Arise AB (publ)

Thank you very much. I will start with a brief introduction of the company. Slide three, thank you. Arise was founded in 2007, the first company in the sector in Sweden to be listed on Nasdaq in 2010. And we are nowadays some 76 employees in six different countries. We have three business segments, starting with the IPP part of production. Currently, we have 172 megawatts installed, corresponding to some 430 gigawatt hours per year annual production, budgeted production, I could say. We also have the development segment. Currently, we are at the 9,000 megawatts in our product pipeline. We have since inception divested some 1620 megawatts, adding some 125 to this during the quarter with the transaction of the best in Finland. And the third leg is our solution, what we call solutions, our services business, asset management, and also construction management. Currently, we have some 2,000 megawatts under asset management and we have under construction management some 380 megawatts. With that, I leave the word to Marcus.

Thank you, Per-Erik. Yeah, Q1 2025 was affected by FX to quite some extent. I will come back to that within short. Our reported net sales amounted to 85 million SEK for the quarter. EBITDA came in at 24 million SEK, EBIT at 2 million SEK. Profit after tax totaled negative 19 million SEK, but adjusting for a refinancing one-offs of minus 19 million SEK, profit after tax totaled zero or SEK 0.07 per share. Our operating cash flow was 26 million SEK and cash flow after investments amounted to minus 10 million SEK. On production generated 91 gigawatt hours, pretty much in line with the same period last year. The average income decreased to SEK 555 per megawatt hour. And during the quarter, the project portfolio increased by almost 150 megawatts. Illustrating some effects and one-offs effects on this slide, as we have our revenue from earnouts recognized in Euro. A weak Euro impacts the revenue within the development segment. In the first quarter, this corresponded to approximately minus 18 million SEK, hitting that sales EBITDA and trickling down to the profit before tax as well. The weak euro obviously had the opposite effect within our net financials, where we instead had a positive effect of 11 million SEK. In connection with the refinancing and redemption of the outstanding bonds in January, and as we communicated at that time, we took one of costs of approximately minus 19 million SEK in the quarter. So the total impact of these items amounted to an EBITDA effect of minus 18 million SEK and an effect on profit before tax of minus 26 million SEK, which is worth keeping in mind. So if we look briefly into our segments, development posted negative EBITDA of 5 million SEK during the quarter, primarily then explained by the FX effects I just discussed. Happily, we signed an agreement for the first finished project sale in March. The battery project that Per-Erik mentioned, the earnings effect will come in the second quarter. Overall continued maturation of projects across all markets. Within our own production, we posted an EBITDA of 35 million SEK, January and March, so a decent wind speed, but February was kind of horrible and burned the full quarter. I realized price decreased to 555 SEK megawatt hours, but still on a historically good level. During Q1 we also entered into our first hedge positions. We hedged roughly 9 gigawatt hours each for Q4 2025 at 61 euros per megawatt hour and Q1 2026 at 72 euros. Our solutions business posted zero MSEC in EBTA and that's due to the fact that the construction management agreement for Kölvallen has been fully invoiced. which imply the revenue drop by approximately 2 million SEK for the quarter. There will be no further revenue under the construction management agreement, but instead the operations management agreement will kick in at the commercial takeover, which we expect in the first half of the year. Looking into our portfolio a bit, as I mentioned, it increased by some 150 megawatts. In Finland, during the quarter, obviously focus on the sale of Pysseisperre, but also maturing other projects, not least other best projects. We saw good progress in the UK. We expect projects to enter into planning during the year, and we now also see opportunities for the first portfolio sale in the latter part of this year. Finna Berget still waiting for line concession. We expect to have that in place in late 2025 and also to initiate the transaction process in late 2025. We have now also initiated the development operation in the German market with a sole focus on best projects, where we have the aim to get projects ready to build already in 2026. So all in all, satisfactory development of the project portfolio. Thank you.

