Well, good afternoon. Good morning. Welcome to the Smart Wires Technology Limited Q2 earnings results call. The earnings statement was issued earlier today. This presentation will provide a high-level overview of that report, leaving some time at the end for any Q&A that you may have. Let's go to page two, please. My name is Peter Wells. I'm the CEO for Smart Wires. I'm joined today by Leo Jiang, our Senior Director of Finance. On the line also, Financial Hearings will be moderating the call on our behalf. Let's go to page three, please. Any forward-looking information is inherently subject to risk, both known and unknown. Does not constitute a guarantee of future results. Page four, please. I will now briefly introduce the business. I'll cover some of the Q2 highlights for you. Leo will walk you through the financial performance, and then we'll get to your questions. Page five, please. The energy transition needs help. We see the impacts of climate change and global warming and the challenges that come with that around us every day. We understand this well, the need to generate more renewable electricity, which by the way, will overtake coal and gas as the most predominant source of generation in the next five years. Perhaps less well-known and perhaps less thought about and less discussed is this significant shift in generation and demand patterns really puts an unprecedented strain on the grid. The grid was not designed for this new paradigm, and it must modernize. At the end of the day, the grid is the nexus for the energy transition. We know almost 50% of power sector investment over the next decade will be on grid modernization. That's some $250 billion a year in 2021, going to more than $360 billion by 2030. Just this week, a global sustainable investment report stated that $35 trillion of sustainable investments were made in 2020. Let's be honest, two-thirds of that was what we call ESG integration, or let's say an awareness of the need for sustainability. I think it's interesting to note that we're a true ESG business in a massive market. That market is rapidly expanding and Smart Wires Technology addresses fundamental needs for the grid to modernize, meaning digitalization with data-driven, real-time modular power flow control that transforms the grid. Let's go to page six, please. For over a decade, Smart Wires has developed a unique technology, the SmartValve, that enhances the grid, enabling utilities to modernize, optimize, and monetize grid capacity through two-way power flow control. We're replacing large, costly, slow, and limited old tech, where the core grid today relies very heavily on copper and steel technology that in many cases is up to 100 years old. In stark contrast, the opportunity from Smart Wires is to take the power and flexibility of silicon and software to provide better, faster, lower cost solutions that digitalize, optimize, and future-proof the grid. Page seven, please. Grid congestion from a lack of capacity is a very commonplace challenge today, as shown here. We're modeling in this situation a very real situation in the U.K. On the left, we see one line that is overutilized and two are underutilized. As I said, it's a commonplace occurrence, restricting capacity and limiting the amount of renewable energy coming onto the grid. Introducing new renewable capacity further exacerbates this problem. The historical fix? Build more lines, modernize lines. Spend three to four years designing and shipping and installing a phase-shifting transformer. These are costly and time-consuming solutions. On the right, by introducing SmartValves, we balance and equally load the transmission lines by injecting voltage that can change line impedance to push and pull power flow across the lines, thereby increasing the amount of power that can be transferred. We can do this faster, simpler, and inherently more future-proofed than the competition. In this one example, our products increase capacity by 1,800 MW, optimizing use of existing assets and really optimizing future investments. In short, Smart Wires unlocks grid capacity, addresses congestion, and enables energy transition. It also improves grid resilience and reliability, and as I said, is inherently future-proofing due to its flexibility, mobility, and scalability. We provide a benefit-to-cost ratio that typically is outperforming traditional solutions by a factor of four to one. Let's go to page eight, please. What are the highlights for the business in the second quarter of this year? Well, as you well know, on May 18th of this year, we listed Smart Wires on the Nasdaq First North Growth Market under the ticker GOGRID. It was a significant step change for us, bringing in capital to help us transform and position the business for what we think is an unprecedented growth inflection point. This quarter, we refined and expanded our high-probability pipeline, moving from just over $2 billion to just over $2.3 billion, and expect this trend to continue through the course of this year and well beyond. Notably, we installed 72 SmartValves in seven different countries in multiple projects through the first half. A very, very significant step change from 2020. We secured orders of just over $26 million through early August, which by the way, was including a large follow-on order with National Grid in the U.K., and we have several others that are progressing through final negotiation, contracting, and approvals. We also continue to strengthen the business in terms of the organization design, both at the senior leadership level and also on the board, and you would've seen recent announcements on both of those areas. We're also adding new talent throughout the business, adding many people this year, and we continue to add through the course of this year. We're up to about 150 people to date, and we think we'll probably be adding another 20 to 40 before the end of the year. We're deploying, really in