Good morning, and welcome to this Q1 Vattenfall reporting webcast. I'm Andreas Regnell. With me in the studio, as always, our CEO, Anna Borg, and our CFO, Kerstin Ahlfont. Today, we will go through the main events and the financial performance for the first quarter of 2026. Before that, Anna will go through her reflections on the development in the world and the impact on Vattenfall's operations. As always, the reporting material is available on the web. Let's begin. I think we have another very volatile quarter behind us. Do you agree? I certainly do. I think for quite a few quarters now we have said that there is a lot of turmoil in the world around us and a lot of uncertainty, and this is for sure true during the first quarter 2026 as well. I think that this has also underlined how quickly conditions can change. We continue to see this geopolitical tension, and that has a direct impact on the volatility in the energy and commodity markets. We have also seen a very challenging macroeconomic environment in general, and on top of that, we had some cold weather and some storms that we saw on the film as well. It's a lot going on. I think that even in the world with a lot of uncertainty around us, that is sort of normalized now. We know that something is always happening that is not normal, we try to focus on what we can control, because we have limited influence on the macroeconomic development around us, but we can control our own operations. We focus on performing near-term, which I clearly think that our results display, but we also have a steady progress towards fossil freedom by building and commissioning new assets. That is what we are focusing on and what you also see in the highlights we just showed. Sounds like a good plan. Kerstin, how would you summarize Vattenfall's financial performance during Q1? We have a very strong result this quarter. We report a significant improvement both in the underlying operating profit as well as in the profit for the period, and we reach both our financial targets with margin. Yeah, that's good news. Thank you for that. Before we dig deeper into the operating segments, Anna, would you like to elaborate a bit more on the events during the quarter? I have to pick a few ’cause there are quite a lot of them, but one is the 150 kV power line that was completed in Luleå in the northern part of Sweden. That is an important part of utilizing the energy that we have in northern Sweden in the most efficient way, but also to ensure a reliable and stable supply to some of the industries in the northern part of Sweden that are investing in their existing business or investing into new businesses. A lot of transition going on up there, and this is an important contribution. That was very few. That was one. Yeah. Would you like to say something more? I can do this forever. I think another one is that we have commissioned quite a lot of new capacity. We have the Velinga onshore wind farm in Sweden, 67 MW. We have added a battery to the Bruzaholm wind farm to be able to use flexibility and storage in a better way. That's also in Sweden. We have two solar parks in the Netherlands that we have commissioned, then we're making progress in our Nordlicht project. That is offshore wind in Germany and will be the largest offshore wind farm in Germany once we have finalized it. We are progressing when it comes to new nuclear in Sweden and taking quite a lot of steps towards realizing that project as well. There's quite a few things to be happy about. Yeah, you talk a lot about new things, I think going back to the grids a little bit, I think it's also important to mention that we invest a lot in our existing grids. Yeah ... to weather-proof them and make them more resilient, and to increase the security of supply. Mm There is a tendency that we talk about the new, but we also do very important things on our existing things. That's a really good point 'cause we need to do both. We need to maintain what we already have, we need to build new, and we need to weatherproof our existing business, for example, the grids. That's also where a lot of our investments go into, and we actually clearly see results of that as well. It's not only grids, it's basically all our assets and especially the fossil-free ones. Yes, indeed. Now to the results, Kerstin. What are the headline numbers? Well, we report a significant increase in the underlying operating profit with SEK 8.7 billion, bringing it to SEK 17.2 billion, which is a very strong first quarter result. We see improvements across all operating segments, but not the least when it comes to electricity generation where we have delivered high availability but also benefited from the higher prices in the Nordics. Both when it comes to offshore wind and nuclear, we have had a high availability this quarter compared to the same period last year. When it comes to the profit for the period, then also there we have a strong result. We report an increase of SEK 12.1 billion, bringing it to SEK 18.1 billion. In addition then to the improvement in the underlying operating profit, we also have... we also have a positive impact from changes in fair values of energy derivatives and inventories, approximately SEK 5 billion, and then we also report capital gains of SEK 1.4 billion, and that is due to divestments of power plants in the Netherlands but also the French sales business that you saw on the film. Thank