Summary of Nordea Bank's Q3 2025 Pre-Close Call Company Overview - **Company**: Nordea Bank - **Event**: Q3 2025 Pre-Close Call - **Date of Report Release**: October 16, 2025 - **Silent Period Start**: October 7, 2025 Key Points Macro Environment - **Interest Rates**: Norway and Sweden cut policy rates by 25 basis points in September, leading to a quarter-on-quarter decrease of approximately 25 basis points in average Nordic policy rates for Q3, similar to Q2's decrease of around 30 basis points [3][5] - **Interbank Rates**: Average quarter-to-date decreases were 30 basis points for Norway, 17 basis points for Sweden, and 10 basis points for Denmark and Finland [3] - **Equity Markets**: The U.S. dollar-denominated MSCI World Index increased by 11% quarter-on-quarter, while the OMX 40 Nordic Index decreased by 1% [3] - **Fixed Income**: The U.S. dollar-denominated Bloomberg Global Aggregate Bond Index rose by 2% [3] Financial Performance - **Net Interest Income (NII)**: Reported NII for Q2 was €1,798 million, with expectations of lower NII in Q3 due to pressure on lending margins and a negative impact from deposit rates bottoming out [4][5] - **FX Impact**: The average FX presented a headwind for euro-denominated income in Q3, with SEK down 1.5% and NOK down 1% quarter-on-quarter [4] - **Net Fee and Commission Income**: Q2 reported €792 million, with Q3 expected to be impacted by seasonality and market quietness, particularly in brokerage and advisory services [9][10] - **Net Insurance Result**: Q2 net insurance result was €58 million, up from €54 million in Q1 [10] Cost Management - **Cost Growth**: Year-on-year cost growth is expected to slow significantly, with full-year costs projected to grow by no more than 2% to 2.5%, excluding FX effects [12] - **Credit Losses**: Normalized loan loss level is 10 basis points, with a management judgment buffer of €341 million [12] Capital and Dividends - **CET1 Ratio**: CET1 requirements stood at 13.7% at the end of Q2, with a CET1 ratio of 15.6% [13] - **Dividend Policy**: The company aims to pay out 60% to 70% of annual profits in dividends, with discussions around interim dividends being hypothetical at this stage [17][18] Other Notable Points - **AT1 Issuances**: Recent AT1 issuances in USD, SEK, and NOK are expected to create a headwind of approximately €20 million, offsetting some positive effects [6][21] - **Market Activity**: M&A activity is down by 40% and ECM by 50% quarter-on-quarter, indicating a continued slow market environment [10][35] - **Capital Markets Day**: Scheduled for November 5, 2025, with potential updates on financial targets expected [30][31] Conclusion - The call highlighted the challenges faced by Nordea Bank in a mixed macroeconomic environment, with interest rate cuts impacting NII and market activity remaining subdued. The focus on cost management and maintaining a stable dividend policy reflects the bank's strategy to navigate these challenges while preparing for future growth opportunities.

Core Viewpoint - Himax Technologies, Inc. has declared a cash dividend of 37.0 cents per ADS for the year 2024, reflecting a strong commitment to shareholder returns and a payout ratio of 81.1% of last year's profit [3]. Company Overview - Himax Technologies, Inc. is a leading global fabless semiconductor solution provider specializing in display imaging processing technologies, with a significant market share in automotive display technology [4]. - The company offers a wide range of products including display driver ICs, timing controllers, and innovative automotive IC solutions, as well as technologies for AR/VR/metaverse applications [4]. - Founded in 2001 and headquartered in Tainan, Taiwan, Himax employs around 2,200 people and holds 2,603 patents granted and 389 patents pending as of March 31, 2025 [4]. Dividend Declaration - The cash dividend of 37.0 cents per ADS, equivalent to 18.5 cents per ordinary share, will be payable on July 11, 2025, to shareholders of record as of June 30, 2025 [1][2]. - The company typically pays its yearly dividend around the middle of the calendar year based on the previous year's financial performance [2]. Management Commentary - The President and CEO of Himax, Mr. Jordan Wu, emphasized the company's ongoing commitment to rewarding shareholders through its dividend policy and maintaining a healthy balance sheet while focusing on sustainable long-term growth [3].

Financial Data and Key Metrics Changes - The company reported net income for 2024 at $176 million, equating to $5.03 per common share, with adjusted EBITDA at $400 million [39][42] - Gross revenues for 2024 reached $804 million, while operating income was $279 million after accounting for $49 million in capital gains from asset sales [38][39] - Average fleet utilization for the year settled at 92.5%, down from 96.3% in 2023, reflecting the impact of drydockings [38] Business Line Data and Key Metrics Changes - The fleet averaged approximately 62 vessels in 2024, an increase from 60 vessels in the fourth quarter of 2023 [37][42] - The company divested five older tankers and acquired nine vessels, including dual-fuel LNG Aframaxes, enhancing fleet quality [37][39] - The average TCE (Time Charter Equivalent) per ship per day for 2024 was $32,550, supported by long-term secured revenue contracts [39] Market Data and Key Metrics Changes - The company has doubled its medium to long-term receivables from $2 billion to $4 billion within the last two months due to new transactions [21] - The largest client is ExxonMobil, with 82% of revenues secured through long-term contracts with major energy companies [32][91] - The tanker market remains strong, with Aframaxes and Suezmax rates showing healthy increases [88][90] Company Strategy and Development Direction - The company is undergoing its largest growth phase in history, with 21 vessels on order, including nine DP2 shuttle tankers on long-term contracts with Petrobras [45] - The strategy focuses on maintaining ample liquidity to capitalize on growth opportunities without raising equity [11][19] - The company aims to continue its countercyclical investment approach, raising equity at market lows to fund growth projects [26] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment over the share price being half of what it was a year ago, despite significant growth in fleet size and revenue backlog [21][22] - The company anticipates continued strong performance due to a robust market environment and a focus on high-quality clients [88][91] - Management remains optimistic about future dividend growth, contingent on market conditions [77] Other Important Information - The company has maintained uninterrupted dividend payments since inception, with a semi-annual dividend of $0.60 planned for July 2025 [44][77] - The company has a strong cash position of just under $350 million, despite significant dividend payments and growth project expenditures [41] Q&A Session Summary Question: Regarding the shuttle tanker deal and crew provision by Transpetro - Management confirmed that Transpetro will provide crews under a bareboat charter and expressed confidence in their capacity to do so, with potential collaboration on crew training [54][56] Question: On asset sales and potential transactions - Management indicated that older vessels are being considered for sale, with expectations of net proceeds around $130 million from upcoming transactions [60] Question: About the appetite for additional tonnage and interest rate hedging - Management stated they are focused on the current 21 ordered vessels but are always looking for strategic opportunities [66] - They are actively exploring ways to hedge interest rate risks associated with financing [67] Question: Plans for the Maria Energy vessel and potential sale - The Maria Energy is fixed for long-term employment starting in May 2026, with management open to selling if advantageous [73] Question: Future dividend payments and potential increases - Management reiterated the current dividend level and expressed hope for increases based on market conditions [77][78] Question: Operating statistics and G&A expenses outlook for 2025 - Management expects a similar number of drydocks in 2025 and anticipates a drop in G&A expenses due to recent personnel incentives [82][84]