0.038 - 14.161 Good morning everyone and welcome to this third quarter presentation for Vow. 14.285 - 28.536 For technical issues with the network in the auditorium, we had to do a last-minute move into this conference room.

It's a bit packed in here, but we certainly hope everything is working out to your satisfaction, 28.729 - 31.986 and that everyone is receiving this webcast. 33.722 - 45.452 Today I have Cecilie Hekneby with me, our CFO, to do the presentation of the financials.

My name is Gunnar Pedersen. I'm the CEO of Vow.

46.417 - 48.919 I'm going to share with you some highlights first. 49.529 - 58.749 Cecilie will take you through the financials.

I'll come back with the market and business update, before we go into summary and outlook, and finally open up for questions. 59.789 - 61.919 Starting off with the Q3.

62.339 - 70.366 Q3 was a very busy quarter across the whole company, especially in Maritime Solutions, where we had record-high revenues. 71.558 - 81.332 We also continued our structured assessment of the company.

In Q3 specifically, we did some deep dive into the big industrial projects. 82.951 - 100.869 What we found was that there was two big projects that had underestimated cost to completion, which has impacted the margins and also leading to reversal of revenue.

101.401 - 110.150 Cecilie will take you through the details of that. Also, it's been published in a notice earlier on in October.

111.455 - 124.975 In the Maritime Solutions segment, we've had record-high revenue and also very positive development on the margins, 125.688 - 128.618 perhaps a bit on the very high side, 129.231 - 131.066 compared to what you normally should expect. 131.979 - 136.230 This is due to a reduced share of legacy contracts, 136.782 - 149.610 but also the project mix.

A lot of equipment deliveries, different types of equipment have different margins, and this quarter has been very favorable in terms of the mix. 150.781 - 159.206 The Aftersales segment continues its positive development, improving margins, whereas the volumes is about the same as the third quarter last year.

159.986 - 163.630 Year to date, however, is a good growth on Aftersales. 164.887 - 173.238 Our Industrial segment has been facing challenges in term of underestimated cost of completion, as mentioned.

174.453 - 188.825 On a high note, what we've formally talked about as the large reactor from E&S, and that was finally delivered to Follum last week. 189.658 - 191.802 We are very pleased with that.

192.368 - 206.529 Some questions have come across on this. It doesn't have a big impact on the revenue, but it does have a very positive effect on the cash flow, as it triggers some payment milestones.

208.066 - 213.914 Liquidity has improved significantly with very good inflows. 214.394 - 219.066 Also, we've been able to settle outstanding payments to our vendors.

220.199 - 227.159 Also, it's worth noticing that the covenants were waived for Q3. 228.375 - 243.689 Our total order backlog stands at 1,449 million Norwegian, with another 134 million Norwegian in options.

These provide us with a very good visibility into the future. 244.973 - 253.111 Order intake as of end third quarter is 1,082 million.

254.856 - 260.672 I should perhaps mention that the delivery of the reactor was subsequent to the quarter. 261.764 - 273.743 By that, I think I can leave you with Cecilie to do the financials, and I'll come back for the market update.

Cecilie? 276.711 - 289.470 Good morning.

I will give you an update on the financial numbers. This is just an executive summary that actually summarizes what Gunnar just said.

291.602 - 308.243 Before I start with the walkthrough of the financial numbers, I would like to address the notification published in October and the specific events that led to the announcement. 308.976 - 322.012 As explained in the stock market announcement, a review of the two major Circular Solution projects revealed that total cost to completion next year had been underestimated.

322.680 - 331.848 The reduced project margins and technical reporting of progress of cost led to a reversal of revenue in the quarter. 332.684 - 346.540 The two projects constitute a major part in the Industrial Solutions segment, and the preliminary consolidated numbers for the group indicated a lower than expected EBITDA for the quarter.

347.164 - 359.882 This was still at an early eight stage in our preparation for the third quarter reporting, but we consider this as inside information that could not be delayed, and issued a trading update. 360.597 - 370.472 Phase 1 of Follum and Rhode Island represent significant milestones for our pyrolysis technology, 370.939 - 382.355 and an SVP program director was appointed at the end of September to strengthen coordination, execution, and financial control for the projects, 382.689 - 384.863 reporting directly to Gunnar.

385.670 - 396.969 He and his team then performed a thorough review of the remaining scope, risks, and handover requirements and found that total cost to completion was underestimated. 397.669 - 407.495 As a result of this reassessment, a one-time cost increase was recognized in the Q3.

408.384 - 411.758 How does this impact revenue? 412.388 - 422.385 Revenue from projects is recognized based on estimated total gross margin for the project according to technical reporting of progress.

422.951 - 431.139 The contracts for these two projects are predominantly fixed price with limited flexibility for price adjustments. 431.905 - 444.606 The updated cost estimates therefore led to a reduction in total gross margin, and hence a reversal of previously recognized revenues, but with no cash effect.

