Arise AB (publ)

80 million SEK cash flow after investments minus 13 bearing in mind that the investment activities in the quarter also included a first milestone payment to the seller. So if we look a bit into our segments development posted the DPA of 66 million SEK very strong quarter again driven by as I mentioned previously we also saw continued maturation of projects across all markets and the late stage portfolio increased by a full 400 megawatts which I will get back to on the next slide. Production posted DPA of 15 million SEK in the quarter we increased the production by 10 gigawatt hours compared to the same quarter in 2024 and the realized price however decreased to 352 SEK per megawatt hour as the same quarter last year had favorable price hedges. During this quarter we also entered into a new hedge position in the short term which is for Q3 2025 about 8 gigawatt hours at the price of 48 euros per megawatt hour. The solutions segment pleased to see now that Kölvallen has been taken over and as of June the OMA has come into force for those who remember last quarter was a full quarter where we didn't have any revenue from Kölvallen due to the CMA being kind of cut out, CMA being the construction management and now when we enter into the operations management we will see revenues from Kölvallen going forward. This is a segment where we are well positioned for new assignments as well. On the portfolio side it was largely unchanged in size despite the removal of Piscis Ferre's 125 megawatts 400 megawatt was advanced from early to late stage. Some 30 megawatt is solar and best in Lebo where we are developing that park as a hybrid park. In the UK we have another 100 megawatt or so wind project in Scotland which has been advanced to late stage as well. Also a solar and best portfolio of some 100 megawatts which is new in late stage. Also continued maturation of finished projects both wind and solar as well. All in all very exciting development I would like to say of the late stage portfolio and the prospects to realize projects going forward. Then I'll hand back to you Berk again.

Thank you. Market developments, power markets. If we start with looking at the graphs to the upper left you can see the spot prices in the Nordics. The blue line is the system price, the gray one is SE3 and the orange line is SE4. You can see a quite typical seasonal price profile over the year with the peaks in the winter and the lows in the summertime. What could be highlighted here that we have a quite big gap between summer lows and winter highs. Which has been quite extreme I would say last year and we had quite high prices during this winter. To the bottom left you can see the former prices. You can see the gray line is SE3, black line is the system price in North Pole area and the orange line is SE4 prices. Quite stable or sideways during the year until end of June. You can see also the German price is the blue line which is a quite much higher price actually. If you compare system price calendar year 26 with the German pricing it's more than double the price in Germany. Of course that could be a driver in the long run for higher prices if the fundamentals in the Nordics would improve in terms of hydrology. Looking at the Nordics we see now that the forward market is a bit better supported as the hydrological surplus decreased. We had quite dry weather especially in the southern part of Norway that has been having an impact on the overall hydrological balance in the Nordics. We had as you can see on the spot prices quite fairly strong pricing in the southern part of Nordics and very weak in the north. Very much driven by big hydrological surplus in the northern Scandinavia, the north of Norway and Sweden. We also experienced that the balancing markets still are quite volatile and costly especially in the northern part of Sweden. We have seen quite high costs over time. Looking at continental Europe power prices in general quite stable driven by fuel prices that have been quite stable despite the global economical turbulence. Gas prices have been supported by re-injection to storage starting up during early summer. Year by year we see more influence impact from the solar power circles in continental Europe. One thing to highlight is the question marks when it comes to French nuclear. There are some question marks when it comes to corrosion problems in nuclear power plants and also if we see another heat wave come into hitting continental Europe there might be issues and production limitations due to cooling water as well. So some question marks on a dark horse I would say French nuclear that could have a quite big impact on continental Europe prices in continental Europe and that will have impact in the Nordics as well. Especially if the hydrological surplus in the market will continue to decrease and the current weather forecast point in that direction. With that said we can change slide. I would say the key event this quarter was the fact that we managed to complete the Kjellvala and achieve COD or commercial takeover. This is our largest project so far 42 turbines 277 megawatts installed corresponding to some 950 gigawatt hours a year almost one terawatt hour a year in production. This is the best production asset that we have seen so far in Sweden I must say an extremely good production resource. We had a sales price of 75 million euros that we got paid upfront and now we have managed to achieve an earn out of some 30 million euros. So a really profitable project for us as a company and really a milestone for our rise and on top of that we have also a share now in the project of some 9% corresponding to 85 roughly 85. Gigawatt hours a year. Should be mentioned that we had a quite challenging project when it comes to construction we had a quite challenging overall time schedule and on top of that we have been doing a winter installation and. And also we had quite challenging permit conditions so so quite challenging project which we now managed to complete. By having an excellent performance by our construction team and also we had a very solution oriented corporations with suppliers and also I must say authorities as well that being quite pragmatic and solution oriented when we had some issues during winter. We also had quite good contribution from from our best project or battery stores project by chalan which reduced the grid Capex for for chalan one which also was had a good impact on on the price on the earn out. I also would like to mention I think it's worth mentioning that we have developed free projects in this area and scaffolding chalan wind projects and also pie shell and battery storage. And these three projects have finance some 500 million SEC half a billion SEC in new grid infrastructure including a new 400 KV station in the main grid called the top area so so so I think this is a quite interesting side effect from the project as well. And with that said, I think we move to the last slide. Looking at the 2025 our expectations maybe have a clear financial targets which we expect to deliver on when it comes to produce a some portfolio growth. We have a 10 gigawatt target on product portfolio by year end. We have growth in all markets and we believe that that is a target that we will. Will meet and on top of that we have the 400 megawatt product sales in total for 2024 and 2025 together. We believe that this really stick to meet as well by harvesting on our diversification meaning that we have we have projects maturing in the new markets. We see all in all upside potential short term in the Nordic power market as so we believe that that it will or would benefit our own production for the second half of the year. And if we see spot prices and moving north, we also believe it will have a positive effect or positive. Impact on product valuations as well. So so we are a bit bullish on on on second half, but we are the beginning. We are starting from a quite low level as well. We must say as well. We will continue to deliver profitable growth. We have a really expect to have strong financial results in the end of this year, despite the quite quite the week market conditions. We have an attractive attractive late state portfolio and we believe that will be a good foundation for for the coming years. We have financial targets. So I have a divest or have a FID for for 500 megawatts per year from the years 26 until 2028. So so we believe that we are well positioned for that as well. With that, I think we are through the presentations and leave the floor for questions.

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