Good morning, and welcome to the Arise Q2 2022 Earnings Call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing star then zero on your telephone keypad. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note that this event is being recorded. I would now like to turn the conference over to Per-Erik Eriksson. Please go ahead. Thank you very much and very much welcome to the quarter two presentation from Arise. I will start giving a short introduction to the company. Markus Larsson, our CFO, will go through the Q2 results. We will give you some highlights on the quarter and also the agenda moving forward, and we end this session with a Q&A session. Starting with slide three, some brief introduction to the company. Arise was founded in 2007, listed at Nasdaq in 2010. We are a quite small company, 34 employees currently. We have three business segments. One is the Production, 139 MW, you can see to the bottom to the left. We have a Development business. Currently we have some 2,300 MW in our project portfolio. Also we have something we call solutions, which is our services business. Currently we have more than 1,800 MW under management. We also have a record level of projects under construction, including Tjärvallen and Lebo, the projects we will talk a bit more about later on. We currently have almost 800 MW under construction. That is our company in a very brief presentation, and I leave the word to you, Markus. Right. Thank you, Per-Erik. You can flip into the next page then. If we look into the Q2 numbers, the net sales for the quarter amounted to SEK 63 million versus SEK 36 million the same quarter last year. That is an increase that is in all material aspects driven by our own production. EBITDA totaled SEK 25 million, and EBIT came in at SEK 10 million. If we look at the comparable profit before tax, that amounted to SEK 7 million, while the recognized profit before tax was SEK -6 million. This is due to quite high FX effect on our Euro loans. As a result, the net income totaled SEK -6 million, which corresponds to about minus SEK 0.13 per share. Our operating cash flow was SEK 67 million compared to SEK 12 million the same quarter last year. If you look at cash flow after investment, that amounted to SEK -12 million as compared to SEK -43 million the same period last year. Our Production generated 61 GWh, which was in line with the same quarter last year, whereas the average income from the Production was SEK 675 per MWh, an increase compared to the previous year of SEK 420 per MWh. All in all, this resulted in an increase in the total income from Production to SEK 42 million compared to SEK 26 million the same quarter last year. The revenue recognition for Ranasjö - Salsjöhöjden. We will get back a little bit to that later, but it has been stopped for the time being due to risk of cost increases. We also signed an asset management contract with BlackRock during the quarter regarding a total of 219 MW in Finland. We issued our green bonds amounting to EUR 50 million. That, I think we could turn to the next page. As you probably have seen late last week, we announced the sale of the Tjärvallen project which was sold to Foresight for a total consideration of just north of EUR 100 million. That includes an upfront payment of EUR 75 million, which was received at closing and no risk associated with that. Then there's also a deferred payment or an earn-out payment of EUR 25 million. That one is payable upon the completion of construction and is dependent upon how the construction proceeds in relation to timetable and budget. The expected impact on earnings is approximately EUR 90 million in total over the years 2022- 2025, of which about EUR 75 million has been realized at closing. In connection with this, we also invest about EUR 17 million and thereby become owner of 9% of the now fully funded project. We invest alongside Foresight on equal terms. Vestas is providing 42 turbines with a total nominal effect of 277 MW, and they are acting contractors for balance of plant. Summing all this up, we believe that we've been able to develop a truly great project, which is reflected in the developer premium received of about EUR 100 million. On top of this, we're also very pleased to have the chance to independently co-invest alongside Foresight in the fully funded project, which we consider have very good prospects to achieve high returns. With that, I'll hand it back over to Per-Erik again, and on to the next page. Thank you. Yeah, we consider ourselves having a strong financial position, and a bit of background for that, up to the left, you see a bar diagram and a green line and an orange line. Looking at those lines, the green line, you can see that in 2021, we have divested some 1 GW of wind farms. Actually, we have now achieved 1.3 GW into this year. All in all, we have realized some 1.5 GW of wind power, which is quite an impressive number, we think. We have used revenues from this divestments to basically tidy up our financials and decreasing our debts. Looking to the right, you can see in Q2 we have now a net debt about SEK 290 million, some 21% loan to value. With the transaction we did with Tjärvallen, we now have strengthened our position further, and we have a clear ambition to accelerate our growth while retaining flexibility to maximize value created from our product portfolio. We aim for keeping a low leverage as we move forward, which means that we have a larger flexibility in terms of hedging for our production. With that, I think we flip to slide number seven, looking at our product pipeline. You can see here that we have actually taken out Tjärvallen since that is realized now. We have more than 2,300 MW in the