445.696 - 457.653 Circular Solutions is a key area within the Industrial Solutions segment, delivering to the industrial-scale pyrolysis market, which is still maturing. 458.558 - 468.910 With these two projects now entering the final stage, we expect increased cost visibility and tighter cost management going forward.

470.198 - 480.893 We aim to be transparent in our reporting, but I understand that it may be challenging to follow the financial development for the last quarters. 481.564 - 501.996 Vow has been in a challenging financial position, and since I started in May, my team and I have worked diligently to secure consistent and precise reporting, to get control, and provide insight.

503.743 - 515.658 This slide sums up what I just have explained, and I will now go through the numbers for the quarter, starting with the key financial for the group. 516.315 - 519.865 The reporting currency is in Norwegian kroner.

520.894 - 530.134 Reported revenue for the quarter was 214 million, compared to 267 million 1 year earlier. 530.822 - 544.757 On the graph on the left-hand side, you can see -6 in revenue for the Industrial Solutions segment following the reversal of revenue and soft performance in the remainder of the segment, 545.297 - 551.499 but high revenues in the Maritime Solution segment and steady numbers in Aftersales.

552.428 - 564.912 Moving on to the graph in the middle, we have adjusted EBITDA of negative 29 million, heavily impacted by the financial performance in Industrial Solutions segment. 565.688 - 572.766 The order backlog of 1.4 billion remains strong and gives good visibility.

574.654 - 586.697 Total revenue was 214 million, down 53 million from Q3 '24, heavily impacted by the Industrial Solutions segment. 587.359 - 598.674 Revenue in the Maritime Solutions segment of 166 million is all-time high following progress on large newbuilding contracts 599.071 - 601.764 and up 73 million from last year.

602.836 - 609.957 The year-to-date numbers for Maritime Solutions are impacted by the catch-up effect in Q2. 610.963 - 618.318 Aftersales make a solid contribution with 54 million in the quarter.

618.736 - 624.770 This is up 3% from 3rd third quarter last year, but up 11% year to date. 625.688 - 639.117 Revenue in the Industrial Solutions segment is down 128 million from Q3 last year and 136 million from year to date, 639.387 - 645.748 following the cost updates and reduced margins for the two projects, 646.069 - 651.988 in addition to then soft performance in the remainder of the segment.

653.056 - 661.764 Moving over to the operational key figures for the quarter, revenue is, as explained, 661.764 - 672.391 heavily impacted by the updated cost to completion estimates that overshadowed the strong performance in the Maritime Solutions and Aftersales segments. 673.308 - 679.914 I would like to highlight the development of gross profit and employee expenses.

680.598 - 690.627 Being a project organization, employee hours linked to specific projects are attributed to the cost of goods sold. 691.312 - 698.810 The group has during the year improved its time tracking and hourly rate precision.

699.278 - 714.288 With a more accurate attribution of employee hours to specific projects, a larger share of personnel cost is now currently classified under COGS as recovery hours. 715.176 - 726.967 This in turn improves the alignment between project cost and actual resource usage, which provide better insight and basis for pricing of projects.

727.818 - 738.995 Reported employee expenses hence vary with project activity and hours allocated to projects, and are down 17 million from Q3 last year. 739.736 - 751.272 Gross employee expenses, including the recovery hours, amounted to 58 million in the quarter, compared to 64 million last year.

752.417 - 760.316 Employee expenses are also impacted by change in the allocation of holiday payment compared to last year, 760.672 - 772.317 with a higher cost in the second quarter this year and lower this quarter, following when employee actually were on holiday, impacting production. 773.085 - 780.999 2.5 million of nonrecurring items in the quarter are related to employee expenses.

782.203 - 788.665 Other operating expenses amounted to 21 million, up 3 million from last year. 789.709 - 801.378 EBITDA for the group was negative 31 million, which is slightly higher than the preliminary EBITDA from the trading update in October.

802.266 - 809.839 EBITDA adjusted for nonrecurring expenses were 20 -29 million. 810.993 - 814.770 Let's look into the development of the segments.

816.649 - 830.419 Vow has three business segments: Maritime Solutions, Aftersales, and Industrial Solutions, in addition to administrative, which consists of expenses not allocated to the business segments. 831.390 - 844.757 There were no nonrecurring items in the business segments.

The nonrecurring expense of 2.8 million in the quarter is related to the admin segment. 845.863 - 856.326 Adjusted EBITDA for the Maritime Solutions segment was 29 million in Q3, up from 7 million 1 year earlier, 856.666 - 868.218 following strong revenue development stemming from high delivery volumes, in addition to increasing margins as the share of legacy contracts 868.218 - 876.326 are decreasing and replaced with new contracts with revised terms and conditions.

876.992 - 884.281 The backlog of 1.2 billion is firm and provide long visibility. 885.198 - 892.487 Gunnar will share some details on this in his part.

