Good morning, and welcome to- Hello, everyone, and welcome to the Green Hydrogen Systems Q2 2024 Interim Report. My name is Nadia, and I'll be coordinating the call today. If you would like to ask a question, please press star followed by one on your telephone keypad. I will now hand over to your host, Peter Friis, CEO, to begin. Peter, please go ahead. Thank you very much. Good morning, and welcome to our webinar. Today, we will present the first half year results for 2024. Today's presenters are Søren Rydbirk, CCO, Ole Vesterbæk, CFO, and myself, Peter Friis, CEO. We will go through our business highlights, the finances, and the guidance. At the end, we will be open for questions. Now, I will start going through the business highlights. At the moment, our turnover is driven by our A-Series business. During the coming year, our business is expected to transition to X. We currently produce our A-Series units, and we see good progress in our capability in sourcing, assembly, and test. We clearly benefit from all our product improvements that we have implemented. Together with the expanded test capacity, we have good conditions for delivering the planned deliveries for the second half of 2024. We constantly collect and analyze fleet data to improve performance of our product. Our improvements are being rolled out through our retrofit program, and based on that, we see step-by-step better performance in our installed fleet. I'm really excited. The X-Series is the best product that we've ever had. 2024 is upon the time where our X-Series meet reality, and we start doing X-Series business. 2024 is also the year where we see the results of all the good work that has been done by our design team, designing the X-Series. The X-Series prototype continue to improve performance through our extensive test programs. Our facilities in Kolding are now prepared for building the first X-Series units. Our customer acknowledge our effort and our dedication to deliver a high quality product. The next step is to ensure competitiveness and profitability. A part of that exercise is a cost-out exercise. We have already initiated that work. As we transition our business into X, we also depend on X-Series order intake. We have never had a better product, and based on that, and based on our positive, ongoing customer dialogues, we expect order intake on the X-Series during the second half. Now, I'll hand over to you, Søren. Thank you, Peter Friis. In 2024 first half, we secured new order intake of above 8MW from the A-Series. At the same time, we delivered 6 electrolyzers, around 5 MW to customer sites in Sweden, Germany, the Netherlands, and the United Kingdom. We still have 15MW scheduled for delivery in 2024 and 2025, and that will bring our installed capacity above 26 MW across 9 countries in Europe, including Australia and Chile. As our CEO, Peter Friis, said, "The X-Series product is the best product ever that Green Hydrogen Systems has been able to bring to market." We see strong customer interest for the X-Series product. Let me elaborate a bit on the sales process and the steps. In February, we reached technical proof of concept from the X-Series based on our prototype in Denmark. Based on further reliability tests, as a second step, early July, we have been able to provide binding offers, a performance share-based pricing structure to select customers. As a third step, early July, we will step into binding offers for full commercial terms around the X-Series. It's important to note that our customer dialogues around the X-Series goes several years back. We have customer dialogues all the way back from 2022 and 2023 around the X-Series. It's also important to note that the customers in those dialogues are very far with their project maturation. They have sites in place, they have off-takes in place, and they're working to get the final project financing in place. With all this, we have high trust that we will achieve the first order intake from the X-Series in 2024. In terms of the market outlook, the development in the market fundamentals continue to support a future green hydrogen-based energy sector. We still see hard-to-abate sectors where we need green molecules coming from green electricity. We are starting to see the EU Hydrogen Bank coming in place and into play. And lately, here in July, we saw several final investment decisions, decisions coming through, many of those from energy majors such as Shell, BP, and RWE. I think that is strong. We, of course, also see that the market is facing challenges due to high project costs, complex value chains, and limited off-take, and we especially see that for multi-megawatt large scale projects. But if you are looking into our pipeline and customer dialogues, we also see a mid-size segment of 50MW to 100MW projects, which are fitting our A-Series very well, progressing. In this segment, we see players that are really, really strong to create off-take and control the off-take, and they are really, really strong at integrating projects all the way from renewable energy up to the use of hydrogen. This capability you see, especially in this segment of 50MW-100 MW, and we are very comfortable with that. Thank you, Søren. In the following, I'll walk you through the key takeaways from our first half year financial results, as well as updating you in regards to our full year estimate for 2024. We have, as just outlined by Peter Friis and Søren Rydbirk, realized a lot of progress in regards to our A-Series and our ability to test in Kolding, as well as delivering A-Series to our customers. As a result of the business performance, we have concluded our first half year financial results by realizing a net revenue of DKK 32.6 million, which are more than doubled compared to the DKK 14 million in the first half of 2023. The revenue is heavily impacted by late delivery fines, which means that we can't link our revenue per megawatt directly to our sales prices. Our EBITDA is improved by DKK 30 million, compared to first half of 2023, due to significant lower retrofit costs than we experienced last year. Then, we have overcome the highest share of our investments, which means that our investments in the first half amounts to DKK 66 million, which are DKK 90 million lower than last year. Finally, our cash and cash equivalent balance by end of June is DKK 360 million. Looking into our balance sheet, it's DKK 2.2 billion, compared to DKK 1.7 billion last year, which are a result of our rights issue capital raise process in 2023. Our stock is slightly higher due to the finalization of a number of electrolyzer units in our warehouse. Yes. I would like to go