every phase of the business, better systems, better process, and new tools. We've added to our patent portfolio five new patents so far this year, taking us to just over 40 in our core, several more filed, and a lot more in drafting. We've also announced a new headquarters and technology hub that will be available to us in the first half of 2022 in the Research Triangle in Raleigh, Durham, North Carolina. This means we are positioning well. We're positioning well for a solid 2021, and an even stronger 2022. Let's move to page 10, please. Should be page eight. Thanks, Peter. My name's Leo Jiang. I'll go over the financials for the group today. On page eight on the screen right now, you see two slides, revenue growth and gross profit. On the high level, the company's very happy with the performance so far in the first half of 2021. Revenue-wise, as you see, we're seeing a dramatic increase in 2021. On the trailing 12-month basis, we have $22.5 million of revenue compared to revenue of $15.4 million in 2020, and compared to $8 million in 2019. There's a big growth we're experiencing. On the LTM basis, it's $34.2 million. On the screen on the right, you see a gross profit and margin percentages. As you can see, it's -2.99% in Q1 2020, increased to +3% in Q1 2021. It slipped a little bit in Q2 2021 due to supply chain issues and the disruption logistics. Go next page, please. The summary financial page on the left, it covers the overall earnings and start with revenue margin and going down to EBITDA. For Q2, as I mentioned to you, it's $10.2 million, versus $1.9 million in Q2 2020. That's a 445% growth rate. For the first half, $22.5 million versus $3.7 million. That's a dramatic increase as well. In terms of margin, as I stated, for the first half, we are net even. For the first quarter, about - 5%, compared to - 166% in Q2 2020. Again, a big dramatic increase in the operation efficiencies overall. For operating expenses, as you can see, it's trending up a little bit for 2021, mostly driven by headcount increases, continue investing R&D, and testing and engineering throughout the company. In terms of EBITDA and EPS, we're at -$0.16 per share compared to $0.31 in Q2 2020. Again, about 50% improvement. On the right-hand side of the screen right now, you see balance sheet cash flow. Currently at 06/30/2021, our cash is $109.2. That's due to IPO proceeds of $150 million. We paid off our debt of $15 million. In terms of net working capital, you see it's $112.6 at 06/30/2021. Sorry for the background noise here. For cash flow from operation, we're at -$30.8 for the first half of 2021. About a $2.4 million improvement over the six months in 2020. Let's go to the next page, please. We'll open up for Q&A from the group. Operator, can you see what's in the pipeline? If you have a question for the speaker, please press zero one on your telephone keypad. I would like to remind you. Is there a no question? No question. Go ahead. If you wish to ask a question, I would like to remind you that you have to dial zero one on your telephone keypad. Maybe while that's, if folks are thinking about questions, we can go to the first backup page just to share a little bit of additional information. We have no question. Yeah. Could you go to the first backup page for me, please? You don't have that? There's a couple appendix. Yep, you got it. There you go. Thank you. One more. Let's see. I think we'll use the time here, and we'll just give you a little bit of additional information. Obviously, those of you that are more familiar with the business, you know we've been evolving the technology, as I said earlier, for over a decade. Good news is that the V104 of the product, the 10-1800 V104, is due to come out in the first quarter of next year. We're well on that path to releasing that product. We expect that product to be the mainstay of our revenue through 2022 and then into 2023 as well. That's on a good path today. If we go to the next page, just to share some pictures, there's just really three of them, but just to give you a reminder of what we're doing in the field and what that looks like. The picture you see on the top left, if we can go to that next page. There you go. That picture on the top left is actually the 1-1800. It's one of the first SmartValve products we had. It's still very active, though, because it fits very well for small projects and pilots. You see here a picture of a project we did in South America that went online earlier this year. Top right is the SmartValve. This one's actually a 9-3200 V103. That's from an installation, one of five actually we did earlier this year for National Grid in the U.K. The picture at the bottom is actually a picture of the mobile unit that we deployed for the second time actually this year in Bulgaria. Pretty active, as I mentioned earlier. Just probably the last thing I would say is that we do have availability for one-to-one calls and follow-up. If you have questions, you can connect with us directly or through Pareto. We do have several calls already set up for tomorrow and also Monday and Tuesday, and so Leo and I are both available. We can go through, obviously, the same information, and if it's preferable for you to get deeper into Q&A in that type of forum, we're more than happy to oblige that and support that. With that, I guess I would say thank you very much for dialing in and for your time today. We will, of course, be online again in November for the next earnings release. Also we will be in Europe, in Stockholm in October for a couple of investor days, one that we're doing as part of a Pareto Securities session around mid-October. We'll also be doing a Smart Wires specific session in Stockholm following that. Stay tuned for those dates, and we'll push them out to you over the coming weeks. Thank you for your time. Take care of yourselves, and we'll speak to you shortly. Thanks.
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