Good morning, and welcome to our first quarter 2026 webcast for Reach Subsea ASA. Our report and presentation were released this morning, and I am Jostein Alendal, CEO, and I'm here with our CFO, Arne Joa?]

. Our utilization has continued to lag behind our ambitions this quarter, and revenue remains far below our expectations.

Arne will give more details and cover our financials in a bit. At the same time, we are continue to make progress in the introduction and deployment of new technology as the Reach Remote program continues its commercial rollout.

I will return to what that means for our strategy and long-term development shortly. Please submit questions via the webcast player.

We will address them in the Q&A session after the presentation. Our first quarter results are below target and not satisfactory.

Lower vessel utilization remains the main driver this quarter. This can be explained by the market fluctuations we are experiencing, but project startup dynamics have also influenced activity level in the quarter.

While we are seeing early operational improvements with all vessels now in operations, these do not have a material impact on the first quarter results. We are actively working to improve utilization across the fleet through tighter capacity planning, asset positioning, and closer alignment with market demand.

Additionally, we experience some events during the quarter that affected the economic performance of both Reach Remote 2 in Australia and Reach Remote 1 in Norway. In parallel, we are actively progressing the large scale-up of Reach Remote, building on a validated model and preparing the organization, assets, and operating structure for the next phase.

Also fresh from yesterday, we were awarded a landmark 2+1 year IMR and light construction letter of intent, which, once finalized, will substantially increase our order book and add a layer of financial predictability. With that backdrop, let's look at the long-term picture and how we are positioned for change.

Looking at our vessel fleet as a whole for the period up to 2030, it provides a high degree of flexibility through a combination of owned vessels and charter arrangements with different durations and options. As Viking Reach and Newbuild 76 join the fleet at a later stage, we will have clear choices to either extend the fleet and add capacity or to replace older vessels with more modern and capable tonnage.

Looking a year ahead, the fleet composition may therefore change, reflecting market developments, utilization, and where we see the strongest opportunities. Yesterday, as mentioned, we signed a letter of intent for 2+1 year IMR arrangement, which will add Normand Jarlstein to our project charter fleet.

Our order book continues to provide short-term visibility, lower than the previous first quarter, but still acceptable when taking market fluctuations into account. However, the order book will increase substantially once the LOI is converted to a firm contract.

Tender activity remains strong, with an increasing share of tenders requesting USV capabilities. Reach Remote vessels 3 and 4 are scheduled for delivery in 2027, providing same flexibility to support either fleet growth or replacement of older manned tonnage.

Further Reach Remote units entering the fleet will support a gradual transition towards unmanned marine operations and marine robotics as we move towards 2030. We have developed Reach Remote and our technology offering in close connection with our conventional subsea operations.

Our operational experience has been essential in developing and introducing new technology in a safe, practical, and commercially relevant way. Deep offshore and subsea competence has enabled us to deploy solutions like Reach Remote in real operating environments.

At the same time, the technology and remote capabilities developed through Reach Remote have strengthened and enhanced our conventional operations. This integrated approach has been deliberate and necessary to validate the Reach Remote model operationally and commercially.

We are now at a point where the Reach Remote model has been validated and the opportunity to scale is clearly in front of us. As we move into the next phase, further separating these tracks is the natural next step, allowing both the conventional business and the Reach Remote model to develop, scale, and perform at their full potential.

Scaling Reach Remote is important to achieve economics of scale and build entry barriers, where fixed costs are distributed across a larger operational base, improving unit economics, resilience, and long-term profitability. With that context, let's take a closer look at what it delivers today and how we see it evolving going forward.

The Reach Remote journey started in 2019 as an idea to transform subsea operations through remote and uncrewed solutions, built on our conventional offshore experience. From the beginning, technology development and operations have gone hand in hand, with practical subsea know-how as the foundation.

In parallel, we developed Reach Horizon as the digital backbone, enabling remote situational awareness, decision support, and scalable operations. Through 2025, we took delivery of the Reach Remote vessels and validated the model through pilots and commercial operations.

During this period, the program achieved regulatory acceptance, and the vessels are now approved for remote operations in Norway, Australia, and most recently, the UK. We will actually this summer be the first in the world to operate an unmanned vessel from Norway in UK waters.

Also during the last quarter, we have achieved an important milestone by operating within the 500-meter safety zones both in Norway and Australia, demonstrating safe and compliant remote operations in close proximity to offshore installations. With the model now validated technically, operationally, and commercially, we are at a clear point where scaling is the next step.

