during the winter season due to dispensing weather conditions throughout the season.

Likewise, the project continues the monitoring of the sea routes needed for transportation of the remaining equipment.

In the coming period, the project will continue to progress the installation of foundations, turbines, export and array cables.

Rasmus Errboe: First Power is expected over the summer and we expect to commission the project towards the very end of this year.

First power is expected over the summer and we expect to commission the project towards the variant of this year.

Rasmus Errboe: Now turning to slide 8 and an update on our North-East program starting with revolution. The degree of completion for the project is around 75%, and we have continued making good progress on both the construction of the onshore substation in Davisville, Rhode Island, as well as the installation of monopiles and turbines offshore. We currently have installed nearly half of the 65 turbines and around 80% of the monopiles, as well as completed all installation of the export.

Now turning to Slide 8 and an update on our North East program starting with Revolution Wind.

The degree of completion for the project is around 75%. And we have continued making good progress on both the construction of the onshore substation in Daviesville, Rhode Island, as well as the relation of Monopal's and Turbines offshore.

We currently have installed nearly half of the 65 turbines and around 80% of the monopiles, as well as completed all installation of the export cable.

Rasmus Errboe: The project's focus remains on a number of items that are critical to delivering the project on the updated share. For the onshore substation, we are implementing the updated solution, and this work is reflected in the project schedule. We took over site management at the beginning of this year, and we have subsequently accelerated works, which means that all buildings have now been erected and made watertight. This was a key deliverable for the de-risking of the installation schedule for the onshore substation, which is on the critical path.

The project's focus remains on a number of items that are critical to delivering the project on the updated share tool.

We took over site management at the beginning of this year and we have subsequently accelerated works which means that all buildings have now been erected and made watertight.

This was a key deliverable for the de-resking of the installation schedule for the onshore substation, which is on the critical path for the project. [inaudible]

Rasmus Errboe: Next stage is the installation of the equipment and commissioning, where management of risk primarily are related to safety and quality. Regarding the monopile installation for one of the projects, two offshore substation work is also progressing well on the challenge that arose last year. We will conduct a new monopile installation for the offshore substation, and we expect this installation to take place later this year, utilizing the already contracted installation vessels that are undertaking work at Sunrise and Revolution. Lastly, turbine installation remains well underway and is progressing according to the updated plan. As you are aware, the turbine installation requires a different local setup in the U.S.

Next stage is the installation of the Equipment and Commissioning, where management of risk primarily are related to safety and quality.

Regarding the monopilot installation for one of the projects, two offshore stop station work is also progressing well on the challenge that arose last year.

We will conduct a new monopile installation for the offshore substation and we expect this installation to take place later this year, utilizing the already contracted installation vessels that are undertaking work at Sunrise and Revolution.

Lastly, a turbine installation remains well on the way and is progressing according to the updated plan. As you are aware, the turbine installation requires a different local setup in the U.S. until U.S. installation vessels are built and available.

Rasmus Errboe: until U.S. installation vessels are built and available. This means that the components are assembled and staked out of the New London Port and transported to site on barges where they are then installed using installation vehicles. This scope has had the highest priority focus of the team and is on track to be completed later this year.

This means that the components are assembled and staked out of the New London port and transported to site on barges where they are then installed using installation vessels.

This scope has had the highest priority focus of the team and is on track to be completed later this year.

Rasmus Errboe: The project remains on track for commissioning in the second half of 2020.

The project remains on track for commissioning in the second half of 2026.

Rasmus Errboe: Now turning to slide 9 and our sunrise wind project. Sunrise Wind is being constructed together with Revolution Wind as one program, including vessel arrangements and the broader offshore installation campaign. The degree of completion for SUNRISE is around 35%, with almost half of the turbines fabricated, the onshore converter station being near complete, and the monopile fabrication progressing according to the updated For more information visit www.sunrise.com We commenced offshore construction during the quarter, beginning with boulder relocation and two horizontal drillings for the export.

Now turning to slide 9 and our Sunrise Wind project.

Sunrise Wind is being constructed together with Revolution Wind as one program, including Vessel arrangements and the broader offshore installation campaign.

The degree of completion for sunrise is around 35% with almost half of the turbines fabricated, the onshore converter station being near complete, and the monopile fabrication progressing according

We commenced offshore construction during the quarter, beginning with Boulder relocation and two horizontal treelings for the export cable.

Rasmus Errboe: and we are implementing the learnings accumulated for Revolution Women. These learnings are reflected in the installation schedule as Sunrise Wind undertakes monopile installations followed by turbine installation later this year as part of our U.S. Northeast program.

And we are implementing the learnings accumulated for Revolution Wind.

These learnings are reflected in the installation schedule as sunrise wind undertakes monopod installations followed by turbine installations later this year as part of our U.S. Northeast program.

Rasmus Errboe: The project's focus remains on a number of items that are critical to delivering the project on the updated tier 2. The fabrication of monopiles is progressing according to plan and will continue throughout 2025. The installation of monopiles will continue over two seasons due to the time-of-year restrictions on when they can be installed. On the export cable, we have seen good progress, as one section of the cable has been manufactured now, and the remaining two are expected to be completed later this year, again according to plan. All sections of the cables have passed all critical tests, including the factory acceptance testing.

The project's focus remains on a number of items that are critical to delivering the project on the updated schedule.

The fabrication of monopiles is progressing according to plan and will continue throughout 2025.

On the export cable we have seen good progress as one section of the cable has been manufactured now and the remaining two are expected to be completed later this year, again according to plan.

All sections of the cables have passed all critical tests, including the factory acceptance testing. On the jacket structures for the HVDC, it is in final phase of quality control, before it is planned to be transported to the site over the summer.

Rasmus Errboe: On the jacket structures for the HVDC, it is in final phase of quality control, before it is planned to be transported to the site over the summer.

Rasmus Errboe: We remain on track for commissioning in the second half of 2027.

Trond Westlie: With this, let me hand over the word to you. Thank you, Rasmus, and good afternoon, everyone. First, let me start with slide 11 on the EBITDA for the quarter. As always, unless I state otherwise, the numbers I refer to will be in Danish Kroners. In first quarter, we realized an EBDA including new partnerships of $8.9 billion. which is an increase, as Rasmus mentioned, of 18% compared to last year. Excluding new partnerships, EBITDA was $8.6 billion. Let me walk you through the main earnings developments for the quarter.

Thornd: With this, let me hand over the word to you too.

Thank you all and thank you Rasmus and good afternoon everyone.

Thornd: First, let me start with slide 11 and the EBA for the quarter.

Thornd: As always, unless I state otherwise, the numbers are referred to will be in Danish Kromers.

Thank you.

Speaker Change: In first quarter, we realized in EBDA, including new partnerships of 8.9 billion.

Thornd: which is an increase, as Rasmus mentioned, of 18% compared to last year.

Excluding new part of ships, EBDA was 8.6 billion.

Speaker Change: Let me walk you through the main earnings developments for the quarter.

Trond Westlie: for our offshore businesses. with the overall earnings came in 200 million higher than last year. The earnings from sites increased driven by ramp-up generation, higher availability as well as higher prices on the green certificate and inflation indexed as a result. There was also a positive effect from our power trading activity. This was partly offset by wind speeds being significantly lower than the same period last year. Other costs, which includes unallocated overhead and fixed costs as well as expensed project development costs, increased compared to last year. but in line with our expectations. The increase is driven by a change in our cost allocation methodology and does not impact the total EBITDA expectations for offshore.

for our offshore businesses.

Speaker Change: with the overall earnings came in 200 million higher than last year.

Speaker Change: The earnings from sites increased driven by ramp up generation, higher availability as well as higher prices on the green certificate and inflation indexed assets.

Speaker Change: There was also a positive effect from our power trading activities.

Speaker Change: This was partly offset by wind speeds being significantly lower than the same period lost here.

Speaker Change: Other costs which includes an allocated overhead and fixed cost as well as expense project development costs increased compared to last year. But in line with our expectations.

Speaker Change: The increase is driven by a change in our cost allocation methodology and does not impact the totally, but the EBADA expectations for offshore.

Trond Westlie: For onshore, the EBTA excluding divestment gains increased by approximately 400 million, primarily driven by ramp-up generation from new assets that have been commissioned during 2024. Within bioenergy and other earnings from our combined heat and power plants were higher than last year, driven by higher power prices and spread. Burning gas business increased driven by higher offtake volumes and a negative impact from revaluation of gas at storages last year. which was not repeated to the same extent in first quarter this year.

Speaker Change: For unsure, the EBTA excluding divestant gains increased by approximately 400 million, primarily driven by ramp up generation, from new assets that have been commissioned during 2024.

Speaker Change: Within bio-editing and other earnings from our combined heat and power plants were higher than last year, driven by higher power prices and spreads.

Speaker Change: which was not repeated to the same extent in first quarter this year.

Trond Westlie: Finally, we recognized an EBDA gain of $300 million relating to the 50% divestment of our two U.S. onshore projects, 11 Mile and Sparta.

Speaker Change: Finally, we recognized an EBDA game of 300 million relating to the 50% divestment of our two US Unshored Projects, 11 Mile and Sparta.

Trond Westlie: Let's turn to slide 12. Our net profit totaled $4.9 billion, which was a significant increase compared to last Net profit benefited from higher EBITDA and lower tax expenses as a result of the reversal of previously expensed deferred tax liabilities. In the first quarter, we had a net impairment reversal of 300 million. The main contributor to this reversal was a decrease in long-dated U.S. interest rates which was partly offset by the impact of the imposed tariff in the U.S. In March this year, the United States imposed a 25% tariff on imports of steel, aluminum, and certain products containing steel and aluminum.

Let's turn to Slide 12.

Speaker Change: Arnett Profit, totaled 4.9 billion which was a significant increase compared to last year.

Speaker Change: Net profit benefited from higher EBDA and the lower tax expenses as a result of the reversal of previously-expensed deferred tax liability.

Speaker Change: In the first quarter we had a net impairment reversal of 300 million.

Speaker Change: The main contributor to this reversal was a decrease in long dated U.S. interest rates which was partly offset by the impact of the imposed tariff in the U.S.

Speaker Change: In March this year, the United States imposed a 25% tariff on imports of steel, aluminium and certain products containing steel and aluminium.

Trond Westlie: These new tariffs have resulted in increased cost and contingencies on our SunriseWin and RevolutionWin projects, leading to an additional impairment of $1.2 billion. In addition, an executive order was signed in April 2025. imposing a 20% tariff on imports to the United States from the European Union, of which 10% is effective, and the last 10% is postponed. We have not included the potential adverse impact from such additional 10 plus 10 percent tariffs due to the ongoing uncertainty. in a scenario of an additional 20% import tariff. We assess this would have less than half of the impact from the steel and aluminium.

