Good morning everyone, and welcome to OX2's Capital Markets Day. My name is Katarina Grönvall, and I will help you through the day. I am Chief Communications Officer at OX2, and on my right-hand side is Henrik Vikström, our investor relations director, who will also be hosting this day. Just to get a glimpse of what is happening today, let's take a look at the agenda. Let's take a look at the presenters first. We have several speakers. Of course, we have our CEO and CFO who will be joining us. You will be meeting up with a number of people representing our different technologies and of course also someone talking about sustainability, our head of sustainability. Several speakers on stage today, you will be meeting them closer very, very soon. If we take a look at the agenda, please. We start out with a short introduction, and then of course it's also year-end report, so it's the Q4 presentation, then the market outlook and then a short coffee break, followed by the different technologies, a bit about our OX2 model for financial, value creation and sustainability, and then you will be able to put forward a number of questions. But before we kick off, let's just talk about in case of emergency. If anything happens, we don't have any planned drill for today, please walk out that door and take to your left. With that, I think we should get started. Yes. There will of course, be opportunity to ask questions, so don't be shy. Our plan is that we should have time for a couple of questions after each speaker, starting after the fourth quarter presentation around 10 o'clock. For you in the room, if you wanna ask a question, just raise your arm and wait for the microphone. For you on the web, there is an opportunity for you to send questions through the chat, and they will end up here, and then I will read those questions. Then we will have a slightly longer Q&A session in the end for the questions that we haven't had time for earlier through the day. Very welcome everyone. With that, I leave the floor to you, Paul. Excellent. Thank you, Henrik, and thanks everyone for joining, both in the room and on the web. Clicker. First agenda point will be to take you through bit of the market that we are active in. We're working in the energy system that is now in its fifth evolutionary phase since the Industrial Revolution. This is a system that has been evolving. Evolving energy systems is not something new. We do take advantage of new technology, new knowledge, and we've done so for the last 250 years, where coal first started to pave the way, and then in the 1850s oil and gas came with new use cases. 1900s hydro, 1950s nuclear, and then the 2000s is obviously and clearly the age of renewables. The speed of implementation is picking up mostly because of the learning rates that has pushed the costs down to a level where we now run fully subsidy-free implementations in most of the markets. The old power sources, however, just become more and more expensive, and they are also less and less popular to support financially, as we now have the knowledge that we are not just burning fossils, but we are actually burning the planet. On the go, we do create a deadly dependency on rogue states and nations. That's a bit of the backdrop, not something new with an evolving energy system. With that to the left, you see a reputable analyst firm, Bloomberg forecasting the coming 20 years or so, and the growth of the renewable sector. We will talk a bit later about the exact drivers behind the growth, but we can just confirm that this is from basically all sectors, industrial, consumer, transportation, and in all geographies that we are currently present and in the process of expanding to. This is the underlying market. This is kind of the fundamentals for OX2, the reality that we see every day, a significant increase in demand for more clean power. This knowledge that our technology is market leading give us comfort to continue investing over a long horizon, much longer than what we could in the past when the drivers were slightly different. What we also do is that we test ourselves on a weekly and daily basis, to see, through, a close dialogue with our stakeholders, the financing community, that we are, in the right direction, and we see and get positive feedback that, our products are really, attractive. People do want to invest directly into the energy transition. We will talk today about OX2's products and how they are growing in number, and that, however, the core of OX2 remains. All of these products are, parts of solving the great energy transition puzzle, or the great shift. In every puzzle, you don't have just one identical piece, you have multiple pieces to fit. Over the last couple of years, we have created significant value, developing multiple technologies, and in 2022, we started realizing some of these values. We will talk, as you saw on the agenda, more to every product, onshore, offshore, and utility-scale solar, but also about our enabling technologies, batteries, Power-to-X, all summing up into more complex energy systems that we are now developing. This has an implication of how to understand OX2. More technologies, more use cases and products, gives us more flexibility, it gives us better visibility and even greater growth opportunities. Today, we will also talk about how we are foreseeing the overall financial development of OX2 based on these opportunities, all under the umbrella of powering the great shift. This page you recognize from previous reports. OX2 is now a European leader in renewable energy. Looking at our core onshore wind, we have built more than anyone else in Europe. We have great visibility for the near term on our onshore portfolio. We've had a great start to the year, both in Finland and Sweden, with several applications coming through with legal force even quicker in some cases than what we expected. Maybe we can talk a bit more to that when Hillevi is on stage. Only last couple of days, we didn't get appeals basically for significant volumes, which was a bit unexpected in the past, where appeals have been more kind of the usual process. We do now start to see the effect of the higher electricity prices and people understanding that we do need more power production across the country and Europe. In 2022, we also did our first sales in offshore. We did our first sale in solar PV, and we started our first battery storage, one of the larger battery storage and one of the first significant utility scale storage projects in Sweden. That we will talk a bit more to over the course of today. The figures, you have all been receiving copies of the report. Strong growth, 50% up in net sales over the course of 2022. Strong operating margin as well, and the return on capital employed, which is very much part of, what we optimize for, and the business model is built to deliver strong numbers on. Return on capital employed ended 37%, slightly above that for 2022. That is also, for those of you who do not know OX2 that well, we don't hold the operational assets. The assets we have is the pipeline, and that brings us visibility into the future. It also gives us free cash flow. We can invest into the growth, the pipeline, and this is a comparative strength, in our opinion, compared to several others in the sector. The business model, as I said, cash generative. We've sold 8.1 GW now, including the offshore sale down that was concluded in Q4 since 2004. Looking to the center of the page, we now have a portfolio of some 38 GW. Development is at 28. We have a technical commercial management portfolio that is growing. We have a construction portfolio that has delivered very strong under very difficult circumstances last couple of years. We have also here included for visibility the sold megawatts with potential milestone payments. Anton will be able to talk a bit more to the offshore portfolio. Broad geographical presence. We will discuss a bit how that looked like in the past. Today we cover about 10 markets in Europe. All of the black dots you have there are different OX2 locations where we have offices, so we are very local when it comes to development and catching opportunities, but also very central in the way we operate and share knowledge across the company. This geographical presence, we continue to expand, and we will talk a bit more about that when we come to the market section later on. Why don't everyone copy this business model that we clearly see to have proven successful? We have several competitive advantages in the way we operate, and here are four of them. We have a very strong transaction engine in the company. During the last two years alone, we have acquired about 6 GW of different portfolio projects. At the same time, we have also transacted and realized value from about 5.6 GW. That means that these teams, kind of located in the center of OX2, is always in the market, very kind of active on finding and executing on opportunities and very well connected with the rest of the company. We have a commercial driven organization, you will hear from some of our country managers today. Development is not only what we target on. We work a lot with financial KPIs. We have never developed a project that has not been profitably built. Once we have had approvals from on the project rights, we have always seen to that this project is built. The scale gives us quite a few advantages and will be even more important in the future. You can notice that suppliers are focusing more and more to get back to black numbers. There was heavy losses on the OEM side last year, and they are focusing on core customers in order to bring costs down and maintain volume at a good rate. Scale will continue to be very important for us. We are a European pioneer in the sector. We have done 3.6 GW to construction start, 3.7 GW even now, pioneering several of the key components to ensure commercial viability of wind power all the way back from the first corporate PPAs, the first non-recourse bank financing, and the first non-subsidized wind farms as a result of all of these advantages. Having that long track record is clearly an advantage hard to copy. Looking at our products, we mentioned it a bit in the beginning, flexible and asset light, so we are able to move and cope with different macro environments. We do not tie our capital into too long horizons and meaning that we are able to create value across a number of positions in the value chain. Johan will talk a bit later about the data over the last year for delivery performance. This is of course a core to taking our role in the value chain is that we cannot just sell it. We need to take it all the way through execution and delivery on strong results, both to generate more business with the market and also to be able to book and have the visibility on the numbers that we book at construction start. Very important part of the business model is the capacity to execute on the projects we have sold. All of this, summing it up, we have been profitable and self-funded since inception. Strong focus on every project and the company returns, and that has been a core competitive advantage, and that also brings us to where we are today. We will talk in more detail about the financial targets, and we have been public for about 2 years now. During this period, we have developed our offering. We were a 1 technology company coming to the market 2 years ago, and now we have much more of diversity in the technology and also geographical portfolio. That's why we're adding some financial targets to the previously communicated targets. We are committed to remain at high volumes above 1,500 MW on average this and next year. It's a big step up from the past. We are also introducing to better understand how we think, how we structure our own business planning, the CAGR operating income growth of 25% per year over the coming 5 years with 2022 as a base. You remember that 2022 was a strong year for us as well. Another part, return on capital employed, as I said in the beginning, sticking a bit out in the sector with very strong return on capital employed. We want to continue with that and set ourselves a target of a continuous return on capital employed above 25%. We continue, however, to invest in development and the organizational capacity capabilities. This year is going to be heavy on investment, the majority of products for sale in 2023 will come second half of the year. I'm sure we will be able to talk a bit more about the timing of the projects. All in all, very proud to have the team here with us presenting a very strong result in 2022. It's gonna be fun to talk to all of you about the coming 5 years, which we have now started to visualize a bit more also publicly. I think that's for the introduction and stepping over to the Q4, maybe Johan want to join me for this section. We will have a Q&A after these couple of slides here. Starting on the year as a full, because a quarter is a bit too short time period to understand a company like OX2. For future value creation, the development portfolio is a good measure. We grew the portfolio during the year with more than 10 GW. We expanded into more technologies, we ended the year at about 28 GW of development portfolio. The sales you have also seen about 4.9 GW of sold projects, including then the 4.4 GW of Offshore partnership with IKEA that we concluded on in Q4. We entered several new markets, Greece, Spain, Åland. Åland is a market in itself. It's not a country. We're very well aware of that, but it's a standalone market in terms of decision-making, so that's why we report it as a separate market. The team is continuing to expand with almost 100 persons joining OX2 over the last year. We've had good traction in Italy, where we have our first wind project in realization at the point, and even Romania has proven very strong in developing the portfolio over the year. We have, looking back at the year, seen successful development in the countries we have expanded to over the last two years. We will go through the financials in detail, but as expected, the strongest financial year to date, we are on the growth phase. So this record is of course up for challenging in the coming years as well, and we hope to be able to report new records every consecutive year in the future. Organization mentioned is expanding, and we have spent quite a lot of energy and emphasis on building even more efficient structures catering for further growth outside of the 370 or so persons that we ended the year at. The Q4 in itself, we acquired 500 MW of late stage portfolio, among them, 150 MW that is already now in realization, so permitted and ready to go with grid capacity. Big volumes coming from PV or solar in the near future. We have also been able to start and secure quite a lot of land, new greenfield of more than 600 MW. Surprisingly, solar PV is also in Finland proving to be now competitive and profitable. We are seeing use cases even in the northern parts of Europe now as cost has come down and efficiency up on solar, where we really believe that solar can play and will play a role both for OX2 and in the energy systems in the Nordics. We have mentioned the sales. We have had difficult supply chain. You all noted Vestas and Siemens having increased their prices quite a lot. For instance, this project, Ribberget, which is in the northern parts of Sweden, has not benefited as much from the higher European electricity and energy prices. We were still able to go to construction start with very profitable numbers on this project. I think that was, yeah, that was something we worked hard to do, very proud to achieve in Q4. Niinimäki, also a large but challenging project with slightly lower wind capacity, or than what we are typically used to. Even this project, high CapEx, but very strong interest drove the prices up to where we could book strong profitability also on this project, Niinimäki in Finland. Of course, everyone have noted the offshore portfolio where we got or partner in for 3 projects. They're very actively participating in the development. Strategically important for them to see more production coming online as they are big consumers and also investors into the space. Very happy with the Ingka cooperation on our 3 Offshore projects that closed. The construction portfolio has delivered very well. We are delivering quality on a daily basis, keeping everyone safe. No major incidents either during this quarter. At the end, we had a record 1.3 GW on the construction. We have already this first 2 months of 2023 delivered 1 of the projects that we had previously set out to deliver in December. It fell over into 2023 without financial impact. It is now being or has been delivered the first of it. A significant event also in offshore, even more projects coming from that portfolio in Finland. We started development as we got the exploration permits on a project in Finland. The value chain we work in, you now recall we don't have operating assets on our book, but we have development pipeline, we divided into early stage, mid stage and late stage. During this period, it has remained fairly intact despite that we have moved quite a lot over into construction. There's been good development overall when it comes to the underlying fundamentals to get these permits. We walk into 2023 with a positive view of that the late stage portfolio will be possible to go to construction on profitably, and that the other projects have a good probability of moving further in the development pipeline. No maybe big surprises here on this compared to the previous quarters. We continue to grow our TCM. That's also just maybe a point to make. All of the projects that we do sell do end up in our long-term asset management. When we have sold them 200 MW, it moves into the TCM bucket. 