Hi, everyone. Are you steamed? Are you? Are you energized? I think this is a great way of showcasing where we are coming from and where we're headed, everyone. And I hope you're ready. Buckle up for this journey ahead, and let's turn up the heat. So it's a pleasure to welcome all of you. It's great to see all of you here at the Munch for this Capital Markets Day. Thank you for showing up. There is no seats available, which is always a good sign, isn't it? And I might also say I'm Magnus, Magnus Bruun. And I'm your host today. Some may have seen me on TV or perhaps heard me on the radio as I comment on tech trends and news quite regularly. And I'm one of those guys that's, you know, considered by some people, you know, approaching me on the street, for instance. And I must say, sometimes I believe people tend to think I'm a walking Wikipedia. You know, they throw questions at me, like everything, you know, like: What's this? Or what's that? And to be honest, I met Jimmy Wales. Anyone knows who Jimmy Wales is? Anyone? Wikipedia founder. Yes, the Wikipedia founder. I met him several times, for instance, in London, 15 years ago. He was a rock star. I mean, you don't have to believe me. You can, you can just, think for yourself. But, you know, like in a hotel, women, men, girls were coming over, sitting on his lap, taking photos. I met him, one and a half week ago, and not so many were sitting on his lap now. But still, it's like how it is, isn't it? Like, you wanna, you wanna look a, around the corner. What's happening? What's happening within the world of tech? And I think this is a, a sign of the interest in general when it comes to technology, is huge out there. And hopefully, also, you guys here today are ready to absorb. Absorb all of the information, the energy, and the steam you will be getting from this stage and from Kyoto Group, which I'm proud to say will share an update with you, which I believe is probably gonna be quite interesting. Today, I'm here to make the journey ahead for energy storage more understandable. And quite frankly, I must say that Kyoto Group's technology is underestimated by many. This is my personal view. I hope that's probably, and hopefully, something you will get a better understanding of during the day. It's all about the potential and what we're able to do when we connect the grid to power storage, steam-based. This video was called Mr. Steam, by the way. What potential we get in thermal energy storage. So that is what we'll talk more about today. I'm not just interested in the small, cool tech gadgets, as you probably might have an understanding of. I'm also interested in a bunch of other things, but I'll let you in on a little secret. A couple of weeks ago, I went with Petter Northug, you know, the skier. We did open up an electronic store in Oslo, long queues outside, several hundred, almost 1,000 people. It was not really good weather, but they were, you know, they had the stamina, so they kept on waiting. And we, Petter and I, bought each, we bought a TV set, 85-inch. Do you have an 85-inch, anyone? You better get one, because this is, this is where, where the world is headed, into your living room. I actually got 2 of them. So, anyway, I mean, this is what we all are becoming a part of, aren't we? Like, the, the encouraging, fun part of, how technology is becoming, a part of our everyday life, in a way. And I'll, I'll also let you in on another secret. Yesterday, yesterday afternoon, I bought 40 smart speakers. I'm building a new house. I bought 40 smart speakers. Anyone here has more? Anyone higher? No? You all need at least 40 smart speakers. And I can talk to them. I can talk to them in each room, you know, you wanna interact with the technology. But then I have to ask you on the first row, do you remember this, TV commercial by Rema 1000? Rema 1000? Yes. Where he said, or he was screaming, "Fire!" No? Anyone remember? And what happened? The speakers went, "Higher!" And he also said, "Open door." You remember, open door? T his is me now, you know, but it's not always working out the way you want to, right? The door is not opening, yet, at least. So I think, to be honest, this is a part of the world we're living in. And I do think that, we're able, today, at least I hope, to open the door. Open door to, the future and how we are, all dependent on, the future powered by companies, like Kyoto Group. The sustainable energy shift is a story about storage, consumption, also energy production. But first of all, it is important to look at where we are and within which areas within our society that there is, you know, the largest demand and consumption of energy. I hear a lot about hydrogen, and I'll let you in on a secret. I mean, I've even been in the cockpit of an airplane from New York City to Oslo with SAS, shooting a TV series with the captain, talking about hydrogen! Talking about what are we gonna do when it comes to transportation in the future. And I don't know if all of you know, but when you fly across the pond, it's a highway. It's a highway. Every plane is, you know, following each other. So it's not like they're all scattered around. They're all following the same path, and it's like 6 different. Have you seen AI? You know, if you hold up a hand in DALL-E, for instance, it's not 5, it's 6 fingers, right? You've seen this, right? So it's 6 highways to wherever you're going, either west or east. This is a way of trying to understand, in my view, on hydrogen. Okay, there is a small part of the world we're living, which is about transportation. I also have a friend building one of the biggest battery companies in the U.S. for cars. A huge one, a really huge one, and they also do stuff on the grid, and that's great. I've visited him several times in the U.S., and he's been here in the Nordics. But all in all, we need to solve the biggest question out there, and that's how we do energy and store energy for the most important aspect of our society, and that's industry and production. This is why I was so enthusiastic when I was approached and asked if I could be the host of the Capital Markets Day today. There's several aspects related to the highway I mentioned, but one thing is certain, and we will learn more about this today, is that as far as I understand, Kyoto Group is already in the fast lane when it comes to where we're headed. So what we all need to embrace and think about, I think, is whether we want to be on that journey, whether we want to make the energy storage more available and more sustainable. So all in all, on this road ahead, we know that one thing is certain, and that is we are in need of energy in the future. A lot of energy. This will not change, right? And energy comes in many forms. Steam and heat is one of them. So please put your hands together, everyone, for Camilla Nilsson, the CEO of, oh, Kyoto Group. Thank you, Magnus. Listening to you, everything that I planned to say is gone, and I have three other things I want to talk about. First task for you, you need to put Kyoto into Wikipedia. We are not yet on Wikipedia. Second thing, our technology is gonna work, not like your speakers. Our technology is working. And the third thing is hydrogen, I'm not going there today. So thank you. Welcome again, to this journey we're gonna take you on into the details of, Kyoto. We're gonna show you, where we are, what is the latest development, and we are excited to do so. But first, let's take the holistic perspective, the big picture. If we look on the energy transition that we find ourselves in now, from a holistic perspective, it's not so difficult. We need to switch the fuel we're using. It's basically five groups of demand that we need to fuel switch. We need to switch the fuel for the cars that we are driving, we need to switch the fuels for how we are heating our buildings, and we need to switch the fuel for how we provide industrial process heat for manufacturing. Those three, easy, simple, available today. There is technology available today ready to scale that can electrify those three areas. Then there are two more groups that is a little bit more tricky, and that is the high temperature, industrial process heat. We are talking about the 500-1500 degrees Celsius. We are talking about fertilizers, steel, cement, a bit more tricky. And we are talking about the heavy, long-distance transportation, also a little bit more tricky, not possible to electrify. Then we will have to switch to hydrogen or ammonia. That's gonna be 10-15 years down the road until we see that at scale. The electrification of the society can and must happen today, and we are already late. Luckily, it has started. Last year, 74% of all new power capacity that was installed in the world was solar and wind. So the fuel switch has started. But we know now that the solar and wind doesn't solve the problem, it's the demand that needs to fuel switch, and that's where the storage comes into the picture. And as we know that heat is half of the energy demand in the world, it doesn't make sense to store that as electricity. We don't need to store all the energy as electricity. It's a fraction of the cost to store it as heat. So if the demand is heat, we're gonna store it as heat. We are running out of time. 197 countries, I think, have committed to the Paris Agreement. We have all agreed around the world that we are gonna limit the global warming to 1.5 degrees. We reached 1.5 degrees in July this year. 11 days ago, we reached 2 degrees. We know that it's an El Niño effect going on, we know that's gonna be even stronger next year, so we know that that effect in East is in there. But nevertheless, this is going fast now, and this is out of our control. Why do I say that? We are not a climate agency, but this is the whole reason for our existence and the world we in Kyoto are living. This is what we are trying to contribute to, and the decision makers of the world are on top of this. There was a climate conference in New York, I think 3-4 weeks ago, where the General Secretary of UN said, "Humanity has opened the gates of hell." This is a very harsh statement from one of the leaders in the world. It's the first time we hear such a harsh statement from him. What does it tell us? It tells us that the pressure is only gonna increase on this topic. We have agreed on a target for 2030. We are far away from that target, far away, and that is 74 months away. So this tells us that the pressure on this topic is only gonna increase, going ahead. If people think this is turbulent now, we have a roller coaster ahead of us. We need to install an enormous amount of renewable energy. We need to fix the grid to be able to keep with this, and we know that this does not solve the problem. We also need to install the clean techs that is gonna fuel switch the demand side, and that is where we are coming into the picture. I can tell you that all industry is working on their decarbonization plans. We are working with many, many of them. They are now progressing their decisions for how they are gonna fuel switch. We are going through decision gate 1 and 2, and 3 and 4, with those large multinational companies who are going to 10 committees before they know exactly how and what, and when they are gonna do. We are supporting them on this journey. We are expecting a catch-up effect here, because when those companies are coming at the same time to the decision gate 4, that's when we're gonna see the big push coming in the industry. Our pipeline is the ketchup bottle, and Tim is gonna open up and show you our ketchup bottle later, and what is at the bottom of our ketchup bottle. We announced a contract last week. We are gonna install a Heatcube in Hungary at the most modern corn processing unit in Hungary. I can tell you that that is one of the most bold, determined, and fast players we have in our pipeline. That was a process that took 11 months to close, and that's one. That's the fastest, and that can give you an indication of what this takes for the industry. If we are talking about the big international giants, we are probably talking more about two years. So it's gonna take 1-2 years for industry to put this into action. That's difficult for a startup. We need to get to action, commercial action now. So what we are trying to do is to balance the portfolio, so that we are also working with the little bit smaller and more agile companies, like KALL Ingredients in Hungary, while we also team up with the large ones who wants to go through and to do the proper, full technical DD on our technology. But we are ready for the catch-up effect. We are ready to scale. We have prepared for two years for the catch-up effect, and this is not about a small scale-up of 40 people with a group in Oslo and a group in Sevilla, in Spain. This is about the ecosystem that has been established and is now activated to roll out the technology together with us. We have teamed up with Iberdrola, the largest renewable energy company in Europe, top 3 in the world, who are gonna roll out our technology. We have teamed up with Spirax Sarco, a global leader in thermal energy management. We are in on the team with Yara since years, providing the salt that we are storing the energy in. We announced, was it this morning? No, it was yesterday morning, our partnership with Cognite, powering Heatcube with artificial intelligence. We announced that Kyotherm is partnering up with us for the first deal in Hungary. Kyotherm is a French investment company backed by the French Development Bank and with the Rothschild family, with exactly the same strategy as us, decarbonizing heat in the world. We are bringing the technology, Kyotherm is bringing finance to that vision. We have teamed up with Steinmüller Engineering on one of the pieces of strategic equipment for us. Let's look in a little bit to those partners. So what is this ecosystem? How are we gonna roll it out together? Iberdrola is the largest renewable energy company in Europe, and bear with me for a couple of minutes. I would like to go a little bit into Iberdrola because this is not a capital markets day about Iberdrola, but looking into what Iberdrola is doing will give us a very clear picture of the energy transition and Kyoto's role in the energy transition. Iberdrola has 41 gigawatts of renewable energy installed in the world. They have a market cap of around EUR 75 billion. It's about 40,000 employees around the world. This puts them in the leading position in Europe. But what is most impressive with Iberdrola might not be what they have installed today, it's the actions they are taking for the way ahead. Iberdrola is committing to 95 gigawatts of renewable energy installed 75 months from now. That's a quite bold move to take. And to give. That will require EUR 110-EUR 120 billion investment, representing EUR 15 billion a year to install this capacity of renewable energy. This is gonna be a leader in the energy transition. Iberdrola is committed to be fully carbon neutral by 2040. They are committed to being carbon neutral on Scope 1 and 2 by 2030. And to give our Nordic audience a perspective, Ørsted is targeting about 50 gigawatts by twenty thirty. Statkraft about the same, about 20 today, have committed to adding 30. And if we look