Welcome to the Permascand Top Holding Q2 Report 2023. For the first part of the conference call, the participants will be in listen-only mode. During the questions and answer session, participants are able to ask questions by dialing star five on their telephone keypad. Now, I will hand the conference over to the speaker, CEO Peter Lundström, and CFO Linda Ekman. Please go ahead. Thank you very much. Welcome to Permascand's Q2 presentation. Today, we will have an extended deep dive into one of our growth segments, the Electrification and Renewables. Before we get into it, we will take the Q2 highlights. We will have some extra comments or additional comments around our customer markets and how they are developing and what we can expect around them. Then we will sum up during the takeaways, and we will take the questions. If we start with the highlights, I mean, it is clearly that we did really, really good during this quarter because we made a sales record, and a record is a record. We did it through the industrial sales market, and we did it through the Electrification and Renewables market. These are what we are expecting, the, the going forward markets that will drive Permascand, and, and it will be the Electrification and Renewables markets where we will see the, the future growth coming. It's also important to highlight that we did have an uplift in the order intake, and it's driven from, from both Industrial Solutions, but also from Electrification and Renewables. We had a poor start from Q1, but as I said, it picked up quite good in Q2. We kind of keep our levels in the backlog from Q1. I think the third one to highlight is that we are on track with our investments into our innovation and technology, and we start to see and be in the finalization phase of these ongoing activities, and we can be starting to use these for our customers going forward from 2024. I think the last bullet is important to, to highlight that we do have a temporary dip in the cash flow, where we had some late customer payments that was restored or received in beginning of, of, Q3. Due to the fact that we did have a poor start in the year from lower order intake, we also see that the prepayments are lower from, from earlier periods, it's also impacting our cash flow negatively. We also see the change in working capital, as the third reason, why we have a weaker cash flow, maybe than what we have in, in the reality. If we continue, I will hand over to Linda, and we will talk about the revenue development over the period. Thank you, Peter. Yeah, we will look into some, some more details and look a little bit more on the revenue development and also the revenue split between the Permascand different segments. We had a positive development. We had a revenue of SEK 167 million in the quarter, that is a new, new record for 1 specific quarter. That is a total revenue growth. I think it's very interesting to also look at the share of revenue or the sales split per segment and how this has changed. I would like to compare the 1st and 2nd quarter 2022 to this year. If we look at how it is combined, there's a dramatic shift in product mix and sales per business segment. In 2022, the Water Treatment had a peak of deliveries, the ballast water. We delivered and had revenue of SEK 100 million per quarter last year. That has now changed to Q1 and Q2 2023, to ballast water and Water Treatment sales of around SEK 30 million. Of course, we are burdened by this Water T reatment slowdown. We have talked about this in previous reports as well. In the second quarter that we report now, we have managed to fill the gap from the lower, lower Water Treatment sales with deliveries in Industrial Solutions for greenfield projects, and most positive also, we have increased the sales in our segment for Electrification and Renewables. In this quarter, this is deliveries within electrification and power transmission. If you look at Q2 last year and this report, the industry sales has grown from SEK 50 million to SEK 89 million, and Electrification and Renewables has grown from SEK 10 million to SEK 49 million. If we look at the six-month period in 2022, Water Treatment stood for 67% of our total revenue. Water Treatment this quarter is 22%. Industry has moved from 28% to 56%, and Electrification Renewables have moved from 5% up to 22%. This shift in revenue between our segments also reflects the shift going forward. I mean, this is a future growth areas for Permascand. It's also worth to notice that the business type, we also look at the new sales versus the aftermarket and service business, and that is pretty intact. A little bit increase for, for, the aftermarket and service, that is now 26%, while the new installations are 74%. Some more details on the order backlog and the order intake. In Q2, we managed to keep the order book from the levels from the 1st quarter. We have an order book of SEK 269 million. Nevertheless, we see a decrease in total order book value over time if we look from, from last year until now. It is a fact that COVID and the global uncertainty has affected our customers' behavior. There is a challenging microeconomic environment, and that makes a hesitation for, for large investment decisions. Our sales teams, they struggle hard to get the final closure from our customers in, in Industrial and in Electrification and Renewables. Some of those products are really big, and there are a lot of factors that can affect the decision. It's financing, it's timing, material prices, but what's worth noticing that we haven't lost any orders, we haven't lost any customers. It just takes longer time. We have a lower total value, but if we look at the order backlog and how the segments are split in the value, we can see that the Electrification and Renewable segment has actually increased. Nevertheless, we have, since it's a lower total value, the guidance from the order book for the coming quarters is lower, and we are more dependent on new order intake. Of the total order backlog, 65% is for deliveries within the next 9 months. As I said, the Electrification and Renewables order backlog have increased. We also had a positive order intake in the second quarter. We had SEK 154 million order intake. SEK 64 million of that is Industrial Solutions, and SEK 85 in Electrification and Renewables. That is a positive sign, and also we have had a positive message from our partner, Verdagy. They have announced that they have received funding for their commercialization of a new electrolyzer module. It's worth to notice when we say we have order intake of SEK 154 million, if we look at the first quarter, it was SEK 31, and it is volatile. The business looks a bit like that. We have a lot of small orders, maybe SEK 1 million-SEK 5 million. We have some