Hello, welcome to Neoen's consolidated H1 2023 Results. My name is Melissa, and I will be your coordinator for today's event. Please note, this conference is being recorded, and for the duration of the call, your lines will be listen only. However, you will have the opportunity to ask questions. This can be done by pressing star one on your telephone keypad to register your question. If you require assistance at any point, please press star zero and you will be connected to an operator. I will now hand you over to your host, Xavier Barbaro, CEO, Louis-Mathieu Perrin, CFO, to begin today's conference. Thank you. Thank you very much. Good evening, everyone. I'm Xavier Barbaro. I'm the CEO of Neoen. Welcome to our First Half of 2023 Results Conference Call. I'm together tonight with Louis-Mathieu Perrin, our CFO, and Francois Repolt, our IR officer. As usual, we will first comment on the key points of our publication, our comments will be following the slide presentation that you have probably received, hopefully received, and which is also accessible through our website. We will then, as usual, open the floor to questions. As an overview of H1 2023, let's start with the key figures on slide number four. As you can see, we delivered another strong growth in H1, both in terms of capacity and in terms of financial performance. As for our capacity, we reached 7 GW of assets in operation or under construction as of June thirtieth. I think it's quite unique in the world for a pure player. We also added more than 0.6 GW of capacity to our secured portfolio, which includes our awarded projects on top of our assets in operation or under construction. Our secured portfolio therefore reached 8 GW at the end of June '23. This means that we already secured 80% of the way towards our 2025 target of 10 GW in operation or under construction. As for our key operational and financial indicators, we generated over 3.7 terawatt-hours of electricity during the semester, which is an increase of 32% year-on-year. Revenue reached EUR 277 million, which is up 24% year-on-year, and adjusted EBITDA reached EUR 252 million, which is up 44% year-on-year. A strong growth, on which we will come back in more detail in our presentation. We have also an adjusted net income that reached EUR 63 million for this H1 '23. In short, we are very pleased with these strong set of numbers, and I'd like to take this opportunity to pay tribute to Neoen employees for their strong dedication. They have been instrumental in the delivery of these strong performance and achievements. Looking now on slide five at our H1 growth in more detail. Revenue was up 24%. As you already know, our Q1 '23 revenue was itself up 42% year on year. In Q2 '23, growth in Revenue was lower, with 7% year on year, mainly due to high comparison basis in Australia in Q2 '22 on the storage segments, which was exceptionally high. As I said, we delivered a strong growth in adjusted EBITDA during the semester, up 44% to EUR 252 million, thanks to, first, the contribution, the strong contribution from assets starting injecting electricity in 2022, in particular, the wind farms of Mutkalampi in Finland and Kaban in Australia, as well as the Western Downs Solar Farm in Australia. Second, we also benefited in H1 2023 from higher liquidated damages and from the contribution for EUR 27.3 million of the disposal of the Cabrela Solar Farm in Portugal. As you can see, our capacity in operation or under construction increased by half a gigawatt to reach 7 GW at the end of June 2023, out of which 4.8 GW is already fully in operation. If we now move to slide number seven, you will have a quick overview of the dynamics within our secured portfolio. We have secured 562 MW, sorry, in newly awarded projects in H1. I will come back on this shortly. In the meantime, we launched the construction of 385 MW, including notably Storbotten and Lumivaara in Finland, for a total capacity of 161 MW. Our first long duration battery, Collie Battery, 219 MW and 877 MWh of storage capacity located in Western Australia, alongside new additional capacity in France as well. We also added 734 MW of capacity in operation during the semester, with the commissioning of 117 MW of wind and solar assets in France, as well as the solar plant of Western Downs, 460 MW, and the wind farm of Kaban, 157 MW, both located in Australia and both commissioned ahead of our latest indicated timetable. At the end of June 2023, Neoen had almost 4.8 GW in operation, getting closer to the 5 GW milestone. If you now turn to slide number eight, we continued to expand our secured portfolio, adding 562 MW of awarded project during the semester in France, Ecuador, Australia, and Finland. Q2 itself was very active, with 513 MW of awarded projects, including in France, 18 MW added through a new wind farm. In Ecuador, three solar projects with 216 MW peak in total capacity for which Neoen was the top-rated bidder in the competitive tender held by the government. In Australia, where we added 219 MW with Collie Battery, which is already in construction. Lastly, in Finland, where we added 59 MW at start of construction of the Storbotten and Lumivaara wind farms on top of the already secured capacity, which was mostly contracted with Equinix. On slide number 9, you will find more detail about the Collie Battery located in Western Australia, near Perth. This is the first long-duration battery of Neoen, sized at 219 MW for the capacity and 877 MWh for the storage capacity. It's the first stage of this battery. Maybe we will further expand it. The battery is already under construction. It is relying on Tesla technology, the Megapack technology from Tesla. This battery will allow us to deliver the services related to the contract awarded in June by the Australian Energy Market Operator, AEMO. This contract will run for a period of two years, starting in October 2024. It will provide 197 MW of storage capacity for 4 hours, charging during the day and then discharging across the evening peak. The battery will support the grid and address the risks related to the retirement of coal power plants, as well as to increasingly high penetration of rooftop solar in Western Australia. This is only the stage one of a much bigger battery project, as we were given a development approval for a total of 1 GW and 4 GW hours on this site. Collie Battery is now in sixth big battery in Australia, a good illustration of our strategy to intensify our investment in storage, notably through extended duration, to provide greater value from our batteries. If you now turn to slide number ten. As we mentioned earlier, Neoen launched the construction of two wind farms in Finland, Storbotten and Lumivaara, jointly owned with Prokon, with a total capacity of 161 MW, both assets are due to be commissioned in 2025. For this project, Neoen signed 10-year power purchase agreement with Equinix, covering 60% of the energy generated by Storbotten and 80% of the energy generated by Lumivaara. The two wind farms will expand the geographical footprint