into the traditional energy companies, Equinor is targeting around 15 gigawatts of offshore wind by twenty thirty. The whole energy system is, is changing in front of us. In the next couple of months, who are gonna be the biggest player in this is gonna change completely over the years ahead of us. This is Ignacio Galán. He is the Chairman of Iberdrola. He started as a CEO and has been with Iberdrola for 20 years. He has been presented by New York Times and the Financial Times as the brain behind what Iberdrola is doing. He committed to the fuel switch 20 years ago. That has put Iberdrola in the position they are today. So the company starting today have a decade or two ahead to do the full fuel switch, and this puts Iberdrola in this position to be able to take this leading position in the world over the next five years, because they have done the homework. They don't have the legacy. There is a bit of gas that Iberdrola is also gonna phase out. They have 20 gigawatts of gas still to phasing out. That's also part of the plan. But this requires a personal commitment and determination to do this. And when I talked about the fuel switch, this was actually from Iberdrola's strategy. This is how Iberdrola talks about the energy transition. Iberdrola says this is not about the renewable, the solar and the wind. We can add as much solar and wind as you want, and we're gonna fix the grid. This is about fuel switching the demand side, and this puts Kyoto into Iberdrola's strategy and into the energy transition. We are on task number three. We're gonna fuel switch the heat for the industry. That's why Iberdrola has invested and taken a position in the board of Kyoto. Of course, Iberdrola doesn't do this at a cost. There is a business, of course, involved in this, and the first is margin protection. Imagine Iberdrola installing 91 gigawatts of solar and wind. It's gonna be tons of energy available when the sun is shining and the electricity is free, and there's gonna be a lot of energy, and they're gonna get no margins on that energy. They prefer to put that in storage, and then they deliver that on the night instead, when the plants need to continue, and they can protect their margins. We are adding the margin to the curtailed energy in the energy transition. That's why Iberdrola has decided to invest in decarbonizing the heat for the industry. The market share war have started. Now, Iberdrola is gonna grab market shares from the oil and gas companies. Imagine a plant, and we know that two-thirds of the energy demand for a plant is heat. It's not electricity. Today, Iberdrola is supplying the electricity into that plant. If Iberdrola also electrify the heat side, they're gonna triple the account with that one plant. Iberdrola have 2,000 industrial customers only in Spain. Tripling the account with each of them is quite a business. So the grab for market shares has started. So that's the ecosystem we have teamed up with. The structure with Iberdrola is that Iberdrola buy Heatcube from us, install that at site, act as a utility, supply green heat to the industry, and we have a service agreement to take care of the Heatcube. We also need equipment in this. If you're gonna electrify heat, you need a heater. You need an electric heater. So we have teamed up with Spirax Sarco. If you are familiar with Spirax Sarco, you will think steam. Spirax Sarco is a leader in steam applications. That's not what we are doing with Spirax Sarco for now, we are doing the heater, which is a very strategic piece of equipment for us. And about 1-2 years ago, Spirax Sarco bought the French company, Vulcanic, who produce electrical heaters. And they have provided the heater for the Heatcube in Norbis Park in Denmark, and we have entered into an agreement where they're gonna supply the heaters for Heatcube going forward, and we are gonna develop the next generation heater together. So this is one of the most strategic pieces of equipment in the electrification of industrial heat. Spirax Sarco has also invested in Kyoto alongside Iberdrola, and taken a position on our board. We've also teamed up with Steinmüller Engineering. There is one more piece of equipment if we're gonna electrify heat for the industry, we need a steam generator. Most of the heat in the industry is steam, so we have teamed up with Steinmüller Engineering, an ex-Siemens company, today owned by a large Japanese manufacturing company, IHI, and they have designed together with us the steam generator for the next generation Heatcube. They own the IP for their technology. We own the design for the Heatcube, meaning that we can go anywhere in the world and have that produced. And why am I presenting those companies? It is to show you that we have secured the production capacity. We have, in the next 10 years, unlimited production capacity to scale this. We have teamed up with the largest and the best in the world on each piece of equipment, and who are prepared to scale this together with us and their own production capacity, should that be needed. And finally, we announced yesterday that, that we have teamed up with Cognite, the world's first AI-powered data ops platform for the industry. I'm not gonna go into that because we're gonna show you today, but it's mind-blowing what artificial intelligence can do for the industry, and we look forward to show you that a little bit later today. With that, I hope I have conveyed that our mission is to empower the industry with clean process heat. That's the reason for our existence. And we believe that the world is gonna be powered by solar and wind, so we need to store this, to be able to clean the heat for the industry. This mission is not possible without people. It's enabled by our people, and we are engineers, we are economists, we are young, we are older, we are 40 nationalities, all languages spoken in our office, all weird interests and personalities, but we have one thing in common: all of us have come to this because we want to allocate our professional career to a bigger purpose. The awesome tech that we develop and the profitability that we create for our shareholders need also to be channeled to solve a problem for the world, and that creates a very beautiful energy in the company. Everyone here is prepared to go the extra mile, to do what needs to be done, to solve our issues, and then we take a rest when we are able to do so. And now, finally, we are assisted by artificial intelligence, which is boosting the Heatcube. So with that, Magnus, I think we are ready for some tech talk! Yes, we are. Camilla, thank you. Thank you. So, two questions. One is people and culture, I know means a lot for you, for everyone at Kyoto Group. Why did you join? Why did you come on this journey? Because Kjetil Bøhn called me and told me about thermal energy storage. That's an investor who made me aware of the thermal energy storage, and, suddenly this was on my table as this is a big thing, and no one is talking about it. So I followed my passion for this clean tech, when I left Hydro 15 years ago, when Hydro decided to put their renewables on hold at that time, with the financial crisis. Hydro decided to safeguard the aluminum business. By that time, I had been 2 years looking for renewable energy for Hydro, so I was not ready to put that on hold. I decided to follow that, and that throw me into the startup world, because that's where clean tech is. Then I was made aware of the Thermal Energy Storage, which is the big thing, and no one is talking about it. Nah, that's the thing. We are talking about it. N ow we are. So if you want to understand more, and you have more to say about that, you can turn on one of your 40+ speakers, everyone, and listen in on a podcast with Camilla, which was made available a couple of weeks ago, and she talks quite a lot about this and some other interesting stuff, I would say. Before I let you go for now, Camilla, I have promised to make this a bit more understandable and fun. So I'm building a house, and I need a smart water heater. And what you're doing, in my view, is a bit the same, isn't it? You are fueling up that water heater when it's, you know, smart to do it, and then you're. The possibility is to let that heat out, either into the grid or into the production value chain, when, you know, that's beneficial. Is that a way of putting it? T hat's exactly it. But you don't need 400 degrees. No, I don't need. So- I don't need that. B ut the industry need 400 degrees, and therefore we do salt instead of water. Apart from that, it's same, same. So there you add a bit of salt. We add a bit of salt. Like, you know, you add a bit of salt. Yeah. Okay. Thank you, Camilla. So, now we'll really sprinkle on the pie with the salt and pepper, I think. We have at least two people coming up here now, and they have a lot to let you in on, because these two guys are working with technology, and that's what I love, right? But I think probably also you are interested in hearing more about the Q2 technology. And that's what you're gonna hear now for the next session. Before we go into that, I just want to mention that we are here at the top of the Munch Museum on the 12th floor. If something were to happen, we have not been told of any fire drills today, but the emergency exit is there. And please don't stop for the view if that would happen. And secondly, this is all about steam today, but those of you that's on the stream are able also to ask questions. So please feel free to ask those questions while we go along, and we'll try to pick up at least a few of them during the capital markets day. So okay, please welcome. Now, there's two guys, as I said, Bjarke Buchbjerg, the CTO, the Chief Technology Officer, and Gustavo Zaera, the head of digital actualization. And we start off with Bjarke, and then he will leave it on to Gustavo. So, please give Bjarke a warm welcome. Thank you very much. So I need to get my pointer. I will start out by quoting our chairman, Eivind Reiten: "Seeing is believing." Now, I'm gonna show you our Heatcube at Norbis Park. Heatcube is real. It's there. It's on site. It's commissioned. Design values are proven. They're tested. We have verified them. We have done performance testing together with our client, Aalborg Forsyning, who's driving the Heatcube at Norbis Park. It's proven. Technology is proven. It's been a very, very big process over the last two years, and this has been driven primarily by our fabulous project execution team and also our client at Norbis Park. What they've been through, doing this for the first time, has been extraordinary, and I think everybody in the company knows that. This has been a big thing. Why? Why did we make Heatcube at Norbis Park? Of course, we need to prove our technology, but that's actually not all of it. It's actually only a small part of it. So when you do a commercial demonstration like this, you actually build your company. You build your company by building your demonstration, building your technology, building your product. First of all, you need to be in control of your engineering. You need to be in control of the engineering that goes on site. You need to order it. You build your supply chain. You find the good suppliers and partners that you're able to work with, and you also find the ones that is not that good to work with. You get to select them. The project execution is built on what we have done here at Norbis Park. All the experiences, all the efforts that we put into this, is built based on this. And now that it's commissioned, it's installed, and it's handed over, it is actually becoming our most important sales tool. I can tell you that because I've been there a lot lately. I don't mind because I've lived 10 years in Aalborg, but there's a lot of people there coming and seeing it. And again, it's seeing is believing. It's a completely different way of it's understanding the technology by being there. Because of our excellent collaboration with Aalborg Forsyning at Norbis Park, and also the way that we put up this contract, it is also becoming our test facility for future. We have a full size commercial unit here, where we can test future pumps, heaters, valves in full scale. It's also the absolute perfect place to build our digital venture. We are connecting to this. It's connected as we speak. We can try, we can fail, we can do things together with our client, also because of the good collaboration that we have here. This is our playground. It has a lot of value for us. So this is what we built. It consists of six storage tanks. You see them here, five of them filled with molten salt. In the back, you see a transformer building. This is where we get the connection from the grid into, and it distributes, it distribute the electricity to our Heatcube. The primary off-taker of the electricity is, of course, our heater. It's over there. I think I can point. Here you go. And that's taking the heat in, that's taking the electricity in, transforming it into heat that goes directly into our molten salt, back into our tanks. When we wanna discharge here, we have our steam generator. So we take the salt, make steam out of it, and then we send it directly to the bottom, where it connects with district heating and transfer the energy from steam into district heating, and it serves the municipality of Aalborg. Next to it, we have the heart of the system, our pump, that pumps the salt around, assisted with a compressor to make sure that we have a pressurized level of air inside of our system. And over here, we have the brain, the Battery Management System that we are also working with now on getting into cloud. Good. On site, we have done a lot of testing, and I'm gonna talk to you about the two most important ones that we have done on site until now. That is round-trip efficiency testing and our qualification for the power market. So round-trip efficiency. What is round-trip efficiency, besides being a state of how efficient your product is? I can tell you what it is for us. It's the total amount of energy discharged from Heatcube, divided by the total amount of energy used to charge it in one cycle, one charge and one discharge. So total amount of energy discharged, divided by total amount of energy absorbed by the system. Okay? I'm gonna show you one of the tests here. This is real data. This is from site. This is one out of several tests that we have done. And this is a graph. Okay, we have a graph here showing us storage capacity, 2 MWh, 4 MWh, all the way up to 12 MWh, as function of real time. That meaning the test is starting out at 9:20 here and continues all the way through. We're gonna see two lines coming up in a short matter. One is white, representing the charging, which takes the storage level up, and one discharging, which is orange, taking the discharge, taking the discharging down to a level so that our storage capacity is low again. Okay? Now I am switching into our operator because actually, what is happening on site is similar to what I will be doing today. This system is fully automated, meaning that you press a button, and then this happens. Okay, so I get told now by Aalborg Forsyning, "Bjarke, operator, please charge the system." And I do that, and we charge with 5 MW, all the way