to investor presentation meeting as a Biokraft company with our new corporate identity. We have myself and Anna Budzynski participating in this call. Now, in order to get started, why biogas? This is summarizing the key benefits we have with biomethane as an energy carrier for our environment, for our society, as well as financially. To flag for the key highlights, environmental benefits is really related to reduction of CO2 emissions, as well as enhancing the biodiversity. Our side product, the green fertilizer, is also very attractive for replacing the fossil fertilizers. We are also creating a good part of new jobs in the European context, and especially, given the Ukrainian war, nowadays, the energy security is of high highest importance in Europe. In terms of the market as such, given the EU's ambition to for the green transition, they launched the REPowerEU last year with the ambition to grow from 30 TWh biomethane to 350 TWh by 2030. Actively working with the industry players and governments to obtain or to resolve obstacles in order to really achieve this level. This will enhance the overall European energy independence, especially when reducing the supplies from Russia. It is very clear that there is a need for the green transition overall, and all this combined will. The consequence of that will be that there is a lack of capacity of green energies, biomethane, and will then also enhance all of business development for the future. What is worth noting is also that the European market is quite fragmented, not because of the product as such, but because of the politics and regulation in different countries. That is something which is, say, quite time-consuming activity for all of the players in the market and for biomethane players as well, to really follow the situation and opportunities in each of the markets. Which applies for us as well, in the North European market, which we see as our home market. About ourselves, we have updated our purpose and mission to be better reflected to the next level we are going to take the company. Thus, the purpose is reflecting our role as a producer of bioenergy, as well as supplying nutrients for the circular economy. In terms of mission, we are focusing on being a profitable operator, large-scale operator of biorefineries and thus producing bioenergy as well as nutrients from different waste and organic streams. In terms of our business, the key highlights for the 2Q, we announced the two identified projects in Germany, which we are now working with in order to achieve our investment decision at some point of time next year. We have also been able to assure an additional project in Sweden in cooperation with Perstorp Municipality, having signed the land assignment agreement for that project. Especially, we want to flag for that even though the market circumstances have been a bit more challenging related with pricing lately, the additional new project will enhance our profitability and our possibilities to achieve the EBIT, EBITDA, Operative EBITDA 30% level or beyond. In terms of our order book, the order book level was more or less the same at the end of June as it was in March. No major changes on a level of 2.5-2.4 TWh of take intake. The order book with market prices on a level of SEK 3.4 billion, without any production subsidy in Sweden. Pricing is a very important issue, given the changes we have seen lately. We still are confident on our view that given the new agreements, the prices for our biomethane will, in the Scandinavian market, have a premium between 50%-100%, compared to the price which we had in 2022, meaning around SEK 900 per megawatt hour. In German market, we will even be able to have a higher premiums up to 300%, especially in cases where we are delivering biogas produced based on manure, animal manure. Of course, then, given the new price models, the by price dynamics in our agreements will increase, and thus, the price different changes with LNG, meaning TTF and even green certificates will impact our prices taking forward. Especially the certificate values are prices are important in the German market. The transition from the old agreements to new agreements has been included in our press or now a couple of times. This is more or less the same structure as we had in the Q1 report. As we see, we estimate that during the second half of this year, around 30% of our total volumes will be based on the new agreements. A substantial part of that deliveries to Germany, and in 2024, around 50%, around half of the volumes will be based on the new agreements. This will then imply that our pricing will better reflect market conditions, will enhance us opportunities to have full compensation for the increased costs as well, which is very, very important. It's important to understand and keep in mind that the prices do vary between markets and segments, so the pricing model in Scandinavia is different compared to the pricing model in Germany, especially German transport sector, and even between the Scandinavian countries, there are differences. Even though the product itself, from a chemical perspective can be... is more or less the same, depending on the CO2 profile, we see very different prices related to these certificates. Especially in Germany, the prices for LNG, Bio-LNG produced on manure are very, very favorable, even though the certificate values have been going downwards lately or earlier in this year. Now, they have been for a couple of months quite stable. Overall, we