Good morning. Welcome to Vattenfall and this Q2 reporting event. I am Andreas Regnell. Together with me in our studio, I have CEO Anna Borg and our CFO, Kerstin Ahlfont. This is a strong second quarter with several major events taking place. It shows that despite the year with COVID, we are delivering good results and our business is developing in the right direction. In addition to that, some legal processes that we have been involved in for several years have been settled, and we see the economic effect of this already in this quarter, meaning that this quarter is a combination of strong underlying performance and large positive one-off effects. As usual, we will open up for questions after the initial presentation part on the phone and on the web, and our standard slide pack for the report is available on the web. Let's now get into the core content. Let's begin with some events relating to our wind business, where the partnering with BASF on Hollandse Kust Zuid in the Netherlands is the most important. A groundbreaking deal in many ways. Anna, why don't you give some context? Absolutely. This is the first time we see an industrial company taking such a substantial stake in a large-scale wind project, and I think we will see many more of these examples. The strong interest from many parties to participate in this project actually indicates that. To phase out CO2 emissions from industrial operations become increasingly important. I'm absolutely sure that that's a way to secure competitiveness also in the future. I'm very happy that we managed to conclude on the partnership with Vattenfall and BASF, because both companies have sustainability as an integrated part in the business. It's a good example of when strategy, core business, and focus on innovation jointly takes two companies to the next level, I think. This type of partnership can create a significant change in the landscape of merchant-based renewables. It's truly interesting to see how industrials are beginning to see supply of fossil-free electricity as strategic, something necessary to control. It also means that the wholesale market is, you can say, disintermediated, and the volatility can be avoided for both the wind asset owner as well as the consumers. A potential significant win-win. Kerstin, what can you tell us about the deal structure? BASF will purchase 49.5% of this wind farm. The price amounts to EUR 0.3 billion, taking into account the achieved status of the project. Including BASF's contribution to fund the wind farm construction, their total commitment will amount to around EUR 1.6 billion. Closing of the transaction is expected in the fourth quarter of 2021, subject to the approval of relevant authorities. Anna, how does this deal affect our ability to supply fossil-free energy to our Dutch customers? Well, the Netherlands is a core market for Vattenfall, and we are there to stay and committed to deliver good value and service to our customers also in the future. We have dedicated a significant amount of the Hollandse Kust Zuid output for our Dutch customers, and we're also on track when it comes to supplying 100% green electricity to all our Dutch consumers. In addition, I think it's important to note that the volumes from this wind farm contribute to fulfilling all of the volumes, contribute to fulfilling the Dutch national target to reduce CO2 emissions by 49% in 2030 compared to 1990. From a Vattenfall perspective, the deal also means that we can recycle our capital into more investments earlier than what would otherwise have been the case. While we are discussing wind, what is there to say about our progress on Kriegers Flak and the Vesterhav project? Well, Kriegers Flak is actually progressing very well. All the turbines are installed now, so that's a bit before time plan and also at a lower cost than we initially planned. That's a really good job by our staff, despite all the challenges that we see related to the pandemic. When it comes to Vesterhav, the Energy Appeals Board in Denmark have now confirmed the Danish Energy Agency's decision from December last year, and that means that we now have an irrevocable permit for the Vesterhav offshore wind farm, and that's very good. We can focus fully on constructing. Okay, enough with wind news. Let's give us the main financials. Kerstin. As I mentioned, it was a strong quarter with good underlying performance in all our segments, supported by the market development and positive one-off effects. If you compare to the same quarter last year, our underlying operating profit reached SEK 17.3 billion, which is up with 33%. Our financial target ratios are both high, with FFO/adjusted net debt at 38.1% and the rolling 12 months return on capital employed at 14.5%. Clearly very strong numbers. What were the main drivers? Well, the drivers of this strong performance are many. We did actually pretty well across all the business segments. If I start with power generation, we have continued to see a strong recovery in the electricity prices from the record low levels of last year. Although this does not have an impact directly on our P&L since we are hedged, it does have a positive impact. However, we have also seen lower EPADs, that is the price area differences in Sweden, and this has had a negative effect. In addition, we had an increased production, both in our hydro assets and our Swedish nuclear assets. In nuclear, this even though we closed down Ringhals 1 end of last year. On top, our realized result in trading continues to be good. In total, the result in this operating segment was up SEK 3.4 billion in underlying operating profit. Many factors explain the strong results in segment power generation. What about the other segments? Well, our heat business also contributed positively. The closure of Moorburg is a large factor here, which brings lower OpEx and lower depreciation. We also see an improvement in heat sales, both due to the colder weather and an increase in the customer