and leading position of Neoen in Finland, where our portfolio of assets in operation or under construction is now above 700 MW, with 9 power purchase agreements already signed. I now hand over to Louis Mathieu to comment on our operational data and results. Thank you very much, Xavier. Let's now move to slide number 12, where you can see that power generation was up 32% compared to H1 2022. We generated slightly more than 3.7 terawatt-hours in H1 2023. Starting with the average wind availability, it's true that 92.5% affected by a cable issue at the Mutkalampi wind farm. This issue, which occurred in Q1, was rapidly solved. It has temporarily penalized the availability of the first part of the plant, and if we exclude Mutkalampi, the wind availability was 97.4%. The average solar availability rate improved moderately to 95.3%, as a consequence of less technical difficulties encountered by the El Llano power plant in Mexico, compared with the first half of 2022. The replacement of its transformer, which was due to begin by the end of the Q2 of 2023, was postponed and is now expected in the winter of 2023/2024. Excluding El Llano, solar availability rates to that 99.3% in H1 2023. The load factor of wind assets decreased to 27.6%, compared to 30% in H1 2022. This is partly a consequence of Mutkalampi's temporary reduced availability, but we also had lower wind conditions in Australia and in Ireland. Altogether, these two factors were only partly compensated by good wind conditions in France. The average load factor of our solar assets decreased also. It went down from 20.9% in H1 2022 to 19.5% in H1 2023, as a consequence of an unplanned grid outage affecting the Altiplano solar plant, now solved, and the lower irradiation in Argentina. It was only partly compensated by higher contribution of the Western Downs Solar Farm in Australia, the production of which ramped up until its commissioning late Q2 2023. Turning to revenue on slide thirteen, we achieved EUR 277 million in revenue in the first half of 2023, which is a 24% increase compared to H1 2022. This increase was largely driven by new solar and wind assets, which are commissioned or which have started producing in 2022, and to a lesser extent, in H1 2023. Notably, we benefited from early generation revenue at Mutkalampi in Finland, Western Downs and Kaban in Australia, and to a lesser extent, at new assets in France, in a favorable electricity prices environment. Regarding the assets which were already in operation at the end of 2021, the overall price effect was positive, thanks to higher market prices versus last year for our asset with the merchant exposure, and also thanks to indexation effects, mainly in France. Conversely, the volume effect was negative, notably as a result of lower solar production at Altiplano, consequence of temporary grid issues, which are now solved, and of lower wind conditions in Australia, which were only partly compensated by higher wind production in France. In addition, the contribution of our storage business was lower. This is largely due to a high comparison basis. Market conditions were actually very favorable for storage in Q2 '22. As you can see, the decrease in Revenue linked to farm down transaction was fairly limited, lastly, we had a negative Forex impact on this semester. At constant FX rates, Revenue was up 26% versus 24% on a reported basis. If we move to slide number 13, our adjusted EBITDA was up 44% year-on-year to EUR 252.2 million. This increase was mainly driven by the contribution from solar and wind assets, which started injecting electricity into the grid and were commissioned in 2022 and in H1 2023, mainly in Australia, with Western Downs and Kaban, and Finland with Mutkalampi. We also had higher liquidated damages, which were recognized in H1 2023 as a consequence of delays in the commissioning of assets, and there is the direct responsibility of suppliers, notably in Australia, in France, and in Ireland. The farm down the Cabrela Solar Farm in Portugal also contributed to EBITDA for a total amount of EUR 27.3 million, and these positive items were partly offset by the lower contribution from Eleanor in Mexico and Altiplano in Argentina, the impact of lower wind conditions in Australia, and lastly, market conditions, not as favorable for storage in Australia as they were in Q2 2022. If we now move to the breakdown of our performance by segments, starting with wind on slide fifteen. Wind revenue was up by 54%, and adjusted EBITDA increased by 43%, thanks to the full semester contribution from Mutkalampi, notably through early generation revenue in Q1, before the start of the first of its PPAs in April. In France, specifically, the contribution from assets commissioned in 2022 and H1 2023, overall good wind conditions and a positive price effect. In Australia, the contribution from Kaban, which started injecting electricity in November 2022 and benefited from the early generation revenue, since then. This positive contribution was partially offset by lower wind resources in Australia. As a setting factor, we had a partial exemption in H1 2022 of penalties historically recognized under a PPA in Australia, which led to a high basis of comparison and partly explains the decrease in EBITDA margin from 87% in H1 2022 to 81% in H1 2023. Turning to solar on slide 16. Solar revenue increased by 17% and adjusted EBITDA was up 29% at EUR 114.8 million. It enjoyed a strong contribution from asset selling, starting injecting in 2022, essentially in Australia with Western Downs, which benefited from early generation revenue at higher price in Q1 2023 than in Q2 2023, in 2023, when the price of its long-term PPA started being applied. French and Irish assets also contributed to the increase, but to a lower extent. The increase in EBITDA was also driven by higher liquidated damages in H1 2023 versus H1 2022, following delays in commissioning of assets in Australia, and to a lesser extent, in France and in Ireland, leading to a temporary spike in EBITDA margin. These positive effects were partly offset by the lower contribution from El Llano in Mexico and temporary grid issues at Altiplano in Argentina, in Q2 2023, which are now solved, combined with a lower irradiation overall in Argentina. Moving to storage on slide 17. Storage revenue decreased by 23% and adjusted EBITDA by 16% in H1 2023, compared to H1 2022. The good performance of the Yllikkälä battery in Finland, notably in Q1, was more than offset by the lower contribution from the Victorian Big Battery, and to a lesser extent, Hornsdale Power Reserve, which both benefited from very favorable market conditions in Q2 2022. Indeed, as you may remember, the first semester of 2022 represented a high basis of comparison in Australia, as market conditions were very volatile at that time. In that context, Australian Battery, and in particular the VBB, had actively supported the local grid. On slide 18, which shows a breakdown of our solar and wind revenue between merchant and contracted or hedge. The merchant