PowerCell Sweden AB (publ)

Welcome to the conference call. For the first part of the conference call, the participants will be in listen-only mode. During the questions and answers session, participants are able to ask questions by dialing pound key five on their telephone keypad. Now I will hand the conference over to the speakers. Please go ahead.

Good morning and welcome to the PowerShell quarter one report. Today, me, Richard, is joined by CFO Tobias Gustafsson, and we will walk you through this first presentation and then answer any and all questions that you might have. So looking back at the quarter, we had a rather good market activity, but on a slightly softer market. That doesn't mean that it's a bad market out there, but it's a softer. Soft we mean that we see slightly longer time for decisions, but on the other hand, larger orders potentially out there. We reported a 3% growth for quarter one and 18% rolling 12 months. Torbjörn will comment slightly more on that one in a few minutes. As we said, we see more OEM orders growing in, which is encouraging because that means repeat business. Notably, the ancillary power of business to Fantastic Group that you see on the right side on the delivery truck there. We also had a presentation together with Hitachi Energy, Skanska and Volvo Group and Port of Gothenburg with a high-flex container where we are replacing diesel generators to give power to construction vehicles operating in silent mode on green energy in the Port of Gothenburg where they are redoing one of the docks there. We are happy to report a historically strong operating cash flow, as we promised in the Q4 presentation, bouncing back on the slightly negative side that we reported there. We indicated we had cut-off effects at the year end, and now we are happy to see that we could deliver on that promise. Also glad to see that we're part of another larger development project, H2Marine, which is an Asian-Japanese conglomerate to develop the next generation stack platform. This is once again one more application where we are accelerating the development of the next generation. fuel cell stack from Powercell, the 300 to 1 megawatt, 300 kilowatt to 1 megawatt fuel cell core stack that we're industrializing that we previously had in the project Newborn for aviation as well. We are seeing a strong underlying market, but it is shifting gears. We have reported this previously that we are now moving away from the project driven market that we saw a couple of years ago or up until last year, moving into OEM business where we see larger orders, but at the same time, longer decision process because we are now integrated or designed into the customer solution. So the evaluation process is longer and the negotiations by contract negotiation is also longer. But at the same time, order volume will be greater when we have the orders coming in. So it's a different time in market. We also see now that marine power generation is driving demand. Up until now, we have seen aviation accelerating the industry. Marine driven by the fact that vessels operate under a long period of time, 20, 25, 30 years. So they are future proofing their installation with green technology. Power generation, mainly driven by data centers with the growing demand from AI applications. AI applications also consume more energy than traditional computing. So this is now heavily affecting the power generation industry. Moving into the numbers of the quarter, I give the floor to Tugan.

Thank you, Richard. And as you brought up on previous slide there, we are up with 3% to 52.1 in the quarter and relates to soft market, but still a growth. And as you can see on the graph there, the quarter one is normally a slow month for Paracel. In the quarter, project sales stands out as the part that is the strongest. And project sales often relates also to marine business. For rolling 12 months, sales are up 18%. And then also royalty has been increasing during rolling 12 months. So we're up to about 20 million now royalty then coming from Bosch.