Welcome to Kyoto Group live update, this briefing on the strategic alliance with global partners, Iberdrola and Spirax- Sarco. I am Håvard Haukdal, the Kyoto Group CFO, joined by our CEO, Camilla Nilsson, and our CTO, Bjarke Buchbjerg. Last week, on Thursday, we announced the strategic alliance with Iberdrola and Spirax- Sarco. We are here today to highlight to you the implications of this strong partnership. With Iberdrola, we are significantly strengthening the go-to-market strategy. Iberdrola has a huge client base, we are working on specific cases together as we speak. With Spirax- Sarco, we are having a strong supplier, we have a partner agreement to develop jointly the heaters of the future for Kyoto Group. In addition, these two players are coming into the Kyoto through a investment of total EUR 6.5 million. They also take the seat in the boardroom to jointly together with us to develop Kyoto for the future. In the media, the last days, we have got extensive attention. Some of the highlights you see here on the screen. I could mention Iberdrola joins Kyoto to accelerate decarbonization of the industry. We also see that Spirax- Sarco is taking their 15% interest in a thermal battery company, Kyoto. With this backdrop, I leave the floor to you, Camilla, to take us through the highlights of the partnership. Thank you so much, Håvard. I'm super excited to finally be able to share a bit of details about this very powerful alliance that we are now forming with one of the largest electricity companies in the world, and a global leader in thermal energy management. Before we go into the alliance, let's zoom in a bit on those two companies. If you live in Spain or the southern part of Europe, or if you are engaged in the energy transition, you will be familiar with Iberdrola. For those who are not, let's zoom in a bit on those companies that are now joining us. Who is Iberdrola? It's one of the largest electricity companies in the world. It's the largest in Europe by market cap. Iberdrola has been committed to renewable energy for more than 20 years, with more than 40,000 MW already installed, aiming for 52,000 MW in just a couple of years from now. That's at par or beyond what some of the large oil and energy companies are aiming for in 2030. Iberdrola is taking a serious position in leading the energy transition, and they are doing that by investing heavily. Iberdrola is investing EUR 75 billion in the period 2020-2025. That's more or less the market cap of the company, and then another EUR 65 billion-EUR 75 billion expected for the following five years. Iberdrola is headquartered in the north of Spain, in Bilbao, and we have been working together since around October last year. For Iberdrola to really understand our technology, we have been through a very thorough technology due diligence and also a commercial due diligence to secure that the commercial model and the cost and price levels fly in the market. Concluding that, we have started to go to market together. We are already offering the Heatcube to Iberdrola's clients and to our clients together, and we expect to see announcement related to that in the near term. Let's look into how Iberdrola think about the energy transition and why they invest in Kyoto. Let's listen into an interview with Agustín Delgado, who is the Chief Innovation and Sustainability Officer in Iberdrola. This brings me to perhaps that energy revolution, that we are living, that you were also referring to. I guess the word revolution refers also to that sense of time and the fact that we need to rush everything, and especially in the next 10 years. Can you share perhaps some lessons learned from what you've already put in action, and what are the immediate benefits that you saw? This is about the here and now, about Iberdrola here and now. I would say that one of the lessons learned it is that technology is not a problem, and technology evolves faster than we expect. We used to think in a linear way, and we have learned in some other industries, but also in energy, that technology evolution is more sometimes in exponential way. We shouldn't think about a linear development of the technology, but exponential development of technology, and this makes revolution. It happened in the telecom industry, but it happened in other, in other industries. This is first thing. You need to. The other lesson, you need to very, very focus on action, on, as I said before, investment heavily, for sure, wisely, but thinking that the change is possible and it will be done. We want to be one of the companies that is in the leading position to embrace this change and promote this change. Talking about ambition, I think the Iberdrola's ambition to be carbon neutral by 2030, which is a, you know, very good and clear ambition. How is this plan shaping up? What are the things that you're doing within the company to get there? First, you cannot be carbon neutral in any time if you don't haven't done your homework before. Let's say that we had since 2000, a clear trend for of the decarbonization of our activities. We have closed all our coal power plants in our fleet. We are reducing our footprint in combined cycles, and we are offering our clients a green product, so a Scope 3 emissions are also reducing. We're working with our suppliers also to reduce their carbon footprint. All in all, it is about having trend of being in the path of the decarbonization. We are one, as you mentioned before, we are one of the utilities with lower CO2 emissions per kWH. We have a clear vision that we are going to decrease that much more. It is not only about