Good day, and thank you for standing by. Welcome to the Solar A/S Q3 Report 2023 conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one and one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one and one again. If you wish to ask a question via the webcast, please use the Q&A box available on the webcast link any time during the conference. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Jens Andersen, CEO. Please go ahead. Thanks a lot. A very warm welcome to this third quarter webcast for the Solar Group. Together with me here in Vejen, I have my colleague, CFO, Michael Jeppesen. The agenda for today is a general business update with some highlights for 2023, presented by me. Then I will give you a short update on our ongoing work with operational excellence, but also sustainability. Then I will hand over the word to Michael, who will present you for our pre-3 Q results, of course, including a high-level cash flow status and some comments to our reconfirmed guidance for year 2023. Finally, we will have a Q&A session. Next slide, please. As expected, we saw a decline in growth in Q3. Revenue decreased to DKK 3 billion, down from DKK 3.3 billion the same quarter last year, and our adjusted growth were negative, with -4.7%. MAG45 delivered, I would say, nearly as always, positive adjusted organic growth. Climate energy, one of our strategic focus areas, delivered below our expectations as revenue amounted to around DKK 295 million, compared to DKK 325 million, same quarter last year. A deep dive into the climate energy category shows that our sales of high-capacity ThermoNova industrial heat pumps delivered the expected growth rates, while sales of heat pumps for the retail market was extremely or very disappointing. The slowdown in Denmark since March this year continued in Q3. The new subsidy scheme for heat pumps was implemented in mid-Q3 or late September, but we haven't seen that sales have picked up yet. Therefore, uncertainty remains for Q4, but the potential for an autumn rally for heat pumps is definitely in place if, and we see increasing gas prices. Looking at our customer segments, the industry and trade segments posted adjusted organic growth of 0% and 9% respectively, while the installation segment posted adjusted organic growth of -10%, mainly related to the disappointing development on climate and energy. EBITDA for the quarter, 187 million DKK, which was fully on par with our own expectations, and I think if you want to make a deep dive, please go to page seven in our Q3 report, if that could have your interest. Finally, I can say that we reconfirm our EBITDA guidance of DKK 900 million. Next slide, please. Over the past years, we have carried out major investments in our warehouse in Denmark, Norway and the Netherlands. We have added 18,600 square meters warehouse. We have merged two warehouses in Holland, installed AutoStore, totally 210,000 boxes, and that includes 215 robots. We have also made new cable cutters machine, replaced nine manual-operated forklifts with self-driven AGVs. We have set up three high-capacity ThermoNova heat pumps at our own premises, and finally added around 2,700 solar panels on our roof. These investments, which include a substantial reduction of the noise level and installing adjustable workstation, have improved the work environment and lowered our energy consumption significantly. By installing heat pumps and solar panels, we continue our journey towards net zero emission in 2030, in Scope 1 and 2. We continue to see opportunities for further automatizations across markets. Therefore, we also have taken a, maybe a big, step, but at least decided to invest in a new modern warehouse in Kumla, that is close to Örebro, where we are today in Sweden, and we expect that it will be operational in late 2026. Therefore, we also, will divest Halmstad and Örebro over time. The net investment will be approximately DKK 400 million. Next slide, please. Finally, yet importantly, Solar's ambition and targets has been approved by the Science Based Targets initiative, or SBTi, which is the world's most ambitious sustainability collaboration, supporting the Paris Agreement back in, in the old days, I would say. In all fairness, I believe that Solar again goes above and beyond even the highest standards by focusing, not only on becoming CO2 neutral in our own Scope one and two—and no later than 2030—but also aims to improve in biodiversity and help improve life on land by afforestation. I will now give the word to Michael for some insights into the financials. Please, Michael. Thank you, Jens. Please go to page seven. Revenue in terms of DKK decreased with almost 10% as we faced substantial headwind from FX, but also a more challenged market. Despite this, we came out with almost DKK 3 billion, compared to DKK 3.3 billion last year, equal to an adjusted organic growth of -4.7%. It should be noticed that it's our clear assessment that we maintain our overall market share. As expected, growth declined in the quarter further compared to what we have seen in Q1 and Q2. Looking at it, the only disappointment in the development we've seen so far has been the same within climate and energy, mainly heat pumps for residential buildings. As mentioned, as Jens also mentioned, this is quite challenged and has come to an almost complete stop. However, we still expect this to return to another and substantial higher level, but not before we start to see the full effect of the new subsidy scheme. But it's of course a question when this will materialize, but we know this can happen very fast, in particular, if the gas prices starts to increase. Regardless of the disappointing sales, we know that the underlying problem remains, meaning a lot of gas and oil boilers needs to be replaced in the coming years, and