up to approximately 10 MWh here of charging. And now I need to discharge it very fast because this is a round-trip cycle, so I don't wanna hesitate to do that, and I will do the same again. Now, it goes down with a little bit more than 3 MW, continuously down to the lowest point that we can get of discharge. Okay, it's charging completely linearly up and also discharging linearly down. This is a stable condition. What you have over here in the end is then the amount of energy that you have lost on this. The amount of energy lost is thermal heat losses through our tanks, through whatever we have that is in contact with the atmosphere, but it's also including heat losses in our transformers, pumps, valves, that we're using energy to open and close. Our battery management system also absorbs energy. So all of that energy is, of course, lost when you do that. Based on these tests, and based on a lot of simulations that we're doing with our commercial Heatcube, we now increased the round-trip efficiency from 90 to more than 93%. This is important. This is a direct effect of us being able to test and verify our technology on site. Secondly, we did a power market test. A power market test to qualify for the frequency regulating market in DK1 in Denmark. But what is the frequency regulating market, actually? I'm not gonna tell you why it's important, Tim will come back to that, but I'm gonna tell you what it is. So it's a market that is put in place by the system operator, the one that controls the grid, to make sure that the grid level always stays at 50 Hz. And that means when it stays at 50 Hz, that there is a match between the amount of energy going into the grid and taken out of the grid. So, now, Aalborg Forsyning have Heatcube installed at site. It means that they can now say to the system operator, "I have a flexible unit. I have a flexible thing on my site, a Heatcube." They don't know necessarily what it is, but now they do. "It's on site, and we can take away energy. We can down-regulate your grid if you need it." Okay? When they then tell Aalborg Forsyning that this is needed, we will then take the energy off. I'll show you how we do it in a short while, but then also this energy will come at a very, very low cost. Sometimes even paid for it. Many times we get paid to do it. And that's how we can supply the Heatcube with cheap energy prices that can then supply district heating to Aalborg Municipality. Okay, so this time I'm gonna show you one more function, and this one is gonna be a little bit more tricky, but. We have two y-axis now. One is charging power here, so that is the amount of energy used by our electrical heater, 1 MW, 2 MW, 3 MW, 4 MW, all the way up to 5 MW. And on the other side, this is the resulting salt temperature after our electrical heater. Okay, it goes into the heater cold, comes out at an elevated temperature. Okay? Again, I'm switching into operator mode. Now, I am notified by our system operator that I need you to down-regulate. I need you to take away energy from the market. There is too much renewables coming in, we need to offtake some. Please make us stabilize the grid. And I will do that. So I will, again, simply just press a button. And what happens here, you'll see a little bit of lag time in the beginning, and that's because the system starts by finding out which tank should I charge. And it looks through and it finds the most optimal one to start to charge with. Then we align the valves, the right valves open, tch, tch, tch. The heat pumps starts to pump the liquid around, and as soon as we have met the conditions that we put in place for charging, the heater, whew, shoots up to 5 MW and keeps it here at a stable level, in this case, for 9 minutes, whereafter the system operator tells us, "Please shut it down again. We are in control again," and then it's down, and we put it into steady state mode. The resulting molten salt temperature is seen here. So you can see when we put energy into it, the temperature of our molten salt increases in a nice and steady way. Our set point for NJV, for Norbis Park Heatcube, is 450 degrees. We don't get to that all the way to that point yet because we shut it down before here, but we end up at 415 degrees and stops there. We have done this test alone, and we have done it together with Energinet, the system operator. Heatcube at Norbis Park is now qualified and approved for the manual and automated frequency regulating market. This is the first thermal storage of its kind ever qualified for this. We can work now both on the wholesale market, that's the day ahead and intraday market, but we can also work on the frequency regulating market. And if there is one thing that is uncertain in the future is, how are the energy system going to look like? How are the products gonna be? Where will the volume be traded on the energy market? And that would be different if you're in Denmark, Germany, Hungary, that's gonna be different. What's common for all of this is now, Kyoto will be able, with Heatcube, to enter into the market where you find the absolute lowest electricity prices to charge with. Doesn't matter if they're wholesale or if it's the auxiliary market, we will be able to work on both. And that makes Heatcube a future-proof and future-safe technology to implement for our clients. We can promise them to always find the cheapest electricity prices on the market. Good. Now, we have looked into the tests and the results at Norbis Park, which is part of the reason why we say this technology is proven. And now, let me switch our focus to our commercial product, Heatcube, the one that we're introducing to the market, the one that we are, that we are now selling. It looks a little bit different. So our Heatcube at Norbis Park, as you saw, had horizontal containers to store the salt in. Now, we have flipped it up, so it becomes vertical. In this system, we have 8 of them installed. It's the same as what we have for the KALL project. Six-seven of them are with molten salt, which give us 56 MWh of storage. So we have made the system more energy dense, lowered the footprint compared to if we were to have horizontal tanks. We have also increased the charge capacity from 5 MW to 10 MW, and on the storage—on the discharging side, which you see coming up here, we have a representation of a steam generator that is able to discharge up to 7 MW thermal on this. Our system has been opened up. It makes more accessible compared to what we have there. It's been designed now for much easier operation. It's just been designed for much better access to maintenance and to accessibility of the plant. The system primarily consists of steel, salt, and we produce steam. So this is how our product look like. Let me tell you actually how it works, because sometimes it's actually quite simple to understand. So what we do is that we take cold, molten salt, we take it through our electrical heater, and we heat it up, powered by renewables, back into our storage. Then we have it charged. When we wanna discharge, we do exactly the same, just into a steam generator. We get feed water in, and we produce steam for the client. We put the molten salt cold back into our tanks again, and now we are discharged. The beauty about our system is that those two processes are completely separated, meaning that you can deliver 24/7 steam to the client and charge in the 6-8 hours where you have the cheap electricity. Good. One thing that is common for Norbis Park and for Heatcube here is that we kept true, and we kept our, You could say we kept true to our design philosophy of a product. This is a modularized and standardized system, meaning that all the components that you see here is one design. If you need more storage, we put more tanks. If you need more charging, we put more heaters, and they are identical. That enables serial production, and that's how we drive down the cost of this. Another key advantage of serial production and mass production of things is that it also makes the technology fastly deployable. Ever since we started this out, started out from focusing on thermal energy storage, we have a clear and very ambitious target on CapEx. We have been doing this through the design philosophy, through the engineering, but we're also doing more. Camilla just talked about our partners on the supplier side, and this is absolutely crucial part of our chosen strategy on bringing down cost. You can choose to work together with clients, with suppliers, saying, "Now, I need one of those, and I need one of those." But if you really wanna bring down cost and make the right product, you have to sit together in the same room. You have to work together, you have to take you to site, you have to absorb all the learnings together in a way, and that calls for a partnership, and we've done that, and we are still partnering up with more. Kyoto have, for the last two years, increased quite a lot in size in terms of people, and a lot of IP and a lot of intelligence is coming in. We are taking patents for the future. We are taking the patents that makes the difference for ensuring that Kyoto will be the leading technology in thermal energy storage also in the future. So all of the learnings from Norbis Park has been put into this. It makes it look a bit different. So let's just look at the key features of this product. We can charge with a charging capacity between 0.5 and all the way up to 30 MW. On the storage side, we can supply anything in between 16 and up to 120 MWh. On the discharging side, anything in between 1.5 and up to 20. And if you multiply these numbers with each other, you find out that we have more than 120 different configurations of the same product. That gives us an absolutely unmatched a preference towards our clients, because we can match exactly what they need, with still the same products. We discharge in form of steam, but because of the modularized approach that we have had for this design, we can take away the steam generator and replace it with a new heat exchanger, which makes hot air. It could be used for drying processes. It could also make oils, thermal oils, that could be used for chemical industry and that's without changing the rest of the product. We deliver steam temperatures anywhere in between 133.5, and all the way up to 400 degrees, at a bar level between 3-40 bar A. We do that by elevating and changing the temperatures of our thermal energy storage media, the molten salts, and we do it between 190, all the way up to 415. So let me come back to a couple of the important numbers that I talked about at Norbis Park. So, we now have a charge response time in less than 90 seconds, which is needed to go into the auxiliary market. It is actually not only needed that you have the response time, it's also needed that you can maintain the constant level of charging in those markets. And that means that we now are able to go out and guarantee a value of less than 90 seconds in response time, which secures the absolute lowest prices for our clients in their industrial decarbonization journey. We now have increased the round-trip efficiency from 90 to more than 93%, if followed by a service agreement with Kyoto. The elevation of the RTE has a direct impact on the business cases with our clients. It has a very positive impact, and Tim and Håvard will come back to that much more than in the later part. In order to guarantee this, we need to supply a service agreement, and we believe that a service agreement needs to be made with a digital tool. Therefore, we have decided to enter into a digital journey, a venture, where we're gonna create a data-driven and artificial intelligence-driven DataOps platform to give us that service that we need. Now I'm gonna hand it over to Gustavo to tell more about that. Thank you, Bjarke, for a thorough and clear go through of our Heatcube. We, too, believe that AI, artificial intelligence, will change the very fabric of our societies. Today, I'm here to share with you the steps that we are taking to position Kyoto and our product in the future energy systems with AI. The fourth industrial revolution is what we're currently experiencing. It's driven by artificial intelligence. As opposed to the former industrial revolutions that were more about producing goods at a higher speed, better quality, or transporting goods, there were challenges in the physical world that humans wanted to overcome. With the fourth industrial revolution, it's a technology that enables us and actually challenges our very human skills of cognitive skills, of knowledge sharing, reasoning, understanding, and it's a very, very powerful tool. We're seeing the start of it. The reason why this is happening now is because of three things: cheap sensors, fast and reliable networks, and unlimited computational power. The more data is generated, the more data that you need to analyze in real time, the more power, computational power you need, and this is what we have available today. This positions us, and now in the very beginning of the fourth industrial revolution, we see that this will be an advantage for business today, and it will most likely be, be indispensable for business tomorrow. I'm not here to give you a lecture on AI, so let's move over to what is relevant for Kyoto, which is the energy systems. Tomorrow's energy systems, we believe they will be powered by nature, which means that they will be weather-dependent and decentralized, consisting of smaller units, many more smaller units, that will generate vast amounts of real-time data. Now, real-time data is an expression for saying that data is generated continuously, nonstop, never ends, needs to be processed in real time to make the decisions that are necessary to have a flexible energy system. The players that will enable this in their products will have an advantage in the energy systems today, and they will be the ones that are not AI-enabled in the future, will most likely be excluded from participating. That's why we are taking the first steps to implement our AI-powered Heatcube. Now, Bjarke has showed you what Heatcube at Norbis Park looks like, and gave us a very good introduction on it. What we're doing now is that we're taking the real data that is being generated by Heatcube at Norbis Park, and we're using that to create awesome tools that are necessary to position the product, the company, and the product in this future energy systems. It is the most cost-efficient solution. We have chosen to partner up with Cognite, who is the front runner in the industrial DataOps platforms. Now, that's a mouthful, a DataOps platform. It's basically a platform that enables you to work with the data in a very efficient way and create applications on top of it that will help you drive costs down on operational costs, for instance, through predictive maintenance. I'm gonna go talk a little bit more about predictive maintenance in a moment. So we are taking the necessary steps to elevate the digital capabilities of our Heatcube. And we're also laying the foundation for being able to deliver the service contracts that our fantastic commercial team has now negotiated with KALL, and also for future customers. So we are ready. Now, here, who here owns a Tesla? Raise your