you, Kerstin. Very, very strong numbers indeed. Mm. Before we dig deeper into the operating segments, et cetera, Anna, would you like to give some context to this very high level of performance? Well, as mentioned earlier, the year started with low temperatures and low wind actually. That led to a significant increase in electricity prices, especially in the Nordics and especially in the northern part of Sweden, SE1 and SE2. This is clearly beneficial for Vattenfall 'cause we have a lot of our hydro power production up there. On the continental market, the prices were actually lower compared to the first quarter last year, driven by lower gas prices, but also more wind, higher wind production. Later in the quarter, we saw the escalation of the Iran conflict, and then that had an impact on the market. Higher volatility, but also higher prices also in the continent. The higher prices, especially on gas, drove up the electricity prices in continental Europe because there is still a dependency on gas for producing electricity there. This has an impact on the European continental prices, but also the prices in the southern part of Sweden. However, it was slightly warmer in the southern part of Sweden compared to last year, so that had a bit of mitigating effect. Again, a lot of volatility going on. To summarize, very strong, tailwind from the Nordic prices late in the quarter from the continental, but given that it was late, it didn't have so much impact on the prices. There were also other things that impacted, our performance, wasn't it? Yes, for sure. Market condition had an impact, good availability across our generation fleet actually made it possible for us to capture that. We did well in all of our businesses, basically. We did better in Customers & Solutions, in Distribution, in trading. I think there's a lot of different contributors to this increased result. It's also important to mention that we have reduced our hedge ratio in Vattenfall since a couple of years back. The reason we've done that is that there has been and from time to time still is a lot of a price difference between the different price areas, the hedges were not as effective anymore. This lower hedge ratio we have means that more of our business is now directly exposed to the price development. When prices increase a lot, it has an immediate impact on our results, but also the other way around. When prices decrease, it also has an immediate impact, and it can change quickly, as we've seen. In fact, just these few weeks, first weeks in April, we've seen the prices go down quite a lot in SE1 and SE2, so northern Sweden. We have sort of a counteracting effect there. Thank you. Now before we dig deeper into the financial targets, we have actually changed the definition of our funds from operations measure, haven't we? Exactly. We have adjusted our definition of funds from operations, FFO, to exclude payments to and from the Swedish Nuclear Waste Fund, as well as payments related to provisions that are included in the adjusted net debt. The reason for this is to have our definition more close to the definition that the rating agencies use when they sort of assess our leverage and credit strength. What I would like to mention as well here is that this metric that was previously called adjusted FFO in our financial reports, but from now on, we will call it only FFO in order to avoid any confusion. How did we fare on this new definition? Well, we report actually an increase in our FFO over adjusted net debt to 79.3%, which is of course a high level, and as I said, it is a significant increase compared to the 53.4% that we reported end of last year. This adjusted definition, that accounts for approximately 10.7 percentage points of this increase. Also on a comparable basis, we are strengthening our capital structure. Worth noting here, I think, is that our adjusted net debt is actually at quite low levels now, which means that any change in the FFO will actually have a significant impact on the outcome of this ratio. If I move on to the profitability target, underlying return on capital employed, also here we report a strong number, 12.9%, which is an increase from 10.2% end of last year. Here the target is that we should be at or above 8%. The reason for the improvement is of course then the improvement in the underlying operating performance. Undoubtedly very, very strong numbers. Kerstin, how would you reflect on that? When it comes to our leverage specifically, we are trying to err on the side of caution since we have major projects in our pipeline, both when it comes to offshore wind, distribution, hydro, and not the least new nuclear development. You could still think, you know, is it too high? That is something that we are discussing actively as well, you need also to remember what Anna mentioned also, that we are operating in a quite uncertain market environment. In this quarter, we saw positive effects from this uncertainty, we know of course that there is another side of that coin as well. To add on this, we saw a very positive effect during Q1, but we would very much prefer a more predictable and stable environment in our business, isn't so, Anna? For sure. This volatility and uncertainty has a flip side. This level of volatility is for sure not good for our customers. It's definitely not healthy for the energy market as a whole either. We are dependent on reasonably stable and