Speaker Change: These new tariffs have resulted in increased cost and contingency on our sunrise wind and revolution wind projects leading to an additional impairment of 1.2 billion.

In addition, an executive order was signed in April 2025.

Speaker Change: Imposing a 20% tariff on imports to the United States from the European Union, or which 10% is effective and the last 10% is postponed.

Speaker Change: We have not included the potential adverse impact from such a digital 10 plus 10% tariffs due to the ongoing uncertainties.

Speaker Change: Jeff, we assess this would have less than half of the impact from the steel and aluminum

Trond Westlie: On the effective tax rate, that was as low as 5%. However, adjusting for the reversal of the unrecognized deferred tax assets, the underlying tax rate was 23%. Adjusted for impairments and cancellation fear on return on capital employed came in at 10.2%, which was a decrease compared to last year, driven by the higher capital employed. The reported return on capital employed came in at 4.6% and was impacted by the impairment recognized over the last 12 months. Our scope 1, 2, and 3 greenhouse gas intensity, excluding gas cells, decreased by 7% in the first quarter of this year compared to last year.

Speaker Change: On the effective tax rate, that was as low as 5%. However, adjusting for the reversal of the unrecognized tax rate for tax assets, the underlying tax rate was 23%.

Speaker Change: Adjusted for impairments and cancellation fear on return on Kaplan Floyd, Kimiann at 10.2%.

Speaker Change: which was a decrease compared to lost air, driven by the higher capital employed.

Speaker Change: The reported return on Capitol Employee came in at 4.6% and was impacted by the impairment recognized over the last 12 months.

Rasmus Errboe

Speaker Change: Arscope 1, 2, and 3 greenhouse gas intensity excluding gas cells decreased by 7% in the first quarter of this year compared to last year.

Trond Westlie: The decrease was mainly due to lower scope 1 and 2 emissions, resulting from reduced fossil base generation.

Speaker Change: The decrease was mainly due to low risk of one and two emissions resulting from reduced fossil

Trond Westlie: Partly offset by higher scope 3 emissions from capital gains.

Partly offset by Higherscope 3 emissions from Capulgates.

Trond Westlie: Moving then to slide 13 and our net interest bearing debt and credit metrics. At the end of the first quarter this year, our net debt amounted to $68.4 billion, an increase of approximately $10 billion during the quarter. Our cash flow from operating activities contributed with around $600 million.

Speaker Change: Moving then to slide 13, our net interest bearing debt and credit metrics.

Speaker Change: At the end of the first quarter this year are net that amounted to 68.4 billion, an increase of approximately 10 billion during the quarter.

Speaker Change: or Kasslow from Operating Utilities, contributed with around 600 million.

Trond Westlie: Our operational earnings were partly offset by costs related to construction of transmission assets in the UK, as well as seasonality in other working capital items. Compared to last year, we did not receive any material milestone payments related to our construction projects, nor any tax equity contributions. For the quarter, our gross investments totaled $13.8 billion, driven by our investments into the construction of our renewable project portfolio. The cash flow from divestments of three billion primarily related to the farm down of the 50% stake in our 11 Mile and Sparta onshore project.

Speaker Change: Arophrasical earnings were partly offset by costs related to construction of transmission assets in the UK, as well as accessibility in other working capital items.

Speaker Change: Compared to lots, last year we did not receive any material milestone payments related to our construction projects nor any tax equity contributions.

Speaker Change: For the quarter, our gross investments totaled 13.8 billion driven by our investments into the construction of our renewable project portfolio.

Speaker Change: The cash flow from divestants of 3 billion, primarily related to the far end down of the 50% stake in our 11 mile and spot on short projects.

Trond Westlie: The divestment of a stake in West of Dunsands, which was announced last week, is not included here as it closed after the end of the first quarter and will accordingly be reflected in our accounts for the second quarter. Our key credit metrics, FFO to Adjusted Net Debt, stood approximately at 14% at the end of the first quarter. which is a slight increase compared to the end of last year, primarily driven by higher funds from operations in the 12-month rolling period.

Speaker Change: The development of a stake in the West of Dunsands, which was announced last week, is not included here as it closed after the end of the first quarter, and will accordingly be reflected in our accounts for the second quarter.

Speaker Change: R. Cree, R. Key Credit Matrix, F.F.O. to adjust the net depth, stood approximately at 14% at the end of the first quarter.

Speaker Change: which is slightly, which is a slight increase compared to the end of last year from Melody Driven by higher fronts from operation.

Speaker Change: In the 12 month rolling period. Throughout 25, the cancellation of the payments incurred over the last 12 months will be rolling off the metric and thus benefit the FFO number.

Trond Westlie: Throughout 2025, the cancellation fee payments incurred over the last 12 months will be rolling off the metric and thus benefit the FFO number.

Trond Westlie: Finally, let's turn to slide 14 and our Outlook for 2025. With a solid operational performance for the first quarter, we reiterate our full year EBTA guidance, excluding new partnerships and cancellations fees of $25 to $28 billion. As the offshore wind speeds have been below the norm, we are expecting our offshore sites EBTA to come in lower than anticipated in the beginning of the year. However, we still expect our offshore segment EBTA to be higher than last year. Adjusting the future for our Hornsea 4 project will have financial implications which will be reflected in our accounts in the second quarter of this year.

Speaker Change: Finally, let's turn to slide 14 and our old look 425 [inaudible]

Speaker Change: With a solid operational performance for the first quarter, we reiterate our Fulier E.B.D.A. guidance, excluding new partnerships and consolation fees of 25 to 28 million.

Speaker Change: As the offshore wind speeds have been below the norm, we are expecting our offshore sites EBTA to come in lower than anticipated in the beginning of the year. However, we still expect our offshore segment EBTA to be higher than last year.

Speaker Change: Adjusting the future for our Hornsey Ford project will have financial implications which will be reflected in our accounts for in the second quarter of this year.

Trond Westlie: For Hornsea 4, it was our plan to use the export cables from Ocean Wind 1. So we will now evaluate the value of these cables going forward. The book value of the export cables is approximately 1.5 billion. In addition, we have so far spent approximately half a billion on the offshore transmission assets and have an estimated additional spend of around one to one and a half billion related to a combination of expected contract cancellation costs and committed project spend. In total, this can potentially lead to a negative impact on our EBTA of approximately three to three and a half billion in next quarter or this quarter Q2 in 2024.

Speaker Change: 424, it was our plan to use the export cables from Ocean Wind 1.

Speaker Change: So we will now evaluate the value of these cables going forward [inaudible]

Speaker Change: The book value of the export cables is approximately 1.5 billion.

Speaker Change: In addition, we have so far spent approximately half a billion on the offshore transmission assets.

Speaker Change: In total, this can potentially lead to a negative impact on our EPA over approximately three to three and a half billion in next quarter or this quarter, Q2 in 2025.

Trond Westlie: The capitalised construction cost for Hornsea 4 is around $700 million and will be written off below EBTA. in our accounts for the second quarter. As an additional information, as a result of closing out the outstanding ocean wind cancellation contracts, we will also review the remaining provision level during the second quarter. On CapEx, we also maintain our gross investment guidance for 2025 of $50 to $54 billion.

Speaker Change: The capitalized construction cost for a Hornsey 4 is around 700 million and will be written off below EBDA in our accounts for the second quarter.

Speaker Change: As net digital information, as a result of closing out the outstanding ocean-winning cancellation code tracks, we will also review the remaining provision level during the second quarter.

Speaker Change: On topics, we also maintain our gross investment guidance for 2020-25 of 50 to 54 billion.

Operator: And with that, we will now open for questions. Operator, please. Thank you very much.

Speaker Change: And with that, we will now open for question. Operator, please.

Operator: Anyone who wishes to ask a question may press star and one of the telephone.

Speaker Change: Thank you very much. And who is this last question, my press star and one of the telephone. If you wish to remove yourself from the question, give me a press star and two.

Operator: If you wish to remove yourself from the question queue, you may press star and Our first question comes from Peter. Thank you.

Speaker Change: Our first question comes from Peter, which is a Bisztyga with Bank of America. Please go ahead.

Peter Bisztyga: Bisztyga with Bank of America, please go ahead. Yeah, good afternoon. Thanks for taking my questions, Peter Bisztyga.

Yeah, good afternoon, thanks for taking my questions, Peter Bisztyga.

Peter Bisztyga: I've got a question on the stock work order for Equinor's Empire Wind project, and I'm just wondering what reasons might exist or are you aware of as to why your Sunrise Wind or Revolution Wind project might be able to avoid similar stock work orders in the coming months? Thank you. Thank you very much, Peter.

Speaker Change: I put a question on the stock work order for Echinor's Empire wins project. I'm just wondering what reasons might exist, or are you aware of this, why you'll fund rise when the revolution means project might be able to avoid?

Thomas Stockdog, Stockdog Aldo in the coming months. Thank you.

Speaker Change: Thank you very much Peter. So I think first of all I'm not going to speculate about potential regulatory changes in the US that is outside of our control.

Rasmus Errboe: So I think, first of all, I'm not, I'm not gonna, gonna speculate about potential regulatory changes in the US that is, that is outside of our control. Our two projects have completed multi-year reviews and have also followed all state and federal procedures. And we are constructing them under one program in the Northeast, which is in a very active construction phase right now, with a degree of completion of around 75% for revolution wind and around 35% for sunrise wind, as I mentioned before. And you can say specifically for Revolution Wind, you know, we have installed almost half of the turbines, 80% of the monopiles, installed one of Motorpilot for the project's offshore substation, fabricated oil components, and so on.

Speaker Change: Our two projects have completed multi-year reviews and have also followed all state and federal procedures.

Speaker Change: And we are constructing them on the one program in the northeast, which is in a very active construction phase right now with their...

Speaker Change: with a degree of completion of around 75% for revolution wind and around 35% for sunrise wind as I mentioned before.

Speaker Change: and you can say specifically for revolution wind, you know, we have installed almost half of the turbines, 80% of the monopiles installed, one of the monopile for the projects, offshore substation, fabricated all components and so on.

Rasmus Errboe: And for Sunrise Wind, we have sort of nearly completed the onshore converter station and also the array cables. And then we have also fabricated more than half of the nacelles for the project and also started offshore construction activities during this quarter. And also, if I might add, both projects ensure that hundreds of millions of U.S. dollars are invested into the domestic supply chain, supporting shipbuilding and port investments, and are also creating jobs across more than 40 states.

Speaker Change: and for Sunrise Wind we have sort of nearly completed the onshore converter station and also the array cables.

Speaker Change: and then we have also fabricated more than half of the necessities for the project and also started off your construction activities during this quarter.

