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Constantin Baack: Good afternoon and good morning, everyone. This is Constantin Baack, CEO of MPC Container Ships, and I'm joined by our CFO and Co-CEO, Moritz Fuhrmann. Welcome to our Q3 2025 earnings call. Thank you for joining us today to review MPC Containership's third quarter and 9 months results for 2025. Earlier today, we issued stock market announcement covering our Q3 results for the period ending September 30, 2025. Both the release and this presentation are available in the Investors section of our website. Please note that today's discussion includes forward-looking statements and indicative figures. Actual results may differ materially due to risks and uncertainties inherent in our business. Before diving into Q3, let's briefly reflect on the first 9 months of the year. We are pleased to report another strong quarter, underscoring the resilience of our business amid ongoing macroeconomic and geopolitical uncertainties. Despite regulatory shifts and unpredictable trade policies, the container charter market and asset values remain firm. Time charter rates held up well, secondhand demand stayed strong and idle capacity remained low. While the global order book is elevated, constrained supply in the small to midsize segment and aging fleet as well as shifting trade patterns support a favorable balance. Volatility remains so we do not expect smooth sailings ahead. We focus on what we can control. Continued disciplined fleet modernization, forward fixing at attractive rates and periods, increasing coverage, maintaining a strong and flexible balance sheet as well as strong investment capacity. Our disciplined capital allocation approach has delivered strong returns and dividends, and we remain committed to sustainable shareholder value. Looking forward, we see opportunities to selectively divest, invest and grow, leveraging favorable market conditions while staying agile and focused on long-term value generation. We'll explore these themes in more detail during the presentation. And with that, I would like to hand over to Moritz. Moritz Fuhrmann: Good morning, everyone, and also welcome from my side to MPCC's earnings call for the third quarter of 2025. Our agenda for today starts with a review of Q3 highlights, after which we will spend some time on the current market dynamics and the outlook for the remainder of 2025. Starting with the highlights on Slide #3. We continue to see a very strong quarterly performance based on revenues $126 million and adjusted EBITDA for the third quarter of 2025 of USD 75 million. As a result of the very good financial performance, the Board has declared the company's 16th consecutive dividend with $0.05 per share, basically representing 50% of the adjusted net earnings for the third quarter of 2025 and also being the upper end of our dividend payout ratio range. On the asset side and the fleet transition side, we continue to be very active as we handed over 3 previously sold vessels to the new respective owners, bringing the total to 10 vessels this year. And on the flip side, we have been equally busy on new building sites, and we're able to reinvest the sales proceeds by contracting so far this year, eight 4,500 TEUs and two 1,600 TEUs for a total consideration of around $525 million, bringing the total order book today to 11 vessels. The deliveries of the newly contracted vessels will start from the second half of 2027. And what is important to note, I think, is that all our new buildings have been ordered against very attractive long-term charters with durations of 3, 7, 8 and 10 years, allowing for very meaningful derisking throughout the fixed time charter period. While -- and I think that is important, at the same time, retaining significant upside potential during the remaining lifetime of the vessels. These transactions, we believe, are cementing our position in the market as the leading tonnage provider in the feeder segment and also underscoring our strategic importance and our relationships with the top-tier liner operators. Our newbuilding activity is also a result of the current positive market momentum, mostly reflected in our most recent chartering activity, we have forward fixed in total, 11 vessels through 2 distinct on blocked deals for durations between 1.5 and 2 years, and at rates between $17,000 and $23,000 per day, obviously, depending on the vessel size and forward delivery window, adding significant average -- a significant coverage into 2028. And the total revenue backlog increased quite sharply, now standing at USD 1.6 billion. And also as a consequence, our open days coverage has increased quite meaningful. So we are now 92% and 55% covered for '26 and '27, respectively. Needless to say that 2025 is fully covered at 100%. Looking ahead into the remainder of 2025, and as the market remains very dynamic. We don't see, as of now, at least, any negative implication as a result of the most recent Red Sea announcement. In any case, we will continue focusing on further driving our fleet transition as well as retrofit program to improve the fleet composition and enhance long-term shareholder value. Based on the current market, we increased the revenue guidance to $500 million to $510 million and our EBITDA guidance to $330 million to $340 million. Turning to the next slide and looking at some of the KPIs for the third quarter, gross revenue and adjusted EBITDA came in slightly below previous quarter as a result of the remaining legacy contracts are running off now. The markets are very supportive and charter rates and durations are very strong. However, not at levels we have seen in 2021 and 2022. From a balance sheet perspective and despite having drawn under new senior secured facilities, the leverage ratio with 34.6% is only slightly up relative to last quarter, while the net debt position has decreased to USD 107 million, underlining the conservative balance sheet structure that we have today. And as mentioned before, on the right -- top right-hand side, the Board has declared a dividend of $0.05 per share, which will be paid in December this year. And the operational cash flow generation remains very strong with more than $225 million year-to-date. While the fleet utilization at the bottom right was unchanged at 97.6%, the actual OpEx increased slightly due to one-off nonrecurring items, and we expect a normalization trend for the next quarter. Looking at Slide #5. And I think, very importantly, focusing on the current chartering market as well, in particular, our activity. They recently were clearly evidencing a very strong whatsoever in activity by the line operators. In particular, we see very strong demand for feeder vessels. So actually, to the contrary, we see increased demand for forward fixtures at very strong levels. So contrary to the most recent noise that we have heard and seen around the container market. So looking at the left-hand side and going into the third quarter, we have had 32 open positions stretching into the first quarter of 2027. And in the last few weeks, we have proactively 2 distinct charter package deals fixed 11 of those vessels substantially reducing the open days going forward as we can see it. And the average forward picture that we've done on those transactions is around 12 months, with the longest forward position that we fixed being 14 months out. And the average duration is around 2 years, with very strong rates that are adding around $110 million to our revenue backlog through those transactions. And I think also important to mention all fixtures have been done with top-tier line operators. As the market remains elevated, we still have upside potential through 21 remaining open position starting from Q1, Q2 next year. However, we are already, as we speak, we're already being approached by charters on some of these positions and in line with our chartering strategy, meaning being conservative, we will try to fix also those vessels if we believe, of course, the offered rates and durations are a fair reflection of the current market. In any case, of the future chartering activity, our P&L has great earnings visibility and with a limited number of open vessels in the not-too-distant future, we are very much shielded from any adverse market development. And on the asset side, on the S&P side, we haven't concluded on any further asset -- vessel sales, but we see equally strong liquidity and demand on the S&P side. And we are currently contemplating further asset disposals as we have done in the past, and that would potentially mean materializing very firm asset values that are at least according to our numbers, implying NAV figures of north of NOK 35. On the next slide, we spend a bit more time on the investment side and in particular, our efforts on the fleet transition, where we have been very active ever since the summer this year. So after having ordered four 4,500 TEU vessels over the summer against the 3-year contract, we have recently announced 2 more newbuilding deals for 6 vessels, namely two 1,600 TEUs and another batch of four 4,500 TEUs against 8 and 10-year contracts with top-tier line operators, growing our total order book to 11 vessels. The additional investments follow our usual approach that we have also done in the past as we combine asset investment with cash visibility, providing significant derisking throughout the charter period. As you can see on the left-hand side of the graph, our yet outstanding CapEx commitments of more than $550 million are pretty much covered by the contracted EBITDA, essentially enabling us to realize significant upside value once the vessels are running off their initial charters, sort of vessels that we have contracted. They obviously have a staggered redelivery profile given the different charter durations. But on average, the vessels will be roughly 7 years of age at charter expirations and to put things into perspective, from a value perspective, the current age-adjusted FMV for these vessels is roughly $500 million to $550 million, i.e., a great combination of minimum residual risk while retaining maximum upside potential and what we believe will be a very constructive feeder market into the future. And in general, we have taken and will continue to take a very prudent approach to these investment cases to minimize residual risk. And I think the ability to structure and execute these transactions speaks for itself and it's, I think, a great testament to the importance of MPCC as a strategic partner to the top-tier liner operators globally. Needless to say that these investments are further milestones in our fleet transition efforts to which Constantin will speak a little later in the presentation in the outlook section. However, wanting to underline that we are confident that building an enhanced and future proof as a portfolio will support generating sustainable and long-term shareholder returns for our investors in the future. Turning to Slide #7. The cash flow -- the usual cash flow bridge. So cash flow in Q3, '25 was again dominated by good operating cash flow of $73 million. And on the investment side, we have paid down the first installments under our four 4,500 TEUs that we ordered over the summer against 3-year charters. In addition to the operating cash flow, we had around $50 million cash inflow through newly drawn senior secured debt that is secured against two 3,800 TEUs, and that facility futures a $250 million accordion option that is earmarked to fund further growth in the future. The overall positive cash generation substantially improved the company's cash position and investment capacity to around $420 million by the end of September. And in addition to the balance sheet liquidity, we retain further flexibility through our undrawn RCF. And lastly, by paying our 15th consecutive dividend in September in the amount of $22 million, MPCC continues returning capital to shareholders now north of 1 -- or still north of $1 billion has been distributed ever since we introduced our recurring dividend. And as the Board has today declared the next dividend, it serves, I think, is a very good testament that we will continue to reward shareholders through capital returns. Going to the next slide, we see MPCC's quite conservatively structured balance sheet. We have year-to-date executed on a number of measures, namely vessel divestments as well as drawing secured and unsecured debt facilities to improve the company's liquidity position and therefore, also the investment capacity as we face a, what we believe is needed, fleet-renewal. By the end of the third quarter, liquidity stood at around $470 million. However, pro forma adjusting for expected yard payments in the fourth quarter, MPCC has a pro forma implied liquidity of around $500 million, including a new upsized undrawn RCF that is currently in execution. In view of our fluid renewal efforts and newbuilding CapEx commitments, the corresponding investment capacity is absolutely essential for us. And at the same time, we managed to achieve this capacity without -- I think that is important without compromising the overall robustness of the balance sheet as well as flexibility of the balance sheet with a conservative leverage ratio of below 35% and with 28 debt-free vessels with a fair market value of close to $700 million. While gross debt stands at $550 million, and net debt adjusted for the pro forma liquidity remains very low, and the vessel portfolio that we have on the water with a charter-free market value of $1.5 billion provides additional comfort. Not surprisingly, the current newbuilding commitments will partly be funded through debt, which will be sourced in due course. And the initial discussions we have had with potential lenders indicate a very healthy appetite for more than feeder tonnage, secured by long-term charters. So once fully delivered, the company's gross debt is expected to grow. However, the expected additional leverage will be supported by the cash availability attached to our new builds. Going forward, we will ensure to use the investment capacity as prudently as we have done in the past by identifying and executing shareholder accretive transactions that help building a future-proof fleet. And all in all, MPCC remains very disciplined on the capital allocation side of things, as we have always done. On that note, I hand over to Constantin for the market update and outlook section. Constantin Baack: Thank you, Moritz. I would like to continue with the next agenda point, the market update. Throughout the previous quarters, I noted that volatility is here to stay, and Q3 has confirmed that view. Looking ahead, I expect this environment of heightened uncertainty to persist not only through the remainder of the year, but well into the foreseeable future. Let me give you a quick overview of the 3 major themes shaping our outlook; geopolitical flash points, macroeconomic trends and regulatory uncertainty. First, trade tensions and protectionist policies are disrupting global supply chains. This means higher costs and longer lead times as companies diversify sourcing. Second, regional conflicts and sanctions are creating route volatility and increasing compliance risk. Sanction screening and due diligence are critical. Finally, strategic bottlenecks like the Suez Canal remain vulnerable to political instability and security threats. A single disruption can ripple across global trade. Recently, major liner companies have announced plans to cautiously resume Red Sea transits, starting with limited sailings before a full return. Normalization will likely be gradual as carriers balance security, insurance and network adjustments, potentially easing Cape route costs, but introducing short-term rate volatility. How and when this will be fully normalized remains to be seen. Looking at the macroeconomic picture, global GDP growth is projected to grow 3.2% in 2025, easing slightly to 3.1% in 2026. Growth is uneven, emerging. Asia remains the engine while developed markets slowdown. On trade flows, U.S. container imports are declining, but strong Asian export growth offsets this. Expect East West flows to remain robust, though rate volatility will persist. The IMO net zero framework has hit implementation setbacks, creating uncertainty around decarbonization pathways. We may see fragmented regional schemes emerge, adding complexity and compliance costs. So the big picture, geopolitical risk, macro shifts and regulatory uncertainties are converging, successfully depend on resilience, compliance and strategic agility. Let's move to the -- from the macro picture to the container markets in more detail. Please have a look at Slide 11. The chart on the left shows forward availability of vessels for the next 6 months. What can be observed is a tight supply environment with limited open tonnage in the short term. This reflects strong charter coverage and cautious fleet deployment by owners. The implication is that securing tonnage will remain competitive for liner companies supporting firm charter rates. The chart in the middle compares charter rates and freight rates over time. Charter rates have softened slightly from peak levels, but remain historically elevated due to constrained supply. Freight rates, while volatile, are trending above prepandemic averages, driven by network disruptions and lingering demand imbalances. Importantly, freight and charter rates have never been as decoupled as they are present, highlighting a structural disconnect between lineup profitability and vessel earnings. The key takeaway here is that we believe margins for operators remain under pressure, but owners still benefit from strong time charter earnings. The graph on the right tracks secondhand and newbuilding prices for container vessels. Secondhand prices have stabilized at high levels, reflecting scarcity of modern tonnage and strong residual values. Newbuilding prices remain firm, supported by full order books and higher input costs. Asset values are resilient, but prices for newbuildings remain elevated. Now that we've covered the container market, let's take a closer look at the carriers, the liner operators and how they are positioning themselves for the future. Over the past years, and that can be seen on the left-hand side in the graph, carriers have made a significant financial shift. They've moved from historically high leverage ratios to a position of strong capitalization. The stronger balance sheets give them resilience in a volatile market and the flexibility to invest strategically going forward. What we are seeing now is a clear emphasis in terms of focus of the liner strategy on terminal access as a key competitive advantage, ownership or long-term partnerships are key to ensuring reliability and cost efficiency. Market share still matters, but reliability and service quality have become just as important for customers. Integrated terminal and line operations help carriers maintain schedule control and deliver a better customer