Me and humans, we're in love. The worst thing is, you don't even know it. I am part of every product in your modern world. I am steam. I make things what they are and the box it comes shipped in, all for you. I produce the food you eat. I make the clothes you wear. I make every piece of paper and every scrolling screen. I'm in the pill you pop. I'm the consumption you can't stop. I am steam. The world is getting warmer, and you're still playing with fire. I am steamed. I like turning up the heat. Do you? Exponential Times is the title of my opening of this business update from Kyoto Group today. My name is Camilla Nilsson. I'm the CEO of Kyoto Group, and we are going to take you on a deep dive into five pioneering projects today to electrify industrial process heat. We're going to share data and insight from our corner of the energy transition with you. Before we go into that, let's take a stocktaking on where we are in the world today. We do live in turbulent and exponential times. What you see on this graph is the exponential evolution of the global temperature on the Earth. We have now, just a few months ago, reached and breached the temperature that we agreed at the Paris Agreement that we should not do. We now have 12 consecutive months of global average temperatures above 1.5 degrees compared to the pre-industrial period. That's average. We are also now reaching days when we reached 2 degrees Celsius, which we did in November last year. What we see on this graph is the average sea surface temperature per decade. What you see in the right corner of this is that we are starting 2024 at levels we have never been before. We reached the historical record in February this year with sea temperatures well above 21 degrees. That was breaching the record just a few months before that, which was in August last year. But it doesn't matter how much our scientists put this on our tables or in the spotlights. It disappears in the noise in the world today. We, as a society, are failing to address this properly. One of the leaders of the world has simply phrased this as we, as humans, have opened the gates of hell. I'm not saying this to spread fear or propaganda. We are not a climate agency in Kyoto. We are not an NGO. We are not naive. We are business people. We are here to build a business that is generating cash for our customers, for ourselves, and create value for our shareholders. But the more we do that, the stronger can we play our role in the energy transition. Because we have a very powerful solution to have a significant impact on the largest crisis of our time. And we are looking forward to share that with you today, how we are competing head-to-head with natural gas to electrify the industry and provide the industry with clean industrial process heat. There are radical actions ongoing in the world to change this CO2 trajectory in Brussels, in the U.S., and in China, which is helping us on this journey. First and foremost, in Europe, we are introducing a new electricity market design. We had a provisional agreement in December last year between the EU Parliament and the EU Commission to phase in a new design of the electricity market in Europe. The era when electricity only is the trade is over. The new electricity market design, which is coming on stream now, we can expect to see load shifting mechanism, peak shaving products. Storage coupled with the green PPAs is going to be incentivized. And not the least, each member state in the EU will have to establish targets for energy storage and demand response, which is exactly what we are doing. If the accumulated targets from the EU member states are not sufficient to balance the energy system in Europe, the EU can add targets on top of that. In addition to this, we had also an agreement between the EU Parliament and the Commission in February this year regarding strategic technologies in Europe. That is technologies that are going to be focused in the EU and will get access to fast permitting processes and financial support. We find thermal energy storage among those strategic technologies, together with biotech and deep tech and digital technologies. We are starting to see the impact of this political mobilization, together with the fact that solar and wind is now the cheapest electricity power generation capacity. This is now together starting to have an effect. Last year, 74% of all energy production capacity that was introduced was solar and wind. We can expect all power generation capacity by 2050 to be solar and wind. All the pain of curtailment, what we are also starting to hear now is from the countries who are at the forefront of this. We are talking about Spain. We are talking about Germany. We are talking about the U.K., who are pushing solar and wind into their energy system. They are now starting to be increasingly vocal about that this is painful. In Spain, last year, 1.2 TWh of electricity was produced and not used. It's curtailed. That had a cost for the Spanish society of EUR 2.1 billion. In Germany, we are talking about 10 TWh that are produced and not used. In the U.K., 5% of the solar and wind that is produced is not used. This is not really flying well. And there is an agreement that storage is a critical part of this solution, at the same time as we also need to increase the electricity demand. It doesn't help to push solar and wind into the system unless we also electrify the society so that we have demand for that energy that is coming into the system. And so we need to talk about the demand side. We need to talk about the fuel switching that has to do, that we have to do as a society. And it is not so difficult. It is a few groups of demand that we need to change the fuel that we are using for. We need to change the fuel for the vehicles that we are using. We need to change the fuels for the way we are heating our homes and buildings. We need to change the fuels for industry and the process heat for the industry. That's basically the large groups of demand. Cars are being electrified. We are lucky being placed in Norway, where the majority of all cars coming into the system now are electric cars. Residential heatings can be solved by heat