Welcome to the Ørsted conference call. For the first part of the call, all participants will be in listen-only mode. Afterwards, there will be a question and answer session. Today's speakers are Chairman of the Board of Directors, Thomas Thune Andersen, CEO, Henrik Poulsen, and CFO, Marianne Wiinholt. Speakers, please begin.
This is Thomas Thune Andersen. Thank you. Good afternoon, everyone. We are invited to this call following our announcement that Henrik Poulsen has resigned as CEO of Ørsted. I'll give you an update of the situation before I hand over the word to Henrik. After eight years in the role, Henrik Poulsen has today resigned as CEO of Ørsted. During his tenure, Henrik has led a profound and highly successful transformation of Ørsted over the past eight years from a Danish fossil fuel energy company to a global leader in renewable energy. Having completed the corporate transformation and established a strong global growth platform in renewable energy, Henrik has come to the conclusion that it is the right time for him to resign as CEO of Ørsted.
In the Board of Directors, we regret Henrik's decision to resign as CEO of Ørsted, but we, of course, respect his decision, and we are pleased that Henrik Poulsen will continue as CEO until the 31st of January 2021, at the latest, in order to secure a smooth transition to his successor. On behalf of the board, I would like to express our sincere gratitude and appreciation for the remarkable results he has spearheaded together with the entire Ørsted team. We are pleased that Henrik has accepted our offer to nominate him for Ørsted's board of directors at the next AGM in March 2021. An appointment to the board will ensure that his vision, skills, and industry experience remain available to Ørsted and will provide a strong continuity in the governance and management of the company.
With Henrik's decision to step down as CEO, the Board of Directors has initiated the search for the next CEO of Ørsted. The Board will evaluate both internal and external candidates. We'll focus on finding the best candidate for the job. We will announce our decision when the search process has been completed. With that, I would like to hand the word to Henrik for a few remarks.
Thank you, Thomas. Well, it truly has been an incredible ride over the past eight years. As you know, together with my colleagues, I have put a lot of heart and soul into the transformation of Ørsted, and I have truly enjoyed the journey. I'm proud of what we have achieved, and I feel very strongly about the company, what it stands for, and the vision we pursue. Nonetheless, the time has come for me to pursue new challenges in life.
The transformation from fossil fuel to green energy has been completed, and Ørsted has never been a stronger company. It will continue to enjoy a tremendous amount of green growth opportunities over decades to come. As Thomas referred to, I'm glad that the board has offered to nominate me for a non-executive directorship at the next annual general meeting in March 2021. This will allow me to remain part of the Ørsted team and continue to support the company on its global growth journey. Furthermore, it means that I will continue my collaboration with the board and the executive committee, a group of people whose support and fantastic efforts over the years have made it a true pleasure to be the CEO of the company.
I treasure the trust-based relationship and the collaborative environment Thomas and I have created over the years. I look forward to still being part of it. I have not made any plans about my own future. I will stay in the CEO role, probably at least through the end of the year, and ensure a smooth transition to my successor. Together with Thomas, Marianne, and the rest of the team, I will make sure that we do not miss a beat. I will then, at a later point, find out what to do next in my professional life. As I will stay on as CEO for another while and then hopefully join the board of directors, this is not a goodbye. Far from. I will be as engaged in the company's success and quest for a world running entirely on green energy as ever before.
However, I would nonetheless like to take this opportunity to thank all Ørsted employees for having done a superb job in transforming the company during my CEO tenure, and not least, of having navigated the company through the ongoing global crisis without any noticeable loss of momentum. Finally, I would like to pass the word to Marianne for a few remarks.
Thank you, Henrik. I have truly enjoyed our close and strong cooperation over the last many years, and I look forward to continue to work with you, when you hopefully join the board of directors. For the sake of good order, it is important for me to emphasize that my commitment to Ørsted is as strong as ever. I'm confident that my current role as CFO of Ørsted is where I can contribute the most to our continued journey, and therefore, I have told our board of directors that I am not a candidate for the CEO position. With that, we will now open for questions. Operator, please.