4.6 GW was taken out of the portfolio. There were some changes. We constantly review the size of the projects, and this time, there was a downward revision of about 400 MW. Before we have added 600 MW of greenfield, and another 500 MW of acquisitions, whereby some of these projects directly came into the late-stage portfolio. We see good opportunities to continue with this acquisition pace, both acquiring early and mid, but also the very important late-stage acquisitions. The portfolio is mainly Northern Europe still, but as you can see, other markets and Poland is growing and that is also what we foresee for the coming years. Just a couple of project examples. I mentioned complex energy systems. One of the parts in a more complex energy system where we go from providing products to the market that is just selling intermittent electricity at a live electricity market. We are now developing also hydrogen pipeline that will be a secondary market to several of the offshore projects we're building and also to the whole renewable market itself. I think looking 5, 10 years ahead, we will have projects that tap into a different revenue stack than just live electricity. You will have the possibility to go to the hydrogen market, both for storage or direct implementation into industry. You will have the ability, we see more and more of our development coming into hybrid projects where you can also offset through battery. You can offset the production and the sale pace slightly, which is, for instance, what Bredhälla can offer to some of the renewable projects in the nearby. The energy market and our position in this is clearly changing. We're kind of exploring these type of 24/7 delivery methods to PPA buyers where you need different type of energy storage, both short and medium long-term, in order to sustain that. A lot of things happening in the space. We also note Spain here, a new market for OX2, we have a team working from Madrid and Sevilla as a base. There's a lot of PV or solar competence after decades of implementation into the energy system. That's where we have our solar PV hub. We were able to acquire a late-stage portfolio in Spain, now having a late stage of more than 200 MW in Spain and in realization. This is also clearly showing that we are able to export this business model very efficiently and profitably throughout both geographies but also technologies. Moving. I mentioned that we have already handed over one of the projects that we're prone to deliver in 2022. The 83 MW Mäkikari project was just handed over last week to our customer. The following projects are also very close to do so, Puutikankangas and Rysteri. Then you see from this list that we have a quite busy schedule in construction. Some projects are even moving faster than planned. For instance, the southern projects like Marhult and Klevberget are moving slightly ahead of schedule. Good. Wow. Lot of, lot of operational comments, but the financial review, you want to... Yeah, sure. Come up and bring this forward. Thank you. A lot of good achievements. Fully agree when looking at both the Q4 last year and also the full year 2022. That's not only from an operational perspective, but very much from a financial perspective as well if you've digged into the numbers that we released this morning. Zooming in first and looking at Q4 a bit. In terms of financials, very much a quarter that is characterized by the completion of the sale of the three offshore projects that we sold to Ingka. Significant impact on the volumes we've sold, as well as the financials when looking at the very strong gross profit. That is also sipping down then into our operating income performance, as you can see. Also, not fully satisfied, but happy to see the uptick in the acquisition pace in Q4. Paul mentioned the late-stage project in Spain that we acquired. Now we're combining that with another portfolio that we had in Spain and taking that to the market. Looks very promising. In addition to acquisitions that we've done in Italy and Romania as well. Quarterly figures is one thing in our business. I keep coming back to that for those of you who have followed us and listened in to our previous earnings calls, looking more on the longer trends is important, given the volatility that we see depending on the sales mix. From a CFO perspective, looking at then the LTM figures, the full year figures for 2022, very comforting to see here on the KPIs in terms of sales volume, in terms of the gross margin, the profitability that we've been able to achieve, both from the delivery in the construction. We went into 2022 with record high construction portfolio. We've increased that even further. We've delivered very good on the projects in construction, as well as then the projects that we've sold in quite a turbulent market environment, both on the supply chain, and Paul talked a bit about the increases we've seen on the CapEx side in our onshore wind projects. Also of course the capital market side with increasing interest rates and us still being able to achieve good profitability on the projects that we've sold. Acquisition full year volume, we came in a bit above the guidance that we had, SEK 600 million in deployment, then close to SEK 800 million. We are also in the report commenting a bit on the outlook where we see this pace continuing into 2023, above SEK 800 million, come back and talk a bit more about the project opportunities that we see. This is also good to come back to and a bit remind ourselves when looking at OX2's performance on individual quarters, especially the very strong quarter that we had now in Q4, with a lot of new sales, both the offshore project and also the two projects that Paul mentioned, the Finnish Niinimaki project, 145 MW, in addition to Ribberget, in Sweden. You can see on the sales here, basically at the same level that we had in Q3. Q3, as you might remember, we didn't have any new sales, we didn't have any project handovers, and that is impacting our gross margin significantly in these quarters. Whereas when we have a lot of sales volume, when we have construction handovers that we actually didn't have, as that was postponed into Q1, we're seeing then the significant positive impact on the gross margins. That's important to remember. Looking at the longer trends, better temperature measure on how our business is performing. There you can see in 2022, very much based on the good sales volume that we had in 2021, the record high construction portfolio that we went into 2022 with, as well as then the significant sales volume that we've had in 2022. Now covering more technologies, as Paul talked about, and more markets as well, and being able then to deliver on the construction performance that we did, and then good profitability on the project sold, and that is what you're seeing on the strong gross margins as well. Still, when looking at our operating margin, really good performance, 15%, but still impacted by quite big investments that we're making also for the future growth. Our financial position, very strong. It's improved even further in the fourth quarter. Again, of course, the offshore transaction with Ingka now having received the first payment in relation to that sale, coming in with a very positive contribution on the operations cash flow. We also had a positive impact from the construction portfolio, the network and capital development there with a lot of advanced payments. We are now, I think, when looking at the negative working capital in the construction phase, close to sort of the upper limit that we typically see. I mentioned that before, that the range is quite broad between zero and 20%. I think we came in at 16% end of Q4. One shouldn't expect that positive contribution from from the construction portfolio going forward, but rather see that normalizing in the coming quarters. Still, with a significant uptick in investments in new projects, we were able to increase the cash position even further. We continue to see a lot of good opportunities out there and hope to be able to increase the acquisition pace even further. We are happy to be acting on these opportunities from a very strong financial position. This is tying in a bit to the acquisitions that we've done already. It's a quite good mix, we think, in terms of the geographical coverage, Poland being the biggest market for us last year in terms of projects that we've added through the acquisition engine, and also a good mix in terms of the technologies, where solar was the biggest technology for us, but also, as we mentioned in Q3, storage now, an area that we have added portfolio into. Outlook for 2023 then to continue to increase the acquisition pace based on good opportunities that we see. Summing up a bit the 2021, 2022 period in relation to the financial targets that we communicated back in connection with the listing. In terms of the growth targets, the megawatts sold, 500 on average or exceeding 500 on average for the 2021, 2022 period. We're overachieving that quite significantly. A big contribution of course being now the farm down of the sale of the offshore projects to Ingka, but also a solid performance in the onshore products, having sold some 1,200 MW during this time period. This is also what we see going forward. I'll come back to that when we talk about the guidance for the coming years, where we see these volumes both onshore and offshore to continue to increase over time. Operating income-wise, with the significant uptick that we saw in the profitability in 2022, we're well on the way to reach the previous financial target of SEK 2.5 billion in the medium term. We're updating that and stretching the growth targets further into the future with our new financial targets. I'll come back and talk a bit more about that. I think that was that for now at least. I'm sure we will get some questions and have a dialogue around that. Just concluding on the Q4 very quickly, as Johan mentioned, strong continued acquisition momentum. We were for the full year able to invest slightly above the guidance. The sales traction was notably higher than what we had set out to achieve in terms of volume and now also with multiple technologies and different value chain positions. This is going to continue to be a very strong traction also. We started our first construction of a storage project, challenging to opening up a new market, but we've done so before, and we did so last year as well. There is a lot of knowledge being made from that. You will hear Michiel talk about the storage position with OX2 shortly. All in all, summing up operationally to a strong operating income as well from the development in Q4. For us into 2023, we remain very focused on growing the portfolio. We believe that volume will play a great part of the success for developers in the future. Both through acquisitions and greenfield, we intend to, during the year, grow the portfolio. On that theme, there's also a need to open new markets. We've talked about the European corridor being now more and more available to us as we have positions all the way from Southern Europe to Northern Europe. We also intend to keep focus on our target of becoming a global leader, meaning countries outside of Europe, markets similar in shape and form, OECD countries. You have a couple of big markets, very interesting markets that we work actively on opening up. The organization is something we continue to invest in and growing. We do see that we have great potential to employ more talent, and we've had a good year on retaining and growing the talent base. Now with a European opportunity to join OX2, that's the same theme for 2023. There will be a strong momentum in growth from the organization. Majority, as we said, of these projects we now have very strong visibility on. We'll hit sales during second half of the year, but we have, I must reiterate that, very strong visibility of the year. Now also, even with the start of the year giving us a good start on more legal force permits in both Sweden and Finland. Very good visibility, but a slightly backloaded sales volume for 2023 is what to expect. I think that was the Q4 summary of the report. I'm sure there are questions and thanks for... Yes. Any questions here in the room? Should we start with Olof? Yeah. Microphone. Microphone. Hello, Olof Cederholm, ABG. I have a question on the visibility. You mentioned it several times, strong visibility on projects Can you talk about the mix of projects that you have visibility on? Is it mainly onshore that's going to take you to above, 1,500 MW, or do you expect other technologies to play a role as well already in 2023? I can start commenting on that. As we have also said on previous earnings calls, we don't go into exact, the exact mix, but we see underlying growth in our onshore, where we sold some 480 last year, and onshore then being both onshore wind and PV. When we talk about offshore, I think we've said that before as well, when looking at the 2023, 2024 period, we also see that offshore will contribute positively to our earnings growth in that period. Okay. can I ask again then? Sure. It matters a lot if you have a farm down on offshore. Mm-hmm. You did close to 5 MW then in 2022. Can we think about the 1,500 MW target as onshore and solar, and then offshore comes on top? Are you in your own mind adding on offshore into this? Yeah. For the 2023, 2024 period, we see that it will be a mix, and we see that there will be growth across the different technologies. With the base of 500 delivered in onshore last year, we see growth in that, and we see that offshore as well will contribute positively in the 2023, 2024 period. I can just also add to that now adding offshore to the volume targets, we do not consider the 1,500 MW an average over this period to be a stretch. We have very good visibility on the products that you mentioned, the onshore and solar, to reach those. We will of course add a lot of volume from offshore and also storage during this period. Very good. Thank you. If I may ask another question before I leave to others. Your portfolio. Can you talk a little bit about the historical conversion rates from early to mid and mid to late? When you get to late, how much is converted into real projects historically? Absolutely. The late stage. Let's talk first about the acquisitions. What we have to date not had to do is to write off any acquisitions. We've had a 100% success rate of the acquisitions we made. As you know, acquisitions have been a major contributor to growing the portfolio. If we look at the early, mid, and late stage, we can take the easiest first. Once we have reached late stage and legal force permitting, we have never failed on a project. The timing has from time to time been delayed, and there's been some waiting periods for grid, et cetera, but we have never had legal force permits on a project and had to then cancel it. There's also a 100% hit rate. There's, I think a more tricky part to talk about how today's portfolio is a replica of the early, mid, and late stage 5, 10 years ago. I think the data sets to do any kind of meaningful forecast going forward is too small, to be honest. Our promise is basically, we don't spend money on project we don't believe in. That's what you see kind of on