PowerCell Sweden AB (publ)

Welcome to the PowerCell Group Q2 2025 report presentation. For the first part of the presentation, participants will be in listen-only mode. During the questions and answers session, participants are able to ask questions by dialing pound key 5 on their telephone keypad. Now, I will hand the conference over to the CEO, Richard Berkling, and CFO, Anders Doering. Please go ahead.

A warm welcome to this summer presentation of the Q2 report. As presented, it's myself, Richard Berkling, and our CFO, Anders Dering, making the presentation. So let's dig into this Q2 result. The headline is that we We say that we're going from milestone to momentum. And we see that the numbers are confirming this. We have a stable growth and a rather strong order intake. Record result in quarter two with 130 million SEC. And for the first time in Parasol history, above 400 million SEC roll in 12 months, which is quite encouraging. We see that the order intake remain high, that we are averaging 150 million SEC per quarter for the first half of the year. For the first time, we can also present a positive EBITDA for rolling 12 months. This is an important milestone. There's a confirmation of the momentum. We can also now conclude that the sustainable break-even level for Powercell is around 400 to 450 million SEC, depending on the product mix. This is no confirmation that we will continue to report positive EBITDA quarter by quarter yet because this is still a difficult market out there. We are pioneering in a technology shift but it's very encouraging to see that we can reach this milestone as a company in 2025. Highlights in quarter two when it comes to orders is that we received the first OEM order in power generation from the long-lasting partnership with Hitachi, where they are now sold high flex to the industry. We also had a first IP revenue since 2023. This is part of the product mix of Powercell selling IP. But it's been a difficult market to be able to get paid for intellectual property. Now we see that easing up. This was an extension of the Bosch automotive license that we've had since 2019. We also saw, which is very encouraging, the first OEM order and commitment on the next generation fuel cell stack. which is indicating not only a quite strong commitment from the marine industry to decarbonize and use fuel cells as a solution for that, but also that innovation is paying off. We're now balancing both the ongoing business and short-term growth with the existing generation, the S3 platform, but we're now starting to see the first revenues and commitments on the next generation as well, which is highly encouraging. How we managed to do this is of course through being very disciplined in execution of a rather clear strategy. We are staying in the course. We have remained focused on real demand and practical application rather than just chasing subsidies. We have avoided destructions and built around a common platform logic that takes a lot of courage and that we also need to extend gratitude to the board who has supported us throughout the years but it's also a step-by-step process positive EBITDA on low volumes is showing that we can leverage the growth which is quite encouraging we don't need to scale to mass market to be able to show profit so the operational model remains very lean cost discipline and with the flexibility without overreaching our structure and critical mass We also see early signs of commercial consistency, not to be confused or mixed up with traditional business where you can see recurring revenues quarter by quarter. Now we see the orders from the right customers, OEMs like Hitachi, Bosch and the Italian OEM that we have built prior business with. It's also to see encouraging repeat interest around our core systems and not just that we need to develop new solutions all the time. So this was an overall summary of how the numbers were created. And now over to Anders to present the numbers in detail.

Thank you, Richard. I think when it gets to the details here, really, the way they are spelled out here and in the report is, to some extent, quite self-explanatory. What I would like to share with you are some reflections, I think, once you do reading the report. And Richard already touched one, saying that, yes, we had an IP transaction in this particular quarter that, of course, boost both revenue and profit. And like Richard said, that is nothing one can expect at that level for every quarter. However, that is part of the business model and the product mix moving forward. And I think that is important to just make sure that we all understand when we read report and the future of PowerCell. On that matter, it's also important for us to see that the underlying business, when I say underlying business, that is everything else but royalties and IP. And if we look into the quarter in particular, you'll see that we have added growth in that area as well. And we've had an increased gross profit margin on that account as well, which is very encouraging. As like Richard said, this is not promising anything by the future, but it's about making sure that we have a stable underlying business as well. I think that we can move on to the next picture and go on the aggregated numbers for the half year from there. And conclude that the same thing really is applied for the accumulated 2025. I think one needs also to recognize when I say that we had a stable gross profit margin on the underlying business, you that were around a year ago and even more than a year ago, you recognize that in the first quarter, 24, we had a very hefty positive FX effect. We have been able to keep the gross profit margin at approximately the same level, despite the fact that like you now know in 25, the positive effects in 24 for us having predominantly euros as a revenue currency have been in the other way around. From that standpoint, we feel very comfortable with the underlying business, the gross profit margin. And I think that's important when you read this report, particularly when you have such a large item being an IP item. Also, and I know Richard will get back to that later on, it's about the operating leverage. He already mentioned it, but he will get back to that. We now have a very stable platform. We can stand and we can see growth from that. And I will not take away the opportunity for Richard to share the future of that one on coming slides. So I stay with that. and then of course looking into the cash flow that's important I mean a growing company with a lot of stress on working capital what are the items that have affected the cash flow during the first half year I think one thing that is very important to remember is that we amortize the loan we had and we now have a traditional Swedish check credit instead which was unutilized by the end of the second quarter and we feel comfortable with the liquidity that we sit on for the current moment and that is to make sure that there's no misunderstanding that's the 72 million we have in cash on top on that the unutilized facility of 50 million. Let's move on to the next page. And only to basically underline what we are just been talking about so far. We see a good trend. We're not promising things for the future, but we have established a platform for around 450 million where we can make operating profit or EBDA profitability. And that has been the primary objective for 25. And it's very encouraging to see that we, given the product mix that we have and that we believe is the long-term product mix, we can keep that level. With that, I will leave it back to Richard to continue the presentation.