Hello everyone, welcome to the unaudited financial key figures 2022 and guidance 2023 conference call. My name is Charlie, and I'll be coordinating the call today. You'll have the opportunity to ask a question at the end of the presentation. If you'd like to register a question, please press star followed by 1 on your telephone keypad. I'll now hand over to your host, Sebastian Koks Andreassen, Chief Executive Officer, to begin. Sebastian, please go ahead. Thank you very much, operator. Good morning, everybody, and welcome to this conference call regarding Green Hydrogen Systems announcement last night, local time, of our unaudited key figures for 2022 and our new guidance for this year, 2023. It's a pleasure to host you this morning. Please be aware that the presentation that we're putting forward will include forward-looking statements, and for further overview of risk factors, please refer to our annual report of 2021, which is available at our corporate website, greenhydrogen.dk. Today's participants are besides myself, Sebastian, will be my good colleague, Ole Vesterbæk, our Chief Financial Officer, as well as Mr. Jens Binger, who is heading our investor relations function. Ole and I will cover the ground today, which we have planned to be an executive summary, briefly outlining what we are putting forward here in the recent announcement. We will provide a brief update on our business. Ole will cover the unaudited key figures for 2022, as well as our guidance for 2023. We will round off with some closing remarks and as ever, open for any Q&A that you may have. On the summary, we're very pleased towards year-end of 2022 to see the first deliveries of our A-Series electrolyzers to customers. In particular, two customers received their equipment by the end of 2022, and that was following a successful correction program of issues that we discovered with this series during last year. the starting point of us starting to deliver on our remaining order backlog. We have as well succeeded in scaling our production facilities, which, as communicated previously, will be targeting 400 MW in the next couple of years. The raw buildings have been finalized. I'll get back to that in more detail in a moment. And that will allow further assembling and industrialization of assembling of our A-Series, as well as our X-Series, which is also moving forward according to plan. We're reporting, as part of this call, a backlog of 13 MW by the end of 2022. With the recent announcement on Friday of last week, we are very, very pleased with the largest customer order ever to increase our order backlog to plus 20 MW, an increase of 7.2 MW coming from that particular announcement that we did on Friday to an international customer. Our revenue and other guidance metrics are vastly in line with the latest guidance that we updated for 2022. Ole will come back to that in more detail. As said, following a product validation and first deliveries, we also see this as our basis to target a capital increase. We are targeting a capital increase during the first half of this year, 2023, and that will be with particular focus on strengthening our competitive position in the markets. We can also confirm that we are in current dialogue with several of our larger shareholders regarding such potential capital increase. Ole will as well cover that part a bit later in the presentation of this morning. Turning our attention briefly to a business update, firstly on the A-Series. As reported in December, we delivered three A-Series electrolyzers to our customers, and that was during the second half of 2022. We also saw these additional units delivered to customers with positive Site Acceptance Test. In other words, the ultimate confirmation that the electrolyzers are producing hydrogen according to specifications and contractual obligations. That was a very positive turning point for us. As said before, that allows us now to start delivery of our remaining order backlog, as well as opening for new orders to be both taken into our order backlog and further delivered during 2023. The challenges that we discovered last year relating to our A90 electrolysers that we reported in April, they have now been managed and improvements. They continue on system efficiency and also costing out. That is again, what we see as a positive, very positive trajectory for our business and product offering. We see ourselves in a much stronger position today as we compared to where we were at a similar time of last year. In 2022, we also had a total of seven orders that were signed for the A90 electrolysers, and that was with a combined capacity of 5.4 MW. In addition, with the 7.2 MW that we reported last week here in January, we have increased our order backlog, as said, to +20 MW. Then we are seeing a majority of the order backlog that we expect to deliver within this calendar year, the fiscal year of our firm, 2023, and the residual parts to be delivered in 2024. Our guidance, as Ole will come back to, a bit later, thus reflect as well, our opening for new orders, that can be made and taken this year, to a later delivery, later in this fiscal year. Turning our attention also a bit down the road, which is for our future offering, to the market, the X-Series. We're reminding you that these are larger standardized modules of electrolysers. Each module, targeting 6 MW, on six stacks, as you can see from the conceptual drawing, top left of this slide we're showing on the webcast. Also, on the bottom of the slide, some physical pictures and impressions