experience. On the fleet side, carriers remain opportunistic in the secondhand market, where we see a number of transactions driven by liners, i.e., they are taking advantage of attractive pricing when it appears. At the same time, they're advancing their newbuilding programs, and we now see this taking more and more shape in the small and midsized segments as we have anticipated during the last couple of quarters. Often, this involves partnering with owners and tender processes or bilateral deals to secure competitive positions, but liners are very selective with only a few owners being invited to these processes. So overall, carriers are entering this next phase with stronger balance sheets, a sharper strategic focus and a disciplined approach to fleet renewal, positioning themselves well for operational reliability, the energy transition and importantly, for us, as owners, building slack into their network to better absorb disruptions. With that in mind, let's move on to the next slide. Now that we have looked at the carriers positioning, let's turn to supply and demand fundamentals, starting with the supply side and then the trade growth outlook. The first graph on the left shows the order book and what stands out is that it's heavily geared towards the larger vessel sizes. In contrast, with the 1,000 to 6,000 TEU segment, the segment in which we are active, more than 800 vessels are over 20 years of age. This aging fleet means we expect the need for additional tonnage in the smaller sizes going forward, especially to serve regional and niche trades. The second graph on the right-hand side highlights the trade growth outlook. There are 3 key drivers here. First, stronger GDP growth in emerging markets compared to advanced economies will underpin demand. Second, the diversification of sourcing strategies, companies spreading productions across multiple regions will continue to drive robust volume growth. And third, intra-regional trades remain critical. In fact, 98% of vessels deployed in these trades are smaller than 5,100 TEU, reinforcing the need for smaller ships in the global fleet mix. So when we look at supply and demand together, the picture is clear. While the order book is concentrated in larger vessels, the aging smaller fleet and strong intra-regional demand point to a structural need for renewal in the midsize and smaller sectors. As we look ahead on Slide 14, the market continues to be shaped by a range of uncertainties. But these challenges also present opportunities, the very forces disrupting global shipping are acting as catalysts for innovation, differentiation and also long-term resilience. Looking at U.S. policy, firstly, they continue to create a volatile container market environment and a volatile global economic environment in total. Ongoing uncertainties around tariff announcements mean trade flows and demand outlooks could be impacted at short notice. Secondly, the Red Sea situation. This remains fluid. Recent statements suggest carriers may resume transits, but timing is still uncertain. A safe passage becomes viable, carriers are expected to gradually leverage this route to cut transit times and costs, which could lead to periods of excess capacity. Third, the intra-regional trades continue to show resilience. Container trades into emerging markets have recorded consistent volume increases in recent years. Looking forward, these trades are forecast to outperform mainland routes, driven by regional consumption and sourcing diversification. And finally, the fleet picture. Despite an uptick in newbuild orders for smaller sizes, feeder vessels remain an underinvested category. There simply isn't enough replacement tonnage to keep pace with the aging fleet currently on the water. So while uncertainty persists, these dynamics highlight where opportunities lie, particularly in regional trades and particularly in smaller vessel segments. And with that said, let me turn to the next part of today's presentation, the company outlook. And I would like to start with Slide 16 with our charter backlog. On the left-hand side, where you can find some details on MPCC's forward coverage illustrating that we've advanced the coverage significantly for '26 and '27 and beyond, as also alluded to by Moritz. As furthermore explained in detail by Moritz, we have utilized the strong charter market during the past few weeks and months, in particular, also concluding forward pictures. On the back of this, in combination with our newbuilding program, we have added additional volume to our backlog and we now have a revenue backlog of $1.6 billion and a projected EBITDA backlog, which stands at around USD 1 billion. In terms of charter coverage, the year 2025 has been covered already months ago, and we are now also well covered for 2026 with 92% and 2027 with 55% in terms of operating days. The degree of forward revenue visibility for the next years has, in fact, never been better than it is today. On the right-hand side, you can see how the revenue backlog has developed over the last 12 months in terms of backlog consumed and backlog added to the now USD 1.6 billion. Taking rational and prudent decisions has been the backbone of how we navigate MPCC's fleet in the market, and we will continue to do so in the best interest of our customers and our shareholders. Let's look at some measures that we have taken in terms of enhancing our fleet and also let's spend some time on how we will move forward strategically. In the current market environment, global developments from geopolitical attention to economic uncertainty and regulatory changes, they continue to shape the industry. While these external factors remain significant, our priority is clear: to execute on our strategy and focus relentlessly on the areas within our control, doing so with discipline and precision. This slide illustrates the results of executing that strategy over the past couple of years. We do believe that having an efficient modern fleet that is commercially attractive to our customers, the liner companies is the foundation for long-term success at MPCC. Consequently, over the past few years, we have taken a number of measures to enhance and renew our fleet. As explained by Moritz earlier, our approach to fleet renewal is strategic and multifaceted. Investing in our existing fleet on the water, including substantial retrofit measures, acquiring eco-tonnage in the secondhand market and contracting newbuildings with attractive charters to top-tier liner operators attached ensuring prudent derisking of our CapEx. On the top left of the slide, you can see how our fleet has transitioned from a purely conventional fleet to one where 75% is now of eco nature. But fleet renewal is only one part of the story. We have also placed a strong emphasis on other aspects of the business. On the right-hand side of the slide, you will see some KPIs that reflect the execution of our balanced strategy. Revenue backlog has grown from $1.1 billion to $1.6 billion from '21 to '25. At the same time, during that period, we have distributed more than USD 1.1 billion in dividends. We have freed up collateral ensuring high balance sheet flexibility and investment capacity. And as mentioned, we have invested USD 1.2 billion in retrofits, eco tonnage and newbuildings, improving the average age of our fleet significantly from a 2007, built year on average in 2021, to 2014 today. And last but not least, we have also reduced the CO2 intensity by 43% compared to the 2008 baseline. These results -- all of these results actually demonstrate how disciplined execution and strategic investments have strengthened MPCC's position for the long term. Moving on to Slide 18. At MPCC, proactive management is not just an operational principle. It's embedded in our strategy and it drives long-term value creation across cycles. Let me explain our thinking in that respect on how we approach things. Firstly, we maintain a clear strategic focus on the intra-regional container shipping market where we see structural resilience and attractive fundamentals. Our approach to asset acquisitions is cycle aware and risk-adjusted, ensuring we act decisively when opportunities align with our return profile. Fleet transformation has been accelerating through strategic newbuild projects and targeted retrofits, positioning us for efficiency and compliance. Today, 75% of our fleet on a TEU basis consists of eco-efficient vessels, including newbuilds, eco vessels and retrofits, this, we believe, will be a key differentiator in the years ahead. Our proactive chartering strategy with extensive forward fixings provides strong financial and commercial visibility, reducing volatility. We have built a broad funding base at lower cost of debt, supported by debt-free vessels and moderate leverage. This preserves investment capacity, allowing us to continue fleet transformation and seize opportunistic acquisitions when markets present value. This proactive approach is anchored in our strategy centered around MPCC and our people onshore and at sea and designed to be a good partner to our key stakeholders. As you can see on the right-hand side, we have identified a number of key stakeholders, including our customers, to which we want to be and we will be a reliable and strategic partner and having executed and offered various strategic transactions and structures for top line operators recently. We believe we are on a good track. To financing partners, we are conservative, yet agile partner, maintaining moderate leverage while tapping diverse funding sources, innovative, but disciplined. To shareholders, we are a good steward of capital across cycles with deep market insight and a prudent adaptable capital allocation strategy. We focus on what we can control, executing rational transactions with attractive risk return profiles, maintaining balance sheet flexibility. In short, proactive management is how we translate strategy into action, delivering reliability, sustainability and value across all stakeholders. Before we open the floor for questions, let me summarize the key takeaways from today's call. Firstly, Q3 2025 has been another strong quarter for MPCC driven by high fleet utilization and solid operational execution. We have secured $1.6 billion in charter backlog, ensuring full coverage for '25 and 92% and 55% coverage for 2026 and 2027, respectively. This provides a very good visibility and stability in an otherwise uncertain market. We continue to divest all the vessels and renew the fleet, reinforcing our long-term competitiveness and sustainability profile. Our approach combines recurring distributions with attractive growth opportunities, creating long-term value across cycles. While the market outlook remains uncertain, MPCC focuses on what we can control, leveraging opportunities, driving fleet transition and maintaining a robust balance sheet. In short, we remain committed to delivering value for all stakeholders throughout disciplined execution of strategic agility. With that said, let's open the floor for questions. Moritz Fuhrmann: So for the Q&A, we have the first questions trickling in as we speak. We'll take them one by one. The first question is of operational nature. Can you provide some color on the increased vessel OpEx compared to the third quarter of '24? Looking back at the third quarter of '24, it was a bit of a seasonal out layer, meaning the OpEx was quite low. Going back even further one quarter -- second quarter of '24, the OpEx was around $7,500. So a bit more in line with what we see today. It is true that the OpEx this quarter has been a bit elevated. That is for insurance reasons. There has been some deductible, so to speak, one-off items that we expect to normalize in the remainder of the year. Constantin Baack: Then there is a question related to the Red Sea and what will be the impact of Red Sea reopening on feeders specifically in your estimation? Yes, thank you for your question. We touched on this to some extent in the presentation, but I'm, of course, happy to elaborate in a bit more detail on the Red Sea situation. Maybe starting from a high-level perspective, potential Red Sea reopening would primarily affect Mainlane container services and larger vessels on Asia-Europe routes, while the direct impact on smaller container ships is likely limited. So that's the direct impact, and that's basically linked to the type of vessels that go through the Suez Canal usually. Indirect efforts, however, could obviously arise through changes in transshipment hubs, in feeder schedules, in networks and regional connectivity as carriers then obviously adjust their networks back to a Red Sea passage open mode. However, our expectation is that normalization may lead to periods of overcapacity, of course, and then that will influence the overall market and also the smaller sizes as well. Having said that, the situation remains quite fluid. And whilst major liners have communicated that they have plans to cautiously resume Red Sea transits. We think this will take a couple of quarters to gradually unwind the rerouting of the Cape, which obviously is on the cards for '26 in our view as well. But kind of -- it's about balancing security, insurance, network adjustments, potential congestions, et cetera. So there are various factors to be taken into consideration. And I think just to put a few numbers to it, the rerouting, as I said, has predominantly tied up the larger vessels. And according to Clarksons, around 720 vessels with an average size of 14,000 TEU are still diverting via the Cape. So smaller vessels have really seen negligible impact to that effect. So that's kind of our assessment when it comes to the impact of potential Red Sea reopening. Moritz Fuhrmann: Then we have 2 similar questions on the asset disposal side. Is the sale of the Felicia still expected to go forward for USD 12.3 million. Could you talk a bit about what went wrong with the sale? So shortly before handing over the vessel to the respective buyers, a legacy case has resurfaced prompting official authorities putting a maritime lean on the vessel, which essentially means prohibiting us from handing over the vessel to the buyers. Luckily, the sales contract is structured in a way that we have a relatively wide delivery window stretching into -- stretching well into 2026. So as we speak, we're working together with the official authorities to get rid of that lean and then parallel also obviously with the buyers trying to deliver the vessel to them at some point in the future. For the time being, the vessel is on time charter and us still being the owners, obviously, we benefit from that locked in cash flow on that specific vessel. Constantin Baack: Then there is a question regarding the newbuilds. Could you talk about the purchase options for additional newbuilds? When do they expire? Do you think they are likely to be exercised? First of all, there are some of the options that we held -- have already expired, in particular related to the earlier newbuilding orders earlier this year, whilst others run until early 2026. So we are in active discussions on further newbuildings, including related to the options. We believe the deals that we have done this year are attractive. And we are, hence, considering to possibly do more. But that's kind of where we are on the options. Then there's, I would say, a related question and more on the fleet, and that is should we expect additional sales over the coming quarters? Or do you view rechartering as a more attractive proposition? I think it's -- as always, a bit of a balancing in the end, the mix of a mathematical calculation and also strategic consideration when it comes to the fleet profile. We are and we have done a number of forward fixtures. We are, at the same time, also in discussions to do more forward fixtures, but there's also a pretty healthy secondhand market with vessels actually not just being chartered out on forward positions, but also being possibly sold on forward positions, and we are exploring both. What I would say as a general comment is that looking at the charter coverage for next year, 92% and '27, 55%, we do believe that in the coming weeks and months, unless you know the market completely goes sour, which again, we don't expect that we would see through a mix of vessel sales potentially, but also some additional forward fixes that we will be able to increase the coverage certainly for '27 as a result of that. And therefore, we do believe -- and again, these decisions about chartering or selling are linked to condition of the vessel, design of the vessel, attach charter of the vessel also, to some extent, dry dock cycles, et cetera. So there are a number of factors that we always consider. And as you have seen over the last years, sometimes the decision is then to charter the vessel out and maintain the optional value at the end of the charter with more upside and sometimes the decision is to sell. I think currently, we are in a market where we're both depending on the specific vessel, options are available. And I would not rule out that we will also be a seller of ships in the near future, but I will definitely also think that we will see more forward fixtures from us in the weeks and months ahead. Moritz Fuhrmann: Then we have a question on the vessel and the lifetime of vessels. Do you think old vessels will keep getting new classification as long as the market is good or could future environmental demand force scrapping earlier even if the market is good. Could a 30-year-old ship get a new classification if the environment is not an issue and the market is good? I mean theoretically speaking, even a 40- or 50-year-old ship can get a new classification. It obviously is an economical and a financial decision, as you say, if the market is good and the income justifies paying a high price, which it is today, bringing a vessel through the fourth, fifth or even sixth dry-docking cycle. We believe that age becomes less and less relevant. So looking at the environmental impact becomes more important. And why do we think that? Because we have, in our own fleet, for example, retrofitted 20-year-old vessels, making them 20% or even more than 20% efficient relative to peer vessels, and that sort of age bracket. So age becomes less relevant. And with those retrofits, we are making sure that these vessels, despite of the age will be in compliance with the regulatory pressure going forward. So it's a bit of a mix of financial view on the vessel and also the vessel itself being eligible for a retrofit. There are certainly vessels where a retrofit will not achieve the efficiency gains that we have seen on our vessels. So yes, we have retrofitted 20-year-old ships, and can they trade up until 30, 35 years? Yes, certainly. But there will also be obviously a financial element to that calculation. Constantin Baack: Then there is another question, which is reserving some parts of dividend payout for investment has been a reason for share price drop in Q2. Does it mean