medium orders, and then we have those really large one that can be up to SEK 100 million and more. Of course, for a company like Permascand that has a total revenue of SEK 569 million in 2022, an order of SEK 1 million can affect the quarterly result very much. That needs to be taken into consideration when we look at the order intake per quarter. We go further into details and look at our segment, Electrification and Renewables. I normally call this our smallest segment, but it isn't anymore. This has increased now. The results for this segment, this quarter, maybe we can call it some, both sweet and some sour, maybe. We had a positive order intake, eighty-five million. We also have positive sales of forty-nine million. Uh, so now this segment is twenty-nine percent of the total sales. Um, this, this segment still, uh, has some challenges. It's still product driven, so it can differ. Uh, so the, the sour part or the maybe the a little bit less positive side is, is the gross margin, which is nine percent in this quarter. And that has to do with, uh, smaller series in production, uh, low volumes, and still a lot of development work together with our customers to get the, the products like they want it. And I think that Peter should fill, fill in on some more details on this segment. I mean, this is our, our future growth segment, Electrification and Renewables, and it's, it's, it's not only hydrogen in this area, but if you start with hydrogen, this is, this is, what I think everyone believes is going to be the, the growth engine and, and, where we need to bring capacity, and we really need to build hydrogen power plants to supply and, and to, to support the zero emission and Paris Agreement, and then to, to move industry and everyone in that direction. And today we have 10 active customer relations with projects, with, with, with order and sales. It is in the early stages. It's, it is small volumes. It is all these development and innovations that you need to set the parameters for, for both the product, but also for the manufacturing principles. To make it in large scales, it needs to be a kind of a proven concept before it actually starts to generate what we call average normal gross margins in our business, similar to what we see in the Industrial Solutions. It's 10 active projects. Then we have another set of of of of +10 customer interactions where we are in early stages. It, it is, it's not order and sales yet for Permascand. It is information sharing. It is some, some discussions how to solve maybe the product or, or, or the ability to manufacture it long run in, in, of course, in, in an automated and roboticized way. It's not easy to produce 1, but it is still doable to do 10. It's still doable manually, but when you start to be manufacturing 100,000 and 10,000s, it needs to be done in a completely different way. These are the steps that we are walking through with our, with our customers and with our organization internally. We also see that the commercialization, we're getting closer and closer every month, and we see the projects are moving, and this starts to be financed now. The customer set of 10 active interactions with orders and sales, I mean, they start to be ready to ramp up their business and their projects. That is really, really interesting to see now that we are getting closer and closer to this breakthrough, and for us, we talk about this commercial order within Hydrogen. With Hydrogen, we also have two other segments that are kind of living out of this green transition that is moving on, and that is the power transmission. We mostly, we do corrosion protection, and, and it's, it's linked to, to the, the development of, of electricity, the, the cabling over or under oceans, and, and also the, the, the build-up of, of windmills and other sources of energy, where you need power, power transmission and, and, and, and corrosion protection to, to be able to transport electricity in the way you want to do it. We also have some new customer wins there, and then that, that is order and sales in our books, and it's, it's gradually increasing with the investments into these new energy sources. The last one is electrowinning. It's maybe not a new market or new segments. I mean, it is metal purification. It, it is... We're talking about lithium as, as the future growth segments, but we have historically done copper electrowinning, and we have done other type of, of, of nickel electrowinning, et cetera, et cetera. This is also a growing market with more, more demand and supply going forward. We see this as, as well as a very important market, that this has been in our mind more an after-market and service, but we see a lot of new projects coming, and, and we have some, some new products, the lithium extraction electrochemical cell. It is proven because it has been, been run in, in demonstration at, at quite large scales for, for for a couple of, of, I think it was 18 to 24 months with proven results, and now it's a new project coming. And then, of course, after that is proven, and the third one and the fourth one is in pipeline to be executed. This is by far the most volatile segment at the moment, but it has the structure of being, being building up and being more stable over the times to come, where we'd also see that the volumes are starting up, and we can kind of go into the automation or robotization phase for, for our, our manufacturing and delivery, and also for the flexibility i- in, in handling many different customers in an efficient way. That is done today in smaller areas and more, more manually delivered internally in Permascand. Okay, let's look a little more details on the Industrial Solutions segment. This is a base industry that this is what Permascand has been doing for 50 years. It's a profitable business, and Permascand has a globally known know-how and excellence in this coating and electrodes. For the second quarter, Industrial Solutions had an order intake of SEK 64 million. We could deliver a sales of SEK 89 million and a gross margin of 39%. We had an increase in sales and then a decrease in gross margin, and that is explained by the price effect and the deliveries of the large greenfield orders and the increase of capacity in market. I mean, if you take Industrial Solutions, I mean, that is the, the backbone of, of Permascand. That is, that is where, where everything started more than 50 years ago. It is clearly the main businesses of the market and service, but it is a growing area. We are and have been delivering on a greenfield project, which is new build, which means that, that our share of the pie in the future will be moving into the aftermarket and service. So it is important that we do the, the, the greenfields and the brownfields as, as much as, as it