late-stage development. We have still Lebo in the pipeline since that is still open, if we will keep it or if we will divest. Lebo is under construction, and we have that in taken over or in production in first quarter 2024. Next project to come after that will be Fasikan. We are still awaiting for the line concession to be approved. We expect to have that soon. That has taken more time than expected, but still we expect to have that decision quite soon. Then we have Tinnaberget and also Stormyrberget- Skallberget. Tinnaberget is in late stage of permitting process, in appeal process. Stormsdalen is in permitting process right now. On top of this, we have the early stage development. Could mention HT Skogar, 1,500 MW, contract, an agreement we signed last year. We expect, and that's a quite large potential, some 1,500 MW. We have a clear focus to use the situation we are in right now to be well-capitalized to expand our portfolio, both short-term, mid-term, and also long-term. Yeah, I think that's it. Can flip slide. Number eight, our growth ambitions, we will move into a bit of a new phase with growth, growing the company. We are well capitalized in order to make it possible to accelerate the portfolio expansion in selected markets. Selected markets is Nordics, Sweden, Norway, Finland, U.K., and Poland. We will grow the organization as well. We have planned for the coming 12-18 months to increase the organization by 10-15 full-time employees in all business segments. We are being well capitalized. We can also have a dynamic approach to realizing value from our portfolio. We can decide whether we should divest, keep or co-invest. For instance, we have a co-investment in Tjärvallen. We have Lebo where we can decide if we should keep it or divest it later on. This flexibility we believe will make it possible to optimize value. We also have the capacity now to acquire project rights in various stages as well as operating assets in cases we find that attractive. With that, we could move over to slide number nine. Some comments on current power markets. We are still on record levels in the Nordic market. We can see a continued upside on momentum in the forward power curve. Increasing fuel prices on diminishing Russian imports. We have seen that Russia decreased the export to continental Europe in June further for the decrease. The CO₂ prices are traded on a quite high level still, EUR 80-EUR 90 range. The hydrology in general is a normal level in the Nordics, but weak in Southern Norway, which is a strong price driver in Southern Norway. We can see SE4 have a stronger connection to Danish power prices, DK2 especially, in moving into the summer. We also see that the price areas, SE2 and SE1, have recovered during the quarter to higher prices. We still see industrial consumption potential to increase. In the longer term, our expectation is still that we will see a price area convergence to happen. Continental prices still or even more on record levels. We can see German prices in quarter four, about EUR 400 per MWh. Looking at the calendar year 2023, we are EUR 300 per MWh +. There are also a bit of fear regarding winter constraints in continental Europe. That will be quite interesting to follow. We also see as a consequence from this that a number of countries are now looking into possibilities to bring coal units back online. Also, there are discussions even in Germany to delay some decommissioning of nuclear as well. The security of supply is certainly a quite strong driver for corrections across Europe at the moment. With that, I hand over to Markus again. Yeah, thank you, Per-Erik. On next page 10. If we look at our realized prices and market prices on the left-hand side. As mentioned previously, our average realized price in our own production was SEK 675 per MWh. That is well below market average, and a consequence of one, the extreme volatility that we have seen in the quarter, and two, in combination then with our hedges, which are below the market average price. In terms of production on the right-hand side, the production was, as mentioned, in line with Q2 a year ago, but still 15% below budget. One should maybe keep in mind also that Q2 together with Q3 are the weakest quarters of the year. On the hedging side, bottom right-hand side, we have continued to hedge further, especially into 2023 and 2024. Prices that we've seen of around EUR 100 per MWh or even more is in our opinion very attractive levels. For 2023, we've hedged about 30% of our annual production volume, which we believe is a balanced level at the moment. Going to the next page on our projects that currently are under construction. Skaftåsen turbine delivery has been delayed, but that impact is partly or to quite large extent mitigated by our contract structure. We will probably see COD now in Q4 2022. Ranasjö-Salsjöhöjden, that project has been impacted previously by increase in cost of raw materials due to extreme market conditions. As we now see risks for further cost increases, the revenue recognition has been stopped for the time being. Our own project, Lebo, which we build in our own books, where the construction commenced just before summer, there are no deviations, and COD is expected in the first quarter 2024. Now, I hand back to Per-Erik again to wrap up. Thank you. The last slide, the key activities that we have communicated before regarding 2022, some update. If we start with the green financing framework that is completed, as Markus just said, we have issued a green bond of EUR 50 million within a frame of EUR 100 million. We had a decision to start constructing Lebo, 30 MW, 33 MW to be more exact, and that is done. Also again mentioned, we should