Orrön Energy AB (publ)

Good afternoon. Welcome to RN Energy's Q3 results presentation 2026. Joining us today, we... ...strategy of the company.

Following the presentation, we will have a Q&A session, so please send across your questions as we go along. We will collect and go through them at the end. And with that, I would like to hand over to Daniel Fitzgerald to kick off this presentation.

Thank you, Jenny, and thanks to all of the viewers joining us today for our third quarter results presentation. This is a really important quarter again for our energy, the first where we see the combination of our Nordic assets with CloudBerry. And with that combination, we continue to remain exposed to the Nordic price regions and the Nordic development opportunities more broadly across all of the price regions and especially with that shareholding and cast groove we end up coming beyond with a tightening market higher Starting to share a little bit more detail today on our greenfield portfolio, which is now in the spotlight a little bit more given the transactions. And I look forward to going through a few more of the projects and the detail on that and when we expect to be seeing larger triggers on that part of the portfolio. So it really is a transformational quarter again, for our own energy and also for CloudBerry as part of the transaction that we undertook with them. And with that, I think there's four key strategic pillars for our energy today, and it's very easy to understand them and value them appropriately in a fairly discreet way. The first is through our strategic shareholding in CloudBerry, where we are the largest shareholder and we hold 27% of that business. I'll touch on their Q3 performance and more importantly, their outlook for the coming year in a later slide. But that really is a cornerstone where we remain exposed to the merchant price regions across the Nordics with over two terawatt hours of production and ample opportunities to continue to grow that business. And together, that's a lot stronger platform than either company was before the combination of the assets. We then move into our large-scale development pipeline where we have been building for a number of years, energy hubs, infrastructure projects, solar battery and data center projects across a broad portfolio. And I look forward to sharing some more information on that portfolio. And it's clear to see today that there's zero value within our stock. And the value comes from the CloudBree share and the second pillar, which is the Kars Group asset in Southern Sweden. And with that, we also have a very strong balance sheet. Following the CloudBerry transaction, we're down to very low levels of net debt, €3 million at the end of the quarter. And that debt-free position as a company gives us real strength. And as Espen will touch on, there's not only enough liquidity headroom within our current facilities to grow the business, but should we wish to lever up further, we have ample headroom to keep going and deploy significant capital into our growth efforts. If we take that then one step deeper and look at the valuation on each tranche of the portfolio within Oron, I think the easiest first step is to take the value of CloudBerry. If we take the value of CloudBerry today, it represents just shy of six SEC a share in Oron Energy. and we're trading today at a bit above eight and a half second share. So this CloudBree shareholding represents over 70% of the value of Oron Energy today. And that's the cornerstone, which is a pure mark to market. on the Cloudberry stock. If we take what's remaining left in the business between Castgrove, the Greenfield portfolio and further growth, we end up with an implied valuation of only 60 million euros for that remaining element of the business. If I take Karsgrove this year alone, we're going to generate between 15 and 19 million euros of EBITDA if we ignore the hedging position that we have in place today. If I take a fairly conservative multiple on the Karsgrove business, around 10 times EBITDA, we end up with a valuation very similar to the Cloudberry holding today at 150 million euros or thereabouts. That gives us a clear runway just through the underlying value of Kars Group plus Cloudberry to close to 12 SEC a share, which is somewhere around a 40% uplift to where the share price is trading at the moment. That gives no value on the Greenfield portfolio, and that portfolio now will move into a much stronger phase with key milestones coming each quarter on the portfolio. And we'll touch on those in a short while. But the data center portfolio alone is a significant size and unlocked by having the renewable assets and the storage assets sitting alongside the demand projects for the data centers gives us a lot of opportunity to continue to grow. And as we touched on, it's a strong balance sheet behind Auron Energy today, down to €3 million net debt with ample headroom. So in my mind, this is a compelling value proposition. Hopefully, we can convince you as we go through the slides today and more of the material today on what's actually sitting behind some of the lesser known elements within the portfolio. If we turn our minds then to the first nine months results of this year, we delivered power generation on a continuing operations basis, which is Karsgrove