is possible, because then we're growing our share within the, the very important aftermarket and service business. It's primarily dominated by the aftermarket and service business, and we're doing greenfields to increase that share of the pie. We also took a strategic step into new technology within the chemical industry, and we invested SEK 11 million into a company called Chemetry, which we have been partnering and working with quite some time now. They are in the phase of putting up the demonstration plant in Brazil, it will be tested during 2024, and we expect the conversation to start during 2025. This is little bit of new technology into the traditional field of Industrial Solutions, and we believe it will be an important step for making this industry a little bit more energy efficient and also lower the cost base for future CapEx and OpEx in this manufacturing plant at the customer's level. Thank you. Now some details on the Water Treatment segment, which in this quarter is our smallest, new smallest segment. We had a very low order intake, SEK 1 million compared to SEK 36 million. We had sales in this month of SEK 31 million, compared to SEK 99 million last year. The gross margin is down at 15%. We have spoke about this on the last presentation as well. The gross margin is affected by the price pressure in the market for ballast water, also the smaller series of production when we have lower volumes we cannot run our automating cells on full speed that we did last year. The same here in Water Treatment. I mean, this has been primarily new installations into the market. It was established in 2017 from legislation that every vessel needs to have a disinfection system to be able to cross the different oceans before they land in the harbors. We have had a very good, good ride during this, from 2018 to it peaked in 2022. Then, now it is less vessels to be installed, and we clearly see that the market is slowing down significantly. We do not expect it to pick up until we're coming into the important after market and service cycle. It should start around 2026. With that said, I mean, it is not only the new installations for, for existing vessels, there is also, of course, a market for, for new builds, which we are, are supporting our customers to deliver for, but that is on, on a much lower level than we have been, been seeing during the last four years of the peak of this business and this market. We're looking forward to the aftermarket and service business when it takes off and starts to grow from our install base. Okay, all this together, to summarize, we look at the profitability for this quarter. We compare a quarter last year with a gross margin of 38%, now we are down to 27%. That is a highly contributor to the lower profit this quarter. When you had a lower gross margin, it has to do with the volumes. We could, in 2022, have production series with our auto- automatization cells. We had a high capacity utilization. This quarter, we have smaller series, small volume. We also are affected by the price pressure and the mix. This together, the lower margin, affects the gross profit with around SEK 17 million. Another aspect to look at is the overhead cost or the cost base. It has increased over one year with SEK 4 million. This is due to employees for, for our future growth. We have invested OpEx investments for better competencies and to be able to meet the demand for, for the hydrogen, both within product development, but also the production technology. This cost base is, is around SEK 4 million. Another aspect that is affecting the operating income is the, is FX effect. We have a really boost in, in 2022 with SEK 9 million from revaluation of receivables and payables. We don't have the same effect this quarter, so that is another SEK 9 million, and that affects the profitability. All these three together, it, it, is around SEK 28 million lower operating income compared to what we had last year. That, of course, also affects income tax and the, and the net profit. Let's have a look at the cash flow bridge and what has happened with the cash flow in this quarter. I would say it is out of the normal. This is highly affected by the change of work- change in working capital, and it is a temporary adaptation for, for some new conditions, and the fact that we have been delivering on large order with prepayments. We also had late invoicing in June, and at the same time, the supplier payables are low. If we could say, summarize, we have paid our suppliers, but we have yet not been receiving the payments from our customers. That is a big effect on the, on the cash flow. Besides the, the working capital, we have also made CapEx investments. Peter talked about the financial investments in Northern America, but we have also made investments for our, our coating R&D and our technology center, a total of SEK 27 million. To finance the, those investments and also to finance the working capital, we have used our credit facility, and we have also taken some CapEx loan, an increase of, of SEK 55 million. The cash position at the end of June is SEK 60 million, but it's a temporary low level of cash. It was restored in July, when the customer payments started to be received. If we look at the, the financial position, it, it pretty much balances what I said about the, the cash flow. Permascand has a strong balance sheet. We have assets that is primarily the facilities, the robots, and the machineries for our manufacturing and our coatings. The current assets are the lower cash right now, but the receivables are temporarily higher. Total assets, SEK 562 million. Total equity, SEK 382 million, and the equity to asset ratio is 68%, which is really strong. To finance, as I said in the cash flow, to finance it, we have increased our bank loans. Non-current liabilities is SEK 84 million. That is bank loans of SEK 70 million, and it's deferred tax. We have the current liabilities, which is prepayments from customers and supplier payables. When we look at the net debt, it needs to be explained a little bit because for some quarters now, Permascand has had a positive net debt, which means that we have more cash than loans. That means that the blue staples is below zero. That is, of course, a positive sign, but it looks like it's below that. What has happened this quarter is that we have taken loans, we have used our credit facility, but I would say that is more going into a kind of a normal situation for a company to be financed by bank loans, and we are still at a very balanced situation. I mean, we have bank loans of SEK 70 million, but we have total assets of SEK 562. Even if the maybe the staples diagram looks a bit steep, I would say it's more like we are going into a normal situation rather than we have been