base. In customers and solutions, we had a strong performance where we continue to see a good growth in our customer base in Germany. Here, the weather had a positive impact. Maybe we could add that customer solutions has managed to increase the net promoter score and lower the customer churn in Germany, Netherlands, and Sweden, while further increasing the share of digital transaction during this period. Yeah, I think that is truly positive. If you turn to the operating segment wind, there we had a relatively flat performance despite increased capacity, and this is mainly due to the low winds in the first half year. The last business segment is distribution, where we see a lower underlying operating profit, and this is mainly due to the decrease of prices in the local network in Sweden. What about the one-off effects you mentioned earlier? We should not forget that, of course, one important thing to highlight is the big one-off effect we had this quarter, and the agreement for compensation of the early closure of nuclear in Germany was approved by the Bundestag in June, and therefore, this has now been recognized in the P&L, and the effect is SEK 11.1 billion on EBIT in the second quarter. This transaction will only take place in the fourth quarter, so the impact on FFO is yet to be seen. Talking about impact on FFO, how does all this translate into the cash flows? Well, you can see the cash flow development on slide 12 in the pack. Maybe to give a brief comment, following a strong cash flow contribution from the business, as well as a strong inflow from margin calls, left our cash flow from operating activities at 35.2 billion SEK. Now, we invest a bit of that, of course, but still leaves us with the cash flow before financing activities at 24.5 billion SEK. Big numbers. Last time we were here, we discussed that the FFO/adjusted net debt was high at 32.8. Now it's even higher at 38.1. ROCE is also elevated at 14.5, as you mentioned. This can be compared with the target levels of 22-27 for FFO-adjusted debt and 8% for the ROCE. Are these target levels relevant? Yes, I think so. The target level is set by our owner in a close and active dialogue with us. These targets, they are set to be achieved over a business cycle, which for us is defined as 5 - 7 years. Some deviation from the target can be expected in individual years. Looking at the targets and how we achieved them this year, ROCE increased to 14.5%. Here we see a big impact from the settlement for nuclear compensation in Germany. If you look at the FFO/adjusted net debt, that increased mainly due to the decrease in adjusted net debt, supported by an inflow from margin calls and decreased on lower provisions. The ratio is, of course, also supported by the strong underlying performance. Okay, there are a few items with a one-off character, but still a good underlying performance. Yes. I think that's a fair summary, Andreas. Anna, what else is there to mention about the quarter beyond what you just have discussed about wind and the financial that Kerstin just went through? Well, there are quite a few things, actually. I would like to mention three things related to our German business, give two examples of electrification going on, and maybe also touch upon the investment in this small and modular reactor company, Fermi Energia. Let's start with the developments in Germany. First of all, we have now concluded on the sale of Stromnetz Berlin to the state of Berlin, so the carve-out and handover of that business is ongoing. The second event is that the law in Germany regarding compensation for the early closure of nuclear is now passed, and that's why it's in our results. Kerstin will elaborate a bit more on that in a bit. The third piece of news is that we also received a final decision from the Higher Administrative Court in Berlin that the district heating network clearly belongs to Vattenfall. It's not up for concessioning like the distribution grid. That's very positive news and means that we now can continue our good cooperation with the city of Berlin and focus on achieving our common climate goals. It creates stability. Very positive. The electrification examples you mentioned. Right. We continue to see a very strong pressure to connect more capacity to the electricity grid in Sweden, and we're also very happy that the Swedish parliament approved the proposition to allow the carryover of investment that's needed. In addition to that, we've also reached a milestone in our e-mobility operations. We now actually have 25,000 charging points connected. Okay. Now to the investment in the small and modular reactor technology. We made an investment in Fermi Energia, the company that we already had a cooperation with regarding deployment of the so-called small modular technology for reactors. What is your view on small and modular reactors? How big is the potential? I think that the potential is very interesting when it comes to small modular reactors. The technology is still at an early stage, so if it will be competitive or not is actually depending on how standardized they will be and how much of a serial-like licensing and production there can be. It also depends on the cost development of the alternatives. For example, wind energy in combination with flexibility services and storage. It's definitely worthwhile looking into, and we want to and will make sure that we have the knowledge to evaluate this option of small modular reactors also going forward. There is actually one more thing that I would like to mention, and that is that within the HYBRIT cooperation, we have now produced the world's first hydrogen-reduced sponge iron, 100 tons of it, actually. That's a very important milestone towards enabling fossil-free steel. That's also really good news, I think. Yes, clearly a big step towards sustainable steel industry, and I think a pacesetter for the entire industry. Kerstin, to round up a bit, is there something more we should add on the business