Thank you. Ladies and gentlemen, if you do wish to ask a question, please press zero one on your telephone keypad. If you wish to withdraw your question, you may do so by pressing zero two to cancel. There will be a brief pause while questions are being registered. The first question received is from Sam Arie of UBS. Your line is now open, sir. Please go ahead.
Thank you very much. Good evening, everybody. Actually, Henrik, this is quite a surprise. I guess I have lots of questions, but my feeling is that there's lots of people on the line and all those questions are going to get asked in a minute anyway. I just dialed in so that I can join in straight away with others on this call in saying congratulations to you for what you've achieved in your time at Ørsted. You described it as an incredible ride; it's been quite a ride for the rest of us as well, I think, as analysts and others following what you're doing, although we were only really the passengers, and you were the driver. It was quite a ride.
I think I just want to use my question slot to say congratulations, thank you, and very best of luck with whatever comes next.
Thank you so much, Sam. That's very kind of you. Again, enjoyed the conversations we've had throughout the years. Again, thank you for your support while we've been on this journey. Again, the journey continues.
I'm sure it will, and we look forward to finding out what happens next. That's all I wanted to use my slot for tonight. Thank you.
Thank you.
The next question we'll receive is from Marcus Bellander of Nordea. Your line is now open, sir. Please go ahead.
Thank you. Congratulations on your decision, Henrik. One question from me. I'm just wondering if you, I guess it's for all three of you. I'm wondering if you have any idea of what the profile the new CEO will have, if you're looking for someone very similar to Henrik, if I may put it in that way, or if you're looking for something different in some way?
This is Thomas here. Of course, what we will be looking for is the right person for the job at this precise time. I think it's important here to stress that, as Chairman of the Board, and the board itself, feel very strongly that we are aligned around the strategy and the journey which we have been on and the journey that we have mapped out and which we've also communicated to you a lot about. We feel that we are kind of in that process, and we are on that journey. Of course, the person we'll be looking for will be for someone who has both the capability and the passion to join that journey.
That, of course, will mean that you have to look at the person's attitude and intellectual capabilities and emotional capabilities, to use modern words, and also to understand and fit in with the values and the culture of the company. It is a holistic approach.
Does it have to be someone with offshore wind experience, or are you also looking in sort of outside that space?
I think Henrik is a phenomenal person to find a successor for. We're also confident that with the profile the company has and the journey it's on, that there will be a kind of a strong possibility there, which means that we will be looking both within industry and outside industry, and we will look in Denmark, and we will look internationally. We allow ourselves with the attractiveness of Ørsted to look throughout the world.
All right. Understood. Thank you very much.
The next question we'll receive is from Alberto Gandolfi of Goldman Sachs. Your line is now open, sir. Please go ahead.
Good evening. First of all, Henrik, thanks a lot for your time, and it's a pity to lose a great manager. Best of luck in your future endeavors, and thanks for great discussions and for making the industry so interesting. I don't think you can get away with it so easily, so I'm still going to ask a couple of questions, if you don't mind. The first one is, if there's a non-compete clause, and if there is, can you maybe disclose for how long it would be? The second one is, if Ørsted is going to host a strategy plan in Q3, Q4, as originally planned. Once again, thanks a lot for your patience, including the one today, and really, best of luck.
Thank you so much, Alberto. I'll just answer on the competition clause.
Yes.
Which there will be, and it's 12 months. I think on the strategy f rom the end of the notice period.
Essentially end of notice period is January 31st, 2021, and then the non-compete will go on for another 12 months from there through January 31st, 2022. On the Capital Markets Day, Alberto, I think what we've announced is that we were targeting towards the very end of this year. We haven't really made any decisions as to whether that's going to be still the timing or whether this CEO transition is going to impact the timing. I think we need a little bit of time to just go back and assess that. We obviously remain fully committed to hosting a Capital Markets Day within the foreseeable future. Whether it will lead to a small postponement or not, we'll have to wait and see. Thank you so much. Again, also thank you to you for the conversations through the years.