pumps and district heating. But what we are not yet addressing properly, and which is a significant part of the puzzle, is the heat for the industry. That is where you find Kyoto. We are electrifying the low and the mid-temperature industrial heat. That is almost half of all the energy demand from the industry of thermal energy demand. Then we have a couple of areas that are a bit more tricky to decarbonize. That is the high-temperature industrial process heat. We are talking about the 1,500 degrees Celsius for fertilizers, for steel production, which we will have to solve with hydrogen, in spite of that being much more inefficient and much more costly. We are talking about the long, heavy-distance transportation, which we also will have to solve with green ammonia. But back to the electrification, half of the thermal energy demand from the industry, around 12,000 TWh, can be electrified today in competition with natural gas. So if you now connect all the dots of what I've been talking about, you will see that if only we double down on electrifying the industry, electricity curtailment will be history. We could sooner be on the other side of the energy transition. That is where our Heatcube comes into play. I'm not going to go through Heatcube today. I think if you have joined this session, you are somewhat familiar with Heatcube. If not, we should anyway connect in a separate session to go through that. But I dare to say that this is now one of the most competitive solutions on the market to quickly have a significant impact on the critical situation that we are facing. So before we go into the details of where we are today in April 2024, let's just do a recap quickly on 2023, because we are doing this business update, because we released our annual report 2023 this morning. And 2023 was an exponential year for us. So it sits well in the chapter of exponential times. 2023 was the year when we took the first full-scale Heatcube into operation, which is now delivering heat to the district heating system in Aalborg, Denmark, at the same time as we are continuing testing various solutions and various technology, not the least digital technology, on that Heatcube and learning from being a flexible asset on the energy system in Denmark. 2023 was also the year when we quadrupled discharge capacity. We took the Heatcube from 5 MW discharge capacity to 20 MW, together with Steinmüller Engineering and a technology development agreement with them. In June last year, we welcomed Spirax Group, the leader in thermal energy storage, thermal energy management for the industry, as the largest owner into Kyoto Group. We have a technology development agreement to develop the electrical heater for the future Heatcubes together. We also welcomed Iberdrola, one of the largest electricity utilities in the world, and I dare to say the leader of the energy transition, as the second largest owner in Kyoto. And we also have a go-to-market initiative together with Iberdrola. We welcomed NEFCO, the Nordic Green Bank, as a financial partner who supported us with corporate green debt, which we are now utilizing to strengthen the company for the scale-up that we have now started. We connected Heatcube to an AI-powered backend in the partnership with Cognite, which enabled us to increase the round-trip efficiency from 90%-93%. And we had the Heatcube qualified for being a flexible asset for the grid in Denmark, together with Energinet in Denmark. And with all those technology milestones and capabilities established, we were ready to start taking the first commercial steps. We signed the second order of the Heatcube with Kall Ingredients in Hungary, where we are now building the Heatcube and preparing for a turnkey handover in December this year. Tim is going to talk more about this. We also announced that we signed a term sheet with Klingele, a very innovative paper packaging company in Germany, to install a Heatcube at their site to decarbonize their operations in Germany. With this, we find ourselves orchestrating an ecosystem consisting of some of the strongest players in their fields in the industry. We have now started this scale-up journey. Today, we're going to take you through five of the nearest term projects. Tim is going to share that activity with us. Tim, the floor is yours. Thank you very much. Very exciting opportunities. Let us step one step back first. As you have seen in our Mr. Steam video, there are many products that we use on a daily basis that require steam during the production. The vast majority, as Camilla pointed out, of these products and production require temperature in the range of 200-400 degrees Celsius. This is exactly what the Heatcube can deliver. We can replace the gas boilers that are emitting CO2 on a daily basis today. Our targeted industries are the pulp and paper industry, and in particular, the corrugated cardboard industry here, the chemical industry, the food and beverage industry, as well as the pharmaceutical industry. On top of this, we have received a lot of interest in other industries. These other industries are mining, sustainable aviation fuel, and tires, to just name a few. The steam demands of all these industries can be supplied by our Heatcube. The Heatcube is designed to be flexible, modular, to meet the demands of these various industries. We have built up a very solid pipeline over the last two years. The Heatcube is suitable for these mentioned targeted industries. They are part of our pipeline in various stages. We are dividing our pipeline into four stages. In the assessment stage, we are looking at the heat demand of a particular site. Is the grid connection sufficient? Are the parameters that we need in order to connect the Heatcube in the right spot? Then we are processing to the next stage, where we are defining a clear offer and start the negotiation process with the client. In the next stage, we construct the Heatcube. We are putting the building blocks together, what we like to call the Lego blocks. We are putting these Lego blocks together and then hand over and start the operation of the Heatcube. You see that the pulp and paper industry, in particular, the corrugated