before. Now we will move into a little bit more into the deep dive of Permascand business model, in particular, than the hydrogen market and the Electrification and Renewables. Let's just kick off with what we do. I mean, we are a company who is focusing on the component supply and the development of the component supply, and that to be an efficient manufacturing of these components and delivering in accordance to customers' expectations. What we are focusing on is the catalytic coatings, the anode and the cathode. We sell and manufacturing and produce electrodes. We can do it and sell it like that. We can also manufacture the complete electrochemical cells, where we do the steps, catalytic coatings, electrodes, and then the complete electrochemical cells. Then, of course, we do all these new installations, because we are very interested in the recurring and, and the aftermarket and service business. It's basically four levels of business that we are focusing on, and you need to be good in, in all these steps to be able to be efficient in the aftermarket and service grid. Then if we look at the, the, the circles to the, to the right, it, it, it can be simplified as what, what are the customers asking for? Well, they are asking for very efficient electrodes and electrochemical cells, where you have as low energy consumption as possible, and that you can run as high current density as possible. It's also around the, the, the products that you're delivering, the components you're delivering, that they have a long lifespan. I mean, these, these are tough, aggressive industries, where they are really focusing on having a 7/24, 365 days operations. It costs money if they have to do maintenance stop, and if they have breakdowns in the operations. It needs to be a reliable, energy-efficient components that you are selling to it. We are focusing on this electrochemical heart, as we call it. This is what we do. We don't do everything else within a chemical plant normally, but we are focusing also a lot about this, this, the ownership of the electrochemical cells and the electrochemical process. We need to be, and always work on to be more cost-efficient and to be delivering products that, that can, for the customers, be more efficient and more OpEx and CapEx efficient from the fact. What do we do to develop and to kind of meet the customer's expectations? Well, it is basically three circles as well. If you start to the left, it is around the coatings. They are very central in the performance and are kind of offering to the customers. It's also around how can we use new materials? Are there options to improve the performance, reduce the cost? Can we do it a similar way, but cheaper, so on and so forth. There's a lot of time, money, and efforts going into this, and, and particularly in the hydrogen space, this is really where, where we see the investments going into the efficiency of the electrodes, both the anode and the cathode. It's also about when you're talking about not only the electrode, I mean, how do you optimize it, how do you design it, and how do you put the, the, the manufacturing and the construction parameters together? I mean, you can make it very complicated and very difficult to manufacture, or you can make it more simple, which means that it is normally also more, more simple to manufacture, which means that the cost is normally also going down and the speed is going up in the manufacturing process. That is the last circle that is very important for Permascand, and that is to improve the manufacturing and the assembly processes for the customers, but also for all our different projects. These are in a simplified way what we are focusing in Permascand to meet the 4 levels of business, the catalytic coatings, electrodes, electrochemical cells, and then to have the recurring business going on over decades, and then to meet the customer's demand through how we are developing our products, how we're meeting the criterias, and how we can manufacturing and bring capacity and reliability to the process. If you continue and focusing on hydrogen, we have internally put up an ambition to... that we should put 5 gigawatt capacity for green hydrogen manufacturing to, to the year of 2030. The market opportunity is, is, significant bigger than that. It is depending on, on who you're asking, I will say it, it's going from 50 gigawatt to, to, to more than 300 gigawatt, but there is a mark around 100 gigawatt, between 70 and 100 gigawatt, that seems to be what many of the market institutions and research companies are, are, are stating is, is, a clear goal with what's, what's going on at the moment. If you look at what are we doing, we're basically focusing on the same things that we have done in Industrial Solutions historically. I mean, we are- we like to be the preferred supplier of all coatings, electrodes, and also the electrochemical cells manufacturing. In the long run, of course, to handle the aftermarket, the service, and to make sure that the end customers are having a smooth operation. That's normally the best way for them to earn money. We are focusing technology-wise, I mean, we're coming from the industry side, which is then the water electrolysis. We also have, through our collaboration and the work we have done with Verdagy, we have the next generation technology, which is the AEM. Why are we focusing on these two technologies? Well, first of all, these are the ones we believe will, will be the, the, the main drivers for the customer groups that we're focusing on, and we are looking into the mid and larger-sized installations. That's where we're coming from, and that's where we think we kind of have, have our DNA and, and where we can be successful. We can bring a good, efficient product, we can bring good quality, we can bring capacity to, to support this. That's why we are focusing on this, and this is, this is, for us, a quite ambitious target, the 5 gigawatts, for the next coming years. If you move on, and why I'm saying that, that 5 gigawatt is a quite big target? Well, if you take the, the, the operational capacity that we're using right now, for the levels of business that we're running, I mean, we are on the 600 megawatt level, so it's about 9 times that we are thinking that in the coming years that we will utilize. We have already in Permascand, during the years, we have invested in capacity. Today, we're sitting with, with, with 2.5 gigawatt of capacity that we can bring available to the market. If you look into the, the, the, the our thinking of, of what we have tried to achieve, over the last year, where we have invested into the manufacturing side, I mean, it has been basically 3 things. It is of, of course, around automation and robotization. This is to create the flexibility, to