proportion of cumulative generation revenue, meaning solar and wind revenue, reached 19% in H1 2023, versus 13% in H1 2022, as a consequence of higher early generation revenue from Mutkalampi in Finland, notably in Q1 2023, before the start in April of the first of its PPAs. From Western Downs in Australia, notably in Q1 2023, before its long-term PPA price started being applied in Q2 2023, as well as from Kaban, also in Australia. Finally, and to a lesser extent, from French Assets Commission, from September 1, 2022 onwards, which benefit from 18 months of merchant revenue before the start of their governmental PPAs. If we now move to our P&L on slide number 19, and focus on below adjusted EBITDA items. Adjusted EBIT was up 59%. The direct consequence was a 44% increase in adjusted EBITDA. Depreciation, amortization, and provision increased by 24%, in line with the growth in the volume of assets put in operation. Moving to non-current items. In 2023, non-current operating income amounted to EUR -3.2 million. A significant improvement compared to the first semester of 2022. You may remember that in H1 of last year, we booked a EUR 13.8 million impairment loss on our Metoro Solar Farm in Mozambique, which was due to a sudden deterioration in the local security situation in June, which led us to suspend the construction of the solar farm, with no visibility on the timing when construction operation could resume. Xavier will give you an update on the situation at the end of this presentation. Our cost of debt increased by 20%, a direct consequence of the growth of our number of assets in operation, but also the issue in September of 2022, of a EUR 300 million green convertible bond, while we soft called the 200 million EUR convertible bond issued in September 2019. This new green convertible bond bears a coupon of 2.875%, but an effective interest rate of 7% accounting-wise, as it is a compound instrument. The former convertible bond had a 4.3% interest rate, as it was issued at a time when credit spreads were much lower. On top of this, we also faced a slight increase in the group average cost of project finance debts, as higher short-term interest rates applied to the unhedged part of a project financing, which, as you may remember, is lower than 25% on average. As positive, but slightly offsetting factor, we have the impact of the progressive repayment of historical project finance debts. Other financial income and expenses improved as they were positively impacted by interest income on the proceeds of the March 2023 right issue, and also the cash available at project level in the context of much higher short-term interest rates than in the first half of 2022. Our effective adjusted tax rate has improved significantly at 25%, versus 89% in the first semester of 2022. As you may remember, in H1 2022, our effective adjusted tax rate had been severely penalized by the fact that we had decided, for very obvious reasons, not to recognize any deferred tax assets on Metoro's impairment charge. The adjusted net income of the consolidated group amounted to EUR 63 million, versus slightly more than EUR 1 million in H1 2022. Our published consolidated net income, including the impact of the change in fair value of energy derivative financial instrument, net ex- net of tax, amounted to EUR 90.6 million. The change in the fair value of this energy derivative financial instrument was positive in H1, in the context of decreasing forward electricity prices in Finland. This published net income is presented in the appendix to this presentation. Focusing on our tax rate on slide 20, in H1, and as I said, for the first time, our effective adjusted tax rate is fully in line with our nominal tax rate. This is really a reflection of temporary positive effects, but also a demonstration of the efforts that we have engaged over the past few years to better manage tax impacts at both project and corporate levels. Over this semester, we benefited from the special taxation regime of the capital farmed on capital gain, a much lower hyperinflation impact in Argentina than in the previous semesters, but also a positive effects from the difference in tax rates, and they were negative in H1 of last year. These positive effects were offset by the non-recognition of some deferred tax assets, considering local limitation applicable to the timing of their utilization, notably in Mexico. If we now look at the cash flow generation, slide 21. Cash flow from operation amounted to EUR 175 million in H1. A EUR 7 million increase compared to H1 2022, resulting from a positive impact from EBITDA and a negative impact from working capital. Indeed, the operating cash flow benefited from the increase in adjusted EBITDA, excluding farmed wind contribution, which is recognized in cash flow used for investing activities. This positive EBITDA contribution was largely offset by a negative change in working capital, which is directly linked to the repayment of the majority of the difference between high market prices and credit tariff, which had been cashed in previously. As we specifically flagged it to our full year 2022 results, most of our plants are benefiting from credit tariff in France, but they do sell their electricity on the market. According to applicable regulation, it is the difference between market prices and the credit tariff that are being covered by EDF OA. When this regulatory scheme was implemented, no one had anticipated that market prices could be so much higher than the credit tariff, putting us in a position of debtor towards EDF OA. At current 2022, the debt owed to EDF OA amounted to slightly more than EUR 90 million. After the repayments we made in H1 2023, it now amounts to EUR 29.9 million, which will be paid back in H2. Net cash flows used in investing activities amounted to EUR 494 million, as we continued to invest over the period, notably in Goyder, Blythe, Western Downs, Capital Battery in Australia, Fox Coulee in Canada, Rio Maior in Portugal, Björkliden in Finland, Stornorrkullen in Sweden, as well as in solar and wind assets in France. Net cash flows from financing activity reached EUR 791 million, mainly reflecting the capital increase completed in March 2023, and to a much lower extent, than a decrease in borrowing on projects. As a result, our good cash balance reach more than EUR 1 billion at the end of the first semester, versus EUR 623 million at year-end 2022. On slide 22, you have an overview of the gross debt of the group. Gross debt total EUR 3.6 billion at the end of the first semester, up slightly less than EUR 100 million versus year and last year. The net increase in borrowings, which is the difference between issuance and repayments, amounted to EUR 113 million and is mainly due to additional project financing raised with the construction of new assets in France, in Australia, mostly for the Goyder Wind Farm and the Collie Battery. The slightly offsetting factor was a negative FX impact on gross debts, specifically project finance debt in Australian