Good day, and thank you for standing by. Welcome to the NKT Annual Report 2022 conference call. At this time, all participants are in listen only mode. After the speaker presentation, there will be the question and answer session. To ask a question during the session, you need to press star one one on your telephone. You will hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to our speaker today, CEO of the company, Alexander Kara. Please go ahead. Thank you. Good morning everybody on the call. Thanks for joining this call where we present our annual report and the Q4 numbers. With me in the room is Line Andrea Fandrup, my CFO, and she will also take a part of the presentation. Let's come first to the key messages from Q4. We had an organic growth of 35%, which was driven and supported by all three business lines. We had a high order backlog, reached a new level, with new awards in different segments and also variation orders in existing projects. The EBITDA improved operational, from driven by all three business lines. The NKT board of directors will propose to increase NKT share issuance authorization up to 50%. I repeat, up to 50%, to have the flexibility to act on future growth opportunities. Let me go here a little bit into details. The high voltage market has grown fast, and it has grown faster as anticipated when we had the capital market day last year. We have seen EUR 5 billion in 2021 on orders on market. Last year at EUR 8 billion, around EUR 8 billion. We see for 2023 and 2024 at least EUR 8 billion in average. Could be even higher, it depends on how many projects materialize. This is a great opportunity for NKT, and we are aiming to keep our fair share on this development. Subject to significant project awards, we are preparing to expand our production and installation capabilities even further. In the past three years, we have invested in a disciplined way in new capacity on the back of sizable project awards. I want to mention here again the Corridor project in 2020 and the Champlain Hudson Power Express last year. This we have a staged investment here. We need the financial strength to support our current and future high voltage backlog in a market with a high growth rate, with tender horizons are longer than earlier. We are transparent communicating that we are potentially need to issue up to 50% shares in order to have the flexibility to act on a growing market. This is related to the shares. Let me now come to the Q4 highlights. In solution, we have grown on the revenue on operational EBITDA based on the activities in the business line. We progressed well on the execution on several orders. In application, we could also grow the revenue and increase the prices. We could pass on the high inflation or the pressure on several cost items, but we have still seen low activity on the building wire, which is negatively impacted by the recession. They're still the same what we have seen in the quarter before. Operational EBITDA margin has slightly improved in Q4 2022 compared to the year before. Service and accessory grow revenue slightly organically, and operational development is positive, driven by onshore activities. I come later back to service and accessories. If you look at the full year, we ended at the top end of the guidance in sales and EBITDA. We had a record high orders received of EUR 2.7 billion, which is the highest ever. As a company, NKT passed first time the EUR 2 billion revenue on market price. This due to a 15% growth the third time in a row. We have done a good progress on the sustainability part on the CO2 emission, which we do 20%, which is now 79% down compared to the baseline of 2019. Coming to solution, as I said already, solution, we had a good development on the revenue growth and operational improvements, as you can see it here on the numbers on the right side, 90% growth to EUR 217 million and EUR 27.2 million EBITDA. We worked on different projects as listed here, and we have seen, as expected, lower activities of the Victoria in Q4. The factory expansion upgrades in Karlskrona and Kolding continues as planned. If you look at the full year development on solution, we improved 1.1% the EBITDA margin from 2021, from 13%- 14.1%. Looking at the market, we have seen in 2022, market around EUR 8 billion and roughly 80% were long distance high voltage interconnectors and DC offshore wind. The strong market. I mentioned already the EUR 2.7 billion which have we been awarded, and most of the project, the majority of the bigger project are listed here on the table with Hugin and Munin, called before Krafla. Draugen and Njord, in power from shore and interconnector, Haugaland from Canada to New York, Champlain Hudson, and SuedOstLink second system. Some other variation order add up to EUR 2.7 billion. The Norwegian project, our three-core AC project, which gives us a better mix in the factory. The addressable market for 2023 and 2024, as mentioned already, is at least EUR 8 billion on average. Could be even higher, depends on how the development is on certain orders. We see also in the coming awards that the majority of the orders will be in DC technology. Nevertheless, there will be also AC orders, which is also important to us. If you look at the high voltage market development, we have increased our backlog to EUR 4.7 billion from EUR 4.5 billion, or to EUR 4.1 billion in standard metal price. You see here that we expect 25% out of this EUR 4.1 billion to be turned into revenues in 2023, and 75% on 2024 and beyond. We work all on this