decreasing the emissions, it is about that through the decreasing of the emissions, we are going to embrace all the opportunities that the decarbonization of the economy is going to take. You can think it's about emissions for sure, but it also has an economic sense and opportunity sense, and we are going to be the company, or one of the companies, that is going to be at the forefront of those opportunities of the decarbonization. We are not going to have this legacy because we are leaving it behind. We're talking about Europe also and, reaching those 50% of renewables, in the next 10 years. Where should the focus of decarbonization be in order to most effectively accelerate the progress towards net zero in Europe, according to you? Putting this back in a European context. There is low-hanging fruit that can be captured. Sometimes it's in our hand, and sometimes about policy, sometimes it's about investment, sometimes it's about informing the customers that they have better options. My thesis is that, first, we have to be able to capture as much renewable energy as possible, and we are in the process of doing so, increasing our, globally in Europe, but also in Spain, very heavily, our installed capacity of renewables. There is a lot of low-hanging fruit to decarbonize many sectors, like residential heat, or low temperature processing the industry, or light-duty vehicles for mobility. Those low-hanging fruit is very interesting. Just one example, in Spain, there is 1 million homes being heated with oil. It can be changed in an economic way today to heat pumps, air-to-water source heat pump, and in a competitive way and more sustainable. Why it's not been done? This is a low-hanging fruit that we can take. Thank you so much, Agustín Delgado. This is music for us in Kyoto. What he's saying, he's demonstrating the multibillion plan to seize market shares from oil and gas companies. He's saying that technology is not the problem. Technology is available. It's all about action, and it's about electrifying the demand side. Take note of how Iberdrola talk about the demand side. We don't hear so much about that. We hear about solar, we hear about wind, we hear about lithium ion battery. If half of the energy in the world is heat, no solar and wind and lithium ion battery is gonna solve that. We need to start by understanding the demand side of things and figure out from there how to do this. It's not so difficult. He present significant low-hanging fruits that we can do today. He says we need to electrify residential heating with heat pumps, and he says we need to electrify industrial process heat. Low and medium temperatures is possible to address today. To do that, we need to build out renewables. That's to a large extent the energy transition. What we don't see in this clip, but what you will see if you see the full interview, if we are not able to electrify, but only if, then he's also talking about hydrogen and green ammonia for the very high temperatures in the industry and for the heavy, long transportation. He's also saying that that's not for the near term. That's maybe more the around the 2040 period. Kyoto is number two in Iberdrola's plan to take action on the low-hanging fruit, to electrify the industrial process heat, and that is what we are doing together. To be able to do that, we need to secure a supply chain. We will not be able to scale ourself. That is where Spirax- Sarco is coming into the picture. A U.K. listed multinational industrial engineering company, a global leader in thermal energy management and fluid technologies. They are the owner of the Vulcanic, the company that is delivering the electrical heater to Nordjyllandsværket, our first installation of the Heatcube, and which will supply the electrical heater for Heatcube 2.0 and beyond. If you are going to electrify industrial process heat, you need an electrical heater. That's one of the core components in the energy transition. To secure the supply of that, Spirax- Sarco is gonna play a significant role. With manufacturing plants around the world and a workforce of over 10,000 people. We are in a relationship with the Spirax, through Vulcanic, for quite some time already, supplying the heater to Nordjyllandsværket. Bjarke will come back and talk more about the partnership and what it means for Kyoto from a technology development point of view. What does this alliance mean? It means all about enabling large-scale commercial rollout. With Iberdrola, then fueling the demand side, we'll get access to Iberdrola's 2,000 industrial clients only in Spain. We will provide the one-stop shop for industrial clients. We are able, with this alliance, to decarbonize fully an industrial plant, providing the electricity that the plant needs. More importantly, we know that 2/3 of the energy of the plant is often heat. We will be able to provide the electricity and the heat, together. We are controlling the entire value chain of doing this decarbonization of an industrial plant, with Spirax as an expert and who is already working deeply into the heat, flow, into industrial plants. We also announced last week that we have signed another agreement that has a significant impact for us. That is with Steinmüller Engineering, a German company. I'm not gonna go into the details here, Bjarke will do that, but that is also part of enabling this large-scale commercial rollout with an innovative and very cost-effective steam generator system that Steinmüller has developed for Kyoto Group. Bjarke will come back and talk more about those details. All in all, this is enabling the large-scale commercial