Hello, and welcome to the ReFuels Q1 2024 presentation. Today, we have with us CEO Philip Fjeld and CFO Baden Gowrie-Smith to walk you through the results of the first quarter. Philip? Thank you very much. Thank you to all of you online. We're pleased to be here today and to take us through Q1 2024. So what is ReFuels about? We're about decarbonizing Europe's truck fleet by offering biomethane or Bio-CNG as a fast-track option to decarbonize fleets. We are targeting 30-40 stations in operation by the end of 2026. We listed in May here in Oslo on Euronext Growth. Got 12 stations in operation today. We've had strong growth in truck numbers and volume, which you'll see from later on in the presentation, and something we're very proud of is that we have reduced or removed 120,000 tons of greenhouse gas emissions over the last 12-month period. So what does a typical CNG station look like? A lot of you might think of a regular petrol or diesel forecourt for cars. That's not what we do. This is a typical CNG station we've got. Can refuel up to 80 trucks per hour, takes about eight minutes to fill a vehicle, and at full capacity, we can do somewhere between 500, maybe 700, 800 trucks per day. ReFuels, as a company, is a vertically integrated supplier of bio-CNG or biomethane. All the way from upstream, where renewable and sustainable gas is produced, all the way down to downstream, which you see here on the right-hand side of the slide, to the broad customer base that we've got in the UK. And once again, you'll see that a bit later on, the growth we've had. So if we then go into the business update, what did we actually get up to in Q1? First of all, we had year-on-year growth of 74%. So that's a, you know, a strong number, but something that we expect to continue going forward. We expanded our station network in Q1. We opened our 11th station. We've since had another one open in July, so we're now up to 12, meaning we now have a capacity to refuel as many as 6,000 trucks per day through our station network. We listed in May, a big milestone for the company. And as part of that, we merged with Renewable Transport Fuel Services, our exclusive biomethane supplier. So just take a look at some of the key figures. Dispense volume, as I already mentioned, up 74% year-on-year. Truck numbers up 69%. Customer fleets, another metric we're very proud of to see it growing, up to 128 fleets using our network in Q1. And certificates, or RTFCs, Renewable Transport Fuel Certificates, got up to close to 40 million, once again growing 74% per annum. As previously mentioned, we have a transformational acquisition of RTFS, which now means that we are no longer only, you know, downstream-focused, and we now cover the entire, the entire supply chain here, all the way from, from biomethane production down to the customer and, and, and the dispenser nozzles. Once again, get a bit more into that in a bit. So the company got listed in May. One of the few listings that have gone through so far this year. We raised just north of NOK 53 million. Why did we raise? You know, the company's 9 years old, why didn't we just stay private? It gives us access to a wider investor base and gives us, you know, different option with regards to to financing and and our long-term growth plan. The market cap close to or just north of GBP 1.8 million, 1.8 billion, sorry, in June. And management owns close to two-thirds of management and board, sorry, close to two-thirds of the shares. Once again, looking at our growth, 74% growth quarter-on-quarter. Mentioned previously 11 stations, previously 8. I think what's important to understand from this graph, as you will see, it started in April 2016. It took us up until probably late 2020 to really accelerate the company growth and really get into mass adoption. The growth rate that we're at now is something that we expect to see going forward. Mentioned the two new stations, one in Newton Aycliffe, which is our largest station to date, can refuel 14 trucks simultaneously, 80 trucks per hour. In July, we opened Corby. Both of these stations, I think, are good examples of what we're now doing across the UK, which is build stations in strategic, very important logistics hotspots. They fill in, you know, areas of the map where we're currently not covered, and they provide our customers with very valuable additions when it comes to where they can run CNG trucks. I think it's important to understand here that if we would have more stations in operation today, we would have even stronger growth, because we've got a lot of customers who currently can't order vehicles, or who aren't fully utilizing their vehicles because we are lacking stations in certain areas. Which, of course, is something where we are planning to address, but it's just an important, I think, point to make, that we are not constrained by, you know, demand side of our customers. Currently, our constraint is the amount of stations we have in operation. So what are we doing about that? What are we, you know, how are we trying to address that? Now we, we have a land team of six people who are dedicated to only one task really, and that is to bring sites forward to something that we call shovel-ready, which is when they are ready to to build. Just over the last year, our pipeline, if you want, or station pipeline, has grown more than 300%. We now have, you know, well over 100 sites that are moving through this pipeline, but more importantly, we