segment of shore wind and interconnectors, power from shore, and we are getting a little bit more international, as you can see on the flags on the right side with the Canadian flag. Coming to application, we have seen here positive development. Q3 was for us a tough quarter, where we have seen the full impact of the Russian-Ukraine invasion in terms of input costs. We could do a good job here in Q4, and could increase prices and pass on the inflationary pressure on cost items to customer, and could increase prices. As mentioned already, building wires volume was still negative impacted. We had a good growth on the medium voltage business in volume, but also price developed positive and we see good momentum in the market here. Building wires, as I said, is down including 1 kV particular copper, which is used in the construction business. Coming to service and accessories, we had a growth, a slight growth from Q4 2021 to Q4 2022, 1%. operation EBITDA improved significant. This was mainly driven by a reverse of provision of EUR 4.7 million, but we have also an underlying performance which was satisfactory. The EUR 4.7 million was reserved. As you know, in 2021, we had several offshore repair orders, very complex partly offshore repair orders. When you make when you have these orders, you make an assessment whether it is, how is the likelihood that you may go out and need to repair. If you need to re-repair because of the complexity, then of course it is an high amount. We have taken this provision in order to be prepared in case that would happen. People have done a good job, and this was not needed. This is why we could reverse this EUR 4.7 million provision. We had high onshore maintenance activity repair in Denmark and in Germany, and the high sales activities that failed to generate in the high voltage, which wiped out the lower sales in medium voltage. Coming to sustainability, as mentioned already, we reduced our CO2 emission by 20%, mainly by changing to biogas, but also switching to renewable energy in offices. This is a big step, a big step further. We have reduced, also improved our Total Recordable Injury Rate from 1.19%- 1.14%, and we plan to co-reduce that further, and our goal is to be half as good, 0.6% in 2028. Also important in the diversity aspect, is important to hire female hires, and we have improved here, new female hire from 19%- 21%. With this, I would hand over to Line, and she gives you the details on the numbers. Thank you very much, Alex. Dwelling here on the income statement, Alex covered already the growth from in the Q4 of the 35%, where all of the business line contributes. Similar on the full year, we have a 15% growth for the third year in a row. All of the business lines are contributing. Service and accessories has a, let's say a very strong comparison base back from 2021, where services had a lot of repair jobs. That is coming down a bit, though. When you look at the operational EBITDA margin, you see also in as Alex mentioned, the close of Q4, a good recovery from ex-application, which was central, and also a solution that enabled a very different earning level than back in 2021 for Q4. For the full year on the earnings, especially solutions are the contributor to the step up on the margin level here in 2022. Good job. Looking at the net result, it's a significant step up from 2021, EUR 55 million, contributing of course from the positive earnings. On financial items, we are also getting a bit of support into the earning to the net results from that. If you look at our full-time employees for the full year, it also reflects a very high activity level in the company. It's very good. We welcome all of our employees at the different sites very much into our production to enable the capable production of the years ahead of us. Turning over to the cash flow statement, dwelling here on our net working capital, which had a very strong finish of the year, which is usual, let's say, for NKT. We had some good prepayments and milestones coming in in Q4 enabling that. That also enabled the free cash flow generation of Q4, EUR 142 million, and the full year EUR 92 million. Catering well for our investment activities, which continue to be at a similar level as 2021. You know that we have invested in our German factory and our Swedish factory, and we have continued especially Sweden since summer to move further on that. All in all, a lot of good activities there to support the future and the growth ahead of us. Coming to the balance sheet highlights, worth to notice here the improvement in ROCE compared to last year. We are at 6.6%, very much from the earnings level, and of course, of the capital employed in general. We are continuing looking into improving our ROCE level as we also have in our medium-term ambition. The future years will absolutely also be a key focus on that. The net interest-bearing debt ends at a low level of EUR 55 million and a corresponding leverage ratio of -0.4%. Just to make the note also here in terms of our guarantee levels, very much a key to securing our projects, our tendering efforts. At the end of 2022, we had issued guarantees of EUR 1.2 billion, up from EUR 1 billion the year before. These are very key to the whole tender activity ongoing for the high voltage projects. Turning to the next slide, our financial outlook for the year. A revenue expectation of EUR 1.75 billion-EUR 1.85 billion, so significant growth from, well, from our 2022 levels. Our operational EBITDA level of EUR 185 million-EUR 215 million. Assumptions