of how the skid frame is actually for the first prototype now being assembled at a separate manufacturing site in Denmark. That is targeting delivery to the first installation towards the end of Q1, with installation during the following quarter. The stack itself, as you can see from the picture bottom right, is a slightly extended stack, and that also allows us to increase in combination with stack length, number of electrodes and current density, the efficiency and the output of the stack, sorry, from 0.45 MW as we're seeing on the current A-Series to 1 MW per stack. That all together comprises the X-Series that we are very happy to progress now in the prototype build. We have major key components such as stacks, piping and gas purification modules. They are being installed and assembled these days with suppliers very closely involved. We also take note of the current supply situation in the market, which is an external factor. We are obviously reliant also on timely supply chains and also the right quality of components. We have, in line with the market, also been structuring on that on certain parts. We feel confident still that we can deliver this first prototype of the X-Series towards the end of this quarter, Q1 of 2023. We have reported earlier that we have successfully entered a partnership with Burmeister & Wain Scandinavian Contractor, BWSC. It's a Danish-based EPC, engineering, procuring and construction company that are helping us out through a partnership on the installation and commissioning of this first X-Series prototype. Also further down the line, we have handled the full wrap of a prototype of this very competitive prototype of the X-Series in combination with EPC services. On the factory expansion sites, we are continuing to position Green Hydrogen Systems as a leading electrolyzer manufacturer. We're doing that, as you can see from the picture. actually inaugurated the new expansion of the building just before Christmas of last year, a bit more than a month ago. That was in fact ahead of schedule and on budget, which is rarely seen in the current market. We are very pleased to compute on that. We have now started the assembling and the ramp up in these buildings, moving in also our staff, operational staff, and equipping the buildings to scale towards a targeted capacity, manufacturing capacity of 400 MW. In a bit, Ole will come into commenting on what we are using as commercial basis for our continued commercial ramp up of the business in 2024, 2025. This is in fact a targeted manufacturing capacity of 400 MW. I believe, as we have alluded to previously, we also see these buildings being able to deliver over time with optimization and industrialization, somewhat higher MW numbers than those 400. The new production facilities, that will ultimately allow us to become an industrialized, deliverer or manufacturer of this equipment and all together towards the ultimate objective to lower the levelized cost of hydrogen for our customers. This is a very important component in doing that and achieving our targets over time. With that said, I will hand over to Ole Vesterbæk, my CFO colleague. Ole will talk you through the unaudited key figures for last year and our new guidance for this year. Please, Ole, go ahead. Thank you, Sebastian. In the following, I'll walk you through the unaudited key figures for 2022 and our guidance for 2023. I'll provide you with more details on the positive development on the company supporting a capital increase target for the first half of 2023. The unaudited key figures for 2022 are fully in line with the latest guidance for 2022, except for gross profit, which turned out slightly more positive than expected. In 2022, we realized revenue from customer contracts of DKK 10 million. This was an increase of around DKK 5 million compared to 2021. The revenue reflects deliveries of A90 electrolyzers to two customers, as announced in early January 2023. Revenue was derived from service of the MAG Zero A30 and A60 electrolyzers, which continue to be operational and producing hydrogen at our customer sites. Gross profit was minus DKK 10 million, compared to minus DKK 17 million in 2021. Gross profit has been negatively impacted by provisions during the year for late deliveries and performance obligations related to the delivery delays. EBITDA was minus DKK 249 million compared to minus DKK 148 million in 2021. The negative development in EBITDA was a direct consequence of our continued effort in R&D activities and focus on resolving A-Series challenges, advancing our X-Series prototype, and supporting general development of our system design and our performance. In addition to the R&D effort, we have, among others, increased our organizational capabilities within sales, health and safety, and production excellence, reflected in the number of employees that had increased from 187 - 276 the last 12 months. EBIT was -DKK 283 million, compared to DKK 166 million in 2021. Besides impacts from EBITDA, the development reflects increased depreciations and amortizations. Following successful acceptance tests and the deliveries of A90 electrolyzer units in December 2022, as well as continued progress in assembly and finalization of additional customer orders, we are able to firm up our financial expectations for 2023. In 2023, we expect revenue in the range of DKK 120 million-DKK 160 million. The revenue range is partly based on the state share of our total backlog with targeted delivery in 2023 as well as in-for-out orders to be signed and revenue