Speaker Change: And also if I might add both projects ensure that hundreds of millions of US dollars are invested into the domestic supply chain supporting shipbuilding and port investments, and are also creating jobs across more than 40 states.

Rasmus Errboe: So that's our perspective on our own projects in the U.S.

Speaker Change: So that's our perspective on our own projects in the US.

Rasmus Errboe: Okay, so have you had any interaction at all with the Department of the Interior or OM about the potential risk? As is always the case in the markets where we operate with our projects and also with projects under construction like these, we of course have an ongoing dialogue with the regulator. And that is also the case as of now in the US where we have an ongoing constructive dialogue with BOEM on the progress of the project.

Speaker Change: Okay, so have you had any interactions with all the departments of Imperial Bowen about potential risk?

Speaker Change: As is always the case in the markets where we operate with our projects and also with projects

Speaker Change: Mark, like these, we of course have an ongoing dialogue with the regulator, and that is also the case as of now in the US where we have an ongoing constructive dialogue with Bowen on the progress of the projects.

Peter Bisztyga, Peter Bisztyga,

Okay. Thank you.

Alberto Gandolfi: Question comes from Alberto Gandolfi with Goldman Sachs, please go ahead. Hi, good afternoon. It's Alberto Gandolfi, Goldman Sachs, and thank you for taking my question.

Speaker Change: Our next question comes from Alberto Gandolfi with Colman Sachs, please go ahead.

Speaker Change: Hi, good afternoon, it's Alberto Gandolfi, Goldman Sachsen, thank you for taking my question. I wanted to ask if you can...

Alberto Gandolfi: I wanted to ask if you can pause a bit on a reflection on slide 6 and slide 12. On the left-hand side of slide 6, you're talking about the 8.2 gigawatt of offshore projects, and thank you for going through project by project and completion rate. But can I ask you, on that page, how many of these projects, all in all, have an IRR over WAC since inception? Because Chang'e was divested partly at Buk, we know the situation in the United States, you know, PG is talking up cost in Baltica. My question is, are we going to see further dilution in the return on capital employed that went down from 12.5% to 10% in one year?

Speaker Change: Paul the beat on the reflection on slide 6 and slide 12, you know on the left side of slide 6.

You're talking about...

Speaker Change: My question is, are we going to see further dilution in the return on capital employee that went down from 12.5 to 10% in one year? And if the IRRs and these projects are not to your original benchmark? [inaudible]

Alberto Gandolfi: And if the IRRs on these projects are not to your, you know, original benchmark, Where are we going to see a return on capital employed on a three-year basis, in your opinion? Thank you so much.

Speaker Change: Where are we going to see your return on capital employed on a three-year basis in your opinion? Thank you so much.

Rasmus Errboe: Thank you, Alberto. I can kick that off. As I'm sure you might appreciate, I'm not going to be very detailed about current spread over our cost of capital for each of our construction projects in our portfolio, but what I can say is that we remain confident with the value creation that we see in our committed offshore construction portfolio. So the projects where we have taken FID and where we are moving forward, we will have locked in obviously the contracts ahead of FID and so on. So we remain confident in the value creation on our construction portfolio for offshore wind.

Speaker Change: As I'm sure you might appreciate, I'm not going to be very detailed about current spread over our cost of capital for each of our construction projects in our portfolio.

Speaker Change: with the value creation that we see in our committed offshore construction portfolio. So the projects where we have taken FID.

Speaker Change: and where we are moving forward, we will have locked in obviously the contracts ahead of FID and so on. So we remain confident in the value creation on our construction portfolio for your wind.

Trond Westlie: And then as for the ROCE, also the same there. We stand by the guidance that we gave as part of our updated plan on the 6th of February, where we guided a ROCE of around 13% for the period 24 to 2030. And just to add on to that Alberto, we had an increase of capital employed for 32 billion the last year. Much of that is of course not generating assets due to the fact that we're in a growth period and we will be in a growth period for that element. So coming into the next couple of years, you will, of course, see slightly more pressure on the ROCE, but on the 24 to 30, on the average that we gave on the overall plan, on the average ROCE for those years, that we will stick with that as a result of then having then a growth period now for the next two to three years.

and then as for the Rosy, also the same there.

Speaker Change: We stand by the guidance that we gave as part of our...

Speaker Change: Our updated plan on the 6th of February , where we guided a row sheet of around 13% for the period 24 to 2030.

Speaker Change: And just to add on to that Alberto, we had an increase of capital employed for 32 billion a last year. Much of that is of course not generating assets due to the fact that we're in a growth period and we will be in a growth period for that element.

Speaker Change: So, coming into the next couple of years, you will of course see a slightly more pressure on the Rosie.

Speaker Change: But on the 24 to 30, on the average that we gave, on the overall plan, on the, on the average rosy for those years, that will stick with that as a result of then having then a growth period now for the next two to three years.

Casper Blom: Our next question comes from Casper Blom with Tuskegee. Please go ahead. Mr. Blom, your line is open. Apologies.

Speaker Change: Our next question comes from Casper Blom, in Ustaz. Please go ahead.

Mr Blom, your line is open.

Casper Blom: A question from my side regarding the decision to discontinue the development of Horn C4. I at least was surprised to see this, given that the allocation was given no later than in September last year. I understand your explanation about higher cost, higher interest rates and risk of delays. But is there also an element of you guys wanting to take a more cautious approach to construction in general? I.e., is this also an expression of your new value focus where you maybe pull the plug on something a bit earlier to make sure that you don't get into the same kind of problems that you've previously seen in the US?

Apologies.

Speaker Change: A question from my side regarding the decision to discontinue the development of Honti 4. I at least was surprised to see this given that the allocation was given no later than in September last year. I understand your explanation about higher cost, higher interest rate and risk of delays.

Speaker Change: But is there also an element of you guys wanting to take a more cautious approach to construction in general?

Speaker Change: i.e., is this also an expression of your new value focus where you maybe pull the plug on something a bit earlier to make sure that you don't get into the same kind of problems that you've previously seen in the US if you can sort of reflect a little bit on that. Thank you.

Rasmus Errboe: If you can sort of reflect a little bit on that.

Rasmus Errboe: Thank you. Absolutely. Thank you for the question, Casper. So as you also allude to, I was clear before about the more specific drivers in terms of the project case on Horn C4, and I can sort of build a little bit on that as well. But just to go directly to the core of your question, first of all, this is obviously not a decision we have taken lightly, that goes without saying. But we came out with a plan on February 6th with four key strategic priorities. One of them was to have a razor sharp focus on value over volume.

Absolutely, thank you for the question, Casper.

Speaker Change: There is specifically the drive in the term of projects on H1-C4, and I can put a little bit on it, that it is set.

Speaker Change: But just to go directly to the core of your question. First of all, this is obviously not a decision. We have taken lightly that goes without saying. But we came out with a plan on February 6th.

Speaker Change: with four key strategic priorities, one of them was to have a racist sharp focus on value over volume.

Rasmus Errboe: And as for the project here, we simply did not see a sufficient value to meet our hurdle rate for a project of this kind. On top of that, as you also partly allude to, You should also see this decision as part of us being even more sharp on our state-scape model and our approach to risk management. We have taken this decision early, while obviously on the other side of the bed, we have taken it early relative to a planned FID that was expected to be by the end of this year. And therefore also significantly limiting the financial implications of discontinuing the project in its current form.

Speaker Change: As for the project here, we simply did not see a sufficient value to meet our hurdle rates for a project of this kind.

On top of that, as you also partly allude to,

Speaker Change: You should also see this, this is in part of us being even more sharp on our state skate model and our approach to risk management.

Speaker Change: We have taken this decision early, while obviously on the other side of the bed, we have taken it early relative to a planned FID that was expected to be by the end of this year.

Speaker Change: and therefore also significantly limiting the financial implications of discontinuing the project in its current form.

Rasmus Errboe: Also worth noting that we still have the lease rights, we still have the development consent order, we still have the grid connection agreement, and we will now work towards bringing the project forward again in a new configuration.

We still have the Great Connection Agreement.

Speaker Change: and we will now work towards bringing the project forward again in a new configuration. We basically take it back to development if you will.

Rasmus Errboe: We basically take it back to development, if you will, and then we plan and expect that we would move the project forward in a different configuration and on a different timeline.

Speaker Change: And then we plan and expect that we would move the project forward in a different configuration and on a different timeline.

Harry Wyburd: Our next question comes from Harry Wyburd with BNB Paribas, please go ahead. Hi, thanks. It's another one on the US. I know we're flipping back and forth, the Hornsey 4 in the US, but on sunrise and revolution, it's a really specific one. And given, I think with Hornsey 4, you sort of showing that you're trying to think a bit further forward and make decisions a bit earlier, I'm sure you would have considered the risk of sunrise being cancelled. And if it is cancelled, what would that mean for revolution? And I guess it seems like revolution is sufficiently well progressed that it's less likely that one gets cancelled.

Harry Whitebird: Our next question comes from Harry Wyburd with BNB Pariba, please go ahead.

Hi, thanks.

Speaker Change: So, not the one on the US, I know it's not being back and forth, the ones we saw in the US, but

Harry Whitebird: On some rise in revolution, it's a really specific one, and given, I think with Onzy Foo, you sort of shown that you're trying to think a bit further forward and make decisions a bit earlier, I'm sure you would have considered the risk of some rise being cancelled. And if it is cancelled,

Harry Whitebird: What would that mean for revolution? And I guess it seems like revolution is sufficiently well progressed that it's less likely that one gets cancelled, but if some rises cancelled, could you continue with revolution?

Harry Wyburd: But if sunrise is cancelled, could you continue with revolution? And would it meet your return hurdles if you did? Or would it be a case of if Sunrise is cancelled, it starts to put the whole US project into a difficult position, and maybe it's the end of your sort of major operations in the US? I just wondered if you could help us think about what might happen in that case.

Harry Whitebird: And would it meet your return hurdles if you did? Or would it be a case of this?

Rasmus Errboe

Rasmus Errboe: Thank you.

Rasmus Errboe: Hi Harry, thank you very much. Unknown Speaker Harry, I'm not going to speculate on the implications of a cancellation, as you allude to here, for neither Sunrise nor Revolution Wind. We remain 100% committed to bringing both projects forward as part of our North-East Construction Program. And as I said before, we are talking about projects with a degree of completions of 75% for Revolution Wind and 35% for Sunrise Wind. So I'm not going to entertain hypothetical scenarios about cancellation of projects. In this case, we are fully committed to moving forward.

Hi Harry, thank you very much.

Thank you. Bye-bye.

Speaker Change: Harry, I'm not going to speculate on the implications of a cancellation as you allude to here for neither sunrise nor revolution wind.

Speaker Change: We remain 100% committed to bringing both Project Ford as part of our Northeast construction program.