a quarterly basis, that we then take projects out. We believe in the portfolio we present on a quarterly basis. That's what we spend money and people spending their time on developing. Once we believe that they are not profitable or that they will not have a good chance of being permitted, we take it out. I don't think we can support you unfortunately anymore in kind of the conversion to the different phases. I... Thank you. Okay. Thanks. That's good. Oskar Lindström from Danske Bank. A couple of questions from my side as well. First of all, I mean, you have a new financial target now of 25% operating income CAGR for the 2023-2027 year period. Should we expect that to be a relatively stable development throughout this period, or is this sort of very back-end loaded that will sort of have a pop in 2027? Mm. That's my first question. Yeah. Let's come back and continue the discussion on the financial targets when we talk a bit more about it later as well. It will of course not be linear, but one shouldn't either expect that it will sort of be no growth up until 2027. It will be profitable growth up until 2027. Thank you. A follow-up question or a question which ties into this. I mean, you're saying now, which I think makes absolute sense, that the megawatts to financial close is a less relevant indicator for your business growth and earnings growth. What indicators do you think we should be looking at to in order to get a feel for that you are sort of developing in line with your financial target? Yeah, the project portfolio, of course, being one, that is growing over time, that is being progressed over time. Then also bearing in mind that the product offering that we now have depends a bit, and differs a bit between, technologies, that one can also, see, realizations coming in different phases, not only in the late stage. We constantly monitor sort of what you really can't see, what we have screening, in terms of new project opportunities and the acquisition pace, where we were happy to see that sort of pick up, in Q4 and actually overachieving a bit on our guidance in what we could deploy, capital in attractive opportunities. Here we expect that to continue, so I think that is important for us as well. Thank you. Just a final question from me at this stage is on your balance sheet and your even stronger net cash position at the end of last year. I mean, you do indicate that you wish to continue to have a high pace of acquisitions. You know, given that you were able to increase acquisitions and still increase your net cash position, how should we expect this to develop? Or are you saving up money for a period of larger investments ahead? Also with introducing now the new financial target with return on capital employed, we are very much, and that's something that we want to signal to our owners as well, aware of that, capital sitting on our bank account is costing us and costing our owners return. With that new target as well, we see good possibility to deploy the cash that we now have at hand with good returns to our owners. All right. Thank you. We have 1 question here from the web. What can you tell us about current market appetite for renewables on the back of higher interest rates? Has the mix of buyers changed between industrial, utility, financial market and so on? Yeah, I can take that. We have several processes running in several markets. We've concluded a couple in Q4, as I said, under quite difficult circumstances fundamentally for these projects, Northern Sweden with less uptick from the long-term electricity prices and the finished project with slightly lower winds. We were still able to attract very strong interest from a variety of players. At that point in time, I believe that the interest rates were very much calculated and modeled into the process. Yeah, we could see maybe less dependency on heavy leverage in the bid structures. When the cost of debt comes closer to cost of equity, there is no lack of equity in the market. What we more see is that the all equity buyers may be slightly more competitive. Industrials have really felt the pain of what the higher electricity prices can do to their underlying business, so they become active as well. We see several instances of that in the current processes that we run, that the industrials that has an offtake built into their own operations are quite competitive as well. We reach with this product where we take the full development and construction a number of different sectors. Highly levered buyers, all equity buyers, but also industrials. The mix has maybe shifted slightly off the highly levered. That's also quite natural. Looking 10 years back, this shift has been, it's not the first time there's been a bit of a movement in the space. Demand is stronger than ever despite the cost of debt going up. Yes. Hi. Even Gørvik from Carnegie. A couple of questions. The first one circles back to your return on capital employed target of above 25%. And just benching that towards what you delivered in, from 2020-2022, which was way above this target, how should we think about this target going forward? Does this mean that you will tie up more capital, you will do more kind of brownfield, you will do more acquisitions which are more costly than doing greenfield, or, how returns have been previously compared to what you look ahead? We could have thought about that there will be a lot of questions on the financial targets already. Let's come back to that as well. In short, with the return target that we now have, we're also catering for a broader product portfolio that we have. For example, the Bredhälla storage project that we've started now to also construct on our own books, we see good returns and a project like that meeting this return requirement. We still believe that that is good returns on the capital that we deploy. It should be seen also in light of that we are targeting a broader opportunity universe. The battery storage project, is that a kind of change in strategy that you will do more kind of projects on your own books? Not necessarily. We will optimize the value creation and profitability. What we saw with the Bredhälla project was that we had a lot of inbound interest for that project. We see that by developing and progressing that project further in terms of optimizing the revenue streams on ancillary services, capacity services, as well as de-risking the product in the eye of the customers and the yield that means, we think we can create good value from starting the construction. Just one final question relates to the volume targets for 2023 kind of back-end loaded. There were some project handovers that slid into 2023. You say you have good visibility, how firm is that visibility on project handovers for 2023? I see that Karlskoga handover is kind of progressing ahead of schedule in line with Ocean Winds's communication previous week. How firm are you of projects not sliding into 2024, both in terms of handovers but also volume divestments? No, we have good visibility. When looking at how sort of the timeline looked for the projects to be handed over last year, there was a lot really at the end of Q4. I think that makes when looking at the portfolio now, it will for sure, like Paul said, be a busy year for our colleagues in construction, but it's not as many projects that are sort of targeting end of Q4 as we had in 2022. Also maybe mentioning on that supply chain has regained some stability over the last 6 months. Yeah, slightly more confident about the volumes to be handed over for 2023 then. Should we take one final question from the web before we move on? Mm-hmm. That's regarding our revenue reserve as of the fourth quarter, meaning contracted revenues to be booked throughout construction for 2023, 2024, 2025. How explicit do we want to be on that? We don't comment specifically on the SEK billions that we have in the construction portfolio and asset management contracted. Of course, with also the two projects that we sold now in Finland and in Sweden, having added a couple of SEK billions in order backlog that we are then to deliver in 2023, 2024. Just like I said, when we went into 2022, we had a very strong and growing or had growth in the construction portfolio, that has increased even further going into 2023. Okay. I suggest that we move on to market outlook and strategy. Good. Thanks. Thank you. Excellent. There will be more opportunities to ask questions, both after this session and after the concluding remarks. Digging a bit deeper then into the key market drivers, we come from a policy-driven market. Renewables was very much kind of a response to the environmental movement, being supported. I'm not sure that it was ever supposed to be subsidy-free, but the learning rates, because basically no other sources of energy has ever made it to subsidy-free levels. I think what really separated renewables from most of the other power sources we have still in the mix is that the learning rate is so, you're getting exposed to the learning rate. The turbines, the panels, et cetera, have much shorter. Well, it's not like implementing 5 reactors and then that's done for 50 years. You don't get much of a learning rate through doing that, but rather thousands and thousands of turbines going through automated processes, you learn from every project, and et cetera. The demand growth came from basically policy, but I don't know if it was intentional or if it just kind of ended up being so cost competitive that demand has switched from coming from the industry because of its cost base, its speed, and its volume that it could be implemented on. It's been a quite dramatic shift of what has been driving the demand for our sector. It's mainly then you've seen industries talking a lot about other sources of, of power generation that they want to see more of in the mix now that is almost uniquely renewables that is being requested by industry across Europe. This is basically because they're talking their own their own story. They want to reduce their OpEx and in general, power cost is a significant part of European industry OpEx. It's a big part of consumers consumer indexes and inflation indexes. We need to kind of continue to bring the overall energy system costs down and here the renewables has a great advantage. As I said, reduction of CO2 emissions, that's basically where we started from. That remains. It becomes more and more obvious that this needs to happen now rather than late. Countries like what you wouldn't maybe expect to be fast movers, Germany and the automotive industry is now moving very quickly into CO2 free mobility and transportation. The EU, for instance, just set 2035 as the cutoff date for even selling fossil fueled cars unless you buy a Ferrari. There's big movements still to kind of be implemented in the CO2 space where we came from kind of a small part of the energy system, this is now being adapted widespread across the globe. I think with greater urgency than in the past. You couldn't really see the effect. Now we have daily nature catastrophes. We have melting icebergs, whitening coral reefs. Everyone is being impacted much more visibly to this as well, not just you face the costs. The third or fourth part of what is now pushing not just governments and decision makers, but also the public opinion into fastening up the implementation of renewables is of course the energy security. Whereas we have confirmation from EU that basically the only source of power that could create a self-sufficient Europe on power is renewables. We don't have natural resources in Europe that other geographies have to create a fully independent power system. That has become very obvious for everyone that is an advantage for both Europe as a region and the renewables then move on. There's a couple of pluses and minuses, and if we look to the left, there is a replacement of existing capacity that we expect. Just in Sweden, just to give you an example of that, we've seen the government targeting 300 TWh in a system that is today 140 before 2040. That's just kind of 20 years or less than 20 years. Half of the 140 we have in production today need to be replaced out of technical reasons, not political reasons, but end of lifetime technically before this period. There's a huge amount of current power production that needs to be replaced out of a natural life cycle reason. That's also going to be the case going forward. I said, we don't in renewables have 100-year lifetimes as what you have or 150+ as you have in hydro. You rather have a quite short lifetime per unit, comparably. The replacement will always be a major driver for developers and implementers of renewable energy like us. That's one big part. If you look to the next, we've talked a bit about transportation. I think most is now being exposed to electric cars, more and more often. Transportation, heating, in Nordics, we have already a power-generated heating system. That's what we see also in rest of Europe. Cooling, of course, not that much of an issue right now in the Nordics, but other jurisdictions that we are active in has a very good match with the cooling needs. We have on top of this electrification, and as I mentioned, this is maybe where most of the demand come from. This is a powerful sector with a lot of jobs at risk, job creation, wealth creation for nations, and a very heavy lobbyist for easing up on the electricity permitting system. We see new businesses being moved to Sweden and Europe, also a bit dependent on kind of how we were exposed to the supply chain chaos on back of COVID. Also, when you had different structures, basically. Now we're moving quite a lot to automation. The advantage of having production in cheap labor countries is, I think, less obvious than 20, 30 years ago. Now you have power costs, and optimization as much more of an advantage, and bringing then the distance to the customers, is definitely an upside to the home shoring strategy and use case for a lot of industries that has moved out to Asia in the past. We have that existing kind of industry, but also new industry because as I said in the beginning, this is a big system under change. We will need hydrogen, we need batteries. The investment opportunities into new systems, into the next generation energy system, is huge. It needs to be fairly local. We see battery factories, we see hydrogen electrolysis, and we see industries converting as well. I feel fairly confident that as this industry is now pushing for renewables. That's a voice that cannot be basically silenced. There are so many dimensions they talk to. The last, but more maybe debate, the discussion is of course, the export of energy. Why should we sitting in Sweden with cheap renewables, export this to other markets? We have a trade union, we have an EU setting the regulations for this, meaning that we will be forced basically to have export. That also comes with a build-out of export cables. It comes with a... Talks very strongly in favor of intermittent renewable sources that can be exported across a much wider grid, electricity grid, but also be exported in other intermediaries of energy like hydrogen, like e-methanol, and other e-fuel sources. The export will continue. What we do here is, of course, yes, power will increase, but energy efficiency measures will increase even more. I think what we've gone through in the last year is not a typical energy efficiency investment. People have shut down their heating. People have gone to having a shower once a week or never at all. I don't think that that's a normal adaptation that people will accept basically. So we do not see that the energy efficiency that we've seen, yes, we were able to cut some 30% of the peaks during last year. That's a crisis response and not something people will accept. We believe quite strongly in the case for a growing market with multiple dimensions and this is kind of picking up pace as well. We stand ready for that. This is not a unique Swedish, Finnish, Nordic, or even Northern European case. If you look to the global scene, wind and solar is basically in all jurisdictions, the cost leading technology. Utility scale solar has one, I think, issue or one elephant that needs to come out of the room, which is basically a high dependency on Asian production. There are big measures in the U.S. taken for that through the IRA of getting production of panels and inverters up to be more local. Europe see the same initiatives from several players. In all, we have a, I think, an unprecedented growth in the energy