have 18 sites that are in either late-stage development or in build or under contract. That means that we now have a, you know, we are constantly adding, of course, sites to to this, to this process. And that gives us a healthy backlog, a very strong backlog if you want, so that we can continue to roll out and really accelerate our construction program for stations going forward. You know, we've got 12 stations today. Company's nine years old. You know, it's taken us a long time to get to 12 stations. But going forward, and as you can see from this slide, we do have a target of getting to around 2-3 stations going into construction per quarter going forward. And that is the type of station build activity we need to see to fully capitalize and to fully, I would say, satisfy pent-up demand we've got from customers. We operate in the UK under something called the RTFO, Renewable Transport Fuel Obligation. And under the RTFO, we can generate something called RTFCs or certificates. The graph below here shows you the blending obligation and also the pricing. We have gone through a period with lower RTFC prices than we have seen over the last 2-3 years. I'll touch upon that in a bit. But what's important to understand from the RTFO mechanism is that this is a market-based mechanism. It's not a subsidy. It is a policy that's been in place from 2008, and it is a policy today, has no end date, and as such, is expected to last, you know, well into the future. So if we look at certificates, so we generate RTFCs by dispensing biomethane at our stations. However, the pricing of an RTFC is determined essentially by the spread between one liter of fossil diesel and one liter of biodiesel. What we've seen in Europe over the last typically nine months is that we have seen a record volume of biodiesel and biodiesel feedstocks being imported into Europe from China. This has resulted in biodiesel pricing and biodiesel feedstock pricing being pushed down significantly in Europe, and as much as two-thirds of European biodiesel production capacity is currently idled, is not in production. Only a couple of weeks ago, the European Commission announced that they have launched an investigation into this, not just one, but several investigations actually, to look into fraudulent activity of importing mislabeled biodiesel and biodiesel feedstocks into Europe. Based on what we're currently seeing in the market, based on market reports and participants in the market we are speaking to, this is already starting to have an effect in the market, and we are expecting the RTFC market, but the biodiesel market or the biofuel market in Europe to slowly come back to its normal balance, if you want, over the near to medium term. We sold about a third of our RTFCs for 2023, that we expect... Sorry, for financial year 2024, that we expect to generate this year. We sold them last year at higher prices than the current spot prices, but we are still exposed to the prompt or spot price reduction we have seen in RTFCs. With that, I'll hand it over to Baden, to take us through the financial update. Thank you, Philip. So this is the first period in which ReFuels has been listed. The group was formed through a consolidation of ReFuels N.V., which was a shell company, up until May 5th, when it combined via a share exchange with CNG Fuels. On the 11th, and that is the start of the trading period, which we see here for these financials, so the 5th of May through to the 30th of June. 11th of May, as ReFuels also acquired RTFS, Renewable Transport Fuel Services, completed a private placement, and then on the 12th of May, we listed on the Euronext Growth Oslo. Revenue for the period was for the shortened period was 17.1 million GBP, and this is this is made up of a group, a combination of the activities from both CNG Fuels and Renewable Transport Fuel Services. Gross profit for the period was was a loss of 2.1 million GBP, and an EBITDA loss of just under 6 million GBP for the period, but adjusted down for share-based payments and transaction costs. I'll run you through a breakdown on the next slide of the different costs associated with this. The listing itself brought in 4.6 million EUR on a gross basis on stock exchange, and the process... Sorry, in the private placement and the process, and we now are actively engaged in a process to raise the station funding required after the end of the GBP 100 million pound facility, which was provided by Foresight. Foresight provided us with an additional GBP 20 million pounds last year, and we now have two—two CNG stations remaining as a post-balance sheet. So post this period, we still have two CNG stations remaining, two taken to build with that facility, and we will deploy the rest of those funds over the next year. And we will, we will, undertake this process to raise the funds for, to take ourselves to our 30-40 station target by the end of 2026. Thank you. So gross profit was broke, gross profit was heavily influenced in this period, by the lower RTFC prices, that the business was able to recognize during the period. As a group consolidation, we brought together two businesses that had a number of transactions that were conducted with each other. As a part of the consolidation, this involved eliminating some of the intercompany transactions and moving the periods forward by two months, which generated an additional gross loss in the period, essentially general accounting changes of GBP 1.6 million. In