Speaker Change: And as I said before, we are talking about projects with we have completions of sort of 75% per revolution wind and 35% for sunrise wind.

Speaker Change: So I'm not going to entertain, you can see sort of hypothetical scenarios about cancellation of projects in this case, we are fully committed to moving forward.

Ahmed Farman: Our next question comes from Ahmed Farman and Jeffries, please go ahead. Yes, thank you for taking my question. I just wanted to come back to FONSI 4. Can I just ask you to give us a little bit more granularity on the cost inflation that you have seen on this project since you sort of let's say over the last year you secured a CFD contract and talk a little bit about where exactly within the supply chain has that cost inflation come through? And then sort of related to it, is this cost inflation sort of specific to FONSI 4 or is there sort of a read across the FONSI 3 and Voltica 2 that we should also be thinking about?

Speaker Change: Our next question comes from Armin, Farman and Jeffries, please go ahead.

Ahmed Farman: Yes, thank you for taking my question. I wanted to come back to Plan C4. Can I just ask you to give us a little bit more granularity on the cost inflation that you have seen on this project.

Ahmed Farman: Since you selected over the last year, you secured a CFD contract.

Ahmed Farman: and talk a little bit about where exactly within the supply chain has that.

Ahmed Farman: Constinflation, come through, then sort of related to it. Is this Constinflation so specific to 144? Or is there a sort of a read across for homecy 3 and Baltic at 2? That should we should also be thinking about. Thank you.

Ahmed Farman: Thank you.

Rasmus Errboe, Rasmus Errboe

Trond Westlie: Thank you, Ahmed. So starting with Hornsea 4, so as I have said, and as you have also picked up, I can hear that there are three drivers, if you will, behind the deterioration of the business case to a level where we have decided not to move forward in its current form. One of them is increases in the supply chain. Another one is the increase in the long-dated interest rates in the UK of around 50 basis points since we participated in the auction. Specifically, on the supply chain, I'm not going to single out individual scopes or individual contracts or suppliers.

Thank you, Ahmed.

So, starting with Hon Chi, Hon Chi Fu.

Ahmed Farman: So as I have said, and as you have also picked up, I can hear that there are...

Ahmed Farman: Three drivers, if you will, behind the deterioration of the business case to a level where we have decided not to move forward in current form. One of them is increases in the supply chain.

Ahmed Farman: Another one is the increase in the long dated interest rates in the UK of around 50 basis points since we participated in the auction.

Ahmed Farman: Specifically on the supply chain, I'm not going to single out individual scopes or individual contracts or suppliers that would not be right.

Trond Westlie: That would not be right. But what I can say is that when we prepare for a bid like this, we, of course, base our bid on price quotes and so on across the scope of the construction. And what we have simply seen once we, after a bid, go into detailed contract negotiations with suppliers leading up to a potential FID, is that both, you can say, the risk balance between the developer and the supplier has been moved relative to what we had assumed in certain cases. But more importantly, the initial price quotes have simply been increased.

of the contraction. [inaudible]

Ahmed Farman: and what we have simply seen once we after bit go into detailed contract negotiations with suppliers leading up to a potential FID.

Trond Westlie: So I'm not going to give specific numbers about the magnitude of the increase which is simply too commercially sensitive for us. And as per the other part of your question, you know. How can we see this outside of the of the UK? Does it have implications within the UK on on Horn C3 as I heard you? Does it have implications on Baltica 2 and so on? A few points.

Ahmed Farman: I'm not going to give specific numbers about the magnitude of the increase, which is simply too commercially sensitive for us.

As for the other part of your question, you know,

Ahmed Farman: How can we see this outside of the UK? Does it have implications within the UK on on on on see three years? I heard you does it have implications on Baltic and two and so on?

A few points.

Trond Westlie: First of all, it's important to differentiate between assets under construction and assets under development. Obviously, a fundamentally different situation. And for Hornsea 3 and for Balticat 2, we have obviously locked in the entire supply ahead of taking FID. So therefore, the cost increases and risk increases that we have seen on Horn C4, on the development, you will not see on those projects. Of course, we have changed. We see changes in the underlying interest rate environment. That is the way it is, of course. It's outside of our control, but the part that we can control, you should not expect to see that.

Ahmed Farman: and for Ronshi III and for Baltic had two. We have obviously locked in the entire supply ahead of taking a fight.

Ahmed Farman: So, therefore, the cost increases and risk increases that we have seen on the ONC4, on the development, you will not see on those projects.

Ahmed Farman: Of course, we see changes in the underlying interest rate environment, that is the way it is, of course, it's outside of our control, but the part that we can control, you should not expect to see that.

Trond Westlie: And then, of course, the second element to your question, is this something that is outside of the UK? Just a few facts, while the LCOE for offshore wind has been going down from 2015 to 2020 with around 70 percent, we have seen an increase in Europe from 2020 to 2025 of around 50 percent, so in the other direction of LCOE, partly driven by increased CAPEX, partly driven by increased interest rates. And of course, it is that increase that we have continued to see in Horn C4 as part of locking in the contracts. And it is also an increase that one can expect to see on other projects in Europe that are not yet locked in.

Ahmed Farman: and then of course, the second element to your question, is there something that is outside of the UK?

Just just just a few facts [inaudible]

Ahmed Farman: while the LCEE for offshore wind has been going down from 2015 to 2020 with around 70 percent.

Ahmed Farman: We have seen an increase in Europe from 2020 to 2025, of around 50% so in the other direction of LCUE. Partied driven by increased capics. Partied driven by increased interest rates.

Ahmed Farman: And of course it is that increase, that we have continued to see in on C4 as part of logging in the contracts.

Ahmed Farman: and it is also an increase that one can expect to see on other projects in Europe that are not yet locked in.

Rasmus Errboe: So no doubt we have a short-term challenging environment for offshore wind, but we remain 100% confident and committed to offshore wind in the long term also for Europe, where we believe in the fundamentals.

Ahmed Farman: So no doubt we have a short term challenging environment for offshore wind but we remain a hundred percent confident and committed to offshore wind in the long term also for Europe where we believe in the fundamentals.

Kristian Tornoy: The next question comes from Kristian Tornoy with SAB. Please go ahead. Yes, thank you. So my question goes to your guidance on divestment proceeds of the 70 to 80 billion. And just if you can elaborate whether Horn C4 was expected to be part of this program? And if so, what it does to the expected proceeds? The plan on the number of the proceeds is, of course, the period between 24 and until the end of 22.

Speaker Change: The next question comes from Kristian Tornois with SAP, please go ahead.

Christian Tornoi: Yes, thank you. So my question goes to your guidance on divestment proceeds of the 72 to 80 billion.

Speaker Change: And just if you can elaborate, what I want to see for was expected to be part of this program. And if so, what it does to the expected process?

Speaker Change: The plan on the number of the proceeds is of course the period between 24 and until the end of 26.

Kristian Tornoy: and the timing of Horn C4 is further out, so it has never been a part of that.

Speaker Change: and the timing of Hornsifor is further out, so it has never been a part of that, Albert.

Dominic Nash: Our next question comes from Dominic Nash and Barclays. Please go ahead. Hi there. Thank you very much for taking my questions. I've got sort of a follow up from that one there, which is, I think you're reiterating your medium term guidance of $210 to $230 billion of gross investment. Hornsey 4 is going to be a large chunk of that.

Dominic Nas: Our next question comes from Dominic Nash and Barclays. Please go ahead.

Dominic Nas: Hi there. Thank you very much for taking my questions. I've got sort of for up from that one there which is I think you're not re-trading your medium term guidance of two ten to thirty billion of gross investment.

Dominic Nas: Hornsie, it's going to be, Poozie Ford's going to be a large chunk of that.

Dominic Nash: So the first question is, does that mean that your medium term guidance either will probably need to come down or does it follow on from that, that Hornsey 4 is likely to be able to re-bid into upcoming CFD rounds and if so, can you give us some colours to, I believe it has to jump one, or when do you think it will be back in the position to go back into a CFD round? Thank you. Thank you very much, Dominic. So, first of all, on the investment program that you are alluding to, so you are right in saying that we have, as part of the plan that we presented on February 6th, we have communicated a gross investment program towards 2030 of 210 to 230 billion.

Dominic Nas: So the first question is, does that mean that your medium term guidance either will probably need to come down or?

Dominic Nas: Can you give us some colours too? I believe I have to jump one or when do you think it will be back in the position to go back into a CFD round? Thank you.

Thank you very much, Dominic.

Speaker Change: So, first of all, on the 40, 40 of the investment program that you are looting to, so you are right in saying that...

Speaker Change: that we have as part of the plan that we presented on February 6th, we have communicated a cross-investment program towards 2030, of 210 to 230 billion.

Dominic Nash: And as part of that, as we have also said, roughly 40 to 60 billion Danish is what we call uncommitted capital. So, for projects where we have not yet taken FID, such as Hornsea. So, of course, now, when we do not move forward on C4 in its current form and on the current timeline, then, of course, we will have some more flexibility in terms of how we intend to deploy those 40 to 60 billion Danish towards the most value-aggressive opportunities that we can find in our portfolio, likely with a strategic emphasis on offshore wind in Europe.

Speaker Change: And as part of that, as we have also said, roughly 40 to 60 billion Danish is what we call uncommitted

Speaker Change: So for projects where we have not yet taken FID, such as 24

Speaker Change: So, of course, now when we do not move forward, Hansi forward and its current form and on the current timeline.

Speaker Change: We want a mother flexibility at least, where we think.

to deploy those 40 to 60 billion Danish.

Speaker Change: towards the most value-aggressive opportunities that we can find in our portfolio, likely with a strategic emphasis on offshore wind in Europe .

Rasmus Errboe: Specifically, to your point on the timing of a potential rebid. It's a bit too early for me to be very explicit about that. What I can say is that it's not going to be AR7 or AR8. And then, of course, we would have to see what is going to be the best way forward for the project, also for us in terms of delivering the needed value creation for our shareholders. And we will continue to have a good dialogue with the British government in this regard. It is important for me to just stress that we fully believe that the framework that we have seen, are seeing in the UK, as well as the sort of the general support from everywhere we go, from a regulatory perspective for offshore wind, is really truly there.

Speaker Change: specifically to your point on the timing of a potential rebate.

Speaker Change: It's a bit too early for me to be very explicit about that. What I can say is that it's not going to be AR7 or AR8.

Speaker Change: And then of course we would have to see what is going to be the best way forward for the project also for us in terms of delivering the needed value creation for our shareholders.

Speaker Change: The framework that we have seen R-seeing in the UK as well as the general support from everywhere we go from a regulatory perspective of your wind is really truly there.

Rasmus Errboe: And so therefore, we will continue to have a good dialogue on the back of this decision.