Ladies and gentlemen, as a reminder, if you would like to ask a question, please press zero one on your telephone keypad now. The next question received is from Mark Freshney of Credit Suisse. Your line is now open, sir. Please go ahead.
Hi. Good evening. Thanks for taking my questions, and very well done, Henrik. I have two questions for you, and forgive me if they sound a bit pertinent. Firstly, I was going through my own notes and records, and I was trying to see if there's anything you should have done differently, and I can't find anything. If you had one regret in the past eight years, something you would have done differently, what would that be? My second question is, no doubt you'll be interviewing your successors and no doubt when one's picked, they'll be asking you what is the one piece of advice that you'll give me, Henrik. What is the piece of advice that you'll be giving your successor?
Those are good and difficult questions, Mark. Anything I would do differently, when I think back, there are obviously a lot of things, Mark, that we could have done differently, things we should have done, things we should not have done. I'm not sure I'm going to point to anything in particular. I had a similar question earlier today from a journalist just half an hour ago, and I can tell you what I told him, which is, in hindsight, I wish we had been faster in pulling the plug on the Danish Hejre oil field six, seven years ago. When I think back, that's a decision that dragged on for six to nine months too long in hindsight. In terms of advice for successors, again, I'm probably not the one to be providing that advice.
There is a very competent chairmanship and a very strong CFO, and a strong executive committee who take very good care of the next CEO of the company. I'm not sure I'll be the one dispensing a lot of advice. What I would point to is that this company has a very strong soul. It has a very deeply embedded passion for what it does. That passion is a very strong competitive edge for the company. I would look after the soul of the company and nurture it. That it ultimately will continue to drive the success of Ørsted.
Agreed.
Thank you very much, Henrik.
Thanks, Mark.
The next question received is from Deepa Venkateswaran of Bernstein. Your line is now open, madam. Please go ahead.
Thank you. Henrik, I also wanted to thank you for leading the company and the industry, and you've been truly a very inspiring leader to watch and learn from. I think a lot of good questions have already been asked. My question really was that if we had lived in a different world, we would have probably had your CMD one week ago. Was it always your plan to sort of announce post CMD that you were going to step on to do something bigger? Is this some epiphany that has come in the self-isolation for you? My second question is, I think to Thomas, and that is really on the CEO succession. I think in the past, your company has usually had a very Nordic sort of leadership.
Do I take that it might be possible that you're open to a different nationality, keeping in mind the global footprint of the company? Thank you.
Thanks, Deepa. No, it was not my intention to announce this post June CMD. This is frankly something that has matured relatively fast. I felt that this was probably as good a window as there is going to come. The company has come a long way in transforming itself. The growth platform is as strong as ever, and the company is financially and strategically in a very good position. I felt if I wanted to go do something else in my life, now was probably a pretty good time to do so. This is a consideration that has matured relatively rapidly for me. You never know how these things start and how they kind of progress. It's not my perception that it came out of being self-isolated during the COVID crisis. It's not like I've been going through some big existential thing here.
It's just a matter of having been here for eight years, feeling that I've contributed what I can contribute to the company. To be very frank, I admire CEOs who can stay on for 20, 25 years in the same role. I am unfortunately not one of them. At some point, I need to move on. That's also simply a matter of my inner timing.
On the other question there, of course, Ørsted, as I see it, has over the last eight years here, become a truly transnational company. As an absolute natural consequence of that and our presence around the world, we will be looking worldwide for a successor.
Thank you.
The next question we received is from John Musk of RBC. Your line is now open, sir. Please go ahead.
Yes, thank you and good evening, everyone. At the risk of sounding like a broken record, thank you also to you, Henrik, for all your time and expertise over the last few years. A question really to the chairman on the process for identifying the new CEO. Can you remind me on the composition of the board and how much government influence ultimately there will be in that process? Will they have ultimately a veto, I guess, on that decision?