that at some point, MPCC will return to pay high dividends again? Or this will be followed as a strategic approach to reinvest more and add value to the company instead of being a sole dividend payer in future? Okay. So it's basically a capital allocation question here, the way I take it. And let me say that I think share price dropped in Q2, I would not solely attribute that to the adjustment of dividend policy. I think a lot is also sentiment driven. I mean Q2 was obviously the hey days of the initial period of the Trump administration with a number of curveballs and uncertainty on global trade, et cetera. As far as the capital allocation question is concerned in terms of high dividends versus investments, the way we see it is that we have introduced now a balanced capital allocation or payout strategy, which provides return to shareholders, return of capital to shareholders, but at the same time, allows the company to continue to develop and continue to create long-term value, which is in the best interest of the company, its stakeholders and its shareholders. And therefore, we have reallocated and have decided that earlier in the year to reallocate some of the otherwise, dividend amounts to also grow and invest. Had we just continued to pay out dividends, we would basically be unwinding a company that, in our view, has a very good value, has a very good value proposition. And I think, in particular, also the transaction that we have concluded this quarter are a reflection of this. And that applies to both the forward fixing as well as the newbuildings and the fleet renewal. And as we have discussed throughout the presentation, having a 75% kind of equal fleet on the water now whilst operating on a moderate to low leverage scenario, we believe this is a very good basis for a continuation of adding value and creating long-term value to shareholders. So never say never on dividends, but I think we now have a balanced dividend policy out there. And for the time being, we see significant opportunities in the market. We believe the newbuildings that we have done are very attractive and we believe this is also attractive going forward to possibly conclude on a few more on that route. Moritz Fuhrmann: Then we have a CapEx-related question. Can you add some color on the dry docking schedule for '26, '27 relative to '25? Only speaking for the coming year, we expect of having 18 dry dockings next year, which is a relatively strong increase from the number of dry dockings that we have had this year, although it is slightly below the year before. So 2024, we had around 20 dry dockings. Now for '26, we expect to have 18 dry docks. So it's quite an operational challenge, making sure all the vessels are being docked properly. But we've been there before. So we have a fair share of experience of managing as many vessels going through dry docks in Europe and in the Far East. Constantin Baack: At least for the time being, there are no further questions, we would hold up the line for a bit. But since there have been a number of questions raised and we don't see anything coming up. We would conclude the call at this stage. Thank you, everyone, for your interest and for the questions and the engagement. We -- just to sum it up, we believe it has been a very good quarter in many aspects, in financial and operational performance, but certainly also in adding value for the future, providing the forward fixtures, some additional newbuildings, and we are excited about the next quarters ahead and looking forward to staying in touch. All the best. Take care. Bye-bye.
Operator: Good morning, ladies and gentlemen, and welcome to the Rogers Sugar Inc., Fourth Quarter 2025 Results Conference Call. [Operator Instructions] Before we begin, please be reminded that today's call may include forward-looking statements regarding our future operations and expectations. Such statements involve known and unknown risks and uncertainties that may cause actual results to differ materially from those expressed or implied today. Please also note that we may refer to some non-IFRS measures in our call, please refer to the forward-looking disclaimers and non-IFRS measures, definitions included in our public filings with the Securities Commission for more information on these items. A replay of this call will be available later today. The replay numbers and passcodes have been provided in our press release, and our archived recording of this call will be available on our website. I'll now turn the call over to Mike Walton, President and CEO of Rogers Sugar. Michael Walton: Thank you, operator, and good morning, everyone. Thank you all for joining us today to discuss our fourth quarter and full year 2025 results. I'll begin today's call with an overview of our performance for the quarter and the year, including key highlights from both our Sugar and Maple segments. I'll also provide an update on market conditions and how we are managing through ongoing volatility, particularly regarding trade and tariffs. Next, I'll discuss the progress we've made on our LEAP project which is central to our business strategy in Eastern Canada. And I'll touch on our continued commitment to operational excellence, disciplined capital allocation and our ESG priorities. After my remarks, I'll turn the call over to J.S. Couillard, our Chief Financial Officer, who will review our financial results in greater detail, walk through our segment performance and provide additional context of our outlook for 2026. We'll conclude with a summary and then open the line for questions from the analysts. As usual, we have an investor presentation accompanying this call. This presentation is available on the Investors section of our website if you want to follow along. This past year, we put our business and our Rogers refined strategy to the test. I'm pleased to say the results we are reporting today demonstrate clearly that we delivered great success. We faced challenges on multiple fronts. Global trade shifts, commodity price swings and regulatory uncertainty, but we stayed focused on what matters most, delivering for our customers, creating value for our shareholders while maintaining a safe work environment for our employees. By emphasizing operational excellence, supply chain agility and disciplined execution, we managed to steer through these challenges with minimal disruption. This marks the fourth consecutive year of increased profitability for our business, a direct result of the Rogers refined journey. We are proud to report record results again in 2025, with adjusted EBITDA surpassing $150 million for the first time in our history. Both our Sugar and Maple segments were key drivers of this progress, and I want to recognize the team's consistent execution year after year. Our adjusted net earnings for fiscal 2025 exceeded $72 million, which is 9% higher than last year and more than double what it was 5 years ago. We are delighted with where the business stands today when it comes to profitability as well as the strength of our financial position and cash flow generation. This is a strong foundation for the future of our business as we move forward on the delivery of our LEAP project. We believe the completion of the LEAP project will mark the beginning of the next step change in our future profitability. These results are even more meaningful considering the hurdles we overcame along the way. Our team navigated a port strike in Montreal, the threat of a nationwide rail strike, equipment breakdowns at our Montreal refinery and ongoing pressure and uncertainty from U.S. trade policy. Our ability to deliver these financial results and execution outcomes in the face of these kinds of headwinds speaks to the strength of our business fundamentals, the effectiveness of our strategy and the commitment of our people. Turning to our results. Both our Sugar and Maple segments continued to perform well throughout the fiscal 2025. We saw healthy demand in our core markets with our teams responding quickly to changing customer needs and capitalizing on growth opportunities. Volume in our Sugar segment, although lower than anticipated increased by nearly 4% in 2025 compared to last year. The sugar market continues to reflect the impact of inflation on purchasing patterns with some softness in demand as food manufacturers adjust to higher prices for ingredients across the board. Despite these pressures, underlying demand for refined sugar remains stable, and we continue to prioritize in our operations to support our customers through these market cycles. Our Maple business continued its upward trajectory with a 14% increase in sales volume as we expanded our presence with both existing and new customers. Around the world, consumers are discovering this unique goodness of this all-natural sweetener. The quality and availability of the crop were important factors in our ability to expand our market presence and deliver consistent results in Maple. Looking forward, we remain focused on supporting producers and maintain reliable access to supply as global demand for maple syrup continues to grow. Our strong cash generation continues to support both strategic investments and consistent shareholder returns. We also made meaningful progress on our ESG commitments further embedding sustainability and community engagement into our business. In summary, we are entering 2026 with a solid foundation, a clear and proven growth strategy and confidence in our ability to deliver value even as the external environment continues to evolve. Our ability to deliver these results is a testament to the strength of our Rogers refined operating model. We have continued to modernize and invest in our operations, manage cost effectively and prioritize customer needs particularly as we work through market cycles and trade-related uncertainties. Rogers refined speaks to the way we operate every day. Our teams know what's expected and they deliver. In this culture of accountability and innovation that gives us the confidence to navigate uncertainty and capitalize on new opportunities. Now turning to our Eastern sugar expansion project. A key highlight this year has been the progress of our LEAP project. This expansion is central to our long-term growth strategy, positioning us to meet rising demand for refined sugar across Canada. Construction activities in Montreal are advancing. There are a lot of new contractors on site working on the refurbishment of the building and the installation of new refining equipment given our temporary outlook for softer market demand in the near term and our desire to proceed as prudently and safely as possible, we made the decision to extend our expected in-service date for LEAP to the first half of calendar 2027. This decision affords us some additional time to execute on this complex undertaking while better aligning our in-service date with market demand trends. Executing this major construction project while maintaining production at near full capacity requires careful coordination to ensure the safety of employees, contractors and the facility itself. We are executing LEAP with a strong focus on safety. Safety must be our top priority and the rigor and learnings from LEAP will be applied across the organization to further strengthen safe, reliable operations at every site. Our estimate of the cost to complete LEAP Project is unchanged at $280 million to $300 million. We remain confident in the long-term value this expansion will deliver for food manufacturers in Central Canada and beyond. And I'd highlight that we continue to see food manufacturers advance their plans to add capacity in Canada with a notable ribbon cutting on the new chocolate factory in Ontario in mid-November. As a reminder, Central Canada is where we see the bulk of the demand growth. So by expanding capacity in the region, we can serve that demand locally and reduce shipping costs that come from having to bring sugar east from our Vancouver and Taber sites. And as I said earlier, we are in the best financial condition in our history. Our financial strength enables us to fulfill our ambition for growth and modernization through the LEAP project and through future initiatives. Now I'll turn the call over to J.S. for a discussion on our financials. Jean-Sebastien Couillard: Well, thank you, Mike, and good morning, everyone. I will now begin my financial overview of the fourth quarter and the 2025 fiscal year. While volume and revenues are always important, our primary focus continues to be on profitability, especially adjusted EBITDA and free cash flow, which we believe are the most important measures of the performance of our business. For the fourth quarter, adjusted EBITDA grew to $39.5 million, up from $38.3 million last year. For the full year, we delivered more than $150 million in adjusted EBITDA an increase of nearly 6% over 2024 and the highest performance in our history. Free cash flow also improved significantly in 2025 at $90 million compared to $73 million in 2024 after excluding a $14 million timing difference on income tax payments. This represents an improvement of 23%. This free cash flow gives us the flexibility to invest in our business, fund our key growth projects and return value to shareholders, all while maintaining a healthy balance sheet. Our consolidated revenues for the fourth quarter came in at $323 million, down about 3% from last year. The main reason for that decline was lower average price for Raw #11 sugar and lower sales volumes in the Sugar segment. As a reminder, raw sugar prices for us are mostly passed to customers through our hedging process and as a result, have no material impact on profitability. The decline in sugar revenues was partially offset by higher revenues in our Maple segment. On a full year basis, revenues were up by nearly 7% to $1.3 billion which really speaks to the resilience of our business and the ability of our teams to deliver growth even in a year with plenty of moving parts. Despite the fluctuation in the top line, our team delivered where it mattered most, profitability and cash flow. This underscores the importance of our focus on consistent profitable and sustainable growth. Now let's have a look at the individual business segments. Starting with sugar. The story this quarter is all about adaptability and margin discipline. Sugar sales volume for the fourth quarter at 196,000 metric tons was lower than expected, down by 4% from last year. The reduction was associated with nonrecurring production issues from one of our industrial customers and lower liquid volume from the loss of 2 customers in Western Canada during the past year. Despite the lower sales volume, our focus on maintaining strong profitability allowed us to exceed our adjusted EBITDA target at $35.1 million, up 3% from last year. For the full year, adjusted EBITDA for the Sugar segment reached $129 million, a 4% increase from 2024 and a record for our business. Over the last year, we have seen a lower growth rate in sales volume and related margin for industrial customers. We see this as cyclical and are attributing to softer market conditions to grower food inflation from higher costs of other ingredients impacting overall demand, such as cocoa. That being said, our team has been able to pivot and take advantage of business opportunities across markets to protect margins. We are still confident that the sugar economics of the North American market are aligned with our business strategy. On the cost side, we have seen our production costs returning to normal in the second half of 2025 after some nonrecurring maintenance challenges in Montreal in the first half of the year. We've also seen an increase in our distribution costs, especially in the first half of the year as we made adjustments within our supply chain to meet the needs of our customers. Finally, the increase in our administration costs for the year was mainly due to severance costs incurred in the third quarter and higher share-based compensation expense related to a higher share price in the later part of the year. Our adjusted gross margin per metric ton was $237 in the fourth quarter, higher than last year by $20 for the full year. Adjusted gross margin per metric ton at $224 was slightly higher than last year's amount of $222. On the Maple side, we are seeing the benefit from improved global market demand, supported by a strong harvest and proactive supply management. Maple revenues in the fourth quarter were $64 million, up by 6% year-over-year from higher volumes sold. In the full year of 2025, total Maple revenues were $263 million, a 13% increase as sales volume reached a record of 53.4 million pounds. The higher sales volume supported our expected profitability growth. For the fourth quarter, adjusted EBITDA for the Maple segment was $4.4 million, up by 8% from last year. For the full year, the Maple segment delivered a record adjusted EBITDA of $21.3 million, $3.3 million higher than last year. Over the last 3 years, profitability of the Maple segment has improved by more than 60%. The gross margin of our Maple segment, aligned with expectations for the full year at 10.4%. However, we saw a lower margin during the second half of 2025 due to an unfavorable mix of products and customers. We see this situation as temporary and going forward, we are anticipating overall gross margin to be slightly above our target of 10%. For the full year, Lantic Maple contributed 20% of our consolidated revenues and 14% of our consolidated adjusted EBITDA. The combination of volume growth and disciplined operational management meant we capture more margin for every sales, underscoring Maple's growing contribution to our overall profitability. We believe our Maple business is well positioned to take advantage of the favorable global market dynamics going forward. I want to pause here and tell you that we are really pleased with the results of both business segments and their contribution to our record profitability in 2025. We are also pleased with our overall bottom line results. Adjusted net earnings for the year came in at nearly $73 million, up by 9% from last year. On a per share basis, adjusted net earnings per share was $0.57 for the full year, slightly higher than last year, even after the 20% increase in share outstanding from the LEAP-related equity issue done in March 2024. On the investment front, capital expenditures totaled $95 million for the year, with the majority about $75 million, allocating to advancing the LEAP project. We remain disciplined in our approach to capital allocation balancing the need to fund strategic growth initiatives with the importance of maintaining a strong balance sheet. Our funding plan for the LEAP project remains robust as we are drawing on a well-balanced mix of sources including internally generated cash flow, the equity proceeds from last year's share issuance, our revolving credit facility and government-backed loans from Investissement Quebec. We continue to keep a close watch on financial