Speaker Change: So therefore we will continue to have a good dialogue on the back of this decision I'm sure.

Lars Heindorff: The next question comes from Lars Heindorff, Nordia. Please go ahead. Good afternoon. Thank you for taking my question.

Speaker Change: The next question comes from Lars Heindolf in Ordea. Please go ahead.

Lars Heindorff: Yes, I've known. Thank you for taking my question. It's more to Trond, perhaps you mentioned in the presentation that you will conduct a more thorough review of provisions here during the second quarter.

Lars Heindorff: It's more to Trond perhaps. You mentioned in the presentation that you will conduct a more thorough review of provisions here during the second quarter. Can you give us a bit more insight? Is there anything that you feel is in danger or what is the reason for this? Oh, thank you, Lawrence. No, no, there's nothing in danger. It's just that we're closing out. We're just closing out the sort of the last contract. So we're closing down the ocean wind provisions and as a result of that. There's more elements of what is the provision all needed, really.

Speaker Change: Can you give us a bit more insight? Is there anything that you feel is in danger or what is the reason for this?

Trond: Thank you, large. No, no, there's nothing in danger. It's just that we are closing out.

Trond: We're just closing out the sort of the last contract so we're closing down the ocean wind provisions and as a result of that

Trond: There's more elements of what is the provision all needed really, it's more the other way than sort of a concern.

Trond Westlie: It's more the other way than sort of a concern.

Jenny Ping: The next question comes from Jenny Ping with Citi. Please go ahead. Thank you very much. If I can just check on what is actually cash and what's non-cash that's expected to go out in both the regards of tariffs, as well as Horn C4, please. I guess on tariffs, the 1.2 billion, that, when does the cash, this is obviously an accounting item for now, but when does the cash actually go out? Is it just part of the capex? And then similarly for Horn C4, the 3 to 4 billion EBITDA impact, I presume all of that is not cash, and some of it is, so clarification on that.

The next question comes from Jenny Pink with Citi News.

David, please go ahead.

Jenny Pink: Thank you very much. If I can just check on what is actually cash and what's non-cash.

That's expected to go out in both the regards of.

Jenny Pink: Patterns as well as Hornsby Ford, I guess on task 1.2 billion that when there's a cash, this is obviously an accounting item for now, but when does the cash actually go out? It was just parts of the

Jenny Ping: And then just a quick one on Horn C4, have you thought about or explored option of selling the asset as Rattenfell have done before with a CFD? Is that something you've explored and didn't progress forward? Thank you.

Speaker Change: or Explored, option of selling the asset as Rampal has gone before with a CSE. Is that something you've explored and given progress forward? Thank you.

Trond Westlie: Well, to start on the first question on the cash impact of Hornsea 4, as I said, of the amount, it's approximately 1 to 1.5 billion that will be the cash effects from now on. The remaining part is already paid for and then OceanWin is of course just the internal pricing and literally paid for in the OceanWin project. When it comes to the tariffs, the book value of the 1.2 that you see taken in this And in this quarter, that is, of course, the net present value effect of tariffs in the projects on Sunrise and Leverlush.

Speaker Change: Well, to start on the first question on the cash impact of 144, as I said of the amount it's approximately 1 to 1.5 billion that will be the cash effects from now on.

Speaker Change: When it comes to the tariffs, the book value of the 1.2 that you see taken in this.

Speaker Change: In this quarter, that is of course the net present value effect of tariffs in the projects on sunrise and in Lebberlouche.

Trond Westlie: The gross number of tariffs is, of course, going to be paid when the goods enter the United States. So that comes as a result of the pure logistics in the project and that payment is just a payment and as such just a negative cash flow element in the NPV calculation.

Speaker Change: The tariff to sell us the gross number of tariffs is of course going to be paid when the goods enter the United States.

Speaker Change: So that comes as a result of the pure logistics in the project. That payment is just a payment and such just a negative cash flow element in the NPV calculation.

Peter Bisztyga, Peter Bisztyga,

Trond Westlie: And for the second part, third part of your question, Jenny, hi, on Hornsea 4, no, we have no plans to divest our lease. We see it as a strategic asset and we see the Hornsea zone very much at our core and the UK as well. So we have no plans to sell the lease.

Jenny Pink: And for the second part, a third part of your question, Jenny Hai, on Hansi Fall.

Speaker Change: We have no plans to divest our lease. We see it as a strategic asset, and we see the Haunchy Zone very much at our call on the UK as well.

So we have no plans to sell the lease.

Olly Jeffery: Our next question comes from Olly Jeffery with Deutsche Bank. Please go ahead. Thanks very much. A few questions for me. So the first is on potential further impairments in Europe. So I'm mindful of the fact that Bull took a three. I believe that's the most obvious candidate where if you don't go ahead with that project, you could incur further write downs. Could you give an update on what's happening with that? And could you also say if we were to cancel it today, what size of impairment might we need to, what size of impairment might we see?

Oded Jeffery: Our next question comes from Olly Jeffery, we touch a bank, please go ahead.

Oded Jeffery: Thank you very much. A few questions for me. So the first is on

Potential further impairments in Europe .

Olly Jeffery: And then second question is much simpler. Could you please give an update on the sales process for Hornes E3 that's progressing as planned for this year? Thank you very much.

Oded Jeffery: and then second question in this much simpler. Could you please give an update on the sales process for all of these three that's a progressing this plan for this year? Thank you very much.

Rasmus Errboe: I start with Baltica 3 and then I leave the Hornsea 3 sales process to Trond. Hi, Olly. We have decided a while back to, which you are probably also alluding to with your question, we have decided a while back to keep Baltica III under reconfiguration, as we call it, together with our partner, PG. And the reason we have done so is simply because we have not and are not seeing the value being good enough as of now to meet our investment requirements. So therefore, that is still the case on Baltica III and we are working on finding a way forward together with our partner, PGE, and just stating as well here that we are continuously very pleased with that partnership and we are moving forward really well together on Baltica II.

Oded Jeffery: I start with Baltica 3 and then I leave the Haunchy 3 sales process to Trond.

Oded Jeffery: I have decided a while back to which you are probably also alluding to with your question. We have decided a while back to keep Baltic S3 under reconfiguration as we call it together with our partner PG.

Oded Jeffery: And the reason we have done so is simply because we have not and are not seeing the value being good enough as of now to meet our investment requirements.

Oded Jeffery: So, therefore, that is still the case on Baltica 3 and we are working on finding a way forward together with our partner PG and just stating as well here that we are continuously very pleased with that partnership and we are moving forward really well together on Baltica 2.

Rasmus Errboe: I'm not going to give you a specific number in terms of potential financial implications should we decide not to move that project forward, but there will be cancellation costs, but they will be lower, obviously, than the ones that we have now talked about today. For Hornsea 4, it's a significantly smaller project, we are in it with a partner and so on. But should we decide finally one day to not move it forward, yes, there will be financial implications, but they are clearly going to be managed.

Oded Jeffery: But they will be they will be low obviously than the ones that we have now talked about today for for for on C4 it's a it's a significantly smaller project we we are in it with a partner and so on.

Oded Jeffery: But should we decide finally one day to not move forward? Yes, there will be financial implications, but they are clearly going to be manageable.

Rasmus Errboe: On the farm down sales processes that we're going on, we're of course not commenting on each one of them. But what I can say is that all of them is progressing, all of them is moving along. And as we said, the timing of the different elements, since we have mentioned, I think it now is 18, two years ago that we mentioned the Hornsey 3, that is also moving along according to the previous plan. So not really more to say than what we said before, then basically we're moving along according to the plan and we will come back when we literally have more sort of qualified and basically have blue ink on the paper on those elements.

Oded Jeffery: On the rundown sales processes that we're going on, we're of course not commenting on each one of them. But what I can say is that all of them is progressing. All of them is moving along.

Oded Jeffery: and as we said, the timing of the different elements.

Oded Jeffery: Since we have mentioned, I think it now is eight in two years ago that we mentioned the 203 that is also moving along according to the previous plans.

Oded Jeffery: So, not really more to say than what we said before and basically we're moving along according to the plan and we will come back when we...

Rob Pulleyn: There are other lists in the interest of time, please limit yourself to one question only and then you can go back to the queue for a second. Our next question comes from Rob Pulleyn and Morgan Stanley. Please go ahead. Hey, thank you. There's always more questions. So may I just explore something on Horn C4? And is this decision and you've talked about value over volume and obviously the balance sheet to resilience. Is this a function of being unable to find a farm down CapEx partner for the project when, of course, you're looking for one on Horn C3 as well?

Speaker Change: The analysis in the interest of time please limit yourself to one question only and then you can go back to the queue for a second question.

Speaker Change: Our next question comes from Rob Pullein and Morgan Stanley. Please go ahead.

Rob Pullein: Hi, thank you. There's always more questions. So, may I just explore something on Hornsley 4? And is this decision, and you've talked about value of volume and obviously the balance sheet through resilience? Is this a function of being unable to find a farm-down capex partner for the project when, of course, you're looking for one on Hornsley 3 as well?

Rasmus Errboe: And a Part B, if you will, is also, should we be thinking that within the UK there has been indications that the AR7 and 8 auctions and appreciating it's probably more AR8 that you're looking at, terms could be better than AR6. And from a value perspective, it's better to cancel and rebid into a better auction. I'd love to hear some thoughts around those two angles. Thank you. Thank you, Rob.

Rasmus Errboe: I will take both Part A and Part B of your question. If we take your comment on the farm down of Hornsea 4 first. The way we think about it is that We have seen, as I said before, the business case deteriorate due to supply chain interest rates and also this sort of increased pressure on the float in the project as we saw it. And as I said, a part of that was also the increase in the interest rate. The way we think about it is, of course, that we believe that the prudent thing for us to do when deciding on whether or not to move forward with an FID of a project of the size and scale of Horn C4 is also to take the value implications of a farm down the line into consideration already now.

Speaker Change: Thank you Rob, I will take both part A and part B of your question.

Speaker Change: If we take, if we take your comment on the farm down of 24 first.

The way we think about it is that

Speaker Change: We have seen, as I said before, the business case deteriorate due to supply chain interest rates, and also this sort of innate.

Speaker Change: Chris, Chris Pressure, on the float in the project as we saw it. And I said a part of that was also the increase in the interest rate.

Speaker Change: The way we think about it is, of course, that we believe that the prudent thing for us to do when deciding on whether or not to move forward with an FID of a project of the size and scale of ONC4.

Speaker Change: is also to take the value implications of a farm down the line into consideration already now. We think that is the prudent thing to do.

Rasmus Errboe: We think that is the prudent thing to do. So in that sense, it has been a part of our decision making, but there is absolutely no read across whatsoever to ongoing farm downs as, for instance, on Horn C3 that you are alluding to.