system over the coming 20 years, both with solar and wind. Looking to storage, this is going to be the natural follow on part of the implementation of intermittent sources. This is not some policy driven, it just makes good business sense to put different type of storage. You will if the electricity prices drop, you will start to convert into energy in different markets or at different times. This is very much following, and we see the effect of that from Bredhälla. When we model Europe, this could be a fully renewable energy system. It's going to be a much more complex system than what it has been. As I said in the beginning, the energy system has evolved into what we've seen over the last 50 years, and it will continue to evolve into something else. The net retirements of coal and oil is quite obvious over the coming 10, 15 years. It's now being driven by investments in the space that OX2 is working on. A 10% CAGR on solar. We remember the cost has come down significantly just over the last 10 years, more than 80% cost reduction in the power produced by solar. Similar is some 70% on offshore wind and slightly less onshore wind, still being the cost leader, but came in a bit earlier on in this cycle. Maybe some 25-30% of reduction in cost over the last 10 years. I think that has flattened out now. We do not foresee further cost decreases in onshore. I think this is as we are already by far the cheapest source of new electricity. There are other energy sources that will continue to tick downwards. Like as I mentioned, solar will be competitive in other markets that five years ago or even two years ago they were not. Looking a bit to kind of summing up the key market trends. As I said, we've gone from policy to having an extremely strong pull from the industry, never seen in the past. I think the effects are, it's a bit hard to forecast what the effect will be, but it's very significant when you have the base consumers, the base industry providing for jobs and value creation in all industrialized countries. They are the one now requesting heavy build-out of our products. We've talked to the generation, transmission and storage all being part of the power system. This is also why we are now updating our financial targets because we are working so much broader than just on the generation of onshore wind. We are a company covering all of these bits and pieces into the energy power puzzle. The supply chain remains very challenging, but there are other industries that has gone through this in the past. We see that with the cost increase or that we have, we have been affected by, there is very strong profitability ahead for the OEMs as well. They have been able to increase their selling prices with more than 40%, and we have been able to pay that. I think that's the that has not moved us into a loss-making position. There are accounting, timing, for when they can book the new project revenues. As well, pointing to how important it has been for R&D in the industry to move costs downwards and why that probably is at a flattening out or has leveled out on the generation side. We're still seeing the system being developed, but on the generation, it is now at a level where it's so cheap that they need to kind of get the quality right. OEMs have been hit majorly by warranty provisions over the last couple of years. We have seen it, but with our contract structure, we have not been impacted financially by it. You can read from the OEM's annual reports that warranty provisions is up 50% since 2021 only and at an unsustainably high number. We're working with the supply chain to come back to black. We have a lot of partnerships discussions. We are a very solid volume provider to them. It is, of course, in our favor as well to have a healthy supply chain. On the growing focus from governments, I think the governments do what the people and the industry basically tell them and want them to do. We're in a populistic phase of European politics. Having the crowds and the kind of the masses with us will be and will continue to be even more important. We're coming from, I think, a bit of an underdog position as an industry, moving into a phase where we are actually competing with very significant numbers and discussing basically, are we looking at the renewable energy system in Europe, or are there other competing energy sources from the past that will be part of this? I think this is something to focus on even in the future to make sure that we get the facts right. We've been very focused on kind of looking project by project and making sure that we provide kind of a quality product at good profitability. We are also seeing a quite big need to educate the market, educate the government about what we actually can do. Here we're spending a lot of resources together with the industry, as I said, not just the wind and PV industry, but also the base industry is now trying to get the message out that this is renewable. Renewables is the way to fuel further value growth in the markets. That's a bit of the backdrop. As you can see, I'm fairly confident about the fundamentals much more than in the past. That also gives us, I think, the backdrop and the confidence to continue exporting our business. We've said that we have come from a past where we were onshore wind. We were Sweden first, then Finland, then Poland. Up until 2022, we have now created a European leader in renewables. We are not just a wind, onshore wind company anymore, but rather a quite broad technical company that can provide much more services than just the onshore wind. We aim to continue to doing that. I think, Finland and Sweden will describe a bit what they mean by solidifying their position in existing markets in Europe. We are also very much seeing several big jurisdictions outside of Europe lacking the player like OX2. We have several of the same fundamentals for growth in Australia, in Canada, in the U.S., where all of these mixes of technologies are cost leading, and the energy system is in a similar position to what the European is about to be replaced. We continue with that and having a strong financial position into kind of taking that leap step in becoming a global renewable leader is important. What is also important is I remember one of the first interviews after the IPO, we talked about kind of now our job is basically to create some sort of confidence and trust in that our targets that we set out, we can actually meet them as well. Now having 2 years of public track record with a communicated target, we can be fairly proud of the achievements we've done and what we've done with our brand in the public sector. Geographies, we've expanded to more than 10 geographies by now. We are at 4 core technologies, having realized value from all 4 of these. Portfolio has more than doubled over the last 2 years. We've been able to attract a lot of very, very skilled talent, and having more technologies and more geographies is, of course, a strong advantage in being able to recruit the people we do need and want. We've always been very commercially driven. We've done these 2 years with a strong growth in the financials and the profitability as well. I believe that we have used the strategic pillars very, I would say, well, in a public market. Consolidate the proven platform, gone through extremely rough times. The pandemic hit us first, then war in Europe, we have come out with strong results despite of this. We have diversified across the markets and technologies. We're scaling up hydrogen. I know a lot of my colleagues are quite excited about the hydrogen, this is a bit down the line, a bit hard to forecast exactly at what role it will play, hydrogen is an important part of the European system. On sustainability, we have taken great steps as well. We're growing that part of the business. For us, sustainability also include evolving the operating model because sustainability is also about corporate sustainability and how OX2 will be able to thrive long term. The business model has been proven. We continue to kind of broaden the playbook, and by so increasing the value that we generate. I think I'm slightly over time here as well now. I don't know if we have any questions on this section or if we. Paul, you're the CEO, so you're allowed to go over time. Okay. Thanks. Um- Wow. Thank you, Paul and Johan. Okay, welcome back. We will kick off with our technologies, first up is onshore. On stage, we have two country managers, Hillevi Priscar, representing Sweden, and Teemu Loikkanen representing Finland. Let's start with Hillevi. Please go ahead. Yes, Hillevi. I've been the country manager since 2014 in OX2. I've been on this growth journey for a while. Teemu and I will give you a short brief on our onshore business. Onshore wind is the fastest and most cost-efficient energy sources that we have. Large-scale onshore wind farm has been a cornerstone of OX2 operations since 2004. Thank you for that. We have established a leading position with 3.7 GW onshore wind, handing over to industrial and institutional customers. Really strong, putting us in a position of being a European leading market. As you can see on the map over here, we have an onshore portfolio now of 15 GW. Strong position as well. Majority here in the Nordics, in Finland and Sweden, and also in Poland. We are growing, as Paul said, in other markets as well. Anyway, without having power on the grid, we will not have a product. We know how to work with the TSO, transmission system operator, SVK in Sweden, Fingrid in Finland. Also the regional DSOs, distribution system operator, Vattenfall, Ellevio, E.ON, and going down to the local. We know how to work with these technical designs, but also the supply chain, which Paul has talked of. We know how to work with the local supply chains, how to build, also the balancing of plant. That means how do we construct it. We have been part of this ecosystem for a very long time. That's why when we go into buying projects, and also greenfield projects, I would say, we know how to do it. When we started a couple of years ago, we could do a transaction in 9-12 months. Last year, we did a transaction in 3 months from a project we acquired, Klevberget. Why could we do that? We knew the grid company really well, Ellevio. They had also possibility to push their own supplies because they knew us. They knew that we had a really high transaction security. We also knew the local community and the local authorities, because every time we need to adapt our permits, it's not that they are fixed. We need to fix them, move them, talk to the authorities, municipalities, County Administrative Board, because they are part of the project, the whole value chain, and that means also 30-50 years in operation. We knew how to move this, and that's why I think we will continue to be a strong market leading in all our countries because we build the same ecosystem know-how everywhere we enter. Handing over to you, Teemu, because I think you will go into Finland. Yes. My name is Teemu Loikkanen. I work as a Country Manager for OX2 in Finland. I have been at OX2 now for almost 10 years. OX2 started its business in Finland late 2012. I joined in early 2013, being then the first employee back. It was nice to be a Country Manager by yourself. I was thinking that I will talk about Finland as a wind power market. I will talk about OX2 in Finland. I will tell you how the future looks like for OX2 in Finland. Finland started construction of wind power quite much later than you started in Sweden. I guess that, there was a sort of like the feed-in tariff system that was established in 2011, that started the wind business, that actually started to grow little by little. The big change was actually 2018 when the wind power became subsidy-free, and we were able to construct wind farms without any support from the government. Last year, Finland was one of the largest onshore markets in Finland, or sorry, in Europe, with 2.4 GW installed. Why Finland has been and is now quite large market in Europe, I can say that, we have relatively fast permitting system. It is flexible. The government has been really putting more resources to the court system to speed up the court processes for renewable energy projects because they want simply the green transition to happen. I always love to give concrete examples, so I can explain what I mean that flexible permitting for what that actually mean. The recent project that we had all the permits in legal force is a project called Rajamäenkylä in Southwest Finland. That is now fully permitted. It consists of 54 turbines. Basically the only limiting factor we have is that the maximum three high tip height, so the total height of the turbine is 300 meters. We can always basically choose any turbine type within that dimension. That's the only limitation. In many countries, you need to start basically by selecting a turbine type, there are really tough limitations on the total height of the turbine. By adapting the most modern and the latest technology, we have been able to push the LCOE down, and that has made wind power really the most competitive way to build up a new energy electricity production capacity. We have Finland, in Finland, a really strong incentive for the municipalities to actually build these wind farms or allow us to build these wind farms in their areas. Why is that? There is a real estate tax that is being paid directly to that specific municipality, and the amount of this real estate tax is around EUR 30,000-40,000 per year per turbine. Once again, a concrete example, a project that you saw on the list, under construction in a beautiful municipality of Lestijärvi, consists of 69 turbines. There the real estate tax is expected to be around EUR 2.5 million every single year. In the municipality of Lestijärvi, there are 723 inhabitants. That means that it is EUR 3,500 per every single citizen in that municipality. How this small municipality has been using the tax money. They were able to fund a new school and renovating a kindergarten, only based on the tax income that the wind power project that we are constructing is generating. That is strong incentive for the municipalities to allow construction of wind farms in their areas. Third, really important thing is our grid system operator called Fingrid, as Hillevi Priscar mentioned. They have been really expanding their investment program, and they are now committed to invest EUR 3 billion in next 10 years for the backbone grid to enable all the wind power to connect to the system. This amount has been now tripled in last few years. The society is really committed to continue the growth of wind power. OX2 in Finland. As I said I was then starting the business almost 10 years ago in Finland. Today we are more than 80 employees in the country. We have the largest pipeline, the portfolio. We have grown or became the biggest developer in Finland. First financial close, it took us 3 years to get there, that we actually were able to start the construction for our first wind project in northern part of Finland. It was actually sold to IKEA. That was really a great day just before the Christmas back in 2015, and had really special feeling that you are actually able to contribute something that. I felt that there has been an, a trust from the owners for us from the beginning. It was great to actually contribute something. As I was saying, that the growth for OX2 in Finland started 2018. We basically saw what was happening in Sweden, that wind power is becoming competitive without subsidies. We simply started to push gas and acquire projects and hire more employees. I can say that looking back to our growth journey, that was a year when everything changed for us in Finland. What have we done so far? We have been starting or bringing 1.2 GW of wind power to construction in Finland, and the installed capacity by end of last year was 5 GW. We have a quite solid market position. Today, we have almost 5 GW development portfolio. There we have 1.5 GW in late stage, meaning that will go into realization in next few years at latest. We have been building the pipeline based on the acquisitions and also greenfield projects, meaning that we are actually starting these projects from the scratch by signing the agreements with the landowners. A few examples that how we are actually adding value. There has been some discussions on how we are able to... I mean, it's simply amazing result or result that you had an approach that you are able to acquire something and then flip it and sell