market conditions as we evaluate our future funding requirements. Thanks to our strong balance sheet and solid cash flow, we are well positioned to move quickly and strategically when opportunities align with our business objectives. We are proud to deliver steady, reliable returns even as we invest for future growth. Our strong financial performance allowed us to continue rewarding our shareholders. We maintain our quarterly dividend at $0.09 per share, returning a total of $46 million to shareholders through the year. For 2025, we provided a dividend yield of about 6% to our shareholders. The strong financial results also caused a favorable decline in our payout ratio to approximately 64% compared to 67% in 2024 and 85% in 2023, allowing us to use the excess cash to maintain our strong balance sheet. With that, I'll turn the call back over to Mike to provide a summary and outlook for 2026. Michael Walton: Thank you, J.S. As we look ahead to 2026, the outlook is still challenging with changing market conditions. That being said, I believe we are well positioned to navigate whatever comes our way by closely monitoring conditions and adjusting quickly as needed. A core part of our execution is actively managing our sales to ensure we're always positioned for the most economically advantageous outcomes. This means being disciplined about where and how we allocate volume, focusing on the right opportunities and making sure we're not just chasing top line growth but driving consistent and sustainable profitability. Although tariffs and trade policy have so far only had a limited effect on our business and that of our customers, we remain prepared to act swiftly should conditions shift. Our strategy is straightforward, maintain close relationships with our customers, exercise disciplined cost management and invest with a long-term perspective to ensure we remain resilient and competitive. Our recent quarterly results marked a significant improvement in our profitability and operational execution compared to previous years, a level we believe is durable and repeatable. Our focus for 2026 is to continue delivering steady financial results. Let me start with the Sugar segment. We expect demand and pricing to remain strong in the coming year. Our forecast for 2026 sales volume is between 750,000 and 770,000 metric tons, a slight decrease from last year. This forecast reflects some ongoing uncertainty in export markets and softer demand from a handful of industrial customers dealing with higher costs for other ingredients. Domestic sales continue to be robust, and we'll prioritize serving those customers while remaining alert to select export opportunities. At Taber, our beet harvest this season was in line with expectations, thanks to stable acreage and normal growing conditions. We're currently processing the crop and anticipate wrapping up by the end of February. Production and maintenance costs will edge slightly higher this year, driven by market factors and a commitment to maintaining reliable operations. In Maple, we anticipate another year of healthy growth, building on recent momentum. We're projecting volume to increase by up to 3% in 2026, supported by sustained demand from current customers and new business in international markets. Our outlook assumes favorable crop yields and continued access to supply. Both segments reflect our best view of current market trends, but we recognize that market dynamics can change rapidly and we're ready to adjust as needed. On the investment front, we plan to allocate about $27 million across our core business this year, excluding LEAP-related spending. LEAP will continue to be a major initiative in 2026 as we press forward with the construction and installation of new refining and logistics capacity. Balancing this project with day-to-day operations is challenging, but essential to ensuring uninterrupted service for our customers. As J.S. mentioned, our capital spending is well aligned with our funding plan. To sum up, we've delivered yet another successful year in keeping with our focus on consistent, profitable, sustainable growth. As I have stated previously, we are a very different company now with a 4-year track record to prove it. Our priorities are clear: stay close to our customers, uphold our commitment to safety and continuous improvement, manage costs to remain competitive and advance the LEAP project to support future growth. Underpinning all of this is our solid balance sheet and prudent financial approach, which provides us the stability and flexibility that will help us meet the needs of our customers and deliver value to shareholders over the long term. In closing, I want to express my gratitude to our teams across all our locations. Your commitment to customer service, hard work and dedication to a safe work environment are paramount to our success. And finally, I would like to thank our customers, business partners for their ongoing confidence in us. I will now ask the operator to open the line for questions from the analysts. Operator: [Operator Instructions] Your first question comes from Michael Van Aelst with TD Cowen. Michael Van Aelst: And good results today. But I'd like to talk to you a little bit about your outlook to start with. You mentioned refined sugar demand was stable in Canada and increasing globally. But you're forecasting lower volumes. Is that an operational concern? Or is this like why would your -- why do you expect your volumes to be down the next year if demand is stable? Michael Walton: Mike. Good to hear from you. Yes, what we're seeing in the lower demand outlook is export sales. Those are always lower margin opportunistic sales. And with some of the trade and tariff dynamics, and as everybody knows the tariff on Brazilian sugar is about 1 example, that has stemmed our appetite for export sales until things change. Michael Van Aelst: Okay. So when you look at your -- the LEAP project and you see the increased capacity coming on, obviously, this is allowing you to delay or slow down the progress of this, but this is the third time that you've delayed it, I think, in the last year or so for a total of I, think it's 15 months now, if my math is right. So what -- at the start of the project, you said that you had customers lined up for the increased capacity. What are these customers doing -- going to do to fill that their facilities during -- in the interim while you complete the expansion of the facility and do you still expect the demand to be there once this facility ramps? Michael Walton: Yes. All great questions, Michael. And so this is only our second delay of the project. And we look at the economic conditions in the market and the supply and demand of our customers, both internationally and domestically, and we make decisions on the fly as we get smarter with the needs. And what we decided to do is we could have kept -- one of the options certainly was to keep the original time line. But that just would add more cost because it's more over time, more labor. And given the opportunity to just stick on pace with the cost side and just extended time we've decided to take that option, given the softness and some softness in the domestic market short term. That, we believe, will recover. I mean it's -- you're seeing it in every sector in Canada. It doesn't matter if you're making cars or aluminum widgets or sugar-containing products. So investments have slowed, but they're still going to be there in the long term. The growth will return. We're quite confident in that. We've met with major customers around the globe in the last few weeks, and their commitment long term is still in place to invest in this market. We did see 1 ribbon cutting a couple of weeks ago as an example of that. And as you know, there's been other public announcements of additional capacity coming on over the next couple of years. Those are a little slower than what we saw a couple of years ago as when those would start up, but they're still committed to coming to the Canadian market. So it gives us our confidence long term. And as far as needing to supply the market for -- because there is still -- as we do know, we're still running near capacity city in the East. That's where the growth is in the Canadian market is in the East. We still have untapped capacity in our Western operations so we can pull sugar into the East, if needed. Michael Van Aelst: Okay. All right. And then with lower volumes in -- on the sugar side this year, I'm assuming mix is going to improve if your exports are down and your industrial is down. Michael Walton: That's correct. Michael Van Aelst: Okay. So overall, for sugar, did I hear you expect stable in fiscal '26 from a profit standpoint? Jean-Sebastien Couillard: Yes, Mike, it's J.S. here. So we're expecting our results on the Sugar segment to be very stable right now. So the business, the volume that we are not going to have this year is exports volume and allow us to focus more on the domestic market and the margin is usually higher, obviously, on the domestic market. Michael Van Aelst: Okay. And then on the Maple side, yes, a much stronger volumes than we expected. And I think that you guys were guiding to for the fourth quarter. Was all of that export business? And is that why the unit revenue was down year-over-year? Michael Walton: Yes. No. As you know, Michael, in the Maple business, we export over 50 countries in the world. So we're -- it's an export business for us. We have a strong domestic presence, but it's largely an export business for us. And conversely, it's why we diversified our EBITDA strategy when we bought into the Maple business, conversely, to sugar and other commodities and cocoa and whatnot, shrinkflation and consumer inflation has not impacted Maple globally. And it's still growing more than what we would expect in more than any other food commodity. And so we're benefiting from that growth as the consumers turn to that luxury item and that natural sweetener of choice in some countries, and we're benefiting on that ride. And we -- as you know, over the past few years, we've right-sized that business. We've invested in that business. We've got a lot of automation, and we're well positioned to manage that growth as it continues to come to us. Michael Van Aelst: Okay. So can you just explain help us understand the gross margin -- the weaker gross margin in the second half of this year and what's going to get back over 10% going forward? Jean-Sebastien Couillard: Mike, it's J.S. here. So what we've experienced in the second half of the year is what we would call it an unfavorable product and customer mix. So some of these -- the incremental volume we have to use some syrup that was a little bit more expensive to do the type of product that we were doing hence the reduction in margin. And so we've actually aligned our purchase for next year to be able to have to meet the need of the customer. So I'll give you an example. If you have what I would call it industrial grade products and you have to use higher-quality syrup to fulfill the orders because you have more orders than you were anticipating. You're still making money, but we're not making as much as we would anticipate. So we've actually aligned our supply chain to be able to have more of those type of products to supply our customers for next year. That's why we're confident that -- and we've seen it over in the first period of the year, and we have a forecast for next year that we are going back above the 10% and I would also say that in some cases, in some of those products, offering demand in the maple syrup is actually the demand is strong, and we've been able to pass some of those price increase to customers. Michael Van Aelst: Okay. So bottom line is the grade of -- you've aligned your supply, the grade of your supply to the customer demand. Jean-Sebastien Couillard: Yes, that's a good way to put it. Exactly Mike. Michael Walton: The spike in demand created some timing for us. It's a good kind of problem. Operator: Your next question comes from John Zamparo with Scotiabank. John Zamparo: I wanted to follow up on LEAP and the move to mid-2027, I'm not quite clear, I hope you can add a bit more color here. What developed over the last few months to make you want to move the expected completion date? Was it something related to the construction. We know it's a very complex project. Or was it related to demand and what you're seeing from customers? Michael Walton: Yes First of all -- John, yes, it is a complex project. And the extra engineering work that's going on, on site and then aligning with the construction work following engineering is critical for the safety of the site. It's an old building, 140 years old and there's a lot of work and a lot of tie-ins to be done, and we're doing this while we have a plant running right beside it with our employees working alongside the contractors. So in the interest of safety of the employees, safety of the site and the consistency of our production and no interruptions in melt in which anecdotally, we've had less than 9 hours of interruption in the plant over almost 2 years. So good coordination, good outcome and it's the right focus to deliver a safe, reliable project at the end and a little short-term softness in volume tariff related and export related as it gives us a window to use the extra time. John Zamparo: Okay. That's helpful. And then maybe we can move to the sugar volumes outlook, specifically on cost inflation and cocoa prices, I wonder how you think about these because they've come down pretty sharply, but it's still extremely elevated versus years ago. So I wonder what you're seeing from your customers who have exposure to that commodity. In particular, those who have manufacturing facilities in Canada, but ultimately export to the U.S. Michael Walton: Yes. Thanks, John. Great observation. That's one benefit of me being around here 45 years. This is not my first cycle like this. I've lived through these spikes in commodities and supply and demand. We're seeing it's not just inflation, it's shrinkflation, too. So if you look at units of -- let's just use an example of a chocolate bar of any type. They've reduced them in size so it reduces pounds, but not units and sales. And so it takes consumers a little while to come back and manufacturers time to come back and increase the size of those bars, we've all seen it over our lifetimes. But a lot of things are -- when we go through these cycles, a lot of things aligned that support the change, and as you referred, cocoa prices are down substantially. Sugar prices, #11 sugar prices, which if you manufacture in Canada, you get a benefit from are at a 5-year low. We just come off of a 5-year low in the last 2 months, and that was the benefit of foreign exchange. It just makes calendar the right place if you're going to invest and continue to participate in the SCP market for on a North American basis. So those things kind of help turn that curve. It will take a little longer because just like anybody else, our customers' customers have bought in inventory and that higher-priced inventory based on higher commodity costs has to get flushed through the system. And it will take some time. But in the past, it's always come back. So I have confidence it will as well. John Zamparo: Understood. A couple more. I wanted to clarify some comments on Eastern Canada from the MD&A. I think you'd said expected growth in F '26 is coming from the East, but it also referenced or the outlook also referenced lower-than-expected demand from that region. I wonder if you could add a bit more color there. Jean-Sebastien Couillard: John, it's J.S.. What we have seen is that the rates of growth that we have noticed over the last few years, we're not expecting the same growth rate that we've had so we're expecting a more stable growth rate may be coming back to what used to be in the 1% to 2% rate on an annual basis versus what we have seen over the last 2 years, which was a significant growth in this market. It's still the strongest part of the market. Obviously, in Canada, most of the food transformation business is in the Montreal down to Southwestern Ontario Corridor. So we're still well positioned for that. But we're not expecting the growth to be as strong as it was in the last 2 years. John Zamparo: Right. Okay. Understood. And then lastly, on Maple, I guess it's a follow-up to the prior question. volumes and demand continue to thrive on this product, and it seems like there's just complete inelasticity from consumers. I wonder what you attribute that to internally. Is there something structural? Is it just customer preference for this product? I wonder how you think about that. Michael Walton: It's a great product. People love it. The more people try it, the more they stick to it. It's just simply a great product. And we've done a lot of work. We've got probably one of the best teams in the industry that's connected globally to the customers and consumers and trends. And we're probably at the front of that line, capitalizing on those growth opportunities and trend commitments that we're seeing across the sector. So it's execution and it's opportunity. It's always a success, right? Operator: Your next question comes from Nevan Yochim with BMO Capital Markets. Nevan Yochim: I just wanted to start on sugar volumes in Q4, the decline you referenced from a large industrial customer in Montreal. Are you able to quantify that impact it had on Q4? And then is that fully isolated to fiscal 2025? Michael Walton: Yes. Thank you, Nevan. Yes, it was 1 customer largely in Eastern Canada that had an operational issue and it impacted us by less than 4,000 tons or about 4,000 tons. It was isolated. It was -- and it has already returned to normal production. Nevan Yochim: Okay. Great. And then just to put a bit of a finer point on the volume outlook for 2026. Can you confirm, is the full decline expected to come from exports to the U.S. And then can you just frame the economics of exporting to the U.S. today based on current tariff rates, which I believe were recently reduced for imports coming from Brazil? Michael Walton: Yes. Nevan, so first point clarification, the sugar was not included in the reduction of tariffs to the United States from Brazil. So there's still a full tariff rate on Brazilian sugar, which, of course, Montreal uses raw sugar from Brazil so it excludes us on participating in exports to the U.S. out of Montreal. Most of the reduction you've seen is in the export segment. And of course, the tariffs change, and we have unutilized capacity that we have in place somewhere else. We'll jump right back in there. We've always done that over the years. And then if you look at some of the other softness of some liquid volume predominantly in Western Canada with a couple of shifts in customers that one that has left the market altogether and one's gone back to another sweetener. Nevan Yochim: Okay. Got it. And just lastly for me on sugar margins into 2026. Can you