predictable investment conditions in order to be able to make the investments needed to strengthen the energy system in Europe. Those investments are, you know, there for decades. This sort of stability and predictability is needed. I would say that this is basically not good for anyone. I think 1 example, or 1 thing to remember is also that some of these things are immediate impacts while our investments are ramping up, step by step. They are ramping up over time, and that's also what we are preparing for, as Kerstin just described, this gradual acceleration. Yes. There's a very clearly very strategic part of how we plan our investments, what else do we do to create a sustainable business? We have limited influence on the sort of general world market around us. What we can influence is how we act in that environment. We focus on operational excellence in our own business to make sure that we are efficient in what we do. We make sure we have cost discipline and sort of prudent capital allocation when it comes to our investments. These are not short-term responses to exactly what we see now. This is to build resilience and competitiveness in the business long-term. By doing that, we also make sure that we can continue to have a high investment pace also in this very uncertain world around us and deliver with stable returns as we have seen. That is a clear strength for us as a company. Thank you very much. If you now finally get to the operating segments, how is the development there, Kerstin? Well, if you start with the Power Generation segment, here the underlying operating profit increased with 100%. This is clearly where we see the benefits then from the increased prices in the Nordics. As we have said, we have also increased the volume that we are producing. When it comes to hydro, of course, we have had sort of beneficial weather conditions, but we've also sort of started the year with sort of well-filled reservoirs, which is due to our long-term planning, but also that we are working intensively with our hydropower plants. We also had, of course, a higher availability in nuclear as well. Thank you. Anna, what is the development in Wind and Customers & Solutions? In the Wind segment, our underlying operating profit increased by 79%. It's mainly because of higher volumes the first quarter this year compared to first quarter last year. The electricity generation actually increased by 41%. It's mainly higher production in offshore wind, that is the reason for that. We've also seen higher wind speeds and better availability in general in our assets. In the Customers & Solutions, we also see an improved result, so we have an underlying operating profit that increased by 96%. That is, however, primarily connected to our business in Germany. The main reason for the business in Germany doing so much better is that we have a timing effect last year that had a negative impact. It had to do with, higher gas grid costs. There is one more thing I would like to mention around Customers & Solutions, and that is that we have now divested our French sales business. That is something that we do in order to free up resources and really make sure that we can focus on our integrated utility model. I would like to say that the French sales business have been a successful one for more than 25 years. I will for sure miss our colleagues in France, but I'm also happy that they have an owner that also sees the value and the potential of this business. It's a natural part of sort of optimizing our portfolio and prioritizing our investments. Thank you. Last but not least, Kerstin, Distribution. Well, in Distribution, we report an increase in the underlying operating profits, so it ends up at SEK 2.1 billion, and this is due to that we have higher tariffs in the local grids, but also that we have transited more volumes through our grids and that we have lower transmission costs. When we talk about the development in this segment, I would also like to mention the long-term investments that we are doing. In order to meet the customers' demands, we aim to actually enable twice as much distribution through our grids in 2035. Despite ongoing maintenance and reinforcements of our grids, still 35% of Vattenfall's grids are older than 40 years. We need to continue optimization, expanding, and reinforcing our grids to meet our customers' demands both today and in the future. Thank you. If you combine the discussion on customers and the volatile environment around us, it is zooming out a bit, many of our customers are very, very concerned about the volatility and the high prices, particularly maybe on the continent, where the reliance on fossil fuels is still quite high. What is your reflection on that, Anna? I think that is a very serious concern, and we are concerned as well. I think it clearly displays how vulnerable Europe is due to its dependence on imported fossil fuels. It makes Europe vulnerable, but it also makes it costly for everybody, basically. I think that that happens in an already strained economy, which makes this even more challenging, I would say. We try to support in different ways, both our household customers and our business customers. Many of them are investing in decarbonization, electrification, energy efficiency. We try to support with, for example, long-term contracts, when it comes to pricing. We try to support when it comes to how to electrify or how to use your