can say that our order book had given market prices, the average price was SEK 1,380 per megawatt hour at the end of June, and this is now without any subsidies in Sweden. Key activities from the second quarter, we launched the new brand Biokraft. As you can see, we have a payoff driving change with liquid biogas. It's emphasizing the role of Bio-LNG as a product. It's not the only product we are aiming to grow with, but it's the most important one. We have also launched new corporate identity and even the new websites, established our subsidiaries in Germany. However, not yet the segment, so the business area will be established later on, but the formal entities are in place. Our project here in Stockholm Bio-LNG in Södertörn is now in the final phase. We have started with the commissioning and are estimating to have the first supplies out this quarter in the new weeks to come. Also our project in Mönsterås, we have been then according to plan, be able to go from the groundwork phase to construction work in order to achieve then our target to start deliveries during the second half next year. As mentioned, the Perstorp, a new project, we have assured the land assignment with the municipality. We go into our key business highlights. Anna, please take over. Yes. Do you hear me double? Echo, but otherwise, yes. Yes. I have problem with the-. No, we don't hear. Okay. I have problems with the Teams, so I don't actually know how to fix that. Can you mute one of the- Yeah, I tried to mute one of your- Is it? You have to disable the sound on one of your device, speakers on your computer. Yes. Matti, can you please take this slide so we don't have the echo for me? Okay. Yes, let's do so. Okay, sorry about the trouble with the voice. The key business highlights for second quarter, energy deliveries out were more or less on the same level as year before, 82 GWh. Positive was the enhancement and higher volumes in Sweden. However, that was, you know, compensated in a way negatively by some lower production in Norway, Korea. In Norway, there was a planned maintenance for a couple of days. Besides of that, there was a substantial water source, water shortage in the region, in the Skogn region, implying even for challenges for the palm oil. That took off a couple of days production for us. re was a planned maintenance for our customer, and therefore, the lower volumes were slightly lower. Thus, meaning that the capacity utilization still is below our expectation. In terms of the revenue, however, we were able to have substantially higher revenue than the year before, one third higher, on a level of SEK 135 million. That is mainly driven by higher sales prices in Norway and Korea, as well as the volumes in Sweden. What is then, of course, worth noting is that the subsidies, production subsidies, were substantially higher this year compared to last year, because last year the production subsidies were not yet available That is one of the changes, differences, as well as then there was a one-off, in a way, one-off benefit of SEK 8 million when we booked the subsidy from 2022 as a reevaluation. Also, we received SEK 5 million as electricity subsidies in Sweden. In terms of the profitability, substantially higher than the year before, 13.6% margin. That is driven with the drivers and facts I described already, but also related with the product mix. There was a higher share of Bio-LNG, as well as some supplies to Germany with boosting the profitability. The subsidies were impacting positively. Negative impact is related with the COGS. We have seen the higher COGS already since 12 months. Some components in the COGS are now on a lower level, such as electricity. Overall, still, we see that the COGS is on a higher level and seems to be even a bit higher level on way forward at least at the end towards the end of this year. Of course, As mentioned, the overhaul periods and impact in startup in Norway have even reused gross margin to some extent. In terms of trends, this is showing our total revenue development, the on a quarterly level, the last three years, as well as on the graph on right, you see the operative operating EBITDA as well, Operative EBITDA margin now on a level of 13.6%. Of course, we are looking to reach our Operative EBITDA margin, 30%. As communicated, that is our long-term target overall. In terms of cash flow, given the higher profitability this quarter, the cash flow was higher than, better than it was, the year before. Worth noting that in turn, in our investing activities, the total investment activities were on a level of close to SEK 150 million, both related to Mönsterås project and Stockholm LBG. Given the fact that the port portfolio, the short-term investment, which was released on a level of SEK 69 million, in the cash flow, the investing activities is reported as net. Cash at the end was SEK 168 million. If we look how the liquidity, what is the liquidity position of the group, the total interest-bearing liabilities were on a level of a bit more than SEK 900 million. Given the interest-bearing receivables, cash, and RCF, and our own share of in our bond, the total available liquidity was in the range of SEK 700 million. Net debt without leasing debt was in the range of SEK 340 million at the end of June. These were the key highlights related to financials. Related to the growth plan, we published first time our pipeline in our Q1 report. Here is the update. The key point here is that we have now the Perstorp project