rollout. We are already working on several commercial contracts already, and we expect announcement in the near future. This is just a reminder of the projects that we have in the pipeline, and this was presented at our previous business update. It's here again, just to confirm that we maintain our commercial guiding for this year, with 5-10 contracts signed within 2023. With that, Bjarke, I would like to hand over to you to talk a little bit more about what this means from a technology point of view. The stage is yours. Thank you very much, Camilla. As a CTO of Kyoto, I'm extremely happy to stand here today. One of the big announcements that we came out with this week or last week was the quadrupling of the discharge capacity, which is due to the introduction of Steinmüller as our strategic partner on steam generator supplier. First, let me just introduce a little bit to you why this match with Spirax-Sarco and Steinmüller is such a good idea, why it fits so nicely with our product. What we have done is that we have developed a world-class technology. It's new, it's innovative, it's modularized, it's standardized, and we are doing it now with world-class suppliers that is building on many years of experience within electrical heating and steam generation. What we have done, and we have developed a product, first of all, to fit the demand of the customer through the modularization that we can do with this product, that fits very well into also the into the strategy of both Steinmüller and Vulcanic, which is a subdivision of Spirax-Sarco. Secondly, what we can do now is that we have standardized components. We have big suppliers, which enable us to give a fast delivery and a low cost through the standardization that we are doing together with them. Our technology is mature, and our supply chain is now ready to scale. We are introducing Vulcanic and through Spirax-Sarco into the supplier of the electrical heater. Vulcanic has already, as Camilla stated, delivered the first and largest electrical heater in the world for molten salt purposes, which is now standing at Nordjyllandsværket site and taking into commission now. We will, together, based on the learnings that we get from that, develop the next generation of electrical heater, which is a 10 MW system that will fit to meet the customer demand for Heatcube 2.0. The partnership with Spirax- Sarco does not only involve electrical heater. There is many other aspects that Spirax- Sarco can contribute to our product as the Heatcube, and we will explore that moving forward. Steinmüller is coming in as the main supplier of our steam generator and warm start. We are now quadrupling our thermal discharge effect from 5 MW thermal- 20 MW thermal without changing the design of our Heatcube. This enables us to broaden our target towards our customers and scale out the way of impact that we can do with this technology. Steinmüller is an established supplier, and they have a standardized and tested and validated product that we can roll out together with them, and they are standing ready together with us to scale for production. With that said, I will hand over to Håvard again to take us through the last part. Thank you very, very much, Bjarke. Then I will take us through the securing two years' cash runway. With the partnership with Iberdrola and Spirax-Sarco Engineering and the investment that is following from that, we are taking another step in realizing the two years' cash runway for Kyoto. As we presented to you on the business update on the 24th of April, we have a firm plan that we are following to deliver on the funding to Kyoto. Of course, that plan is established on certain assumptions, on the sales volume, on the profit margins, on CapEx development, and not at least the commercial models, what part is allocated to product sales versus Heat-as-a-Service sales? The total, the full-fledged execution of this plan is aiming to secure EUR 20 million-EUR 25 million in total. We did put in place the private placement back in January, EUR 6 million. We now raise equity funding of EUR 6.5 million from Iberdrola and Spirax- Sarco through the directed share issue. We are also working on the debt financing from Nefco. As we have informed earlier, we have secured a approval in principle decision for that, and we are now pursuing the final steps to have that finally concluded as well. These are the elements that are a part of our plan and that we are now pursuing to deliver in also with a Nefco step in the near future. We should also mention that one important supplement is the agreement that we have with Kyotherm to have the project financing and the debt financing into specific projects. Also in addition to that, also our large partners are coming in, delivering Heat-as-a-Service projects to the clients, and that is also offloading some funding need. This all together concludes that we are on the good and firm progress to deliver on a roadmap to two years cash runway. I think Thank you very much for this. We move on to the Q&A, I would like to have Camilla Nilsson and Bjarke Buchbjerg coming to the floor, and I will pick up my computer. The questions are coming in here. I think we will start with you, Camilla. We have got a question regarding the status for the NJV installation, the Heatcube installation in Denmark. What is the latest news on that? The latest news on Nordjyllandsværket is that we are progressing as planned on the commissioning. We have communicated that we are planning commercial handover in July, and that is what we are progressing towards. ABB is on site as we are speaking and