Reach Remote 3 and 4 are progressing well, and we are now planning for the next phases of large-scale deployment. Over the last year, we have built substantial real-world operational experience with the Reach Remote 1 and 2.

In total, this now represents more than 600 remote operational days. This experience has been critical.

It has allowed us to test, learn, and refine how remote and uncrewed operations actually work in practice, not in simulations, but in live projects. We have strengthened procedures, improved system robustness, trained the teams, and matured the interaction between the vessels and our onshore operation centers.

Much of this value is not yet reflected in the financial results. The past year has been about learning, validation, and building operational depth, while carrying startup costs, inefficiencies, and disruptions that naturally follow the introduction of new technology and operating models.

What we now have goes beyond a single quarter's performance: a proven operating model, experienced teams, validated systems, and regulatory approved operations. This operational experience reduces risk, improves predictability, and lowers execution uncertainty as we move into the next phase.

As scaling accelerates, the learning from these 600+ operational days becomes a structural advantage. This is where we expect the value to increasingly translate into financial performance.

During the quarter, we were awarded new contracts by Equinor, and Reach Remote 2 has continued to operate for Woodside in Australia, reinforcing client confidence in the solution. Based on awarded work and ongoing deployments, we are now seeing strong utilization for Reach Remote extending into the coming quarters.

In summary, while first quarter results were impacted by specific events, Reach Remote 1 and 2 continue to demonstrate clear commercial relevance, and the activity level we are seeing going forward supports our scaling ambitions. This is not only about learning across teams, organizations, and people, but also about learning embedded in software, the digital backbone of the solution, represented by Reach Horizon.

Reach Horizon is key enabler for the Reach Remote model and a critical part of how remote operations are planned, monitored, and executed. From the beginning, Horizon was developed as the digital backbone, connecting vessels, sensors, workflows, and onshore operation centers into one integrated operating environment.

With the recent launch of Reach Horizon version 2, the platform has taken an important step forward. Horizon version 2 strengthens real-time situational awareness, decision support, and data integration, while improving usability and scalability across operations.

While Horizon is an essential component for Reach Remote 1 and 2, its value extends well beyond individual vessels. The platform is designed to support remote operations as a whole, enabling consistent execution across different assets, projects, and geographies.

This means Horizon is not only supporting uncrewed vessels, but also enhancing how traditional subsea operations are monitored, controlled, and optimized. As remote and digital operating models become more prevalent in the subsea industry, we see Reach Horizon as a scalable platform that supports safer operations, better decision-making, and improved operational efficiency.

In that sense, Reach Horizon is not just a system supporting today's Reach Remote vessels; it is a core capability for the future of remote and autonomous subsea operations. Reach Remote is now a proven and established operating model ready to move from validation to scale.

The combination of operational experience, regulatory approvals, mature technology, and capable teams provides a strong and robust foundation. With vessels in operation, Horizon version 2 in place, and the next units progressing, the remaining task is execution at scale.

The priority ahead is therefore to convert a validated model into higher utilization, improved predictability, and sustainable financial performance. Reach Remote has now matured into a proven and scalable solution, and with that foundation in place, we are taking the next step by organizing how the full Reach Remote model will be established as a standalone company.

The rationale is clear: by separating the model, we create a structure that better supports scale, allowing fixed costs to be absorbed across a larger operational base and strengthening unit economics and enabling broader market adoption. The new entity will operate as a dedicated technology company, offering an integrated service combining large-scale marine and subsea robotic operations and the Reach Horizon digital platform.

Together, these elements form a unified remote and digital subsea service model. Taken together, this positions Reach for scalable growth in unmanned operations, robotics as a service, and digital subsea solutions towards 2030.

With this, I will hand the word over to Arne, who will take us through our financials.

Good morning, and thank you for joining Reach Subsea's first quarter 2026 webcast. I will take you through the financial performance for the quarter before we move on to capital structure and liquidity.

As shown on the highlights slide, first quarter 2026 was weaker than the same period last year. Revenue for the quarter was NOK 551.4 million compared to 698.7 million in the first quarter in 2025.

The decline reflects lower utilization across the fleet, combined with unfavorable currency movements, higher depreciation, and compressed project margins. EBIT for the quarter was NOK -192.1 million compared to NOK 68.2 million in the first quarter last year.