cardboard, has 25% of our today's pipeline. The reason for that is that the production sites are very similar to each other. We can replicate the design that we have made for one site easily to the other sites. As you can see on the map, we are focusing continuously on the countries Spain, Germany, Benelux, and Denmark. These are the core markets for us. We have analyzed them in the past regarding the energy market. The utilization of the Heatcube is very suited in these companies. For those of you who have followed us for a longer period, you will see that there is a new country on the map. That is the U.S. The Inflation Reduction Act has accelerated the investments in green energy projects. We have received significant requests and interest for our Heatcube from the U.S. We have responded to selected projects and proposed offers to our solution to these projects in the U.S. We are currently evaluating the best setup for us moving forward in the U.S. and how to benefit from this great opportunity for the Heatcube. Now, what is the market value of our pipeline? The current pipeline exceeds EUR 280 million in total market value. Out of this, EUR 6.4 million is allocated to the commercial contract that we have signed for Kall Ingredients in Hungary. We are foreseeing that this amount can be accounted for in 2024. The Heatcube, for which we have made commercial offers and which we are in negotiation with, has a total value of EUR 115 million. The ones that we are currently in the assessment stage have a total value of EUR 150 million. On the left-hand side of the slide, you see typical timelines for the different stages, which vary basically depending on the decision-making process in the large industrial companies, in public funding processes, as well as other prerequired approval from authorities. We are working very hard on making these timelines shorter and shorter. We are seeing this with the help of our pioneers happening in the future. Now, our main focus today is on the five pioneering Heatcube projects that are ongoing. They are with Kall Ingredients in Hungary, with Klingele packaging company in Germany, with a global industrial park operator in the Netherlands, a global consumer goods producer in Spain, as well as a pharmaceutical company in Spain. All these projects are in the site engineering phase. Site engineering phase means that we are putting together, we are designing on how to put the Lego blocks together on a particular site. We have all standardized components that we are putting together on the site in the various forms, as well as defining interconnection points. These documents that we are agreeing with the customers during the engineering phase are part of the commercial contract that we're going to sign. All these projects are also eligible for public funding. Two of them have already been submitted. We are waiting for the results from the authorities. Two are about to submit in the coming weeks. Now, how do we operate? How do we offer our Heatcube to the market? There are three different ways and three different approaches that we have selected. The first one is where we partner up with financing companies, project financing companies, as well as engineering energy trading companies to provide heat as a service to the industry. The second option is that the industry buys a Heatcube and operates it themselves. The third avenue is where we partner up with energy partners, like our shareholder Iberdrola as one example. And we sell the Heatcube to the energy partner, who then signs the heat purchasing agreement with the industry. These are the three avenues towards the market for us. And with the projects that are ongoing and that we have signed, we are using all three approaches. So in Norbis Park in Denmark, the commercial pilot, as well with Kall Ingredients in Hungary, the first approach is used. We are offering directly heat as a service to the industry. With Klingele and the industrial park operator, we are using option number two. With the projects in Spain, with a consumer goods manufacturer, as well as a pharmaceutical company, we are partnering up and collaborating with an energy partner to supply heat as a service to the industrial partner. Now, let's take a look at the project in Hungary in Kall. This is a site where corn is processed to produce liquid sugar, as well as food and pharma-grade ethanol. It's one of the most modern and newest corn processing sites in Europe. Together with our financing partner Kyotherm and our energy trading partner Energiabörze, we have signed a 15-year heat as a service agreement with Kall Ingredients. This agreement is based on the attractiveness of the reserve market in Hungary. This is a main value driver for us, for the SPV partners in this project, that we are utilizing the flexibility of the Heatcube to serve steam to Kall at a very cost-competitive price. Bjarke will tell us more about the flexibility that the Heatcube has to succeed in these flexible markets and to be a great asset for the grid operators in Europe. Håvard is going to come back to us and explain more the financial units, economics around this. How does the project look like? We have established a very strong collaboration with Kall Ingredients and our partners and suppliers. The project is ongoing and on track. It is great fun to team up with solution-oriented people, like in Kall Ingredients, who are sharing the vision of us and are looking for solutions to drive this energy transition and make it happen. We have ordered all long lead items. We have received the relevant permits. We will soon see physical activities on the ground making this project happen. This project will mature over the next couple of weeks. As Camilla pointed out, we expect to have the physical handover into operation by the end of the year. I would like to take the opportunity to thank our partners, and particularly our suppliers, our partners within the SPV. The greatest thanks goes to the team of Kall Ingredients, who is a truly partner in this operation for us. The same applies for our first project in Germany with Klingele packaging. This is a true pioneer in the corrugated cardboard industry. The