preparing for the grid connection of the heater and the Heatcube. I move on to you, Bjarke. We have a very good question here: How does the new setup with Spirax- Sarco and Steinmüller affect the ability to scale, and how does this compare to our competitors? As said before, this is absolutely crucial that we are able to scale up our production, and bringing in two suppliers which are able to do so means that our ability to scale is more or less limited, limitless. We can expand to the extent that is needed, and I think this is exactly what we are facing now with a strong partner as Iberdrola, who is going to bring in a lot of commercial attraction for us, hopefully here. We should be able to expand and to deliver the amount of products that they need. If we are to compare a little bit towards our competitors, this is one of the things that I think is the primary thing that sets us a little bit away and apart from our competitors, is that our components exist on the market. We exist, and they exist in multiple scale. It means that there's not only one supplier that can do a steam generator. We can make the design together with Steinmüller and produce it at multiple sites, which means that our amount, the amount of components that we can deliver is limitless. I think this is a very, very strong thing for us, and the ability to scale around our product is now put in place. I have also a question relating to the market side again, and maybe to you, Camilla: How will the partnership and investment enhance the company's competitive advantage in the market? I think you have been conveying that, but maybe you could repeat this. Yeah, to repeat on that, I mean, we are a startup. We are 35 people. We have a very strong supply chain. We are able to scale, but with this, we get access to Iberdrola's market, the balance sheet. Of course, this is a significant game changer for us. Thank you. A question: Will there be a subsequent offering of shares at the same levels as Iberdrola and Spirax-Sarco Engineering get the shares? We executed the deal with the transaction with Iberdrola and Spirax-Sarco Engineering on market terms. The pricing has been based on the volume-weighted average price from January until 20th of June. We don't see the need for doing a follow-up, a subsequent offering on that ground. Okay, I move on to you again, Bjarke. What are the possibilities of combining industrial heat pumps with the Kyoto thermal batteries? That is a very good question, and for sure, this is something that is very interesting for the future. As I see it, and I will not comment on it in detail, but it is more or less a perfect match between high-temperature heat pumps and our thermal battery. I hope that this is something that we will see on the market, maybe already in two or three or four years, that we will see a combined product between heat pumps and thermal energy storage. We also have a question here relating to, regarding the two-year cash runway and business plan to secure 5- 10 new contracts in 2023, when will you start to construct new Heatcubes, and how many Heatcubes are you able to finance until 2025 with your proposed cash runway? Would you like to start out with that? I can comment upon that. For the long lead items, for the first Heatcubes that will be rolled out, we have already initiated. We are preparing for the rollout, and we see the next in the pipeline, and we have an agreed timeline in the projects that are in the pipeline. We have already started a bit carefully. As Bjarke said, we are scaling this with the supply chain. When the commercialization of this is starting, we will also get the cash flow from the business. It's not that we see that we need to secure a significant cash to do the next 10 Heatcubes. When the business is starting to going, we will match these payment terms. Of course, we will need a bit of working capital to do this, and we need to cover the fixed cost of the company. The growth of, and the commercial side of this, we will, to a large extent, finance with the business, with the revenue coming in. Good. Bjarke, to you: Will the next construction of a Heatcube be a Heatcube 2.0, or will it be a transition phase? Yes, it will be a 2.0. That is for sure. We have a question: Are you expecting new investors into Kyoto? We have now settled the investment with Iberdrola and Spirax-Sarco Engineering. We are working on the instruments or the tools that we have been describing here, the green loan from Nefco as well as other debt financing tools as well. We will always keep the door open for good strategic investors, that is not what we are not targeting for the near future. Then I think we are close to finalizing the Q&A. One last question to you, Camilla. Are there any specific areas or markets Iberdrola and Spirax-Sarco Engineering are particularly interested in? Yeah, we are going to form an alliance, and we are going to go to market, all three of us. That will require a bit of work. We need to get together, we need to look into the synergies, and we need to agree on which synergies to go after. It's natural for us to start in Spain, where we are already starting, which is a home base for Iberdrola, and to a large extent, also for us, and where Spirax also has production facilities for the future Heatcubes. Of course, there will be a lot of activities in Spain, but we are also already starting to talk about other geographical areas. I think that concludes the Q&A for Kyoto and this live update. Thank you much for attending, and feel free to reach out to us for additional questions. Thank you. Thank you. Thank you very much.