heat pumps is the only viable solution to this challenge. Similar to what we have seen in the preceding quarters, price increases now only constitute a negligible part of, the growth we see. If we take a look at the different, at the three main segments, installation faced clear headwinds, and this goes for all sub-segments. Of course, it's also hit by the lack of sale of heat pumps. Industry were stagnant, where particularly marine and offshore was, was actually doing very positive growth rates, whereas infrastructure probably was the most negative. This is not such a big surprise as the rollout of fiber is coming to an end, so we did expect this to happen. If you look at trade, DIY continues to face headwind, as we've seen in previous quarters, but this was more than offset by other sub-segments. So to conclude, with the exception of the more or less complete stop in Denmark in sale of heating pumps for residential buildings, the development is fully in line with our expectations, including both the trend and the mix. Turning to page eight, when EBITDA of DKK 187 million, Q3 was on par with our expectations, albeit it's now below last year, even when we adjust for one-off price effects. We did see the underlying cost of goods sold increased slightly with 0.6% when adjusted for one-off effects compared to last year. This can mainly be explained by the development within climate and energy, where particularly PV were a challenge. We saw during the quarter prices dropping with more than 40% within a very, very short time frame, and this led to a drop also in the price with our, in the market. So this explains more than 50% of the 0.6 drop we saw. As expected, we faced headwinds from costs. In total, this had a negative impact of 0.4. External operating costs remains unchanged, relatively speaking, whereas staff had a minor negative effect. In absolute figures, both external operating costs and staff costs are now below last year, also when adjusted for effects, despite the inflation pressure, meaning both salary and cost inflation is under control. Regardless, we will continue to have a strong focus on initiatives, including cost containment, process optimization, and staff reductions to secure that the cost development remains well below the inflation. I think it's particularly important to notice that loss on trade receivables remains under control with a very strong performance within the quarter. Turning to page nine, with a quick look at year-to-date, when EBITDA of DKK 681 million year-to-date, the underlying EBITDA margin is slightly below last year when eliminating one-off effects. Gross margin still remains slightly above last year, when adjusted for one-off effects, despite the recent development within climate and energy, and we are absolutely convinced that our strategic focus area will continue to support this. As expected, cost has a negative effect, particular staff cost with 0.4%. But to conclude, year-to-date, the development is in line with our initial expectation, with a continuous weakening during the quarters as we go down the year. Turning to page 11, looking at cash flow, we see a positive impact from operating activities on 190 million DKK, which I'll comment on shortly. Investing activities of 102 million DKK, of which the main part of PPE can be referred to the expanding of the central warehouse in the Netherlands. We are very pleased with the progress that we see there, and we're actually slightly ahead of schedule, enabling us to close down and spin off the central warehouse in Duiven. If we take a closer look at the operating activities, we see that the main negative change is liability of DKK -93 million, which mainly can be explained by less purchase, but of course also is impacted by the climate and energy products, which have a substantial lower payment terms compared to what we normally see. Receivable is slightly down, but this can be explained by lower revenue in September compared to June. The positive impact of DKK 116 million from inventory is due to a focused effort. Even though we have a disappointing sale of climate and energy products, we are very pleased with the development. Although the inventory still remains too high, consequently, we expect the inventory level to continue to reduce throughout the remaining part of this year. Turning to page 11. If we look at net working capital as an average, we do see an increase from 16.2 to 16.7 in Q3. However, if we compare it quarter, Q1, Q2, and Q3, at the end of the quarter, it remains more or less unchanged despite the negative growth. Looking at gearing, it has increased slightly from 1.4 to 1.5 times. Turning to page 12, guidance for 2023, we reconfirm our guidance of an EBITDA of DKK 900 million. In both 2022 and 2021, we had substantial positive one-year effects of DKK 215 million and DKK 112 million respectively. We do not expect this to happen in 2023, meaning we do not assume any significant one-off effects. Looking at the markets where we operate, our assessment remains unchanged. In general, we do expect a softening on negative development in all segments, even though there is an effect from price roll over. There's no doubt that uncertainty is increasing, also throughout the remaining part of the year. If we look specifically at the Danish market, we expect an effect of the government support for heat pump to residential buildings to start to materialize during the remaining part of Q4, and this, as Jens also mentioned, potentially can also catch up for some of the lost revenue in Q3. In particular, if the gas prices starts to increase. You can say we are able to deliver, quite a substantial number of heat pumps, and we can get more available should the demand be there. However, the impact will be more material on the revenue