Welcome to the Hexicon Audiocast with Teleconference Q2 2021. Throughout the call, all participants will be in a listen-only mode, and afterwards, there will be a question and answer session. Just to remind you, this conference call is being recorded. Today, I am pleased to present Marcus Thor, CEO. Please begin your meeting. Thank you, operator, good morning to you all and welcome. It's a pleasure to provide an update on our operations today, and I'm especially glad to do so as this is our first report release since listing the company in June. As this is the first time we give an update being a listed company, I will spend some extra time explaining who we are and what we do. If we go over to slide two, please. Today, I want to give an introduction to Hexicon. As I said, just give a little bit of extra time to introduce who we are and what we do, as this is the first time as being a listed company. I'll also give an update of our business and finally, look ahead as well. With that said, let's go to slide four, please. To start off with, I want to give a brief of Hexicon. Hexicon is a developer and foundation technology provider for deep-water offshore wind. We have our own IP for a dual turbine floating foundation, the TwinWind, which enables an efficient, low-cost energy production in deep waters with minimal intrusion on marine life and other stakeholders at sea. We focus on early-stage project development for high value creation with local and industry partners, and have currently projects underway with partners such as Shell, Copenhagen Infrastructure Partners, Bechtel, and Ørsted Offshore Wind. By focusing on early-stage development and sharing risk and financial burden with partners, we keep the capital intensity low of our operations and are therefore able to scale the business model. Hexicon is currently developing projects in key offshore wind markets across Asia and Europe, we're looking to add new markets to that list over the next 6- 12 months. With the rather alarming United Nations IPCC report that came out last week, it's clear that this decade needs to see new renewable energy be deployed at significant scale. Floating offshore wind is particularly suited to build in large scale, where it's needed, and with very low environmental impact. This industry, being floating offshore wind, is just about to see the first wave of commercial-scale projects, and Hexicon's portfolio is well-positioned to be part of it. Over to slide five, please. Now, we've had quite an exciting second quarter in which we took several important steps forward. Some of the key highlights are that in South Korea, our joint venture CoensHexicon signed a shareholders agreement with Shell to regulate each party's long-term interests in the MunmuBaram project. At the end of the first quarter, Hexicon and Ørsted Offshore Wind entered a joint development agreement for the Swedish market. During the second quarter, we deepened that collaboration and have now initiated public consultations for three large offshore sites, as well as having filed for seabed survey permits for all those three. We've acquired Wave Hub, which is a site off Cornwall in England, originally developed for wave power, with the intent to develop an up to 40 MW project using the TwinWind design. On this project, Hexicon is partnering with EPC giant Bechtel, which brings decades of experience from project management, engineering, and construction to the project. For the TwinWay project in Norway, a full-scale demonstrator to be installed in 2023. We've completed an exhaustive model test campaign at MARIN Test Center in the Netherlands. This was done over three weeks and confirmed the behavior of the TwinWind design for the Norwegian site and provided the data needed to calibrate our computer models. Last but not least, after months of preparations, we listed the Hexicon shares on Nasdaq First North in June, and in conjunction with that, successfully raised SEK 300 million to allow us to execute our ambitious business plan, developing both our project portfolio and technology. Slide six, please. Before I go into the business update, I want to spend a few slides on presenting our own business model and technology briefly. Before that, just a reminder of why we believe that floating wind is an effective source of clean energy. Using floating technology is virtually an unlimited resource. Out of the global offshore wind potential, some 70%-80% is estimated to lie in waters deeper than 60 meters. Using floating systems, one can be more flexible in siting projects, not constrained by water depth, and as such, place them farther offshore. This means higher average wind speeds and more stable winds, all in all, increasing capacity factors. The increased flexibility in siting floating wind projects further increases the possibility of avoiding impacting the environment and ultimately enables sustainable coexistence with other maritime stakeholders. Lastly, floating offshore wind holds all the prerequisites to effectively be industrialized. I believe that the 10 or so years that it took commercial projects of fixed-bottom wind to hit the more substantial decline of cost can be reduced for floating wind. Some of the reasons for that are that, one, we're not constrained by water depth. This means that wind farms can be really large. It's easier to standardize across