create kind of the, the repeatability, the, the quality, but also that we will be able to scale and to be, be, be, be flexible in meeting many different customers' requirements at the shortest time possible within our internal processes. The other thing is that the automation and robotization we have, have invested in and that we have installed in our facility up in Ljungaverk, is that they are modularized, meaning that, that they are installed in Ljungaverk, and we are able to do blueprints and duplicate it quite easily and move them wherever we would like them to be. We can kind of through this concept, I mean, we, we lower the CapEx and the OpEx. It, it will be more efficient, it will be lowered because it is a copy-paste process through the blueprint thinking. It is a standardized way of manufacturing process, so it also means that, that, that we can control it more easily wherever we are, because we have this global reach with local presence. We know that, that the aftermarket and services is, of course, better if you can do it as close to the customer's facility rather than shipping existing materials backwards and forwards, and it's, it's normally is quite long distance. The modularized manufacturing out from automation robotization is important for our future growth strategy of bringing capacity to the market. Now we are in Europe, we are in Sweden and can deliver, but of course, we are interested in following our customers into Asia, India, and Americas. We have ready proven concepts to do that in a very short period of time. The last third bullet is around the innovation and technology center. I mean, we need this facility to be able to drive the future growth plans in bringing new innovations and products to the market, and also continue to develop our abilities in manufacturing and bringing better capacity to the market in the longer run. It is important that these three building blocks, they are the one who is creating the flexibility and the capabilities of Permascand in the long run. We, we have been focusing on this for many, many years, and we are now in the end of the session of investment plans, and we should be ready to go live from 2024 and utilize this to the full scale. This is of course an interesting slide because we haven't showed so much in what we are doing. This is kind of the pipeline for Permascand segments, primarily dominated by the Electrification and Renewables business, which is, of course, predominated also then by the hydrogen business. I mean, we saw that the backlog is SEK 270 million. It is translated into 0.3 gigawatt. We have hot quotations in the double sizes, around SEK 600 million. These are the ongoing negotiations, which we are fighting with them and trying to win in the very near future. That is translated into 0.6 gigawatt. Then we are getting further out, more into the longer run of 2024, 2025, then we are in the prospects circle, and then it's growing quite rapidly. It's growing because of the activities we have with the partners and customers within the hydrogen field. It's a mix of electrodes, anodes, cathodes, and electrochemical cell manufacturing. It's suddenly SEK 3.5 billion, and then we're getting into the gigawatts. It's approximately around 4 gigawatt of manufacturing capacity. We have the pipeline, which is based for us, is on this +10 ongoing interactions with customers, which we have orders and sales. We're not including the ones that we are in the early stages. We have more than 10 gigawatt or close to SEK 9 billion of estimated forecast or project predictions for the coming years to come. It was translated into what we saw in 2030 predictions from where the market will go, if it's 70 or 100 gigawatt. We are running projects towards the 2030 year mark of around 10 gigawatt. This it is a very, very interesting and, and, and, and, and good pipeline into the growth segment of hydrogen, and, and of power transmission, and of course, electrowinning projects, and it predominated, dominated by that. It's also Industrial Solutions, of course. It's not so much water that is for us in, in the, in the, the coming years. It's more, more, book to build. It will not be, be huge backlogs that we will bring forwards. That is at least not our expectation until we start to see the after-market service build up in the longer run. If you take this slide, this is also to, to highlight. I'm stating that we are in the end of our investment cycles for, for some of the activities that we have been working for, for the last years, especially in the innovation and meeting the future hydrogen markets requirements. during this year of 2023, I mean, it is the finalization of a new for us, new coating technology that we are bringing up to commercial scale. in the end of the year, we will be on campus at Ljungaverk site, ready with a new technology and innovation center. that is a really big and important milestone for us going forward to be able to have multiple duplications of projects, but also to do... be able to do a lot of testing and very efficient testing, both of commercial-sized products, but of course, also on more the lab scale side, and to increase the capacity there, there. Then during 2024, I mean, we will launch new products in commercialization phase, and it is around the coatings for anodes and cathodes. It's both sizes of materials. It will be very, very interesting to do that. It's not very often that you bring new products to the market, but now we are ready to do it in, for the hydrogen space. Then when we look out a little bit in the longer run, we see the, in the 25, 26 time frames, it's, it is around capacities for manufacturing. It's also an an earlier announced collaboration together with with a company called RES Group that have announced the hydrogen build up or investments into the the region where we are located, in Ljungaverk. It's two locations, one just next door to where we are and and and another one that is about half an hour from where we are. That is around to take the innovation center that that we finalized this year, and then bring it out into a commercial demonstration lab together with a with a real data in in live environment where where they are producing hydrogen for for for commercial scale. We think that will be really, really interesting to be able to do this just next door to our facility. I've already mentioned that there is a, there is a good, healthy activity pipeline for future. It's really, really interesting to follow Verdagy. I mean, they're taking the next step into conversation and, and to have a product ready, for the market. They are now funded to do it. We have many very interesting collaborations, with, with, of course, customers, but also with, with universities and, and organizations. It is around the