the same period, we also had an EPC loss. EPCs are the contracts we have for the development of CNG stations within the CNG Fuels Foresight joint venture. It's important to note that over time, the EPC revenues and EPC costs are net to zero. However, during the end of the period, we were coming very close to the end of the development of two CNG stations, so that is the way that revenue had to be recognized, and loss recognized in that period. In addition to this, we also had the bulk of our listing costs were recognized during the period, leading to an additional loss of transaction costs of GBP 1.1 million. There were share-based payments to employees for their incentivizations, which we had to complete prior to the transaction, so that will also create an additional loss. Then we had a very large amount of pipeline research and development costs in the period due to us bringing many, many of our stations maturing for near-term development, and so that cost is elevated, which is above where it would usually be. We recognized a very large intangible and goodwill balance on the completion of the consolidation of two large businesses into the business at the start of May. So that explains the large non-current assets balance. We have current liabilities, which also involve a number of deferred assets, deferred liabilities, and balances, and accounting balances in the same period. The cash flow was we brought in GBP 9.4 million from the acquisition of RTFS into the business, as well as about GBP 3.6 million worth of net cash flow from the private placement itself. At the end of the period, the combined entity had GBP 6.7 million remaining in cash. Thank you, Baden. I'll then take us through the market and outlook. If we take a look at the market that we're operating in as of today, all of our stations, all our assets are operating in the U.K. That doesn't mean that we're not looking at growing outside of the U.K. Touch upon that in a bit. But if you look at the total market size that we are, you know, targeting in the U.K., there are about 250,000 trucks on the road in the U.K. from 18 tons and above. Now, that segment again can be split into roughly two sections. One of them is the rigid truck market, and the other one is the articulated truck market. Articulated is the semi-trailer combination, the ones you typically see go, going up and down motorways. Now, that is the heaviest end of the so-called heavy goods vehicle spectrum, and that is our target market. If you look at the end of June, we had about 1,350 trucks using our station on average every day. However, we have visibility on truck orders that our customers have placed, which means that on that visibility, on that trajectory, we expect there to be well over 2,000 trucks using our network 12 months from now. Now, of course, that's not counting orders that we don't know about, and that's not counting orders that may or may not be placed, you know, tomorrow, a week away, a month ago, a month away, et cetera. But that's just to illustrate that, you know, going forward, we have visibility of approximately 900 additional trucks hitting the road. So what can the total market look like? Of course, that becomes speculation. What it could look like in 2030, those aren't our numbers. Those are transport consultants, but, you know, somewhere between 50-90 thousand trucks on the road using biomethane CNG in the UK by 2030. Now, of course, we only need a fairly small part of that market for the company to achieve its growth ambitions, but it's important here to understand that we're nowhere near market saturation. We're really only getting started on moving diesel vehicles off the road and replacing them with something greener and more sustainable. When our customers make an investment decision, they need to see a business case for ditching a diesel truck and ordering a CNG truck. A CNG truck is typically more expensive to order than a diesel truck, GBP 20,000-GBP 25,000 more expensive, so therefore, the fuel cost to them is very important. What we've seen, you know, over the last six months is that the fuel cost savings that our customers have experienced in the past, that this graph shows, have now returned and are now above the average of fuel cost savings that we've seen. What you see here is a lot of volatility in 2021 and in 2022. Now, what is that about? That essentially is a good illustration of the energy crisis that hit Europe, you know, the Ukraine War, Russian gas supplies getting turned off, et cetera, et cetera. And I think what's important to take away from this graph is that despite that volatility, our customers have continued to order vehicles, and now they've essentially been vindicated because of vehicles they ordered 6-12 months ago are now operating and are now seeing substantial savings, and the so-called total cost of ownership that they've enjoyed in the past has now returned. Another key driver for what we do and for the exposure that we have as a company is something called sustainable aviation fuel. Well, you might say, why is sustainable aviation fuel relevant to, you know, truck fueling market in the UK? Because it's all part of an international and the global biodiesel industry, if you want. At the end of the day, the RTFC prices that we are exposed to in the UK are essentially determined by the price spread between one liter of fossil diesel and one liter of biodiesel. Now, biodiesel is typically produced from