The negative year-on-year development is primarily driven by lower activity levels in the oil and gas segment, together with a largely fixed cost base as well as higher depreciation related to IFRS 16 assets and the two Reach Remote vessels. Profit after tax amounted to NOK -191.2 million compared to NOK 54 million in the first quarter last year.

Turning to the EBIT bridge from the first quarter last year to the first quarter in 2026, the decline in profitability is mainly explained by two factors. First, utilization and project mix: lower vessel days and a less favorable mix led to a significant negative contribution versus last year.

Second, depreciation and foreign exchange: higher depreciation from new assets and adverse currency movements further weighed on EBIT year-on-year. Looking at the revenue mix, oil and gas revenues declined significantly compared to the same period last year.

This reflects a more cautious client environment during the quarter, coinciding with a period of weaker oil prices. At the same time, renewables and other now represent the largest sector by revenue, marking an important milestone in our portfolio transition and underlining the growing importance of non-oil and gas activity in the business.

Geographically, we continue to see a broad and diversified revenue base, with solid contributions from Europe, the Americas, and other international markets, reducing reliance on any single region. Overall, while activity levels were lower in the quarter, the revenue profile underlines the increasing diversification and resilience of the business, supported by a broader sector mix and expanding international footprint.

Equity as of 31st March 2026 was NOK 1,031.8 million, corresponding to an equity ratio of 31.6% compared to 39.8% in the same period last year. The reduction is primarily explained by the negative result in the quarter.

Cash and net working capital are lower versus peak levels, but at a slightly higher level than the same quarter last year. The capital structure remains solid and provides the flexibility required to support both ongoing operations and continued development of Reach Remote.

With that, I will hand back to Jostein before we move to Q&A.

Thank you, Arne. To summarize, our first quarter results were far below our ambitions, primarily driven by lower vessel utilization and market-related timing effects.

While market fluctuations explain part of this, we are also addressing what we can control through tighter capacity planning, improved asset positioning, and closer alignment with market demand. Importantly, we continue to see operational improvements across the fleet, with all vessels in operations.

At the same time, we are making clear strategic progress. Yesterday, we were awarded a landmark 2+1 year IMR letter of intent, and once finalized, this will add long-term backlog and represent an important milestone for Reach.

This agreement adds a layer of financial predictability that we have not had before and strengthen visibility beyond the typical short-term order book. In parallel, we are now organizing how the full Reach Remote model will be separated into its own standalone company.

With more than 600 remote operational days, regulatory approvals across key markets, and growing client confidence, we are moving from validation into a true scaling phase. Our flexible fleet structure, strong tender activity, and increasing demand for unmanned and USV capabilities support this transition.

Scaling Reach Remote is key to achieving economies of scale, improving unit economics, and building sustainable entry barriers over time. Taken together, while short-term performance remains affected by market dynamics, the combination of new long-term visibility, a flexible fleet, and a proven technology platform positions Reach well for the next phase.

We are progressing towards a structural transition into unmanned operations, robotics as a service, and digital subsea solutions as we move towards 2030. With this, I will round off the presentation.

Please submit your questions through the webcast player, and we will be back soon to answer them.

Hello, everyone. Thank you for joining our webcast and Q&A sessions.

We have quite a few questions coming in, are you ready, Jostein?

Ja da, Arne. I'm ready.

That's good. The first question is about our tender pipeline being stable for several quarters at NOK 10 billion.

The question is: what is the conversion rate we are experiencing, and is the pipeline generally replenishing at the same rate it is converting, or is the headline number masking a longer decision timeline for our clients? Yeah.

I think the conversion rate has been around 10 10 15% over the past years. We are working on improving that conversion rate, of course, and yeah, correct, some decisions are taking longer time.

For the past year, I can say. Conversion rate is what we have been used to that 10 to 15%, but I think it will improve in the coming years.

Yeah.

Yeah. Thank you.

There are a couple of questions the letter of intent. Can you provide some additional color on how much the backlog may increase if the LOI on Normand Jarlstein is firmed up?

When it's firmed, yeah, it's going to be significant, of course. It's a 2-year 2-year plus 1-year contract, so, of course, that's big numbers.

We will come back to that when it's firmed up. Hopefully, the vessel is on its way, the guys are working on firming up the paperwork this week,

so. Yeah.

We will come back to that, as we said in the announcement of the LOI, so.