hand. There's a few of us. The reason why I'm asking this question is because Tesla is a fantastic car to drive. What Tesla, it could be arguably the best car out there. I'm not gonna make that statement. But they have a unique user experience. From the moment you're thinking about buying the car, through their digital systems, to the getting the car delivered, serviced, used every day, you get upgrades, everything is done to create a great user experience. And why is that? Because the commitment from the user to stay with the brand becomes very high. We're taking the same approach to the users of our Heatcube. The customers, of course, but the users. And the users of a Heatcube are the operators. They are the ones that are going to use the best tool they're gonna get to do all the work they need to do to reduce OpEx cost and to make this product work and give most value over its entire lifetime. We've been talking about that we spent two years establishing and building Norbis Park, Heatcube at Norbis Park, but it's gonna stay there for many, many years, for decades, and that's where reducing the OpEx cost is important. So let me introduce Henrik. This gentleman on the screen here, he is our plant operator. I'm gonna show you a demo of what he does when he needs to investigate what's going on on the Heatcube. An example of predictive maintenance. So Henrik here gets a notification from the system that informs him that a particular part of Heatcube needs his inspection, it requires his attention. He is not on site at the moment that he gets this notification, so he will go into the Digital Twin and do his work from there, and then inform some of his colleagues on-site on what to do. So now we will demonstrate a concrete example of what that looks like. Now, before I. This is our, this is a recording of how Henrik uses the tool. It's not a simulation, it's real data coming out of Norbis Park. And just like Bjarke said, seeing is believing. That's why we want to show you how this actually works. Bear with me, it gets a little technical, but it's a short and good demo. So he will go into the Digital Twin. He would search for the particular piece of equipment that needs his attention. In this case, it's the inlet valve of tank six. Okay, so tank six, we'll see where it's placed later. Inlet valve is basically the faucet, the valve that actually controls the salt flowing into the tank. That's the instruction he that's the message he gets from the system, from the AI, that collects vast amount of data from all the sensors we have on Heatcube, stating that there's something weird going on here. You need to take a look. He will then. We will see AI in use, we will see AI in action. How is artificial intelligence actually used here? He will search through a 90-page manual in a matter of seconds and get the answer on what to do, and then hand over the work to somebody on site. Okay, so are you ready? Here we can see the three-day representation of the Digital Twin. He goes up to the search to see where the inlet valve is for tank six. Now, with a Digital Twin, you're able to see not only the outside of Heatcube, but also the inside of how things work. This is important when you're going to do maintenance work on a particular piece of equipment. He goes over to a canvas, where he asks the AI about how to do the maintenance steps for this particular valve. The AI extracts the steps, and these are not listed like this in the manual, just to be clear. And puts a sticky note with instructions on how to do this, contextualized with all the other relevant technical documentation, that he hands over to his colleague on site, Jens. Jens will then get a notification that there is a task for him here. Go in, follow the instructions, and solve the issue. Now, just to emphasize, nothing had gone wrong here. This was just something that needed some inspection. So by doing predictive maintenance, we are reducing the potential unscheduled downtime. Basically, we want to have 100% uptime, right? If you don't count in the service times. We want to be as close to 100% as possible. Maybe 100% is not possible, but as close to it as possible. And doing preventive maintenance is a way of achieving that. We're not the only ones doing preventive maintenance with AI. This is something that the front runners are picking up on. And we have an example that was published a few weeks ago on Digi.no, where Kårstø, this is a gas manufacturing plant outside of Stavanger in Rogaland, here in Norway. They saved potentially EUR 30 million, NOK 300 million. This is a plant with 19,000 sensors that generate real-time data. So imagine a sensor is reporting a value every second, and then you have 19,000 of them all the time. This is impossible for a human being to analyze in real time, so that's where you have AI. They have implemented their own AI. They are. What happened is that the AI identified a correlation between several pieces of data and said that, "This doesn't look right." Just like Henry got a notification, the operators at Kårstø got a notification from the AI, saying that, "There's a deviation here that you should look at." And so they did. They discovered that there was metal fragments in the oil of one of the central critical equipment, a turbine. And by early action and taking, making, cleaning the oil, replacing the turbine, they avoided downtime of the plant, saving NOK 30 million. Again, the AI assists in advising what's smart to do now to avoid a potential failure. So there is no doubt that predictive maintenance is good for business, good for the customer, and good for business, good for customer. So, before I round, I end my part of the presentation. Bjarke has explained to us that Heatcube is ready for any market, for any energy system. Now, we have seen that we are taking the steps that we're ready digitally to implement this into energy systems and to do preventive maintenance to reduce OpEx cost, which is a long over lifetime of Heatcube. So this makes us ready to deliver on the service agreement with the KALL contract that our fantastic commercial team has negotiated recently, and also for future customers. With that, I end my part, and we will hear more about the commercial side of things after the break from Tim, our Chief Commercial Officer. So that's it. Thank you. Thank you. Thank you. Thank you. Bjarke, will you join us, please? Thank you for the kind feedback. I think now we've deep dived into the future and the tank of salt. It is, isn't it? A lot of salt. I have a few questions, Bjarke, but before we go there, going back to my heater at home, the smart one—Should I get one of these? It's me. Who is this for, Bjarke? That's the question, because now you have the 2.0. And what interest do you get for this new Heatcube? I think it's. I just had this in my mind a. I think if anyone of you at home has. Is anybody having, like, an oil-based boiler at home? No? Why should industry have that? Why should they have it when we don't? It's absolutely insane. It's the absolute same thing. This is just a boiler for industry, and it makes no sense that we should have 90% of all industrial heat produced with that. Nobody here at home would do. Nobody would go out and buy a boiler, an oil boiler at home now. You would. All of you will install a water electrical water-based cooler, heater at home. So I don't see why anybody else should do differently, also industry. And, Bjarke, just to fuel that thought, last year, we all realized that the world we live in is a bit—it's fragile. The invasion of Ukraine showed us that gas and our dependency across Europe on gas is perhaps not the way to go, is it? I think it's. It was, it was quite interesting. You can talk much more about, with that with Tim, but what is interesting is that when the invasion came and gas prices went through the roof, we were we had a lot of people in the phone, a lot of people talking about, "Now we wanna decarbonize." And then all of a sudden, when the electric, when the prices came down again, it started to calm a bit down. The people that wants to do it, we still talk with them, but all the people that were scared because of the high gas prices, they have now settled a bit down. But I'm just guessing, don't you think it's gonna happen again? In a world where we are, where we're so fragile to energy prices, why not use something that is renewable, that is continuously being produced, even if the war is there or not? I think for us, it's really interesting to see these dynamics, and I think more and more gets the understanding of this, Magnus. It's, this is future-proofing. This is future. It's an insurance for your production of energy for the future. I t is, I would say. Bjarke, you talked a lot about performance- Yes A nd RTE, roundtrip efficiency, and the charge. So, in a few words, why is this so important? So it's. I think we'll come back to that, but it's actually the same as cutting down the cost of electricity. It's exactly the same. It's just making electricity cheaper. That is why it is very important, and I think I would like to just emphasize this again. This is not a guarantee that we go out and say, "Now we have 93." No, we actually guarantee this. It's part of the way that we do our contracts, and I think that is absolutely crucial to note here. Okay, so we have several questions from the online audience. I'll hand one or two your way, Bjarke. First one is: "Can the load for frequency regulation be flexible and not fixed to 5 MW? Yes. So the energy market is gonna change. We have not talked about that today, but we have talked about it before. The energy market in Europe is going to change, and one of the changes that is going to happen is that the amount of energy that you bid into these markets is gonna vary, and it's gonna be much lower. So most likely, in the beginning of the next year, we will be able to bid in 1 megawatt at site, and because of the design that we have chosen to do, this is thyristor control. It's basically controlled in the same way that you have your lighting at home. It's like turning it up and down. We can regulate how much energy that goes into it. We can turn it down and say, "Now you need only 3 MW," and then we can just turn it down, deliver 3 MW. Now you're dimming. Now I'm dimming. Dimming. Dimming. I can dim, I can dimmer my heater. We have a dimmer on our heater, so it's exactly what we have. Okay. And there is another question. I'll just read it out so you can take it. Yes, please. Does the 7% loss ratio " You pointed towards the loss ratio. Does that include any power consumption, not just in the term of heat, that the system might use? Yes, it includes everything. We don't have any interest in hiding things here. Our roundtrip efficiency is calculated based on all the inputs that we have. Just to remember, we were in control of everything from the transformer to the connection to the district heating. We have taken care of that at Norbis Park. We got a electrical wire in. It's quite big ones, but we got it into our system, and from there on until we deliver a district heating to the system, we are in control of that, and we know about all the things that is in between. One of the things that is, of course, taking away some of our energy is transformers. Transformers has heat losses, pumps have heat losses, and all of these things are taken into account in our calculations. Before I move on, briefly to Gustavo, I have one question related to the scalability of this technology and the standardization, as you mentioned. Why is it so important that you're now, you know, building the Heatcube based on standardized modules, and it's possible to adapt to the specific need of each customer? Let me give you a concrete case, Magnus. It's— We're talking with a lot of different customers about their needs, and— Some customers, they say, "Okay, Kyoto, which Heatcube? We have this requirement for heat production, we have this electricity prices, what should the optimal setting be for us in terms of storage capacity and charging?" And so on and so on. And we come back with that, and then they say, "Okay, but we have an internal policy that we, we need to have more safety on our side, so let's just add a couple of tanks." And it's like, "Fine, we can add a couple of tanks." And then we have other customers saying, "No, we just want the absolute bare minimum." So it gives us the flexibility to give the customer exactly what they need in their setting. They can incorporate safety into their system, and they can also scale it down and give just the pure cost that they would like to have. So it gives us the possibility to do negotiations and to give actually the best product to the customers. That's what it's all about, I understand, Gustavo. The customer experience, the user experience. Did you put your hand up, Bjarke, when he asked about the Tesla? Yes. So, that's like having a Tesla- Mm. with an extremely long range Yeah. If that's what you need. And Elon are able to just, you know, pump up the range if that's what you need. The standardized, modularized way of giving the customer what you actually require, right? Mm. I'm talking about the heat, the cube, the Heatcube now. So, Gustavo, AI, we hear a lot about it, and now you've teamed up with Cognite to create the digital twin. You showed us exactly what it meant for Henrik, who's, you know, looking after how everything is working. Why is this an important milestone for Kyoto Group? To partner with Kyoto, but also to build the digital twin and to make this part of the journey also move forward fast? Right. We would have to see how a plant operator works without a tool like this. It means that they would have to be on site, most likely. They would have to go—so transport themselves to be on site or, or be on site. Physically. Physically. Mm-hmm. They would have to inspect the BMS, that has a lot of information. By all means, we have built a fantastic BMS, a battery management system, that has- All of you understood that, right? That makes sure that the Heatcube runs in a safe way and that it runs as expected. So he would have to go to the battery management system and look for what's going on. But we don't get the early notification from the battery management system. The battery management system has fail-safe triggers, so when something is about to go wrong, it will notify us and take the appropriate actions so the Heatcube operates as expected. While what we have here is that we can get an early notification based on all the data that is available from Heatcube. So for the operator, it means that they are being able to work remotely, spend less time, and do things preventively. So, in short, it means it's having a Heatcube almost on autopilot, is it? But it's, it. A human will be, it's an assistant to a human. We'll see how the future goes, but for now, it's a very, very good assistant. Visualizing everything is important due to. Why is that important? I n the case of Henrik, he knows the every bit and bolt of Heatcube at Norbis Park. But as he's transitioning that over to his colleagues at Aalborg Forsyning or Norbis Park, they would have to be able to perform the work as efficiently as he does. So onboarding new people to work