Welcome to the OX2 Q2 2021 report. For the first part of this call, all participants will be in listen-only mode, and afterwards, there will be a question and answer session. Today, I'm pleased to present the CEO, Paul Stormoen, and the CFO, Johan Rydmark. Speakers, please begin. Excellent. Thanks, Terry. First of all, I would like to take the opportunity to welcome to this first quarterly report presentation from OX2, and also welcome all new shareholders following the listing at 23rd of June this year. Today, we will go through the Q2. I'm Paul Stormoen, CEO of OX2, and I will be taking you through the presentation together with Johan Rydmark, our CFO. Starting with the agenda. We will go through some highlights from the quarter and a deep dive into the portfolio and how that has developed during the last quarter before Johan takes us through the financial review. A quick market and outlook comment in the end. There will be, as said in the opening, opportunities to ask questions in the end. We will have a Q&A session then. Feel free to either send questions to the email ir@ox2.com or through the audio system in the teleconference going in parallel. Good. Okay. Starting with a brief introduction to OX2. As a pioneer in the renewable sector in Europe since 2004, we have been a leader in several of the markets at the forefront of the energy evolution. OX2 has a develop and sell business model, working with technologies onshore wind, solar PV, and offshore wind. For the last 12 months, we have booked a revenue of 5.8 billion SEK, and an adjusted EBIT of close to 400 million SEK. Also continuing to show strong cash conversion and ROCE. To the center of this page, you see that the portfolio stands strong at 17 GW. The mix remains onshore and offshore with the majority, and a growing part also being solar PV. To the right, I repeat some of the milestones, recognizing us as a true pioneer in the sector since more than 17 years back now. First project finance done in the Nordics on a wind farm in Sweden, we did in 2007. First PPA in Europe, we did back in 2013 with Google. These two components being a standardized part of the OX2 product sales package by now. We have also a history of working with large projects. Back in 2017, when we started construction on the third largest project in Europe at the time. While the cost of the renewable energy has dropped, we were able to, in 2018, go below the average electricity prices, and thereby working in an unsubsidized environment. The Nordics being at the forefront, but we see this trend shifting towards Europe at an increasing rate. We also have recently announced a large acquisition in Finland behind us on a project that we are actively working on the realization phase on now. Moving to the quarter in more detail and highlighting the growth targets that we announced in the IPO process. We have worked towards this during the quarter with very high activity all across the development portfolio. We can look back at 1.2 GW of projects across several markets acquired. Specifically, I would like to highlight Romania as a market that we have now established OX2 in, both with a local office and the organization, as well as acquired a 300 MW project in fairly late stage. This is a big and significant market entry for OX2, and I will come back to Romania shortly. We have also sold 111 MW across Poland and Finland at very strong valuations in Q2, indicating a strong and growing trend and interest for both our markets and our product. While at the same time, maintaining at plan with the construction of now in total 15 projects in four different countries. We have strong cost control, quality control, and also been able to follow the timeline on most of the projects. There has been a minor delay due to the pandemic on some of the projects that were expected to be handed over in Q2, but with minor to no financial impact towards OX2. We have handed over a project in Sweden to customer Octopus of 48 MW during the period. All in all, good and strong activity across the development and construction portfolio. Also significant to note the listing process that completed on 23rd of June, and the immediate and ongoing preparation for listing on the main market in Stockholm. We have, during the last 12 months, been able to grow the organization with 44%. Just last quarter, we added 13 new colleagues. This is, of course, a key as, or part of the value chain is very much dependent on getting the right competencies and skill sets to be able to work with new technologies and in new markets. While OX2 is a long-term value creator, we have been able to show, during this quarter, a positive top-line gross margin and EBIT development. We do expect continued volatility on quarterly financial numbers. To summarize, a good quarterly sold project output of 111 MW at strong values. Acquisitions of 1.2 GW, putting the development portfolio just above 17 GW. We can have a bit of a more detailed look at exactly what has happened on the portfolio, and we will continue to be fairly open with the movements in the portfolio, as this is important to understand our path towards our medium-term targets. We started the quarter at 16.6 GW. We have, as mentioned, sold two projects, one in Finland and one in Poland. We have also done some adjustments to the early-stage portfolio, meaning that there has been some variations in the