something called used cooking oil or tallow. That, again, is a feedstock that can be used for, you know, to produce other types of fuel as well, such as sustainable aviation fuel. And there's only so much used cooking oil that is sustainable and commercially available around the world. We have mandates coming in from 2025 onwards. Here we just mentioned the EU one. Of course, you've got the U.K. on top, and you've got U.S., and so on and so forth. These sustainable aviation fuel mandates will require a large quantity, a very large quantity of used cooking oil to be supplied to produce sustainable aviation fuel. We expect that used cooking oil to be taken out of the road transport sector and to be put into the sustainable aviation fuel sector, thereby likely creating a structural short of used cooking oil, a structural short for road biodiesel, which could have, and is likely to have, an upward price impact on RTFCs in the future. If we then look at our stations, what do they cost? How do they generate revenues, etc. A typical station costs about GBP 6 million to build. Maybe a bit more, maybe a bit less, depending on the size of the station, whether we buy the land, lease the land, et cetera, et cetera. A typical payback period is about 5 years, providing very strong economics, cash generation, and IRR from that. As we've previously mentioned, going forward, we have an ambition to get to 30-40 stations by the end of 2026. As Baden also mentioned, we have a process now ongoing to raise that additional financing that is required to take us up to that level. Once again, we are U.K.-focused today. We're not hiding that fact. We have a lot of growth left in the U.K. Does that mean that we are only U.K.-focused? No. We're also looking at opportunities across Europe. That said, you know, we do not want to move into Europe at any cost. Those will need to be opportunities that, of course, are strategic, have a nice strategic fit with us, but are also something that, you know, we can benefit from financially near term, and not something that will take us many, many years to capitalize off. There are some interesting opportunities we're currently looking at. We can't give any timelines as to what that would look like. But if you look longer term here, there's no doubt that the IP that we've built in the company, the footprint we're now building in the U.K., the experience we've got, is something that can be replicated and would be very attractive in some countries in Europe. Are we only focused on biomethane? For now, the answer is yes. The bread and butter of this company for many, many years to come is going to be all about putting biomethane, as much biomethane as possible, into as many trucks as possible in as short a timeframe as possible. Does that mean that we are not interested in looking at hydrogen or fast charging for large trucks, for battery electric trucks? Absolutely not. You will see us get involved in trials, but both of these technologies today are not mass adoptable. They are not... There is not a business case available today. There is not necessarily vehicles, refueling infrastructure that can handle the type of operations that our customers typically need. So you will see us get involved in trials in these spaces, but we just wanna highlight that we will not necessarily be a one-trick pony in the future, but our bread and butter and the profitability of this company will be focused on biomethane for many years to come. So to summarize then briefly, before we take some Q&A, we had, you know, 74% growth quarter on year-on-year, sorry, for the last quarter. That is a growth rate that we expect to continue going forward. Can't guarantee it's gonna be 74% every month, but it's going to be in that ballpark going forward, and we have that confidence because we know or we are aware, and we are informed of truck ordering plans from our customers. We are very keen and are actively working to build as many stations in the UK as possible. As previously mentioned, we have now a well-stocked portfolio, a well-stocked pipeline of sites coming through, and you will see us, you know, ramping up our construction program, going forward. And finally, yes, the company is exposed to RTFC pricing, you know, renewable transport fuel certificates, for the biomethane that we supply. While we are now going through a temporary dislocation in the market, we are fully convinced and believe that there are strong, supportive market dynamics here, structural market dynamics in the biofuel sector, that will be supportive of RTFC prices, going forward, not just over the next, you know, six months, but for many years to come. And with that, I would say thank you, and we'll take take some questions. Yeah. Thank you very much, Philip and Baden. We'll now move on to the Q&A. I can see that we've received a couple of questions in the chat. I'd like to start the Q&A off with a question from myself. You mentioned that there's about 250,000 heavy goods vehicles on the U.K. roads at the moment. How is it looking from the suppliers of the heavy goods vehicles? Are they opening their eyes for Bio-CNG trucks in a larger extent than they have been previously? That's a good question. So first of all, it's important to understand that a Bio-CNG truck, as such, is not unproven technology. There's nothing new about this. CNG trucks, gas engines, have been around for decades, so this is proven technology with a proven supply