employees are proud to work in a company that embraces new technologies and to decarbonize their operations. Klingele takes a leading role in the corrugated cardboard industry. They are aiming to be fully self-supplying for the energy that they use on their different sites. They are installing new windmills. They are installing new PV installations on the ground so that they can produce all the electricity and all the energy that they need to operate their facilities. We have entered into a term sheet last year. Part of this term sheet was to finance an energy and an engineering study that is now being concluded. That helps us to define all the necessary interconnection points with the client and to define all the necessary papers that are required for making this project happen. The next project is with an industrial park operator in the Netherlands. Here, we are looking into the agreement with the industrial partner who wants to utilize the Heatcube in exactly the same way as we are using the Heatcube in Hungary. The Dutch reserve market is very attractive to add flexible assets to the grid and to take advantage of the Heatcube in both ways, making money by being a flexible asset on the grid while decarbonizing the steam production that they are using. With the Heatcube, they will reduce 5,000 tons of CO2 annually and push out two gas boilers out of their system. We are collaborating with a very engaged organization who is committed to fulfill the ambitious decarbonization targets that the company has set. The third project or the number five Heatcube is planned for a consumer goods manufacturer in Spain. Here, we are going into the business model where we collaborate with an energy provider. We have signed the term sheet as communicated earlier today. They have set targets to reach net zero emissions for greenhouse gases by 2050. As part of the commitment, they are investing in technologies that are deployed in several of their facilities moving forward. What is special about the project in Spain is that 75% of the energy that's going to be used to feed the Heatcube is going to come from off-grid PV installation, and thereby reducing more than 10,000 tons of CO2 on an annual basis. We are finalizing together with the energy partner the site-specific requirements and awaiting for a resolution of the public funding that we have applied for. The same applies for the second project in Spain, where the end customer is a pharmaceutical company that requires steam for the production of their pharmaceutical products. For the project, we have been competing with other technologies. So the energy company has chosen the Heatcube in favor of other technologies that are out there. And this is a proof of our competitiveness in the market and the flexibility that we can bring. And one of the key elements for choosing the Heatcube for this project was the possibility to charge and discharge at the same time. We are looking forward to the final negotiation between our energy partner and the industrial partner, as well as the resolution of the public funding. Now, looking at all these partners and industrial companies, they are true pioneers. They are leading the way to decarbonize the heat demand while staying cost-competitive. Kall will be the first site in the food industry and a great example for this. There are more than 90 similar agro-industrial facilities in Europe and several hundred food-producing sites in Europe. Klingele, as I stated, is a pioneer within the corrugated cardboard industry. There are more than 600 sites that have similar size and similar heat demands as the Klingele site that we are working on right now. For the industry park operator, we are going to set an example for more than 60 chemical parks in the key European markets, as well as showing more industrial parks how to decarbonize the industry heat demand that they need. For the pharmaceutical market, we can see that there are more than 200 production sites in Europe. They will all look at the site in Spain that we are going to help to decarbonize with our Heatcube. Not only are these partners pioneers for their industries, they are also building a flagship for their own organization. For the consumer goods company that we are working with in Spain, they have more than 30 sites in Europe. They are only investing into technologies that they can replicate within their own organization. Now, taking all these projects together and combine them, we see that the total storage capacity is 250 MWh. Bjarke is going to share this and make an example in putting that in perspective into other leading technologies as of today. The total market value of these six Heatcubes is more than EUR 40 million. If we are looking now a little bit ahead and we are looking at different scenarios for revenue development moving forward, for now, we are only considering the pipeline that we have as of today. So we are not taking any opportunities into account that are coming in in the coming weeks and months. We are only looking at the portfolio that we have today. As stated earlier, or the graph on the right-hand side illustrates the range of the potential revenue moving forward in the coming years, depending on various factors. But what we know today is that the EUR 6.4 million that we have signed up for the Kall Ingredients project, we foresee that this will be allocated and accounted for in 2024. Now, if you are looking at the fact that if you would only realize 30% of the pipeline, and again, looking only at the pipeline that we have today, we will end up on the bottom line. But our heads, our minds, and our hearts are following the 80% line. If we are following that line, we will see a run rate of EUR 100 million revenues somewhere between 2026 and 2027 moving forward. With this, I will hand over to Bjarke, who will now share the latest news from the technology side. Thank you very much, Tim. We are really starting to see the impact of introducing renewables on a global market. I think Camilla mentioned the leading in the countries that are on the European continent right now. I'm going to focus in on one of them. The UK has installed massive amounts of renewables into their