sizes on some projects, and a few project has also been discontinued, meaning that there's been a negative 800 MW change to the early-stage portfolio. We have also added about 200 MW of greenfield projects during the quarter, and notably 1.2 GW of acquisitions. Here we can highlight, I'm coming back to the Tuulipuisto portfolio in Finland of 568 MW, as well as the Żary project in Poland of 60 MW. A lot of interesting projects across the development chain. Ending the Q2 at 17.1 GW. I have already commented on the portfolio split, we can move on. In addition to adding projects to the portfolio, we also want to highlight that we are moving projects across the development cycle as well, pointing here specifically to the late stage, which is less than three years to sale, has increased to 2.8 GW, ending Q1 at 2.5 GW. Also having now about 1 GW in construction. We continue with a couple of firm examples. Here I'd like to bring forward the Tuulipuisto portfolio. This is an acquisition we finalized in Q2 in Finland. This is a local developer with experience from the Finnish market. On top of the acquisition, we also have a cooperation agreement signed with this developer, for significant additional portfolio. This is the type of acquisitions and cooperation agreements we very much enjoy doing with local developers. We also highlight the Huszlew project. This is a wind farm in eastern Poland we acquired back in October 2020. We then participated in the state-run auction and were able to finalize the development, all of the procurement and construction design, before selling the project to Octopus in June 2021, which puts the turnover time of roughly eight to nine months. This project is now under construction, expected to be handed over in some two years' time. To the same buyer, Octopus Renewables, we also handed over a project in Sweden. I mentioned this one. It's a project we acquired late 2019, and with less than a year turnover time, we sold it in 2020 and delivered this on a fairly stringent construction timetable, about one year. This was done and handed over in June 2021, at good outcome. Three different case studies indicating high activity and also explaining a bit more about what type of acquisitions we do. I want to double-click a bit on the Romania entry. This is a strong resemblance to where Poland was some four or five years back in terms of development. Romania has a history of having renewable energy being built, but has now for the last 10 years or so been at a standstill, meaning that there are opportunities to acquire medium and late-stage projects, and this is what we have been doing. We moved fairly early into the market now that it is very much restarting the sentiment among investors and the legislation authority is now picking up. We see a very strong opportunity to create a new core market over time in Romania for OX2. We have a strong activity in screening of project rights in Romania. This follows the strategy we have pointed to, which is opening up the southeastern corridor in Europe for OX2. Looking back at the first half of the year, we have now started activities both in Italy and Romania in 2021. Good. Moving on to the construction portfolio. I think there are a few reports today or this year being announced without commenting on the supply chain difficulties that has been seen globally. OX2 has been able to maintain a very strong focus and delivery, indicating also that we are an important client to our sub-suppliers. We did expect to see some of these top projects being handed over in Q2, but they were now being pushed into Q3. I'm noting that this is with little to no financial impact for OX2 due to the contractual setup. We have a busy second half ahead of us with six projects to be delivered. We feel very confident that these are about to be completed and handed off to our customers. We have some seven projects in 2022 portfolio that is going also according to plan, and we will continue to note if there are deviations or when they are being handed over. We have a couple of 2023 projects, and of course, most of the new projects that we will start construction on in the coming months and quarters, we expect to also be 2023 or later projects. Then once again, the project that was handed over in 2021. All in all, as you see in the bottom here, we have now 15 projects in four different countries under construction. Overall, the construction timetable, budget, and quality are being followed. Good. I think that's summarizing the quarter from my side. Johan, if you can continue on the financials. Yeah. Sure. Thanks. If we move into the financials. Like you said, Paul, for sure, it's been a very active quarter for us on all fronts. Of course, for the finance department, with a lot of things relating to the listing and also very happy to see the interest that we got for our business and the exciting opportunities that we have in our business and all the new shareholders that have joined us on this journey. Even more pleasing to see is the high activity in the ordinary business in the quarter, where we also have a lot of these activities that you've commented on, Paul, impacting our financial development. In the quarter, we had sales and margin contribution from 12 of our 15 projects in the construction portfolio. As you could also see there on the previous slide with the construction portfolio, most