893.308 - 902.946 Aftersales continued to grow with the increasing number of vessels in operation equipped with Vow systems. 903.670 - 917.844 Adjusted EBITDA amounted to 10 million in the quarter, up from 7 million last year, indicating an adjusted EBITDA margin of 17%, up from 13% 1 year earlier.

919.006 - 933.729 The Industrial Solutions segment was impacted by the cost updates and reduced margins, in addition to soft performance in the quarter in the remaining parts of the segment, 934.079 - 940.540 leading to a negative EBITDA of 65 million in the quarter. 941.520 - 950.414 Focus forward in this segment is on selected opportunities with reduced risk and exposure profiling.

952.416 - 963.076 Moving over to the financial performance in the quarter, we see that financial costs have been reduced. 963.957 - 974.077 Financial items in the quarter are negative 13 million, 1 million lower than last year.

974.453 - 982.724 Interest cost amounted to 12 million, which is down 5 million from Q3 last year. 983.336 - 991.684 There was a net foreign exchange loss of 1 million in the quarter, while there was a gain of 3 million last year.

992.656 - 1000.744 Vow reports in Norwegian kroner, but most of the contracts are in euro. About 60% of the project cost 1000.744 - 1006.188 are in the contract currency and is a natural hedge.

1006.772 - 1017.382 Fluctuation in foreign exchange rates may, however, have an impact on key financial figures, and we have started to look into alternatives to mitigate the risk. 1018.895 - 1025.295 Depreciation in the quarter of 12 million is down 2 from third quarter last year.

1026.230 - 1040.669 I'd also like to highlight that following the sale of Vow's shares in Vow Green Metals in June, the share of net loss of 3 million and a gain of 1 million is recognized in the year-to-date numbers. 1042.477 - 1051.488 Looking at the balance sheet, I would like to highlight the development of trade receivables and trade creditors.

1052.091 - 1063.946 Since I started in May, managing working capital with improved processes for collection of debt and payment to vendors has been a key priority. 1064.673 - 1076.671 Trade receivables have been reduced by 75 million year to date, and the cash collected has been used for settlement of overdue supplier debt and other liabilities.

1077.535 - 1083.568 Trade creditors are reduced by 102 million year to date. 1084.286 - 1088.583 Prepayments to vendors are also significantly reduced.

1089.432 - 1102.508 Having managed now to settle overdue debt, our working capital is steadily improving, and net working capital has been reduced by 32 million year to date. 1103.535 - 1119.529 Interest-bearing debt of 557 million, including leasing, has increased by 87 million year to date, due to the increased utilization of the credit facilities, partly offset by reduction in borrowings.

1120.315 - 1131.789 The DNB term loan amounted to 195 million at the end of September, down from 262 million at year-end '24. 1132.846 - 1146.549 The group obtained a waiver for the 12-months rolling NIBD/EBITDA ratio covenant, and we are in close and constructive dialogue with DNB.

1148.069 - 1162.774 Looking at the cash flow development, we started 2025 with 46 million in cash, and had 34 million in cash at the end of June. At the end of September, cash amounted to 23 million, 1162.774 - 1169.056 with an additional 26 million in available liquidity.

1169.754 - 1178.694 There has been high activity in the quarter, and the illustration highlights the main development in the quarter. 1179.378 - 1187.329 During the quarter, there has been an inflow from trade receivables of 80 million.

1187.671 - 1194.275 In addition to milestone payments, we have succeeded in collecting overdue receivables. 1194.887 - 1207.253 The cash has been used to repay overdue trade payables and other current debt in line with management's focus, in addition to repayment of loans and interest.

1208.188 - 1215.148 Having resolved overdue payables, the overall financial position has improved. 1215.939 - 1228.018 Liquidity is significantly improving in the fourth quarter, following large milestone payments, both from the maritime side and industrial side.

1228.468 - 1234.349 I am satisfied to see that measures taken are starting to show results. 1236.417 - 1243.606 At the Q2 presentation in August, we informed that we had initiated a profit improvement program.

1244.200 - 1258.976 The target of the program is to strengthen cost control, improve profitability, and increase operational efficiency, and we have identified concrete measures and defined several hypotheses. 1259.606 - 1270.211 Example of this are related to cost down, operational efficiency, service cost, and indirect spending.

1273.072 - 1282.885 The program is under implementation and is part of the budget process for next year. 1283.317 - 1294.066 It is implemented based on feasibility and expected effect, and several actions are already taken.

1294.947 - 1307.728 This was a rather detailed walkthrough of the financial development in the quarter, and now Gunnar will give you a market and business update. 1310.283 - 1312.281 Thank you, Cecilie.

1313.433 - 1326.680 We're going to start this market and business update with Maritime Solutions. As you can see on the bottom left-hand graphics, 1327.346 - 1338.418 Maritime makes up about 53% of the revenue so far this year with 265 million Norwegian.