dollar, which is derived from a weaker Australian dollar versus euro, compared to year-end 2022. The average cost of project finance debt for assets in operation is up slightly at 4.1% versus 4% at year-end 2022. It's due to a persisting higher short-term interest rate environment worldwide in H1 2023, which is affecting the unhedged portion of project finance debt. Even so, this unhedged portion remains limited. As you know, and as we repeat every semester, our policy is to have more than 75% of our floating interest rate exposure on project debts being covered by hedges. As a consequence, group average cost of debt increased slightly at 4% versus 3.8% at year-end 2022. We continue to have more than 80% of our debt, which is non-recourse with long average tenure. Moving on to slide 23, and our net debts. Net debts, excluding positive non-recurring items, decreased by EUR 442 million to EUR 2.4 billion. Positive non-recurring items includes EUR 30 million of cash mentioned earlier, which will be paid back to EDF OA, as we already explained, and EUR 276.7 million of positive fair value of interest rates derivative, which are directly linked to the level of forward interest rates in H1 2023. Excluding 2 positive non-recurring items, net debt to adjusted EBITDA ratio decreased to 4.9 times from 6.9 times at year-end 2022, which is a consequence of the right issue performed in H1, and also the continuous increase in our adjusted EBITDA. I remind you that we continue to stick to a very strict financial discipline, with project finance debt showing long tenure. 14 years on average for assets in operation, which is a decrease compared to year-end 2022, which is explained by the commissioning of Western Downs and Kaban in Australia, which are both financed under a mini perm format, which turns to be more efficient structure than long-term financing in Australia. Nevertheless, I draw your attention the fact that we continue to hedge our interest rate exposure over the long term, even when assets are financed under our mini perm structure, which is the case for Kaban and Western Downs. Another element, we stick to the fact that all debt remains denominated in the same currencies as the cash flow for our underlying PPA contracts, which provides a form of natural hedge, something we do not intend to change in the future. I now hand over the floor back to Xavier for the rest of the presentation. Thank you very much, Louis Mathieu. Let's now review our portfolio on slide number 25. Our capacity and operation are under construction, a total, 7 GW at the end of June 2023. Our second portfolio reached 8 GW, of which 7 GW in operation are under construction, meaning that 80% of the 2025 capacity targets is already secured. Overall, including the advanced pipeline, but excluding early stage projects, our portfolio exceeded 24 GW. This represents a strong increase of 5 GW compared to the end of 2022. Please note that our pipeline continues to be well distributed between a significant number of projects that are spread across different geographies and different technologies. This significant increase in our portfolio demonstrates our ability to continuously feed our pipeline with new projects in advanced development. In addition, early stage projects stand well above 10 GW. We do not want to communicate more than that on the early stage projects. On slide 26, we give you the latest status on our 2.3 GW of assets under construction at the end of June. As usual, this map shows our current best estimates of expected CODs. Let's go quickly through our main projects in Australia. After the COD, the start of Kaban and Western Downs solar in June, we still have 5 plants under construction. Collie Battery, which will be commissioned in Q3 2023. In 2024, we expect the COD of 3 significant projects: the Goyder Stage One Wind Farm, 412 MW, the COD of which is now expected in H2 2024. The Western Downs storage facility, 212 MW for 424 MWh of storage capacity, also in H2 2024. As recently announced, the Collie Battery, already under construction and which is due to enter service in Q4 2024, for a total capacity of 219 MW and 877 MWh. Lastly, the Blyth Battery is still due to be commissioned in 2025. In Finland, the construction continues for the Bjorkliden Wind Farm. COD is still expected in Q1 2024, and as previously mentioned, the construction of the Storbotten and Lumivaara Wind Farms has been launched in Q2 2023, with CODs expected in 2025. In Sweden, the construction of the Stornorrkullen Wind Farm, our first wind asset in this country, is going well, with the commissioning still expected in Q1 2024, while the Stor-Skälsjön COD is now expected in H2 2024. In Ireland, our three solar farms, Millvale, Heartland, and now Hilton, inject electricity to the grid. Hilton Solar Farm achieved its testing date in Q2 2023 and started injecting electricity in Q2 2023. CODs of the three assets are now expected in Q3 2023. In Portugal, construction work is ongoing for Rio Maior and Torre Bela Solar Farms, with CODs now expected in H2 2024 versus H1 2024 formerly. In Canada, construction work at Fox Coulee Solar Farm is well on track, gaining traction after the winter. COD is still expected in H1 2024. Finally, in France, we currently have 249 MW peak of solar capacity and 23 MW of wind capacity and 8 MW of storage capacity under construction. These projects should be commissioned between 2023 and Q1 2024. In Mozambique, the situation has recently changed, as we have received late July, a binding offer for the sale of the Metoro Solar Farm, which remains subject to the completion of a few condition precedents. Before moving to the Q&A, let me comment on our short-term and medium-term perspective, starting with slide 27. Regarding our 2023 guidance, we reconfirm our adjusted EBITDA target between EUR 460 million and EUR 490 million, with an adjusted EBITDA margin, which is now expected above 80%. As a reminder, with farm downs representing less than 15% of both adjusted EBITDA and increase in secured portfolio. As for our medium-term outlook on slide 28, we also confirm our targets of double-digit annual growth rate in adjusted EBITDA between 2023 and 2025, leading to an adjusted EBITDA target of more than EUR 700 million in 2025. As you may remember, we upgraded this 2025 target last month upon the award of the capacity agreement in Australia for the Collie Battery. I also remind you that as per Neoen policy, farm down will represent less than 20% of both adjusted EBITDA increase in secured portfolio in 2024 and 2025. We also reiterate our target of more than 10 GW of capacity in operation or under construction by the end of the year 2025. Thank you very much for your attention. We are now ready to take your questions. Thank you. As a reminder, if you would like to ask a question on today's call, please press star one on your telephone keypad. If for any reason to withdraw your question, you may press star two. You will be advised when to ask your question. Our first question comes from Enrico Bartoli