Speaker Change: So, in that sense, it has been a part of our decision making, but there is absolutely no reader cross whatsoever to ongoing farm downs, as for instance, on Hornsea 3, that you are alluding

Rasmus Errboe: Then part B of your question on sort of our thoughts on moving forward with the project in a different form and re-bidding at a later point in time. We would not be able to bid for AR6, sorry, AR7 and AR8, so that is not part of our thinking. It will likely be at a later point in time. So, but of course, the thinking is now that we would move the project forward, we would take it back into development and then, of course, we will do whatever we can to be competitive again in a future auction round in the UK.

Speaker Change: Then a part, be of your question on sort of our thoughts on moving forward with with the project in a different form and repeating in a later point in time.

Speaker Change: We would not be able to bid for AR-7 and AR-8, so that is not part of our thing, it will likely be at a later point in time.

So, so, so.

Speaker Change: But of course, the thinking is now that we would move the project forward, we would take it back into development, and then of course we would do whatever we can to be competitive again in a future auction round in the UK. As said, we remain fully committed to the UK and the ONC zone.

Rasmus Errboe: As said, we remain fully committed to the UK and the Hornsea Zone.

Deepa Venkateswaran: The next question comes from Deepa Venkateswaran with Bernstein. Please go ahead. Thank you for taking my question. Apologies, I'm going to stick to Horn V4. We've heard from one of your other peers with an active contract in the same that they are still going ahead, they see value creation, and they talk about a capex of $3.5 billion per gigawatt ex-ofto.

Dipa Venkateswaran: The next question comes from Deepa Venkateswaran with Bernstein. Please go ahead.

Dipa Venkateswaran: Thank you for taking my question. Apologies, I'm going to stick to hon. V4. We've heard from one of your other peers with an active.

Dipa Venkateswaran: A contract in the same that they're still going ahead. They see value creation. And they're still going ahead.

Dipa Venkateswaran: And they talk about a capex of 3.5 billion per gigawatt ex-oftal. Are you able to comment what kind of capex you were assuming when you decided to discontinue?

Deepa Venkateswaran: Are you able to comment what kind of capex you were assuming when you decided to discontinue? And secondly, just note that a spokesperson for the UK government has said that they intend working with you to get Horn V4 back on track. So I wonder how that dovetails with the previous comment that you think you can't really participate in AR7 or 8. So could you maybe elaborate on what the UK government might want to do?

Speaker Change: And secondly, just note that spokesperson for the UK Government has said that they intend working with you to get on before.

Speaker Change: Back on track. So, I wonder how that, that's, that's for the previous comment that you think you can't really participate in AR 7 or 8. So, could you maybe elaborate on what the UK government might want to do? Thank you.

Rasmus Errboe: Thank you. Hi, Deepa, thank you very much. I'm not going to give away CAPEX multiples for Horn C4 as it stands right now. It is a project we have decided not to move forward with. And also, it's not for me to compare or speculate in how our good colleagues in the industry approach their projects in terms of communication and so on. So I prefer to focus on our own and I cannot give that multiple away, Deepa. But I'm sure you have a view on what you might think CAPEX is for a project of this size.

Hi Deepa, thank you very much.

Speaker Change: I'm not going to give away capex multiples for Hornsey for assistance right now. It is a project we have decided not to move forward with.

and also, it's not for me to...

Speaker Change: It is a good colleague in the beginnings to use projects in communication and so on.

Speaker Change: So I prefer to focus on our own and I cannot give that multiple away deeper, but I'm sure you have a view on what you might think Capix is for a project of this size and of course a starting point is

Rasmus Errboe: And of course, the starting point is Horn C3 and then adjusting for the fact that CAPEX has gone up. And specifically or to the second part of your question on the comments that has come out today from DeskNets and so on, we of course very much appreciate that and we see it the same way. We will continue to do our absolute best to be the best possible partner for the British government. And as part of that is also that it's not right for me to speculate in terms of sort of when and how we will be able to come back with Horn C4 in terms of which rounds and so on.

Speaker Change: Hans C3, and then adjusting for the fact that Capix has gone up since then.

Speaker Change: and specifically to the second part of your question on the comments that has come out today from Desnets and so on.

Speaker Change: We, of course, very much appreciate that and we see it the same way. We will continue to do our absolute best to be the best possible partner.

for the British Government.

Speaker Change: And as part of that is also that it's not right for me to speculate in terms of when and when and how we would be able to come back with with Horn C4 in terms of which rounds and so on. But what I can say is that we would obviously follow follow follow the frameworks which I as I said before I believe are.

Rasmus Errboe: But what I can say is that we will obviously follow the frameworks, which as I said before, I believe is the right one. And then we will continue to do our absolute best to move the project forward in a way that is sufficiently value-grading for our shareholders.

Speaker Change: You know, is the right one and then we will continue to do our absolute best to move the project forward in a way that is sufficiently value-grading for our shareholders. Thank you very much.

Rasmus Errboe: The next question comes from Asne Holsen with IBG. Please go ahead. Hi, thanks for taking my question. I have a question about the impairments on US tariffs. Do they only sort of cover the steel-aluminum components, or do they extend to other components? On the tariff side, the impairments of the 1.2 only relates to the steel and aluminium. We also, in the introduction, we also said that we have not included the other tariffs of the 20%, which is now 10 plus 10. The 10 is effective and the last 10 is not. Having said that, so the 1.2 is not including the other tariffs.

Speaker Change: The next question comes from Asna Holson with ABG, please go ahead.

Asne Holsen: Hi, thanks for taking my question. I have a question about the impairment of the US terrorist.

Speaker Change: Do they only sort of cover the sort of steel aluminum components, or do they extend to other components?

Speaker Change: Err, on the tariff side, the impairments of the 1.2 only relate to the steel and aluminium.

Speaker Change: We also in the introduction, we also said that we have not included the other tariffs or the 20% which is now 10 plus 10, the 10 is effective and the last 10 is not.

Speaker Change: Having said that, so the 1.2 is not including the other tariffs.

Trond Westlie: In the scenario that we will get a tariff of 20% from the EU to the US, That will, in our sort of preliminary estimates, because we don't know what it will contain, but if it's a point blank, basically all goods going into the U.S. of 20%, that will result in a bit less than half. of the 1.2 billion of impairment. So it's sort of short of the 600 million of impairment that needs to be added to Sunrise and Revolution. Fully agree.

Speaker Change: In the scenario that we will get tariff or 20% from the EU to the US.

Speaker Change: That will in our sort of preliminary estimates because we don't know what it will contain but if it's a point blank basically all goods going into U.S. or 20%

That will result in a bit less than half.

Speaker Change: So it's sort of short of the 600 million of impairment that needs to be added to sunrise and revolution.

Trond Westlie: And just in terms of the underlying sort of drivers, just in very simple terms, the key drivers behind the tariffs on steel and aluminium is the monopiles and the turbines, obviously mostly steel. And then the key driver behind a potential additional does the analysis. And then, very quick. There is a question. Okay, so a lot of things are anecdotally and But again, the financial implications are exactly as laid out.

Speaker Change: Fouliegrie, and just in terms of the peculiar ones, so there is a much simpler term, there is a chain, there is listening to a style in aluminum, and it is monopærelse, and it is dry-bound, and it is mostly style.

Speaker Change: And then the key driver behind a potential additional tariff on sort of more broadly outside of the aluminum would, you know, the vast majority of that would be related to cables and plates.

Speaker Change: But again, the financial implications are exactly as laid out by Trond.

Mark Freshney: Our next question comes from Mark Freshney with UBS. Please go ahead. Hello, thank you for taking my question. Um, I mean this is, you're cancelling Hornsey 4 given... Everything that's going on in the UK with Clean Power 2030. Some might say it makes a very ambitious target for the UK even more difficult to achieve. So my question is, presumably you would have had to have spoken to the Energy Minister or Secretary of State last night or early this morning.

Speaker Change: Our next question comes from Mark Freshney with UBS, please go ahead.

Mark Fresni: Hello, thank you for taking my question. I mean, this is you cancelling Hornsey for given

Mark Fresni: Some might say it makes a very ambitious target for the UK even more difficult to achieve. So my question is presumably you would have had to have spoken to the Energy Minister with Secretary of State.

Mark Freshney: My question is, What do they say about this? And I guess further to Deepa's question, how confident are you the government can find a solution to this and get? Get Clean Power 2030 done.

Get Clean Power 2030 done.

Rasmus Errboe: Thank you for the question, Mark. I'm afraid my answer is probably going to be a little bit disappointing to you, but I'm not going to entertain, you know, I'm not really going to go into this from that perspective in terms of the political targets in the UK and so on. That is not for me to do. I would like to focus on our projects and how we can continue to assist the British government in the best possible way. And as I said before, when asked on another matter, of course, in all of the markets we are in, in our core markets, of course, we continue to have dialogues with all the relevant stakeholders.

Mark Fresni: I'm afraid my answer is probably going to be a little bit disappointing to you.

Mark Fresni: But I'm not going to entertain, you know, I'm not really going to go into this from that perspective in terms of...

Mark Fresni: of the political targets in the UK and so on. That is not for me to do, I would like to focus on our projects and how we can...

Mark Fresni: We can continue to assist the bridge government in the best possible way.

Mark Fresni: And as I said before, when asked on another matter, of course in all of the markets we are in, in our core markets, of course we continue to have dialogues.

Rasmus Errboe: But I will not go into details about specific conversations with anybody.

Helene Brondbo: Our next question comes from from Helene Brondbo with DNB. Please go ahead. Hi, thank you for taking my question. I was just wondering if you could shed some more light on how you assess the possibility of doing new offshore wind projects that are profitable in the current markets in Europe? And what do you think it will take for this industry to become competitive, I guess, on current subsidy regimes as well as on a subsidy-free basis?

Speaker Change: Our next question comes from Aaron Brondboe with DNB, please go ahead.

Aaron Brondboe: Yes, hi, thank you for taking my question. I was just wondering if you could chat some more light.

Speaker Change: On how you assess the possibility of doing new offshore wind projects that are profitable in the current markets in Europe , and what do you think it will take for this industry to become competitive, I guess on current subsidy regimes as well as on a subsidy free basis.

© transcript Emily Beynon

Rasmus Errboe: Thank you very much Helene, so first of all, just to be clear, while we do see challenges in the short term for offshore wind, also in Europe, we fundamentally believe in the long term. driven by the fact that the demand for electricity is is obviously going up quite significantly in Europe. And also right now, and for a while now, we see a significantly strengthened focus on energy security and also affordability. And then finally, we are seeing Significant improvements in framework conditions in several of the major markets that we see. For the long term, what is needed, in our view, for the industry is predictability for the developers and the supply chain, and also, you know, frameworks that are centered around CFDs actually exactly like we see it in the UK.