segment that we have missed? Well, maybe three things to mention. Firstly, as Anna mentioned, the sale of the Berlin electricity grid, Stromnetz, is now finalized. The purchase price, as we have communicated earlier, was EUR 2.1 billion. This will affect our numbers in this third quarter since the transaction took place beginning of July. Secondly, the outage at Ringhals 3 that started in May and has been extended to end of August, and this is due to an event in the beginning of June when handling a fuel element in the fuel pond. That incident did not involve any increased activity or impact on the environment, but it prolongs the outage with the corresponding production loss of approximately 1.5 TWh. Thirdly, we have announced that we are investigating the sale of our gas-fired power plant, Magnum, in the Netherlands. That is a state-of-the-art hydrogen-ready asset, so it will have an important role in the security of supply in the Netherlands. We have made this decision because our focus in the heat business is on district heating, where we see a great opportunity for growth while decarbonizing the heat supply for our customers. That last comment actually tie in nicely. Last year, we talked about the importance of prioritization among investment opportunities. I guess we have started to see some examples of this with the closure of Moorburg and now with the potential sale of Magnum. Anna, will we see more of divestments and closures going forward? Well, possibly. We constantly evaluate our options, and we will continue to transform our portfolio of businesses and assets. It could be by divestments, but also investments, of course. We are on the journey to enable a fossil-free living, and we also have the ambition to remain an integrated energy company with businesses in several parts of the value chain. A balanced approach with both merchant-exposed assets and regulated and semi-regulated assets actually serves us very well. That is and will be the basis for continuing to grow profitably. To sum up, and we're repeating ourselves now a bit, but a very positive Q2 result, driven by a combination of strong underlying performance and significant positive one-off effects. That concludes what we plan to present today. Any last words, Anna, Kerstin Ahlfont? Nope. Nope. It's time for the Q&A. As I mentioned in the beginning, we will have questions both from the web and over the phone. I can see here that I have already the first question from Carlos Razuri. Can you please elaborate on the financial impact of the Berlin city grid disposal? Aside from the proceeds, should we factor in deconsolidation, i.e. no earnings starting from third quarter 2021? Yes, we will deconsolidate the Stromnetz Berlin as of the third quarter. From the 1st of July and onwards, we will have no proceeds from that business anymore. I see a new question from Andrew Moulder. EnBW just impaired its offshore wind portfolio, citing expectations of lower market revenues in the long term as a result of new data on variations in offshore wind conditions and the long-term trend in electricity prices. When did you last perform an impairment test on your offshore portfolio, and do you foresee any possible need for impairments? Maybe a short answer. Let's see if Kerstin Ahlfont would like to add something. We continuously look into if there is a need to make any adjustments or evaluations or any impairments. We always do it once a year thoroughly. In addition, every quarter, we look into if something changed that has an impact. We don't see a need for impairments in our offshore wind portfolio. That is correct. Thank you. Another question from Carlos Razuri. Why was there an earnings impact of SEK 11.1 billion in second quarter 2021 related to the nuclear phase-out compensation in Germany? When is the cash payment expected to be received? Well, we reported that in the second quarter, due to the law that was passed in the Bundestag in June. The money we expect to come in the fourth quarter. The law will actually come into force in the end of October, and then within one month after that, we expect to get the proceeds from that. Okay. We have the next question, Henning Lange. Hi. Why is the cash flow on your hedges positive? I would think that in a rising pricing environment, you would lose on financial hedges. Yes, the cash flow from the hedges are indeed positive, and that is a comparison between the end of year, last year. Okay. I got the question, it was so long. Can you split the question in two, maybe, so I get the first piece first? I couldn't see the start of it because it got too long for my page here. Maybe you take another one while you're waiting, Andreas. Yeah. Do we have any phone questions? No. Yeah, I'll get the first part very soon here. Okay, thank you. The year to date, 38% FFO / adjusted net debt, you respond, doesn't yet include the positive contributions of the disposal of Berlin Electricity Networks, the farm down the Hollandse Kust Zuid, the agreement for the nuclear compensation with the German government. I appreciate that the 2022-2027 target you have is over a five-year cycle, is the current trajectory in line with your own expectation, or does it create a significant leeway that can be deployed elsewhere? Maybe I can just start with a brief comment, and Kerstin can fill in. It is, of course, high numbers. You're right, there are more things that we know will come. On the other side, the year is not over yet, so the business will also be subject to a number of events during the last half of the year. It looks like it will be a very strong year from an FFO / adjusted net debt perspective. That is, to some extent, due to one-off effects, but it's also because we're facing large investments this year and the coming years. We have also made sure that we prepare for funding those investments. On top of that, we see these one-off effects. Over the business cycle, we still feel comfortable that the target level is the right