energy most efficiently and also sell products and services that can enable that. We maybe most importantly contribute by being a stable and reliable electricity suppliers and keep investing in producing even more fossil-free electricity in Europe because that is actually the only way to get out of this dependency, and I think that is important to remember. Yes. We clearly try to do what we can to support our customers. If we take it more on a societal level, how would you see the world go forward there? Well, that's difficult to predict, but I think what we need to do is definitely collaborate more across European countries to really provide the prerequisites for the investments that are gonna take us into a more independent, secure, resilient, and cost-effective energy system in Europe. We need to be careful so we don't make investments in order to uphold an already outdated system, but rather accelerate the pace into what needs to be there and to enable the investments. I think what we can do in order to contribute to that is to run our business efficiently, make sure that we are a stable and profitable business that can afford to invest both in energy production, in grids, and in solutions for our customers. I understand that short term that is maybe not much of a relief for customers, especially in continental Europe right now, but I think it's also important to say that there is no quick fix. We need to make sure we build a more resilient and competitive European energy system in order to get out of this situation. Lots to do for us, but also for Europe. What do you think about Europe's position to do this? Are we better prepared than a few years ago? Well, actually, we are in several ways. The reason for this is that the gas supply into Europe is more diversified now than it was, for example, in 2022. There is also a higher share of domestically produced energy, especially renewables in Europe compared to them. We see that that means that gas is setting the price for less days now than what was the case a couple of years ago. It is happening, but I think that the sort of soaring prices we've seen during the last couple of weeks and months is clearly a sign of this vulnerability that I mentioned earlier and the dependence that Europe has on fossil fuels. I think that one important aspect from a macroeconomic perspective is to understand that Europe will not be competitive as long as we have this dependence on the imported fossil fuels, and the reason for that is that there is a fundamental cost disadvantage. The fossil fuels are cheaper in U.S. and China than what they are when we are importing them to Europe. Therefore, we need to make sure that we produce more energy at a reasonable cost in Europe. On top of that, we of course have the climate challenge, and climate is not waiting for anyone. It's not negotiating with anyone. It's happening, and it is a cost and will continue to be a cost to be an emitter in some shape or form. We know where to head. Now we need to make sure that we do that fast enough from a European perspective. To repeat, there is only one way forward, and that's for Europe to be independent from an energy perspective and to produce the electricity in a fossil-free way, in a cost-efficient way. Yeah. That is the starting point, and that is the direction. The path will, of course, find its own way. There is not a master plan in that sense, but the direction is very clear where we need to head in order to be more competitive in Europe. There is a large pipeline of investments waiting to come alive in next-generation technology, not only in the energy sector but also in all industrial sectors and in the companies that I talk to because we cooperate or because they are our customers or because we see this development in a joint way. I think it's important to really focus on building that business value, not invest in an outdated system, but make sure we invest in an accelerated transition towards fossil freedom. I think that was a very clear and positive conclusion of this discussion, and thank you for having this discussion on the first quarter of 2026. Now it's time to open up for Q&As. Welcome back. Our first question comes from Andrew Mulder. Welcome, Andrew. You mentioned the new battery at the Bruzaholm. What is the capacity of the battery, and what is the output, and how long can it sustain that output? The battery is 39 megawatts. The total capacity of the wind farm and the batteries is 460 gigawatt hours per year, I think. The battery, if that's the question, is 39 megawatts. Thank you. The full park is 138 MW. Thank you. ... of the wind park. Another question from Andrew. Sure. You mentioned low Nordic prices in SE1 and SE2 in April. Does that mean you're expecting a relatively weak Q2, or is it too early to tell? It's too early to tell 'cause we're just in the beginning of Q2. If it's something we've learned, it's that things can change very quickly. It's simply too early to say. Next question from Philip Akoto from just now. Oh, no, sorry, energate. The consequences of the war in the Middle East have now reached the energy retail sector in Germany. How is Vattenfall dealing with this? How have you already started raising prices? Two questions. How are the increased wholesale prices affecting Vattenfall's procurement strategies in the energy retail sector? If I start with the customer situation in Germany, then we can