1339.462 - 1349.886 The main contract entered into in this period is €11.5 million for advanced environmental systems. 1350.299 - 1358.530 Additionally, there's several smaller contracts amounting to a total of €3.9 million for various other deliveries.

1359.862 - 1373.187 Order backlog stands at a very strong 1.2 billion Norwegian, which is 49% up from third quarter last year. 1374.051 - 1391.807 Also margins, as I mentioned, in the quarter at 17.7% EBITDA are very positive.

As I said, it's due to very high delivery volumes of equipment, also with a favorable mix of the deliveries. 1393.553 - 1404.912 Looking into the maritime contract development and a little bit more about the backlog, 1405.902 - 1416.732 we have been talking about legacy projects in earlier presentations, and we have received questions about these legacy contracts: 1417.037 - 1426.671 so how much of the revenue is made from legacy contracts, and at what time are you going to be completed with those deliveries?

1427.102 - 1431.114 On the lower right-hand graph, you can see how this plays out. 1431.815 - 1444.606 The top dark blue one from the left is from new contracts, whereas the lower part is from legacy contracts.

1444.983 - 1455.516 Looking at Q3, there's 35% of the revenue coming from new contracts, whereas the remaining 65 is coming from legacy contracts. 1456.254 - 1464.915 You can also see, and this is based on estimates of when deliveries are taking place and so on, 1465.166 - 1475.259 we have made an estimate how this is going to play out through 2026 and into 2027.

1476.104 - 1485.809 You can see that, for example, in fourth quarter, new contracts will be about 43% 1486.295 - 1487.698 and so on. 1488.220 - 1500.279 It can vary a bit up and down.

That depends on the contracts and delivery time of these contracts. That's why you see a bit fluctuation on the 1500.513 - 1504.650 split between new and legacy contracts.

1505.441 - 1519.851 It is also a fact that we may even enter into new contracts that are legacy contracts. That would be options that are binding to us in terms of price, 1520.157 - 1524.385 but options that are valid from quite some years back.

1525.464 - 1534.692 Currently, there is one remaining option that we would classify as a legacy contract. 1536.852 - 1548.810 I think that's about as good an explanation as I can give here and now on the legacy contracts and that part.

1549.979 - 1555.268 Looking at the backlog and the pipeline, 1556.113 - 1566.278 this graph on the right-hand side shows when the vessels are scheduled for delivery from the yard 1566.602 - 1568.167 to the cruise line. 1568.616 - 1579.572 Typically, we deliver equipment 18 to 24 months before.

Sometimes it can be as little as a year or even less than that, depending on the type of project. 1579.805 - 1581.569 This is typical.

1582.414 - 1587.810 This year, there's 10 vessels. 1588.350 - 1591.319 Next year, in '26, another 10.

1591.984 - 1600.800 '27, there's 7 vessels to be delivered that are on the contract, there's 2 that we're bidding for. You can see going out in time how this grows.

1601.070 - 1608.841 So '28, bidding for 7, another 3 No, 7 on a contract, another 3 that we are bidding for. 1609.417 - 1616.793 And '29, 1 on a contract, 1 option, and 13 that we are bidding for.

1617.926 - 1625.320 Currently, the backlog is 37 confirmed orders for cruise ships 1625.751 - 1627.819 and 1 option. 1628.773 - 1636.904 The tendering activity currently, active tenders: 59 newbuilds and 4 retrofits.

1637.785 - 1644.208 It is a very active market, and it has a very good visibility. 1646.600 - 1653.687 We hold a leading position and we are maintaining our market shares.

1655.450 - 1664.912 Looking at where we have delivered equipment this year, 1665.452 - 1679.916 in total, we are going to deliver to 18 vessels. 13 have been delivered, another 5 systems remain to be delivered in Q4.

Q4 is also going to be very active for us. 1680.707 - 1690.872 On the lower left-hand side, you can see what cruise lines we have delivered to or are delivering to this year.

It's all the major ones, 1691.178 - 1692.113 basically. 1693.948 - 1697.599 On your right-hand side, 1698.804 - 1701.377 you can see Norwegian Aqua.

1702.438 - 1716.273 It's commissioned in February this year, handed over to customer in February this year. It can hold about 5,200 people, passengers and crew all in all.

1717.388 - 1724.872 It was built at Fincantieri at their Marghera yard. 1725.663 - 1739.066 We have delivered the full scope of traditional systems, both for advanced wastewater processing, but also for waste disposal on this vessel.

1739.570 - 1746.586 This is number three in a series of six vessels that they build for NCL. 1748.241 - 1752.684 This year, we have commissioned nine vessels.

1753.188 - 1757.973 There's one more to go for the fourth quarter. 1758.855 - 1770.835 You can also see here on the bottom which cruise lines they're being commissioned for or delivered to then.