a large-scale floating wind farm because each foundation is the same across the entire wind farm. Unlike bottom-fixed, where every second or so foundation is a unique design. Lastly, there is a global shipyard infrastructure that has been developed over decades that is very suitable for building floating offshore wind. Slide seven please. Over to Hexicon's business model, and it stands on two legs. We're both a project developer and a technology provider for deep water offshore wind. We see strong synergies between the two. Not only is it perhaps obvious our project developments entails opportunities to install the technology, but we've also seen how market opportunities arise thanks to having our own patented technology. As a project developer, we focus on the early stages of projects. We've built up a skill set and team to initiate projects, bring them to definition and onwards, and along the way, bring in investors and co-developers. We early enter partnerships with local competence and network, since any project development is, to a large extent, a local discipline. As a technology provider, it's about ensuring that the TwinWind foundation technology is kept cutting edge, protected, and adopted for project specifics. It's about maturing the technology for it to be used at large scale. At the end of the day, it's only through scale that the industrial value chain can bring down the relevant risk, and thence through reach the needed cost parity for floating offshore wind. Slide eight, please. Here's an illustration of a typical value involvement versus time for a project. Hexicon has its main focus on the early-stage development. This is where the relative value creation is the greatest. There's obviously an absolute value creation that is greater during the latter phases of execution and onwards. To graph such also requires significantly larger investments. It's already from inception through permitting and site control and onwards that Hexicon operates. Let's remember that floating offshore wind is in its very beginning of an expected tremendous growth. Our portfolio is well-positioned to be part of this upcoming first round of commercial-scale projects that we're expecting during the course of this decade. Slide nine, please. Just a short one on our technology as well. Our TwinWind foundation technology is essentially a triangular-shaped floating steel structure that carries two large wind turbines. It's moored through a turret at the front corner, which is a standard component from the oil and gas industry. It's basically just a big bearing. This allows the complete unit to freely rotate with the wind direction around that point. This ensures that the two turbines do not disturb one another. This is the key feature enabling the use of two turbines on the same structure. This means that we can install more power in a given area when compared to single-turbine solutions, and which reduces cost, as well as even further increases the possibility of coexisting with other stakeholders after occupying a smaller area. Ultimately, our two major design drivers are, one, lowest possible cost of energy, and two, smallest impact on the environment and surrounding activities. Slide 10, please. To briefly show a concrete case of the difference in power density, here's an example of two wind farms, one using single turbines and one using our own dual turbine foundation. Both cases occupy the same area and have the same aerodynamic losses across the wind farm. For this example, using the TwinWind foundation, we can install 45% more capacity, which equates to also 45% more electricity production. Additionally, the amount of inter-array cabling can be reduced by about a third across the wind farm, which reduces costs but also reduces the seabed footprint. Slide 11. Can actually go to slide 12, please. On to a business update. I'll go through some of our projects where we are, and I want to start in Norway. In Norway, we're working towards installing a full-scale demonstrator at the MET Center test site offshore Haugesund, with fabrication start planned for next year and installation in 2023. Recently, we completed our first major engineering phase, and to go with that, also conducted a scale model test campaign at Maritime Research Institute Netherlands. This was done over the course of three weeks, with a full unit exposed to wind, waves, and current in a laboratory environment. Also recently, we've identified and selected a preferred supplier wind turbine for the project, which are two pieces of Vestas V90 3 MW turbines, however, still subject to inspections and final contract. Looking ahead, we're about to enter the next engineering phase, which is called FEED, and to even further raise the fabrication readiness for the project, and we're during the fall also aim to conclude both the turbine supply agreement and an EPCI partner for the project that will build the complete project and install it. Slide 13, please. This map shows the location of our ongoing commercial projects and prospects. In addition to the four projects in South Korea, Scotland, Sweden, and England, which I'll present in a bit more detail shortly, we are working with several prospects in markets such as Ireland, Spain, and South Africa. These are typical markets that have all the prerequisites for floating wind and where legislation is