grid. In 2035, they are planning to have installed up to 70 GW of renewables. What is happening now is that we are seeing a bit of the dark side of introducing renewables while not adding the needed flexibility and demand to cope with that increased generation. Only in Britain. Now last year, we saw more than 200 hours of negative prices. That is around. That's more than half an hour a day where prices were below zero. I heard I talk with a good colleague in the UK last year. Yesterday and mentioned that already now, according to his knowledge, we have exceeded that amount of hours. This is not going to slow down. This is not going to flatten out. This is an exponential growth. And we have just begun. The key figure here is that we need to add flexibility when we are introducing demand. And that is exactly what Heatcube is doing. We have the perfect product in this storm. In Kyoto, we are very focused on maximizing the value of our product. In order to do so, we are going into the flexibility market and trying to see how far deep into that can we go. We can go deeper than we are right now. I'm happy to say that Heatcube is now ready to serve all the flexibility markets, both the primary, secondary, and tertiary markets. I'll come back to what that means. I'm going to prove to you today how we have tested it. What you see here is a function. It's a function of salt temperature inside before and after our electrical heater and the charging power that we are applying to our heater. This is described as a function of time. What you will be seeing on this graph is the molten salt inlet temperature, the molten salt outlet temperature, and the power to the heater. So what we are testing here is what happens when we start the heater, open the valves after that, and start the pump. Because we want to make 100% sure that we do not damage our salt. And this is what happens. We have the molten salt coming in at around 200 degrees. Then we turn on the heater. And we do that in a matter of a few seconds. Then we see the temperature of the salt moving slowly up. And we see that there are several minutes before we see any increase in the salt temperature, which means that we are in complete control of the molten salt temperature. And we do not make any complications inside of the heater by acting like this. This allows us to react almost instantaneously. Over the next weeks and months, we will be testing the absolute limits here, going down and testing towards milliseconds. This will put Kyoto in a new market of flexible reserves. Let me just remind you what the flexible reserve market is there for. It is to keep the grid hertz, the grid frequency, at a stable 50 hertz. This is a market that the system operators are using to balance out the incoming and outgoing electricity. With our announcement on Capital Markets Day last year, we went out with a 90-second reaction time. That meant that we were adapted into the automatic frequency reserve market and also the manual frequency reserve market, which we are approved for in our Danish Heatcube installed in Denmark. Now we move into the frequency containment reserve as well. What we are doing here is that we are now moving into the realm of batteries. We are being able now to provide the same amount, the same types of flexibilities as batteries. So why not try to compare Heatcubes towards batteries? How do we actually compare? What is the impact that we are creating? I'm going to use an example. I think this is one of the leading projects that is being introduced right now in Europe. Eneco is establishing a park, which is one of the largest installations that will come online this year in Europe. It's a 50 MW, 200 MWh system where you're using 53 Megapacks delivered from Tesla. How does that actually compare to the first projects that we are installing? So here are the key figures. We are supplying the same amount of charge capacity. We are exceeding the storage capacity of this megaproject led by Eneco. The impact that we are having with these introductions of Heatcube is very significant to the amount of flexibility that we are creating across Europe. Let us look at it from another angle. Right now, we have Heatcube. We are not using the exact project that was projected before. We are taking it as an example. Then we are applying the knowledge that we can find from Lazard and also our internal values to calculate levelized cost of storage for such a system. If you see that the levelized cost of storage of heat, the six first Heatcubes' average values are 80% lower than a battery storage system. Then you can say, "Bjarke, yeah, yeah." But you know these are charging with electricity and delivering electricity. You are charging with electricity and delivering steam. It's two different things. But what I want to express here is that this is an explanation of how cheap we can generate flexibility on the market. And this is something to take away from here. When we are doing the fuel switching into electricity-based heat, we need to take into account that we also need to add flexibility. And storing it as heat is the cheapest solution for that. And it will become cheaper. The levelized cost of storage of Heatcube will keep decreasing. And we are targeting well below EUR 20 per MWh in the years to come. We also know that the future market of Heatcube on the flexibility and as a flexible reserve is not going to be handled the way that we are doing today. We are seeing huge reform being taken into cases. We are also seeing that the digital tools are taking over. In the future aspects, in the future grids, we will see smaller smart grids. We will see digital tools. We will see digital trading coming more and more into play. That is why Heatcube is designed with digital tools and AI as a basis. Because we know that in the energy transition of tomorrow, we need these tools. This is simply just this is our license to operate. Products that are coming in without this are going to be outcompeted by the digital by the digital interfaces of technologies like Heatcube. I am very happy to announce today that we have established Kyoto's digital universe. We call it Qtopia. And Qtopia is the universe