of the levels here, a word to say that, of course, we are assuming a satisfactory execution of our high voltage projects. You see them, if 25% of our current backlog is to be executed this year. A lot of the larger projects we obtained in the last year is at the early stage of execution, and that's a part of our guidance for this year. We can take in a bit more orders, both within the AC, but also variation orders, and that could improve our profitability even further. We need to see the applications performing well. There was a risk and uncertainty of 2022. We have not put that fully behind us. Inflationary pressure and cost increase is a part of the current market. That will remain to be something we will steer very tightly. In terms of the repair jobs we do in our service business, I think fair to say that the activity level there has certain fluctuations. In 2022, we had more or less half of the activity level of 2021. Of course, they can also have a swing into our earning level of the year. We assume a good performance here with limited impact on global macroeconomics, supply chain challenges and the high inflation pressure in general. That is our expectations for the year. Closing out with the key messages of Q4. A 35% growth from all of our business lines. A record high order backlog level going out of the year. Improving our operational EBITDA broad-based from all of our business lines. With the board of directors of NKT proposing to increase the share issue and authorizations for rights issue, to have a flexibility to act on the very strong future opportunities of growth and securing that NKT can take our share of the markets ahead of us. With that, we will turn over to Q&A. Thank you. Dear participants, as a reminder, to ask a question, you need to press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile the Q&A roster. This will take a few moments. Now we're going to take our first question. The first question comes to the line of Casper Blom from Danske Bank. Your line is open, please ask your question. Excuse me, Casper, your line is open. Please ask your question. Here we go. Sorry about that. I have a couple of questions, please. If we could please take them one by one, then you don't have to write things down. First of all, regarding the potential issue of new shares, Line, you mentioned that your guarantees are up to EUR 1.2 billion. Could you maybe comment a bit to what extent are these guarantees also, and expectedly even higher guarantees in the future, to what degree are these also part of your considerations with regards to strengthening the balance sheet? If you could sort of maybe discuss a little bit the weight of that and potential capacity expansions. Also maybe give us a little bit more flesh on sort of these guarantees. What is it really that customers are getting guarantees for? That's the first question, please. Thank you, Casper. That's a super good question. Definitely, the guarantee lines is sold into NKT growing and the share issuance here that the authorization of up to 50%. It's what we've seen over the last six months is a market that is having a very high pace and also tender activities that have longer horizons than so far. That means when we go in and secure orders of the future, that we need to ensure similar guarantees for that. Usually the structure, but it can differ very much, and this is of course also something being debated, is what kind of guarantees do you actually put up for security? It's for key payments, you would usually put some relativeness into a guarantee there. It can also be performance bonds. This is the structure. That is what we also need to secure with a strong balance sheet. Could you sort of say, you know, if you were to put weight on it, how much of a potential issue would be due to the need for higher guarantees, and how much would be due to capacity? I think for now, what we're doing, and we will come back later with being much more specific of a potential rights issue. It's important to say that it's also an authorization up to 50% that the board of directors is seeking to get here. We will come back to that later. I think you can assume a certain size into this due to that. Okay. Thank you. My second question builds a little bit on this. We've seen that some of the larger TSOs have issued framework tenders. Have we learned anything or have you learned anything new about the terms of such tenders? You know, would these TSO be willing to give prepayments that could substitute some of your potential spending on capacity expansions? Anything sort of on the terms of such framework agreements would be really interesting. Yeah, of course. I mean, if you look at these frame agreements here, Casper, has different approaches. Definitely the part is prepayment and advanced payment guarantees. That can vary between, yeah, the different percentage, let's say 5%-15%, where you need to bring the guarantee. Like that, customers obvious, several will participate in these, the tenders for the frame. Some try to harmonize the terms and conditions so that they can evaluate on a fair basis the different participations in the tender, in the frame agreement. Okay. These frame agreements, are these sort of the potential upside to the EUR 8 billion that you talked about in addressable market? Yeah, these frame agreements are partly in it and but goes also beyond. Mm-hmm. But the frame agreements will be, have a sizable amount. But it will become, let's say, an order once it's called off. So, just as a location of a