expected within short. In such markets, Hexicon is active with local partners to position ourselves ahead of the curve for when the market takes off. To dig a little bit deeper into our projects, I'll start off with South Korea. Slide 14, please. In South Korea, we're working together with oil super major Shell in developing a large-scale floating wind farm. The overall project capacity is estimated to around 1.4 gigawatts, which is to be deployed in phases. South Korea is a nation that, at the end of last year, announced its net zero targets by 2050 and has since then increased its ambition with raised offshore wind targets and new budget allocations towards the renewable transition. Recent milestones during the past period include having entered a shareholders agreement between our joint venture co, Hexicon and Shell, to regulate both parties' long-term interests, and also having initiated comprehensive seabed surveys to map out the seabed over the entire area. Looking ahead, we're closing in on having completed the first year of wind measurements, which is a prerequisite to formally start the wind farm permitting process. We're on track to submit the application for a so-called Electricity Business License this fall, as well as later in the year, kicking off the environmental impact assessment process. Slide 15, please. In Scotland, end of last year, we sold the majority of our project, which was then called Dounreay, in North Scotland to CIP or Copenhagen Infrastructure Partners. This has since then been renamed Pentland Floating Wind Farm, and the developments are now well underway to re-permit the project to 100 MW. The U.K., being the largest offshore wind market in the world, has set some ambitious targets, which not only includes 40 GW of offshore wind in general by 2030, but also specifically includes floating wind targets, which is the only market in the world that does so. If we look at this market, and specifically Scotland, the wider competitive ScotWind process is now underway, and this project comes online in an area adjacent one of the largest ScotWind sites and well before the ScotWind projects are realized. This project is strategically well-placed and timed in one of the most attractive floating wind markets in the world. The project has recently secured 100 MW grid connection agreement and kicked off the environmental impact assessment process. Looking ahead, some of the near-term milestones include installing a floating lidar very soon and also initiating the geotechnical surveys, both planned for this fall. Slide 16, please. At the end of the first quarter this year, Hexicon entered a joint development agreement with Aker Offshore Wind to develop floating wind projects in Sweden, capable of delivering gigawatts of renewable power. During the second quarter, we've deepened our partnership with public consultations ongoing for three large areas, Mareld on the west coast and Dyning and Cirrus on the east coast. We've also filed for seabed survey permits for all these three sites. Looking forward, we're in the process of setting up a 50/50 joint venture with Aker Offshore Wind and the shareholders agreement with that to regulate each party's interest long-term. We're also looking forward to, during the fall, submit both grid connection applications and initiate the environmental impact assessment process. Slide 17, please. In Cornwall, in southwest England, Hexicon has acquired the Wave Hub site, which was originally developed for wave power. The location of this project is strategically chosen as The Crown Estate in the U.K. has recently announced its intention of lease auctions for floating wind in the Celtic Sea, and this is just around the corner from this project. The project is located some 20 km off the coast in rather shallow water and with a very good wind resource. The permit that was part of the acquisition has a capacity ceiling of 40 MW. The intention here is to deploy two TwinWind foundation that entails a total of four wind turbines of size yet to be determined. For this project, we've partnered with Bechtel, an international EPCI contractor that brings decades of experience of planning, engineering, and construction when it comes to large infrastructure projects. The complete acquisition was recently completed, which included executing a 30-year lease with The Crown Estate for the seabed. Additionally, we've during the end of the second quarter, applied for a marine license, which is the last and final permit needed to install and operate the project. Looking forward, preparations are ongoing for when the CfD bidding process opens towards the end of the year. This is the so-called Contract for Difference, and it's the U.K. government-backed subsidy scheme, which is being successful, provides a 15-year subsidy for generating electricity from floating wind. Additional efforts during the fall will also be placed on planning the complete supply chain for the project. We can take the next slide and skip over to slide 19. As a last slide, looking ahead somewhat. If you look at the near-term futures, efforts will be placed on maturing both the technology and the project portfolio. With regards to the technology, the design for the TwinWay demonstrator project will be prepared for construction starting next year. This will be the first full-scale deployment within our technology