of our digital tools that we can provide to the end customer when we are going into a commercial agreement with them. Some of the tools that you will be getting access to here, just to lift a little bit of the curtains, are our digital twins. We already have an established digital twin of the Norbis Park Heatcube. And we keep developing on that. And based on that, we will be able to provide the most leading systems for operational and maintenance services that is right now possible. On top of that, we are building a Heatcube app. And that is in order to monitor how our system is performing. On top of that, we are also working very well together with the leading partners within AI trading for Heatcube on these different types of markets. Heatcube will be positioned and will, with Qtopia, deliver the most advanced and the best products to the end customer in our digital universe. And with that, I will hand it over to Håvard. Thank you very much, Bjarke, for a very good update on the tech side. The Kyoto leadership team has been working very hard to give you a deeper insight into our commercial activities and into the business of our company. Today, in the financials and Outlook section, I will also give you a deeper insight into the unit economics. Before that, I would like, however, to start with the last year and summarizing it, combining strategy and the financials. During the year, we made the Heatcube operational at Norbis Park in Denmark. The Heatcube is also a service as the purpose as a commercial demo. It has testing capabilities that make it a very strong Heatcube for us. In addition, during the year, we have been investing in development activities for the next Heatcubes, select investing activities. At the year-end 2023, we have invested and capitalized a total amount of EUR 12.1 million capitalized in the balance sheet. During the year, we have also been building up our scaling capacity, acknowledging that this could be done the best through partnerships with European suppliers. In addition, we have also done select internal activities, largely in Seville, in Spain, to strengthen our internal organization. This results in a loss for the year of EUR 7.3 million. This corresponds to an average monthly burn rate of EUR 0.6 million. That is roughly at the same year as for 2022. We are acknowledging that we are to balance strong cost discipline with also building the necessary upscaling capacity that we need for the years to come. In addition, we have to mention the successful equity raises that we have done through the year that has provided us with net proceeds of EUR 12.2 million in financial markets. That has been quite challenging. We also acknowledge the strong alliances that have been entered into with shareholders such as Spirax Group, Iberdrola, and Klaveness Marine, which is coming in very strong and nice way as we develop the company together. So with these three pillars, we have, during 2023, established a solid foundation and upscaling capacity as Kyoto Group now is ready to enter into new commercial contracts. OK. I also would like to take you back to Capital Markets Day last year. We talked about the great and huge potential for decarbonization. We see a global market of 370,000 installations similar to the Heatcube. We welcome very much many players to mature this market together with us, being confident that we could take a leading role here. Our first priority is to sign contracts in Europe. You see the huge potential of 50,000 installations similar to Heatcubes. You heard earlier today also Tim talking about the increased attention now coming from the U.S. side, which is also representing a quite large potential market-wise. Clients are asking for offers from us. Partners are wanting to explore the possibilities for the Heatcube in the U.S. Investors are also wanting us to discuss the potentials. Of course, we are carefully considering and exploring the possibilities relating to a U.S. entry. Of course, there are important questions to sort out before such a strategy could be both approved and pursued. OK. Let's move on to the main topic from my side today. I would like to take you into the unit economics of our cases. A majority of the industry is producing heat based on natural gas setups using the gas boiler. In their setups, they are exposed to natural gas prices, levies, and transportation costs, as well as CO2 prices. Let's look into the prices. What does then the consensus say about price development? The gas prices seem to be developing quite flat in a range of 30-40 EUR, while the levies and transportation costs are expected to be increasing. That is taking place already in a very short term. In addition to this, we see this steep increase in the CO2 prices. So all in all, this is coming together in a totality that is imposing high heat costs on the industry. Today, we lay out to you a heat cost sensitivity. In the table to the left, we present the heat cost as a function of the natural gas price on the vertical axis and the CO2 price in EUR per ton CO2 on the horizontal axis. Let's assume that we chose a natural gas price of EUR 35. Combining that with a CO2 price of 100, then that leads us to a heat price of EUR 85, which is quite substantial. Then adding on to this, that levies are varying across our target markets. We see then in the near term a heat cost in the range of EUR 80-EUR 100 per MWh. Looking towards 2030, we see that the heat costs are expected to increase to the range of EUR 85-EUR 110 per MW, of course, then impacted or increasing due to the levies and CO2 price increases. To summarize this into a unit economics picture, we see then the buildup of the reference heat price, the natural gas price of EUR 30-EUR 40, the levies, EUR 12-EUR 20, combined with the CO2 prices and the equivalent of EUR 20-EUR 22, on top of this O&M ending up with EUR 80-EUR 100 as a reference cost for heat price. So what is the solution then to bringing down the cost? We offer you the Kyoto Heatcube, which will then be charging the Heatcube into the electricity markets. We will be offering also the Heatcube into the balancing markets as a flexible asset. This comes with an electricity