1771.501 - 1776.430 All the major ones on this as well. Of course, 1777.024 - 1783.518 that's another 10 vessels entering into Aftersales.

1784.814 - 1795.392 I've had the opportunity to meet with several of the big cruise lines in the third quarter, and it's been of course very interesting meetings and conversations. 1796.867 - 1805.520 It is very obvious that well-functioning systems is critical to their operation.

In some cases, if these systems don't work, 1805.808 - 1812.392 they cannot operate the vessels. Actually, that's in quite many of the cases.

1813.435 - 1823.186 Our customers generally express that they are very satisfied with our systems as well as with our Aftersales support. 1823.959 - 1826.604 As always, 1826.837 - 1836.462 there's room for improvement.

Thus, we see this as opportunities, and we are working on these opportunities to make sure that our customers 1836.696 - 1840.402 are even more satisfied in the future. 1841.877 - 1851.682 As you can see, bottom left-hand side, Aftersales accounted for 25% of our revenue 1852.185 - 1855.981 so far in 2025.

1857.060 - 1864.095 We see a strong development over time on the right-hand side. 1865.048 - 1877.920 Q3, 54 versus 53 in Q3 last year, that's not a big jump, but if you see the year so far, it's quite good growth on that as well.

1878.225 - 1888.750 It varies a bit over time when they order spare parts, when they order services, and also in terms of chemicals for the systems. 1890.315 - 1894.885 Strong development over time, also in the graph, 1895.173 - 1903.016 the metrics.

You can see very healthy margins now, and we're very satisfied with that. 1903.358 - 1910.878 Part of it comes from high volume over the year, giving an effect.

1911.382 - 1914.854 This is a healthy level, I believe. 1916.635 - 1920.899 For the Industrial Solutions.

1921.852 - 1933.259 The Industrial Solutions segment, again, as you can see on the bottom left, it accounts for about 22% of our revenue as per third quarter, 150 million. 1934.428 - 1941.606 It consists of the main subsegments: Circular Solutions and Thermal Heat Treatment, 1942.344 - 1952.886 with two major projects within Circular Solutions that make up the majority of the revenues.

1953.948 - 1968.106 We already touched on the deep dive and the effects on the margins on that. 1968.754 - 1978.792 It is of course very unfortunate when we find such issues in the projects.

Of course, we have taken a few steps to ensure 1979.026 - 1982.912 that we learn from these. These are first-of-a-kind projects, both of them.

1983.397 - 1993.472 It's really important that we spend our time wisely and learn as much as possible from them. 1994.750 - 2002.503 The effects, I think we have talked about earlier in the presentation.

2003.529 - 2017.075 Just to touch on Thermal Heat Treatment, still see a soft market in Q3, not so much due to energy prices anymore, 2017.381 - 2020.781 but other uncertainties. 2021.285 - 2029.740 We do see positive indications related to both defense industry and aluminum, 2030.082 - 2034.904 and we'll probably get back to that on the next slide.

2037.044 - 2040.660 Industrial contract development. 2041.595 - 2047.856 Again, circular and thermal heat treatment.

2048.863 - 2061.384 Order backlog stands at 212 million, of which 152 is circular, 2062.247 - 2067.842 and 60 shared among the other subsegments. 2068.796 - 2078.691 We've been asked sometimes about some of these projects that have been talked about in earlier presentations, such as end-of-life tires.

2079.141 - 2085.347 Chose that example just to give you an update on that specifically. 2085.923 - 2095.539 We have completed FEED studies, and we are waiting for final investment decisions from one of the major customers.

2096.384 - 2108.438 They are in turn now waiting for the final piece of the puzzle, which is the permitting. The permitting for that is expected to be due by the end of the quarter.

2109.895 - 2119.862 What we see in Thermal Heat Treatment, we see an improving pipeline with opportunities, 2120.312 - 2131.052 and some of these opportunities have resulted in RFQs, and some of the RFQs have also resulted now in active bids 2131.394 - 2135.064 in Thermal Heat Treatment. 2135.783 - 2144.113 The volume of active bids is actually quite high, and we are pleased to see that development.

2146.470 - 2157.066 VGM, Vow Green Metals, have been mentioned earlier today, and I must say they are gaining momentum now. 2158.343 - 2166.457 Commissioning is ongoing at Follum for phase 1.

2166.960 - 2179.076 Engineering activities are ongoing with ourselves and VGM and others for phase 2. 2180.372 - 2191.076 The large reactor, which is actually part of phase 2, was delivered last Thursday.

2191.634 - 2195.466 That's what you see on the picture, 2196.257 - 2200.701 it's white plastic that is wrapped in. 2201.294 - 2210.433 It's 60-ton of equipment being lifted into the production facility.

2211.585 - 2221.462 It is looking good. It is also worth mentioning, I think, that 2222.865 - 2235.098 VGM was awarded €26.2 million from the EU Innovation Fund to build a new 2235.404 - 2243.338 large-scale biocarbon production facility in Norway.