frame agreement of X billion, as we call it like this, doesn't mean it's automatically an order which you can book. So you need to wait until it gets called off. If you are looking at this frame agreement, we are talking a production of 2026 and beyond. This is also why we are saying we need to prepare ourselves for the future, having a stronger balance sheet, including our capital structure to be ready to be a bigger company in a few in the years ahead, provided we win the orders, of course, or part of it. Thank you. Last question from my side, a little bit more operational. I at least was a little bit disappointed about your EBITDA guidance for 2023. I was hoping maybe you could shed a little bit of light on the how could you say margin profile in some of the high voltage projects that you're starting up here in 2023. Is it fair to assume that the sort of relative margin on these projects get better and better during the production of the projects as you get more and more certain about it? Okay. Sorry that we disappointed you slightly, huh? I said before, we have seen improvements on the solutions on the margin 2021 to 2022, from 13%-14.8%. We are seeing that the margin improving the gross margin in the backlog. Of course it is the question of phasing and also how you, the revenue recognitions is also based on activities. Do we have a lot of installation activities and so on. Obvious, the guidance what we have provided is, we are striving not for the low end, just to be clear. We have seen last year also a lot of impact particularly in the applications from this inflation and pressure as a consequence from the Ukraine. We have also seen that with unhedged items in the solutions business. We work of course hard to deliver our promise, and our promise is not the low end of the guidance. Understood. Thank you very much. Thank you. Now we're going to take our next question. The next question comes to line of Kristian Johansen from SEB. Your line is open. Please ask your question. Thank you. Two questions from me. First of all, again, going back to sort of your increased estimate on expected market awards. Just to understand what has moved exactly in just the last few months. I would assume that it's not new project which has come in given the lead time of this project. Is it the scope of projects which has gone up, or is it just the probability you see of projects actually being awarded that's gone up? Can you elaborate on that? I mean, definitely if you look at the development on these projects, they get bigger and bigger. This is also a just simply of more and more projects going to 525 kV with three cable including metallic return. A project getting as it was in maybe in the past, EUR 300-EUR 400 million to now EUR 500 million and beyond. We see this framing agreements. What we get step by step, the RFQs, they are massive. They are massive. Where the TSOs want to secure the supply chain for the year 2026 and beyond. It's big. What you're saying is as you get sort of firm tender material on some of these frame agreements, they have proven to be bigger than you sort of originally thought? Yes. Yes. Absolutely. Absolutely. Absolutely, they are bigger. Of course, with the demand, pricing are also increased, and that the numbers get also better. That is of course good for us, but also good for the entire industry if prices are going up. Understood. My second question, in terms of the guarantees. You say that you have EUR 1.2 billion. If I compare that to a backlog of EUR 4.7 billion, it's roughly 25%. Is that the right way to think about it? I.e., if you win a new order, then you need to put up guarantees in the magnitude of 25% of the order value? I think I want to say first that it differs a lot. Customer differs in their approach to this. I think if you model it on a, on a company level, you can go with an assumption like that. Also, let's say terms and conditions as Alex says, pricing is very strong for us. Terms and condition is also on the table. We're also working, of course, to secure this and doesn't become a growing factor, and especially with projects of that size, I think important to say. Understood. Then just a follow-up. I mean, when you then discuss framework agreements, 'cause as you also mentioned earlier here, they will not all be firm orders the day you sign the framework agreement. How does it work with the guarantees? Will you have to put up guarantees for some of the framework which is not necessarily firm initially and hence sort of the ratio of guarantees to firm backlog would be higher? No. You provide guarantees for advanced payment. That is a classical or typical when a project is called off. A project which may get called off in two years or three years, you would not have to provide advanced payment on any performance advance for these projects. Understood. Thank you so much. That was all for me. Thank you. Now we're going to take our next question. The next question comes to line of Akash Gupta from J.P. Morgan. Your line is open. Please ask your question. Yes. Hi, good morning, everybody, and thanks for your time. My first question is also on the new investments, that you plan to raise money through capital increase. Can you give us some flavor in terms of split of these investments into brownfield, greenfield, and perhaps a need for additional installation vessels? At this stage, what would be the early timeline in terms of earnings contribution from these investments? I guess if you go for more greenfield, then it may take a bit longer, but for brownfield we may see some earnings accretion sooner than later. Any high level comment that you can provide at this stage, would be very helpful. Thank you. Yeah. Yeah. Thank Akash, for your good question. Yeah. Let me say first, our guidance, which we communicated on the capital market day, was until 2025. The reason for that was why we put this year in, because then we have all the investment plan implemented, and then we see the earnings until end of 2025. All new investments, and I'm talking now solutions, high voltage, to build a new plant or let's say a large extension in existing plant, as you like it, you can call it green or brownfield. This takes time. It is. This is why earnings would come not before 2026. 