the same way that he has would take much less time, and it wouldn't. I t would take much less time. So the handover of knowledge from one person to the next will take much less time because the tool is so advanced visually, and also every—all the data that is in it. Mm. Okay, before I let all of you go for a short break, Bjarke, I have to ask, when you sit down in your Tesla, driving to work, or wherever you're driving, what do you feel? What's the sensation you have when it comes to now, all of you guys working on this technology; it's proven, isn't it? Yes. How does that feel? Translating this for us into our Heatcube, we feel the same passion for our product, and we are developing a product based on those feelings that we are having when we get the experience from this. This is a proven technology. Also, lithium-ion batteries has been proven for 30 years. The reason why we are sitting in a Tesla now is because somebody put it into serial production and decided, "This is what we're gonna go with." That is what we're gonna do with the Heatcube. Okay, so everyone, buckle up. Now, the Heat Cubes are coming your way, on the highway or somewhere else. You never know, but it's coming. I'm quite certain about that. So, for now, we're at the break time, we're a bit behind schedule, so I suggest we do 10 minutes break. The break is out there. There is some coffee and, and refreshments out there, and the toilets, by the way, the restrooms are also around the corner. And, see you back here in 10 minutes. Thank you. Thank you very much. Y ep. Everyone, everyone, the show must go on! So please take your seats. Thank you. Thank you. We're a bit behind schedule. This is so encouraging, and fun, and interesting, isn't it? Yes. Can I hear you? Yes. I didn't hear you. Yes! Thank you. Thank you. Thank you. It's not just me, is it? I t's you also. That's great to know. So, we will continue, and this next session is an encouraging one because we're gonna hear from the Chief Commercial Officer, Tim de Haas. And he's gonna tell us a bit about what's cooking, what's happening, and how is the interest and the commercial potential and the business developing. So, Tim, take it away, and please give him a warm welcome. Hello, everyone, and welcome to the second part and H2 of this Capital Markets Day. We are very excited to share the news on the commercial side with you and give you a particular focus on, and details on what have we done with the KALL Ingredients project, but also what are the next and upcoming projects that we are working on very intensively. But I see a lot of nice new faces, and I really welcome you very warmly, and therefore, I would like to take a second and step back and see what are the real value propositions that we come to our clients with and you have heard the technology around it, and the technology is obviously the base for what we can offer and how we can serve our clients in the best possible way. Let us understand the two main driver a bit further. Number 1 is the typical load shifting, and what we understand with load shifting traditionally, is that we charge the Heatcube in the hours when electricity is very cheap. In these hours, the share of renewable energy is particularly high. So we take this opportunity, charge the Heatcube, and then discharge the electricity or the power through the steam generator that we have in the, during the hours when the electricity is expensive. That's a traditional way of doing load shifting. But what is a special thing about the Heatcube and the, the thermal energy storage solution that we have built, is that we can also do load shifting from day to night. And this is particularly interesting for areas where we have off-grid PV installations and 24-hour needs for steam. Then we take the power during the day from the sun, charge the Heatcube, and discharge it during the night. This is a very important aspect for us. Now, what does it mean commercially? Commercially, we have looked at it in a way that we used the Heatcube, put it into the models of previous years, in particular, worked together with one of our energy partners called Inspired, who's an AI-based energy trading firm, out of Austria. And we looked at what would an industrial player have saved in the recent years in Germany. And the result is that the electricity cost, the energy cost for this industry player, would have been more than 30% lower than the base load prices that have been in the market. So just by utilizing intraday and forward planning on an AI-based with the technology that we can offer, the energy prices are going down significantly. The second value driver is what we have been talked about a lot from by Bjarke, is on the grid balancing, utilizing the Heatcube as a grid balancing asset. And Bjarke pointed that out very nicely, that the grid needs to be on a 50 hertz level, but due to the increased availability of renewable energy, there is a much higher fluctuation on the supply side. That needs to be balanced out. And you balance this out by putting assets into the grid, like the Heatcube, that can ensure that the grid is in balance all the time. Now, again, what does it mean commercially? We have understood that we can do it, technology works, everything is fine, we are passing the test by Engin et, but what does it mean commercially? When you look at the European market today, you get paid by having an asset in the grid per MW capacity, and the prices, especially in the summer, they are between 20 and 60 EUR per MW. So if you have a standard Heatcube with a 10-MW charger, you're earning 200-600 EUR per hour by doing nothing. And this is an important aspect for the business case because we are helping to reduce energy cost, or we are able to offer better prices when we are looking into service agreements that we have that we are offering to the industry. So this is a significant benefit that we bring by not only introducing and making green steam, producing green steam, but reducing energy costs. And that's what the market, what the industry is looking for. They are looking today at possibilities to do this, and even with any price that we have seen today or over the last years, we are able to provide green energy at a lower cost compared to what the industry is used to today. If you're looking at. We have been talking a lot about grid in the past, and it's important to recognize that there are challenges, that the grid operators are not yet fully offering all the flexibilities that we can meet. But if you read the newspapers in Germany today, and this goes to the, to the German friends that are probably online watching us, there has been now a policy change announced today, where the grid providers are opening up much more reduction in net fees if you can offer a flexible asset like our Heatcube. So the, the big giant TSOs that are not moving very quickly, and particularly not in countries like Germany, they are recognizing now, okay, there are solutions in place that addresses the problems that we have, and we can solve it. So this is very important. The second aspect for us to show you and to repeat a bit for the new people, is the way we are offering the Heatcube to the industry. And there are three different approaches for that. The first one is what we call heat as a service. In this case, we offer steam per megawatt hour needed by the industry. So the industry has basically no big capital investment expenditures in the beginning. They are only buying the steam from us, what they need for. And this is very interesting for companies that are, you know, focusing on reducing their CapEx these days, and it's a very good opportunity for us. In this case, we are partnering with project financing companies, who are helping us with the financing, the initial financing. And we are partnering up with energy partners, who are helping us to get the doing the trading, energy trading for us. The second avenue for us to get to the industry is to work in strong collaboration with energy suppliers that have industrial customers today. In this case, Kyoto sells the Heatcube as a heat, as a product to the energy supplier, and then the energy supplier signs a service agreement, heat as service, with their existing industrial client. This leads often into a joint go-to-market approach, where we are working together with the energy suppliers and approaching the industries together. They are coming from the energy side, we are coming from the technology side and partnering up as very strong teams. The third avenue is for industries that have their own energy management system, and they are basically controlling every asset that is on their premises. In this case, they want to own the Heatcube themselves. They buy the Heatcube from us, and they get support from us through a service agreement. These are the three models, and I'm explaining this to you because we are working actively on all three avenues, and we're gonna see now how we do it in practice. And this leads us to the commercial agreement that we have signed last week, which is actually a set of commercial agreements, and it all started roughly 11 months ago when KALL Ingredients from Hungary approached us. They learned from our technology, about our technology, and wanted to get to know more about it. KALL Ingredients is a corn processing factory in Hungary. They are. It's a 145 greenfield investment plant that is very focused on utilizing the entire raw material to produce liquid sugar, food, and pharma-grade ethanol, as aqua pet food. So it's a lot of different products coming out of the raw material. They're utilizing 100%, and they were super important aspect for them and their owners is to now switch to green energy to supply the plant. So they heard about our technology. They got very engaged in the discussions, and that led 11 months later, and a lot of discussions later, to the commercial agreement that we signed last week. It's for KALL, it's a 15-year contract that gives them a possibility to reduce their energy costs while moving away from fossil fuels, from the gas boiler to green energy. How did we do it? It was extremely important for us to have a strong setup on our side, strong partners. We have established a legal entity, single-purpose legal entity in Hungary, with two partners. The first one was mentioned by Camilla before, is Kyotherm. Even though the name suggests it, but it's a completely independent company with exactly the same purpose-driven mindset as us. They are backed by public investment funds in France, as Edmond de Rothschild's asset fund. So very strong backing from solid partners, having supporting Kyotherm in these times with their vision to decarbonize heat. Kyotherm has been investing in various types of heat projects, but they got extremely engaged from the very beginning on our Heatcube and were extremely active and a very important partner for us in achieving this goal to sign the contract with KALL. The second partner was a local energy trading partner, and we didn't choose anyone, we chose Energiabörze. Energiabörze is run by the former CEO of the Hungarian TSO. So they are in the Hungarian energy market since more than 30 years. They have a lot of experiences. They know exactly. They have followed the development in the Hungarian market, and they were spot on when it comes to how to utilize the Heatcube from the very beginning on. It's extremely good collaboration with both partners. We have set up the Heatcube Tisza company, which is a single-purpose company in Hungary. Kyoto Group is part of that company as a shareholder. We have developed quotas within that company without having put equity into it. And we're gonna benefit moving forward from dividends that are gonna be paid out by the company. Further, for us, what does it mean for Kyoto Group? Kyoto Group has signed two important agreements with Heatcube Tisza. The first one is a heat as a product purchase agreement for a 10-56-7 Heatcube. 10-56-7 means that it has 10 MW charging capacity, 56 MWh of storage capacity, and 7 MW discharging capacity. The price tag for this purchase was EUR 6.4 million. On top of that, we signed a service agreement for the duration of the agreement between Heatcube Tisza and KALL Ingredients. So it's a 15-year service agreement, and I'm gonna come back to you what that means a bit further. For these contracts allows the company, Tisza, Heatcube Tisza, to sign a 15-year agreement with KALL Ingredients and utilize being or gonna be able to utilize it as a balancing asset on the Hungarian grid. The capacity of this unit is more than 30 GWh per on an annual base, and with that, we're gonna save up to 8,000 tons of CO2 on an annual base. So the KALL Ingredients gonna benefit from reducing CO2, as reducing their energy costs. So this is a perfect setup for all four parties. It has been a journey to go through this, and I want to take the opportunity to thank everyone that was involved to make this happen. We did a bit of a groundbreaking work because all of these setups were the first time, but we have set up now a system that can be replicated. And we have, with Kyotherm, a partner who is extremely knowledgeable of our technology and knows what we can deliver. We have with Energiabörze, a local partner who knows the players in the market and has experiences with the particular demands there. So it will be always for us, a product sale to the SPV. We're gonna have service agreements, and we're gonna have dividends from throughout the entire contract period. So for us, it's a very important aspect to get these upfront payments as continuous revenues throughout the contract period. Now, let me spend a bit of time on the service agreement. Gustavo talked about it, and it's an important aspect for us moving forward because we are the ones that know the Heatcube. No one else knows how the Heatcube works, how it needs to be treated, so it's—we are playing an important part of making it happen over the entire time of the contract period. So, we are able to offer preventive and corrective maintenance services based on the DataOps platform that Gustavo showed you. We are guaranteeing a higher RTE throughout the contract period. And again, for those who are more interested in numbers, let's have a look what that means. If you're going from RTE 90% to 93%, you save 1.8 EUR per MWh, and this is taking an energy price of 50 EUR as a base. So if you have a higher electricity price, you would save even more. But let's assume euro, an electricity price of EUR 50 per MWh, then you save 1.8 MWh. Producing the same amount, and let's assume you're producing 30 GWh on an annual base, you save EUR 54,000. And if you multiply that with a lifetime of a Heatcube of 25 years, this has a significant impact on the profitability of a, of such an investment. So this guarantee this increase in guarantee RTE is not only a nice press release, it has tremendous. It creates tremendous value in the market and for the clients. For us as a company, it's obviously very good to have recurring revenues, which are generated through these service agreements. Now, that was it with the KALL Ingredients. It's gonna be work now for the project execution team, who has demonstrated with Norbis Park how excellent work they