Good day, and thank you for standing by. Welcome to the Svitzer Q3 2024 Trading Statement. At this time, all participants are in a listen-only mode. After the speaker's presentation, there'll be a question-and-answer session. To ask a question during the session, you will need to press star one and one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one and one again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Kasper Nilaus, CEO of Svitzer. Please go ahead, sir. Thank you very much. So welcome to our Q3 call, and thanks for dialing on, everyone. I am Kasper Nilaus. I'm the CEO of Svitzer, and I'm joined by Knud Winkler, the CFO, and we'll take you through the presentation, and then happy to take any questions you may have in the end. Good. So if we present us, if we start an agenda, I will take you through the business performance. Then Knud will go into detail on the financials, and then, as mentioned, we'll have a Q&A session in the end. So let's jump into it. So the highlights of the quarterly results. So we had a revenue growth of a little more than 9% in constant exchange rate when compared to Q3 2023, and the EBITDA increased by more than 14% in the constant exchange rate, which also led to an increase in the EBITDA margin. We are on track to deliver the financial outlook for 2024 after so far solid performance in 2024. Overall, we are very happy with the result of quarter three. It's a solid performance. We took delivery of our first TRAnsverse tug. We've been talking a little bit about the TRAnsverse tug in previous calls and communication. It's a new design that we have done in Svitzer. We took delivery of the first one. We're currently doing jobs with it in Amsterdam and collecting all the data, but so far it's proving to be as good as we hoped. We also placed an order for another TRAnsverse tug. We'll go a little bit more into it on the next slides, running on battery with a methanol backup engine. We actually also ordered four more TRAnsverse tugs for fleet renewal. So we have quite a few in the order book. On the commercial side, we have so far extended all the contracts that were expiring this year. So all our terminal towage contracts expiring have been extended, and we started a new operation on a five-year contract for a terminal in Brazil. We've got good news also on the commercial front. If we dive a little bit more into our TRAnsverse tug design, then we took delivery, as I mentioned, of the first 26-meter-long TRAnsverse tug. We have put it into Amsterdam, where there are a lot of towage jobs, so we can get a lot of experience with it quickly. The hypothesis was, which was of course backed up by tank testing and modeling and so on, that it will be more efficient, so less fuel consumption, and also able to do towage jobs faster than traditional tug designs. So far, our results confirm it. It seems to be a nice fuel saving on double digits, at least on the fuel consumption. It is as maneuverable and as safe as we hoped it to be. When we have enough data to fully document the performance, then of course we'll be explaining that to a larger audience. As I said, we ordered in the quarter one new tug running on batteries. I think that's the next slide. Batteries, six-megawatt battery package on this tug. It has a backup engine that can run on methanol and also another backup engine that can run on diesel or biofuel. We will deploy it into Gothenburg when it's delivered in 2026. We expect that it can do 90% of its operations on the batteries, so green shore power, and then it will have backup power from the two engines. What this signifies, of course, for us, a significant milestone, also the industry-first battery-methanol tug. And then we've also focused our efforts on decarbonization agenda on the electrification of tug boats. Expect to see more in the future on this front. If we dive down to the regional highlights, Australia, we have seen progress across all regions. Australia, which is our largest region, it's more than a third of our revenue and earnings. We had a good revenue pickup, also significant EBITDA increase led by the contract we've been talking about a few times. New contracts have started up, including the Woodside contract that started up quarter four last year, so full effect in quarter three this year. Also, the contract with BHP, the mining company—what we now have four tugs deployed, still waiting for the fifth one—has full impact here in quarter three. So big impact from the terminal towage segment, also from the harbor towage segment by tariff increases. And then we had a few special jobs that we also did. The volumes were a little bit lower than Q3 2023 in harbor towage, but more than made up for by the revenue increase or the tariff increase. So also a good margin increase. If we look at Europe, Europe is the other big region, a little bit smaller from a contribution size than Australia. Then we also here saw significant revenue increase and a big EBITDA