electrode performance, it is around the materials, and then it's, of course, around coating applications and how you can improve, the, the, the product, lower the cost, and of course, make it more environment-friendly going forward. These are highlights, these are milestones that we have been announcing before, and we're starting to be, be in the end of this cycle and can, and can use it and for our customer developments and for our innovation plans going forward. If you take this will be the, the last slide before we do the summary, and this is just to, to, to show or illustrate, I mean, how, how our markets and how we have been investing into Permascand. If you don't take it from, from the right, I mean, that is the mature market with Industrial Solutions. It's primarily the, the aftermarket service, recurring business, good revenue streams, profitability, so on and so forth. Then we have now the, the ballast Water Treatment with the installation cycle starting to be in the end. It's coming up to this interesting recurring revenue market going forward. It will take some time, a couple of years, until it starts and kick off, but we know that, that during 2018 and 2022, I mean, we have delivered more than 5,500 electrochemical cells to the market, and this is what we start to see coming as after-market service in the years from, I would say from 2026, it should be more significant volumes from that side. You have a sky electrowinning, as I said before, it is, it is closed Industrial Solutions. It has some elements where there is new installations, new technology, and so on and so forth. The power transmission and the green hydrogen, I mean, I think I would say plus lithium, these are the four main markets, which will bring long, long life growth for Permascand in the coming decades. We have interesting projects within industrial water. It is from the smaller scale, and it's also new technology, bringing, bringing to the market. It will take some time, it is in the early stages, and we expect it to over the years, it will start to grow in accordance to all of the other ones. We do this because we know that the new installations, bringing products and customers to the end market, that also brings us up to the level where we see the recurring business. The, the recurring business cycles is, is normally between 5-10 years. The average is around 8 historically in Permascand, and, and, and recurring revenues is, is, of course, good for the platform, and that also gives us the, the investment money for, for future growth projects in all different segments that you see. These are the ones primarily that we believe will bring growth to Permascand going forward. If I summarize it, I still want to highlight that we, we, we managed to make record sales in a single quarter, with a quite significant change in revenue mix compared to where we were 1 year ago, where, where we, we could really run high, high scale, high, high, automated product areas. It is clearly, which I think many have stated so far, I mean, we, we have more or less an intact order book from Q1, but we, we need, we really need to rely on the coming quarters order intake and build up a stronger order book going forward. As we have stated before, it is industrial and it is within particularly in Electrification and Renewables, where we will see the orders coming more frequently and also in bigger sizes going forward. There is really no change in the activity at the customer level, despite the macroeconomic climate. It could be delays in some of these projects. It could be, be discussions around the size of it, and, and, and, and if it should be splitted up in, in, in different levels, and so on and so forth. They are all active customers, activities. There are product plans that are followed, and, and there are, there are really a strong underlying demand for the products for the markets that we are supplying. It, it is supporting really the, the Paris Agreement and what everyone is trying to achieve to lower the, the, the, the CO2 emissions and to be, be more environmental friendly in a lot of these very important industries that we are relying on, on receiving products from every day for our everyday life. I think that is also the, the, the next point, which is important. We are bringing new products to the market, the next generation of anodes and cathodes, to be launched in a couple of quarters. That will be bringing to the market improved performance and competitive offerings from our side, which we think is a good launch before the international breakthrough that will come, I would say, from 25 and onwards. There's no doubt that there is new sales coming from the growing trend on the market that we have described, and that is in the long run, the building up of aftermarket and service. If we look longer period, we can see that Permascand historically was more or less relying on the aftermarket and service for and didn't have so much new sales. We have a lot of new sales, and we have an increasing from the early new sales over the last 5, 6 years. We see the trend is, is going in, in, in, in, in very, very good directions, that the, the share of the pie is increasing for the aftermarket and service business. At the same time, we have more customers, and we have more new installations than ever. I think the last bullet is, is, I, I think it is important to remember in this, in this environment and, and in this climate that we are operating at the moment, we don't have a better crystal ball than, than anyone else, but we have 50 years of proven track record. We are a profitable business. We have a profitable business model, so even though we are adding a lot of new products and a lot of new, new, new challenges into our company, I mean, we are operating on a profitability that is quite healthy. We have a good balance sheet, and we are reinvesting the money that we are earning into our businesses before having big capital loans, which I think brings some stability in our business, and we are less vulnerable for the future. We are building all these investments. That is because we are chasing the future attractive, recurring revenues from an increased customer base for bringing more products onto the market. We believe that, that, the new market from electrification renewables, it will come into the cycle of what we're seeing historically in the industrial side. It is new installations, and then you need to maintain and, and secure, making sure that, that you are close to your customers, and then continue to service them in the best possible way, and bringing them good products and good, good service programs, so they can focus on what, what they are aimed to do, which is normally to, to have a smooth, and very efficient, operations, and, and