Very good. There's another related question: Will it be Reach ROV or Solstad Omega ROV on board Normand Jarlstein?

Oh, that will be the Omega ROVs. We're going to work together with Omega and Solstad on this.

That's been very good cooperation and everything, want to deliver to the clients a really good services and product. Very impressed with both the vessel and the Omega setup on board.

This is looking good.

Good. The standalone Reach Remote entity, can you describe the intended corporate structure, whether it would be wholly owned, separately listed, or open to external capital, and the potential timeline for completion of the separation?

You can add some color.

I could add some color. Yes, we have seen a big interest from both industrial and financial partners and so on.

It's, of course, when you spin off something and build something, and the speed of the scale-up, of course, it's open for partners and so on. We will soon come with more firm news on that.

We are working on in '26, but maybe a bit sooner because the speed is there, so. Yes, we have the partnerships and so on, yeah.

For the coming 2, 3 months, I guess there will be some news around that as well, so.

Very good. There's a question about our net interest-bearing debt at NOK 1.39 million and the equity ratio and how we're going to protect the balance sheet going forward with Viking Reach and Aglaia 2 coming in.

I can say that we have flexibility in our fleet with options, and we're looking at the total picture. Of course, having a healthy balance sheet and good headroom to the covenants, that's a key priority.

There's another question about unmanned surface and subsea vehicles are seeing surging demand from NATO navies for tasks like mine countermeasures, hydrographic survey, and critical infrastructure protection. Has Reach received inbound interest from defense or government clients, and is the Reach Remote platform designed or certifiable for dual-use applications?

Would you consider pursuing defense contracts, or does that create reputational or operational complexity you prefer to avoid? Long question.

That was a long question, Arne. The thing is that yes, we have shown the whole concept to different defense sectors, both national and international.

The platform is very well suited for the unarmed side of defense. Yes, we are moving in the right direction there as well because that's the next after the oil and gas and the asset owners and so on.

The next client group will be the unarmed side of the defense side. Yes, certified in that area as well, so.

Thank you. Another question about a specific market, and that's: The global subsea cable market is experiencing significant investments, driven by hyperscalers, with growing demand for cable survey, burial monitoring, and repair inspection.

Is this a sector you are actively targeting, and how does your technology differentiate versus specialist cable operators?

I think that our services is also targeted into any infrastructure. Cables are, of course, and has been a big part of our market on the pre-installation mapping and so on, and also the inspection of cables.

As we have shown with the Reach Remote during the winter where we inspected cables for Statnett in the Norwegian fjords and so on. Any asset, subsea asset and offshore asset, is a market for us.

Either oil and gas or cables or any other infrastructure, so.

Good. There is a question about further scaling and building of Reach Remote 5 and 6, if you think it could occur given the outlook you have for the IMR and subsea market.

There will be some decisions on the big scale-up. Of course, the target there is more than 5 and 6, it's up to 30 30 units within 2034.

We are looking at the number of units we can deploy within the next 8 to 10 years. We see the market is sort of accelerating, so as soon as the certifications and everything is also speeding up.

Lately, we saw we are allowed to also operate in UK. That's something really new.

That will be the first time in history that we operate a Norwegian-flagged vessel, unmanned vessel, from Norway into UK waters. You see that this is accelerating, and so the market adoption is there together with the certifications and regulatory bodies around the world.

It's going to be fun to break those barriers. As we have done that the past 12 months, we have broken a lot of barriers.

Yeah.

Yes. Good.

There are a couple of questions again related to Reach Remote standalone, you have partly answered already, but I think we can repeat it since it is of importance. It's about the separation of the Remote business, if it implies a standalone listing of the entity, and then also the timing on the separation of the Reach Remote business.

The timing is actually now, and as I said, for the next 2, 3 months, there will be a lot of movement there. A question about listing, is not firmed or it's a way to go.

Yeah.

Yeah. I think that has been well covered now.

A question about the recent surge in the oil price and the closing of the Hormuz Strait, if it has any effect on the current demand for the services that we deliver, Jostein?

The day-to-day services we provide to the asset owners around the world follows, of course, the oil We saw maybe the $60 starting in '26, now we see something else. The world is changing rapidly, and the behavior of our clients influenced by the oil price and so on.

There is a long cycle ahead of us with more investments and so the number of assets offshore and subsea will increase for the next years and decades, I guess.