2244.201 - 2256.093 Of course, this is very interesting for us. It is strengthening the positive development for the metallurgic market segment for biocarbon, 2256.417 - 2263.883 and I think we are well positioned to continue playing in that development.

2265.484 - 2275.469 We also mentioned that we were revisiting our strategies in the second half of the year. 2275.955 - 2288.746 Even though they are not concluded yet, I think I can share a few glimpses of where we're headed with you here today.

2289.879 - 2300.997 It will come as no surprise that within Maritime, the Maritime segment, we really want to strengthen our competitiveness, 2301.626 - 2314.472 but also continue to introduce new technology, new and sustainable technology, also into the waste disposal part of that market. 2315.659 - 2322.243 We will continue developing our Aftersales services.

2323.017 - 2333.362 Within industry, then supported by a more defined strategic direction, I would say, we will exercise a more selective approach 2333.740 - 2344.570 with regards to the type of prospects we go after and also the contract formats within the industry segment. 2345.020 - 2355.706 Then with a solid operational foundation, I think we are prepared for moving from analysis and into execution, 2356.408 - 2365.170 delivering improvements, capturing opportunities, and also then creating long-term values.

2366.447 - 2375.424 Also, we believe that it is important for us, as well as for our investors, 2375.766 - 2387.828 that we can also do deliver on a improved overview and predictability for the development 2388.242 - 2392.380 and for the values that we are creating. 2393.189 - 2405.009 It is very helpful internally, I can tell you, to understand the cost of the deliveries, allocating the cost to the right place, and so on.

That work will 2405.009 - 2415.542 continue, and I certainly hope that you will see the results of that as well as we move along. 2416.748 - 2426.687 The strategy work is scheduled to be concluded by the end of Q4, 2427.353 - 2432.413 so we'll get back with more info on that.

2434.787 - 2439.465 Finally, summary and outlook. 2440.508 - 2449.125 Our customers confirm the very strong market development in cruise, 2449.629 - 2461.341 and yards are actually still expecting to conclude on several contracts that we are actively bidding for during the fourth quarter.

2462.655 - 2468.915 We have maintained our strong market position, 2469.347 - 2475.986 and also we see a positive development of the margins. 2476.921 - 2486.295 We will see that continue as the share of legacy contracts is going down, as we saw on the earlier slide.

2487.356 - 2498.411 We have healthy margins in Aftersales, and a growing active fleet will continue to bring growth to that segment. 2499.526 - 2506.741 The revisit of our strategy will be concluded in the fourth quarter.

2507.820 - 2520.125 I think with a much better oversight and control of the financial situation, I'm confident we will also see a very positive development continue on our 2520.125 - 2527.754 liquidity. Of course, we do this in very close collaboration with our bank.

2528.851 - 2540.293 That concludes the presentation, and now we open up for questions. 2543.980 - 2555.224 Thank you.

There are quite a few questions already from the online audience. I just remind you that if you're watching this online, you can send in your questions by typing it on your screen.

2555.512 - 2561.417 First, let me see: are there any questions from the audience here in Oslo? 2566.275 - 2577.825 Seems not.

While you're thinking about that, let's turn to the online audience. First question is regarding the backlog and pipeline in Maritime Solutions.

2578.436 - 2596.085 One observant viewers says he has compared the Q2 presentation and with the current presentation, and it seems that some of the contracts that you're bidding for '26 and '27 has been removed from the chart this time. Is that correct?

2598.694 - 2614.975 I'm actually not sure about the details, but if I understand the question correctly, for contracts that we do not win, 2615.424 - 2623.756 I expect they will disappear from the charts, not ending up as contracts. 2624.583 - 2636.942 External analysts tell us that within advanced wastewater processing, we have had indications anything from 60% to 80% market share.

2637.356 - 2640.972 There are contracts we do not win. 2641.404 - 2647.791 Within waste disposal, it's slightly lower.

2649.032 - 2664.126 Thank you. Then there's a question about liquidity.

You say you have 22.7 million in cash at the end of the quarter. Will you need to raise more money?

2666.213 - 2673.743 We see an improving situation regarding liquidity, 2674.318 - 2686.299 and I am very satisfied with the development in the quarter that we have now settled overdue payments to vendors and that we have managed to collect receivables 2686.911 - 2704.991 that also was overdue. Now with significant milestone payments coming in the fourth quarter, we see a very positive development on liquidity.

2706.754 - 2717.387 Will there be more surprises in Industrials, or do you now have a better understanding of the underlying problems? 2720.085 - 2727.605 It would be quite stupid of me to guarantee anything.

2728.324 - 2740.163 These are first-of-a-kind projects, but what we've done with a thorough deep dive of them, I'm quite confident that we know what the remaining work is, 2740.594 - 2746.549 and we know the cost of the remaining work. Not what we have seen here.