chain. The reason I mention that is if you look at some of the other alternative fuel options, those are new, new trucks, if you want, reliant on an entirely new supply chain. So that, you know, gas trucks and CNG trucks as such, rely on a supply chain that exists and has strong scalability. That said, of course, truck manufacturers, they live in the here and now. They wanna make money. They're like all other companies, they need to generate profit in order to reinvest. So they have had, and some of them have had limited production capacity for gas trucks in the past. That's now changing. You know, we heard, I won't mention names here, but we heard of one of the truck manufacturers just a couple of weeks ago, who is now going to build a dedicated production line for CNG trucks. You know, as of today, we don't think our customers are constrained by the amount of trucks, gas trucks, that the manufacturers can produce, but clearly, that will become an issue in the future when you look at the growth we've got, if they don't take steps now to increase their production capacity and to increase capacity within their supply chain. But that is happening, and that's not something that we expect will be a growth hindrance going forward. Thank you. Moving on to the questions from the chat. The first one out is about the station network. Mm-hmm. So you're planning to build up to 28 stations in the next three years. How do you plan on funding this expansion? Yes. So, as briefly touched on, we have a live process going that is happening right now. In order to find a financing partner with the same ambitions to deploy the capital we need to get to 30-40 CNG stations. The Foresight facility will take us up to about 14 high-capacity CNG stations, leaving obviously the remainder up to 10 potential 20-26 sites at about GBP 6 million each. The ambition for the business, of course, having raised the last major finance in 2020, when CNG stations were much newer, much more of a novel concept than they are now. We believe that we can secure a cost of funding and a structure of funding that benefits our shareholders for the remaining capital. We'll, of course, update the market as and when that process has more clarity. Thank you. On to the next one. The average fuel cost savings to convert from diesel to Bio-CNG is now close to 30%. How are fleet economics affecting truck operators in the short and long term? It's an excellent question. When we started to see, the energy crisis, sort of the first wave of the energy crisis, if you want, in Europe, set in during the second half of 2021, we didn't know what to expect. We were expecting, some of our customers to potentially park up trucks or cancel orders or no longer place orders because they were unsure what the future would hold with regards to the cost of gas, cost of diesel, and the cost of running vehicles. So therefore, we went into basically 2022, slightly unsure as to what the future would look like when it comes to, at least near-term future would look like for orders. We were proven wrong, basically. Customers continued to order. Why? There were two reasons for that. One is, they have to decarbonize. We have a lot of customers who have very strong, ambitious targets with regards to reducing greenhouse gas emissions from their transport operations. Some want to be 50% to net zero by 2025, some wanna be 100% in 2028, some wanna be, you know, 100% in 2030, 2035, et cetera. In order to get there, you can't just wait for something to come along in a year or two. So they have to decarbonize, which means that despite the volatility in the market, you have to look through the volatility and continue to order. The second point was that even if you, you know, removed yourself from the craziness of some of the daily and weekly volatility we had in pricing in 2022 and 2021, the futures curve back then, even then, indicated that there would be a positive business case when comparing diesel to Bio-CNG. So a lot of our customers sort of could look through the haze, if you wanted to, to what it looked like, and that's now paid dividends. If you now look at the business case, total cost of ownership, for our customers, it's back to where it was. That's also, I think, one of the main reasons for now why we are seeing orders, and very large orders, that haven't been placed yet, but they are being quoted, because the confidence is now back in full. Yeah. Thank you. So the next question is, about RTFC prices. Mm-hmm. The RTFC prices have dropped in the quarter. Could you please elaborate on why the management believes prices will normalize going forward? Good question. And a very, very relevant question, and of course, a very topical question for us. So first of all, RTFC prices, as I've previously mentioned, are determined by the price spread between one liter of fossil diesel and one liter of biodiesel. What we've seen in the biofuel market in Europe in the last six to nine months is this huge wave of Chinese biodiesel and biofuel feedstock that's come in and has fundamentally distorted the market. That is now coming to an end. Why? Well, we see that on data. We see the EU Commission is now taking action. And we hear market chatter, and we have visibility on, you know, confidential information, et cetera. So we are confident that, you know, the biofuel market will rebalance. If you go back a year, RTFC prices were trading in the GBP 0.35-GBP 0.40 range. Now they're about half, or a