as with the concrete name and place, location. As well as we have now reached the commissioning phase for the Stockholm Bio-LNG project. Otherwise, the pipeline is quite close, what we have said earlier on. Would like to flag for that in Södertörn, the capacity increase from 80 to around 110 has now been postponed due to profitability reasons. We do not see that we are able to reach the favorable profitability for that extension. The other projects are more favorable in terms of project returns. Therefore, the project has been now divided in a smaller subsection and will take some time before the local capacity in Södertörn will increase. We still see that the rule of thumb, that the CapEx cost per gigawatt hour will be in the range of SEK 4 million-SEK 6 million, depending on infrastructure and depending on the functionalities least used for the project. Important is that these projects, the greenfield projects, all enhance our EBITDA margin and are very well aligned with the 30% target and actually are improving it compared to just being it on that level. That is the key point related to projects. Key long-term targets are the same as earlier on, and we are comfortable with them. would like to emphasize that the Operative EBITDA margin, 30% in 2024, we see as a challenge, but we are committed to work with our EBITDA targets, margin targets. 2024 is a challenge. Long term, we are definitely working with that target. We're looking, the key drivers for our Operative EBITDA margin in near future. 2024, we see that our volumes out will increase by 20% in 2024 compared to 2022. This was lowered by 10% units from 30 to 20, given that the Södertörn 3 is under a redesign process. In terms of the pricing, we have the same sales price increase, 40%, as we had earlier on per gigawatt hour, we don't see any major change there. Then, what is most important, that the third statement is that we see that on a group level, we will be able to report a positive last line before tax when we have commissioned both the Stockholm Bio-LNG project as well as our Mönsterås project. Those both projects have achieved a fairly high, reasonable capacity unit utilization level. Those points which are impacting us in a dynamic way can be positive, can be negative, is self-evident given the new agreements, supply agreements, market prices for TTF and green certificates will impact ourselves. This is especially the volatility is higher and impact is higher in Germany. Not that sensitive in the Nordic market. Of course, also the political changes and governmental new policies can enhance the profitability, but can also negatively impact as we have seen, for example, in Sweden with the subsidies, as well as the changes with the energy taxation for biogas. Lastly, the higher COGS. We see that clearly the COGS level per megawatt hour will be higher than it used to be. We suppose that at some point of time next year, we will be able to have somewhat lower COGS per megawatt hour, but anyway, much higher than what we used to have earlier on. Then going forward, we have assessed, we see the biogas market in Europe to have a strong development phase. There is really increasing demand for biomethane. We ourselves, we focus on two activities, two key strategic areas. One is the improved efficiencies on the existing sites and doing, say, and implementing performance improvement actions in the line aligned with continuous improvements, and then as well as looking for additional new projects. We are confident with our 2024 four targets, but for the profitability operating EBITDA 30%, we see challenges to reach that in as early as 2024. As mentioned earlier on, new projects are expected to contribute positively in our profitability overall. For 2023, this year, we confirm the same outlook prognosis as we have stated earlier on. We will be, we'll see this year to be in a way, to be a bit weak throughout this year, and this is mainly related to the fact that based on the old agreements, our intake indexation is a bit more aggressive than is the sales side indexation, and therefore, we do not get full compensation for the inflation. That is also impacting the profitability before we get the benefits of renewed agreements and being able to deliver Bio-LNG. I think that this was the key highlights from the company side, and we are open for Q&A. Can you hear me now? Very well. Yes, good. We, I don't see any questions in the ones. No, no one is raising their hand. You can just put out your questions. We have our analytical, Adrian from ABG, has sent in some questions that he would like to raise. He couldn't be in the call today, so I will take those, Matti, so you can see if you have an answer. Yeah, please go ahead. The first one is Yeah, natural gas prices have fallen out drastically. Can you give us an update regarding how this affects our long-term earnings potential? Is your 30% operating EBITDA margin target a risk at current levels? Thank you. I think we have already addressed this question. We clearly are firm with our 30% EBITDA target. However, 2024 a challenge. The new projects at Greenfield projects, given the current market prices, both for the energy as well as for the certificates, we see the prices to be very well aligned with those say price indications, premiums we have already earlier stated on, and thus being positively being able to contribute positively on the EBITDA margin going forward. He has a question regarding our COGS. What is the status of the input cost