it after 3 months. We have not been able to be that quick. We call it the flip case, right? Yes. What we have been traditionally doing in Finland, that we have been able to acquire projects in late stage. There are always some optimization work to be done, how we can then increase the value. An example of this project, Niinimäki, that reached financial close last year. We acquired that in December 2020. Then the main important things that we were able to do there was that we were re-permitting the project so that we basically had a free turbine selection. We were able to increase the total height of the turbines by 20 meters. As Paul was saying earlier today, that it was the site that has not, didn't have the best wind conditions. By adding these 20 extra meters really helped with the profitability. We were able to speed up with the timeline. The expected financial close was actually a year later. We managed to secure the grid connection by actually having an agreement with every single landowner for the high voltage grid that is 32 km. We were avoiding this expropriation process that normally takes 1.5 years, and we were able to conclude the agreements with all the landowners within few months. We were also able to speed up the timeline. Another example was Lestijärvi, which was then acquired in February 2021, and then we reached financial closing in November 2021, so 9 months later. There we also did a layout optimization and were re-permitting the permits. The case that we were buying had permits for 5.5 MW turbines, and then we were able to sell it 9 months later with the 6.6 MW turbines. These are the concrete examples of how OX2 is adding value in a period of ownership for these acquisition projects. How does the future look like in Finland? Based on the estimations from Fingrid, they are accepting that the electricity consumption in Finland will go up by more than 50% until 2030. Since we have the biggest pipeline in the country, including this 1.5 GW in late stage, there an expectations that, as I was saying, that now we are at 5 GW as installed capacity. In 2026, it will be 10 GW. With that timeframe, we are able to bring this 1.5 GW to the construction. Out of these 5 GW that will be constructed, we believe that we will then bring 1.5 GW to the construction. Our market share will remain strong in Finland by going forward as well. This is a brilliant way where we see how we work the ecosystem and also apply learnings from different countries. I think what will happen in Sweden, I think here what we learn in this ecosystem is how we work with the public affairs. How do we move society when you have different phases, for example, the municipality of Idre. We work this ecosystem together, but also when we're entering new countries onshore, we know where the pain points can be. Therefore, we really believe in this product because it is commercial and it's quick when you have the right sentiment in the society. Strong product. Thank you. Yes, indeed. Thank you very much. Thank you. Do we have a quick question on onshore wind? Yes, we do. Oskar. Let's see. Do we have a microphone? Should we take this one? Oskar Lindström with Danske Bank. I guess this is a question for both of you, but maybe starting with you, Hillevi. Do you see any trends in the permitting process for onshore wind in Sweden and in Finland for you, Teemu? Is the proposed new Swedish regulations, is that a net positive or a negative, or how will it change the ease for you in getting permits? Thank you. I will start then. I think when coming back to established ecosystem, I think you would have twists and turns. What we see now is a trend of ease, which Pål was referring. I don't want to talk about the project yet because we're waiting for the latest date. We see now that people locally start to talk about that we need the energy, and I think that's what's happening. The ecosystem is moving constantly. Yeah. We're seeing this, and also the way, I think coming down to when you do projects, project is needed, and we need electric production, and that society knows that, and also the authority system are well prepared for it. Yeah. Would you say that the Swedish system is moving closer to the system that's already in place in Finland? I would say so, that we're getting there. I think, yes, we're getting there. Yeah. Thank you. Yeah. Okay. From my side, we are going to have a parliamentary election quite soon in Finland, early April. Our key message to the politicians has been that don't change anything. Very nice. Yeah. Thank you, Hillevi and Teemu. Now we move on to offshore wind. Welcome on stage, Anton. Thank you, Henrik. Good morning, everyone. My name is Anton Embäck, I'm heading our offshore wind product. Today, I will give you an introduction to our offshore wind portfolio, I will also touch upon a bit on the business rationale and the plans ahead for our offshore wind business. As you can see here, starting out looking at the page, we are currently active or have active development in 3 markets, Sweden, Åland, and Finland. Where you can see the recognized numbers. In Sweden, we have 9 GW of development. Roughly half of that now have been divested to Ingka Investments, as been mentioned. In Finland, we have 4 GW under construction or under development, sorry. That will be added, as had been announced also during this, earlier this quarter, we'll be adding another portfolio. That number will increase in the next numbers you will see. In Åland, we have 5 GW under development at the moment. Starting out a bit on the background. Our offshore venture started really in 2018 after having observed the market or the offshore wind sector for a number of years. We initiated development for 3 projects, which are now those 9 GW that you see. That's spread across 3 projects in southern part of Sweden. The offshore wind sector in Sweden back then was highly uncertain. I think it's fair to say that there have been a stronger momentum now, and there's an increasing fundamental and support for offshore wind now in Sweden. I think it's fair to say that most people now don't think it's a matter of if, but rather when the first offshore wind farms in Sweden will come online. We started at the right time, we have now come to a relatively advanced position in the permitting stage, where all of those three projects in Sweden have handed in the permit applications to the government. One of the three have already received a green light from the County Administrative Board of Halland. We expect positive decisions for the remaining two during this year already. We see really that, you know, there's good momentum and strong fundamentals. Sweden is a strong market for offshore wind. We have good wind speeds, we have relatively shallow waters, and as been discussed already today, there's a need for the electricity, and especially also in the places where we are located with our projects. Of course, there's also uncertainties in the development stage. A few of the uncertainties in the Swedish offshore portfolio is the defense forces. Another one is the situation in the Swedish permitting system, where they are overlapping areas. We are used to handling these type of development matters, and we pay high attention to it. In terms of Parts of our portfolio in Sweden have been green lighted from the defense forces, we are continuing with the dialogue and believe that there are technical solutions to solve any other potential issues that the defense forces may see. In terms of overlapping site areas for the permit applications, that's also, of course, a matter that we pay high attention to. We do believe that we have a strong position on the project, on an individual basis, where our permit applications stand very strong. Proof of that is, of course, that the Länsstyrelsen in Halland, County Administrative Board of Halland, have already green lighted one of the projects. We do recognize also that the fact that we have a portfolio of projects where some of them are not in overlapping is also strength from a portfolio perspective. We also do believe that we do not consider the risk as being binary, so we do believe that a likely outcome will be that we will secure a fair share of that 9 GW in the permitting process. In Sweden, during last year, then was, of course, has been mentioned already, the divestment to Ingka Investments, part of IKEA Group, that was completed in November. It was signed in Q3 last year, where we divested 49% of the projects and that we refer to the farm-down strategy. What we mean by that is basically that we are at during the development stage, we are divesting shares. We're retaining certain share to continue the development, but in order to diversify and in order to recycle capital, we see this as a very sound strategy for the offshore business given the high investment volumes that we see pushing the large portfolio that we have. This was a key milestone for us. Now IKEA or Ingka Investments is on board. We see that we have good cooperation already and see that they are engaging, and we see that this will also benefit the projects in the further development stage and also into construction and operations. Moving on to Finland. As Teemu has just mentioned, I think you know, similar to Sweden, we see strong fundamentals for offshore wind in terms of relatively shallow waters and strong wind speeds, but also on the electricity consumption that Teemu just referred to is expected to increase significantly. We do believe that offshore wind will be part of the solution in the future energy mix in Finland. We leverage our strong position that we have from the onshore wind business, where, of course, you know, after 10 years and as a large development team on the ground, we see that we're well-positioned to continue the development of those projects. As mentioned, we have two projects under development during last year. Now we've added another one. All of those have obtained the exploration permit. Also we see that we have good progress on the remaining development activities on that market. So for the Finnish portfolio, we own currently 100% of the projects. It's likely that the farm-down strategy will be followed by similar trend in Finland in the future. We have strong hopes and feel that we have a good position in Finland given that we were early going into that market also in the offshore wind sector. Finally, Åland, we have entered into development last year. That was after having been screening the market for several years. We have been quite active on Åland for a number of years. Last year, we felt it was the right timing to set up a team on the ground, start development activities. We are currently running two projects, one north of Åland and one south of Åland, that we refer to as Noatun North and South. We see also on Åland strong fundamentals for offshore wind, similar as in Sweden and Finland. We see that there's very strong local support for offshore wind in Åland, and we also have or see high potential for potential Power-to-X, hydrogen, e-fuel solutions that will be combined with the offshore wind projects that we see. Åland is, you know, we treat it as a different market or as a separate market compared to Finland and Sweden. However, we do see a strong benefit in us having the market presence also from Sweden and Finland when we are developing on Åland. It is a different regulatory regime, which we pay high attention to and similar as in onshore wind and any renewable technology, development is local. I think that's part of our strength in our offshore wind portfolio, that we're very strong locally on all of these three markets. That's the portfolio. In terms of, summing up a bit in terms of when taking a step back also on offshore wind and why we think that is a good business area and good business product for us going forward, we see that it's a key technology on a global level to enable renewable build-out at a significant scale. We see that the Baltic Sea region holds a significant potential for offshore wind, which is not yet harvested. We with our projects, our market position, and our portfolio in general, we are well-positioned to harvest a decent share of that potential. We have been successfully so far driving the development through high speed, high competence, local development and really leveraging our long-term experience in development in these markets also when doing offshore wind development. Also we've seen that it has been advantageous to have the flexible business and financing model, and that's also recognized with the farm down that we've initiated in Sweden, that we'll expect to continue, and we see that as a strength in order for us to be able to push this quite significant portfolio of offshore wind in this market. It's very, very few other competitors that would be able to push such a large portfolio in these markets. We see that we have a benefit in the early mover advantage that we have when we moved into development in Finland, Sweden and Åland at the right time. Yeah, the plan is going forward, to really leverage this that we have built up in terms of competence and experience in these markets to also expand the offshore wind portfolio going forward. I will pause there, and, I think I'm not sure how I'm on time, Henrik, but I think we have time for a question. Yeah. Okay. We can start with the question from the web. It regards the grid connection in Sweden. Do you expect Svenska kraftnät to remain authorized to establish offshore grid, or will developers have to provide this? What does that mean for us? Yes. That's a question that we received before, I think, and the background is, of course, that when we started development of these projects, the plan has all along been for us to perform the grid connection offshore. We're doing that currently. We are doing the permitting works and the technical design works to be able to connect onshore. That's within our plans. We, of course, have had good dialogues and continuous dialogues with Svenska kraftnät and the TSOs continuously. We, of course, pay high attention to what's going on. The plan has all along been to really do that ourselves. The benefit with that is that we control the time schedule, and we are able to also permit that part of the work faster, likely than what Svenska kraftnät would be doing. The situation is unchanged really for us. The plan all along has been to connect and finance the offshore connection. Yeah. The final question, when do you expect the first Ørsted-developed offshore project to be operational? What year it says. You don't have to say month. No, that's helpful. I think what we see, the Swedish portfolio is the most advanced, where we have completed the environmental impact assessments and the full permit applications. We do believe that we can start construction. I think that would start with onshore construction, but basically take a final investment decision in 2026. The construction period would normally be around 2-3 years following that. That of course requires permit decisions to come in soon. That is still realistic. Towards the end of the decade, 2028, 2029, we do think that we can have offshore turbines online in Sweden. Good. Thank you very much, Anton. Thank you. We move into solar. Hillevi back on stage. Yes. Can you hear me? Yes. I'm of course the Country Manager Sweden, and we have a really good head of technology for solar as well, but he got stuck in Spain, I will talk about how we also work really closely to each other. Anton and I work closely together as well to get this product going. Solar. I could probably say PV sometimes, that's like the common language with us engineers, but I will stick to solar. Solar is the fastest growing energy source globally, it is really fast and quick, and we believe that this will be, as you can see here, also a huge cornerstone in the Ørsted business. We have already, now a 4 GW portfolio, even though we started 2019. It is quick. It's also diversified in markets. That means we started first in Poland, first adapter in the Ørsted business. Then we went into, you know, the more southern regions in Europe, but also in Sweden. As you can see, the biggest market is Poland, coming after. Sweden is coming after that. Then also Italy and Greece. How do you get this fast know-how in a product? You need to get the competence in. Therefore, we went to the country that has built most PV or solar in Europe, and that was Spain. We created this central solar hub, now heading by Isaac, where they have experience. That means we