On the latter point, no. This is a board decision, the CEO succession. The board today comprises six colleagues, plus three employee representatives. We are nine in total, all with equal board responsibility. We have initiated the process. Of course, we always, also in conjunction with Henrik, have been looking at what is internal potential within the organization and grooming that and so forth. When we get in a situation as we have right now, the day a resignation hits the table, of course, we need to look at the internal field, and we need to look at the external field, and then make the judgment from there. It is a process which we feel is very important, as I think it is always in these situations, but it has to be very robust, and it has to be as fast as we possibly can do.
We need to have the priority of finding the right person, needless to say. Did that cover your I think there was three parts to your question, wasn't there?
Yes, that does. I was just checking the government, how much influence they have on that decision, or really, is it totally out of their hands?
Of course, they are a majority shareholder. This here is a board decision.
Okay, that's great. Thank you.
The next question we received is from Robert Pulleyn of Morgan Stanley. Your line is now open, sir. Please go ahead.
Hi. Thank you. Good evening, everyone. First question to Henrik. I think we would all love to hear what's going to be more exciting than the leading renewables company in the world, if you can shed any light as to what might be the next steps. Secondly, I think while we all appreciate this may be a personal choice, given it is such a sudden announcement for the market to digest, I feel somewhat duty-bound to ask, why right now? Especially given many exciting growth projects you have ongoing. Lastly, if I may venture a third to Thomas, given there's not a succession plan already in place, is six, seven months enough time to find the right candidate? Thank you very much.
Thank you. No, you're absolutely right. This is one of the most exciting CEO jobs you would find, not only in this part of the world, but I would say even globally. Being a leader of one of the leading clean energy companies is as exciting as it comes. There is absolutely nothing that I don't like about the job. I have a strong trust-based relationship with the board and my colleagues in the executive committee. There's nothing of that kind that would make me walk away. I come back to this being a matter of me having a certain cycle, apparently. It's not something that I necessarily would want to have, but it's simply the way I work. I've been here for eight years. It's been an incredible ride, as I said, and I enjoyed it a lot.
I still enjoy being part of the team here, which is also why I'm so happy that I'll move into the Board of Directors at the next AGM. There's nothing to it except that at some point, I simply have to move on and find a new set of challenges. I want to do it while I'm going full speed. It's in the interest of the company that I don't wait until I'm past the peak. I think it's in the interest of the company that I stop while I'm still going at full capacity. There is nothing else behind this. In terms of it being a sudden piece of news, there is really no other way. It will always come out of nowhere. It's not something you can prepare the market for, right?
There's really nothing else to it than it is indeed a personal choice.
I think it's been eight really good years. Again, eight years is something that I think the whole company appreciates. That's good. It's the longest lasting employment in my professional life. On the question about the timing, and of course, it's impossible to give a guaranteed yes or no on six months or whatever. It is our ambition that we can do it faster than that. Any company like ours here, we of course, we're all the time looking at what are some of the internal potential? What does the market look like? We are talking to the management team about that. Of course, there's a lot of ideas and thoughts in our head.
The right thing now is to say, with a resignation on the table, is to say, "Okay, fine. Now we do the professional process." It's our hope that we will be able to do that faster than the six months. Again, we need to make sure that we find the right person, and it has to take the time it takes. Our ambition level is faster than that.
Thank you very much, gentlemen. Thomas, if I could just pick up on that. Hopefully, you find the right person. We wish you all the best of luck in the process. May I ask, if you don't, for whatever reasons, by the end of January 2021, would we have a different transition CEO, or would you stay on, Henrik? Just wondering about the contingencies of that eventuality. Thank you.
It's not a conversation we've had. It's a bridge you would cross at that point. I don't think there's any need for us to start speculating about that scenario. If that's where we end up, the company will certainly find a solution. I'm quite confident of that. I think we'll cross the bridge when we get there.
Yeah. Fair enough. Thank you very much for your thoughts, and best of luck, Henrik, with the future.
Thank you.
Ladies and gentlemen, again, as a reminder, if you would like to ask a question, please press zero one on your telephone keypad now. The next question received is from Elchin Mammadov of Bloomberg Intelligence. Your line is now open, sir. Please go ahead.