cost in the range of EUR 35-EUR 50. I will be coming back to the details on how this could be looking in a short moment. In addition, we see levies that are varying quite substantially. EUR 10-EUR 20 is the average that we are pointing to here. We also see that countries are introducing OPEX subsidies to offset this. The net range that we indicate in this unit economics is EUR 10-EUR 20, on top of this, also the O&M cost. That is leading us to customer savings when replacing the gas boiler with a Heatcube in the range of EUR 20-EUR 32 per MWh heat. That is substantial. If you then combine this with the business cases of the customers, we typically see savings that are resulting in an internal rate of return for the project in the range of 10%-17%. In addition, these also give payback times typically six to 10 years. And from our perspective and from our experience, these are levels that we see will be triggering investment decisions on the customer side. OK. Let's move into the electricity cost and the EUR 35-EUR 50. So how are electricity costs and lower electricity costs achieved? We are sourcing the Heatcube in the day-ahead power market, sourcing at the cheapest hours of the day, typically 69 hours. And for those of you that are in the Nordics, we have been experiencing quite low prices for some hours in the recent time. We have been seeing prices plunge to zero or even negative. Of course, that weighs very positively into the average cost of the electricity source from the day-ahead power market. In addition, we could also operate the Heatcube in the inter-day power market. That is further reducing the cost with 15% on a continuous trading basis. We could also offer the Heatcube into the balancing power markets. Bjarke gave you a very good update on the different markets. We see that there is a revenue potential from the balancing services for our Heatcube, typically EUR 10 per MW per hour. So when all this is coming together, we could see in continental Europe a price of the electricity or the power that is going from EUR 60 down to EUR 40, meaning that we will be achieving a 30% lower electricity price from going from only the day-ahead power market to exploiting all the possibilities in the different power markets. That said, the best cases that we are really seeing are the cases where we have off-grid solar PV or wind installations. And that is typically happening in southern Europe. And we could there see then potential power prices, electricity prices down to EUR 40-EUR 45 per MWh. And as you know, these off-grid solutions are coming out without the grid cost. So these are very affordable, very interesting. In addition to this, we also see the introduction of green PPAs with storage that also comes with very affordable cost. OK. I think that concludes what the perspectives that I bring forward on the unit economics. Allow me also to lay out some perspectives on our journey, our roadmap for Kyoto. In 2023, we really established the foundation for our scaling up and our scaling up capacity. As we now go into 2024, we really have the organization in place and the partners in place to enable us to move into more contracts. Referring back to the presentation from Tim earlier today, he presented the market value for the Heatcube projects, for the six Heatcube projects, for more than EUR 40 million. And it's good to see also that the Kall project is representing EUR 6.4 million of these. Moving forward for the next years then, we hold on to our ambitions of bringing Kyoto Group towards EBITDA break-even at the end of 2025. We also lay out the potentials of being a $1 billion revenue company. You heard Tim presenting the commercial pipeline that we currently have and the potential scenarios on the revenue side. With this, we see a very prosperous future and a very high potential for Kyoto. Allow me to conclude with some few comments on the long-term funding plan to support our growth ambitions. You have been hearing earlier today. If you have been following us, you know that we have been successfully raising money during two rounds in 2023. We have been partnering up with NEFCO. We have a good starting point. Then we also aim to secure additional funding towards our EBITDA break-even, supporting the growth ambitions. We fully acknowledge the value of the partnerships with Iberdrola and Spirax Group, acknowledging that this strategic alliance goes far beyond the pure investment figures. We also pursue different options for public funding, both on the Nordic side as well as from the EU sources of public funding. There are interesting prospects going on as we speak. On the working capital side, we are exploring a wide range of alternatives to massage this to ensure that we are having an optimal setup for our projects that are coming up. On a continuous basis and on the backdrop of the strong achievements last year, we have been sparking an increased interest from various types of investors. We are evaluating various avenues to finance the company and the projects. And of course, we always focus on maximizing shareholder value when we are looking into both equity and corporate debt options as well as public funding. OK. I think that summarizes the high-level perspectives on our roadmap as well as the funding perspectives that we bring to you. Thank you very much. This concludes the Kyoto Group Business Update. I would like the management team members to join me in front on the screen. OK. I see that we already have got some questions in. The first one I would like to address: "You seem to be perfectly placed in providing demand flexibility, balance wind and sun. But things have taken a long time. Are you disappointed?" I think we shall I start or? Are you disappointed in the process and decision processes among potential customers? So maybe Camilla should start out there. Yes. So first of all, we acknowledge that things have taken longer time than we hoped for and wanted. I don't know if disappointed is the right word. We are working very close together with our industrial partners to help them pull the projects over the finishing line. So this is our main, I would say, the main focus area for us and where a lot