can capitalize the whole value chain experience really quick. Also what I always talk about, you know, the ecosystem. They knew the ecosystem, so they can help us, for example, in Sweden, how to develop it faster. It's not like wind. It's a different technology. It's easy to believe that wind, onshore and offshore, and solar are similar, but they are not. They have different fundamentals to create quick projects. We also said, "Okay, we need the know-how." Therefore, we have created this bigger organization around solar, which also are country-based. I have a team in Sweden, Teemu has a team in Finland, Kasia has a team in Poland. What you can see the, that still the large volume of the portfolio is in early. Coming down to the next slide, I will say, because that actually says, okay, how will we move this quick? It becomes to financial close really quick. Coming down, it is the fastest-growing technology. The cost is going down. It also has a quicker permitting. It's not that complex as onshore wind. We can see that this goes much faster through the permitting system, where you were saying, in all countries. It's also, I will come back to the latest point here. We also see that we can go into already onshore wind farms and create PVs, and therefore also have a grid connection. We could do a quick short time in grid connection timelines as well. Coming down to it's faster in permitting, also faster to get grid access, but also shorter construction time because it's panel that you put up, it goes fast. Why will OX2 be really, I mean, successful in this? It's because we have this central hub, also bringing it into the different countries. We know how to do development. We have the local know-hows. We also have the competence to see where do we do the engineering. We have an efficient, here it says EPC, engineering, procurement, construction structures. We know how to model this. Also coming, Paul says about this transaction machines and also acquisition machine. We have those machines, so we can also do DD, right? We know how to do this, and we could also buy it, and therefore using competences in-house to do it. Coming back to faster permitting, you can see this with the AgriPV. Some of the slides when you came in showed PV panels and then sheep and also plants. That means the biggest permitting conflict around PV is actually how you use your land. It's most often used as agriculture land. Here we see that we have a potential to combine this. That means it will go easier through the permitting system. Coming to my, one of my favorite projects or topics is mixed products, and especially also coming down to the Swedish system now. If you only have one power generating source, it's not that easy to accept it. If you can combine it with several as an energy system provider, solar, wind, onshore wind, storage, which Michiel will talk about, but also hydrogen, methanol production. If you can combine this, we have a much more valuable asset. We are really moving into this, that area. I think PV, the solar, is pushing that. Yeah. Coming into what Johan was saying in Sellers Services, how can we create more value of the assets, the land that we have, put in? I also would say that it's one thing to show how quick we are is the acquisition that we did in Spain with around 152 MW that we acquired late stage, that I think we can really move quick. That's also huge, I would say, success for our solar technology. Yes. I'm a fast talker, you can see that. That's good. Now we saved up some time. Do we have any questions on solar or PV? Even Gørvik, Carnegie. Just one question about integrating solar projects or solar panels on existing wind farms. Does the grid connection actually allow for this on all projects? I wouldn't say all projects. All projects are unique. We see in many cases, especially in Europe, that the profile match to the grid system, that you can have, like, alternative profiles. We are really looking into that area to see which projects we can put it in. Yeah. Not all, but some. Okay. Thank you. Okay. Olof? Yeah. Hi, Olof, ABG. You used to be a market leader in most of your markets, and now you're going to Spain, for example, and you're not a market leader, I presume, on solar. Are you still as competitive there as you are in the countries where you are the leader? Is it going to be difficult for you to retain sort of similar returns as you go out in the world and do solar where competition is tough? I think perhaps not. I'm not the right person to talk about. What I think we know and what to do is to create this ecosystem and also know that it's a people bound. Therefore, when we go and enter the market, we know what we should look at to be successful and also becoming leader. I think Poland is a brilliant example of that, where we weren't leader when we were entering, but now are. Finland also, we weren't leader when we entered, but we started to use the capabilities. I also think the diversified product area we have with onshore, offshore, and also solar and coming to storage, we could easily see what will be the most successful in this country or in this market. Yeah. Okay. Oskar Lindström with Danske Bank. A two-part question. You're talking about the faster development phase or faster development of solar versus onshore wind. Could you give an example of sort of what's the typical development time to sail for a onshore wind project in, let's say, Sweden compared to a solar project? That's the first part of my question. The second part is, when I've looked at your solar projects, a large, well, maybe all of them have been where you've acquired kind of late stage projects and then sort of, say, flip them within a year or so. Is that a model which you plan to or expect to continue to have? Are you gonna go more into sort of greenfield development of solar as you become larger within that technology? Thank you. What was the first question? It was the normal, let's say, development time from sort of a greenfield onshore versus a greenfield solar. I know it's a rather broad, so, you know, don't feel bound by it. If I can give you an example for onshore in Sweden. When I started 15 years ago, we could do a project in 3 years' time. Now it takes around 5-10 if you go greenfield. On PV we see the similar. There are certain projects that only took 6 months to permit due to they have another permitting system. I believe that we will see quite a lot of fast projects in PV, but then also then sometimes the project time will delay. You see now solar has, it's easier permit than onshore wind, so it's quicker. Yeah. I said, I also believe that onshore could be quick, as in Finland, we could also do that quicker. It depends on the project, so it's more project based. Your strategy for buying late stage projects in PV and then selling them shortly thereafter, is that going to continue or are you gonna go more into, sort of early stage projects as well? I think we have 2 models of getting projects. 1 is greenfield, 1 is acquiring, and I think we will use both in this technology as well. Wonderful. Thank you. Yeah. Thank you, Hillevi. Now it's time for energy storage. Please, Michiel. Thank you, Henrik. Okay. I will talk a bit about our new business, the newest technology in our company. I'll give you a bit of background why. Why are we going into storage, and why are we going to storage right now? I will also talk about where we are today, what have we done, what are we expecting from energy storage, and I'll talk about our first project, of course. I guess you are interested in our first construction project in energy storage. I talk about energy storage, but we are working at the moment mainly with battery storage. Of course, looking at technology development. At this moment, battery storage is the technology that's mature, that is cost efficient, and that is very capable of providing a lot of different services. That's also the reason why we are going into storage right now. We see that storage opens up a lot of new markets for us. We have been very used to being successful in building wind farms, now developing PV, solar, wind farms, selling energy, selling megawatt hours on either PPA structures or on the spot market. With storage, we can enter a whole different set of new revenue streams. You talk about revenue stacking, so you add a number of revenue streams for a project, which is ancillary services. For those of you who have been following energy storage market, it has been all started with ancillary services, frequency response, which is basically you sell your available capacity to the grid operator, the transmission system operator, for balancing the frequency, balancing demand and supply of electricity instantaneously. These are completely different markets separated from the energy market. With storage is extremely fast. You can go from zero to full power within half a second. This means you can support the grid. With the build-out of renewables, we are contributing ourselves a lot. Whether you see increasing demand for these services by the TSOs, increasing costs for the TSOs, for the countries to keep the balance. Storage is extremely good at providing these services. You also see with the exit of coal, for example, in Poland, where we are very active in storage, you see that there is a lack of capacity that can be available whenever needed. They have introduced a capacity market, which is a completely separate market from the energy market. You get long-term contracts, 17 years, by the regulator, by the government, to be available whenever they call you to be available. We have actually entered that market. We have won a contract. We have our first project in Poland on this plan to act on these markets. On top of these ancillary services, capacity markets, which are popping up in various countries, we see also that the need for balancing energy, for example, in Italy, when the sun shines with the build-out of solar, you see prices going down in the middle of the day. Storage can help then to transfer that energy and sell it later on on the day. What we call co-location services with solar, also with wind to a certain extent. We've seen this build out of storage mainly starting in the UK with ancillary services now coming to the Nordics. About two years ago, we started doing market studies in the Nordics, Poland, and Italy to start with. We saw a very good potential for developing and actually building energy storage, battery storage, acting on ancillary service mainly, ancillary service markets, but also with the potential to later work with energy trading, with co-location, with wind and PV. What we actually did was looking at we have very good organizations in the countries looking at the grid. We know where we are developing wind, solar. We were quite successful in quickly seeing together with the grid operators what are good sites for storage in these countries. That's what we are now developing today. We have learned a lot on all these different markets. We did not have that competence 2 years ago on ancillary services, and today we are actually constructing our first project that will sell these services. Our main market, apart from the Nordics, where we see a strong need for battery storage right now, in Finland, there has been quite some development. In Sweden, hardly anything. We are one of the first ones with large scale storage. These markets are limited. Ancillary services market is limited. We see our much larger potential in Poland, especially with the capacity market, with the exit of coal. Coming to Southern Europe with the build-out of PV, we see a really strong potential for storage, either connected to our PV projects or standalone storage. Storage charging from the grid and selling. Buying from the grid, selling to the grid. Both products we are developing. Storage will always be the enabler. We see it as it's the enabler for our main business, which of course is supporting the renewable transition and developing accelerating access to renewable energy. Storage is needed to make that possible. You've seen the picture that Paul showed, 1,000 GW expected in 15 years. We see about 30 GW of storage to be expected in Europe in 2030, where we now have in battery energy storage, we're not talking about hydro pump storage. We see now about 2 GW developed and built in the UK mainly, now coming to other markets. We are on the right time. We are entering the right markets. We will be one of the first ones in Poland to be on that market, capturing what we expect very high prices in these markets at the start with low competition at start. We've also been successful in attracting competence. It's all about competence. Where do you find competence on utility scale energy storage? UK. We have been attracting really senior experts from the UK on optimizing storage market, doing market analysis. We found technical competence in Italy, we are growing an international team, developing engineering, procuring and finding the right business model in every country. Storage is different from wind and solar in terms of this revenue stack, what I said, what spoke about. It's complex revenue models. It's not just a power price forecast with a production forecast. It's really someone has to push the buttons every single minute during the whole lifetime of a battery. You have to optimize during the lifetime how you use it. Technology-wise, it's also pretty different from wind and solar because the battery is actually. The way you use them determines how long they live, how long, how fast they degrade. We have been building up our competence in modeling, engineering, and actually procuring the first large-scale project. About where we are with our project. We found a very good opportunity in Sweden. Ancillary services are at all-time high prices today. Svenska kraftnät, the TSO, is buying these services, seeing a need for growth. They need more of these services with the wind power coming online in Sweden, but also in Finland. Their forecasts show a doubling of the need and I think a doubling of the costs for them. Very limited battery build out in Sweden yet. We quickly found a good site where we are actually developing 2 wind farms, as well constructing 2 wind farms. We had access to grid capacity. We knew the site, we knew the municipality. We could run that project very fast. Within about 9 months, we had all the permits in place for the project. It's now since November last year under construction, will be operational in the spring. We have actually run a sales process for the project. We saw a very strong interest from investors in the project, even though nobody had sold a battery storage in Sweden. We were the first one to be on the market with a project. Found major storage investors interested in our project. We got very good offers. We decided not to sell the project for several reasons. One of the reasons, what I mentioned, that there was no build-out of storage yet in Sweden. We saw quite high return requirements of investors. We saw that the market was not mature in Sweden. We believe that in the future, in the near, very near future, we see that that market will mature. There will be more trust, there will be more experience in the Swedish and Nordic markets and service markets, which we believe also will result in lower return requirements from investors in the future. That's one reason why we decided to build it on our own books now, with the aim to sell it later on. We also see that we are developing more projects, for example, in Finland, we might be able to bundle several projects in several markets as one transaction in the future. That's the two main reason. We also see that the modeling of this project is purely based on ancillary services, when we started the project, nobody knew about the war coming, the things happening with volatility in the market, electricity prices going up and down. We really see the project being based in SE4, the southern price zone of Sweden, where you see extreme difference in electricity prices. We see more potential in energy trading already today than we saw when we planned to sell the project. We see a real upside in that business model, adding trading to the ancillary services in the future. These 3 reasons together made us decide not to sell it and build it on our own books. That, that is our main, I'd say, main achievement so far. We see the future as right for energy storage. We have a lot of plans in a lot of countries, especially now Poland and then going to Italy as our main new market. Thank you very much, Michiel. Thank you. Do we have any question on storage? If not, I suggest that we move on to Johan to talk a little bit about our financial model. Thank you. Mm-hmm. Good. Great. Good. Good to be back as well. Right, now we've heard a bit more about our strategy, the different business activities that we have ongoing in different markets, different technologies, and I'll try to frame this a bit in how this translates into value creation for us and also our revisited financial targets very much than on the backdrop of the positive outlook that we see for our business. Paul described that a bit earlier in terms of the strong underlying demand that we see, very much underpinned by the ambitious targets that we have in the different markets where we operate on CO2 emission reductions, the electrification ongoing of the energy consumption, both from the transportation side as well as the industrial landscape in these countries, as well as the deemed need, I'd say, that a lot of countries have realized in terms of securing a better control of their energy production. We have previously communicated growth targets in terms of megawatts. These targets we stick to in terms of the near term, delivering more than 1,500 MW on average for the coming 2 years, and then beyond that, more than 2,000 MW. With the development and fast development of our business and also with the positive outlook that we see for OX2 in our different markets, we are now introducing a new growth target, extending that sort of beyond the time period that we talked about before, the medium term, sort of the 2025 period. With introducing an operating income growth target of 25% on average for the coming 5-year period, we're also better reflecting sort of the mix and how that will play into our profitable growth going forward. 