Perspective for the Mark,

driven by the fact that the demand for electricity is...

Speaker Change: is obviously going up quite significantly in Europe and also right now and for a while now we see a significant strength and strength and focus on energy security and also affordability.

Speaker Change: and then finally we are seeing significant improvements in framework conditions in several of the major markets that we see.

Thank you.

Speaker Change: For the long term, what is needed, in our view, for the industry is predictability for the developers and the supply chain, and also, you know,

Speaker Change: Frameworks that are centered around CFDs exactly like we see it in the UK.

Rasmus Errboe: The uncertainties that we would have to address as an industry here is obviously on the size of the electricity demand, it is on the price side, it is also on the supply chain that we've talked about before, and then obviously also turning targets into FID and then finally on the bankability of the bank. But we firmly believe that there is a way forward.

Speaker Change: The uncertainty that we would have to address as an industry here is obviously on the...

Speaker Change: on the size of the electricity demand, it is on the price side.

Speaker Change: It is also on the surprise chain that we've talked about before and then obviously also turning the targets into FID and then finally on the bank ability of the projects.

Speaker Change: But we firmly believe that there is a way forward, and as we have also recently put out as part of an interesting piece.

Rasmus Errboe: And as we have also recently put out as part of. Interest in Peace, called European Offshore Wind at a Crossroads. We are very focused on the need for predictability, and we believe the right way is for the European governments more broadly in the coming period of time to tender out offshore wind in a, you can say, coordinated manner, country for country, preferably with a, you can say, guaranteed build-out of offshore wind of around 10 gigawatts from 2031 towards 2040 of CFDs, and then a top-on for merging projects with PPAs. If that happens, then we are convinced that the industry will answer, we will, and we also then expect LCOE to again start going down significantly for offshore wind.

Speaker Change: called European Offshore Wind at a crossroads. We are very focused on the need for predictability and we believe the right way is for the European governments more broadly in the coming period of time.

Speaker Change: Tender out of your wind in a, you can say coordinate manner country for country, preferably with a, you can say guaranteed build out of off your wind of around 10 gigawatts.

Speaker Change: from 2031 towards 2040 of CFDs and then a top-on for emerging projects with PPAs.

Speaker Change: If that happens, then we are convinced that the industry will answer, we will, and we also then expect LCOE to again start going down significantly for show-in.

Rasmus Errboe: Europe needs offshore wind. We don't see a relevant scenario where we will not see a significant increase in volumes for offshore wind for the next decades, but we need to break the curve together.

Speaker Change: Europe need offshore wind. We don't see a relevant scenario where we will not see a significant increase in volumes for offshore wind for the next decades. But we need to break the curve together.

Harry Wyburd: We continue with a set of follow-up questions, starting with Harry Wyburd with BNP Paribas. Please go ahead. Mr. Wyburd, your line is open.

Speaker Change: You continue with a set of four love questions, starting with Harry Wyburd with B&B Paraba, please go ahead.

Mr. Wyburd, your line is open.

Alberto Gandolfi: Hi, sorry, my question was already answered, so I'll just hand it on to the next person, thank you. The next follow-up comes from Alberto Gandolfi with Goldman Sachs. Please go ahead. Thank you. I keep it very brief. Thank you for taking my follow up. My question is the following. Do you have a view on the potential implementation of zonal pricing in the UK on the probability of it being implemented? What timeline and how would it affect your existing profitability, the profitability of the existing portfolio? Thank you so much. Thank you.

Speaker Change: Hi, sorry, my question was already answered, so I'll just hand it on to the next person. Thank you.

Thank you.

Speaker Change: The next follow-up comes from Alberto Gandolfi with Goldman Sachs. Please go ahead.

Alberto Gandolfi: Thank you. I'll give it very brief. Thank you for taking my follow up. My question is the following. Do you have a view on the potential implementation of Zonal pricing in the UK on the probability of it being implemented? What timeline and how would it affect your existing profitability, the profitability of the existing portfolio? Thank you so much. Thank you.

Alberto Gandolfi: Thank you, Alberto. So obviously, the conversation around solar pricing in the UK is obviously something that we are following very, very closely. And our engagement with both Desnet and RIMA remains a priority for us. For us, what is really the key point here is that we see a need, obviously, for significant or commitment to grandfathering of existing projects, which is also very much what we discussed with the senior officials, as well as also the public comments that we have seen coming out. So we fully appreciate that the zoning pricing is still under consideration. And as such, I will not put out a firm view on one model or the other.

Alberto Gandolfi: Thank you, Alberto. So obviously, the conversation around solar pricing in the UK is obviously something that we are following a very closely and our engagement with both the business and the REMA remains a priority for us.

Alberto Gandolfi: For us, what is really the key point here is that we see a need obviously for significant or commitment to grandfathering of existing projects.

Alberto Gandolfi: which is also very much what we discussed with the senior officials as well as also the public comments that we have.

that we have seen coming out.

Alberto Gandolfi: and I will not put out a firm view.

Rasmus Errboe: But of course, it is an uncertainty, should you go there, on the cost of capital for existing projects because of the increased uncertainty on the revenue line and the risk of the project, which is also why we believe that the grandfathering of existing projects is absolutely essential. Thank you.

Alberto Gandolfi: on the cost of capital for existing projects because of the increased uncertainty on the revenue line and the risk of the projects which is also why we believe that the grandfathering of existing projects is absolutely essential.

Thank you.

David Paz: Our next question comes from David Paz with Whorf Research. Please go ahead. Hello, thank you. Just on the revolution wind. Can you help me understand, you say you're on track to be complete, to complete the highest priority by the end of this year, which I believe is the installation vessels. What then has to... be completed to get you COD. I think you still have second half 2026. Can you remind me what's the lag there?

Speaker Change: Our next question comes with David Paz with more research. Please go ahead.

Hello, thank you. Just on Revolution Wind.

Speaker Change: Can you help me understand that you stay here on track to complete the high-period of any of this year, to believe in the insulation vessels, what then has to be.

Just keep reminding what's the blood there.

David Paz: Absolutely, David, so the critical path, if you will, for revolution wind is the onshore substation. So what we are doing now, as we've talked about, is of course we are continuing the offshore construction that I mentioned before, where we are, as I said, we have installed around 50% of the 65 turbines and around 80% of the monopiles. So you can say all the components for Revolution Wind have also been constructed and prepared and the critical part, what we will be doing for the remainder of 2025 and 2026, is the offshore construction but also the finalisation of the onshore subsystem.

Speaker Change: Absolutely David, so the critical part, if you will, for Revolution Wind is the onshore substation.

Speaker Change: We are continuing the offshore construction that I mentioned before, where we are as set around, or we have installed around 50% of the 65 turbines and around 80% of the monopiles.

Speaker Change: So you can say all the components for revolution wind have also been constructed.

Speaker Change: and Prepared, and the critical path what we will be doing for the remainder of 25 and 26 is the offshore construction, but also the finalization of the onshore substation.

Peter Bisztyga: Our next follow-up comes from Peter Bisztyga with Bank of America. Please go ahead. Yeah, hi. So, actually just another one on the zonal price in the UK. Just wondering whether the uncertainty associated with that... As a tool into your decisions to cancel Hornsey 4, and has it caused any issues or disruptions with the Hornsey 3 farm down process? Thank you, Peter.

Peter Bitstiga: Our next follow-up comes from Peter Bisztyga with Bank of America, please go ahead.

Peter Bitstiga: Yeah, hi, so I should just, another one on the zonal place in the UK, DeFongering Weather, the uncertainty associated with that.

Peter Bitstiga: as a tool into your decision to cancel on V4 and have it towards any issues or disruptions

Rasmus Errboe: The answer is no and no. So the zone pricing debate in the UK has not in any way been part of our decision to discontinue Horn C4 in its current form. It is driven by the three things I mentioned before and then also the comments I made relating to a potential farm down. And as per our ongoing process with the farm down of Horn C3, as Trond said before, we're not going to go into details about an ongoing process, but I can say that the debate about zone pricing is not part of the conversation.

Thank you, Peter. The answer is no and no.

Peter Bitstiga: So the zone pricing debate in the UK has not in any way been part of our decision.

Peter Bitstiga: to discontinue Horn C4 in its current form. It is driven by.

Peter Bitstiga: By the three things I mentioned before, and then also the comments I made relating to a potential found out.

Peter Bitstiga: And as per our ongoing process with the farm down of Hornsey 3, as Trond said before, we're not going to go into details about an ongoing process, but I can say that the debate about zone pricing is not part of the conversations we have.

Rob Pulleyn: Our next follow-up comes from Rob Pulleyn. Please go ahead. Hi, thank you. Maybe this is a little bit obscure, but relates to the US projects. There was a technical ruling, I believe we'll call it on the May 2nd, by the Interior Department regarding permitting for offshore wind. And this removed a Biden opinion and inserted a Trump one. And the language says that the department action taken on the basis of this previous opinion would have to be re-evaluated. Sorry, this is all rather clunky. But the question is, I don't know whether you've seen that May 2nd ruling.

Our next follow-up comes from Ropoulin. Please go ahead.

Speaker Change: Hi, thank you. Maybe this is a little bit obscure, but relates to the US projects. There was a technical ruling, I believe we'll call it on the May 2nd by the Interior Department regarding permitting for offshore wind, and this removed a Biden opinion and inserted a Trump one.

Speaker Change: and the language says that the development action taken.

Speaker Change: On the basis, if this previous opinion would have to be re-evaluated, sorry, this is all rather clunky. But the question is, I don't know whether you've seen that May 2nd ruling, I'm sure you have. And does that open the door to retrospective removal of the permits?

Rasmus Errboe: I'm sure you have. And does that open the door to retrospective removal of the permits on Sunrise and Revolution, which obviously postdates what happened to Ecuador's Empire Project? I hope that was a clear question. Well, thanks. Thanks, Rob, for the question. I'm not going to go into speculation about The regulatory framework around Evolution, Wind and Sunrise, as I said before, we have all the permits we need. We have completed multi-year reviews and we have also followed all state and federal procedures. So therefore, I'm not going to go into specifics about technical rulings.

Speaker Change: on Sunrise and Revolution, which obviously post dates what happened to Ecuador's empire project. I hope that was a clear question.

Speaker Change: You can say the regulatory framework around Evolution, Wind and Sunrise as I said before.

Speaker Change: We have all the permits we need. We have completed multi-year reviews and we have also followed all state and federal procedures. So therefore I'm not going to go into specifics about technical rulings.

Ahmed Farman: The next follow-up comes from Ahmed Farman. Please go ahead.