of Mediobanca. Please go ahead. Hi, good evening, and thanks for taking my question. The first one is related to Australia, and particularly on storage. There was this normalization of margins in the first half of the year. I wonder if you can elaborate a bit what you expect for the second half, considering also the contribution from the new asset that started to operate in the first half, and will start also in the next quarters. A second question is in general, related to your view on how you expect new awards to evolve in the second part of the year, and in particularly, if you can update us on the auctions that you are expecting in France. The last one is on CapEx, if you can give us some guidance on what you expect for the full year. Thank you. Thank you very much, Enrico. Well, in Australia, storage, as you know, is less predictable than wind and solar, and not so evenly spread in terms of financial performance in a given year. In 2022, we saw that in Q2, there was a very high performance of storage due to some events in the grid. We don't know yet if it will happen again in 2023, and if so, when exactly. It's hard to say if and when we will have, let's say, a spike in financial performance compared to a typical quarter. The two Q1 of 2023 were, in a way, normal quarters, typical quarters, of storage without grid events. We do expect, in the future, to have, in some quarters, some exceptional financial performance coming from storage, even with the existing assets. It's not the end of their, let's say, great story. We do expect as well, of course, some additional contribution coming from new assets, maybe sometimes with different business models, such as the one that we are currently building in Western Australia, with already predictable EBITDA performance in 2025 and 2026. We have at Neoen, this, let's say this, appetite for predictability. It's not so much the case with storage, except for some project that we are now building, and that come with, again, some contracted capacity for the near future. On your second question on, on what to expect in terms of new, awarded capacity for the rest of the year, there are some ongoing tenders in France, solar, wind. We do expect to be winning some significant capacity, at least by French standards. It's not always like what we have in Australia, but the, let's say the pace of growth in France has increased in the past couple of years. We have the ambition to go beyond the 150 or 200 MW that we were getting in the past, bring that to something like 300, 400 MW, why not 500 MW per year in the future? We hope 2023 to be way above what we had in the past in France. There are also some tenders in other geographies, some tenders in Latin America. There are obviously some commercial discussions for other projects, regardless of let's say, formal governmental tender processes in Europe and in Australia. There will be also a tender, a governmental tender in Ireland in the second half of 2023, in which we will participate. But again, in Australia, we do not see at the moment some upcoming governmental tender, but there are some commercial discussions for PPAs. We do see, as I said, some governmental tenders coming in France in the next few weeks and months. In our third main country, Finland, there is no governmental tender, but there are obviously some ongoing discussions for future projects through PPAs. Sorry, your last question on CapEx. I understand it as an aggregate for the remaining of the year. Yeah. We can also talk on a per megawatt basis, but maybe as an aggregate, we match you. An aggregate, you should see an acceleration compared to each one. We invested EUR 0.5 billion over the first semester, and we should invest more than that in the second semester. As you know, there are always some moving parts, depending on the commissioning of asset and progress is made in terms of interconnection, for example, but we should spend more, notably more than what we spend in H1. Maybe an additional comment on a CapEx per megawatt basis, in case it was also part of your question. We do see some positive trends for us. The cost of module is going down, the cost of steel is going down, which helps with the cost of turbines, obviously. The cost of batteries is going down as well. Knowing that we do not buy, let's say, just components, we buy turnkey assets, and the cost of labor is itself not going down. Still, we are, in our view, in a better position for the second half of the year than we were in the recent past. Thank you very much. Very clear. Thank you. Our next question comes from Michael Harlow of Societe Generale. Please go ahead. Hello. Thank you very much for your presentation and for taking my questions. If I may start with the traditional question on returns. With the Collie Battery, you hinted that said battery could be above your guidance for returns. If you could help us understand how this compares with, with Western Downs battery, for which we also saw a positive bit of news flow a couple of days ago. On the liquidated damages, maybe this is me not paying attention, but would it be possible for you to put a number on the liquidated damages that you received in the first half of the year? That's be really helpful. Thank you. Thank you, Michael. I'll take the first question, and Louis-Mathieu will take the second one. As you heard from us, in March and April when we did our capital increase, the ambition that we have with batteries, with storage, is to go for the higher part of the range that we give in terms of IRR for our projects. Typically, in Australia, we said that we are targeting IRRs of 8.5% ±1.5% with batteries, and that's the case for Collie and for Western Downs battery. We are, let's say we are aiming at, again, the upper half of that range, so getting as close as possible, why not beyond 10%? Let's see how it will go over time. Yes, batteries are meant to deliver higher IRRs than classic wind and solar projects, which themselves are not bad projects, of course, but batteries are meant to contribute more. LDs, I don't know, Michael, if it's okay for the first question, but I will get back to it if you want. Louis Mathieu on LDs. Yes. on LDs, over the first semester, we booked slightly more than EUR 30 million. In the line, other current breaking income, you also have the farmland contribution of the Cabrela disposal, which amount to slightly more than EUR 1 million. Overall, if you take into account those two elements, we have slightly more than EUR 60 million of LDs plus farmland. Thank you. That was very helpful. Thank you very much. Maybe just two additional comments. At Neoen, we have this preference for full turnkey contracts, EPC contracts, meaning that in case our contractors are late, in case the performance is not there, we are well compensated for that. Of course, those contracts are not always, let's say, as competitive as separate lots. In the end, and that's the evidence, we think that it's a right approach that Neoen has. Again, in case the plant is delayed, we do get those