Hi there. First of all, best of luck to you, Henrik, and you've done a tremendous job, and whoever comes in your place will have big shoes to fill. I have two questions. First one is on the type of successor. If I'm not mistaken, you came outside of the power and oil and gas industry. Do you think, is it a requirement for a candidate to come from an energy background, or are you open to external candidates from consumer industry and whatnot? The second question is on the long-term strategy.
Again, you've made the right choice by betting on offshore wind and now on wind in general, as a big lever for growth. As we look to the next 10 years or so, there are a few emerging technologies that could be the future, like, I don't know, hydrogen, carbon capture and storage, battery storage. Do you think any of these merit a big bet like you did on offshore wind, or not, and why? That's all from me.
On the first question, of course, we will be looking globally for the successor, which means that it can both be within or from other industries. It is the right person that is the main target here. I guess on strategy, Henrik, and supplement on that one, but I think the journey we have is very much of a diverse renewable energy major. For example, we did report on the very big hydrogen potential project, which, of course, is an example of expansion into some of the adjacent but very important renewable areas.
No, absolutely. I fully agree with that. Again, as Thomas said, it's probably not a prerequisite to have had a lot of offshore wind experience. On the other hand, it would be a big advantage.
I don't think we should neglect that industry experience is an advantage, but I don't think you could say it's a prerequisite. I joined the company eight years ago without having any energy experience. Of course, having sector experience will always be an advantage. On the strategic bets, I would emphasize what Thomas mentioned. We are very excited about the long-term prospects of green hydrogen, as a further forward extension of our offshore wind platform, not least. We are also, as you know, engaged in battery storage. Whether CCS is going to be a technology for us, it might be. You might actually need the CCS to complement the green hydrogen production in order to be able to produce electric fuels that combine those two ingredients. That's also something we are looking at.
Combining that with onshore wind, solar energy and a global offshore wind platform, the company frankly has so many growth opportunities that I think our key task will be to make sure we go after the right ones, the ones that generate the best risk-return for the company.
Thank you.
We received the follow-up question of Sam Arie of UBS. Your line is now open again. Please go ahead.
Henrik, in the end, I couldn't resist coming back on with a question. I think most of the topics on all of our minds have been covered. And again, I don't want to be presumptuous about what your plans are here. You've been quite circumspect in thinking about what you might do next. I assume if you're going to take a board role at Ørsted, that probably means there may be other CEO jobs at other companies that you wouldn't be eligible for in the same time as being on the board. Do you mind if I just ask you, in theory, if you were approached by one of the oil majors to take over their business and turn them into a green major, is that a role you'd be interested in, and do you think it's possible?
That is certainly not part of my plans, Sam. You could say, I've gladly accepted the offer from the board of directors to be nominated for a board membership at the AGM next year. Obviously, if it was in my plans to join a competitor or an oil major, I wouldn't have accepted that offer. I have a tremendous amount of affection for this company. My loyalty within the energy sector is solely with Ørsted, and that's the way it should be.
I apologize. I was kind of trying to say, I think that you probably couldn't do that because of your plans to stay on the board. I'm very interested, and I guess we won't have another chance to ask you the question for a while. Whether you think that assignment would be doable by somebody.
To transform one of the oil majors like we've transformed Ørsted?
No, I do believe that, just over the past 18 months, I think some of the oil majors are beginning to see that that may in fact be the journey that they're on long term. It'll probably be a slightly longer journey. They have much, much bigger legacy businesses than where we started. Fundamentally, it's the same journey, moving out of fossil fuels over time and gradually building up a future-proof green energy business. I think they have made big decisions recently, some of them signaling that they are, in fact, now beginning that journey.
Interesting. We'll keep following that, and we'll keep following you. Thank you for the answer to the question.
Thanks, Sam.
As there are no further questions, I hand back to the speakers for closing remarks.
Thank you very much for joining, all of you. Stay safe in this special world we have at the moment, and have a great day.
Ladies and gentlemen, this now concludes our conference call. Thank you all for attending. You may disconnect your lines now.