make money out of that. I think that was the, the, the last remark from us, and we can open up for, for questions. If you wish to ask a question, please dial star five on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial star five again on your telephone keypad. Please state your name and company. Please go ahead. Yes. Hi, it's Karl Bokvist here from ABG. Good morning. I just wanted to start off with the order within Electrification and Renewables in lithium extraction. Could you elaborate on that one a bit more and perhaps also the monetary value? Yeah, I mean, we, this is, this is new technology for the market, so this, this is an very important step to make this commercialized progress going forward. It is a non-disclosed value at the moment of what it is, but I suppose it is a significant value for us, and it is, it's not everything in, in Electrification and Renewables, but, but it is, it is a very important milestone for Permascand, and very important that we have received this because, this is a good technology for future lithium extraction going forward. Understood. Correct me if I'm wrong here, but the order that was canceled last year was within Ioneer, and was it lithium or electrowinning? Sorry, I don't remember. That was another project within lithium extraction, where the end customer ended up being bankrupt. Mm. It is this technology that is to be commercialized now for the first time. Okay. It refers to the same kind of new, new technology. It's just that the former customer did not have a financing means to go through with it. Exactly. There are new projects in the pipeline with, with new customers and new market. Yeah, this is, of course, difficult, but this undisclosed customer has placed this order. What kind of safety measures have you taken to kind of lower the risk of the same happening again? We are taking every safety measure we can take, in this situation. Understood. Then on, just a kind of more near term before some more long-term questions, but the backlog now of the kind of rounding SEK 270 million, you said 65% was due in the coming nine months. That would be in something like SEK 170-180 million. In these nine months, are there orders that you can receive that can support sales in excess of this SEK 170-180 in the short term? Or should we more look towards kind of what's going to happen beyond nine months? The coming, the coming months are really important in the order intake and that we receive. We can talk about this more, more aftermarket and service orders that we can execute, and it's of course, some orders that are having much shorter lead times and so on and so forth. The answer to your question is, yes, we can deliver on new order intake coming, but it's depending on what business it is and what type of products it is. We also need to make sure that, that, we have the materials available to us because we have the capacity to manufacture, and that is not the issue. It could be that, that we're facing some issues with, with some of the, the material deliveries, but we can for sure deliver on order intake that is coming during this period of time. Understood. The other more near-term question was you, you wrote that you expect a kind of stable gross margin going forward, but it seems like Water Treatment, that's under pressure, but there might be perhaps less greenfield deliveries in Industrial Solutions and should be positive, and then depends on the mixing in electrification. How should we think about the comments about stable gross margins in the coming quarters? I think you should read it as it is stated. We are not expecting any major changes in our in our operational gross margins going forward. Understood. On the long, long-term side, these active... I, I appreciate the, the, the added info on the pipeline and the, and the backlog and timeline of everything, but these more, let's call them, hot quotations or the 10 active projects, just very roughly, but how, how long before these can turn into commercial orders? If, if I said, we believe that in the hydrogen space, we are expecting one of these projects to turn into a commercial phase before year-end. Understood. Then my final one before getting back into the queue. A year ago, you presented the kind of potential component sales value attributable to 1 gigawatt, and that was between SEK 2 billion-SEK 3 billion. These ones that you comment on now, it seems to be rounding to around SEK 1 billion. I'm just a bit curious about, is it a delimitation of a total amount of components, or is it a different assessment of the price that can potentially be received? I think it is, it is depending on what, what products we are delivering. Are we delivering coated electrodes, anode, cathodes, or both? Are we delivering complete electrochemical cells? It is, of course, a big difference if we deliver a complete electrochemical cells or if we deliver maybe only the anode or the cathode. This is, I would say it is a blended mix of what we see in the pipeline and what discussions we have with customers, because I said that there is a mixture of electrode supply, anode or cathode or both. There is a mixture of levels of electrochemical cells components that we are going to supply. It, it varies depending on, on what type of project and what the customers are expecting and asking us to do, quite significantly, naturally, I would say. Understood. I'll get back in the queue. Thank you. Thank you very much. Thank you. As a reminder, if you wish to ask a question, please dial star 5 on your telephone keypad. There are no more questions at this time, so I hand the conference back to the speakers for any written questions or closing comments. Well, if we don't have any more questions, we thank you for... Ah, now I see something. We have some. Please state your name and company. Please go ahead. Yes, thank you. It's, it's Carl here from AB- ABG again. Just wanted to follow up a bit on the Industrial Solutions side. The coming kind of years, you, you, you were able to secure this larger greenfield order last year, and you expect, if I didn't misunderstand you, but it's kind of now going forward, it's more of a aftermarket related applications that you're looking into. Or do you feel that there are any other larger projects that are entering the market that you feel that you have a good possibility of perhaps bidding for again? No, absolutely. I mean, we have ongoing dialogues, and we have prospects regarding both brownfields and greenfields. We are, of course, hoping that this will be going forward in the expected timelines that we are discussing or the way the customers are giving to us. There are more to come, but it's difficult to say exactly when in time they are closed. Understood. Just going back on one of the former