precious liquidated damages. One additional comment on IRRs. As you know, Neoen has. in our view, fairly conservative assumptions when it comes to IRRs, meaning that an IRR at Neoen could well be calculated 100 basis points or 200 basis points above our numbers by some of our competitors using a different set of assumptions. I do think that we have, again, very conservative assumptions. We do hope that there will be some upside that materializes over time. For storage, again, even within our conservative approach and conservative set of assumptions, we do think that batteries can yield better IRRs than solar and wind, and this is why we are accelerating in storage. Thank you. Very helpful. Thank you. Our next question comes from Arthur Sitbon of Morgan Stanley. Please go ahead. Hello, thank you for taking my question. The first one is on your full year 2023 EBITDA guidance. It seems that your EBITDA in the first half of the year is running slightly ahead of the pace required to reach the full year EBITDA guidance. I was wondering if you expect any negative in the second half of the year, or if it's just that maybe there are some contingencies included in the guidance, if ever some things in the business deteriorate a bit. The second question, actually taking a slightly different standpoint on the guidance. I would have assumed that the liquidated damages were not expected earlier in the year. I would have thought that maybe if you, if you get those EUR 30 million extra or else you call, that, that could lead to the EBITDA guidance going up. I was wondering if there is any offsetting negative or if you have any comment to make on that? Thank you very much. I will take the first one. The second one. The second one also. Okay. On the path of EBITDA, one thing you need to bear in mind the fact that during H1, we had a number of plants which were selling on the market and benefited from early generation revenue, and which since then have entered into their long-term PPA. Two examples, Mutkalampi the first long-term PPA started on April 1st. Since that date, we sell at the PPA price, which obviously is lower than market prices. The second PPA is starting on July first, on August first, in the coming days. Which means that in the second half of the year, Mutkalampi, which will be much more contracted than it was in H1. It's the first explanation, and same thing for Western Downs. You see that when you look at the Q2 figures on solar versus Q1 figures. Western Downs has seen its long-term PPA price applied starting beginning of Q2 2023, is now selling contracted for more than 80% of the total capacity. Obviously, the contract price, again, is lower than the market price, which the plant benefited from in Q1. This is really the main explanation in the difference between H1 and H2, the fact that some of those plants have entered their long-term PPA. On LDs, it's quite simple. It's really 1 for 1. If we lose Revenue, we are compensated by the PC, up to a cap, for this missing Revenue when they are responsible for it, essentially linked to delays in commissioning. This is what you saw in H1. If we had not got this LDs, we'd have had much higher revenue, because it's a very simple compensation rule. The material electric revenue. Yeah, relatively revenue. Just to be clear, the revenues lost were also in H1? I thought- Yes. maybe there was a timing mismatch on that, but- No. No, no. Okay. Okay, thank you very much. You're welcome. Thank you. Our next question comes from Nash Qui of Barclays. Please go ahead. Hey, good evening, everyone. Thanks for taking my questions. I have two, if that's okay. The first question is around disposal plan. Just wonder if you can give us a bit of color, whether you have any further plans to dispose of more assets for the rest of this year, and what magnitude, if you can provide more details? My second question is on your onshore wind projects. The first part is, do you still see CapEx within your business assumption? The second part is, are you impacted by CMAs, and what is your inference policy regarding your onshore wind turbines? Thank you. Thank you, Nash. I will take those questions. On farm downs, on disposal for the year 2023, yes, we could have additional farm down in the second half. We have some ideas. We don't know yet if it will materialize in 2023 or 2024. Let's see how it goes. We see, and that was again the case for the Cabrela Solar Farm that we sold in the first half of 2023. We see, let's say a great appetite from buyers for the assets that Neoen can put for sale. Let's see how it goes, but we do have some assets that we could sell in the coming months. Let's see if it's again 23 or 24, that would be typically in France. Probably the next farm down will be a French one. Onshore wind, on CapEx, yes, it has stabilized. I think we now have a clear view on the prices for turbine and for wind farms, because again, we do not buy turbines. We buy full wind farms. What matters to Neoen is to have a turnkey contract with suppliers and not just spare parts and components. The cost of steel, of shipping, of copper has stabilized or even gone down, which is something that has benefited to us. So we do see some predictability for the cost of wind farms in Australia, in Europe. We do not do wind yet in the Americas. The question on Siemens, that's something that we have already commented on, but with a limited audience, so happy to have that question. Thank you for it. No, we are not impacted by what Siemens has announced. We do have some Siemens turbines. We do also have some Siemens Gamesa turbines. We have 300 MW in Australia. That was, let's say, full Siemens before the merger with Gamesa, so with a different technology, no gearbox. We do think that those ones, 300 MW, are, in a way, safe. We have, if I'm not mistaken, something around 150 MW of Siemens Gamesa turbines in Australia, and a little bit of them in France. They are not part of the series that were affected by defaults announced by Siemens Gamesa. In a way, we think that we are safe. Let's see how it goes in the future. Again, at Neoen, 300 MW of pure historic Siemens turbines, which are, again, different technology, not affected by the Gamesa problems, and 150 MW or so of Siemens Gamesa turbines, but not part of those series. We mainly buy for wind from Vestas, GE and to a lesser extent, Nordex. Not that much Siemens Gamesa. Very helpful. Thank you so much. Thank you, Nash. Thank you. Our next question comes from Vincent Ayral of JP Morgan. Please go ahead. Yes, good evening. Thank you for taking this question. Two quick one. First, it's been a year, I keep doing it. The French situation with this 18 months commercial exposure. I see you made a comment. Yes, indeed, you're starting to see some effect. How much do you expect the positive impact to be in 2023 and 2024 given current commodity prices? Second, the comment you made on the Metro project with binding offers received late July. Could you give us a bit more color on that? I mean, I understand you've done all the