mention that, we are building this on book now in order to maximize flexibility later on for value creation, to keep the project or to divest. We are extremely pleased to be able to finalize the sale of Tjärvallen. We promised to do that during Q2. We did not deliver on that. We missed that by three. Two weeks, but I hope you are forgiven when we look at the results from that transaction, which we think is very good. We are looking into preparations for to bring Fasikan, to realize Fasikan, 100 MW, depending on the grid concession. As said before, we really expect to have that quite soon. Fasikan will be hopefully something to work with, during autumn this year after holidays. We are in process to secure project pipeline in Poland and U.K. In Poland with a partner, we are in some discussions, there on different projects and different stages. In the U.K., we have earlier communicated that we are looking into greenfield on solar. We expect to have some results from this during autumn as well. On top of that, as also mentioned before today, is that we are now really focusing on improving our project pipeline to increase that. That is the focus areas at the moment. With that, I think we are through. Let's have some questions. Ladies, and gentlemen, we will now begin the question- and- answer session. To ask a question, you may press star then one on your telephone keypad. If you are using speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. At this time, we will pause momentarily to assemble our roster. Our first question is from the line of Olof Cederholm from ABG. Please go ahead. Hi, gentlemen. It's Olof from ABG. Tjärvallen, congratulations on that. Fantastic project. Just follow up on that. How is the contract structure protecting you from raw material cost inflation or turbine cost increases going forward? I suspect, given what's happening in other projects, that you've been very careful with that, but any more information would be appreciated. Yeah, I can take this, that one. Yeah, this is, first of all, a traditional what we call a ready-to-build sale, which means that the risk we have is basically the earn-out, as called. We have in this contract structure a turbine contract, and we have a balance of plant contract, including civil works and including the internal grid. On top of that, we have the external grid part, as well. Looking at the contract as they are right now, what happened now during the last year is that we all experienced an extreme cost inflation. This means that all contractor suppliers basically now have requirements on indexation to different raw materials. That is the case here as well. We have an indexation to steel, we have some other indexations as well in this part, in this transaction. I would say that the risks are. I think we have been quite conservative in budgeting the process. I believe we have a good buffer also in the earn-out. I think actually that it might be that we have now seen a peak also in the raw materials. For instance, steel prices, metal prices in general are moving south. We'll see what happens with fuels, et cetera. But all in all, I think actually we could have some upside in the indexations as it looks right now at least. All in all, I would say that we have a quite conservative approach for cost. Excellent. On the revenue recognition that you expect over the coming years, will that be sort of a linear profit recognition or how should we think about that? Yes, Olof, you should look at that as a linear revenue recognition, whereas typically we haven't started the revenue recognition yet. I mean, typically we take, say, between 30%-40% in a contingency buffer, and then the remaining part we start recognizing linear over the period, basically. Excellent. I have a question about Ranasjö - Salsjöhöjden. You're stopping revenue recognition for now. What needs to happen there for you to start recognize revenues again? As we all experience, we have quite extreme market conditions, and I could say, connected to what's happening in Russia, sorry, in Ukraine with Russia. You have seen steel prices rocketing, we have seen fuel prices also that has created an extreme market situation. In our contracts, there are some paragraphs we have to handle such situations. We are basically in discussions with our contractors on how to handle this extreme cost increases. We are not yet through those discussions and still things can move during the project on that. Ongoing discussions, we don't know the outcome yet, but we came to the conclusion that as there are uncertainties, we decided to stop really. That's it. Okay. Yep, I have two more questions, then I'll get back in line. On Lebo, when do you think you'll make a decision regarding whether to keep it or to sell it? Yeah, that's the whole idea that we should have flexibility to have an opinion about if it's good to keep it or not, or if it's good to divest or not. That we will not take that decision until we have it in ready-to-build, basically. That will be. Let's say that we will have a clear opinion in 2024. Okay. Excellent. My last one, the net financial costs. I understand you have debt in euros. Is that FX effect taking now in Q2? We should see a more normal financial net, or will the financial net simply go up significantly as long as we have these rates? I think if I understood the question correctly. I think the answer is, I mean, basically, during this quarter, if you look at the EUR to SEK, the EUR has appreciated maybe 3% or something to the SEK. The bank loan that we have amounts to now just south of EUR 14 million. There you have it. That's kind of the sensitivity on euro loans. Then again, on the other hand, we have all our assets