recognized in 2023. Due to costs related to delays in deliveries of the 2022 backlog, the recognized revenue has been reduced by around DKK 15 million compared to the initial order value when we signed the contracts. EBITDA for 2023 is expected in the range of minus DKK 240 million - minus DKK 210 million. Gross profit will increase, and we continue to invest in the sales organization and in marketing activities. We also continue to focus on R&D activities related to the X-Series product platform. Our investment CapEx is expected in the range of DKK 270 million - DKK 300 million. The investment relate to production scale-up to the X-Series production line and prototype build. R&D activity continue with focusing on the X-Series and numerous initiatives to further increase the system performance of the A-Series product platforms. It's important to state that the guidance range reflect the uncertainty of the exact timing of the electrolyzers passing revenue recognition criteria within the 2023 calendar year. The exact delivery, Site Acceptance Test, revenue recognition, and EBITDA may be negatively impacted by, for instance, the current supply chain disruptions, inflation, or increasing component and raw material costs. During 2022, we have put major efforts in maturing the A-Series electrolyzer platform. With this ongoing product maturity and the recent customer deliveries of the A-Series electrolyzers in December 2022, the product portfolio has been de-risked. We have also expanded our production capacity ahead of plan and in line with the initial budget in a very challenged market situation. We have now strengthened our organization capabilities in R&D and within sales, health and safety, and scalable production. With the recent orders in Q4 2022 and in January 2023, we are also see existing and new customers showing confidence in our pressurised alkaline technology and product offerings. Based on the product maturity and the de-risking of our A90 electrolyser platform, as well as the positive business development the past period, we target a capital increase in the first half of 2023. A capital increase will support the continued production scale-up, A-Series production line, and prototype build, test facilities as well as R&D activities focusing on numerous initiatives to further increase the system performance of the A-Series and A-Series product platform. A capital increase will strengthen our balance sheet towards large scale customers and product partners. For such capital increase, we have engaged with several of our larger shareholders where constructive dialogues are ongoing. Decision has not yet been taken as to size and structure, and several factors are influencing this. Once we are further along in our plan, we'll come back and communicate additional details to the market at once. I would like to hand over to Sebastian for our medium-term targets and closing remarks. Thank you very much. On the note of medium-term targets, I just wish to clarify one particular aspect, which is that our scaling towards 400 MW of the expansion facilities, that is a targeted capacity or nameplate capacity of the factories. That is not to be misinterpreted with the other numbers that we're putting forward, which is our commercial basis of contracts that we expect to close by 2024 and 2025. As said, those are 75 MW by 2024, and 150 MW by 2025 respectively. That is, as said, the commercial basis for generating revenue in those years, and that is supporting figures of our medium-term targets. In other words, we are still seeing a visibility towards creating more than DKK 1 billion by 2025. However, as also said, a fluctuation in costs, also average selling points, etc., are all together leading us to conducting a wider review of these targets, and we will get back in due time to you with our updated view of this. In terms of closing remarks, the A-Series platform as reported, is now matured and de-risked, allowing us to customer delivery. As well, production facilities inaugurated now ahead of schedule and on budget, very positive, allowing us to position here on industrialization. We across existing customers and new customers, we are confident now in our pressurised alkaline technology and also reporting an order backlog, highest as ever of plus 20 MW as it stands today. Lastly, the X-Series prototype is in progress, targeting delivery to customer site by quarter one of this year, with a later installation in the quarter to come, all together supported by very strong market fundamentals as we see it. We're planning now to close this call, open for any Q&A that you may have, thank you for your attention so far. Thank you. If you'd like to ask a question, please press star followed by one on your telephone keypad. If you'd like to withdraw your question, please press star followed by two. When preparing to ask a question, please ensure your phone is unmuted locally. As a reminder, that's star followed by one on your telephone keypad now. Our first question comes from Casper Blom of Danske Bank. Casper, your line is open. Please go ahead. Thank you very much. First of all, congrats guys on the recent improvement. It's good to see. I'd like to ask regarding the X-Series. Sebastian, you mentioned that you expect to do the delivery here in Q1 and installation in Q2, and then start testing. What kind of in-house testing have you already done on the X-Series? What have you done in order to prevent that you run into some of the same technical issues as you did with the A-Series? That would be the first