alone of 165 gigawatt hours, which is in line with our full year guidance. We delivered revenues of over 15 million euros and EBITDA of 4 million euros, which includes one month of the contribution from the CloudBerry portfolio, which Espen will touch on the accounting of. This quarter we recorded a gain on sale for the Calabria transaction of 28 million euros and that'll be a one-off link to the valuation of the consideration paid. That's come through in our net result and shows through in the financial statements. Our net debt, as we touched on, shrinks to only 3 million euros. In the Sudan case, we have finished in the district court. We were expecting a verdict in December of this year, and it was announced by the judge on Friday of last week that that will move into February of next year. So we're slightly delayed on the result and the verdict from the Sudan case. We remain fully convinced, as we have done all along, of a full acquittal in this case. We expect that to be the result, and I think the reality of writing What is two and a half years worth of a district court trial into a verdict is just taking longer for the judge and the team than what was originally expected. We've sat and looked through this to see if there's anything to read into it and there's absolutely not. I think it is just a short-term delay in the verdict which is very, very disappointing. We had been looking forward to seeing the end of the Sudan trial Thank you very much. They delivered 295 gigawatt hours of production, which is a record for CloudBree. Also 165 million NOC of EBITDA. And what that means is a 1.1 million euro contribution into Auron's financial results, which we'll share in Espen's section a little bit more. I think the most important element from that portfolio, my takeaway from the Q3, is not only is it a broad Nordic platform with over two terawatt hours of production, it has all of the ingredients we need to be successful in this sector. We're of the right scale and size. We have a fantastic team. We have a lot of development projects, both in powered land data centers, but also in the traditional renewables and a long pipeline of life extension and repowering opportunity. When we look at the Nordic market, it really is strengthening already today and into the coming year. We're seeing strong futures prices, low hydrological balance across the Nordics. We're seeing the gas price staying strong through the winter, historically low levels of storage. And that's pushing us into a very high Nordic system price as we enter the winter months and into next year. What that translates into, you see on the chart here, which is directly from the Cloudberry results, is a very strong underlying earnings for Cloudberry from revenue all the way through to CFFO. And I look forward to seeing this portfolio continue to deliver strong results as we move into the new year. Turning our minds to our remaining asset in Castgrove, I think there's not much to say other than business as usual for Castgrove. We're producing power in line with what we expected from the asset, high levels of uptime, good performance, and year-to-date we've achieved 77 euros per megawatt hour, excluding the hedging that we've put in place. When we look at the system price for next year, we see similar levels on the system price and we expect to produce similar levels on the gigawatt hours next year. So the EBITDA for this year is 15 to 19 million euros, depending on what the Q4 pricing looks like, excluding the hedging. We expect to be within that range next year as well, based on where we see the market for next year. So it really is a strong core asset. It delivers good, strong cash generation for the company. And we expect another strong year of performance for Castgroove next year. Turning our minds into the development portfolio, I think this portfolio has matured nicely over the last three or four years. We started this platform in 2023, or Oron Energy entered this platform in 2023, which already at that point in time had applied for a range of grid connections across the UK, and we deepened that in the UK and further into Germany. Where we're standing today is with a 17 gigawatt pipeline 10 gigawatts across traditional renewable and storage assets with around 7 gigawatts in the data center space UK and Germany are leading that charge with France coming behind slightly less mature and we're seeing a significant portfolio certainly in the UK where we're awaiting final grid connection dates and the connection agreements and in Germany we're going to see that application process coming to a decision at the end of November What we've done with these portfolios is our view on the future renewables projects has been for a while that we need to generate projects with an energy hub concept where renewables is producing more in line with baseload power and we've been building that portfolio for a number of years. The renewable and storage projects co-located with the data center and demand projects gives us a really fantastic platform to be able to deliver these integrated energy hubs. And I see, as we see more and more regulation changing across Europe, This puts these energy hubs more into the fore in terms of what not only grid operators are asking for, but also governments and society are asking for less impact on