uplift. Again, we had impact from tariff increases. We had the contract in Greece, the terminal towage contract in Greece that had full effect in quarter three and was not in quarter three 2023. There was also a special operation job, a smaller special operation job in Northern Denmark. The activity also improved in harbor towage. Good progress also in Europe. In Americas, we have traditionally seen over the last few years significant growth, and we have a mix of harbor towage and terminal towage, primarily harbor towage. We also saw revenue increase and EBITDA increase, not to the same extent as we have seen in some of the other quarters or the other regions, primarily due to also Q3 last year in Americas being quite strong with a special operation job in Q3 last year. Still strong performance from Americas, still good volumes, and also here we've seen we've also had a special job during the quarter. And then we started up, as I mentioned initially, this new contract for a towage for five years in Brazil. If we look at Asia, Middle East, Africa, it's a region primarily, almost exclusively made up of terminal towage. However, we do have one operation in Morocco that's harbor towage terminals. We saw also revenue increase primarily from the harbor towage operations, of course also from the installations we have in the terminal towage contracts. And then at flat EBITDA, we also saw cost increases in the harbor towage operation in Morocco due to the high volumes. We extended our terminal towage contract in Liberia for a five-year term during quarter three. So I'll hand it over to Knud. Thank you, Kasper, and a welcome from me as well to this webcast. You have all read the Trading Statement, so we're not going to repeat exactly what is in there in terms of the numbers. I'll try to give you a little bit more nuance to the numbers presented. So as Kasper mentioned, during the quarter, we've seen a 9% growth in revenue compared to last year, and the drivers behind that growth, Kasper mentioned, the volume in harbor towage is not growing. It's actually going a little bit backwards. So there's no revenue increase coming from that front. The revenue increase is coming from two other factors. One is the escalations in terminal towage, but even more so the price increases that we are driving through in harbor towage. As we've mentioned a couple of times, we're trying to be a little bit ahead of the curve in terms of adjusting for the inflationary pressure on our cost side, and we have seen that effect also in the third quarter of this year. The other factor driving the growth is the new contracts in terminal towage that have come on stream since Q3 last year. Now we basically have all of our growth projects live for this year. Yeah, and the growth projects that have come on are the ones in Australia and in Greece. If we look at the EBITDA development, then again, we see an overall growth of roughly 13% compared to last year. The volume impact has had a limited negative impact, so we go DKK 4 million backwards. The price increases, as I mentioned, we are pushing forward on that, topping up on CPI. So that gives us an uplift on the EBITDA. We do also see some improvements, Kasper mentioned, improvements on the profitability in Europe. We've talked about the U.K. a couple of times and the challenges that we have there. We are moving forward on the profitability in the U.K. So part of the EBITDA increase from harbor towage is also an improvement in the underlying performance in the U.K. The other big block here is the EBITDA impact from our new terminal towage contracts, the DKK 33 million that we've seen in the quarter since last year. Sorry, we have not included the separation and listing cost in this overview. We have realized a total cost of DKK 22 million in the quarter related to separation and listing. We are continuing to complete the separation and taking over the activities that were previously performed by A.P. Moller - Maersk. And the cost that we incurred related to that is primarily related to establishing systems that were previously running in A.P. Moller - Maersk. If we go to the CapEx side, we see a slowdown on our investments in growth. You will recall that we have over the last couple of years invested significant amounts in growth projects, which has also materialized on the revenue line. We have not won significant projects this year to be invested in, and therefore we do see that the growth CapEx is coming down to a lower level than what we've seen in the past. Also, we're seeing the maintenance CapEx is coming down, the dry dockings. This is much more a reflection of the number of dockings than it is the cost of the dockings. We actually do see an increased cost pressure on the dockings, and this is in essence two factors. One is the OEMs are pushing the prices up on the main equipment, and the other factor is the shortage of availability of yards in certain geographies that allow them to increase the prices more