question, please. Thank you, Casper, firstly on your very first comment. Specifically around the X-Series, we are targeting a testing program, which is in fact how the green Horizon program from the EU is put together. This is a prototype of the X-Series that we're delivering a program with the specific aim of actually testing the prototype. For this first prototype, we are not doing testing at the factory before we send it. Obviously, we make sure that it works in terms of functions, safety, process safety, etc. The testing will take place when it is commissioned and installed at the project end with GreenLab Skive. That's kind of the nature of that program. We're trying to find a similar solution for the prototype 2 that we are building just after prototype 1. In short, no in-house testing before sending the X-Series prototype to the site. On the A-Series and how we have taken the learnings to prevent similar things from happening on the X-Series, it's kind of a twofold answer. Firstly, it is the same technology, the X-Series, as the A-Series. However, it is also a slightly improved design of the overall equipment. From that design, we've actually designed ourselves to de-risk some of the components that we saw from the X-Series, and I'll give some examples in a moment. We have, of course, made sure to have very open channels and communication between the problem-solving team on the A-Series, making sure that they're feeding back their experiences from the A-Series to the team that we have working on the X-Series. We have discovered, these are non-exhaustive examples, in April of last year, some issues around our pressure of the A-Series unit. That was due to some valve design that we have corrected, and that is not a design feature in the X-Series, which has been designed for a slightly higher volume. That's one example. We also discovered some temperature issues on the temperature that we didn't fully manage to evacuate from the container. We have corrected that on the A-Series. In fact, on the X-Series, the power module will be a separate module, so we will not discover the same issue. In many ways, we have taken all the learnings that we could from the A-Series, and on top of that, the X-Series is designed somewhat differently to cater for these issues as well. Excellent. Just so that we understand, given that you then started testing on site in Skive of the X-Series, when do you think this will be advanced enough to invite other customers to come have a look and hopefully be tempted to also buy an X-Series? I mean, obviously, relevant people are welcome to have a look already from the commissioning of the project. But I think to the underlying nature of your question, Casper, this is about spending the months during Q2 and into Q3 according to the program schedule to start tracking the first test results. Then for us to have a similar launch of the prototype 2, as I reported just a moment ago. That will found the commercial basis for us to engage in binding customer dialogues on the X-Series towards the end of this year, with manufacturing and delivery and revenue rec- during 2024. You expect firm orders on the X-Series in the second half of 2023? Please say again. Sorry, Casper, I didn't copy that. You expect firm orders on the X-Series in the second half of 2023? On the basis of successful test results, which is a precondition for taking in firm orders, we have launched already the X-Series. We are in customer dialogues. We track very positive interest from customers on the X-Series. The specific timing is of course always a question. We are expecting to close firm orders on the X-Series from the end of this year and ramping further up in 2024. Thank you. A question regarding the guidance for 2023, the DKK 120 million-DKK 160 million of revenue. Can you say how many MW of deliveries are behind this? Our guidance in regards to our revenue for 2023 is composition of our backlog from 2021 and 2022, as well as in-for-out orders. The expected production deliveries and thereby revenue rec is the main part of our backlog of 20 MW. If I may make a note. Thank you, Ole. I think that answers the question, but I just want to draw your attention to the fact that on the revenue value of the first contracts in our order backlog, we are seeing reduced revenue of these orders due to liquidated damages and contractual payments from us back to the customer due to the delays, et cetera. That does not allow for a one-to-one comparison on average selling point or average selling price per MW by comparing our revenue guidance to our underlying MW that we are targeting to deliver. That will normalize over time, obviously, since we are now starting industrialization and thereby also a more like a one-to-one of the contractual revenue and revenue recognition. Got it. Final question from my side relates to the 2024/2025 indication you gave of 75 and 150 MW respectively. Back when you IPO'd, you talked about a 2025 target of a revenue of DKK 1 billion and delivery of at least 200 MW, suggesting an average ASP of DKK 5 million per MW. Can you give any indication as to how that has developed and what ASP to think about for 2024 and 2025? Thank you. Yes, I can. We are taking a view on a continuous basis on how we see ASPs and also the underlying costs for us, ultimately, our contribution margins as well. You are exactly right that we reported an underlying 200 MW to generate value of revenue value of more than DKK 1 billion by 2025 at the time of the IPO. We are actually seeing here that we can get north