do. So the plan is to deliver the Heatcube at KALL Ingredients by the end of next year, and then being operational in 2025. What else do we have in our pockets? We have basically built up a pipeline over the last 18, 24 months, with a lot of interest coming from the industry on a continuous base. The more we are known in the market, the more interest we get. Our challenge right now is not to get any new accounts. We are a relatively small team. Our key focus now is to bring forward the ones that have developed furthest in the pipeline. You see that we are in close discussion with particular 4 accounts, which I would like to give you some more insights on. One important avenue for us is to collaborate with energy partners, as I mentioned earlier, and in particular with Iberdrola. We have announced that we have signed an MoU with them, where we brought 6 industrial clients that we have developed before to them, and to have a joint market approach with them, with Iberdrola, to, to, have, to supply green steam to these industrial players. In this case, we are selling the Heatcube as a product to Iberdrola and support Iberdrola with the operational work, for which we again get the service fee. It's a very interesting approach for us, because when we come with Iberdrola on the passenger seat, in a way, it gives us a lot of credibility to the industrial clients who are traditional, very conservative. So coming with a well-known and established partner like Iberdrola to them gives a lot of credibility to us because the industry sees, "Okay, this technology has been vetted by Iberdrola, so yes, we can trust it even more than if we are coming directly to the industry." Now, how do the cases look like? We have developed a lot of these accounts that we brought to Iberdrola, but we have also partnered up with Iberdrola on developing or providing green steam to the existing customers of Iberdrola. One of them is a pharmaceutical company who is utilizing steam for sterilization, and who are utilizing gas today, traditional-wise, to produce the steam that they need. In this case, we are looking at a Heatcube with a configuration of 10-32-5 to meet the demand of that particular site. We have two more cases that I'm gonna show you, and that they have been put in a very special situation because the EU created a public funding program that was adapted in Spain, with a clear focus to decarbonize industrial heat demand. So basically, a program for us. The special thing about that program was that it had, as a requirement, to have 75% of the electricity used coming from off-grid PV installation, and that's quite a bit of space that you need in order to fulfill that requirement. The parties or the industry players that we brought to Iberdrola, two of them fulfilled that request or requirement. So we have applied together with Iberdrola for the public funding program that will be decided on in Q1 next year. And the parties that we are talking about here is, for one, it's a paper factory, so they are producing paper in particular, hygiene paper, where there are gonna be a requirement for a Heatcube of size 20-48-10. And just for those who might have missed that explanation, 20-48-10 means 20 MW charging capacity, 48 MWh of storage, and 10 MW of discharge capacity. Magnus, you can ask the audience how many tanks they need for this. The third client that we are talking to, or that is, is part of the collaboration with Iberdrola in the very front row, is a pet food manufacturer, for which we need a Heatcube configuration of 20 50, 56 10. The last two, as I mentioned, are customers who are now waiting for the public funding approval, which we expect in Q1 next year. The fourth company that we are in very close dialogue with is a product, is an example for heat as a product that we are selling directly to the industry. In this case, it's a product sale to them, and we are able to support them throughout the lifetime of the Heatcube, providing them preventive and corrective maintenance. This company is based in Germany, and it's a corrugated cardboard player. Again, today, in a very traditional setup, utilizing, having a gas boiler on site, burning gas to produce the heat that they need to produce the beautiful cartons that they are producing. What they have, they have a very special setup. They want to be completely independent, so they are creating now their own PV on-site, both on the roof, on the site. They're gonna include a windmill that they gonna have as an off-grid installation on their site. And then, as a backup, they still gonna have the grid connection in place. And in order to utilize this renewable energy on-site, which is not connected to the grid, they need a Heatcube. So this is a perfect example in reality, that we have been talking to you for a long time. This is a perfect use case, how the Heatcube is used in the best possible way. The customer gonna move to green energy, and they're gonna reduce their energy cost in totality. Now, Camilla mentioned it, time is of essence, and for us to, the time between the first contact and the contract, we are aiming to optimize in the best possible way. At the same time, we are talking to big corporate companies that have their decision-making process, and that they last, unfortunately, for a certain period of time. But these companies are extremely eager to fulfill the commitment that they have made. When we're talking about BASF, BASF has made a public announcement that they want to reduce 25% of their CO2 emission by 2030. They still produce a lot of CO2. So they have set up a net zero technology team that is out there and scan new technology, existing technologies, and basically find the best site or best technology for the best different sites they have. They came to us, to Norbis Park, and the, I think the quote that is probably most used today, "Seeing is believing," was also very true for them. It was, they we worked with them for the last six months. They came to Norbis Park. They pressed the button manually to charge and discharge the Heatcube, and it was a very fruitful discussion. This makes a turning point, and we learned that also from the KALL Ingredients project, that when people come on the site, see that this is real, that the technology works, it's, it's a turning point in the discussion. I'm very proud and, and happy to share that the same happened, same visit happened with Novo Nordisk. Novo Nordisk is obviously the leading pharmaceutical company, best, highest, valued pharmaceutical company in, in Europe. They have an extremely strong target. They want to be net zero from operation and transportation by 2030, 100%. So they are in the big process of electrifying their sites, and in order to do that, and in order to do that with renewable energy, you need storage solutions. They need a lot of steam, so they need thermal energy storage solutions. They came with eight, with a group of eight people, to Norbis Park and inspected it, and we had extremely fruitful discussions with them to build the trust that is needed to make these changes happen. We are there to guide them and to support their needs, while pushing for the timelines to get the start as soon as possible. I'm gonna finish off with an overview about the markets where we are currently mostly present. The most of our prospects from the pipeline are located in Spain, the Netherlands, and in Germany, and then obviously we have good opportunities in Hungary besides the KALL Ingredients project that we have closed. With this, I wanna close off my part and hand over to Magnus, first of all. Oh! Thank you. Thank you, Tim. So, Tim, you let us in on what's cooking the pipeline there, and you also finish up with the map. I wanna start there briefly. So, you have highlighted at an earlier stage that Spain, Germany, the UK, but also Norway and Denmark, has been important markets. But now we see movement in the Netherlands and obviously in Hungary. What's happening, Tim? Hungary fell a little bit into our laps. So that was not. That went out of the clear strategy. But one important part for our strategy is to be flexible and to take opportunities when they arise. It's, I think, it's an extremely important aspect for us to have a strategy, follow the strategy, but have enough room left and right to act on opportunities that came up. So that's an important aspect for us. It did, it took 11 months? Yes. U sually it's nine months to create a child, isn't it? This, it's probably a very big one. I haven't asked you a question yet. So, do you have more babies like that coming? No, I mean, the four, the four next babies we have demonstrated, And we have, I think the pipeline is very visible, that we have more babies in the pipeline, all coming from the same mother. Which is, which is, which is. Mother Earth, that is. It's for the Earth. Yes. But we are basically. I mean, the beauty of it is that we have modularized the technology so that the deployment can be done faster than human beings can be born. Oh, yeah. Or can be created. Okay, so actually you're speeding up the pregnancy process here? Yes. Yes! Yes, yes, yes, yes. So behold, behold, everyone, this will go fast. So, we have got a question, Tim, before I let you go, and I'll read it out, so you also are able to just. You, you touched upon the German cardboard producer, manufacturer, and they, you know, go into solar, go into wind off-grid, and, and they wanna exchange the gas assets that they were using. So the question is: How have you considered to use the Heatcube in combination with the steam turbine to substitute gas peakers from the system? So if you have a turbine. Mm. Typically, then you talk about moving it back to electricity. Yeah. And. So. I mean, I don't know exactly how the question is meant, I have to admit. Mm. If you're, if you're basically talking about taking the steam and then adding a steam turbine to produce electricity? Yep. Yes, we have thought about it, and we have been working on it. I mean, the physics are the physics, unfortunately, in that case, and the efficiency goes down. Mm. So, uh. Quite, quite a lot, doesn't it? It goes down quite a bit, yes. Mm. We have seen cases where it still makes commercial sense. Mm. So technology-wise, it's possible. We are relatively, you know, we are in the focus of producing a Heatcube that is standardized and delivering steam to the industry. Mm. We could do so much more, but the success, the, as we see it, gonna come from being concentrated and being focused on what we are, what is our core for now, and then expand further down the road. Okay. So before we move on, all of you here are also able to ask questions. I just wanna highlight that. I have a microphone. We're able to go through. We'll have a Q&A when we are through the presentations. Tim, do you think we will see babies all across Europe? Yes. Yep? Yes. Yep. You think so? Yes. Yep. We are a multinational company. So I'm not worried about that for a second. Okay, so Heatcube baby is coming, everyone. Okay, so thank you, Tim, and Thank you P lease give it up for Tim. We move on, and we're a bit eager to hear, as always, during these capital markets days, you know, and this is a bit different, isn't it? I mean, perhaps many of you have been to the typical traditional capital markets days. Have you? You know, at Hotel Continental, eating some food you only eat at Hotel Continental, and listening to presentation after presentation? But it always involve the guy who's coming now, not the guy in person, but the role, that is. And that's the CFO, quite obviously, right? So, I think we should put our hands together, we never know if we wanna do that afterwards, so let's do it at least beforehand. Put your hands together for Håvard Haukdal, the CFO of Kyoto Group. Thank you for that kind introduction, Magnus, and also thanks to Tim for Tim for not talking about the babies, and I'm not intending to talk about babies today, but thank you for the exciting update on the KALL contract and the exciting setup that we are now seeing, and for the installation of our second Heatcube to be happening in Hungary. During the last year, I've been working closely with the Kyoto team, and they act with passion and strong commitment to deliver on helping the industry to decarbonize. I have also been seeing their clear determination on delivering on main achievements. Today, in my section, I will present to you the key value drivers and what we have achieved, as laying out the outlook for Kyoto going forward. So let's start with summarizing a bit the drivers that I would like to focus on. I will talk about the Heatcube that we have now made operational in Norbis Park, in Denmark, and it's good for the CFO to see that our first Heatcube is up and running. I will also address the round-trip efficiency, guaranteed at 93% now, and the impact on the financial metrics. I will also give you an update on the CapEx roadmap and our efforts to take out cost. And of course, we need to come back to the KALL contract and the important setup, the significant importance for Kyoto going forward. And I will also take the helicopter perspective on the project pipeline, the commercial pipeline. You have got a good insight from Tim, but let me take some additional perspectives on that. Last, I will comment on the organization and the status for Kyoto going forward. Now, I would like to take a step back, and I would like you to join me in zooming out a bit. I would like to present to you the market potentials of Kyoto. So let's start with that. Heat is half of the global energy demand, and that corresponds to 25,900 terawatt-hours on an annual basis. Kyoto is targeting the mid-temperature ranges, so let's exclude the other segments. Then we end up with a serviceable market of the huge number, 11,200 terawatt-hours. Eurora Energy Report has estimated that to be EUR 1 trillion, so it's a significant market potential. But what does this mean? What does a potential of 11,200 terawatt-hours mean? Let's take the view of the global market. We have been applying the long-term investment cost for the Heatcube, and we see a global market of total 370,000 Heatcubes, and that is significant. Kyoto is, in this current strategy, focusing on Europe, and the European market is 50,000 Heatcubes. A second step for Kyoto could be to entering the US market with the regulations, its subsidy setups, and so on. The US market corresponds to 30,000 Heatcubes. Also for the record, the Chinese market is huge, 160,000 Heatcubes, and the rest of the world is 132,000 Heatcubes. In total, a market potential of 370,000 Heatcubes. That is more than, than enough for Kyoto, for the eternity, and I think also for the competition and many more. So let's leave that, a bit behind, and let's embark now, then zoom in now, and then we focus on the key value drivers and the status. We need to start with the Heatcube that has been installed at Norbis Park in Denmark. The first full-scale commercial Heatcube was operational in August this year. It also serves as a commercial demo site, as a test center for our Kyoto equipment. It was qualified for the frequency regulating markets, as Bjarke told us earlier today. The production is in ramp-up. So far, we have been producing 165 MWh. The