through our full year expectations in regards to our guidance. When it comes to our guidance, reflecting our full year expectations... Yes. Our guidance is based upon our realized figures for the first half year, as well as our latest full year forecasting, reflecting our ability to meet the full year expectations we have communicated the eighth of February this year. Green Hydrogen Systems maintains its ability to achieve the guidance previously communicated, which means that we are gonna deliver revenue in the range from DKK 125 million-DKK 165 million, and EBITDA from -DKK 220 million to -DKK 260 million, and total CapEx investments between DKK 160 million-DKK 200 million. I'll now hand over to Peter Friis for closing comments. ... Thank you very much, Ole. We maintain our guidance for the full year. We continue to navigate in a challenging market, and our industry definitely need political support. Our strategy is to continue to improve our products, to make sure that we deliver the best possible solutions to our customers. We see clear improvements on our A-Series and our ability to deliver. I have a good feeling, and I have a good confidence in our X-Series product. The test results are good, and we have promising customer dialogues. We are now open for questions, and I will hand back to the operator. Thank you. If you would like to ask a question, please press star followed by one on your telephone keypad. If you would like to remove your question, please press star followed by two. When preparing to ask your question, please ensure your phone is unmuted locally, and the first question goes to Dan Togo of Carnegie. Dan, please go ahead. Yeah, good morning, it's Dan Togo from Carnegie. A few questions from my side here, I'll just take them one by one. Firstly, regarding the X-Series, you explained here you have some commercial dialogues, and you also explained that some of them might include some performance-based pricing structure. Could you elaborate a bit on this? How is this composed, and what does it do to the payment profile, once we see, you know, the orders from this flowing in? That's the first question. Yes, sure. I'll answer that. The performance-based contract is for select customers where we are deep into the customer dialogue and where we are getting close to a final project. It's a contract where we are, you can say, providing a discount on the total price up front, and then we are delivering the equipment to site. We'll have an extended test period for these projects, and they will be the first of its kind for the X-Series. And during that test period, we'll have a performance test. Based on that performance test, we'll add a variable, you can say, price structure or a variable fee on top of the base fee that will go all the way up to the full price. That essentially means that, that we are sharing, you can say, the risk for the first units in terms of availability. And we, of course, do that because we expect to get a high availability. We see that on our prototype, and thereby we also dare to go in with us an offer to help the first projects of the X-Series. And the down payment profile, so say, the cash component, how is that impacted by this? Yes, let me elaborate. The cash profile is based upon our standard expected installments for a commercial unit, but calculated with a lower sales price, which means that the amounts are gonna be smaller, but based upon the same payment structure as a full commercial product. Okay. Understood. Then you also mentioned here that you are entering into second phase reliability testing for the X-Series. How many of these testing phases is left, and what is it that is critical to test right now? I just want to get a feeling of when you sort of say are out of the woods and this product is commercially viable. Yeah. It's better for me to answer that question. Thank you very much. First, it's very, very important for us to document that we have a bankable product, and this means actually that the specifications that we are promising our customers, that we can deliver that. We have validated those parameters. Now it's left to document our reliability and uptime of the product, and we are progressing extremely well in that program, and we are very close to launching the product for full commercial sales. So that will happen relatively soon. Okay. But after that, we will, of course, continue to do the testing, because it's very important to learn all we can about the prototype. Yeah, yeah, and I understand that, yeah, this will also be on the first commercial orders, as you mentioned just before here. So understood. Then, Ole, you mentioned you cannot compare what you deliver and the revenue before, and I, of course, done the math backwards here to see what the ASP is on what you deliver. And is there anything? Can you just elaborate a bit, what is the technical part here that takes down revenue at the moment? Are there any penalties, et cetera, so that we cannot compare what you deliver in terms of megawatt and the revenue component? The units being delivered at the moment are some of the first units we have sold, which means that it's those where the LDs has been kept, and thereby the sales price is significantly lower, so in second half of the year, we are going to deliver some of the latest sales orders, which means that the sales price per megawatt is significant higher. Yeah. And could you give a value of the order book as it stands right now? You have these 15 MW for delivery. What is the value of that? In regards to order backlog, we have, and we are only going to announce the megawatts, not to be able to both unveil the ASP as well as the megawatts. So the order backlog is currently 15 MW. Okay. Understood. And then just to understand how exactly you get to this 15 MW, because you had 17 at end 2023, you have 15 now at end first half. You have received orders of 8, but you have only delivered 5. I would say the pure math of it should suggest that you have delivered 10, but you have only delivered 5. What is the difference here? Or Or has anything exited the order book? During the period of time, we have had two cancellations, which are the difference you have calculated. Okay. That's it for me for now. Thanks. Thank you, and as a reminder, if you would like to ask a question, that's star followed by one on your telephone keypad. And the next question goes to Casper Blom of Danske Bank. Kasper, please go ahead. Thanks a lot. Just a couple of follow-ups here from me. You mentioned in the statement today that at sort of first glance, you expect to have the available capital you need into 2025, depending of course, on