of DKK 1 billion with slightly or somewhat lower MW generation. In other words, we are seeing a higher ASP as our underlying assumption for these products go on the short term towards 2025. To be clear, somewhat lower MW number to get to the same revenue number, higher ASP assumption. Perfect. Thank you. Our next question comes from Dan Togo Jensen of Carnegie. Dan, your line is open. Please proceed. Yeah, thank you. Just follow up here to start with. The X-Series, can you just remind us when you deliver on that prototype here, there will not be any revenue recognition on that one, is that correct? How should we think of the financials of this prototype one and prototype two, and when can you start to revenue recognize on these deliveries? That would be the first question. Just understand the technicality about it. Our first prototype for GreenLab Skive is a part of the Horizon EU program, and there won't be any revenue related to that program, as it's combined with the program, and is partly financed by grants. The second prototype is still not a commercial prototype, but we are still evaluating the way it'll be used for hydrogen production. It's not included in the order backlog either, right? No, it's not included. Mm-hmm. Jens here. Just to give some more detail. The first X-Series prototype will be on our balance sheet, that will be part of our assets and our asset base until it will change from a development project into a commercial customer project. That will happen by the end of 2024, when this project turns from an R&D project to an actual customer order. Also at that point in time, we expect the prototype and additional X-Series for the projects to turn into actual firm order backlog. Then a question on the balance sheet. Can you give some thoughts or maybe some color on where you stand cash and deposits-wise here by end 2022. Also how we should think about the cash burn in the course of 2023. I mean, if EBITDA and CapEx alone, you already north of half a billion, and then I guess you expect the down payments as orders, hopefully, kick in, will have an impact. Some comments on that, please. Yes, Dan, you're fully right. In regards to our balance sheet, we are still in a position with a strong cash position. We'll refer to the fact that we are expecting and we are planning for and targeted a capital raise in the first half of 2023. Yes. Is there any way you can comment on how much cash you have currently, including the deposits? We are in the middle of an audit and we have just announced. Okay. All right. The key figures. We are not able to do it. It will not be precise enough to communicate. Okay. At the current point in time. We will come back with that first March when we publish the annual report for 2022. Yeah. That's fine. That's fine. How should we think about the capital raise here? Because in my head, you have missed almost a year now and have additional cash burn in connection with that. So that's one thing. The other thing is, you know, an element of cost inflation. I can understand what you say here, Sebastian, you are partly able to recover that in prices through higher ASPs. So that's of course positive here. How should we think about, you know, what this additional cash injection needs to sort of bridge? Is it one year's cash burn? Is there also an element of additional cost inflation compared to the original budgets? Yeah, that's understood. Dan, good morning. Sebastian here. You are indeed right. As, as we report, we are targeting this capital raise in the first half of 2023. We have this morning to say that that decision has not yet been made as to size and structure. There are several factors influencing this. Whatever number we get down to and, and discuss with our shareholders, as we also talk about here, it will be sufficient for the company to be funded and to strengthen our competitive position, which is the ultimate aim of the capital raise for the years to come. That is also something we need to get back to with more communication and more detail at a later stage. You are absolutely right as well, that the cost inflation that we're seeing and also the ASPs, all that will be factored into our financial model and considerations and scenarios and also stress testing of scenarios that will give us the targeted desire of a capital raise. In other words, no number to report as of now, but we will factor in all these factors appropriately. Okay. Understood. Then maybe a technical question, because I can see, technically you have extended the A90 a bit, and you now can take out 1 MW from each unit, and then the X-Series will rather be 6 times A90 rather than 10 times. What are the gains here for you, and will that just to understand the technicality here and how we should think about the X-Series in terms of MW and, yeah, output, et cetera, going forward, and also maybe ASP-wise? Thank you. I will try to do my best on outlining this without any slide material as my support here, which is probably visually easier. Firstly, the A90 stack has its name from its ability to consume 450 MW, 0.450 kilowatts and generating 90 Normal Cubic Meters per Hour, so that's the 90 number. The like for like number with the X-Series will not be the same. Each of those will actually be 200 Normal Cubic Meters per Hour per stack. We're calling it the X-Series, but the underlying stack output is actually more than double. The way we do it is to use the same electrodes. We are constantly as a business, and we will do that over the next many, many couple or many, many years to