frame about how you're thinking about the year as we see the lower margin exports decline, could that potentially lead to a year-over-year increase in the gross margin per metric ton. Jean-Sebastien Couillard: That's a good question. I think on a unit basis, we can -- it might lead to a slight increase. However, the market is fairly stable right now on the domestic side. And so we also have to consider the impact on our cost. So overall, we think we're going to have a flat to slight increase on sugar margin next year. Operator: Your next question comes from Zachary Evershed with National Bank. Zachary Evershed: So you guys mentioned the start-up was delayed about 6 months to keep over time and cost down and CapEx guidance was maintained. Do you think there's going to be any effect of the increased complexity and the delayed start-up reflected in your OpEx costs on the income statement instead? Michael Walton: No, not at all. Zachary Evershed: And then in Maple, your EBITDA margins are getting closer and closer to your gross margins. Can you walk us through those efficiency gains and whether there's anything more to get incrementally there? Jean-Sebastien Couillard: Well, the margin in the second half of the year, we've seen a slight decrease. We mentioned a little bit earlier, Zach. And the reason being having to use some higher grade syrup to fulfill some more of industrials, I think that will -- it actually has resorted itself in 2026. And from our point of view right now, our maple from an operational standpoint and cost point of view, we're fairly much optimal. And so we're expecting this trend to continue. Zachary Evershed: Then last one for me. What types of incremental financing are top of your list right now? And what are you watching in capital markets that could prompt you to pull the trigger? Michael Walton: Well, it's a good question. A few things we're watching. Obviously, we had about $150 million of converts that we paid back last year. And then we are -- what we're looking at right now is we refinanced about $115 million of that. So we are looking at different options going forward. So we're going to pace that with the pace of spending of our LEAP Project. So if we go out, it's not too much to finance our LEAP Project, but more about replacing some of the convertible debentures that we had paid back in 2025. Bear in mind that because we did the equity issue so we had a bit more cash than we had initially anticipated, that's why we have not gone out in the market. So we'll look at rates -- we'll look at market conditions. I think what you've seen in our package is that we are going to file our prospectus very soon. So our prospectus will allow us to quickly access the market if we see an opportunity. Operator: There are no further questions at this time. I will now turn the call over to Mike Walton for closing remarks. Michael Walton: Thank you, everybody, for your interest in Rogers Sugar, and we look forward to seeing you at the next quarter. Hope you have a great safe holiday season. Operator: Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines.
Constantin Baack: Good afternoon and good morning, everyone. This is Constantin Baack, CEO of MPC Container Ships, and I'm joined by our CFO and Co-CEO, Moritz Fuhrmann. Welcome to our Q3 2025 earnings call. Thank you for joining us today to review MPC Containership's third quarter and 9 months results for 2025. Earlier today, we issued stock market announcement covering our Q3 results for the period ending September 30, 2025. Both the release and this presentation are available in the Investors section of our website. Please note that today's discussion includes forward-looking statements and indicative figures. Actual results may differ materially due to risks and uncertainties inherent in our business. Before diving into Q3, let's briefly reflect on the first 9 months of the year. We are pleased to report another strong quarter, underscoring the resilience of our business amid ongoing macroeconomic and geopolitical uncertainties. Despite regulatory shifts and unpredictable trade policies, the container charter market and asset values remain firm. Time charter rates held up well, secondhand demand stayed strong and idle capacity remained low. While the global order book is elevated, constrained supply in the small to midsize segment and aging fleet as well as shifting trade patterns support a favorable balance. Volatility remains so we do not expect smooth sailings ahead. We focus on what we can control. Continued disciplined fleet modernization, forward fixing at attractive rates and periods, increasing coverage, maintaining a strong and flexible balance sheet as well as strong investment capacity. Our disciplined capital allocation approach has delivered strong returns and dividends, and we remain committed to sustainable shareholder value. Looking forward, we see opportunities to selectively divest, invest and grow, leveraging favorable market conditions while staying agile and focused on long-term value generation. We'll explore these themes in more detail during the presentation. And with that, I would like to hand over to Moritz. Moritz Fuhrmann: Good morning, everyone, and also welcome from my side to MPCC's earnings call for the third quarter of 2025. Our agenda for today starts with a review of Q3 highlights, after which we will spend some time on the current market dynamics and the outlook for the remainder of 2025. Starting with the highlights on Slide #3. We continue to see a very strong quarterly performance based on revenues $126 million and adjusted EBITDA for the third quarter of 2025 of USD 75 million. As a result of the very good financial performance, the Board has declared the company's 16th consecutive dividend with $0.05 per share, basically representing 50% of the adjusted net earnings for the third quarter of 2025 and also being the upper end of our dividend payout ratio range. On the asset side and the fleet transition side, we continue to be very active as we handed over 3 previously sold vessels to the new respective owners, bringing the total to 10 vessels this year. And on the flip side, we have been equally busy on new building sites, and we're able to reinvest the sales proceeds by contracting so far this year, eight 4,500 TEUs and two 1,600 TEUs for a total consideration of around $525 million, bringing the total order book today to 11 vessels. The deliveries of the newly contracted vessels will start from the second half of 2027. And what is important to note, I think, is that all our new buildings have been ordered against very attractive long-term charters with durations of 3, 7, 8 and 10 years, allowing for very meaningful derisking throughout the fixed time charter period. While -- and I think that is important, at the same time, retaining significant upside potential during the remaining lifetime of the vessels. These transactions, we believe, are cementing our position in the market as the leading tonnage provider in the feeder segment and also underscoring our strategic importance and our relationships with the top-tier liner operators. Our newbuilding activity is also a result of the current positive market momentum, mostly reflected in our most recent chartering activity, we have forward fixed in total, 11 vessels through 2 distinct on blocked deals for durations between 1.5 and 2 years, and at rates between $17,000 and $23,000 per day, obviously, depending on the vessel size and forward delivery window, adding significant average -- a significant coverage into 2028. And the total revenue backlog increased quite sharply, now standing at USD 1.6 billion. And also as a consequence, our open days coverage has increased quite meaningful. So we are now 92% and 55% covered for '26 and '27, respectively. Needless to say that 2025 is fully covered at 100%. Looking ahead into the remainder of 2025, and as the market remains very dynamic. We don't see, as of now, at least, any negative implication as a result of the most recent Red Sea announcement. In any case, we will continue focusing on further driving our fleet transition as well as retrofit program to improve the fleet composition and enhance long-term shareholder value. Based on the current market, we increased the revenue guidance to $500 million to $510 million and our EBITDA guidance to $330 million to $340 million. Turning to the next slide and looking at some of the KPIs for the third quarter, gross revenue and adjusted EBITDA came in slightly below previous quarter as a result of the remaining legacy contracts are running off now. The markets are very supportive and charter rates and durations are very strong. However, not at levels we have seen in 2021 and 2022. From a balance sheet perspective and despite having drawn under new senior secured facilities, the leverage ratio with 34.6% is only slightly up relative to last quarter, while the net debt position has decreased to USD 107 million, underlining the conservative balance sheet structure that we have today. And as mentioned before, on the right -- top right-hand side, the Board has declared a dividend of $0.05 per share, which will be paid in December this year. And the operational cash flow generation remains very strong with more than $225 million year-to-date. While the fleet utilization at the bottom right was unchanged at 97.6%, the actual OpEx increased slightly due to one-off nonrecurring items, and we expect a normalization trend for the next quarter. Looking at Slide #5. And I think, very importantly, focusing on the current chartering market as well, in particular, our activity. They recently were clearly evidencing a very strong whatsoever in activity by the line operators. In particular, we see very strong demand for feeder vessels. So actually, to the contrary, we see increased demand for forward fixtures at very strong levels. So contrary to the most recent noise that we have heard and seen around the container market. So looking at the left-hand side and going into the third quarter, we have had 32 open positions stretching into the first quarter of 2027. And in the last few weeks, we have proactively 2 distinct charter package deals fixed 11 of those vessels substantially reducing the open days going forward as we can see it. And the average forward picture that we've done on those transactions is around 12 months, with the longest forward position that we fixed being 14 months out. And the average duration is around 2 years, with very strong rates that are adding around $110 million to our revenue backlog through those transactions. And I think also important to mention all fixtures have been done with top-tier line operators. As the market remains elevated, we still have upside potential through 21 remaining open position starting from Q1, Q2 next year. However, we are already, as we speak, we're already being approached by charters on some of these positions and in line with our chartering strategy, meaning being conservative, we will try to fix also those vessels if we believe, of course, the offered rates and durations are a fair reflection of the current market. In any case, of the future chartering activity, our P&L has great earnings visibility and with a limited number of open vessels in the not-too-distant future, we are very much shielded from any adverse market development. And on the asset side, on the S&P side, we haven't concluded on any further asset -- vessel sales, but we see equally strong liquidity and demand on the S&P side. And we are currently contemplating further asset disposals as we have done in the past, and that would potentially mean materializing very firm asset values that are at least according to our numbers, implying NAV figures of north of NOK 35. On the next slide, we spend a bit more time on the investment side and in particular, our efforts on the fleet transition, where we have been very active ever since the summer this year. So after having ordered four 4,500 TEU vessels over the summer against the 3-year contract, we have recently announced 2 more newbuilding deals for 6 vessels, namely two 1,600 TEUs and another batch of four 4,500 TEUs against 8 and 10-year contracts with top-tier line operators, growing our total order book to 11 vessels. The additional investments follow our usual approach that we have also done in the past as we combine asset investment with cash visibility, providing significant derisking throughout the charter period. As you can see on the left-hand side of the graph, our yet outstanding CapEx commitments of more than $550 million are pretty much covered by the contracted EBITDA, essentially enabling us to realize significant upside value once the vessels are running off their initial charters, sort of vessels that we have contracted. They obviously have a staggered redelivery profile given the different charter durations. But on average, the vessels will be roughly 7 years of age at charter expirations and to put things into perspective, from a value perspective, the current age-adjusted FMV for these vessels is roughly $500 million to $550 million, i.e., a great combination of minimum residual risk while retaining maximum upside potential and what we believe will be a very constructive feeder market into the future. And in general, we have taken and will continue to take a very prudent approach to these investment cases to minimize residual risk. And I think the ability to structure and execute these transactions speaks for itself and it's, I think, a great testament to the importance of MPCC as a strategic partner to the top-tier liner operators globally. Needless to say that these investments are further milestones in our fleet transition efforts to which Constantin will speak a little later in the presentation in the outlook section. However, wanting to underline that we are confident that building an enhanced and future proof as a portfolio will support generating sustainable and long-term shareholder returns for our investors in the future. Turning to Slide #7. The cash flow -- the usual cash flow bridge. So cash flow in Q3, '25 was again dominated by good operating cash flow of $73 million. And on the investment side, we have paid down the first installments under our four 4,500 TEUs that we ordered over the summer against 3-year charters. In addition to the operating cash flow, we had around $50 million cash inflow through newly drawn senior secured debt that is secured against two 3,800 TEUs, and that facility futures a $250 million accordion option that is earmarked to fund further growth in the future. The overall positive cash generation substantially improved the company's cash position and investment capacity to around $420 million by the end of September. And in addition to the balance sheet liquidity, we retain further flexibility through our undrawn RCF. And lastly, by paying our 15th consecutive dividend in September in the amount of $22 million, MPCC continues returning capital to shareholders now north of 1 -- or still north of $1 billion has been distributed ever since we introduced our recurring dividend. And as the Board has today declared the next dividend, it serves, I think, is a very good testament that we will continue to reward shareholders through capital returns. Going to the next slide, we see MPCC's quite conservatively structured balance sheet. We have year-to-date executed on a number of measures, namely vessel divestments as well as drawing secured and unsecured debt facilities to improve the company's liquidity position and therefore, also the investment capacity as we face a, what we believe is needed, fleet-renewal. By the end of the third quarter, liquidity stood at around $470 million. However, pro forma adjusting for expected yard payments in the fourth quarter, MPCC has a pro forma implied liquidity of around $500 million, including a new upsized undrawn RCF that is currently in execution. In view of our fluid renewal efforts and newbuilding CapEx commitments, the corresponding investment capacity is absolutely essential for us. And at the same time, we managed to achieve this capacity without -- I think that is important without compromising the overall robustness of the balance sheet as well as flexibility of the balance sheet with a conservative leverage ratio of below 35% and with 28 debt-free vessels with a fair market value of close to $700 million. While gross debt stands at $550 million, and net debt adjusted for the pro forma liquidity remains very low, and the vessel portfolio that we have on the water with a charter-free market value of $1.5 billion provides additional comfort. Not surprisingly, the current newbuilding commitments will partly be funded through debt, which will be sourced in due course. And the initial discussions we have had with potential lenders indicate a very healthy appetite for more than feeder tonnage, secured by long-term charters. So once fully delivered, the company's gross debt is expected to grow. However, the expected additional leverage will be supported by the cash availability attached to our new builds. Going forward, we will ensure to use the investment capacity as prudently as we have done in the past by identifying and executing shareholder accretive transactions that help building a future-proof fleet. And all in all, MPCC remains very disciplined on the capital allocation side of things, as we have always done. On that note, I hand over to Constantin for the market update and outlook section. Constantin Baack: Thank you, Moritz. I would like to continue with the next agenda point, the market update. Throughout the previous quarters, I noted that volatility is here to stay, and Q3 has confirmed that view. Looking ahead, I expect this environment of heightened uncertainty to persist not only through the remainder of the year, but well into the foreseeable future. Let me give you a quick overview of the 3 major themes shaping our outlook; geopolitical flash points, macroeconomic trends and regulatory uncertainty. First, trade tensions and protectionist policies are disrupting global supply chains. This means higher costs and longer lead times as companies diversify sourcing. Second, regional conflicts and sanctions are creating route volatility and increasing compliance risk. Sanction screening and due diligence are critical. Finally, strategic bottlenecks like the Suez Canal remain vulnerable to political instability and security threats. A single disruption can ripple across global trade. Recently, major liner companies have announced plans to cautiously resume Red Sea transits, starting with limited sailings before a full return. Normalization will likely be gradual as carriers balance security, insurance and network adjustments, potentially easing Cape route costs, but introducing short-term rate volatility. How and when this will be fully normalized remains to be seen. Looking at the macroeconomic picture, global GDP growth is projected to grow 3.2% in 2025, easing slightly to 3.1% in 2026. Growth is uneven, emerging. Asia