roadmap. Following the TwinWay project, two TwinWind foundations are planned for the TwinHub project in England, which will serve as a pre-commercial array, positioning the technology ready for commercial scale deployment. Significant focus will also be placed on developing current projects and prospects further to enhance the portfolio value. Several prospects of ours are in markets where legislation is expected within short, which may provide the definition needed to ramp up additional projects. Given the rapid expansion expected of floating offshore wind markets, we aim to mature opportunities in both new and existing markets. To be able to do this and capture this industry growth and ensure that the value of our business is enhanced, we aim to further ramp up our organization and capacity, both locally in Sweden but also abroad. With that, I would like to thank you all for the attention, and I welcome any questions there may be. Thank you. Thank you. Ladies and gentlemen, if you do wish to ask a question, please press zero followed by the one on your telephone keypad. Once again, to register for a question, it's zero followed by the one on your telephone keypad. Our first question comes from Johan Spetz from Pareto Securities. Please go ahead. Your line is open. Thank you. Good morning, and thanks for the presentation, Marcus. Two questions on my end. We saw a few days ago or last week, I should say, that one of the neighboring projects to your project in South Korea received one of these Electricity Business Licenses. Could you perhaps provide an update on how you see the rank order of the various projects that you have there in the area, yours being, of course, one of them, but there are a few more. The second question, with regards to new markets, you mentioned in the report that the U.S. could be a market of interest to you. Is that something that you can elaborate a bit on? Thanks. Yes, absolutely. Thank you for that. The first one of the EBL license in South Korea and our neighbors, and I know who you're talking about. I don't want to comment too much on the details of their license. We are in the front movers over there with, I believe any day now, if it's not even today, that we have all the prerequisites in place when it comes to wind measurements to apply for our own. Licenses over there may come as unconditional or conditional as well. There's a lot of aspects to consider when just seeing that there's a license provided. Not speaking for theirs, we're ready to apply for an EBL license as soon as we've compiled the data and put the application in place, which is shortly. When it comes to the U.S., definitely being one of the new markets. U.S. is a long-term, very interesting, and I believe it will become a very big floating offshore wind market, not the least since Biden entered the White House. We are, during the fall and already now, planning for an organization to ramp up a presence in the U.S. I'd like to come back to you in the fall with what that looks like and what our plans are. Okay. Thank you. Thank you. Thank you. The next question comes from Thom Johansson from Swedbank Markets, please go ahead. Your line is open. Thank you. My first question then is on the project divestments. When can we expect to see the next project divestment, and are there any particular projects standing out? Yes. This is not disclosed at this time. With new and evolving markets around the world, and this being an industry where our operations are very few and large transactions, so the timing needs to be carefully chosen. We've not disclosed when that will be, but there are several opportunities, and especially amongst the four projects that we have initiated, are underway, and are defined as projects. No specific timing that I can disclose at this time. Well, thank you. In terms of consulting revenues, what should we think about that in the coming quarters, as it was fairly low in Q1? Should we see an uptick in the coming quarters? Certainly fair to believe that it will ramp up as our public portfolio increases, consulting revenue is never the end play here and the one that will make Hexicon profitable. It's a way to reduce our burn rate. The end targets of the two big revenue streams that we're aiming for are both in terms of licenses, licensing our technology, as well as product investments, when we value enhance projects, have ownership, and reduce such. Thank you. The final question on accounting. Can you say what% of investments will flow through the P&L and how much through the investment cash flow going forward? Going forward, no, I can't say at this stage. I'll be happy to elaborate a little further on that via email for you if you'd like. I don't have that answer here in front of me. Well, thank you. That was all for me. Thank you. Thank you. As another reminder, to register for a question, please press zero followed by the one on your telephone keypad. There will be a brief pause for further questions. Okay, thank you. There appear to be no further questions. I'll return the conference back to you. Okay, I'd like to thank everybody very much for the attention and look forward to continuing this and the next reports and therein between. Thank you very much for your attention. Thank you. This does conclude today's conference call. Thank you all for attending. You may now disconnect your line.