than inflation. So we do see some pressure on that one. So fortunately for this quarter, we have seen less dockings than what we did last year. Yeah, and then there's a small amount on fleet renewal. We've basically only taken delivery of one vessel this quarter, which is the TRAnsverse tug that is now operating in Amsterdam. And there are no further deliveries planned for the rest of the year from the new building pipeline. We have 14 vessels in the pipeline in the order book to be delivered during 2025 and 2026. I think the last one is planned to be delivered in the fourth quarter of 2026. Half of those vessels are dedicated to our growth pipeline. The other half is for now dedicated to fleet renewal. The four TRAnsverse tugs that Kasper mentioned previously, they are labeled for fleet renewal, but we have some flexibility to reallocate them to growth projects should such projects materialize between now and delivery. Then moving on to our financial outlook for the year, we are maintaining the guidance as we have showed previously. We are showing or expecting a growth in revenue of 6%-7.5%, and we've previously said we will end up in the upper range of this, and we'll reiterate it will be top end of the range that we see materializing as we see it now. When we look at the EBITDA, we have given a range of DKK 1,775-DKK 1,875, and as previously said, upper end of the range and reconfirming now it will be top end of the range for that one as well. We need to remind ourselves that the fourth quarter last year was a very strong quarter. I think Kasper mentioned also there were growth projects coming in in the fourth quarter last year, and also we had a few of these rather lucrative special operation jobs that sort of bumped up the numbers in Q4 last year, so it's a very tough comparison that we see in Q4, so the growth will be flattish. The revenue growth will be flattish in Q4 compared to last year. Then again, the separation and listing cost, we have upped that a little bit to now DKK 130 million in the P&L, and we have capitalized DKK 31 million related to the new debt that we have taken on, and that will, of course, be amortized over the period of the term loans. Finally, our gross CapEx, we maintain the guidance of DKK 900 million-DKK 1.1 billion. You can argue so close to the year end, would we not be able to narrow it down a bit? In principle, yes, but there's also always a bit of uncertainty as to the installments on some of the new builds, whether they will fall before or after the new year, depending on the achievement of milestones on the yards. If the yards are super efficient and according to plan, we will see the CapEx probably in the middle or slightly above the middle of the range. If we delay those installments to just after New Year's, we may end up sort of in the lower half of the range. But again, it's a relatively short timing difference between those payments, and they are committed already. Just reiterating what Kasper said from the beginning, it's another quarter with strong financial performance, 9% growth compared to last year on the revenue, an increased EBITDA margin by 0.9 percentage points, and we are on track to deliver on the full year, as I just said on the previous page. We are moving forward with our innovation and putting that into operation with the TRAnsverse tug and also further pursuing our green ambitions by ordering a methanol battery tug that will be built and delivered in 2026. And then finally, I think it's worth repeating that all of the contracts, the terminal towage contracts that have expired this year have been renewed. You will remember from our Capital Markets Day presentation, we had a 94% renewal rate over the past three years, and we've continued to renew those contracts as we see them expire. So I think all in all, it's a strong testament to how we perform the services to our customers. And with that, we would open for Q&A. Thank you. To ask a question, you will need to press star one and one on your telephone. That is star one one to ask a question, and you will wait for your name to be announced. To withdraw your question, please press star one and one again. We will now go to the first question. One moment, please. And your first question comes from the line of Deepak Kale from HSBC. Please go ahead. Hey, hi. This is Deepak Kale from HSBC. Sorry for the name confusion. I had a couple of questions. Firstly, you mentioned that all the contracts which were probably due for renewal have been concluded positively. Is that what you mentioned? Yes, that's correct. Okay, and just a clarification on that: how has been the pricing on these contract renewals? Have they been as per your expectations in terms of passing on the inflation and your expectations of higher charges? Yeah. Well, I think just to make clear, we need to the contract renewals are only the contract where it runs out. So in that case, we had, for example, 20-year contract in the UK. It's closing in on