one. We will see a strong year this year and a lot of investments coming up the next few years. Yeah, I'll just complete. Maybe an additional comment on that. One of the main reasons why it is so high on 38.1% is the decrease in adjusted net debt, also where we have the strong inflow of margin calls and also the decrease of provisions. If we take that out and look at the underlying performance, we are quite confident that this is a good development and in line with the targets. I just want to add that the question came from Alessandro La Scalia. Now there is a new question coming in. Andrew Moulder. You mentioned small modular reactors, but are you also doing any investigation into fusion reactors? Do you believe that technology will become viable? It will most likely become viable in some parts of the world. When it comes to Vattenfall's nuclear operations, we clearly see that the large-scale nuclear technology, also the new one, is more expensive compared to the alternatives that we see in the market. That we would deploy new large-scale technology, nuclear operations, that I deem unlikely because the risk and the cost will simply be too high. If and when we invest into nuclear, it will first and foremost be in the existing nuclear operations we have and the most interesting potential we see in these small modular reactors. They need to be competitive in relation to the alternatives. Just to clarify, Andrew asked about fusion technology, not large scale. I think your answer would have been even clearer then, is my guess. Yes, absolutely. Thank you for the clarification. Still, we would not deploy any technology on our own. If and when we look into new nuclear investments, we would always go with established technology, and it needs to be more standardized in order to be competitive. Now comes another very interesting question from Martien Visser. To what extent does Vattenfall still see biomass combustion as a renewable energy? In this context, does Vattenfall still want to build a biomass power station, Diemen, now that an appeal has been lodged with the Council of State against environment and nature permits by residents, sorry, it was a long sentence, organization and nature organization, Natuurmonumenten? Biomass is an important piece of the puzzle in order to reduce CO2 emissions. The view on biomass is very different compared to what market you are looking at. Vattenfall will operate with biomass also in the future. If it will be biomass in Diemen or not, that remains to be seen. We are very well aware of the opposition against biomass in the Netherlands, and we're also aware about the ambition to phase out gas as a fossil fuel in the Netherlands. Something else needs to be used in the heat production plants for the district heating operations in the Netherlands. We are more than happy to have a dialogue with the Dutch government and also with general public on the alternatives. Thank you. I see another question coming in. Anne Filbert, "Do you plan to seek more offshore wind projects in Denmark in the future? Yes, we would very much like that. Offshore wind is one of our core businesses, and we're one of the main players in Europe, and we intend to continue to grow in offshore wind. Provided that the projects are attractive enough and we think that we can contribute with our competitive advantages, definitely. Good. I think that we have more questions, or Marcus? No more. Yep. Given the high and tough competition on winning European offshore wind concessions, and given that you look to grow in this arena, why did you farm down Hollandse Kust Zuid so early? Why not do the whole development yourselves and farm down when the project is complete? That's the second question. The second part of the question, "Can you provide an update on the chance risk that the WACC of 2.36% will be maintained for the Swedish grid business? Let's start with the competition in offshore wind, and then maybe Kerstin can comment on the distribution business. Jakob Magnussen was asking the question. Sorry. Yes. Thank you. It's true, the competition in the offshore wind space is increasing, and we also see new actors that have not been so very active there before participating. We saw several examples of that in the auction round four in U.K., for example. Yes, the competition is increasing. The timing for farming down Hollandse Kust Zuid is a good one for us because we are sharing risks and also the investment. There is a window of opportunity in Europe right now to do offshore wind projects and also secure sites for future offshore wind projects. We want to make sure that we can be competitive in securing the sites that we would like to develop going forward. To farm down the wind farm in the Netherlands is simply a way to even further increase the pace of our expansion. It's also an example of the Vattenfall strategy of cooperating closely with industry companies, customers, and others that have the same strategic ambition as we do when it comes to decarbonizing both the energy industry, but also industry production in Europe. It fits us very well, I would say. When it comes to the WACC discussion in Sweden, I think the decision that was taken by the administrative court in Linköping, it was a step in the right direction. It gives us the preconditions to make the necessary investments in the Swedish distribution grids, given that they say that these regulations should be stable, they should be long-term and also future-looking. We think that the verdict was well-written, but we know also that it has been appealed, and we will now have to wait to see the outcome of that. I think we have a view on this, of course, but we have no probability on what will happen here that we can elaborate on. We will have to see how the process proceeds. Very good. That was actually the last question. That's time for me to thank you all for attending this Vattenfall Q2 reporting event, and welcome you back for our coming Q3 reporting. Thank you.