of the projects that are closest to being finalized are in Finland, and that's also where we saw the majority of our sales in Q2, close to 70% of our sales coming from the Finnish market. The Ljungbyholm project, the Swedish project that we handed over in the quarter, was done so according to budget, and very impressive to see how our construction team there was able to turn this construction project around within a very short timeframe and according to expectations. The construction period for this project stands out at just a little bit more than a year. What also stands out in Q2 when comparing Q2 this year to Q2 last year is that we last year didn't complete any new project sales, whereas we, in this quarter, as has been highlighted, we sold two projects, the 111 MW. Since we're not capitalizing any of our external project development expenses, we will typically see a higher than average gross margin from the net sales that is derived from sold projects, which was also the case in this quarter. It is also the improved gross margin that is the main driver to the improved EBIT result in Q2, whereas the operating expenses, both personnel and external development expenses, have continued to increase as percentage of sales, which is in line with our strategy to invest in the project development of the growing portfolio. As well as growing our organizational capabilities to be able to handle more projects across different technologies and different markets. I'll come back a bit on the next slide here to our development in operating expenses and how that is impacting our performance. If we zoom in a bit on what is driving our EBIT, looking here at LTM figures and when looking at the development of OX2, it is volatile on a quarterly basis and really looking at longer time series is what I think is best to understand the underlying performance of our business. Very clear on this slide, COGS is obviously where the bulk of our costs are. COGS for us comprises of the construction expenses that we have in the construction projects and the project right expenses. This is the projects that we acquire. They come up as part of the project development in our balance sheet. When we sell a project that we have acquired, then that is released through the COGS. The third component in the COGS are the sales costs associated with selling projects. The biggest component by far is the construction expenses. With the fixed price construction agreements that we have and the contracted sales we have, believe us to have good future visibility on our gross margin coming from this part of the business. This was also what we saw in the development in Q2. Also the two projects that we sold in Q2 now being part of the construction portfolio, we believe us to have a good future gross margin visibility and the gross margin from these projects very much in line with historical performance. When looking at our operating costs, we continue to prioritize investments into growing our organizational and project development capabilities. This is in order to meet our medium-term volume sales target that we have communicated also in the listing process. This is impacting our reported EBIT margin here standing at 7% LTM. Will continue to do so until we see growing sales volume. Our external project development expenses on an LTM basis have grown with more than SEK 65 million. If we look even further back at the last three and a half years, going back to 2018, our external project development expenses have increased with more than 400%. It's a bit the same when looking at our personnel costs, which has increased with more than SEK 40 million on an LTM basis and close to 300% during the last three and a half years. Most of the personnel growth is related to our colleagues being out there working with the projects in our different markets. Very much working with project development. All these investments, both the external project development expenses and our own project development expenses, we expense in the P&L as they occur. We don't capitalize any project development. The financial benefit from all these investments will only show in our P&L as these volumes from the increasing project portfolio is being sold. Right. Can move on to the next slide. Our profit development is not linear when looking at a quarter-by-quarter basis, as you've seen from our history. This is due to the fact that it is very much influenced by the pace at which projects under construction are completed and the time when new project sales occur. Therefore, as I said earlier, I think it's better to look at annualized and longer time series when wanting to understand the trends in OX2's development. In terms of sales, the growth that we've seen during the last couple of years is derived from increasing sold project volumes, increased volume under construction, and increased sales from our asset management business. It's also these three revenue components that we have in our business. The contribution to the sales growth is also increasingly coming from more and more markets where we, in our LTM figures, have sales from Sweden, Finland, Poland, and Norway, giving us also less dependency on any specific market development. As we are continuing to invest to be able to achieve our medium-term financial volume target, annual sales volume exceeding 2,000 MW, we are seeing that and will continue