prepayments from X-Series. Could you help us a little bit understand how much prepayments or how many prepayments on the X-Series you need here in the second half in order to feel comfortable with your capital position into 2025? That's the first one, please. Let me elaborate. As a part of our rights issue capital raise, mid-2023, our simulation model and the estimates of the midterm targets were based upon a number of assumptions in regards to the business development. That, of course, are both associated with the revenue, our production costs, our order intake, and thereby when the prepayments are going to be realized. We expected, and it's material for our midterm financial and operational success to get the X-Series orders from a capital reserve, and prepayments are important, as also outlined in the prospectus. So we need a number of A-Series orders. It's of course depending upon the size, how many orders we'll need in the second half. Just to clarify, you, you said A-Series orders, shouldn't it? It is X-Series orders you need, right? Yes, we have sufficient A-Series orders right now and only need to deliver our backlog to stay well within our guidance range for revenue. All right. That's good. Then my second question actually goes back to the annual report, where you wrote that you would be revising your medium-term targets in 2024. Any update on when we should expect such a revision? We are going to revise the midterm targets later in 2024, when we know more details in regards to our reliability, our dialogues with X-Series customers, and we have a clear picture to which extent the X-Series orders are going to support the future midterm plan. All righty. Then my last question just goes to the... was it 500MW or 550 MW of dialogues that you highlight in today's report. Could you elaborate a little bit? Are those projects that you have sort of exclusivity on and sort of that, you know, basically, if everything goes well, everything will turn into orders, and then it becomes sort of a matter of whether or not these projects go through. And if also you could provide any kind of timeline as to when we could expect this to turn into firm orders. Yes, Søren Rydbirk, I will take that. It's a pipeline of many, many, many projects. And we are talking here several gigawatts of a project pipeline where we have selected around 500 as priority one projects. These projects are, you know, projects of one to two units. We have many of those, and you also have projects of 20MW to 50MW and 100 MW in there. So it's a mix of that kind of projects. As said, it's expected that we close the first orders here in 2024. And it's also quite different sales processes. You can say for some of the one to two unit projects, it's projects where we are in final negotiations, seeking to help projects to materialize or among one to two players left in the final race. So you have these kind of projects, but you also have large projects that has been in planning and project dialogue for, you can say, up to a couple of years, where we are looking at other sort of final tender process in a race of that, or we are looking at a larger reservations of capacity for projects further out. If you're talking about exclusivity, we have actually none of that, but I can also say that we have been awarded through FEED studies by EPC companies, winning those, which puts us in a good position, of course, and now we're in final tender. And we have also supported some of those projects, ensuring funding over the last 18 to 24 months. Thanks, Søren. Looking forward to see what happens the last four months of the year. Thank you. We have no further questions. I'll hand back to Peter for any closing comments. We've just had a follow-up from Dan Togo of Carnegie. Dan, please go ahead. Yes, thank you. I was just wondering here, what does the statement that you have that these very large projects now are challenged between some, you know, some cancellations, et cetera, to the market outlook that you have? I mean, in order for this technology to really go commercial and be competitive, we will need a very large projects. So, what does this do to the market outlook? Are we still going to see these very large projects, but at a later stage, and will the curve be more flattish, and then we'll have a huge hockey stick at the end, just a few years out and closer to 2030 or something like that? Could you give some color on how you see the market? Thanks. I think if we're looking at some of the larger projects, we are seeing them slipping in time, so it takes a longer time to mature and get the full value chain in place. It is integration between renewable energy, electrolyzer capacity, and sometimes even for sort of further processes to get to green fuels, and that's a quite complex value chain, and I think the industry in general are seeing that takes longer time. The bigger the project- Well, what- The bigger the projects, the more complex it becomes. I think several players are seeing that you probably need to take a stepwise approach, trying to face some of these projects, and thereby we see some chunks of those projects being in let's say, a 100MW scale instead of, you know, 500MW. So that's a slower progress, but quite still, I would say, quite a big uptake in the market. Where are the challenges? This is on the electrolyzer side, or I guess the renewables, the wind, the solar, et cetera. They have been up and running for a long time. Where is it especially that the challenges are to get to these larger scale projects? You cannot point to one element only. As mentioned, it is a complex value chain. If you're talking multi-megawatt projects, you need massive investment still in renewable energy to feed into that. So that is one thing that needs to get in place. The other thing is the off-take, and here you have still higher project costs in many instances than what the market is willing to pay for, and that is also why we need regulation to support when it comes to scaling this. Then you have in a mid-size range of projects, you have some developers and asset owners that are creating their own off-take. They are maybe decarbonizing their own operations, replacing fossil fuels by hydrogen. If they're sitting on the off-take themselves, it's easier to progress projects. But again, those projects are typically smaller than when you're talking about green fuel projects for methanol or ammonia. Understood. Thanks a lot. Thank you. Back to you, Peter. Yeah. Thank you very much for participating, today. I have no further remarks. Thank you. This now concludes today's call. Thank you for joining. You may now disconnect your lines.