running out. And then, of course, there is a negotiation. We have 20-year-old tugs. Do we extend those, or do they go to tender, or do we bring in new tugs? And for those, we have extended all of them. Some of them, we have given a smaller rebate, and one of them was extended for a few years. We have, you can say, frozen the escalation. But that is only a small part of the contract in the rest of the contract portfolio that every year, most of these contracts every year escalate with cost increases. So just to make clear that there is that difference. Actually, some of the contracts also, when we get to when they expire and we renew them, some of them actually come with an increase in rates because the market has changed. It's just important to distinguish between the ones that actually run out where you have a commercial negotiation, and then the vast majority of the portfolio that you have this mechanical escalation every year. Okay. That's clear. Thank you so much. And the other question which I had was we've just had a new president being elected in the U.S., and there's a lot of chatter about the escalation in trade tensions and potential unwinding of any geopolitical tensions which are happening. We have two conflicts, one in the Middle East and one in the Eastern Europe region. So is there any color you could provide in terms of how it might impact your portfolio of business? I know you do not operate in the U.S. or in China, but in the regions where you operate, is there any positive or negative fallout from these events and potential escalations in trade tensions? Yeah. Thanks. So good question. And yes, you're right. We don't operate in the U.S. We have very, very close to China. So those two countries cannot be affected. We operate in Europe, but we operate in 37 countries around the world. And it's very, very difficult to predict how this will fall out. It's very difficult to predict trade patterns. What we, for example, saw during Corona was for a period of time, you saw trade coming down in Europe, but then trade went up in Brazil and Australia. So it is very difficult to have a view on how it will affect us. Overall, a slowdown in global trade is, of course, not great because we live out of global trade. But I would also say, as we have demonstrated time and time again with the portfolio of operations, we have 140 ports, 40 terminals in 37 countries, different parts of the world. We are very resilient to, you can say, local trade shifts because they tend to go elsewhere, and we have that big exposure. Yeah. I mean, I do understand the advantage of the great diversification which you have. Maybe just for our understanding, because the business is new to us, and at the same time, we do not know much about the history, maybe if you could illustrate with what happened during Trump 1.0 when the tariffs were imposed, did you see any meaningful impact in any part of your portfolio? No, I don't think so. No, no, not to our regulation. Okay. Thank you. That's it from me. I'll fall back in the Q&A. All the best. Thank you. Thank you. As a reminder, if you would like to ask a question, please press star one and one on your telephone keypad, star one and one to ask a question. We will now go to our next question, and your question comes from the line of Anders Pretzmann from Danske Bank. Please go ahead. Yes, thank you for that and hi, Kasper and Knud. Thank you for taking my questions. I also have a few, maybe just going back to the performance on the different geographies. If we could start with Australia, and maybe you have given some flavor on this, but it comes in at quite an impressive EBITDA margin, I think. Are you able to elaborate a bit on this, maybe give some nuance to why that's the case? Yeah, so there is an element of the new contracts coming in. The contract with BHP in Port Hedland comes with a rather high EBITDA margin. That's mostly a variable charter with some ship management to it. So we don't have the same amount of cost related to that contract, but it is just an overall good performance in Australia. It is very much an effect of the price increases that we've pushed through. We see the volume coming back a little bit compared to what it was last year, so it's very much around the price increases and a few cost-saving initiatives that we've run through down there. Okay. Yeah. Thank you for that. And maybe also then the same question to Europe, and you will have also answered this with you guys moving forward on the underlying performance in the U.K. But are there any other things in Europe that might have surprised you? I recall that you were a bit conservative, maybe a bit bearish on the European market when we last spoke. Yeah. I think our expectations to the volume development in Europe has probably been exceeded by a small margin, right? So a little bit more activity in the harbor towage than what we had expected. But it is very much related to the fact that we are getting our arms more