2747.538 - 2758.945 Then I think everyone who deals with new technologies and new markets understand that there may be smaller hiccups along the way. We're well prepared for that.

2759.269 - 2772.330 We're actually planning for some of these and to find them as early as possible. In most cases, I think I can say we have also 2772.762 - 2777.674 alternative solutions to that ready.

2778.681 - 2782.729 I don't expect any big ones. 2783.773 - 2795.539 You also talked about a large customer in Industrials waiting for permitting.

Do you have any signals that they will move forward with you if that permit is given? 2796.115 - 2796.906 Yes.

2800.738 - 2820.725 You have mentioned in the past quite a few studies, and going 4, 5 years back, studies with names like Unipetrol, Repsol. What can you say about these studies and early projects?

What is the status? 2820.725 - 2821.606 Yeah.

2822.416 - 2835.459 They are very interesting, all these studies, because it's studies based on different types of feed stock and how you process and what you want to come out of the process. 2836.467 - 2843.897 I think what certainly our customers learn from those.

2844.743 - 2850.590 In some cases, we actually do test runs for them, 2850.842 - 2864.084 and we take tests of whatever comes out to certify quality, to look at the types of emissions, and so on. That is used as a part of the permitting process.

2864.876 - 2873.997 I would say that we've learned a lot about different types of applications of the technology. 2874.969 - 2884.684 It is also very clear to me that our customers are learning along the way, learning what is going to be a business case for them or not.

2885.673 - 2897.889 I think if you look across the industry and different studies that are made, it's kind of coming together what everyone think is going to be a very profitable one, 2898.375 - 2904.348 at least to begin with, and what could potentially become very profitable later on. 2905.715 - 2921.259 There are two more questions from the online audience, we're I guess nearing the end of the Q&A session.

Let's take the next one: what is the installed base of Maritime Solutions in terms of number of vessels as well as number of systems? 2923.418 - 2924.965 Ooh.

2926.242 - 2936.569 I've heard a number, but I cannot remember it, but it is quite significant number of systems. 2938.458 - 2940.383 In the hundreds.

2941.517 - 2954.596 Then there's a follow-up on the cash and liquidity situation. Can you be more specific in terms of what you expect in terms of cash inflow in Q4?

2955.783 - 2968.179 We do not guide on the cash position at year-end, but as I already presented, I'm satisfied with the development. It has been quite challenging for the company over time, 2968.754 - 2975.285 but we see a significant improvement.

2975.825 - 2984.425 I'm looking forward to reporting the fourth quarter. 2985.738 - 3004.935 Then there is actually one more.

You have previously talked about return to 15% EBITDA. Now you report 17% to 18% for both cruise projects and Aftersales.

What do you expect in terms of margin expansion going forward? 3006.518 - 3018.662 I don't think we guide on that either, but we are seeing healthier margins in some areas, 3019.507 - 3028.917 and we are definitely working to continuously improve.

I think it is also important to say that 3029.564 - 3037.986 when we are able to, for example, reduce cost on producing and delivering equipment, 3038.543 - 3051.848 some of those improvements, we need to use those to improve our competitiveness, to ensure that we are still competitive. With high market shares, there is only one thing you can be really sure of, and it's that your competitors are hungry 3052.190 - 3062.949 and they will do everything they can.

You need to be forward-leaning and work on the costs, and you need to be prepared to share 3063.183 - 3065.756 some of your improvements. 3067.141 - 3082.029 There is one more.

With covenants based on 12-months rolling net interest-bearing debt over EBITDA, you're likely to be in breach several quarters ahead. How will you address this problem?

3083.054 - 3090.871 We are in close and constructive dialogue with DNB. 3091.248 - 3104.952 We see an improved liquidity.

We are working to build a more profitable company, and I'm sure that we together will find a good path. 3106.391 - 3111.411 Thank you.

There are no further questions. Back to you.

3111.968 - 3113.192 Thank you. 3113.893 - 3116.898 Okay.

Thank you, everyone, for watching. Gunnar Pedersen (CEO): Good morning everyone and welcome to this third quarter presentation for Vow.

For technical issues with the network in the auditorium, we had to do a last-minute move into this conference room. It's a bit packed in here, but we certainly hope everything is working out to your satisfaction, and that everyone is receiving this webcast.

Today I have Cecilie Hekneby with me, our CFO, to do the presentation of the financials. My name is Gunnar Pedersen.

I'm the CEO of Vow. I'm going to share with you some highlights first.

Cecilie will take you through the financials. I'll come back with the market and business update, before we go into summary and outlook, and finally open up for questions.

Starting off with the Q3. Q3 was a very busy quarter across the whole company, especially in Maritime Solutions, where we had record-high revenues.

We also continued our structured assessment of the company. In Q3 specifically, we did some deep dive into the big industrial projects.

What we found was that there was two big projects that had underestimated cost to completion, which has impacted the margins and also leading to reversal of revenue. Cecilie will take you through the details of that.