bit less than half... Sorry, a bit more than half, of that price. So we believe it will rebalance, in the not too distant future. You've also got longer, more structural trends here. I mentioned sustainable aviation fuels, which are gonna come in, and potentially have a huge impact on, the amount of used cooking oil that can be used or will be used to produce biodiesel, which again, will have a structural upward pressure, on pricing. So yes, we remain confident that RTFC prices will normalize. Whether that will be next month, or 2 or 3 months away, or 6 months away, is hard to exactly determine. But yes, this is a process that we can already see is underway. Thank you. So now we've got a question from Adam Forsyth. Do you see the introduction of, the introduction of RFNBO certificates in Europe impacting hydrogen relative to CNG? It's a very good question. I think the policy landscape... Let us be clear on one thing, there is not one necessarily homogenous policy landscape out there. There are different member states have their different ways of dealing with decarbonizing transport. There are some, you know, interesting things that may or may not be introduced, as part of, as part of RED III, Renewable Energy Directive III, as part of EU policy going forward. When it comes to hydrogen, it becomes, for us at least, it becomes a speculation. What might it be in the future with regards to as a transport fuel vector? It's really hard to say, because as of today, there isn't really a market for it. Sure, there are some demo trucks around, and sure, there is some green hydrogen production around, but it's not at the scale that we need it to be. So the fact that we might have RTFC, you know, certain other policy come into, come into play here, it becomes really hard to say what impact that will have on the market in the future. Do we believe that hydrogen has a place or role, sorry, has a role to play? Absolutely. At what scale is too early to say. I'd say we're probably 2-3 years away from knowing exactly what role and what size role it will play in the future. Thank you. So another one from Adam. What will the impact of any HEFA cap for SAF be on UK RTFC pricing? Lots of abbreviations there. All right, I'll unbundle that one slightly. HEFA is essentially an abbreviation for sustainable aviation fuel that will typically be produced from used cooking oil or from tallow. Excellent question. Really hard to say what impact it would necessarily have. And this is not me trying to dodge the question, but you have to remember that the sustainable aviation fuel mandate in the UK has not yet gone into legislation. There is strong confidence it will be implemented on the first of January 2025. There is guidance out there. There has been a consultation on this. But there are still lots of moving parts here with regards to how it will... If there will be a HEFA cap, what the size of the HEFA cap will be, over what years it will be—it will come into effect, and so on and so forth. I think, you know, regardless of HEFA cap or not, sustainable aviation fuels, over the next five years, will be dominated by, HEFA as a production way, meaning it will come from used cooking oil. Why? Because all the other sustainable aviation fuel, production technologies, are less mature and are not available to produce at scale that we need. Which is why we believe, not just in the UK, but in the EU, that the use of used cooking oil and tallow as a feedstock to produce sustainable aviation fuel, will have a meaningful to potentially very strong impact on biodiesel production and biodiesel feedstock production, and thereby creating a potential structural short in the road transport market, which should be beneficial for RTFC pricing. But back to the question from Adam, it's really hard to say what impact it will have on RTFCs under a UK sustainable aviation fuel mandate, because the legislation hasn't been finalized yet. Thank you. So, we're moving on to the final question now. If there are any more questions in the audience, please post them. So, to what extent are the higher capital costs of CNG trucks relative to diesel a function of low volume sales? Could... sorry, there's another one in there. Yeah. That's fine. Could this differential narrow with higher CNG truck volumes? The answer is yes. As truck volumes crank up, that differential will for sure narrow. Why? Because we've seen it narrow already. When we founded the company in 2014, the differential was GBP 30, 35, 40 thousand. Now, depending on who you are as a fleet customer, it's GBP 20, 25 thousand. If you're a really large fleet owner, operator, logistics company, you might not be paying much of a premium at all. So yes, we've seen that premium come down. And I think that's an important takeaway from this as well, is that as this matures, of course, the economics here should become even more robust, for our fleet customers, because they don't necessarily have to pay GBP 20, 25 thousand more for a truck. Yes, we see that as mainly a function of production volume, and as production volume now gets cranked up, we would expect that differential to continue to narrow. Right. Well, thank you very much to ReFuels. So I don't see any more questions in the chat, so, so I think we'll, we'll wrap it up there. If there's any follow-up questions to the management, I presume you can contact ReFuels through their website. Thank you very much. Thank you. Thank you to the ones online.