to see increasing project development expenses and personnel costs, which is impacting our reported EBIT, as you can see here on the right-hand side. Until we increase the sales volume, which in line with our financial targets we expect to see in 2023, gross margin, I believe, is probably the best financial metric to follow if one wants to understand how the underlying operation in OX2 is developing. Here we see a stable margin development in the quarter, slightly up compared to the LTM figure as of end of Q1. Meaning that we see good cost control in our construction projects and also are achieving good margins from the new projects that we've sold. Moving on to the next slide, looking a bit on the asset side of things and more specifically, our cash position. Following the capital raised from the listing, we have a strong balance sheet with a net cash position of close to SEK 2.6 billion. This will enable us, in line with the communicated strategy, to continue to increase our investments going into new project rights, as well as further investments to maturing and developing our now 17 and growing project portfolio. If we move to the next slide and look a bit at the investment pace. Here you can see the increase in acquisition of project rights during the last couple of years. You can also see that most of the investments are still going into our, if I call them, our old core markets, Finland and Sweden, and onshore wind projects. We're also seeing a significant increase in acquisitions in Poland and of PV projects. We believe the investment pace to continue to increase, and the investment level that we have communicated, also in the listing, an investment level of around SEK 600 million on an annual basis, that we will be at that pace in the coming years. Right. Summing it up a bit from my side, relating a bit the development to the financial targets. The development that we've seen in Q2 is, I believe, showing good progress in relation to our financial targets. We have continued to invest in growing our overall project development portfolio, having grown the overall portfolio with more than 400 MW in the quarter. While at the same time, which is just as important, seeing the portfolio mature with the existing portfolio now in the mid and late stage being 4.2 GW, and the late-stage phase specifically having grown with more than 300 MW in the quarter. This is also where we will see the near-term sales coming from, which gives us good comfort in our near-term volume targets for 2021, 2022, where we have a target of, on average during these two years, selling 500 MW on an annual basis. Also then looking at 2023, 2024 targets, where the target is, on average, during these two years, have an annual sales volume of 1,500 MW. Also in the quarter, believe very much continue to take steps with the investments that we have done going into our organizational capabilities and also with the growing portfolio. Good steps towards our midterm target with an excess of 2,000 MW on an annual basis. In terms of our operating margin, our current performance is impacted, like I've said, by our growth investments in the organization and our project development, as we expense all these costs and will continue to be impacted also in the coming quarters in the near term, until we see sales volume increase. That said, the stable gross margin development give me good comfort that sort of the underlying business is performing well. We also see very high interest for the projects that we bring to the market, with a lot of competing customers for our projects. I guess you will also comment a bit on this when discussing the market outlook, Paul. Handing it back to you. You're on mute, Paul. A quick comment on the market and outlook, now going towards Q3. First, some events that has happened after the quarter. We participated and won with 57 MW in the Polish RES auction, giving us a good foundation for projects to sell now in the coming period. We do have projects in the market and see strong and positive feedback. We see a trend of global investors moving into our core markets. The case for the energy transformation has probably never been stronger. The portfolio, we will continue to grow in geographies that we are currently present in, and we are following our strategy of further diversification, both in markets and in technologies. During the second half of the year, we will expect to continue to see volatility, and especially when it comes to the sales mix, we do expect Q4 to be dominating rather than Q3. Second half of the year, we'll continue to be busy, and we see a very strong feedback from the market and have a very positive outlook, both near and medium long-term. That's the summary, and if we have any questions from either the IR email or from the audio, feel free to patch them through. If you have- I don't have anything in the IR yet, but maybe audio. If you have a question for the speakers, please press 01 on your telephone keypad. We have a question from the line of Olof Cederholm of ABG Sundal Collier. Please go ahead. Yes. Hi, Paul and Johan. Very good quarter it looks like. Just a few questions on the negative adjustments of the portfolio of 800 MW. I missed what you said there. Was this in the late stage or mid-stage or early stage, and what were the reasons for this? Hi, Olof. Yes, this is all early-stage projects, and they are mostly