Yes. There's a question about the dividend.

We had some new messaging there. The question is: do you expect to be able to pay out the NOK 0.17 per share dividend that the board approved this year, or will it have to wait until 2027?

I think the correct answer there, Jostein, is that it will be paid out when the board considers that we are in a position to do so, it will be dependent on the numbers that we are delivering in the next few quarters.

We have to deliver there, Arne, you're on the money side, so.

Yes. Yes, was a follow-up question to the Solstad and ROV, since it's Omega, a question about the Reach scope in this contract.

We are the contract holder, and also there are additional services on top of the vessel itself. Also we are providing a lot of other services to clients besides of pure IMR and light construction services.

Also we have our monitoring services and so on for asset owners, gas fields, and so on. It's going to be exciting to offer our clients there a lot of additional services and so on.

It's not just pure ROV services, it's a lot more.

Yes. It's also a follow-up question to the backlog question about conversion rate where you said, Jostein, you expected it to probably improve slightly, the conversion rate.

The question is: why, or is the competition going to be lower?

I don't think the competition is going to be lower. It's just we have to be better than our competitors.

That's the game, I guess.

Yes. There is a question about historically, what is the typical lag between a sustained move in the oil price above $80 to $100 and a visible uplift in our tender conversion and project startup activity?

Are we taking multiple quarters given budget cycle and permitting dynamics? Or, yes, you've been in the business for quite a few years, Jostein, historically, what have you seen when you have seen a sustained move in the oil price?

How long does it take before it starts showing up

in I tried to analyze our clients' behavior for almost 30 years, and I don't know if I'm wiser now then. It's hard to predict.

There are some big signs. If they see, yeah, predicted oil price down, they behave, and then it takes maybe a slow movers.

It's hard to predict. The world is quicker now than sort of 20 years ago.

The conversion from a movement in the world to reaction is a bit shorter now than 10 years ago. I try to analyze this for years, but it's hard to predict our clients' behavior.

That's the

Yeah. Good.

There is an interesting question here about the remote market. If it is accelerating, why don't we fill up the backlog on Remote 1 and 2 for the next 3 to 4 years?

That's back to the same clients then, and the slow sort of adaption. What we have seen for the past 12 months, the adaption has accelerated.

I guess when we go into 2027, there will be actually more demand, and also they will be backed, to speak, because we have to prove that it's a proven concept. Then, as soon as we have done that, they're sort of willing to take it into use and so on.

We are there that now we have proven and yeah, continue through 2026. Then we will see a different world in a period from 2027 to 2030, '34, '35, so.

Yeah. Good.

There is another related question, slightly different angle: Given the weaker results from this quarter and the past year, do you plan to put more resources into sales and market capitalization, extending Reach Subsea into many new markets going forward, or is the separation of Reach Remote concept a reflection of this?

Of course, we are looking into everything to improve the day-to-day work, of course. Arne, there is a fine line between genius and idiots, and we might look like idiots for a short time here, but that's just for a short time.

We have to improve both sales and also performance on our day job. The robotics side of it, that's the sort of the long-term future.

That's what we are building the foundation for now.

Yes.

As I said, in just a time we build the robotic of subsea and marine operations, so. Of course, we have to improve both selling and performance and so on.

We missed during the past 6 months, we missed sort of how is our clients behaving and so on. There are too many vessels laid up, and that's a bad thing.

We should be better on that. Learning on that and going forward and pushing the limits.

One time here, Arne, so.

Yes. Another question slightly related to the oil and gas question, or the increase in oil and gas prices.

The presentation stated that revenue from renewables actually recently exceeded oil and gas. Given recent Middle East events, are there indications oil and gas will bounce, thereby increasing the overall revenue?

For us, isolated, we missed the oil and gas clients over the winter. In the big picture, there is, well, you see the backlog from the big companies and so on, there's an increase in activity in the subsea oil and gas world.

It's just up to us to be there and improve our sort of services into the oil and gas clients then, it's

Yes. Good.

I think we have the final question. It's related to Olympic Taurus and the original lease expiring in April 2026, if it have been extended.

On

Taurus, Olympic Taurus.

Yes. The Taurus will be with us through 2026,

so. Yep.

Yep. Okay.

I think we have covered all the questions that came into the Q&A. Thanks a lot for many good questions and for participating.

Yep. Hope we gave a honest picture, so.

See you in August.