are typically priced in euros and so on, which we don't see in the financial net. Yeah, that. I don't know if that was an answer to your question. No, that's perfect. Thank you. I'll step back. Again, if you have a question, please press star then one. Our next question is from the line of Henrik Alveskog from Redeye. Please go ahead. Okay. Hello, this is Henrik from Redeye. Do you hear me? Yeah, loud and clear. Yep. Yeah. Great. Thanks. Two questions on Tjärvallen from me. First of all, the stake that you're taking here, EUR 17 million, and corresponding to 9%, should we think of this as, well, EUR 17 million being a fair amount from your perspective? Or is there a reason, for example, why the principal owner wants to own over 90%, for legal or tax reasons or something else? No, I think you should see that as an independent investment from our side. We believe that investment have a good possibility to give a good return. What about the particular size of this? Is this what you consider a fair amount to invest in an individual project in this case? Would you have preferred to have more? No, I think this is a good size for us as a company, some EUR 17 million, and obviously we have some earnings in this project. For us, this level makes sense in this case. Since Tjärvallen is one of the or perhaps the best project we have experienced so far, we believe that this will be a good investment. We also have a belief in the market in SE1 and SE2 in the future with the increasing energy industry consumption, et cetera. We believe in this investment. Great. Okay, just on the estimated earn out of EUR 25 million, obviously it could be more than. Would you like to tell us what's the maximum potential? Also if these factors are, if it's depending on factors that you basically control or are able to influence. Yeah. Okay, thanks. Good question. I think the contractual structure, we're not disclosing that much details about, and you should see that the expected earn-out if the project goes according to plan is EUR 25 million. I mean, typically what we are seeing is rather than, okay, there could be some cost increases, which will affect it negatively. That is one part. The second part is related to basically delays of the project, which we've seen, for instance, in Skaftåsen. But there we have, as mentioned, for Skaftåsen and projects, for instance. To speak, the reduction of the earn-out contractually with a buyer that is offset by certain LDs or so that we receive from the counterparty, for instance, turbine suppliers. That is. We believe that in that case, we're pretty much in control. Mm-hmm. Okay. Thank you very much. The next question is from a line of Oskar Vilhelmsson from Redeye. Please go ahead. Thank you very much for that. I have a question first. I believe you mentioned the permitting and grid concessions taking a bit more time now. Is that mainly related to wind in Sweden, regarding the Fasikan project, for example? Do you see that as a general theme in the other projects and markets as well? Well, I think, yeah, as permitting processes in general are quite slow, but I think in this case it's about Energy Markets Inspectorate that we know it's we have some questions and so we know it will come close quite soon, at least from what it has been taking too long time, I think. It's quite simple concession as well, I would say. A bit disappointed on that one, but hopefully we'll have it during summer. All right. You're also expanding the organization now quite significantly. How hard or easy do you believe it is to find the right people in this new market? Are the hires mainly related to the geographical expansion? Yeah, I think we will grow in all the business segments to manage to grow basically. Obviously it's a quite hot market in terms of skilled people are always attractive in the market, but we have a hope that we will be attractive as an employer as well, being quite offensive in our approach to the market. That's our hope, at least. We don't know yet, but so far so good in terms of the recruitment we made. All right. Thank you. I have a last question here, just regarding the wording in the report. We note now that you sort of open up for solar projects also in the Nordics. Is that correct? Do you have any more comments on the reason behind that decision? Yeah, that's absolutely correct. That's part of our strategy that was decided last year to diversify in terms of geographies and also technologies. That's part of our strategy and we are in advanced discussions on solar in Southern Sweden as well. It's not only Poland and the U.K. We are actually in Sweden as well. Hopefully, we expect to have some results on that during autumn as well. All right. Thank you. I get back in line. This concludes our Q&A session, and I would like to turn the conference back over to Per-Erik Eriksson for any closing remarks. Yeah, I would like just to say thank you for the attention. I can only state that we are extremely happy with the first half year of 2022. I think it's above our own expectations in terms of the outcome of Tjärvallen. We also expect that our own production will deliver strong cash flows during 2022. Obviously, we have some market challenges in volatility, but overall, we are convinced that our production will continue to deliver good cash flows during 2022. So all in all, we look forward to the rest of 2022. We expect to have a good year, quite convinced we will have a good year. With that, I would like to wish you all a nice summer. Me and Markus, we will take holiday from tomorrow, which I think we deserve. I wish you all a nice summer. Yeah. Have a good summer, everyone. The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.