than on the EBITDA. During the last year, we managed to be ahead of inflation, but through the late quarters in 2022, we've started to see cost inflation accelerating, and this, as expected, has continued into 2023. We expect this continued through the remaining part of 2023 as well, although we clearly see the effect of our initiatives now bringing costs below 2022 level, despite the effect of both salary and cost inflation in general. Regardless, we'll continue to implement mitigating activities to this development. Thank you. Thank you, Michael. Now it's time for Q&A, and I think we'll start if there are someone on the line who wants to raise a question, please. Thank you. As a reminder, to ask a question, you will need to press star one and one on your telephone and wait for your name to be announced. To withdraw your question, please press star one and one again. If you wish to ask a question via the webcast, please type it in the box and click submit. We will take our first question. Our first question comes from the line of Kristian Tornøe Johansen from SEB. Please go ahead. Your line is open. Yes, thank you. A couple of questions for me. We have seen a couple of companies across Europe exposed to construction talk about a slowdown in September, or probably rather that the normal seasonal pickup in September didn't really materialize as it used to. One of them being one of your close competitors in Denmark. So can you just speak about the demand picture you saw sort of throughout the Q3? I would say it's, I support the problem, that September was extremely disappointing. On the other hand, if you look at our pipeline for projects coming in, it's still positive, despite the market situation right now. But September was definitely not as expected. It should be noticed, also, that September last year was when the sale of heat pumps peaked. Exploding, yeah. And that is a part of it, but it doesn't explain everything. So we fully agree with what others have said about September, and you can actually also see it in the cash flow, because... And I, because normally, traditionally, September revenue will be above June revenue, all other things equal. That was not the case this year. Okay. And has the momentum from September continued into October? Is it the same picture you saw of October? I was expecting that question to materialize. It's clear that we are still going down in October, but again, that was expected... in our guidance, it actually goes back to the first time we gave the guidance back in February. We did expect growth to wear off, and the pattern, I would say, continue down. But of course, in October last year, we did not sell that many heat pumps, so, because we simply couldn't get them. That was the problem. Yeah, true. So it's still trailing well below zero as we speak. And we've not seen any real effect yet on the sale of heat pumps in Denmark, even though the new subsidy scheme is in place. But I would say now we are in the traditional season where you would buy a new one. And also we know it takes some time to get a project and so forth. There were some limitations to how much you could do before you applied. And so I would say September is plus minus, as expected. October, sorry. Understood. And then, Jens, you also briefly mentioned your sort of project orders. So, I think last time you reported you were a bit more- Yeah, yeah. Optimistic on the development and orders that increasing. So, just to clarify, this increasing trend in orders, has that continued throughout Q3? Yes. Strange enough, I would say, but it looks like we... Otherwise, we're winning more than the market. But, but of course, you have the Novo effect, also in our industry. So if you take that out, I would say that the market is, lower than, much lower than last year. But, but all in all, there's still a, a pretty good activity within, the big projects. I think the, the main problem is residential market and, and, and maybe also partly, our daily service. It seems like, the need for products are going a little bit down, but I still expect, or I know that the installers have a lot to do, but the tasks are smaller, but there are a lot of them. But I think the main problem remains, as we have said hundreds of times, that's heat pumps. That's really the main problem at the moment for also for the installers. I think the market is down to 50% compared to last year. Obviously, where I'm trying to get here is sort of what to put in- Mm. on the growth for next year. And I know I'm probably not gonna get you to give me a number, but obviously, based on what you talk about for the project segment, it seems that, I mean, looking for 2024 over 2023, that there should be some sort of support. And obviously, the comparison next year on heat pumps will be much more benign than the one you have this year. Is that- Yeah, I think- A fair way to think about it? I would love to give you some clear answers, but I can't at this moment. But of course, we are working on it as we speak, and then we'll come up with the guidance for 2024 in February. And there, of course, you will see the picture that we expect will be the situation. I still believe in electrification, but of course, our dependency on the building sites is still there. But of course, we hope that the climate energy market will regain again, and that will support Solar in a strong way, in all markets, by the way. But in all fairness, to get a more complete picture, you also need to look at other segments, and I would say that it's really mixed if you start to look at the industry in Germany, for instance. Mm. Although we're not directly exposed to Germany, we are indirectly. There's a lot of Danish industry, and Dutch industries, and Polish, in particular, industry customers of our customers are