remains the engine while developed markets slowdown. On trade flows, U.S. container imports are declining, but strong Asian export growth offsets this. Expect East West flows to remain robust, though rate volatility will persist. The IMO net zero framework has hit implementation setbacks, creating uncertainty around decarbonization pathways. We may see fragmented regional schemes emerge, adding complexity and compliance costs. So the big picture, geopolitical risk, macro shifts and regulatory uncertainties are converging, successfully depend on resilience, compliance and strategic agility. Let's move to the -- from the macro picture to the container markets in more detail. Please have a look at Slide 11. The chart on the left shows forward availability of vessels for the next 6 months. What can be observed is a tight supply environment with limited open tonnage in the short term. This reflects strong charter coverage and cautious fleet deployment by owners. The implication is that securing tonnage will remain competitive for liner companies supporting firm charter rates. The chart in the middle compares charter rates and freight rates over time. Charter rates have softened slightly from peak levels, but remain historically elevated due to constrained supply. Freight rates, while volatile, are trending above prepandemic averages, driven by network disruptions and lingering demand imbalances. Importantly, freight and charter rates have never been as decoupled as they are present, highlighting a structural disconnect between lineup profitability and vessel earnings. The key takeaway here is that we believe margins for operators remain under pressure, but owners still benefit from strong time charter earnings. The graph on the right tracks secondhand and newbuilding prices for container vessels. Secondhand prices have stabilized at high levels, reflecting scarcity of modern tonnage and strong residual values. Newbuilding prices remain firm, supported by full order books and higher input costs. Asset values are resilient, but prices for newbuildings remain elevated. Now that we've covered the container market, let's take a closer look at the carriers, the liner operators and how they are positioning themselves for the future. Over the past years, and that can be seen on the left-hand side in the graph, carriers have made a significant financial shift. They've moved from historically high leverage ratios to a position of strong capitalization. The stronger balance sheets give them resilience in a volatile market and the flexibility to invest strategically going forward. What we are seeing now is a clear emphasis in terms of focus of the liner strategy on terminal access as a key competitive advantage, ownership or long-term partnerships are key to ensuring reliability and cost efficiency. Market share still matters, but reliability and service quality have become just as important for customers. Integrated terminal and line operations help carriers maintain schedule control and deliver a better customer experience. On the fleet side, carriers remain opportunistic in the secondhand market, where we see a number of transactions driven by liners, i.e., they are taking advantage of attractive pricing when it appears. At the same time, they're advancing their newbuilding programs, and we now see this taking more and more shape in the small and midsized segments as we have anticipated during the last couple of quarters. Often, this involves partnering with owners and tender processes or bilateral deals to secure competitive positions, but liners are very selective with only a few owners being invited to these processes. So overall, carriers are entering this next phase with stronger balance sheets, a sharper strategic focus and a disciplined approach to fleet renewal, positioning themselves well for operational reliability, the energy transition and importantly, for us, as owners, building slack into their network to better absorb disruptions. With that in mind, let's move on to the next slide. Now that we have looked at the carriers positioning, let's turn to supply and demand fundamentals, starting with the supply side and then the trade growth outlook. The first graph on the left shows the order book and what stands out is that it's heavily geared towards the larger vessel sizes. In contrast, with the 1,000 to 6,000 TEU segment, the segment in which we are active, more than 800 vessels are over 20 years of age. This aging fleet means we expect the need for additional tonnage in the smaller sizes going forward, especially to serve regional and niche trades. The second graph on the right-hand side highlights the trade growth outlook. There are 3 key drivers here. First, stronger GDP growth in emerging markets compared to advanced economies will underpin demand. Second, the diversification of sourcing strategies, companies spreading productions across multiple regions will continue to drive robust volume growth. And third, intra-regional trades remain critical. In fact, 98% of vessels deployed in these trades are smaller than 5,100 TEU, reinforcing the need for smaller ships in the global fleet mix. So when we look at supply and demand together, the picture is clear. While the order book is concentrated in larger vessels, the aging smaller fleet and strong intra-regional demand point to a structural need for renewal in the midsize and smaller sectors. As we look ahead on Slide 14, the market continues to be shaped by a range of uncertainties. But these challenges also present opportunities, the very forces disrupting global shipping are acting as catalysts for innovation, differentiation and also long-term resilience. Looking at U.S. policy, firstly, they continue to create a volatile container market environment and a volatile global economic environment in total. Ongoing uncertainties around tariff announcements mean trade flows and demand outlooks could be impacted at short notice. Secondly, the Red Sea situation. This remains fluid. Recent statements suggest carriers may resume transits, but timing is still uncertain. A safe passage becomes viable, carriers are expected to gradually leverage this route to cut transit times and costs, which could lead to periods of excess capacity. Third, the intra-regional trades continue to show resilience. Container trades into emerging markets have recorded consistent volume increases in recent years. Looking forward, these trades are forecast to outperform mainland routes, driven by regional consumption and sourcing diversification. And finally, the fleet picture. Despite an uptick in newbuild orders for smaller sizes, feeder vessels remain an underinvested category. There simply isn't enough replacement tonnage to keep pace with the aging fleet currently on the water. So while uncertainty persists, these dynamics highlight where opportunities lie, particularly in regional trades and particularly in smaller vessel segments. And with that said, let me turn to the next part of today's presentation, the company outlook. And I would like to start with Slide 16 with our charter backlog. On the left-hand side, where you can find some details on MPCC's forward coverage illustrating that we've advanced the coverage significantly for '26 and '27 and beyond, as also alluded to by Moritz. As furthermore explained in detail by Moritz, we have utilized the strong charter market during the past few weeks and months, in particular, also concluding forward pictures. On the back of this, in combination with our newbuilding program, we have added additional volume to our backlog and we now have a revenue backlog of $1.6 billion and a projected EBITDA backlog, which stands at around USD 1 billion. In terms of charter coverage, the year 2025 has been covered already months ago, and we are now also well covered for 2026 with 92% and 2027 with 55% in terms of operating days. The degree of forward revenue visibility for the next years has, in fact, never been better than it is today. On the right-hand side, you can see how the revenue backlog has developed over the last 12 months in terms of backlog consumed and backlog added to the now USD 1.6 billion. Taking rational and prudent decisions has been the backbone of how we navigate MPCC's fleet in the market, and we will continue to do so in the best interest of our customers and our shareholders. Let's look at some measures that we have taken in terms of enhancing our fleet and also let's spend some time on how we will move forward strategically. In the current market environment, global developments from geopolitical attention to economic uncertainty and regulatory changes, they continue to shape the industry. While these external factors remain significant, our priority is clear: to execute on our strategy and focus relentlessly on the areas within our control, doing so with discipline and precision. This slide illustrates the results of executing that strategy over the past couple of years. We do believe that having an efficient modern fleet that is commercially attractive to our customers, the liner companies is the foundation for long-term success at MPCC. Consequently, over the past few years, we have taken a number of measures to enhance and renew our fleet. As explained by Moritz earlier, our approach to fleet renewal is strategic and multifaceted. Investing in our existing fleet on the water, including substantial retrofit measures, acquiring eco-tonnage in the secondhand market and contracting newbuildings with attractive charters to top-tier liner operators attached ensuring prudent derisking of our CapEx. On the top left of the slide, you can see how our fleet has transitioned from a purely conventional fleet to one where 75% is now of eco nature. But fleet renewal is only one part of the story. We have also placed a strong emphasis on other aspects of the business. On the right-hand side of the slide, you will see some KPIs that reflect the execution of our balanced strategy. Revenue backlog has grown from $1.1 billion to $1.6 billion from '21 to '25. At the same time, during that period, we have distributed more than USD 1.1 billion in dividends. We have freed up collateral ensuring high balance sheet flexibility and investment capacity. And as mentioned, we have invested USD 1.2 billion in retrofits, eco tonnage and newbuildings, improving the average age of our fleet significantly from a 2007, built year on average in 2021, to 2014 today. And last but not least, we have also reduced the CO2 intensity by 43% compared to the 2008 baseline. These results -- all of these results actually demonstrate how disciplined execution and strategic investments have strengthened MPCC's position for the long term. Moving on to Slide 18. At MPCC, proactive management is not just an operational principle. It's embedded in our strategy and it drives long-term value creation across cycles. Let me explain our thinking in that respect on how we approach things. Firstly, we maintain a clear strategic focus on the intra-regional container shipping market where we see structural resilience and attractive fundamentals. Our approach to asset acquisitions is cycle aware and risk-adjusted, ensuring we act decisively when opportunities align with our return profile. Fleet transformation has been accelerating through strategic newbuild projects and targeted retrofits, positioning us for efficiency and compliance. Today, 75% of our fleet on a TEU basis consists of eco-efficient vessels, including newbuilds, eco vessels and retrofits, this, we believe, will be a key differentiator in the years ahead. Our proactive chartering strategy with extensive forward fixings provides strong financial and commercial visibility, reducing volatility. We have built a broad funding base at lower cost of debt, supported by debt-free vessels and moderate leverage. This preserves investment capacity, allowing us to continue fleet transformation and seize opportunistic acquisitions when markets present value. This proactive approach is anchored in our strategy centered around MPCC and our people onshore and at sea and designed to be a good partner to our key stakeholders. As you can see on the right-hand side, we have identified a number of key stakeholders, including our customers, to which we want to be and we will be a reliable and strategic partner and having executed and offered various strategic transactions and structures for top line operators recently. We believe we are on a good track. To financing partners, we are conservative, yet agile partner, maintaining moderate leverage while tapping diverse funding sources, innovative, but disciplined. To shareholders, we are a good steward of capital across cycles with deep market insight and a prudent adaptable capital allocation strategy. We focus on what we can control, executing rational transactions with attractive risk return profiles, maintaining balance sheet flexibility. In short, proactive management is how we translate strategy into action, delivering reliability, sustainability and value across all stakeholders. Before we open the floor for questions, let me summarize the key takeaways from today's call. Firstly, Q3 2025 has been another strong quarter for MPCC driven by high fleet utilization and solid operational execution. We have secured $1.6 billion in charter backlog, ensuring full coverage for '25 and 92% and 55% coverage for 2026 and 2027, respectively. This provides a very good visibility and stability in an otherwise uncertain market. We continue to divest all the vessels and renew the fleet, reinforcing our long-term competitiveness and sustainability profile. Our approach combines recurring distributions with attractive growth opportunities, creating long-term value across cycles. While the market outlook remains uncertain, MPCC focuses on what we can control, leveraging opportunities, driving fleet transition and maintaining a robust balance sheet. In short, we remain committed to delivering value for all stakeholders throughout disciplined execution of strategic agility. With that said, let's open the floor for questions. Moritz Fuhrmann: So for the Q&A, we have the first questions trickling in as we speak. We'll take them one by one. The first question is of operational nature. Can you provide some color on the increased vessel OpEx compared to the third quarter of '24? Looking back at the third quarter of '24, it was a bit of a seasonal out layer, meaning the OpEx was quite low. Going back even further one quarter -- second quarter of '24, the OpEx was around $7,500. So a bit more in line with what we see today. It is true that the OpEx this quarter has been a bit elevated. That is for insurance reasons. There has been some deductible, so to speak, one-off items that we expect to normalize in the remainder of the year. Constantin Baack: Then there is a question related to the Red Sea and what will be the impact of Red Sea reopening on feeders specifically in your estimation? Yes, thank you for your question. We touched on this to some extent in the presentation, but I'm, of course, happy to elaborate in a bit more detail on the Red Sea situation. Maybe starting from a high-level perspective, potential Red Sea reopening would primarily affect Mainlane container services and larger vessels on Asia-Europe routes, while the direct impact on smaller container ships is likely limited. So that's the direct impact, and that's basically linked to the type of vessels that go through the Suez Canal usually. Indirect efforts, however, could obviously arise through changes in transshipment hubs, in feeder schedules, in networks and regional connectivity as carriers then obviously adjust their networks back to a Red Sea passage open mode. However, our expectation is that normalization may lead to periods of overcapacity, of course, and then that will influence the overall market and also the smaller sizes as well. Having said that, the situation remains quite fluid. And whilst major liners have communicated that they have plans to cautiously resume Red Sea transits. We think this will take a couple of quarters to gradually unwind the rerouting of the Cape, which obviously is on the cards for '26 in our view as well. But kind of -- it's about balancing security, insurance, network adjustments, potential congestions, et cetera. So there are various factors to be taken into consideration. And I think just to put a few numbers to it, the rerouting, as I said, has predominantly tied up the larger vessels. And according to Clarksons, around 720 vessels with an average size of 14,000 TEU are still diverting via the Cape. So smaller vessels have really seen negligible impact to that effect. So that's kind of our assessment when it comes to the impact of potential Red Sea reopening. Moritz Fuhrmann: Then we have 2 similar questions on the asset disposal side. Is the sale of the Felicia still expected to go forward for USD 12.3 million. Could you talk a bit about what went wrong with the sale? So shortly before handing over the vessel to the respective buyers, a legacy case has resurfaced prompting official authorities putting a maritime lean on the vessel, which essentially means prohibiting us from handing over the vessel to the buyers. Luckily, the sales contract is structured in a way that we have a relatively wide delivery window stretching into -- stretching well into 2026. So as we speak, we're working together with the official authorities to get rid of that lean and then parallel also obviously with the buyers trying to deliver the vessel to them at some point in the future. For the time being, the vessel is on time charter and us still being the owners, obviously, we benefit from that locked in cash flow on that specific vessel. Constantin Baack: Then there is a question regarding the newbuilds. Could you talk about the purchase options for additional newbuilds? When do they expire? Do you think they are likely to be exercised? First of all, there are some of the options that we held -- have already expired, in particular related to the earlier newbuilding orders earlier this year, whilst others run until early 2026. So we are in active discussions on further newbuildings, including related to the options. We believe the deals that we have done this year are attractive. And we are, hence, considering to possibly do more. But that's kind of where we are on the options. Then there's, I would say, a related question and more on the fleet, and that is should we expect additional sales over the coming quarters? Or do you view rechartering as a more attractive proposition? I think it's -- as always, a bit of a balancing in the end, the mix of a mathematical calculation and also strategic consideration when it comes to the fleet profile. We are and we have done a number of forward fixtures. We are, at the same time, also in discussions to do more forward fixtures, but there's also a pretty healthy secondhand market with vessels actually not just being chartered out on forward positions, but also being possibly