come. We are working on improving our stack efficiency, in other words, the generation of hydrogen based on the electron energy value that we put into it. How we do it is to extend the stack length. In other words, adding more electrodes to what you refer to the A90 stack for that to become an A200 stack. That's also a function of the current density. There is a linear relation between the current density and the amount of hydrogen you can produce over the electrodes. There is also a trade-off curve, which is the efficiency that will drop the higher the current density. Here we have found that extending the A90 stack from 125 electrodes to around 207 is what takes us there in combination with current density. I'm happy to go dive deeper on the technical details, but I will pause here. The X-Series going forward will rather be 6 MW than the 7.5 we initially thought or possibly use. Thank you. If that was the background for your question, you are right that we reported a range from a somewhat lower number to 7.5. We can with this stack achieve a number like 7.5, slightly lower or slightly higher. That will maybe be achieved through a higher current density over the electrodes. That is yet for us to improve and to land with our R&D efforts, how to do that. As a starting point, you are indeed right that each of those MW each and six of them, they will be 6 MW. That is what we're putting into the stack. The overall design of the entire equipment is done in a way so that we can actually increase the output per stack or the power consumption and output per stack, and there, without doing any changes of the balance of plant. Mm-hmm. We have headroom to increase stack efficiency and output, without changing design of the entire unit. Okay. Sounds good. Thanks a lot. Thank you, Dan. Back to you, operator. Thank you. As a final reminder, if you wish to submit a question, please press star followed by one on your telephone keypad now. Our next question comes from Patrick Jones of JP Morgan. Patrick, your line is open. Please go ahead. Yeah, good morning. Thank you for taking my question. The first one would just be on the CapEx guidance for 2023. If we were just thinking about this sort of on a go forward basis, is the level that you guide for 2023 sort of a safe level to assume given the cost inflation we've seen across the industry and the market in general? Is that a safe level to assume, say, for 2024, 2025, or do you expect that to dramatically fall in those years? Our CapEx and investments are as a part of our design as a growth and R&D company. We are expecting it to peak in 2022, but there's also significant CapEx and investments built into 2023 as reflected in our guidance for especially, development of the X area and the production line, test facilities and other initiatives. I appreciate that. I guess my question would just be, do you expect some of those kind of similar ongoing R&D projects to continue to be at the same level going into 2024? Yeah. We don't expect our investment level related to the current activities to be at the same level in 2024. Okay. All right. Thank you. Then maybe just on the medium-term targets, we obviously talked about the DKK 1 billion level for revenue. I was also wondering just on the gross profit and the EBITDA margins. I believe at the time of the IPO, the guidance was for around 25% gross profit margin and at least reaching break even on EBITDA by 2025. Is there any comment you can give on that? Would that still be achievable, or do you think that's gonna be separately still pushed out? Well, Patrick, and good morning. Sebastian here. Thanks for joining. Firstly, you are indeed right that there were additional metrics that we put forward in our medium to end target as part of the IPO. Revenue is one. The contribution margin is another one. And we are also taking a full overview and update of all our medium-term targets and also those metrics. Contribution margin seems very much in line with how we saw it back then, and also required for the OEM to become cash positive on a free cash basis as well, that we are able to cost out in combination with the ASP to have a contribution margin in the level that we targeted as part of the IPO. Operating result or EBITDA is also being updated, and that will be subject to separate reporting at a slightly later stage. That is probably the one where we can see a slightly higher ramp-up of our expenditure will or can cause this number to slide from becoming positive as per previous assumption in 25 to become positive in 26 instead. Okay, great. Probably back to the starting point. We are undertaking a full review of these metrics, and we'll get back to you accordingly. Okay, great. Thank you. Thank you. We currently have no further questions, so I'll hand back over to Sebastian for any closing remarks. That would really be it, both for the analysts putting forward questions here and for the rest of you joining. Thank you very, very much, and rest assured that we are, as a management team and a business, extremely exciting now to be approaching a new calendar year with the positive results we've seen on the A-Series and also pushing forward on the X-Series. Next time we are planning to get back to you with more is when we report our annual report of last year. That will be a full call again on March first in a bit more than a month time from here. Otherwise, thank you very much for paying attention this morning, and back to you, operator. Ladies and gentlemen, thank you for joining. You may now disconnect your lines.