impairments and everything, could we have positive surprise? What is the situation in more details? Thank you very much. Thank you, Vincent. Maybe starting with the second one, do not expect a crazy positive impact. I mean, this is not a shutdown. This is just a clean exit of a country that has been not a great success for Neoen, so this project will be in good hands. We have already depreciated it, so there might be some slightly positive effects coming from this sale, but no, we are not going to recover what we have depreciated last year. Still, it's again, it's a clean exit. It will not take any more bandwidth from Neoen. It will not, let's say, bear any risk. There is a little bit of administrative process with a few CPs to be completed, but that's a clean end of an unsuccessful story for Neoen. There might be a little bit, but just a little bit of upside to our numbers. Again, do not expect something significant. The French situation, well, I mean, spot prices have gone down something like around EUR 100 at the moment, even a bit less. Let's see how it goes. The 18 months of early generation revenues that we have before entering the governmental contracts are a nice upside to our business plans, because the contract themselves will be at prices below the current spot prices. Nothing extraordinary, though. I mean, again, if you look at the current spot prices or what you can expect for 2024, it's an upside compare, again, to the long-term contract, but it's not a game changer. Thank you very much. Thank you. Our next question comes from Philippe Ourpatian of Oddo. Please go ahead. Yes, good evening to all of you. Just several questions. The first one is a clarification. If you have not the liquidated damages concerning your solar assets, what is. In fact, I just want to see what is the sensitivity. What would be the impact or the loss of EBITDA you are suffering due to this liquidated damage? Because I do think that they are not covering the full Revenue you will, you will have. Is there any negative shrink of margin due to that, and that could be recovered when you will put the asset in operation? That's the first question. The second question is discussing with some other player in the industry. Some of them were mentioning that there is some trouble if you are contracting, not 100% of. The existing operations, as you did, for example, in Finland with 60% only, how are you going to contract the 40%? Are these 40% going to be a full merchant? Just to have a clarification on this subject. Some other very easy question. First one is, what kind of tax rate we can expect on 2023 and onward? Because as Louis-Mathieu mentioned, there is clearly some volatility in terms of tax rate. The two last are, for Metoro, are we going to expect something in 2023? It will not be material, but it's gonna be 2023 or 2024, just to have a kind of diary. The last is concerning Ecuador. It's a new area for you, a new country. The question mark is, are you going to still continue to develop some assets in this country, or you already dealt the 100% of the potential capacity in Ecuador? Many thanks. Thank you, Philippe. many questions. I mean, on LDs, maybe Louis-Mathieu will elaborate, but again, the one for one rule is an easy one. LDs are meant to compensate a loss of revenue. It's not an upside, it's not a downside. It's really there to replace the revenue that is not there because of a delay, something we like to have in our contract. Louis-Mathieu? The only thing that I can add to Xavier's answer is the fact that we didn't reach the cap in any cap in H1, so it's really one for one. Another way to answer your question is that when you look at the EBITDA margin in H1, it's extremely high. You're right. If we didn't have these LDs, EBITDA margin would be at the same level as last year. We are getting a 10% benefit on margins through LDs, but it's very simple because we don't have any revenue. We just have LDs. On H1, it's really one for one. There is nothing else. On the capacity that is not contracted, Philippe, you were giving the example of Mutkalampi, but there are some other projects. The fact that it's not contracted yet, does not mean that we are not going to contract it in the future. It does not mean either that we are going to contract it. I mean, we have a flexible approach. We like, at Neoen, to have long-term contracts. As you know, 80% of our capacity for solar and wind is sold through long-term contracts. We have, at Mutkalampi, a great project. Let's say roughly one third is sold to Google, roughly one third is sold to four Dutch cooperative stakers, and a bit more than one third is still available. We might contract part of that or the whole of that in the future, we'll see. We have that flexibility. That's also the case for some other wind farms and solar farms. We can start with a higher merchant exposure than what we will have on an ongoing basis. Of course, you cannot, let's say, un-contract what has been contracted, but you can always contract what is still merchant at a given point of time. On tax? On tax rate, yes. I mean, you have seen the normalization of our tax rate, and you have seen as well the beautiful, net income that we have. Louis-Mathieu, if you want to comment. Yep. What I can give you as help regarding tax, the impact of the sundown will be lower in H2 for very obvious reason. We will have a higher net income, we should be slightly above 30%, which is a normalized level for tax. Normalized is between 30 and 35. Considering the fact that we have this a positive effect in H1, which will be lower in H2, which should be slightly higher than 30, provided there is no bad surprise in Argentina. You know, that there is a presidential election in H2, there is always a risk that they invent new rules and that we have an additional hyperinflation impact. So far, so good. We'll see. I mean, that leads to your last question. Let's say the complexity coming from some specific countries such as Argentina is in a way diluted now that we have in our portfolio, let's say more Australia, more France, more Finland and the likes. That has, let's say, an helpful effect on matters such as the tax rate or even net income. On Latin America, we are still developing new project. I mean, we have a nice team down there. We think that they can bring a project that have value, that have good gearing as well, and good contribution on a dollar per megawatt hour basis. We participated in tender in Ecuador. We actually had a team in Ecuador since 2020. We were successful in the recent tender. It's not, let's say, a major thing for Neoen. It's a bit more than 200 MW. That's not going to be, let's say, a new theme in our growth and in our geographical footprint. Yes, we have a team that is actively developing projects in the region, smaller project than what we can have in Australia or in Finland. But it's something that we keep doing. Yet, the growth coming from more classic countries is going to, in a way, dilute a little bit the non-OECD countries. At the time of the IPO, we