move on to procurement. I think that we are constantly sort of adjusting our offers to the customers, and the pricing is also different depending on if it's a fixed contract, if it's a flexible one, if it's electricity or gas or both, et cetera. There is not one answer to that. What we clearly see is, of course, the strain that the cost increase is for our customers. We are trying to facilitate in different ways with giving advice on the right kind of contract for the right customer depending on what their personal situation is but also give advice around energy efficiency in different ways. It's not one answer to that. When it comes to the second question then, when it comes to the procurement strategies, we are of course very closely following the market developments and are looking at different scenarios and so forth. We are not sort of commenting on our strategies when it comes to sourcing for the retail market. Thank you. Summer Williamson, have you assessed how you assess the situation of grid bottlenecks potentially constraining returns or delaying customer electrification in Germany, Sweden, and the Netherlands? Essentially, what is the consequence of grid bottlenecks in the three countries? That consequence is quite severe, I would say, 'cause we see that, already today, and we have for a couple of years that the bottleneck we have from the northern part of Sweden to the southern part, but also from the northern part of Germany to the southern part, they are delaying electrification and investments that would otherwise have happened. Of course, it means that the prices are different in different parts of the system as well. I think that is quite troublesome. There is, however, a lot of projects going on from the transmission operators to actually widen these bottlenecks and build more transmission lines. We all want it to happen as fast as possible, of course. Thank you. Another one from Summer Williamson. If power prices remain modest for a longer while, would you prefer asset sales such as the Muir Mhòr development or project delay or portfolio rebalancing? Well, I think we're doing all the above, of the above, including increasing the speed of some investments. We are constantly trying to optimize both the sort of combination of investments and the timing of investments. Maybe it's important to say regarding Muir Mhòr that offshore wind is still a core business of Vattenfall and will continue to be, so is the U.K. market. Muir Mhòr was floating offshore wind, we have all seen that that development is happening slightly later than what was anticipated earlier, simply because the entire build-out is now at a slightly slower pace than before. We still see we have a lot of opportunities when it comes to fixed bottom build-out. It's mainly a timing thing, not the sort of change of prioritizations. Thank you. And maybe an addition- Yeah ... to that answer as well when it comes to how we prioritize in our portfolio and which of these we prefer. Of course we are not looking at the power prices right now, that they are maybe modest now. It's really the long-term forecast because these are assets that will live for decades, basically. Thank you. Another question from Andrew Mulder. What do you think of Germany seeking investments in new hydrogen-ready gas-fired capacity? Is that investing in outdated technology? Well, I think the situation is slightly different in different markets. I think that we will need peak capacity, we will need base load capacity, it will look different in different markets. I think that it's up to Germany to decide what kind of capacity is needed there, but I clearly see the need of some kind of flexible assets that can sort of balance the quite large build-out of renewables that's going on in Germany. I have full respect for, the need of that. Thank you. Next question from Freya Selene Erickson. You mentioned that the current volatility is not healthy for the energy market as a whole. What concerns does the volatility raise for Vattenfall itself in the near future? I think in the near future, then, of course, we are looking at our own market price risks. That is something that we are following closely to see what our exposures will look like in different scenarios. And sometimes we try then, of course, to mitigate that market price risk with, for example, margin calls with other sort of counterparties. We both have the market price risk, we have the liquidity risk that comes with margin calls, or the credit risk that you might have with your counterparties if you are not solving it with margin calls, so to speak. All these three is something that we monitor very closely when the market goes volatile as it has now. Thank you. Next question from Freya. In light of Vattenfall having exited Utsira Nord and now Muir Mhòr, are you reconsidering floating wind in general? I think that floating wind will come into the market. We just don't see that it's happening right now. Again, I think it will be a relevant technology, but it's a timing issue. Thank you. No more questions. Any last comments? No, we're very happy with the quarter. It's a strong result for Vattenfall, and I think it's good that we can show that we are able to be strong in this volatile environment 'cause we want to continue to invest, and we are doing that. Thank you. Thank you to all of you listening, and welcome back for our Q2 reporting event in July. Thank you.