related to megawatt adjustments in different projects. We try to keep the portfolio as relevant and updated as absolutely possible. There was only one early-stage project of size that we received a negative decision on. As I said, that was in an early phase, and you have a natural recycling of projects in early phase. No late or medium-stage projects that was part of this discontinued or adjusted downwards. Very good. None of these projects were acquired projects, so it's not impacting our financial set at all. Fantastic. Just on the supply side, I don't know who's best to answer, Paul or Johan, but there's been a lot of talk about cement shortage potentially coming up in Sweden, with some issues in Gotland. Do you have any views on that, how it could potentially affect you, or if you've heard anything? Well, the latest project we closed in Sweden was in Q1, and that was not in any way affected by this, and we do not have any type of open price items in the contracts for those type of issues. We are also seeing a very diversified portfolio in the past, and cement is a very limited part of the total CapEx that we have. I do not expect this to be material for us too. The two projects that we have near term, Hornamossen and Åneby, we believe us to have good grip on the foundations there. Yeah, yes. Very good. The high market activity, you're new to the market, so we need to learn a bit more on seasonality, et cetera. When it comes to project acquisitions, should we assume that to be slower in Q3, or is it not really seasonal, and it's up to you to go out and get the projects? Yeah, I think we're working on this all through the seasons, and that season has no indication on acquisitions of projects. I think that is up to us. Very good. I'll just have one more before I leave over to others. We talked about projects going to financial close, et cetera, impacting the overall EBIT level or sales level of the business, and less in Q3, more in Q4. Is there any specifics that we should think about in terms of the general milestone payments that you achieve from the ongoing projects? Will that also be more skewed towards the second half of the year, do you think, or should that have a stable contribution in Q3? Yeah, that development is very much from the construction portfolio, relating to, like you say, us completing these milestones. You mentioned that, Paul, with the six projects that we have here to hand over during the rest of this year, and a couple of those were planned for Q2. We believe that there will be projects handed over in Q3, but also in Q4. More details than that, I think is hard for us to comment on. Very good. Thank you, Johan. Thank you, Paul. Thanks. I'll get back in line. Just to remind everyone, if you would like to ask a question, please press zero one on your telephone keypads. Maybe while we- Yeah. Go ahead. Go ahead? Maybe while we wait for further questions in the audio, I can pick up a question here that we received in the IR mail, coming from Eivind, analyst at Carnegie. Hi, Eivind. Can you talk a little bit about the EBIT margin progress in the second half of this year? Is there any differences between margins in Q3 and Q4? Well, I think partly it is when looking at the construction portfolio, the same comment as we answered to Olof. Then, like you mentioned, Paul, in terms of the projects that we have under realization, there is a big tilt towards Q4 for those projects and that will obviously impact the financial development. Yeah. There are no further questions on the telephone lines at this time. I stand corrected. We do have another question from the line of Olof Cederholm of ABG Sundal Collier. Please go ahead. Yes. Hi again. Sorry, I had to ask one more. Just on the current market activity that you're seeing in the product acquisition part, are the projects that you're looking at skewed more towards any side of the spectrum, the late to mid to early stage, or is it possible to talk about that at all? If so, it would be interesting to hear if you're now going after more late stage compared to before, for example. I can take that. As Johan also pointed to, we have a very strong late and medium or mid-stage portfolio. I think the big volumes will probably come from mid- and early-stage portfolio projects. We are, of course, deploying a bit more capital per megawatt into the late stage. Maybe volume-wise, mid and early will be dominating, but capital spend will be dominated by late and mid-stage, and there is no change in strategy towards what we look at compared to in the past. We will continue to acquire project that fits the investment profile that we're looking at and that has the opportunities that fit the strategy that we have laid out. No change there so far. Thank you very much. There are no further questions on the telephone lines at this time. Please go ahead, speakers. Yeah, I'll just check here if we have any further questions in the IR mail. No further questions posted there either. Okay. I think we can call it a day. Thanks, everyone, for participating. Thanks for a good quarter, all employees listening in and all stakeholders. We are very much looking forward to continuing with this type of quarterly reports and to keep you updated on our way towards our medium targets that we have previously announced. By that's all from me. Thanks a lot. Johan? Yep. Thank you all. Okay, bye. Bye.