'Cause as we see, and I'll come back to this a bit more in detail, when we look at the different ways for us to capitalize, on our products, it differs a lot what a megawatt of permit envelope sale that we did in Poland, for example, means in terms of sales value and margins, compared to the farm-down strategy that we have for offshore, compared to sort of the old bread and butter product for us, the onshore, construction wrapped, wind farm. That is very much, the backdrop to our operating income growth target, extending that also further into the future to 2027. For sure, it's a CAGR. It will not be absolutely linear. You know, also how the sales makes our growth investments, ties into our reported profitability, but it will not either to the question that we got earlier, sort of be a flat profitability and then a significant uptick, but it will be a gradual increase. On the profitability side, a bit back to how we run OX2, the operating margin, we're upping that target slightly as well. We had an operating margin target before of 10%. We're saying that over time, we will be above 10%, very much based on the strong position that we believe us to have in the value chain, the attractive margins we can get for our products. Also in terms of how we steer the business and how we've done that ever since inception, I say very much a balance in terms of the growth investments that we're undertaking for the longer-term growth opportunities that we see, while also having a short-term focus on execution and delivery and short-term profitability. This is also very much how we intend to run the business going forward. The last target, also a new target that we're introducing, return on capital employed, with the asset light and flexible business model that we have, we believe us to have a good visibility in the profitability that we're seeing in the different projects that we have in our portfolio. We are already sort of steering the business very much based on not only the profitability that we see when we invest in different buckets in different markets, but also very much on the return that these investments will be yielding. When we're scrutinizing and prioritizing between markets, between products, different technologies we've heard about, we're doing that very much also on the return that these resources that we deploy will be yielding. Now with introducing this corporate target, we're also linking that better to how we steer the business internally. If we move on and look a bit more on our growth target then, we are convinced that the underlying demand for our product is there. We're also convinced and get those data points constantly, that we have a very attractive product offering to cater for this demand. It's also with this belief that we have invested significantly over the last couple of years, both in terms of growing the project portfolio, as well as then making sure that we have the skill set, because that's really the core asset within OX2, all the skilled employees that we have, to also progress and develop the products going forward. You heard from Hillevi and Teemu and Michiel and Anton as well, that we in the different markets, in the different technologies, see very good prospects going forward. To make sure that we have the skill set then to deliver on those ambitions, making sure that our employees also are correctly incentivized is something that we have spent a lot of time developing, and I think we are in a good place. A lot of these investments is not for the delivery that we see in the very good 2022 figures, but really for the growth and the profitable growth that we see ahead. I think that is also what and how you should look at our operating income growth target that we have already for a number of years invested significantly in making sure that we now have a broad geographical reach. We have a good skill set to deliver on the opportunities that we see in the different markets. We have also a good model to share the knowledge that we have learned in different technologies, in different markets when we enter into to new markets. This is a bit technical, but also tying in to the operating growth target. The way that we are treating these development expenses, both the external development expenses as well as all of our colleagues working to develop our new products, is expensed as they occur. As you could see also in 2022, when we are realizing projects from this portfolio that we have developed that comes with very good profitability. That is also giving us good comfort in our growth target going forward. When we look and move into the profitability, really the value creation and profitability is created all through our activities that we do across the value chain. It's not showing up back to what I just said in sort of our financial statements that way, since we're taking the cost for a lot of the value creation as they occur. Really, our inventory, as I like to call it, our project portfolio, you heard that before as well. We're sourcing into that through two main channels, both when we start from scratch, a project, we call it greenfield, as well as continuously then sourcing in through our acquisition engine. That can be parts of a future OX2 product that we're sourcing in a quite early stage of development or can also be in quite late stages. Then doing the development efficiently, I'd say. I'm super impressed with the colleagues working with this. It's really a science or even art. We have a very good project steering model to cater for this 'cause here you can deploy a lot of resources if you're not doing it efficiently. We are good at making sure that the projects or the horses that we bet on are the ones that will succeed in the end, and also very diligent in not deploying too much development expenses too early on until we really have secured that the core competence or the core components of the project are in place, and that's also when we start deploying serious money into project. Then when we have sort of the final product in place, we go out and realize that product. We start the sales process. What is that product really? It's not only the permit rights, if you look at sort of the traditional OX2 product, but it's a combination of many different components that we have added into sort of the construction rights, where we have optimized the design, the technology content, sort of what kind of technology. If it's a wind project, what turbines. You heard Teemu talk about that we're using in order to maximize the output. Doing then the procurement in a good manner, important to secure our margins and the scalability or the scale that we have there, really being a speaking partner to our core technology vendors. Also then the construction wrap or the EPC, as we call it, the engineering, procurement, and construction. In addition to that, we're adding optionality on financing, offtake solutions, and asset management services. This is really the OX2 product. With this product, we're able to catch a broad customer universe. We get a lot of interest for this wrapped product, not only from financial investors, very much also industrial and also quite passive sort of pension capital that is interested in this type of product. That is also how we're maximizing the value for the product that we're selling. We're securing in the eye of the customer that this product, the wind or solar farm in the end, will be built based on the bidding or the winning price that they're offering, and also at what point in time they can expect the production and income for their behalf then to start coming. That's really also what we need to execute and deliver on. This we have done, I don't know how many projects, 60 projects, something like that, over and over again, and been able to deliver so that our customers are happy. They keep coming back to us and also for our sake in terms of profitability. This is very much then in the construction phase, in a way where we have also been able to confirm that the numbers that we thought when we sold the product is also what is being delivered in the end, and we never had a loss-making project for us. Very much about risk management and strong project execution in the construction phase. I talked a bit about our bread and butter product. That's the one I went through just now. In addition to that, as you've heard, we have also seen that the customer preferences, the different dynamics in different markets and also the type of product that we're having caters for value creation in different ways other than sort of the full wrapped product. We saw that last year when we sold a small solar project in Poland, the Rzeszów project here, where we didn't really see that the full wrap EPC product was giving the returns that we wanted. It was better for us to just sell the permit envelope. In these cases, and now back a bit also to the technical financial aspects of things, in these cases, we're then getting the full sales value and full margin for this type of product at the time of the sale. Whereas when we're having sort of the construction wrapped product, typically, and take this really for averages, 20% of the total sales value for that product is recognized at the point in time of the sale, and then the remaining 80% during the construction phase. We also heard Anton talk a bit about the farm down product, where we also continue to see a lot of interest for the projects that we have there, in addition to the 3 projects that we farmed down to IKEA. In terms of Sales and profits for such a product, then we're recognizing the sales value of the share percentages, in this case, Aurora 49%, at the time of when the sale is completed, in this case, in the 4th quarter. While at the same time then having further sales coming once we reach further milestones in the development progress of these projects, in addition to having the final compensation when we're selling our remaining 51%. Bredhälla, the storage product that we're now constructing on our own books, here you will be seeing that the CapEx that we're now undertaking on our own behalf will show up in our balance sheet. The revenues that will come, if we're selling this, decide to sell it during the construction phase or once operational, will then be the full sales value and margins, when that product is sold in the future. This is the profitability aspect, but on this, and I'll talk a bit about that when we talk about our return on capital employed, we're also of course applying, when evaluating here the return aspect on what products that we optimize for. Continue and summing up on profitability. I think we've proven ourselves that we've been able to deliver solid profitability over time. Very strong performance with the mix that we had in 2022. On the right-hand side here, you can also see the gross margins in the product mix that we've sold during the last two years. Tying this a bit back also to, okay, what's the difference here? Well, very much depending then on the type of product that we're selling, where we see that the two very good projects here in terms of gross margins are also then the two products that I mentioned, the project envelope on the solar project in Poland, and then the farm down on the three offshore projects in Sweden. This is tying back to how we treat the costs here in terms of project development and the personnel resources that is going into developing these projects all expensed. That's also back to what I said before in terms of how one should think about our profitability growth target going forward. That very little of the value that we have created in the 28 GW that we have currently in our portfolio, you can see in our balance sheet today. The remaining 11 projects here, quite broad range gross margin-wise as well, 8%-43%. Here, we're then selling them with this construction wrap product. The biggest component when we look at COGS, obviously being the construction CapEx. Project rights can also be a quite large portion of the COGS if it's a project that we have acquired, and then a small part being the sales costs associated with running these quite broad auction processes. On the operating expenses, development and personnel costs very much related to driving our portfolio forward and developing and progressing that across different markets, and technologies. Operating margin, the target that we have going forward based on what we see, the attractive product that we're able to offer, the confirmation that we keep getting even though things are moving on the cost side. We're upping that target a bit going forward to over time be above 10%. Also bearing in mind that I talked about when looking at the quarter, that looking at shorter time periods, of course, this will continue to fluctuate. Over time, we for sure expect our profitability to be above an operating margin of 10%. Return on capital employed, flexible business model, asset-light business model. Really the two key KPIs that we've been working with internally for a long period of time has been focusing not only on the profitability in an individual project, but also very much the IRR that we're getting on the resources that we deploy in a project, and then also the money multiple. Now also linking our corporate target to how we already steer the business, I think makes a lot of sense and hopefully gives our owners as well comfort in that we're using the capital in a sensible manner and also with the return that we see going forward and the good visibility that we have on the profitability and returns in the individual projects. We see that we can deliver strong returns also going forward. This is also tying back a bit to the question on, okay, now you have SEK 3.6 billion in cash sitting on the bank account. We see that we have good prospects in order to deploy that capital with good returns. You also, for those of you who have followed us a bit in terms of how we think about the deployment of capital and the asset intensive or capital-intensive construction phase, we're very diligent in structuring our product and projects in a way where we're not tying up more capital than needed. That's of course important when having a CapEx-intensive product. This is also, and I think it's a good thing to continuously come back and check why we haven't decided to move in to actually owning assets also for the long term. We see that with the return requirements that we have, there are other players with a lot lower return requirements that are better suited to own these products that we're delivering for the longer period in time. That said, with a project like Bredhälla, we see good returns from taking that product a bit further. To sum up, we see a very promising