The next follow-up comes from Ahmed Formand. Please go ahead.

Ahmed Farman: Mr. Farmer, your line is open, we cannot hear you. Sorry, two quick questions. Sorry about that. Could I get your perspective on the UK government's proposed reforms to the CFE? Just, you know, if you think that makes a material difference to the to the options or the overall attractiveness of the market. And then you talked about earlier that, you know, the both Sunrise and Revolution are part of the single program. And as I understand it, probably the learnings from the Revolution will go to Sunrise, but could you elaborate on that? What are the sort of critical parts there in terms of the learning from Revolution that would sort of then expect to benefit the Sunrise Wind project?

Farmer, your line is open. We cannot hear you.

Ahmed Farman: So, a two-three question, sorry about that. Could I get you perspective on the UK Government's proposed?

The Form to the TFB.

Ahmed Farman: just, you know, if you think that makes a material difference to the to the options or the attractiveness of the market. And then you talked about earlier that, you know, the both Sunrise and Revolution win are part of the single program. And as I understand it…

Ahmed Farman: of the sort of learning, some sort of revolution will go sort of, will go to sun rising, but could you elaborate on that, what are the sort of critical parts there in terms of the learning from revolution that would sort of then expect to benefit the sun rising project. Thank you. Thank you.

Rasmus Errboe: Thank you. Absolutely. Thanks. Thanks, Ahmed.

Rasmus Errboe: In terms of AR7 and the debate that is currently ongoing, since we are not, you know, going to participate, I don't think it is right for me to go far into that discussion. But we of course note very much the dialogue that is ongoing right now as part of the framework for AR7 and we also of course note as an example the proposal that is being discussed on potentially having a CFD that is 20 years instead of 15 years. And of course, as I also said before, in a more general comment about what is needed for the long term for offshore wind in Europe, any increased predictability...

Ahmed Farman: In terms of AR-7 and the debate that is currently ongoing, since we are not...

Ahmed Farman: You know, going to participate, I don't think it is right for me to...

Ahmed Farman: To go far into that discussion, but we of course note very much the dialogue that is ongoing right now as part of the framework for AR7 and we also of course note as an example.

Ahmed Farman: The proposal that is being discussed on potentially having a CFD that is 20 years into that of 15 years and so on.

Ahmed Farman: And of course, as I also said before, in a more general comment about what is needed for the long term for your wind and Europe , any increased predictability for the developers, including on the revenue line, in our view will be attracted.

Rasmus Errboe: for the developers, including on the revenue line, As an example, with respect to your question on Revolution, Wind and Sunrise being being conducted, executed as one program, and you asked about the learnings. As an example of that is the installation rate for the turbine. One of the challenges that I also partly alluded to before that we have had, also when we rebased the schedule for the project, was the installation rate for the turbine, where we had to use a U.S. setup with a jack-up and a barge, where you basically sail out one turbine on a barge, the plates and the monopile and so on, and then you install the full turbine with a jack-up vessel.

Ahmed Farman: Conducted, Exituted as one program, and you asked about the learning as an example of that is the installation rate for the turbines.

Ahmed Farman: One of the challenges that I also partly alluded to before that we have had, also when we rebased the schedule.

Ahmed Farman: for the project was the installation rate for the turbine, where we...

where we had to use a U.S. setup.

Ahmed Farman: with a jack-up and a barge where you basically sail out one turbine on a barge, the plates and the monopilot and so on. And then you install the full turbine with a jack-up vessel.

Rasmus Errboe: That is a process that is not one that we would normally go with. So therefore, that's an example where that would be the same approach that we're also going to use for sunrise. So therefore, the learnings in terms of installation rates for the turbines will travel from one project to the other. Specifically, for sunrise, we will have two installation seasons over winter, so therefore also obviously complying with all the pile banding requirements and so on. So that will also mean that the learnings, as an example, on installation rates for the turbine will be important for sunrise, winter as well.

Ahmed Farman: That is a process that is not one that we would normally go with.

Will travel from one project to the other.

Obviously complying with all the pile banding requirements and so on.

Ahmed Farman: So that will also mean that the learnings, as an example, on installation rates for the turbine will be important for Sunrise Wind as well. That's an example of how learnings travel from one project to the other as part of being constructed as one program.

Rasmus Errboe: That's an example of how learnings travel from one project to the other as part of being constructed as one program.

Helene Brondbo: The next follow-up comes from Helene Brondbo with IRB. Please go ahead. Yes, hi, I have... Follow-up here on the recent UK ruling related to the wake effect, and I was wondering how you see that impacting your Hornsea 123 project? Thank you. Thank you, Helene. So, yes, we are, of course, following closely the ruling and also the debate in the UK with respect to WECS. I'm not going to give specific numbers away in terms of implications on projects and so on. I think it is still very, very early days in this regard. And as I also understand sort of the everything that is out there now, the WECS mentions are calculated by independent experts and the estimates are based on assumptions known at the time and so on.

Speaker Change: The next follow-up comes from Alan Brondboe, Derby, please go ahead.

Ellen Broadbore: Follow-up here on the UK ruling related to the wake effect, so now I was wondering how you see that impacting your Hornsea 1-3 projects.

Thank you, thank you, Helene.

Ellen Broadbore: So yes we are of course following closely the ruling and also the debate in the UK with respect to wakes.

Ellen Broadbore: I think it is still very early days in this regard and also understand sort of the everything that is out there now, the wake effects mentions have calculated by independent experts and the estimates are based on

Ellen Broadbore: on assumptions known at the time and so on. So it's not for me as of now to comment on the implications of that ongoing process on our existing projects in the Western Indies of the UK.

Rasmus Errboe: So it's not for me as of now to comment on the implications of that ongoing process on our existing projects in the West and in the East.

Dominic Nash: The next follow-up comes from Dominic Nash in Barking. Hi there, yeah thank you. I think a little while ago we might have talked about the ability and willingness of Orsted to raise debt via SPVs within projects rather than raising it all at balance sheet, a group level. I just wanted to know whether or not you're involved in your sort of debt raising sort of ideas going forward as to whether the SPV route is something that you might consider more of and or implement. In that relation, we are in specific instances or in countries that we see as beneficial.

Speaker Change: The next follow-up comes from Dominic Nash and Barclays. Please go ahead.

Speaker Change: Hi there, yeah, thank you. I think a little while ago we might have talked about the ability in willing this of all steps to raise.

Speaker Change: In your debt raising ideas going forward as to whether a SPV route is something that you might consider more of and or implement. Thank you.

Speaker Change: In not relations, we are in specific instances or countries that we see as beneficial. We are doing that and looking into that.

Rasmus Errboe: We are doing that and looking into that. So in the likes of Taiwan, we have been looking at it due to the fact of both the project themselves, but also the country risk element of it. So, yes, we are looking into that, but more in specific instances.

Speaker Change: So in the likes of Taiwan, we have been looking at it due to the fact of both the projects themselves but also the country risk element of it so yes we are looking into that but more in specific instances.

Thank you for watching!

Deepa Venkateswaran: And our last follow-up comes from Deepa Venkateswaran with Bernstein, please go ahead. Thank you. I think my question is going to be on your Greater Shanghai project. It's 35% complete as of now, but you do still expect COD to happen this year.

Rasmus Errboe, Lene Skole,

Speaker Change: And our last follow-up comes from Deepa Venkateswaran with Burstine, please go ahead.

Speaker Change: Thank you. I think my question is going to be on your British Angle project. It's 35% complete as of now, but you do still expect.

Speaker Change: C.O.D. to happen this year. So this is wondering is that a stretch goal, or is there any risk of this spilling into 26 as you had previously flagged? And maybe you can just explain to us why the Taiwanese project can be constructed so quickly even say compared to other European projects. Thank you.

Deepa Venkateswaran: So just wondering, is that a stretch goal or is there any risk of this spilling into 26 as you had previously flagged? And maybe you can just explain to us why the Taiwanese project can be constructed so quickly, even say compared to other European projects. Thank you. Thank you very much, Deepa. So two questions.

Speaker Change: Thank you very much Deepa, so two questions. I think first of all, on the timeline, you are right, as we have also said, that we expect the COD from this project towards the variant of 2026.

Rasmus Errboe: I think, first of all, on the timeline, you are right, as we have also said, that we expect the COD from this project towards the very end of 2026. And there is a risk, I would say, that a turbine or two could slip into 26. But again, you know, it doesn't really have any implications from a business case perspective because we would obviously get the power as we ramp up the wind farm.

Speaker Change: Five, sorry, and there is a risk, I would say, that a turbine or two could slip into 26.

But, but again, you know, it doesn't really have any…

Speaker Change: Any implications from a business case perspective because we would obviously get the power wise, we reimbop the wind farm so it's a very different situation than for instance a project like Revolution Wind where there is the onshore observation that is on the critical part.

Rasmus Errboe: So it's a very different situation than, for instance, a project like Revolution Wind, where it's the onshore subsurface and that is on the critical part. And then in terms of your comment, which is very right on the construction progress for Chang'e 2, BN4, it is going quite well as of now. We are managing to install both the suction bucket jackets, which it is here, and also the turbines at a pretty good pace, better than we had expected, I might add. But of course, also right now, as an example, we are seeing close to perfect weather conditions in Taiwan as of now.

Speaker Change: And then in terms of your comment, which is very right on the construction progress for Chang'o 2B and 4.

Speaker Change: It is it is going quite well as of as of now

Speaker Change: We are managing to install both the suction bucket jackets which it is here and also the turbines at a pretty good pace.

Speaker Change: Betzer, then we had expected, I might add, but of course also right now as an example we are seeing.

Speaker Change: We are seeing close to perfect weather conditions in Taiwan as of now.

Rasmus Errboe: And that's obviously also one of the uncertainties that we have is, of course, that we don't expect that to just continue. But right now, everything lines up very nicely. And we are, as you rightfully point out, installing at a very good pace on these projects.

and as part of...

Speaker Change: You know everything lines up very nicely and we are as you rightfully point out constructing at a very good installing at a very good pace on these projects.

Operator: Ladies and gentlemen, this was our last question. Back over to the management for any closing All right, thank you all very much for joining. As always, we very much appreciate the interaction and we appreciate the interest. And also, as always, if you have any further questions, please never hesitate to reach out to our IT team, IR team, sorry, who will be here to answer them.

Speaker Change: Ladies and gentlemen, this was our last question, back over to the management for any closing remarks.

Speaker Change: All right, thank you all very much for joining as always. We very much appreciate the interaction and we appreciate the interest and also as always if you have any further questions please.

Speaker Change: Never hesitate to reach out to our ITG, IR team, sorry, who will be here to answer them. Thank you all very much. They safe and have a great day.

Operator: Thank you all very much, stay safe and have a great day.