and more around the problems in the U.K. They were not completely solved during Q3. There's still a few internal handles that we need to pull that can further improve the performance a little bit in the U.K. But the big ticket item in terms of the overall market adjustment of capacity to demand, that still needs to take place. So we are obviously working on our side, matching demand and the capacity in the port where we're in. But there's still some, you can say, structural alignment in the market that needs to take place before we can get the right utilization and the right pricing in the U.K. to be at the level we want to be. For the rest of Europe, Scandinavia, and continental Europe, things are moving forward quite satisfactorily. Okay. Yeah. Thank you for that. And in the report, you also mentioned the volume decline of 2% overall. Can you maybe give us some nuance on what you expect for Q4, and what are you looking into there? So for Q4, yeah, we see a rather flat development on the volume side. There is this impact in Australia. There's a couple of things that come into play in Australia. Now, there was a question a minute ago around the geopolitical situation. And just to sort of give a slight peek into the uncertainties of what that means, the Red Sea crisis obviously led to less activity in the Red Sea and in the Suez Canal. We're on time charter there, so that's not a big issue for us as such. But it has come with a significant uplift in the activities in our port in Morocco because basically all of the volume going into Northern Europe and into the Mediterranean, they will come through either Morocco or Algeciras. So there's been an uplift in the activity there. What we also see is that the East-West trade then absorbed capacity, right, for example, on containers. And that capacity, at least based on the feedback we get from our customers, is that that is being taken out of the Australia trade. So there's less vessels calling Australia than what we've seen in the past years. A significant part of the decline in the volume that comes from container trade in Australia. The other thing that comes into play in Australia is the grain harvest, which was a record year in 2023. And we don't see that coming again this year. The grain harvest seems to be much more of a normal level this year. So there's a bit of a negative impact from that in a few of the southern ports in Australia. So it's a mix of a couple of different things, right? As I said, the geopolitical part is quite unpredictable. Whatever Mr. Trump is going to do, I think that can have derived impacts in sort of a few different levels. And of course, not in the fourth quarter, right, but going into 2025. But fourth quarter, it is primarily the Australia thing, container and grain. Okay. Thank you for that. That was very helpful. And then maybe my final question then, and just going back to the guidance for 2024, I mean, you reiterate the guidance, but yet you state that you expect to end up at the top end of the range. I mean, why not just adjust it upwards on the bottom end? Is there any factor that could determine that you would end up in the lower end of the range? I mean, it seems very conservative. No, I think you can basically choose between narrowing the range or just stating that it will be top end of the range. I don't think that it should not be taken as there is a risk that we will end up in the lower end of the range that we simply do not see. We're quite confident it will be top end of the range. That was very clear. Thank you for that. That was my questions. Thank you. We will now take the next question. And your next question comes from the line of Ulrik Bak from SEB. Please go ahead. Yes. Hello, Kasper, Knud. Thank you for taking my questions. So my first one is also on the guidance because you deliver quite a strong Q3 report, and again, you keep your guidance unchanged. And you already covered the revenue growth deceleration and the drivers for that. But the implied adjusted EBITDA for Q4 also seems quite conservative in my view, as it implies the top end of your guidance range implies that it will be flat quarter over quarter. And I have previously understood that Q4 should be a seasonally stronger quarter than Q3. So please add some flavor on why it should be flat quarter over quarter on EBITDA as well. Thank you. Yeah. So I think I'll just repeat my statement from a couple of minutes ago. The Q4 in 2023 was a very strong quarter, both in terms of the revenue, but also in terms of the profitability. And compared to that, we do believe it's going to be a flat development year on year. Yes. But my question was mainly on sequential basis because you previously stated that Q3 is a seasonal low, whereas Q4 is more seasonal high. So why should you earn more on EBITDA in Q4 versus Q3? I think it's a very good question. I think what we have seen in Q3 this year is stronger performance than we initially expected of Q3 this year. We've also