2026 onwards, we would see earnings, revenue sales and earnings for a new high voltage plant, brownfield or greenfield. If the question regarding split, I mean we have communicated, we are considering based on significant order award to invest in production and investment, in installation capability. Sorry. That means practically, yeah, okay, you need to not be, I mean factory and the potential vessel based on significant awards. Thank you. Maybe a follow-up on your market share. I think in your prepared remarks, you talked about maintaining market share, but when we speak to your competitors, one of your competitor has told about being more selective, and they don't have any plan to increase further capacity. Is there any potential to gain market share on top of historical market share? Do you see that opportunity in the medium term, which could also require this high level of investments that you are announcing today? No, I mean, we are very disciplined with investment. We mentioned before we want to maintain our market share. Of course, with a growing market that puts a lot of demand on us on increasing the capacity. We'll be disciplined and, of course, important is also, yeah. Let's take like this. Thank you. My final one is on application business. I think here you commented some slowdown in building wire volumes, but you had a good medium voltage business development. When I look at your outlook, you also sound a bit caution on application segment. I'm just wondering, have you seen any slowdown or anything which is different in trends versus Q4 in early part of the year? No, we have seen early part of the year, we see on the medium voltage side a good traction on volume and pricing. We see the building wire still low. This is still has continued from Q4 into Q1. Yeah, we need to see when the construction business will pick up or we come out of the recession. We have improved as you, Akash, as you have seen from Q3 to Q4. Of course we work hard to improve also in 2023. Yeah, we have seen this negative impact in last year. Yeah, we're trying now to be better prepared, if the market is low in certain segments, it's difficult partly to compensate. Okay. Thank you very much. Thank you. Now we're going to take our next question. The next question comes to line of Daniela Costa from Goldman Sachs. Your line is open. Please ask your question. Hi. Yeah, thanks for taking my question. Most of them have been answered by now. Just one maybe on your solutions margin in the quarter. I was wondering if you could maybe give a bit more color on some of the different moving parts in there. Earlier you mentioned sort of unhedged items, but just some more details would be great. Thank you. Yeah, solution margin, I mean, in general, the margin has improved, and the unhedged item we have seen also impact in the solution business. For example, steel, you cannot hedge. Mm-hmm. Obvious project which you have in the backlog, two, three years back with a certain price and with, if these materials which are not hedgeable, if the price goes up, then we will face here an impact on your result unless you can compensate otherwise. Okay, great. Thank you. Thank you very much. Thank you. Now we're going to take the next question. The next question comes from line of Massimiliano Severi from Credit Suisse. Your line is open. Please ask your question. Yes. Hi, thanks for taking my questions. I have two really. The first one is, again, on the potential capital raise and capacity additions. In the past, we talked about, potentially raising the capacity in case of a very large order, potentially adding a new tower to Karlskrona. My question is, now that we are seeing this increase in the authorization of shares from 20%- 50%, are we just talking about, you have a higher degree of visibility on these very large orders? Or are we really talking about an expansion which will be larger than we talked about in the past? Not only a new tower in Karlskrona, but something larger, and therefore you need to raise more capital than you thought in the past. No, I mean, we see we have a better visibility of the orders of individual orders, but also frame agreements. Assuming we are to winning our fair share, then that could be quite substantial. That could then trigger this investment. Based on the amount what we win, we will then decide how many shares we will issue. As we mentioned, it is up to 50%. I think just to also, repeat what Alex said before, it's production capacity and installation, capacity we're looking into. It's very much a strengthening also of our capital structure and our balance sheets to make sure we can cater for the great future opportunities. Thank you. Going back to the theme of guarantees, because we talked also about performance guarantees. You already said that, okay, looking at