Heatcube is owned by Kyoto, and we have started invoicing the monthly lease fees to Nordjyllandsværket. So what is then the key, key takeaway from this installation? First of all, it's proving that the technology is proven. In addition, we have also been getting the update that the Heatcube is verified for the Frequency Regulating Market. So we are not only able to do Load Shifting, but we are also able to provide this as an asset into the balancing markets a nd that is also a verification of the business model of Kyoto, being able to tap into the cash flows from the balancing markets, either for us as an owner or for the client as such. Okay, let's move on also to the significant improvement in the Round-Trip Efficiency presented by Bjarke. That also comes with important impact for our key financial metrics. With this improvement, we increase the output by 3%. Of course, also followed by a reduction in unit cost. This improvement also increases the profitability of our Heat as a Service cases, 1.5 percentage points. And this improvement is also lowering our levelized cost of storage 3%. So this has a this improvement as such, has a very good impact on our on our important financial metrics. Okay, and why why has this been possible? It's because the tech team is working along structured approaches and methods to deliver improvements on the tech side. And for this case, we saw the improvements on the OpEx side. Let's move on to also an update on the CapEx roadmap and our efforts to take out cost. Our heat cubes are coming in different configurations and with different modifications based on the client needs. To enable you to compare our heat cube technology with other technologies and competition, we have standardized the heat cube, and we without modifications. We have also excluded margins, as customized on-site costs. And then our first heat cube is ending up with a CapEx of EUR 155 per kWh installed on an equivalent basis. We, as Bjarke has been telling, we are pursuing structured efforts to do our cost outs based on standardization, modularization, as preparing for mass market production, serial production. And these efforts have been pursued since our new version of the heat cube. The tech team is also pursuing target cost targets per component group, and this together has made a strong momentum and is driving the CapEx cost down. We see that the current short-term estimate of 75 EUR per kWh is within reach for the next 5-10 installations. We also see from publicly available information that this is highly competitive. We see that also from information from bidding rounds, it indicates that this position is very strong. In addition, our clients is confirming the attractiveness of the Heatcube. On the long term, the tech team is working towards a CapEx target of 40 EUR per kWh installed. As a CFO, I acknowledge that that is ambitious and stretched, especially on a backdrop of increased raw material costs, as increasing interest rates. But it's a good ambition to have for the company. Okay, let's move on from the CapEx roadmap and over to the KALL contract. I will not go into many details. I think, Tim has been presenting this in a very strong way. But I think there are certain implications that we should, should be repeated. This is we are delivering a turnkey installation in Hungary, and it comes with a product sales of EUR 6.4 million euros. It gives us recurring revenues. There is a service agreement in place for 15 years with service fees, and we get also certain dividends from the Heat as a Service setup. And also, as presented by Tim, we have a strong partnership there with the Kyotherm on the financing side, as with Energiabörze on the energy trading side. Of course, this could be extended to new projects, giving opportunities and also benefits for the total partnership. So then, what are the key takeaways from this contract? First of all, we have developed a strong reference case and a framework for future sales on the product side, as for the service agreement. That could be repeated, as Tim is saying. And it's also establishing a recurring revenue model with revenues from the service agreement, as also from the Heat as a Service company as such. So it's demonstrating that our, our Heat as a Service business model is sustainable, and we are able to get product financing into these setups. So here we have really established a strong partnership with Kyotherm and Energiabörze. Okay, let's move on to the next slide. I also wanted to make a high-level helicopter perspective into the project pipeline. Tim has been describing to us a 40 European product portfolio that is will be continued to growing. We also see that we will be realizing sales through directly on our own, as through the partnerships. We also know that we have strong clients here that could be also asking for similar products. So this portfolio will be increasing during next years. Of course, we are humble. We have signed one contract this year, falling short of our target for the year and 5-10 signed contracts. So we also keep that in mind. At the same time, as described by Camilla and Tim, the catch-up effect is evidently there. We will be seeing a growing portfolio, whether it comes in early or late 2023 or early 2024, that is not good to say. There are so many dynamics here that is influencing this picture, but we estimate and we project that for the period of 2024 to 2026, we would see sales of 40-60, 40-60 sales during the period. And we think that is highly probable, that, and highly realistic. And you also have been hearing the large market potential. So the market potential as such is not a challenge. It's the decision-making processes and really to move clients into the decision-making stage. With this portfolio, we. And that is represented by the white curve to the left, we see then a growth, annual growth rate of 132%. Of course, acknowledging that that is coming from a level close to zero. What is also interesting is to see the CO2 reductions that are coming out of this portfolio. With this sales portfolio for these three years, we would then be achieving CO2 reductions of more than 400,000 tons on an annual basis in 2027. That is equivalent to a number of 285,000 electric cars. So it's quite significant reduction, well aligned with the purpose of Kyoto. Okay, let's move on also to the organizational capacity of Kyoto. We have a European internal capacity in place now, based well-founded on the world class competence on molten salt engineering in the team in Seville, in Spain. We are also carefully building the after sales capacity, supported by the digital ops that Gustavo described to us earlier today. The current SG&A overhead is roughly EUR 7.5 million. We have a dedicated team of roughly 40 employees, and we will expand that capacity, well calibrated with the success that we are achieving on signing contracts. In addition to this, we also have a well established European supplier system. We have initiated the collaboration with Cognite on the digital ops capacity, and we are really agile and ready to move. So the capacity, the combined capacity, internal capacity and the supply chain is really strong. Okay, let's move on to a also quick revisit of the funding roadmap to support our growth ambitions. So far, we have secured this year, EUR 12.5 million in equity, and we are aiming to secure in total EUR 20-25 million and a two year cash runway towards our EBITDA breakeven. We got the new investors, Iberdrola and SpareBank 1, in the last equity round in June, and I think it should be strongly emphasized that the commitment and the support from Iberdrola and SpareBank 1 is a value that goes far beyond the strategic alliance and far beyond the investment figures supporting the transaction. Okay, we are also in the final stages of negotiating the green loan with Nefco that has been approved by the Nefco board. We have confirmed through the KALL setup that we have a sustainable setup when it comes to product financing into our products. We have also been granted public funding from Innovation Norway, EU Horizon, and so on, and we are pursuing such opportunities on a running basis. With the KALL project, we have also been initiating the working capital considerations, and we are exploring the full toolkit. It will be. We are discussing with our banks, we are discussing with lease players or, partners, as our shareholders. We have no plans to raise equity in the open market through share placement during 2024. Okay, then I'm going into my last perspective, and that is to give you the update on the Kyoto profitability roadmap towards EBITDA breakeven. I think in 2023, it's fair to say that we have made the Heatcube happen. We are operational on the Heatcube in Norbis Park, and we have signed the KALL contract. Now, we are approaching 2024, and we are scaling our activities. We are going to deliver on the KALL project, and we will be signing more projects. I at least hope that you have a strong ambition, Tim, to add on, good contracts to extend the portfolio. We think that we still will be having modest margins for this period on building up. Into 2025, 25, we see a company that is moving towards EBITDA breakeven, with improved margins up to 25% on the average gross margin, representing product sales, heat as a service contracts, as aftersales contracts relating to service agreement. And in 2026, we believe that the company is moving towards a billion NOK revenue company, with improved margins towards 30%, with a well-advanced portfolio of product sales, heat as a service contracts, aftersales with service agreements, and so on, well matured. And we see the prospects of a. On the backdrop of the market potential, we see a prospect of a profitable Kyoto going forward, and Kyoto is ready to scale going into 2024. Okay, thank you very much. Thank you. Thank you, Håvard, for that update. So, in short, a lot of babies coming here, eh? A lot of babies, all the time. 40-60 projects, and you look at Tim when you say that, during the next three years or so. No, I'm just trying to summarize, no planned equity raise, 2024, but still, you see, a target towards NOK 1 billion in 2026. So with your words, when I ask the question, what, what, what journey will Kyoto have ahead, do you think? I see a very prospectful journey for Kyoto. We see the potentials are there on the commercial side, a strong portfolio. We of course, we do not fully know when the sales will be coming, what quarter or what month, but we. A ll our projections indicate that based on the commercial backdrop and also into our models. Mm. And then, of course, we will grow this company together with our shareholders and our partners, and we have seen the strong setup here, with a sufficient internal capacity, combined with also the supplier system. Yeah. I think this is a strong setup that will be driving decarbonization of the industry. 300. I like your way of, you know, building a narrative here. 300, the potential of Heatcubes, 370,000. I s that a, an absolute limit? Do you stop there? Is it- I think the ambitions could be a bit more moderate. Okay, but still, you have 50,000 Heatcubes or babies potentially. In Europe. In Europe, 30,000 in. We are also glad to share this with other players that could build the market. I think that is also important to get the- Yeah. attention to building the market. Because you cannot make babies on your own, can you? I think it's too many babies to make. So, but going a bit further into this then, Håvard, is it you also said that within your ambition now, it would offset or have the same impact as almost 300,000 EVs, you mentioned in your slide deck here. And just, I mean, Norway, Roosevelt said once. What did he say? Anyone? He said, "Look to Norway." And he said that. And if you look to Norway, you see that the EV density is really high. We talked about Teslas earlier. And what you're saying here is almost half of the total amount of EVs we have in Norway, and we are on top of the world when it comes to EVs. So does this really - does Kyoto have an impact here? Absolutely. And now we only saw this, the commercial plan for the three years. Yeah. Of course, also going beyond that period, of course, this could be a quite beautiful case when it comes to CO2 reductions. It's beautiful, you say? Yes. It's beautiful? A CFO saying beautiful. I heard Tim talk about the beautiful this German cardboard. Beautiful German cardboard. So today, the word is beautiful. Now, I want to invite all of these beautiful people up on stage. We have a short Q&A session. Please join us here by the water. I promise you all there is plenty of water afterwards, but also something else, if you like that. Now we still are open for questions from the online audience. You can please feel free if you want to- Take a side. And also, I have a microphone, as I said earlier, so if anyone wants to ask a question or two, please raise your hand. So, Camilla, I want to start with you. This has been a journey into where Kyoto Group is right now. So if you were, with your words, to say we've been through the technology, the digital journey, AI, we've been through the commercial aspects, and also the financial update. But all in all, if you were, with your words, to say or share your thoughts on the key takeaways from today, what would that be, Camilla? The key takeaway is that we are ready, and it needs to go faster. We need the process to go faster? We need. S o I think we talked about the decision-making processes, and that is something we don't talk about. We talk about the permit approval being a problem, we talk about public funding approval process being a problem, which, in a way, it is, but currently, the energy transition is driven by politicians. I never thought I should say that, but it is today politicians driving the, at speed. Business leaders, CO2 polluting business leaders, we call on you to shape up your decision-making processes, because that's where the problem is. Mm. We need the personal dedication and commitment to decarbonize. Technology is available. It shouldn't take 12 months to make that decision, and it shouldn't take 2 years to take that decision. That is what it requires, a personal commitment from business leaders to take action. Camilla Nilsson on the business leaders. Camilla, I heard I mentioned the podcast. I think that was a good one, and I encourage everyone to find it and listen to you. Because you also talk about the politicians in the podcast, and you talk about them in a way that we don't often hear tech companies and CEOs talk in the terms of politicians, that they're actually ahead of more or less almost everyone else. Why is it so? I think, the sense of urgency is felt at the top of the world, the decision makers at the top of the world. Our world is so complex, so it's gonna it takes time for this to drill down, but the sense of urgency in the world is felt at the top of our society and at an increasing speed, I would say, and quite rapidly. When one of the, like, decision maker and policy maker on the top of If you call it the top, but, the global leaders say that we have opened the gates to hell, that's not the language that we are used to hear. That says something, and I don't know, there