future for OX2. We're updating our growth targets, extending that further into the future beyond sort of the medium term 2025 that we talked about before. For those of you who have run the numbers, we also had an operating income target in the medium term of SEK 2.5 billion. With this new target we've set, we expect it to be above SEK 3 billion in 2027. Profitability, we will continue to have a focus on also delivering short-term profits. It will not be absolutely linear in relation to our operating income growth target, but it will not either be flat. One should expect it to increase over time here in the coming five-year period. With the return on capital employed, I think in the end, to all of us as owners, that's what really matters. Now also with this new target that we're introducing, we're also catering for more flexibility with the product portfolio that we now have. Thank you. Thank you, Johan. We have some questions. I suggest we perhaps save them to the Q&A session in the end in order to save some time. One question that I've received is the basis for the CAGR, and just to clarify that 2022 is the base year. Yes. Just so that's clear. With that, I think we hand over to Rebecca and sustainability. Hi. My name is Rebecca Karlsson. I'm Head of Sustainability at OX2. I'll present our sustainability approach and give you some examples of the work done during 2022. Our sustainability or sustainability is part of OX2's strategy, as Paul mentioned previously. Our sustainability approach will help us reach our mission to accelerate access to renewable energy in a sustainable way. We have a set of material topics that we're clustered into four focus areas, which I'll talk you through. We also have three long-term sustainability targets. The first one is to increase renewable energy production, which all my colleagues has given flavor to already. We also in the process of setting a science-based target to reduce our own emissions. During spring, we'll have submitted a target to Science Based Targets initiative. The second target is to be a leader in health and safety. A way of measuring that is to looking at Lost Time Injury Frequency Rate, and that is injuries that lead to a person being at home the next working day divided by a million working hours. That's commonly used in the industry. We have a target of Lost Time Injury Frequency Rate of 5. During 2022, we reached 3.74, so that's below the target. However, Lost Time Injury Frequency Rate is a lagging target or a reactive target. We're now looking into more proactive targets. One target could be safety activity frequency rate, and that is gathering all the safety activities we do in on a construction site and measure those. That could be toolbox talks, safety walks, audits. We're piloting that in one project in Finland right now, and if that turns out well, we'll employ that in all projects. The last long-term sustainability target is nature positive wind and solar farms. We were one of the first developers to set a target. And we're now working on measuring and finding good frameworks to use for measuring that target. Currently, during 2022, we had 87% of our projects in construction had positive biodiversity activities. Moving on to our focus areas. The first one, Foundation for Good Governance and zooming in on responsible supply chain. OX2 works according to the OECD guideline for multinational enterprises. It's really core for us to identify the most salient risks in the supply chain and work with the suppliers to cease, prevent or mitigate those risks. In solar and battery storage, there are a few severe risks that we are addressing together with the suppliers. I also think it's crucial to work with the industry organization and the industry to collaborate and really push the suppliers to prevent these risks. Moving on to climate and nature contribution. We, as you know, climate change and large scale biodiversity loss are two interconnected crisis. In all our projects, we work to minimize negative impacts on nature, reducing our GHG emissions and enhancing biodiversity, as well as increasing the level of circularity in our products. The third focus area is sustainable leadership. As Johan mentioned, our employees are our greatest asset, so their well-being and work environments are essential to us as an employer. We have 41% women in the company, and we also have a high Employee Net Promoter Score of 51. Our employee survey show that people feel a strong sense of meaningfulness and participation working at OX2. The fourth area is local engagement. As mentioned, we combine central capabilities across Europe with local development teams. The local aspect is really important. For us, local engagement, transparent communication, dialogue with the community is core to everything we do, so it's our social license to operate, basically. It could mean creating local jobs, using local housing, respond to any grievance that the community might have, collaborate with locals associations. It could be cross-country skiing, association, hunting teams, or whoever might be affected by the work that we do when we construct a wind or solar farm. We also have open houses, school visits to increase local engagement in general. I'll walk you through some examples of what we've done during 2022. We have Klevshult wind farm in Sweden, have received LONA funds for biotope care and wetland restoration. That project will increase biodiversity in a creek and reinstate a critical endangered freshwater pearl mussel. Another example is from Poland, where we needed to fell 90 trees to adjust access roads, and to compensate, well, we plant approximately 170 trees and bushes. Studies from an independent consultant show that in a 50-year period, the amount of carbon accumulated in the ecosystem at that specific site will be about 3.5 x higher compared to if we hadn't taken any action. We also use all the fell trees to. That will become habitat for animals or plants and creating nesting boxes, for example, for birds and bats. An example of biodiversity and local engagements being closely linked is a project in Sweden, where there's an old hydropower plant which stops fish from migrating. We've now funded research to see if we can create a new waterway for the fish to migrate. It's benefiting both the local community, which is passionate about fishing, and as well as the biodiversity in this area. I've already mentioned health and safety, our focus or our vision is to have zero accidents and zero harm to our employees and contractors. We really focus on reducing accidents in the construction phase. As mentioned, we've reduced the Lost Time Injury Frequency Rate to 3.74, which was in 2021, 5.97. Lastly, about local engagement. In Poland, the transition towards renewable energy has also involved changes in the labor market, especially the coal sector. In collaboration with a partner, we've created a training program for former miners to transition to the wind energy sector. That's it from me. Thank you. Thanks so much, Rebecca. Do we have any questions on sustainability? No. Okay. Thank you very much. Thank you. We ask Paul and Johan to come back on stage for some closing remarks and Q&A. In four minutes. Good. We are. Yeah. behind schedule. That's okay. There are some lunches. Yes. outside waiting. Hopefully we can get a bit of a dialogue before we send you off to lunch. Just summarizing what you heard today, we're solidifying our position as a European leader across more technologies than just onshore. This profitable and asset-light business model has shown to be resilient over quite a lot of years now. More than 10 years we've run it. We have provided very high return on capital employed over time. We have broadened the product portfolio, and this has then led us to guide you towards a couple of new sets of targets, whereby one of them is on profitability, the operating income growth of more than 25%. We also gave you some timelines that you didn't have before. We were just talking about midterm. I think that's summing up the message. We have questions waiting for us. Yes. Let's start. Let's start in the room. ... directly into that. Yeah. It's the usual suspects. Oskar Lindström with Danske Bank. Thank you, both and all, for the presentations this morning. If we look back a little bit, I mean, 2021 was the year sort of of the IPO and the expansion into Europe. 2022, we saw a diversification in terms of technologies, and you also introduced sort of a new monetization model for the company and sort of farming down in your offshore projects. What is going to be the big change or news in 2023 do you think that we should be looking forward to? If we tell you now, it won't be news. I think you can keep an eye on our overall, the fourth bucket that we are in. We said that we are now investing to consolidate our position in Europe. That means we need to show you profitable sales in the markets. We have now today three markets that we have profitable sales in. Team is working really hard to get that up to more markets. We said we are active in 10+ markets. I think that's the first thing that I'm at least looking for two. Kind of what are we doing to position ourselves for global leadership? Because the volumes that we have, targeted, even outside of the 2027 period, we really see kind of growth coming from outside of Europe as well. I think that those are our two kind of growth indicators. Of course, we will continue to show you that we operate well in the existing markets as well. Thank you. Yeah. Hi, it's Olof from ABG then. I have 2 questions. I'll do the first one, you mentioned that you've your suppliers, you have to take care of them. They have not been successful, maybe with your business, but overall, they haven't been successful. 40% up on prices. Have you been able to fully pass this on? Is the power of a high electricity price greater than the cost of 40% higher turbine prices? That's my first question. I think we haven't seen 40% on us. That's the average selling prices that we have been demonstrating. I don't think that we can just kind of say that we have 40% higher. Yes, as you see in the profitability numbers, the gross margins have increased. We have been able to reach a broader market, get paid for our products in a better way than years back. By so, yeah, indirectly passing the cost increase. On a follow-up on that, is it your sense that your customers are getting a similar return or IRR now as they did two years ago, or is it even higher these days given the electricity prices? I think the base case is similar, but there's more talking to the upside, long term, given what I commented as well, and that I don't think that technology will continue to bring new improvements on the cost downwards over the coming five years period. Meaning that existing assets should not feel the same cost pressure from new assets that they could kind of, or that they have been seeing over the last five years. If the next project always becomes a bit more expensive, then you're in a good position holding the asset as well. I think the upside, the risk is more on the upside, but the base case is still very similar on, owning the assets. Yeah. I think just to add to that we're seeing that some customers at least- Are maybe willing to take a bit more risk in terms of market exposure and not securing sort of the offtake to the same extent that they might have done two years ago. Perfect. Then, the last question from me is on the offshore strategy and the farm- down strategy. You've sold... If we take the 9 GW projects as an example, you sold 49% now. We just heard that if everything goes well, it's going to start being constructed in 2026. Do you foresee being an owner of that project when it's being constructed, a passive owner? Because I know you don't want to build it yourself. Have you decided already that by then you'll be out? It's not decided. I think we keep the flexibility. We want to be participating in the full value and the build-up and operating these assets. If an OX2 vehicle would be taking some ownership of the operating assets in the future, that's the flexibility we have. It's a couple of years out. Thank you so much. I got a question here about the asset management business. We haven't really talked that much about it. Could you say a few words about the importance of that for us? Yes, absolutely. It's a very important tool for development to remain the local stakeholders' counterparty throughout the operating lifetime as well, of the project. Development is as Hillevi and Teemu alluded to, a people's business. You gain confidence, you get the credibility to develop something on someone's land or in someone's municipality. During the construction and operational phase, it's also important then to be able to keep that interface to ensure that promises made are withheld. It gives us more credibility as a developer. It also gives us more credibility as a procurer and engineer company of assets. We know what works. We can actually bring those type of feedbacks directly into the next projects, the next generation of assets to be sold. On top of that, as you constantly comment on, it's a good business from a profitability- In itself. in itself as well. Both strategically and profitably, this is something we will continue to develop. Looking into the future, we can add a lot of services to this business as well. As we've heard, we are now starting to see more and more of selling not just live produced electricity, but the optionality to shift it out of the time zone that you produce it through batteries, or you can even shift it to different markets. I think here, we can support our customers through the asset management services, in doing so and optimizing the overall value of the assets. A question on solar. We're moving more into solar, and one question here is that the projects seem much less complex. Does that mean that it's more competition and lower margins than for onshore wind? Linked to that, what about grid connection? Is it easier for us to get grid connection on solar than it is on onshore wind? We have gone for the more utility sized, meaning kind of large scale solar. The complexity is there, but it's in a different shape and form than what you have on onshore wind. Onshore wind, you need to bring a huge equipment, huge cranes operate in very kind of difficult environments, under or very harsh climates, to get that to fit into the construction and operational schedule. If you look at PV, the complexity comes from another perspective. You have millions of panels that need to be installed. You have a lot of logistics around that. That is different, but it's still complex. The grid is very similar. Large scale grid connections requires very professional developers and EPC companies, as well as procurement. In onshore wind, we have practically 4 or 5 counterparties to manage. On solar, we have 10, 20 + providers. As I said, most of these come from Asia, where the development of the factories have started off. The complexity is there. When you look at the route to market, it's the same. You have live electricity being produced, sold in an electricity market through PPAs or through merchant structures. The business case and the build-up of that is very similar, that is very complex still. Yes, timing can be quicker, but it's not like overnight either. It's a lot of systems to align that much. Good. I should say that those of you who haven't had your questions answered, we will get back to you on that. Is there any final questions here in the room before we round up? Yes. Even Gørvik, Carnegie. Final question from me. I still feel like you're well capitalized to achieve your targets both in the short term and long term. I guess the final question is, when will you start paying dividends? Yeah. I think that's more a question for the board and owners. Also linking sort of the strong financial position that we have to our financial targets a bit, you can also see that with the growth outlook in terms of operating income as well as the return on capital employed, we envision that we will employ a lot of capital with good profitability going forward as well. We have promising prospects to do that as well. We have also said that we won't sit on capital we won't need. So. That we cannot allow us to. We will not do that. Good. Back to you, Henrik. Thank you very much, everybody, for joining. Now I think it's time for lunch for us who are here physically. Excellent. Thanks, everyone. Thanks to all the speakers. Thanks.