backlog is very informative. My question is in terms of then once a project is ongoing, so it's no longer on the backlog, but it is then delivered. You still have some guarantees on that project, mainly performance guarantees, I think. How should I think about the phasing of these guarantees over time? Is just looking at the backlog the right way, or should I think about also how much you delivered in the past and the fact that you will still have some guarantees on those projects for a couple of years? No, I mean, you have of course one, two, you have a prepayment guarantees, and then you have a performance guarantee which goes typically over the lifetime of the project. If you go to the warranty, into the warranty phase, meaning you have handed over the project to the customer, it moves into warranty guarantee obligation. This is, and the warranty can take several years, as you know. This is the mechanism and the level of the different sizes of performance guarantees, warranty guarantees, and advance payment guarantee and how it stacks up can vary from customer to customer. Okay, thank you. My last question would be again on the guidance. If I think about the not implied, but what we are seeing in terms of solutions, clearly now you have full capacity utilization of your existing lines, plus EUR 200 million of additional capacity coming online. We are not really seeing a lot of operating leverage there. I understand that a part of it is because of the installation versus production mix. I was wondering, is there also an issue of having more land than subsea maybe than in the past? Especially if I think about the fact that you are using a production line in Karlskrona, which is for subsea, to produce German corridors. Does this have an impact on the margin profile, or is it really just about installation versus production? I mean, if you look at the a margin as different aspects, which are is. On one side is the mix. The mix over the execution of the full year, but also within a given quarter, that can vary and can change. Then it's the question how you execute. If you have flawless execution, that has an impact. If you have flawless execution, you can release contingencies, which from production. If you do also installation and other activities, in a good way with risk mitigation, then this risk mitigation can flow to the bottom line. Further, you have in the projects other upside potential like variation orders to projects. Typically, variation orders in a project have better margin than the original projects. There's different upside potential. Of course, you have also downsides risk. Okay. Yeah. Thank you. Hope I've answered your question, huh? Yeah. Yeah. Thank you. Thank you. Now we're going to take our next question. The next question comes to line of Claes-Johan Geijer from Nordic. Your line is open. Please ask your question. Claes, your line is open. You're more welcome to ask a question. Oh, sorry, I didn't hear you call my name out. Yeah, hi, also a few questions from my side. The first, Alex, is about this up to 50% new shares. How can we translate 50% new shares to a potential order intake? That would be the first one. Oh, Claes, you ask all the difficult questions, huh? I mean, how we advance orders into shares? I think, yeah, difficult, more difficult, huh? I mean, if you get orders with certain size, you need obviously to produce these orders. As I mentioned, the year 26 and beyond. Let's say, let's say you get. I'll make a simple example, right? The numbers are not right, but don't quote me for that. You get an order EUR 500 million, your existing capacity is utilized. You may need an expansion with certain number of extruders. If you get more to a certain level, you need additional. So like we have in the past, a staged approach from the Border project to Champlain, where we expanded. And this, the size of the expansion of, let's say, the orders triggers the capacity expansion. That will be a determining factor for the factory, but also for the installation potential vessel. As Line said, also we need to strengthen also our capital structure. We have the clients, we need more bank guarantees and so on. There are several aspects with playing in. It's not only the capacity expansion, it's also other elements. Sure. You know, that I get and also, you know, if you get a 10-year contract rather than five-year, then the total volume will obviously be larger of the contract. I'm just trying to understand, should we expect the most likely outcome is a, let's just say 25% issue of new shares, or is it actually 50%? That's why if we're getting a 50% issue of new shares, is that a EUR 5 billion order intake in the first half? Or is it even more than that? I think that would be quite useful to have that intelligence. I think you need to. This I cannot comment on. That's not our philosophy to comment on. No, you need to wait a little bit, and we need to see also what it is. It's not only what it is, it's also the mix, what we win. I mean, a certain projects, just to give you an example, Claes. Certain projects have a large sea cable portion and a small land. Another has a large sea and a large land cable. If you have huge land cable scope, you need to also be able to produce, let's say, the land cable. Meaning, this has another consequence on investment and where to invest than how much, based on what you. The type of project that you win also determines where you invest and also in which machinery or in which capabilities on vessel or trenching equipment. It is not