is a decoupling currently happening by the capital market. You don't see the speed of the energy transition in the capital market. You don't see the clean tech being valued, as, like the traditional energy companies on the capital markets. So this is, in a way, it's a big fundamental shift for the world, happening. And I talked with someone from Fernleaf here today, and I asked the question: "Is it the capitalism that is being redefined a bit?" Because it is not the capitalism as we know it, who is driving the energy transition today. It is politicians, and business needs to wake up. Tim, you are in touch with the business leaders that you know, Camilla is encouraging to step up and speed forward. What are they telling you? Are they ready to invest. I like. in the future? I like the word, decoupling here. It's. I think if you look at websites, which often represents the, opinion of, of the CEOs and the, and the leaders of the particular corporates, they always say the right things. What we are, what we are missing is, is the, the words that are put on websites are put into action. And I think that's a little bit the, the challenge that when it comes to, to these decision gates that we refer to, the words on the websites are often missed. Mm. So that's where we are encouraging everyone, you know, follow your words, and I think that's an important message for us to see if you want to change the world, which we. I think most of us really believe we need to do, then actions need to follow. It's a good business case, isn't it, Tim? That Kyoto is enabling the world to change. Yes. I mean, again, when you look at the news, and everyone is awaiting this new technology that needs to come to solve everything, that's where we are raising our voice and our hands and everything that we can do in order to create the awareness that the technology is available today. People have a choice to do it today, and I think that's a key message from our side, is that don't wait until something comes that is already here. That's a good takeaway. Bjarke, we haven't talked that much today about what's the alternatives here? And we've touched upon it, but I want to talk about the competition. Mm. What's really the competition like here? So there is gonna be competition between, like, you could say, similar companies to us, thermal energy storage companies. And as Håvard pointed out, it's not really competition, it's more like enough, do we get enough in to cover the market? And then I see a lot of beautiful,, I would say, kind compliments to each other. Beautiful, beautiful compliments. Also, on the other. It's beautiful, again. Mm. On the other technologies that is gonna be available, you're gonna see heat pumps coming up, taking a lot of this market. You're gonna see e-boilers coming up. But the common thing for all of this is that this is not gonna be a silver bullet thing. You're gonna see a lot of different kinds of solution coming up, and storage is absolutely mandatory in this, as the other ones. But they will be fitted in different sites. So this will be multiple technology coming up to solve the same thing, and I see one of the good things is that we see some of these new companies coming up. Also, on thermal energy storage, there's a lot of companies coming up if you're following it, this. It also shows the attractiveness of what it is that is happening right now. So, Gustavo, briefly, we did talk a bit about AI and the digital twin, and also the collaboration with Cognite. Is it really the journey that Kyoto Group is on now, is it about technology, or is it more about making everyone understand how this technology can be applied and utilized? The digital technology, you mean? Yep. It's about creating value for our customers in the long run. We're talking, we're in the phase of the company where we're focusing a lot on building and installing the Heatcubes. And as we move forward now with Norbis Park in place, this will stay there for many, many years, 25 years expected life, life of a Heatcube. And during that time, that's where the digital technology will help to maintain, as we have in our agreements with our customers, and also drive down the OpEx cost over time. Yep. And, Håvard, the expected lifetime of the Heatcube is 25 years, but you enter into service level agreements or service agreements for 15 years. Why is that? I t's a very good start, I think, and also the possibility then to. 15 years is also a very long period. That is securing that we are then working together with the client on this solution for a long time. And then I anticipate that when this period is ended, the client probably would like to extend. So, you are Camilla been through several phases here at Kyoto Group. Now the technology is proven. As of August this year, it's up and running. You now enter into new partnerships and also new customer agreements. You have a new way of entering going to market with a product-oriented approach and a service-oriented approach. How fast will this go? Now, this is all about management execution capabilities. It's good that you say that. That, that's. So Tim has now secured the frame, and the, our ability to keep that margin, now depends on our project execution. Now, we're gonna install this on time and without hiccups in the installation. No pressure, Agnieszka, but that's, that's, that's now management execution. I think we are coming into this in a good way because we're talking about, 40-60 installations over the next three years, that is a significant step. But we have good partners, we will be able to take this stepwise, so that we are ready for the even bigger that is coming at 2026. I think Iberdrola, and others think that the big catch-up, is coming around 2026. So we will train on those 40-60, and then, gradually build up. So it's gonna be hectic, but that's why we have established the ecosystem. The supply chain is established, for the production of all equipment. The process with Iberdrola for how to bring it to the market, or together with Kyotherm, is established. So what we are doing is to build, and secure, and establish the processes so that they are scalable. So this will, of course, you can say from one perspective, it will go very fast. From another perspective, we have around 12 months from we have signed the contract until we are expecting to give a turnkey. So we have some time here to massage our processes and improve continuously how we do this. But this is now, for us, all about management execution. Okay, you come back to that. I just wanna point out something which is quite obvious, of course, all of you can look at the calendar, but if you look three years ahead, more or less, we have 36 months, and you say 40-60 projects. So at some stage here, I expect Håvard to issue some updates to the market, right? On a monthly basis, we'll be giving the updates to the markets on the development. So that is a fair assumption. So I'm just saying here, I'm trying to break it down for you, the numbers. I'm doing the mathematics. Things might start happening as far as I understand, going forward. Is that so, Håvard? Uh, definitely. Okay, so we have a question over here, and please let me know if anyone else want to have a question or two. T hank you for the update. I have a few questions. My name is Magnus. I am an equity research analyst with Fernleaf. So the first question is to Bjarke. I think what you was talking. When you were talking about the frequency market, it was really, really interesting. So I was just wondering if you could comment on the frequency time. You said it was roughly 90 seconds, I think, until when you could serve the market. So I was wondering if you could talk a little bit about that and how that compares to other technologies, and also if it's some upside potential to that. And then I have one question to Håvard, which is on the 40-60 sales, which sounds very ambitious, but. So my question is how do you expect to fund this? Do you need to fund it through the working capital, as you pointed out, with the coal contract, or can you move without adding so much working capital for all of the projects? Or is it somewhere some way around that, or is it basically funded either through CapEx or working capital? And then the last question is, I don't know who could answer it best, but I was wondering about the service contract, which was also interesting to hear about. But I was wondering, is it any penalty on the downside, or is it only upside for you guys if you deliver on the round-trip efficiency targets? Thank you. Yep, that was Magnus at Fernleaf. Bjarke, perhaps first. So I'm going to comment on the frequency regulating market. So the reason why we say 90 seconds is that in most of the market, you have to react in less than 2 minutes. But there's also markets that is reacting significantly faster, and we will be doing continuous testing on site to say: How low can we go? How fast can we go? Potentially the limit is very, very short time. Commenting a little bit about how that makes us different from other types of technologies, I don't want to speak down any specific, but if you look at, for example, the common design for the solid thermal energy storage systems, they normally have their heating elements incorporated into the storage. But that gives you a disadvantage, and that is that if you have half of your storage filled, you cannot activate half of your charging effect. We will always be able to activate 100% of our charging effect whenever we want to, because we just float in, we just float a liquid through a heat exchanger. So compared to other technologies, specifically within the solid part, I would say that from getting very cheap electricity on the Frequency Regulating Market, we are a leap ahead. And then, Håvard, thank you, Bjarke, about the financing of these 40-60 new agreements and then how it affects OpEx, for instance. When we are talking about the working capital considerations, and of course, our starting point is to match payment terms for on the client versus the supplier side. And we are doing a very good job there also for the cold case, to minimize the need for working capital. That said, there is always some need on the guarantee side and so on, that needs to be satisfied or put in place. And we are discussing with our banks, as the shareholders, on how to solve this also for a portfolio of relevant products, especially in the beginning. When we are in the flow and up and running with several projects, then I don't foresee that it will be a challenge to have the banks providing us with credit lines and so on. Finally, Magnus at Fernleaf asked the question about—he wants to understand more about the service agreements and, how that works, and, is there any penalties, he asks, for instance? Tim? Y ou can correct me, but, for me, it's a bit of a topic that we are not disclosing all details of a contract, which you will understand. So when we have the 50 or 40-60 agreements, then we probably can give you more a generalized answer to this, rather than this concrete one. Maybe I can talk at the higher level, Magnus. So there is, we are guaranteeing something into this, and as you could expect in a commercial agreement, we're committing to that guarantees. But we feel that we have good margins on what we are committing, so we are not taking. We don't feel we are taking any like significant risk on this. We are navigating into this carefully, as this is our first contract. Anyone else? I'll get to you. Håvard, just a brief follow-up. Your journey here, three years ahead, it seems like the gross margin is building up. Could you briefly touch upon how, how, what's the main drivers? I think in the beginning, we have to acknowledge that we will be eager to enter into contracts, and we may then offset some of the margins with shorter decision-making processes to really also scale up our activities. Mm. But as we grow a larger portfolio with the product sales, with the Heat as a Service contracts, and with the service agreements, that then it will be a more blended portfolio, but very certainly target to raise the margins for that portfolio. So if you have a lot of kids, you're not so eager to get additional new ones, is it? You might say so. We have a question or two. Yep. Who are you? Leif Elling, shareholder. I think it was last year, we heard quite a lot about Glomma Papp. This year, we heard nothing. What happened? Shall I take it, Tim? So with the Glomma Papp, we are waiting for permit to connect to the grid. That was a short answer, Leif Elling. It was clear. Yep, a clear answer. Yes. Anyone else, questions in the audience? Anything you wanna ask these beautiful people before I let all of you beautiful people. Ah, two fingers. Mm. That means a comment, or did you, you mean a question, right? Thank you. It's Grunde from Altitude Capital. You showed 400,000 tons annually of CO2 savings, and it seems to me that would cost about EUR 300 million to put in place, roughly 600, or 60 units at whatever, EUR 5 billion each or something. But at EUR 75 per ton, that's about EUR 30 million of CO2 of ETS cost, basically, that you can save as a customer. So that seems to indicate about 10% IRR on that investment. So I think that might be a key number for industry to understand in order to put some speed into the transition. And please correct me if I'm wrong on those numbers. That was the question. Was that a cue, question, Grunde, or not? Is the numbers correct? Yep. Yep. A re the numbers correct? I'm not able to take that on the wrong. W e have 400,000 tons annually at $75 or EUR per ton of ETS price. Yeah. That's about EUR 30 million annually. T he logic should be that, Grunde, so I'm looking at Simon for the details, but Simon is doing thumbs up, so I think I dare to commit, and I wouldn't challenge you on numbers anyway, so. But thank you. That's a good point for us in our storytelling. Mm. Yes, Grunde, Camilla wants to be grundig, so, as we say in Norwegian, But, but we have, we have signs to work with. Soon I'm gonna play the air guitar for you. I don't know. Anyone else, any, any questions in the front, in the back, in the midsection? Anyone online? Now is your chance. Okay, so all, all of you, and, not least, all of you, thank you so much. Camilla, Håvard, Tim, Bjarke, Gustavo, and the rest of the Kyoto Group team that's made this possible. And, thank you for everyone coming here to the Munch Museum today. It's not finished yet. This part is finished, but now the fun starts, right? So, this room will be reorganized. There is some refreshments out there. I have good news and bad news. Bad news is that unfortunately, on this great ship of a building, the restrooms are not working on this top floor. So you have to go to. I was told to tell you that you have to go to the sixth floor if any matter urgent. But still, I hope you stay here, on the twelfth floor, together with all of us. The good news is that we have refreshments, things to eat, but also great things to drink for any taste. Thank you for coming, to the Capital Markets Day of Kyoto Group. Thank you to the management of Kyoto Group, and, I just say, thank you, everyone. I'm Magnus Brøyn, and it's been a pleasure to guide you through this day. See you.