the power price and for new demand centers to bring power to the grid as part of that demand application. And so we're sitting in a perfect position where we're moving into key milestones on these projects in the same time that we're seeing the data center and AI market with insatiable demand for capacity and we're seeing the regulation changes pushing us towards this concept. I think grid has become a bottleneck and it doesn't matter who you speak to across the sector, across the industry, whether it's in the US, whether it's in Europe, in Asia, in the Pacific, everywhere grid is the scarcest resource we have for anything related to data centers and AI demand. We've secured strategic grid positions early in key markets and primarily UK and Germany, where you see on this slide, we have three gigawatts in the UK, which has secured gate to grid connections. What we're awaiting is a final grid connection agreement, which will come, we expect in the early part of Q1 next year, which will give us the connection data and the final location with the formal agreements. That spread across 1.8 gigawatts of solar projects and 1.1 gigawatts of data centers. If we turn to Germany, then we have 10 gigawatts of grid applications lodged across battery and data center projects. These are in the energy hubs or largely in the energy hub concepts where we expect to hear more at the end of November. Our projects are quite mature in that pipeline and where we see the benefit is in the grid reform in Germany, where the grid operator has put forward a set of criteria on securing of land, securing of long lead items, co-location of technologies, etc. We rank very, very highly. In a majority of our projects where 11 out of 11 is the maximum score, we rank between 9 and 11. So we're fairly confident that we will see a significant amount of that 10 gigawatts awarded in the grid connection agreements coming towards the end of this year. When we selected the sites in Germany, we selected those nodes which had available grid capacity and we're scoring extremely high in that. So we do expect to see some positive results out of the back of this reform. That puts us into a very, very strong position. With grid being the bottleneck, we have a range of projects that will very quickly move to ready to permit, where we've already engaged with the local municipalities. In some projects, we already have the first decision on permitting, and we'll move into next year to secure more of those permits and push these projects towards ready to build. It's a fantastic platform. I think the teams both in the UK and Germany have done extremely well in a changing environment with changing legislation and emerging markets. And I think we're positioned extremely well to capitalize on that portfolio. When we look at the Energy Hub concept, I think you can see a schematic on the left-hand side of this chart where for a single grid connection, we will then have some infrastructure sitting there which distributes the grid between the three projects, which are somewhat co-located, certainly behind the grid connection, but physically separate within the municipalities in which we operate. This Energy Hub concept allows us to have solar projects bringing power to grid, battery projects which help both on the demand side and also on the supply side to regulate our power in the right way. And very importantly, given the valuation in the AI and data center space, it unlocks the ability to meet all of the recent regulations and efficiency regulations around the data center side. We're seeing a lot of traction from both the grid operators and the local municipalities around these concepts and we expect these hubs to be coming forward to market very, very soon and we should expect to see the results of that. On the right hand side, you see three of our projects in Germany. We have around 13 projects which are moving through this grid application process. This is just three of the more mature ones where you see around that one gigawatt size split between solar battery and data center. This process is live. We have a range of early stage bids on this and we expect to see more on this process as we secure grid at the end of November and move into the tail end of this year. And on the final slide before I pass over to Espen, I'm not planning to go through this in detail, but a lot of our investors and stakeholders have been asking us around the detailed status of the projects. Where are they, in which countries, in which In which technologies and so we've shared a little bit more here on the project background. We expect to share more as we go through the coming quarters and share with the market exactly when we see both the grid results in Germany, the grid results in the UK and an update on these projects moving forwards. Importantly, there are some really key triggers, especially around grid that are coming in the next three months or so. And I really look forward to seeing these projects being able to unlock all of the key elements around land and grid, allowing us to unlock the final pieces of the permitting discussion and move forward into construction and sale on a range of these projects. And with that, I'll pass over to Espen to run through the financials for the third quarter. Thank you, Daniel, and good afternoon, everyone.