so simple to say that you need to how much it is. I mean, just assume you would win only land cable. That's not the. The investment case and where we invest would completely differ if you have another. I think we need to first win, and then we will decide what we do. Of course, we have different plans, Claes, in the, in the drawer, but, I think, one step at a time, huh? Sure. That's, that's Alex. May just. Is part of this also adding capacity outside Europe? I mean, we mentioned before we have flexibility to expand the capacity in our existing sites, Karlskrona and Cologne. We have also other possibilities. Are you planning to do outside Europe? Claes, I don't want to be too specific. We have other possibilities with this. That must be good enough for now. Fair enough. My likely final question. Will this issue of new share be in one go? Or could it be, let's just say, 20% when you receive a certain order, and if you then get a second larger order, then you will do another issue of new shares? No, it will be, it will be one go. Right. Okay. You said You will be more precise at a later point. When do you think that would be? Is that in Q1, Q2, or? It's within Q1 and Q2. It is in one, Q1, Q2, yes. It will. Okay. That was all for me. Thanks a lot. Thank you. Now we're going to take our next question. The next question comes to line of Akash Gupta from J.P. Morgan. Your line is open. Please ask your question. Yes. Hi. Thanks for my follow-up question. I had question regarding the new capacities. Is it safe to assume that it will be all for HVDC cable or more specifically extruded HVDC cables, or would there be some for HVAC as well? Secondly, I mean, there were some talks of European equivalent of IRA or the Net-Zero Industry Act, and there were, like, provisions for state subsidies, including incentives for manufacturing. Do you see any potential of those as subsidies which can reduce the need for capital increase, or do you still need to do capital increase because you want to strengthen the balance sheet to improve your book equity in order to take more complex projects and improve the risk reward and margin profiles in projects? Your assumption about capacity expansion in DC is 100% correct. If it comes to this IRA for Europe, we need to see what is the outcome. Obviously, if that comes, we would look into, do we see any potential to get subsidies, and we will look into that, but we need to wait what is coming here. Definitely that could be an option. Thank you. Thank you. Now we're going to take our next question. The next question comes to line of Massimiliano Severi from Credit Suisse. Your line is open. Please ask your question. Hi. Thanks for taking my follow-up. My follow-up is again on a bit of the project mix between land and subsea and installation versus production. If I look also 2024 and at your slide nine, there are not-- there are really not a lot of big projects which will be commissioned, even if the installation of the German corridors will start in 2024. My question is, as we look beyond 2023 and into 2024, is it fair to then expect an improvement in margins, because you have Champlain Hudson starting production in Karlskrona and despite the fact that you don't have much commissioning in 2024? Will it be similar, 2024 to 2023, with an improvement in 2025 when there will be commissioning of SuedOstLink? Massimo, I have a little bit difficult to follow where you see the installation profile based on the slides. I mean, the Champlain Hudson must be in service by end of 2025, and obviously we need to start installation work. As we speak, last year we had good utilization of the vessel, and we will, it's planned that the installations of the corridor projects will start in 2024. We have ongoing projects on this list like BorWin5, and so on, where we have installation activities. We don't provide here details on how much revenues are coming from installation or production. Okay. Just, to clear it up, in 2024 can we expect a margin improvement? We talked 2023 will be also because of margin phasing. In 2024, will it be more normalized in terms of project phasing, or will it be a similar margin profile to 2023 in solutions? Massimo, we are now in 2023. We work now that we deliver on the guidance and on our promise and then we come to 2024. I think it's a little bit too early to comment here on 2024. We have not done a budget for 2024. We have of course started planning for 2024, 2025. We have a plan how, if we do investment, how it steps up. We have that all. We are not yet here to provide the details for 2022, 2024. We need to wait a little bit until we give them more colors. I need to push or pull out my Excel files, and then, and then we need to wait for 15 minutes on the call until we have everything ready, so. Yeah. I think, Massimo, our medium term ambitions you know, right? I think with that at the hand, you will look into the future, based on that. Okay. Fair. Thank you. Mm-hmm. Thank you. Dear participants, as a reminder, if you wish to ask a question, please press star one one on your telephone keypad. Dear speakers, there are no further questions. I would now like to hand the conference over to our speaker, Alexander Kara, for closing remarks. Yeah. Thank you very much all for your interesting questions. A little bit more than usual, which we expected and can follow. Thank you that you joined this call, and wish you a great day. Bye-bye. That does conclude our conference for today. Thank you for participating. You may now all disconnect. Have a nice day.