sold on forward positions, and we are exploring both. What I would say as a general comment is that looking at the charter coverage for next year, 92% and '27, 55%, we do believe that in the coming weeks and months, unless you know the market completely goes sour, which again, we don't expect that we would see through a mix of vessel sales potentially, but also some additional forward fixes that we will be able to increase the coverage certainly for '27 as a result of that. And therefore, we do believe -- and again, these decisions about chartering or selling are linked to condition of the vessel, design of the vessel, attach charter of the vessel also, to some extent, dry dock cycles, et cetera. So there are a number of factors that we always consider. And as you have seen over the last years, sometimes the decision is then to charter the vessel out and maintain the optional value at the end of the charter with more upside and sometimes the decision is to sell. I think currently, we are in a market where we're both depending on the specific vessel, options are available. And I would not rule out that we will also be a seller of ships in the near future, but I will definitely also think that we will see more forward fixtures from us in the weeks and months ahead. Moritz Fuhrmann: Then we have a question on the vessel and the lifetime of vessels. Do you think old vessels will keep getting new classification as long as the market is good or could future environmental demand force scrapping earlier even if the market is good. Could a 30-year-old ship get a new classification if the environment is not an issue and the market is good? I mean theoretically speaking, even a 40- or 50-year-old ship can get a new classification. It obviously is an economical and a financial decision, as you say, if the market is good and the income justifies paying a high price, which it is today, bringing a vessel through the fourth, fifth or even sixth dry-docking cycle. We believe that age becomes less and less relevant. So looking at the environmental impact becomes more important. And why do we think that? Because we have, in our own fleet, for example, retrofitted 20-year-old vessels, making them 20% or even more than 20% efficient relative to peer vessels, and that sort of age bracket. So age becomes less relevant. And with those retrofits, we are making sure that these vessels, despite of the age will be in compliance with the regulatory pressure going forward. So it's a bit of a mix of financial view on the vessel and also the vessel itself being eligible for a retrofit. There are certainly vessels where a retrofit will not achieve the efficiency gains that we have seen on our vessels. So yes, we have retrofitted 20-year-old ships, and can they trade up until 30, 35 years? Yes, certainly. But there will also be obviously a financial element to that calculation. Constantin Baack: Then there is another question, which is reserving some parts of dividend payout for investment has been a reason for share price drop in Q2. Does it mean that at some point, MPCC will return to pay high dividends again? Or this will be followed as a strategic approach to reinvest more and add value to the company instead of being a sole dividend payer in future? Okay. So it's basically a capital allocation question here, the way I take it. And let me say that I think share price dropped in Q2, I would not solely attribute that to the adjustment of dividend policy. I think a lot is also sentiment driven. I mean Q2 was obviously the hey days of the initial period of the Trump administration with a number of curveballs and uncertainty on global trade, et cetera. As far as the capital allocation question is concerned in terms of high dividends versus investments, the way we see it is that we have introduced now a balanced capital allocation or payout strategy, which provides return to shareholders, return of capital to shareholders, but at the same time, allows the company to continue to develop and continue to create long-term value, which is in the best interest of the company, its stakeholders and its shareholders. And therefore, we have reallocated and have decided that earlier in the year to reallocate some of the otherwise, dividend amounts to also grow and invest. Had we just continued to pay out dividends, we would basically be unwinding a company that, in our view, has a very good value, has a very good value proposition. And I think, in particular, also the transaction that we have concluded this quarter are a reflection of this. And that applies to both the forward fixing as well as the newbuildings and the fleet renewal. And as we have discussed throughout the presentation, having a 75% kind of equal fleet on the water now whilst operating on a moderate to low leverage scenario, we believe this is a very good basis for a continuation of adding value and creating long-term value to shareholders. So never say never on dividends, but I think we now have a balanced dividend policy out there. And for the time being, we see significant opportunities in the market. We believe the newbuildings that we have done are very attractive and we believe this is also attractive going forward to possibly conclude on a few more on that route. Moritz Fuhrmann: Then we have a CapEx-related question. Can you add some color on the dry docking schedule for '26, '27 relative to '25? Only speaking for the coming year, we expect of having 18 dry dockings next year, which is a relatively strong increase from the number of dry dockings that we have had this year, although it is slightly below the year before. So 2024, we had around 20 dry dockings. Now for '26, we expect to have 18 dry docks. So it's quite an operational challenge, making sure all the vessels are being docked properly. But we've been there before. So we have a fair share of experience of managing as many vessels going through dry docks in Europe and in the Far East. Constantin Baack: At least for the time being, there are no further questions, we would hold up the line for a bit. But since there have been a number of questions raised and we don't see anything coming up. We would conclude the call at this stage. Thank you, everyone, for your interest and for the questions and the engagement. We -- just to sum it up, we believe it has been a very good quarter in many aspects, in financial and operational performance, but certainly also in adding value for the future, providing the forward fixtures, some additional newbuildings, and we are excited about the next quarters ahead and looking forward to staying in touch. All the best. Take care. Bye-bye.
Operator: Greetings, and welcome to the Life Healthcare Annual Results Presentation. [Operator Instructions]. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, CEO of Life Healthcare, Mr. Peter Wharton-Hood. Please go ahead, sir. Peter Wharton-Hood: Thank you, ma'am, and good morning, ladies and gentlemen. Welcome to Life Healthcare's Summarized Group Results for the Year of 2025. I'll start with an opening comment that the overall performance of the group was very strong operationally, and we had good activity growth for the 12 months under review. That's recorded in a PPD growth of 1.1%, and overall occupancy for the year of 69.7%. Pleasingly, in the second half of the year, we hit the magical 70% occupancy mark. Strong revenue growth under the prevailing conditions of 6% normalized earnings per share from continuing operations just above 10%, and Pieter will explain in due course the complexity -- the accounting complexities that have arisen from the very successful sale of LMI and how that has been included in the results. Very strong cash generation for the 12 months, 119.6% of EBITDA. And as you become accustomed to in the last 12 months, good dividends performance for shareholders. Our final dividend is up 12% to ZAR 0.56 per share, which including the special dividend during the course of the year, takes us to just over ZAR 2.81 per share. Our strategy is taking shape. Over the last 5 years, geographically, we've become more focused. Operationally, we become more specific. And as we outlined at the half year, we are talking in this business about where we grow, what we drive and what we seek to optimize. In the grow category of our strategy, we'll talk extensively later on about our greenfield expansion, our brownfield expansion of existing facilities, where we will be acquiring new facilities, and the expansion of our complementary lines of business. The improved utilization of our facilities is ever most important for us, and we'll get to that through both the occupancy levels that we talk to and the doctor recruitment drive that we are on. And crucially in this conversation and later on, we'll talk about what we really mean by the optimization of our asset utilization. The unsung head office here sit in technology and data, and I'll expand on their importance and what they've delivered in the 12 months. From a growth perspective, greenfield, we're very excited about the 140-bed Life Paarl Valley expansion opportunity. The spades have gone into the ground, and we look forward to delivering that both for patients, doctors and ultimately for shareholders. Our brownfield expansion opportunities during the course of the year, we delivered a further 30 ICU and high-care beds, and you'll see later on how intensively occupied our ICU beds are. We also added another 39 general ward beds during the year. Two imaging sites were acquired, and we added the Life Renal Dialysis in Namibia to our footprint. From a complementary lines of business perspective, we added another 24 acute rehabilitation beds and our 2 cyclotrons both built and completed according to design are awaiting final regulatory sign-off and the commencement of activities. From a drive perspective, we recruited 139 specialists onto the platform during the year. Our emergency channel saw more than 655,000 visits. We added a new cathlab to our cardiac network, and our funder and network channel now accounts for 35% of the PPDs through the network. Our value-based care initiative continues to go from strength to strength. We have proven excellent renal ICP outcomes where the quality of clinical outcomes for patients has improved. The cost to funders has been reduced, and we're now in a position to be able to expand that fairly significantly. We have an improved level of occupancy, as we reported at a high level at 69.7% off the back of a very strong second half, which was slightly over 70%. The optimization process included during the course of the year, the sale of LMI as we realized geographically and industry specifically that, that wasn't a business that belonged within the portfolio set. From a local geographic perspective, we concluded the sale of Life St Mary's Private Hospital, and we closed Life Isivivana Hospital. Furthermore, with detail to follow, we've identified a small number of hospitals and complementary facilities of a detailed and further asset optimization process during the course of the next 12 months. We've streamlined our business operations, good management of nursing and overhead costs, which grew slightly above 5%. And from a capital allocation perspective, our ROCE is at 17.8%, and I've spoken already about the dividends that we've paid. Our strategy remains unchanged, but commencing with the footprint, which you're now familiar with, that is the competitive advantage of which Life Healthcare trades and which we will take significant and deliberate care of as we think further about how we operate in South Africa. Our underlying capabilities, we start with a very strong balance sheet, which we refer to as our fortress balance sheet. Very pleased to report a net debt-to-EBITDA of 0.77 at the balance sheet date. And for the avoidance of doubt, that includes all our IFRS lease liabilities in the calculation. An improvement in our credit rating to zaAAA off the strong cash generation during the course of the year. From a technology and data perspective, it's an important part of our overall strategy, but must be seen in the context of a healthcare company in the South African -- with a South African presence. The strategic projects that we completed during the year included our network modernization and cloud migration, but excitingly, the new hospital information system was completed. That is built and delivered, but it's also been included in our enterprise architecture capability with a 3-year road map that has a very cleverly thought-out modular API-led approach that allows us to integrate the best-of-breed approaches to technology improvements that are available. We have initiated the digitization of the patient journey, and we will only use the word digitized or digital once in this presentation. From a doctor relationships perspective, we've initiated a 9-year program to train 40 surgical specialists, 35 medical specialists and 40 sub-specialists, a total investment of ZAR 450 million over the period, but with an anticipated return back to Life Healthcare slightly over 22%. From an underlying capabilities perspective, we are a care-based organization with care delivered by humans. So our people are particularly important to us. Employee turnover is the lowest that it's been in the last 5 years. The implementation of the employee value proposition and targeted remuneration initiatives have led to a strong focus both on employee development and training. And the employee share scheme, not for executives or senior managers, enabled employees to share in the success of the company. Employees have been able to share in the special dividend payments made during the course of the year. And overall, Life Healthcare is a great place to work. When one looks at the real purpose of the company, our clinical excellence metrics are of utmost importance, with an improvement in our reported patient experience. And our bundled compliance ratios at 97%, including the ventilator-associated pneumonia, surgical site infections, catheter-associated urinary tract infections and central line associated bloodstream infections. That level of compliance is commendable to all of our clinicians and experts and care workers involved in the delivery of care to patients. Moving on to the operational review for the year. We had a steady activity growth just under 1%, resulting in occupancies of 69.2% and up on the prior year. We had very high ICU occupancies, of over 84% and hence, our focus on adding ICU beds, of which we've added 46 over the past 2 years. We had good revenue per PPD growth of 5.8% of a tariff increase of 5.1%, a positive case mix impact despite a higher percentage of medical PPDs. The overall acute EBITDA margins were flat on the prior year. However, the vast majority of our acute hospitals overall had an excellent year, and I'll touch on that in a few slides. Our complementary services include mental health, acute rehabilitation, renal dialysis, oncology, imaging and nuclear, and overall strong revenue growth of approximately 25%, which included the Renal Dialysis acquisition, which is now included for 12 months versus the 6 months in the prior year, and 2 additional imaging transactions concluded during the course of the year. In mental health, we had a strong year with occupancies of 77% and PPD growth of 6%. In acute rehabilitation, we were negatively impacted during the year by a major upgrade in one of the units as well as two of the units that underperformed primarily due to poor location issues. In our Imaging business, we continue with our strategy of acquiring the nonclinical portion of imaging practices. We had good performance, with underlying activity growth of over 3%. We continue to make good progress in our nuclear business with increased volumes and 3 PET-CTs to open in 2026. We expect the 2 cyclotrons to be signed off from a regulatory perspective and be operable in Q2. In Renal Dialysis, we had good underlying activity growth of nearly 10%, reflecting the strong underlying demand. We had good performance from the in-hospital Renal units and a much improved operational performance from the Life Renal care units in the second half, reflecting a positive EBITDA in Life Renal care compared to a loss in the first half. Asset optimization will be a key focus of our conversations with shareholders and analysts during the course of the next 6 months. A key focus within our optimization strategy is how we strategically optimize our hospitals. Our first focus was on the top 20 hospitals. They make up the bulk of the acute hospital business, and optimizing their business operations and efficiencies was a key component of the initial exercise. If you look at the top 20 hospitals, they make up 65% of our acute beds, they make up 2/3 of the acute PPDs, 72% of the revenue and 84% of the acute EBITDA. These hospitals had an excellent underlying performance during the year. Their occupancies were 72%, PPD growth was 1.3%, revenue growth of 7.4% and EBITDA growth of 10.3%. The success of this initiative in the top 20 led us to expand the program to the top 30 hospitals. If we look at the top 30 hospitals, they account for 86% of our acute beds, 88% of the PPDs, 88% of revenue and 96% of the EBITDA generated by the group. Again, this group of 30 hospitals had a strong operational performance during the course of the year. The top 30 hospitals recorded occupancies of 71%, PPD growth of 1.5%, revenue growth of 7.2% and an EBITDA growth of 9.6%, reflecting the improved margins across these facilities. These are the hospitals that we want to be -- and these are the metrics that we want to be able to deliver for the complex of Life Healthcare. When one looks at asset optimization, this is the second area of focus, which we now dig into. And these are the assets that are not performing according to our expectations for a number of reasons, including their location and/or certain geography issues. It's a small number of facilities. And if we exclude these from the overall group result, we end up with occupancies of 72%, and we end up with PPD growth of 2%. This is how we want to look, robust activity and good revenue growth. The third area of focus is our asset optimization in renal dialysis and the renal dialysis business, including the FMC acquisition. There's been an improved performance with the increase in treatments and a shift to a positive EBITDA from a loss in H1. And the focus is now on improving the operational performance of this business, and we expect to see further improvements during the forthcoming year. To provide a clearer view of how the complementary business performed outside of the FMC acquisition, we show that excluding their poor performance for the 12 months, revenue growth was at 8.8% and EBITDA growth was at 9%. So I think it becomes absolutely clear from a management perspective on where the work needs to be done. We know that we've got to continue to support the strong performance of the top 30 hospitals. The small number of hospitals that are