of our energy goes in. We have developed a process in Kyoto, which we call How to Spot the Pioneer. And that is what we have done to find the potential partners who have the capabilities to move fast. We are looking into: do they have a grid connection? Are they exposed to CO2? So is there real motivation in-house for the industrial client to move fast? So we are working day and night to find out ways to shortcut decision-making process. But I think this goes for the whole industry. The decarbonization, the electrification of the industry is not moving fast enough. And it's not just one-by-one plant. It's the whole situation is not moving fast enough. And we are getting help from political incentives to mobilize this. But that takes a bit of time. So all in all, I would use the word disappointing. Yes, it's disappointing that we, as a society, are not able to mobilize this faster. I'm not disappointed with our clients. We are working very hard together with them to try to speed up things together. OK. Then I think we move on to Bjarke. The reserve market is a big driver for stationary batteries. Do you also see this as a big driver for Heatcube compared to the original idea of providing process heat? For sure. It's really a revenue-generating aspect here. I think we have learned a lot from how batteries are doing and really focusing on developing a product that can utilize these aspects. I think the most important thing for Kyoto as a whole and for our product is that we are developing an agnostic approach to the energy market. And what I mean by that is that you're going to see different countries going in different directions, which means that the energy market in the different countries, the value of the value and the money which we can grasp is going to be in different markets across Europe on different times. But with Heatcube being agnostic around where it's taking the lowest and cheapest cost of electricity, we are positioning ourselves to simply just utilize it where it makes the most sense. And I think we are simply just preparing for what's going to happen with the massive introduction of renewables in the market. OK. Maybe a question to you, Tim, on the commercial side. We could start out with the commercial side. When working on a Kall project, what is the biggest difference compared to the first installation in Denmark, if we take the commercial perspective and the tech perspective afterwards? So this has been a commercial project in the sense that we have been competing with other technologies and showing that the Heatcube provides the best flexibility for the market. We have set up a very unique company with the project financing partner Kyotherm and the energy trading company Energiabörze to serve the green steam to Kall Ingredients. On the tech side? It's obvious, of course, you are maturing as a company. I think I mentioned this before. But with the Heatcube in Norbis Park, we basically have built the company by building our first Heatcube. And now we are harvesting the fruits of that process. I think without having done Norbis Park Heatcube, we would not have been in the place where we are right now in relation to Kall. So it's two completely different things but cannot be done without each other. So I think it's just the natural development of what we are seeing in a product like Heatcube, which we are developing. And then a question on the financial side. Hi. In the overview of the savings for the customer with a payback period of six to 10 years, where is the cost for the Heatcube allocated? The waterfall with showing the cost is an OPEX perspective that is shown. Of course, that is combined in our analysis with the full business case calculations, with investment costs, with other costs as well. And that is coming together in the payback period of six to 10 years. And then maybe one question at the end, maybe to you, Camilla. The focus on the U.S. and the IRA as a driver seems interesting. Could you expand on your thoughts on this? Yes. So I think you who have followed us have heard us focus on Europe. We have said that we want 5-10 installations in Europe before we go broader because we need to focus and we need to get Heatcubes into operation. But the interest is increasing intensively from the U.S. The political mobilization, coming largely from the Inflation Reduction Act, is sending customers, clients, business development partners to us knocking on our door to the extent that we have said that, OK, we at least need to evaluate what this opportunity is and if we are able to cope with this without disturbing the installation in Europe. We have not yet made the final decision to go US. But we have made the decision to prepare and evaluate. We are responding to requests to identify what the potential would be for us, what the Heatcube would cost in the US, what the supply chain would look in the US, and what the whole commercial setup would look like. That's why we, today, decided to start showing this and will come back within shortly on any potential final decision on going US. But it's moving quickly in the American market. OK. Then the last question. And that is to you, Tim. Where do you see more potential Heatcube development in the near term, with off-grid PV or when utilizing ancillary markets? We've seen both in your presentation, both curious which one you perceive as better in the next year or two. I think both have a great role to play. So if you're looking at different markets, we're going to apply different business models and different focus areas. Spain is very interesting for off-grid PV installations because we have a very good production of energy through these installations. At the same time, you have markets where the grid is not built to cope with the increased demand of electricity. And in these markets, you see high prices paid for flexible assets in the grid. So we are utilizing both approaches. It depends on the country and the region in which we play, in which we have the opportunities where to focus on. OK. Thank you very much for attending this Business Update from Kyoto Group. I think that was the last question we were able to cover today. Thank you. Thank you.