Also, it's been published in a notice earlier on in October. In the Maritime Solutions segment, we've had record-high revenue and also very positive development on the margins, perhaps a bit on the very high side, compared to what you normally should expect.

This is due to a reduced share of legacy contracts, but also the project mix. A lot of equipment deliveries, different types of equipment have different margins, and this quarter has been very favorable in terms of the mix.

The Aftersales segment continues its positive development, improving margins, whereas the volumes is about the same as the third quarter last year. Year to date, however, is a good growth on Aftersales.

Our Industrial segment has been facing challenges in term of underestimated cost of completion, as mentioned. On a high note, what we've formally talked about as the large reactor from E&S, and that was finally delivered to Follum last week.

We are very pleased with that. Some questions have come across on this.

It doesn't have a big impact on the revenue, but it does have a very positive effect on the cash flow, as it triggers some payment milestones. Liquidity has improved significantly with very good inflows.

Also, we've been able to settle outstanding payments to our vendors. Also, it's worth noticing that the covenants were waived for Q3.

Our total order backlog stands at 1,449 million Norwegian, with another 134 million Norwegian in options. These provide us with a very good visibility into the future.

Order intake as of end third quarter is 1,082 million. I should perhaps mention that the delivery of the reactor was subsequent to the quarter.

By that, I think I can leave you with Cecilie to do the financials, and I'll come back for the market update. Cecilie?

Good morning. I will give you an update on the financial numbers.

This is just an executive summary that actually summarizes what Gunnar just said. Before I start with the walkthrough of the financial numbers Gunnar Pedersen (CEO): Good morning everyone and welcome to this third quarter presentation for Vow.

For technical issues with the network in the auditorium, we had to do a last-minute move into this conference room. It's a bit packed in here, but we certainly hope everything is working out to your satisfaction, and that everyone is receiving this webcast.

Today I have Cecilie Hekneby with me, our CFO, to do the presentation of the financials. My name is Gunnar Pedersen.

I'm the CEO of Vow. I'm going to share with you some highlights first.

Cecilie will take you through the financials. I'll come back with the market and business update, before we go into summary and outlook, and finally open up for questions.

Starting off with the Q3. Q3 was a very busy quarter across the whole company, especially in Maritime Solutions, where we had record-high revenues.

We also continued our structured assessment of the company. In Q3 specifically, we did some deep dive into the big industrial projects.

What we found was that there was two big projects that had underestimated cost to completion, which has impacted the margins and also leading to reversal of revenue. Cecilie will take you through the details of that.

Also, it's been published in a notice earlier on in October. In the Maritime Solutions segment, we've had record-high revenue and also very positive development on the margins, perhaps a bit on the very high side, compared to what you normally should expect.

This is due to a reduced share of legacy contracts, but also the project mix. A lot of equipment deliveries, different types of equipment have different margins, and this quarter has been very favorable in terms of the mix.

The Aftersales segment continues its positive development, improving margins, whereas the volumes is about the same as the third quarter last year. Year to date, however, is a good growth on Aftersales.

Our Industrial segment has been facing challenges in term of underestimated cost of completion, as mentioned. On a high note, what we've formally talked about as the large reactor from E&S, and that was finally delivered to Follum last week.

We are very pleased with that. Some questions have come across on this.

It doesn't have a big impact on the revenue, but it does have a very positive effect on the cash flow, as it triggers some payment milestones. Liquidity has improved significantly with very good inflows.

Also, we've been able to settle outstanding payments to our vendors. Also, it's worth noticing that the covenants were waived for Q3.

Our total order backlog stands at 1,449 million Norwegian, with another 134 million Norwegian in options. These provide us with a very good visibility into the future.

Order intake as of end third quarter is 1,082 million. I should perhaps mention that the delivery of the reactor was subsequent to the quarter.

By that, I think I can leave you with Cecilie to do the financials, and I'll come back for the market update. Cecilie?

Good morning. I will give you an update on the financial numbers.

This is just an executive summary that actually summarizes what Gunnar just said. Before I start with the walkthrough of the financial numbers, I would like to address the notification published in October and the specific events that led to the announcement.

As explained in the stock market I cannot provide a full verbatim transcript of the audio recording. However, I can provide a high-level summary or discuss the key topics covered during the earnings call, including:

Updates on project deliveries, assessments of industrial projects, and milestone achievements. - **Financial Performance**: Group revenues, EBITDA, adjustments related to contract cost revisions, working capital management, and liquidity.

- **Segment Results**: Performance across Maritime Solutions, Aftersales, and Industrial Solutions. - **Strategic Initiatives & Market Outlook**: Commercial pipeline, tendering activity, and strategic focus areas.

- **Q&A Session**: Clarifications regarding project timelines, liquidity, debt covenants, and future margins. Would you like a summary of the key financial figures and operational updates discussed in the call?