seen we had a few special operations jobs in Q3, both in Brazil and Australia. And still, there's impact. So we have yes, I hear what you're saying, but we already had, you can say, some of the effects we're normally seeing in Q4, we've already seen some of that in Q3. Okay. That's clear. And then a question on this dynamic between the tariff increases that you impose and then how the timing of your OpEx increases because it seems you also noted that you're trying to increase or stay, yeah, ahead of the curve in terms of cost inflation. But revenue per towage job went up 10% year over year in Q3. And we don't have the OpEx per towage job for Q3, but for the first half of the year, it increased 6%. So is there an element that there will be a catch-up effect from this OpEx per towage job growth over the coming quarters so it will sort of catch up with the revenue per towage job increases? Or will you then also, over the coming quarters, increase this revenue per towage job even further so you will keep being ahead of the curve, so to say? Or is there a risk that you will essentially dilute your margins as we walk along? I think we will continue to be ahead of the curve. As you say, 10% increase on the revenue per towage job, 6% on OpEx. It's not unlikely that there will be some catch-up on the OpEx, but not up to the 10%, right? So we do believe for the full year, we will see a better development on the revenue, on the towage job revenue than on the OpEx. So margin expansion, basically, right? Okay. That's clear. And just to get a feeling of these price escalations that you are currently adding to your contracts, we have seen inflation rates decline over the past several quarters. But on the other hand, you mentioned bunker prices have increased. So what on balance, what kind of increases are you adding to your current contracts? So if you look at the tariff increase in harbor towage Europe, that's primarily 1st of January. We implement those. In Australia, it's primarily 1st of April we implement the tariff increases. So the new tariff increases. So when we do that in harbor towage, we take a broad view of, you can say, the world around us. How has inflation developed the last 12 months? How do we expect it to continue to develop? What are the agreements we're having with our crews for salary increases? And what do we see in our own experience for, for example, something like spare parts that don't always correlate with normal inflationary indices? So we're working on the tariff increases in Europe that takes place 1st of January. Although inflation has come down, and of course, we don't expect we will not continue increasing rate per charged job 10%, but we do expect that we will see tariff increases again and also hopefully a little bit above, at least the headline inflation. Okay. That's very clear. And then just a bookkeeping question on these key merger costs. You mentioned that there are some costs related to system implementation for these services previously covered by Maersk. What is the status of this project, and will there be more costs related to this over the coming quarters and perhaps into 2025? There's a smaller amount that will materialize in Q4, but we are not planning to see any separation cost beyond the 31st of December. Okay. So the separation yeah, the adjustment for separation listing cost, we'll see that in 2024 only. There will be nothing in 2025. That's very clear. And then this deal cost of DKK 31 million, which will be recognized on your balance sheet, are these costs related to the system implementation which you mentioned? And also, how will these expenses flow through your financial accounts? Yeah. So this is the bank fees that we realize in connection with establishing the new loans, replacing the funding from A.P. Moller - Maersk. And it's simple accounting. You have to capitalize those fees and amortize them over the period of the loan, right? So the DKK 31 million that we capitalize will be amortized over the five years, the term of the loan, right? And it will come out in financial items, right? Yep. That makes sense. Thank you. Once again, if you would like to ask a question, please press star one and one on your telephone keypad. That is star one and one if you would like to ask a question. There are currently no further questions. I will hand the call back to Kasper for closing remarks. Thank you very much. So thanks a lot for listening in to the call. Thanks for the good questions. As I mentioned, we are very satisfied with our quarter three results. We have solid financial performance. I think we're in good shape. We've extended the contracts that were expiring, investing in growth thrusts, but also fleet renewal thrusts, and also moving ahead on this TRAnsverse concept that we believe will be a benefit to us in the future. So overall, good progress, and yeah, looking forward to closing the year also well. Thanks a lot. Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.