Looking at the power markets in general, I could say that we had quite soft power markets during the quarter. In the Nordics, very much influenced by a strong hydrological surplus entering into the year in the Nordics. If we start with the spot prices, you can see the graph to the upper left. We had a quite mixed and volatile spot price environment. Cold and dry February shifted into wet and very mild March. We still see low demand and very low prices in the north and healthier pricing in the south. Should also mention that we had a very turbulent balancing market during March. If you look on the graph, you can see the orange line, which is SE4 and the blue line, which is the system price. You can see prices peaking in February and then losing and weakening during March and peaking in SE4 around 90 euros per megawatt hour and losing down to some 50 euros currently. So quite a big drop during the quarter on spot prices. Looking on forward prices to the bottom left, calendar year 26. Here you can see in the bottom the blue line, the system price, the orange one, SE4 here as well. And the green line is the German forward prices. And you can see it's a quite big gap between them. Nordic prices very much impacted by a strong supply and continuing low demand, but a bit different story when it comes to the German prices, low demand as well in Germany, but also very much impacted by weakening fuel prices, gas prices as winter risk dissipate. Important to notice the gap between Nordics and Germany, even though markets are soft, there is a big gap. And if we have a hot and dry summer, it can make a big difference. Nordics coming closer to Germany, but that remains to be seen. With that, we change slide again. Our agenda for this year. We are very much focused to deliver on our financial targets. The shorter term one is to have sales of some 400 megawatts in total, 24 and 25. With the business pair transaction, we reached some 165 megawatts. So we are below 50% of the target, but we are still optimistic that we will be able to manage that target. In the more long-term target, we have a target of 10 gigawatts or 10,000 megawatts in the total product pipeline by end of 2025. We are currently, as Marcus shown, some 9,000 megawatts in the project portfolio. So we are quite close to that target, I would say. One other main target for us this year is to achieve commercial takeover of Sjölvallen, which we expect to do during first half or second quarter this year. And we are continuing our efforts to mature early stage projects into late stage to realize a long-term target of having some 500 megawatts product sales or FID per year the years 26 until 2028 and that is obviously ongoing as we're not there yet and with that we change light again a bit deep diving into the first product sale in Finland I think the We are really happy to be able to deliver on our strategy. One is, of course, to diversify in terms of technology. This is the second one we are doing on BESS, but also to diversify in terms of geographies, our first transaction in Finland. So we are very happy about that. A quite big size BESS product, some 125 megawatts, which was sold to Alpik. as we understand it's the largest best product sold in the nordic so far purchase price of 6.7 million euros to be paid on closing and we expect to have closing very soon this quarter uh following by children in the end of 24 i think we think that this is very further illustrates the results from our diversification efforts and some kind of evidence that this model works for us. I should also mention that the best projects are quite much different to developing wind and also solar. We can do it with a very low capital spend. Of course, it requires competence, but not much capital. And we actually As we did for Tysholen, we also had a quite quick process for Pussysperry around one year from start to sales. And looking at the IRR, it's quite impressive numbers. We are looking at here, we are talking about the four-digit IRR percentage. We are quite confident that we are able to do more transactions on BESS and we are well positioned to do further transactions already this year. Short-term outlook as we all experienced there are a lot of your political turbulence globally and as we see it this is another driver for what we do, distributed power production, security and supply, or you could say national security. As having distributed power production, it's less sensitive for attacks in a war situation. And as we see, this should increase the attractiveness, not just for our rights, but for the whole sector in reality. Looking a bit more on our eyes, we are aiming for at least two more transactions this year. The successful diversification has provided us with a number of transaction opportunities. We have not just one or two alternatives here, we have a number of alternatives in different regions, which makes life a bit easier for us. We have experienced quite and we are currently in quite soft power markets, but we should keep in mind that power markets are really sensitive, weather driven with high volatility. We have so far been quite successful in doing price hashes when there are opportunities in the market and we are still, we are active in monitoring the market on a daily base and we will if we see opportunities we will do some further price hedges short term and during the year as well and as said earlier we will see this year quite a big price gap to continental europe and if we see some some different weather conditions hot and dry we will see and most likely see a market change north again with that said i think we are through the presentation and the floor open for questions.