sub-suppliers to German industry. So I say uncertainty, as we see it right now, at least for next year, is very high. It's very unclear. So there are mixed signals, I would say. And as Jens said, a main part of it will depend on what happens with the climate and energy part of it, which has become a substantial part of our business. We're not... We're absolutely concerned that this will bounce back, but the question is when? We don't know. All right. That's clear. And then just my last question: so, the investment in Sweden, you mentioned, an investment of DKK 400 million. So can you help us a bit on sort of the CapEx profile of this? Because I assume that there's gonna be a gross investment, and then you are dependent on some divestments, which will come at a later stage. So, essentially, what would be the CapEx distribution in the coming year for this project? It's still very early days, and we just started the project. So it'll be difficult to give any clear answer. You should not expect it to have any major impact in 2024. It will start to gain traction there in 2025 and is expected to be finalized in 2026, where you also then will see the sales. But of course, short term, you're right, it will have an impact that is above DKK 400 million, then it'll start to reduce. We'll try to be more transparent about it when we start to get more information about it. We can put some more information to the ongoing investment in Alkmaar. As far as I remember, we need approximately DKK 50 million to be paid, of which roughly half will be paid this year, maybe a little bit more on the remaining part in Q1. And they can also expect in Q1, maybe in Q2, but I expect it to be in Q1, the sale proceeds for Duiven to plug in, and that's, that was disclosed last year, so it's gonna be approximately DKK 75 million, as I remember it. Yeah. But can you give us the gross figure for the Swedish investment? So the DKK 400- We don't have a... It is an approximate figure, so I can't give you any solid figure on that yet, where we simulate. It's best guess right now. All right. Fair enough. I will do my best to bring forward next meeting. Thank you so much. That was all for me. Thank you. Thank you, Kristian. Thank you. Once again, if you wish to ask a question via the audio, please press star one and one on your telephone. If you wish to ask a question via the webcast, please type it in the box and click Submit. We will take our next question, and the question comes from the line of Anders Egsvang Rasmussen from Stokk.io. Please go ahead. Your line is open. Thank you for that. I will be asking some questions on behalf of private investors, and the first question here is: When selling a ThermoNova solution, does it require any legal yearly inspection, and do you expect, in that case, to be the service/inspection provider on bigger or all projects and generate revenue from this? Yes, you're fully right, Anders. There is a yearly service agreement that's required. Some of these services, we will do ourselves, or ThermoNova will do that ourselves, and some will be done in close collaboration with the certified installers. So it's a kind of a mix, but that's of course a revenue stream for ThermoNova, but also for our loyal customers within installation. But at the moment, we are talking about Denmark, but I know that soon we will go out in the other markets, and there might be a different situation when we enter into the other countries. But the situation in Denmark is that it's a mix. Okay, perfect. And, the next question is also about ThermoNova. What is the market potential for ThermoNova and industrial heat pumps in the countries that you operate in today, and how is the competition in these markets? Do you, for example, see the Danish company, Fenagy, that was acquired by Beijer Ref some years back, as a main competitor? I'm totally honest, we don't have the overview per country yet, but that will be done on a later stage. But if you go into... There's a website that's called European Heat Pump Association, and they predict an exponential growth in industrial heat pumps in the next decade, by the way, in whole Europe. Regarding question about Fenagy, I don't see them as a direct head-to-head competitor, but because they're primarily working with higher kilowatt solutions than we do, but of course, there will be situations where we bid on the same projects. But so far, they are mainly connected to district heating solution and cooling solutions. Our target group for Solar or ThermoNova and Solar, that will be industry companies, that will also be public buildings, sports facilities. So I think in that place, we have enough to do for many years. But of course, sometimes there will be a head-to-head competition, and that could potentially be Fenagy. Yes, and we'll take that as comes. Okay, perfect. Thank you for that. And then, the last question here from a private investor is: With the decreased share price and a quite low valuation, are you considering initiating a share buyback program? It is a tool that the board of directors have in their toolbox. At every board of director meetings, the capital structure of Solar is discussed. It's a part of the agenda every time we meet with the board of directors. But as you can see right now, it's not been put into operation, but it is available should the need arrive. Okay, perfect. Thank you for that, and that was all the questions here from our private investors. Thank you. Thank you. Thank you. Thank you. There seems to be no further questions. I would like to hand back to Jens Andersen for closing remarks. Thanks for that. Thanks for helping us through this call, and thanks for the questions, and have a nice day out there. Thank you. Bye. This concludes today's conference call. Thank you for participating. You may now-