underperforming require deliberate and focused attention, and there's clearly an operational requirement to improve the integration of FMC into our overall business. I'll now hand you over to Pieter to take you through some accounting complexities. Pieter Van Der Westhuizen: Thank you, Pete. Just in terms of the Life Molecular Imaging or LMI transaction that was concluded during this year and even with our best efforts to explain the transaction, we found that it's still complex, and the investor community doesn't really understand it. So we're going to try again. The sale was concluded during -- as I said, during the year, just north of $750 million, of which we received an upfront payment of $355 million. Post transaction costs and provisions for liabilities that we have to pay the Piramal and the exiting management team, the net proceeds is roughly $200 million. And we will have potential further earn-outs of up to $400 million that we can receive up to 2034. And in addition to that, we've retained the rights to RM2 milestone payments as well as the right to manufacture, commercialize and distribute LMI products in Africa. From the $200 million, we've declared and paid a special dividend of ZAR 2.35 in the month of September. The complexity around this transaction is how from an accounting perspective, we have to account for it. The net profit on the disposal is the value of ZAR 2.4 billion. But due to accounting, we need to reflect the profit and the potential liability or the liability for the Piramal separately. The Piramal liability of ZAR 2.9 billion is recognized as part of continuing operations. And the reason for that is the liability remains with Life Healthcare. We didn't sell it across to the purchaser of LMI and hence, it will sit as part of continuing operations. We have accounted for the full liability of up to $200 million. And that is effectively ZAR 2.9 billion, and it will increase slightly due to a discount factor that we need to provide. The gross profit of ZAR 5.3 billion that sits as part of discontinued operations. In terms of financial highlights, good revenue growth, normalized earnings per share, and it's the one year where we had to do a normalized earnings per share due to reform because of the accounting mess with the LMI transaction, which is just north of 10%. And very strong cash generation, a great effort from our credit risk teams in terms of managing our debtors, probably one of the strongest years in the last few years that we had on debtors collections. Return on capital, still a healthy 17.8%, slightly down against last year and largely due to some of the big CapEx projects that we're investing in as we continue to see investment opportunities in South Africa to grow our footprint. And then the final dividend, up 12.9%, a ZAR 0.35 per share dividend, and that will be paid in December. On the income statement or profit and loss, we had -- we processed a pro forma adjustment, and the pro forma adjustment is effectively taking out the LMI liability and just showing it as part of discontinued operations effectively. So on a continuing basis, revenue is up 6%, normalized EBITDA of 4.7%. We would have liked to get that up to 6%. And as Pete explained in the operational slides, there's really 2 factors that are impacting us in terms of delivering the growth in EBITDA margin that we're looking for. The Fresenius or FMC transaction in terms of underperformance of that business, and we've got plans to address that, and then the impact of the asset optimization, assets that we're in the process of fixing. Just in terms of -- in addition to that, we have processed 2 large impairments to the value of ZAR 211 million. The bulk of it sits in the Fresenius business. And as we had indicated at the end of last year, and we did sell one of our hospitals in the Eastern Cape, and we made a profit of ZAR 54 million, and that's also reflected as part of other nontrading expenses, a net number of ZAR 160 million. From a segmental basis, really just want to show that the complementary service continued to grow, and it's largely due to the inclusion of the Fresenius business. Last year, it was only included for 6 months, and this year it's obviously included for 12 months. Very strong at the revenue side, but you can see the impact of the underperformance in the normalized EBITDA, where revenue is growing 24.7%, but normalized EBITDA is only 3.6%. And as we indicated in the half year for the first 6 months, the Fresenius business made a loss at EBITDA level. We have arrested or changed it effectively in the second 6 months, and it's a slight profit, but still nowhere where we wanted to be. We have, for the first time, also split out a bit in terms of -- at the corporate level. Employee cost, you can see, is flat against last year, and that's our efforts to manage the cost at the head office level. The other cost is up significantly at 50%, but the bulk of that is related to investment in future doctor pipeline where we contribute to various opportunities to train more doctors in the country. Cash, really strong cash generated from operations, close to ZAR 4.6 billion. And we were really looking for the extra ZAR 2 million just to make it around ZAR 4.6 billion, but we couldn't get there, 23.8% up against last year. Free cash flow is still healthy at 36.5%. And what's really pleasing is that we in the last 2 years, we've paid significant funds back to shareholders. We've paid a special dividend in the current year of ZAR 1 billion, up in January, and a further ZAR 3.4 billion in September. So a total of ZAR 4.4 billion. And if you look at last year, we've paid ZAR 8.8 billion. So in the last 2 years, shareholders got close to ZAR 13 billion. We're healthy. And then our ordinary dividend at ZAR 758 million compared to last year at ZAR 668 million. Included in the CapEx, ZAR 1.3 billion effectively in maintenance, replacement and infrastructure CapEx where we maintain our facilities and replace our equipment that's needed. Growth CapEx of close to ZAR 450 million. And as we indicated last year, we've concluded the acquisition of a property that we leased previously in the current year, and there's plans to buy one more in the next financial year, and Pete will talk about a bit about that as well. Our balance sheet, really strong. Net debt to EBITDA based on the bank covenants is close to 0. But what we have done is the Piramal liability that needs to be settled in the first half of next year -- the next financial year. We've treated as a debt -- if we treat it as a debt-like item, it will push our net debt to EBITDA up to close to 0.8. And we're very comfortable at that level. Obviously, there's still a bit of room to push it up more. And we have growth opportunities that we will then utilize our balance sheet effectively to fund. This is just how we want to show you in terms of the debt maturity. As you can see, most of our big debt is maturing at a longer-dated period. We've got bank debt and notes maturing in 2027. And we will, in the next 6 to 9 months, start refinancing some of this debt. Earnings per share. Earnings per share from continuing operations, significantly down against last year, but on a pro forma basis, up 2.1% and the pro forma is really taking out the Piramal liability. Headline earnings per share, up 14.7% on a pro forma basis and normalized earnings per share up at 10.1%. And the dividends, just demonstrating you to the total dividend for the year up 12%, final dividend up 12.9%. I'm going to hand you over to Pete to take you through the outlook for next year. Peter Wharton-Hood: Thanks, Pieter. I think it's clear to see that the fundamentals of our business are resilient, and the substantial returns to shareholders, both in this year and the prior period reflect our disciplined approach to capital management. Having said that, our focus is now firmly on the continuing operations, and investors now have a clear visibility into a stable, well-positioned healthcare organization. Our strategy will be to continue our focus to grow, drive and optimize the business. From a growth perspective, we remain excited about the opportunities in South Africa and investing therein. The 140-bed hospital is the cornerstone of our greenfield path. Our brownfield expansion, we will deliver a further 89 acute beds during the course of the year. Another cathlab at Mount Edgecombe. A new vascular lab at Rosepark Hospital. And there'll be further expansion in our complementary services business, with the delivery of a further 40 acute rehabilitation beds, 20 renal stations, another 3 PET-CT sites. And as we mentioned previously, the commencement of commercial production in our cyclotrons. From an outlook perspective, we see occupancies at 70%. We're forecasting or anticipating a PPD growth of 1% and improvement in revenue next year of 5%, with a further recruitment of specialist doctors of approximately 140. Management has their work cut out in the optimization category of business. We have to make sure that our top-performing hospitals, as we evidenced earlier in the presentation, are not only maintained but where they can be operationally improved. The hard work is in the cost savings that we need to deliver over the next 3 years. We are anticipating having to deliver ZAR 400 million worth of cost savings. And these are real cost savings of the existing cost base, not cost avoidance, real cost savings over the next 3 years. Our asset optimization process is absolutely clear with the ambition statement has been laid down that for the small number of underperforming units, there's work to be done. I'm pleased to say that this is not new work. This is work that's already commenced. We've made 2 significant management changes. We are in the process of relocating 2 of the businesses that are in the incorrect places and having their licenses reassigned, and we've already closed one of the underperforming units. Our overheads and cost of sales focus is crucial to the delivery of the savings target. And of course, the continued improvement of Life Renal Dialysis is the operational challenge at hand to basically get the integration complete, and those operations correctly streamlined on an appropriate clinical basis where Life Healthcare's clinical standards are maintained so that we deliver superb clinical outcomes for patients, but also done in a way that's operationally profitable and sustainable. We're also in the process of acquiring a significant -- one of our last remaining significant hospital properties that we don't own. This will cost about ZAR 475 million. The Board has given its approval. And with that in mind, our property portfolio will then be nearly 100% owned across the entire country. So it's with a sense of optimism that we approach the 2026 year, but the daunting task of getting this job done is both a challenge for the management team and has been set into the KPIs to deliver during the course of 2026. There will be no remaining outstanding optimization decisions by the time we speak to you at the end of the 2026 year, and we'll make sure that we deliver on the promises to take this business to the next level. With that, I conclude our presentation, and we're happy to take questions. Operator: Thank you, sir. We will now be conducting a questions-and-answer session. [Operator Instructions]. The first question we have comes from Alex Comer of JPMorgan. Alex Comer: A couple of questions from me. Just on the ZAR 400 million of cost savings, how does that play out over the next few years, i.e., what do we see this year, what do we see next year, what do you see the year after? First question. Also, you talked about the sort of underperforming assets. If my maths are right, the businesses that are -- or hospitals are outside your top 30 have got an EBITDA margin of around about sort of 5%. So just what particularly are you going to try and do to lift that? You talked about moving facilities. I wouldn't have thought that was that easy. That's the second question. And then just you haven't given any margin guidance for the year. I just wondered whether you'd like to give us some indications on that. And then also, clearly, CPI is pretty low this year. You've got revenue growth of sort of 5%, wage growth last year was around that level. How confident are you about being able to keep wage inflation below revenue growth? Peter Wharton-Hood: Let me take the asset optimization challenge first on. Your math is about right. We, for obvious reasons, have not specifically identified the individual units because that wouldn't be fair play. It's our job of work to fix and not to cause disruption to continuing activities. The relocation of certain of the facilities is easier than you think. It's a reassignment of licenses from one of our facilities. It's effectively a consolidation of license and beds into existing facilities. It's not the construction of new ones. So apologies if I didn't explain that correctly. So the confidence with which we see our ability to be able to optimize those assets break themselves into a couple of categories. There are those where the relocation makes sense or the consolidation makes sense. The next step up is to see whether or not we can trade our way into a more profitable set of circumstances in the location. And that's typically designed around the recruitment of subspecialties into the units that would be both revenue generative and consistent with the levels of acuity and disease burden in the region, i.e., generate more revenue. The third step from there is a context of whether or not the business needs to be or can be rightsized. So if it's under occupancy levels, and we've said that most of these are under 60%, can we rightsize the hospital, cut costs and appropriately run a margin-accretive business, but at a smaller scale. So those are the immediate management challenges that need to be addressed. And as I said, none of those are necessarily easy to execute, but we don't want decision processes left hanging in the wind for the next 12 months. I will leave the balance of your questions for Pieter to answer, the buckets on the ZAR 400 million and the CPI. Pieter Van Der Westhuizen: So in terms of ZAR 400 million cost saving opportunities, we are targeting between 20% to 25% in the first year of that value. And then depending on how quickly we can then operationalize, whatever the process that we're implementing, how quickly we can deliver on the ZAR 400 million. Just to elaborate on what we -- how we look at it is we've got the baseline effectively as 2025, and we are targeting real cost-saving opportunities, not in terms of things that we potentially not will be able to do. And from a cost, we are really looking at taking costs out of our base. And there are a number of projects on the go on that. In terms of the CPI, in terms of getting labor inflation below CPI, obviously, it's a challenge that we have every single year. And the real thing is can we get our tariffs, and the team is busy with the final tariff negotiations. And I think we will get close to getting labor inflation to the tariff. In this environment, things going to be tough. Peter Wharton-Hood: I think the last question that you asked was more guidance around margin. It will be publicly viewable that margin improvement is on the executive scorecards and how we will be compensated during the course of the year. And you'll see those thresholds quite clearly articulated -- published in the annual financial statements. But yes, it's a levels of margin improvement, not just in the underperforming units, we're expecting to deliver margin improvement across the top performing units as well. That guidance will become clearer a little bit later. Operator: At this stage, there are no further questions on the conference. I will now hand over to management for webcast questions. Please go ahead. Pieter Van Der Westhuizen: Thank you. There are a couple of questions in terms of, just elaborate what we mean with initiation of the digitization of the patient journey. Peter Wharton-Hood: I think in that context, it starts from how we have digitized the patient administration or admission forms and includes a road map all the way through to the digitization of patient data in patient files and claims to the medical aids. Pieter Van Der Westhuizen: And then there's a couple of questions just in terms of, we guided the market in terms of a 1.5% PPD growth, and we're talking at the acute side of 0.9% PPD growth. The 1.5% growth is in total. So it does include the complementary services, acute rehabilitation and mental health beds. And hence, the 1.1% growth relative to the 1.5% is what we guided. The key impact on us is we had a couple of hospitals where we -- large doctor that contributed significantly to those specific facilities, but left the hospitals for a variety of reasons. That had a negative impact. We also did see a bit of a slower winter season than what we normally have. But there's nothing other than the asset optimization, assets that we will focus on. As we said, our core business did really, really well, still attracted the 70% occupancy for the second half. And then there's just a couple of questions in terms of the margin guidance. And then in terms of the Renal Dialysis margin going forward, after we corrected the Fresenius business. Effectively, if we -- if you look at last year, we had kind of mid- to high teens in terms of a margin on the renal business. In the current year, overall renal business is single digit, and we are aiming to get it back to the 15% to 18% EBITDA margin. Peter Wharton-Hood: And I think it's fair to concede that the operational complexity of integrating the acquisition was more difficult than we anticipated when we signed the deal, and that has hurt us. But the underlying business is strong. The renal ICP is showing really good prospective results, as I said, both clinically and from a funder perspective. So we remain positive on the outlook for that business, but the operational challenges need to be addressed. And as we saw in the second half, we were getting the traction right because the second half of the year's performance was better than the first, but the job is not done. Pieter Van Der Westhuizen: And then kind of last question is just a clarification in terms of, is the LMI accounting adjustments excluded from normalized earnings per share? Yes, it is. The rest of the questions, I think, is addressed in our presentation and in the annual financial statements that's published on our website. I think we'll leave it there. Peter Wharton-Hood: And sorry, Alex, the guidance as to where management are being incentivized around margin improvement is actually in the rem report. Pieter Van Der Westhuizen: Thank you so much, operator. Thank you, ladies and gentlemen. Peter Wharton-Hood: Thank you, ladies and gentlemen. Thank you. Operator: Thank you. Ladies and gentlemen, that then concludes today's conference. Thank you for joining us. You may now disconnect your lines.