had, I think, a bit more than 15% of our capacity that was in non-OECD countries. It's gradually going down, I think, 5-ish%, something between 5% and 10% is the long-term trend. More than 90% of our capacity is already in OECD countries, and that will be even more true in the future. Yet, at the same time, we do find from time to time, some interesting opportunities brought to us by the nice and talented team that we have in the region. Which is, by the way, not true for Africa. Africa is not going to grow. Many thanks. Just Latin America that we keep on developing, but Africa is not going to grow. Thank you. Our next question comes from Martin Tessier of Stifel. Please go ahead. Yes, good evening, thank you very for the presentation. Two questions for me. The first one, you mentioned a small impact in France in H1 for revenues that are sold on the merchant basis with this 18 months period. Could you provide us with this number? The second question, which is a very general one, you have currently 2.3 gigs under construction. I think the maximum was 2.5. I was just wondering if you are some kind of capped by I don't know, maybe your number of employees or something like this. Is there some kind of a cap on the gigawatts under construction? You can easily go to 3, 3.5? Any thought on topic would be very helpful. Thank you. Your first question, the impact is, is a couple of EUR 1 million, but no more than that. It's a single digit and a low single digits. No bad news again on France spot prices. On the second question, Martin, it has been common for Neoen to have something between 1.5 and 2.5 GW of project under construction at a given point of time. It could be more. Let's rather look at the number of projects rather than the sheer size of the portfolio under construction. We do have a lean team, and yet a very experimented team and a talented one. It's true that in a way, there is a limit to the number of projects that we can handle, but at the moment that limit has not been reached. Even with, let's say a fairly limited team, we have less than 400 people worldwide, but we could do more. Of course, at some point we will want to be a bit careful with the number of projects that we handle. At the moment, we could handle more. It's not our intention, having 2.3 GW under construction is already, as you can imagine, some heavy, some heavy lifting. We are equipped and organized for that, and we do not see a limit at the moment, coming from the number of people that we have. One thing to add, as you could hear, we have turnkey contracts. Most of the work is actually done by our contractors. I mean, we supervise the construction of those assets, but we do not have large teams at work, even if we do play an active role in making sure that those plants are built following our specifications. Okay, very clear. Thank you. Thank you. As a reminder, if you'd like to ask a question, please press star one on your telephone keypad. We have a question from Olly Jeffery, from Deutsche Bank. Please go ahead. Thanks very much. Just one question on the guide for the full year. There's a few mixed things happened in the first half. The question is, do you see, you know, the guide you saw at the midpoint of the range or more at the lower or the upper end of the range? You can give any comment on that. Consensus net income was at EUR 80 million. Are you giving any comment on net income or consensus net income at this point? Thank you. I mean, it's. Thank you, Olly, for the question. At the same time, as you can expect, it's hard for us to give more indication, or to put it another way, if we had something clear in mind, we would have put it on the table. We may narrow that guidance in Q3. That's something that we have already done in the past. Again, we are not worried about the perspective for the second half of 2023. Let's see how positive we are or if there is any reason to become a bit more cautious in Q3. At the moment, we do not want to narrow that range. Anything to add, Louis-Mathieu? On net income, as you know, we don't gain on net income because there is always some volatility in the tax rates. What I can say is that the trend that you observed in H1 on depreciation and amortization and on cost of debt should continue going forward because it's directly linked to the commissioning of new assets. I don't expect any significant change, and the moving part will be on the other financial income and expenses. We should benefit from lower interest income for very obvious reasons, that we'll continue to invest in our projects, and so we'll have a lower cash level at the end of the year than what we have today. It's really where you should, you should see a decline compared to H1, but as for the rest, it should be pretty steady. ... maybe one additional and very broad comment. I mean, for the first time, you see such a level of net income. We now have, I think, a PNL that looks really good at every line. We hope to keep it that way in the future. It's true that Neoen has now demonstrated its capacity to bring again, good numbers at every level, every line of the PNL. Again, I mean, some things might change, as you could hear, depreciation, the tax, there are sometimes some complexity coming from some specific geographies. We do see, let's say, a positive outlook for Neoen on those matters in the future. Thank you. Thank you. As we have no further questions in the queue, I'd like to hand you back over to your host for any closing remarks. Thank you very much, and thank you everyone for the participation to this call, and as usual, for the great set of questions. To conclude, I would like to remind everyone that Neoen continues to grow its Revenue and to grow profitably with substantial headway delivered during the first semester, as reflected by our 44% increase in adjusted EBITDA. We also continue to grow our portfolio, and we have achieved key milestones in the first half of 2023, both on secured and advanced pipelines, notably the commissioning of Australia's largest solar farm, the launch of the construction of our first long duration battery, the addition of 5 GW to our portfolio of projects. We continue to benefit, of course, from a favorable current market environment, which drives additional demand for long-term PPAs, notably for corporates. PPAs are themselves getting priced at much higher level than in the past, ensuring strong and sustainable value creation for many years to come. Partly, thanks to our successful rights issue, our cash position is strong and will allow us to deliver our 2025 ambition, notably in storage. More than ever, Neoen is ideally placed to benefit from the acceleration in the development of renewable energies, which provide green, local, and competitive electricity. Thank you again, everyone. I hope that you had a good time with those great numbers, and the next date on our agenda will be the publication of our 9-month revenue on the second of November, after market close. Thank you. That concludes today's conference. You may now disconnect.