questions related to kind of shorter lead time orders and what you mentioned about this kind of, at the end, customers still need to make, have place maintenance orders and recoating and similar. For a kind of plain vanilla Industrial Solutions project or order, is that one of those affairs that can be kind of placed, let's say, this quarter, and you can deliver it in the next one? Yes. For how long can customers postpone necessary maintenance investments? normally, they, they are hurted by doing that. Of course, they can take a 6-12 month standpoint and not do normal maintenance, and then they have a maintenance burden to pick up in the coming 12-18 months. Because it, it has to do with the performance and the OpEx performance in the manufacturing plant normally. They're also risking, of course, maintenance stop and breakdowns to a higher degree when they're coming to the end of the lifetime. Understood. Just for clarification, the backlog that you have in terms of gigawatts and the scope of things, I guess, are there different kind of SEK per gigawatts between an E&R project and an Industrial Solutions project? I mean, any major differences? No, not really. If you, if you're talking about, more like for like, comparison, I mean, if we sell an electrode, the price is normally on, on what type of precious metals you are bringing onto it, or, or if it is, a nickel, substrate, or if it's titanium substrates. If it is, similar substrates and similar, coating applications, the price is, is quite similar to it. It depends a little bit on, on what substrate you use, but you use both in the different industries, and also if it is iridium, or, ruthenium, I mean, it's a huge difference, from one to the other. In theory, if we can do a comparison, the products are very similar. The price is normally quite similar as well. Understood. My final one, perhaps more to you, to you, Linda, on the, on the working capital, you, you went into, you both went into the kind of drivers behind it a bit, but, maybe difficult to say kind of what happens in the next quarter. For the remainder of the year or on a full year basis, first half of the year, you have a negative SEK 100 million effect from changes in working capital. Do you, based on what you see from receivables and so on, how much of this do you think you can recoup during the second half? Yeah, I would say we, we, we reached the bottom at the end of June, because we have had a lot of customer payments in, in July and also in, in August. Also it depends on the, on the order intake to come, due to the payment terms, we are normally receiving an, an upfront payment or a prepayment from the customer, so, so that is on the positive side. So, so I, I, I can't say how much of it, but a lot of it will be restored, and we will get back to more normal levels that we are used to seeing. All right. Just finally, on cash flow as well, given the timeline that you, you highlighted, now CapEx took a bit of a step up during the second quarter. Will it be this kind of gradual step up, or will it be a kind of material step up in investments now already during the second half in order to kind of match the timeline of what you foresee in investments? I would not say it will be a major step. I would say that we, we continue with the plans that we have, but we do it in a, in a, a step-by-step way of doing it. We continue with the technology center that we have announced and that we are in the middle of right now. I don't foresee any major changes, but we will continue on, on the plans that we have announced. All right. Understood. Thank you. That is all for me. Thank you. Thank you. We have some written questions, and one is around our investments and establishment into India. Do we have a timeframe for this? India seems to be very positive towards green hydrogen. The answer to that question is yes, we are following our customers. Once our customers are telling us that you need to be in India, we will start to move into India. We are all equally interested in India, Asia, North America, or Americas, as we are in Europe and of course, in Sweden. That is the timeframe I can give to that. We are following and joining our customers in how they are investing and how they are developing. I think we answered on when we expect orders regarding green hydrogen to arrive. We, we believe that the first commercial order will come before year-end. Third question is around Water Treatment, when it is supposed to pick up back towards SEK 100 million per quarter, between here and 2026, when the base should be installed and start to churn. We will not see SEK 100 million quarters, or we're not expecting to see SEK 100 million quarters for, for, the Water Treatment business, until we're getting into, the, the aftermarket and service business, which will, which will start in 2026, and onwards. We do not expect this, this, level of business, going forward in the coming years. We have last written questions, and that's around the competitive landscape within Electrification and Renewables segments. The other one is: how big is Permascand's ownership in Chemetry in percentage? Thanks. When it comes to the, the competitive landscape, it is a quite competitive landscape. There are some, some companies on the supply side and also on the OEM side that do similar things as Permascand. I mean, we are really focusing on being supplying components into the OEM system integrators. There are fewer companies in this segment as Permascand. There is fewer companies with the experience that Permascand and some others have on the market. There are more competition on the end markets, on the OEM and the, the, the system integration side. Where we are playing, supporting the OEMs and the system integrations, there are fewer players around than you might think. It is non-disclosed on what share of Chemetry we get for the SEK 11 million. For us, it's not about the ownership in Chemetry. For us, it is to show that we take Chemetry technology seriously and that we would like to be part of this journey, bringing new technology into a very traditional market, dominated by chlor-alkali technology and fluoride technology. For us, it's also very important to be a strategic partner when this is going to be commercialized in the next coming years, and that we will make sure that we can supply that we can bring good products to the market together with Chemetry, who is, and you could say they are our sub system integrator and OEM in that sense. I think these were the questions that we have seen, verbally. There, if there are no more questions coming from the audience, I we say thank you very much for listening into this report. Of course, we're looking forward to come back in November with a quarter three presentation. Thank you very much.