for energy and more, in likes for the glycerin that you have struggled with in recent quarters? The energy prices in general, as we know, power is an important component for us, especially when going forward with Bio-LNG production. We see that the power cost is reducing and has been reduced during the long first months this year. However, as mentioned, the COGS overall with other components in our COGS are to somewhat higher than they used to be before the Ukrainian crisis. We still see ourselves to have higher COGS per megawatt hour going forward. Hopefully, somewhat reduced than next year. He also has a question about: How much has the LBG volumes from Skogn 2 contribute in Q2? Is it full utilization, or when will it reach full utilization? Yeah. Okay, very good, thank you. The Skogn 2 is a capacity extension for liquefaction part, especially. It's integrated into the Skogn 1, so operationally we have now one Skogn facility. It's a bit difficult to deviate between the 1 and 2 anymore, operationally. The level of production level in Q2 was less than 30 GWh, which is more or less the capacity of the Skogn 1. From the supply perspective, there hasn't been yet during the second quarter, any substantial volume benefit. We expect ourselves to be able to now, during the second half of the year, to improve so that we are above the Skogn 1 level, which would be in the range of 130-140 GWh annually. We expect then to be able to reach the 150 GWh level, when we have made some improvements in our feedstock supply, especially in terms of injecting such feedstocks, which we have not been able to use so far. We will be able to reach the full capacity, including for Skogn 2, somewhere second quarter next year. Yes, we have one person raising her, his hand, Samuel Wilhelmsson. Yes, thank you for taking my question. Samuel Wilhelmsson from Nordea Markets. One question that I had was, again, concerning your target for the 30% EBITDA margin. During the second quarter, you said in a report, that the increase of costs is also attributable to increased production in business area Sweden. Now looking at your current pipeline, you have also, like, new projects coming in Sweden. Do you see this some kind of a threat to the gross margin if the production costs in Sweden are above the other business areas? Is there any way to tackle that? Your question is related to COGS level between business areas. I would say so, that now when taking company forward with the additional growth projects, they are heavily based on agricultural side products and manure, and that the potential in that market is very big. Whereas our current feedstock supply for our existing facilities are more or less related to municipal waste. Either the biogas is based on sludge or sorted household waste or other commercial feedstock as such as silage in Norway. I would say that the higher COGS here in Sweden lately is... I would say we don't see indications that the same kind of, let's say, cost increase would impact the other projects. We see that given the fact that the energy prices have gone down, also that will impact positively some parts of the COGS going forward. Okay, it's just a matter of feedstock. Okay. Thanks for clarification. Adrian had also two last questions. Can you give us a timeline for how the liquefaction volumes from Stockholm Bio-LNG will be ramped up the coming quarters? As mentioned, we are, we have started now the commissioning of the Stockholm Bio-LNG facility in Södertörn. As I showed the slide on the, say, volume transformation from old agreements to new agreements, majority of the change during second half this year is based on supplies from Södertörn. Given the fact that the local capacity and production in Södertörn is around 70- 80 GWh annually, we would expect that we will be more or less on a very high part of that during the fourth quarter. The last question from Odin is that when now the so LBG liquid fractions volumes from Skåne to and Stockholm Bio is going onwards, how can you isolate and say something about the margin of those volumes? That question is, of course, an excellent question and a bit complicated question. The prices, as I explained earlier on, the sales prices, for example, in Germany, we can get a 300% premium compared to our earlier prices, if we are delivering or using manure as a feedstock. That is, I mean, the most, the highest profitability or highest gross margin definitely for that kind of biomethane. On average, then the margin here in Scandinavia is between 50% to 100% higher than it was, or the price is 50% to 100% higher than it was earlier on, meaning that the price is somewhere between SEK 1,450- SEK 1,800 per megawatt hour. For those products, the feedstock is not that sensitive. Manure is also has a higher profitability in Sweden, given the subsidies for that part. It's difficult to give any exact figures in terms of the margin. It actually depends quite a lot on what feedstock we are using and to which markets, on which market the product is sold. That was all question from Odin, and I can't see any more questions raised, hands raised in the call, so you know. Okay, let's see. Are there any additional questions coming in from somebody? If not, we highly appreciate your participation in mid of July in this investor call, and we do apologize we had some technical challenges. Anyway, we have been able to work through it in a very good way, excellent way, the information sharing. Thank you very much, and enjoy your summer.