Hello, everyone, welcome to Solar Foods annual review of 2025. My name is Laura Sinisalo, I'm here today with Rami Jokela and Ilkka Saura. On the agenda today, we will go through strategy recap at first, then go through the significant events of 2025. We move on to financial review, finally, we look what has happened after the review period. Finally, in a later stage, we have a Q&A, as always, you at the webcast, you have the possibility to ask questions throughout the session, which we will answer at the Q&A. Now let's start, I welcome Rami Jokela to the stage. Welcome again.
Thank you, Laura. If I summarize, last year, it was a pivotal year towards the growth and scaling. We started our commercial journey. We actually signed the first letter of intent and memorandum of understandings. Actually, the volume of those is more than what we have design capacity of our next factory, Factory 02. We also actually signed the deals and delivered the first Solein to our customers. I'm very excited for that, to see actually Solein really in the customer side, and customers start to do the formulation and prepare actually launches for those. Some of the places, like Singapore, already launched. We had EUR 105 thousand revenues also booked last year. The next very significant part, which is scaling. Our production capacity today is this 160 tons.
We started the project, the Factory 02, where actually we are targeting this 6.4 kilotons capacity. The project started, I will tell more about that. Part of the project also, we announced that we are looking for the strategic partners to scale globally and make a blueprint, whole factory setup. That is a very, very good news, and we have GEA, who is a global leading food processing technology company coming from Germany, but global presence, big company, who is actually partnering strategically with us. Next, our technology is well proven. We announced that we made this a 100-fold scaling compared to laboratory.
Our Factory 01 meets all the productivity targets, what we had, 1 gram per liter per hour, and energy efficiency actually is even better, what was actually targeted. Finally, actually, for the financial funding, we received the grants from Business Finland, EUR 10 million, which are very, very happy, and thanks for that. We have the equity around where we increased the equity by EUR 25 million. As a summary, a lot of things are happening, but perhaps the key point is still the commercial journey has started. Let me tell a little bit more, once more, actually, what is our strategy and actually what are the highlights of 2025. Strategy recap.
We base our business, the megatrends. We have three major megatrends which are supporting us over the many years, over the decades. Those are the health and wellness, sustainability, and now, which is rising a lot, food sovereignty as well. Health and wellness, I can say the best two words. There is a happening protein boom at the moment, even more what we expected last year. It's happening at the moment. If I just refer, we have some of the analysis, like Barclays research was commenting recently that the 37% growth expected by the end of the decade. I can think of any other research as well. All are indicating there is even more demand for the protein, what was perhaps one year ago. Why is that?
There's increased health and wellness focus among all the consumers. Protein-enriched products are coming mainstream across many categories, and also personalized nutrition in the GLP-1 users, where the end of the decade in U.S., for example, will be or expected to be 30 million of those. There's a 20% growth year-on-year, actually, for that, and of course, protein is one of the big part of the nutrition for that, the group of the people. Gut health and fibers are starting to be a big topic, also, health and wellness. This is just one part, but another part, actually, health and wellness, what is happening, the big companies, Starbucks, Dunkin', Chipotle, also big CPG companies, consumer packaged goods companies, they have announced they will go for the protein. Why they do so?
They get better prices when they are selling something what is a protein enriched. We can see that that's perhaps also the creating the demand for the protein itself. Perhaps the last what I can comment, that the U.S. nutrition guidelines were updated. Those are indicating or giving guidelines that the double the protein intake daily, have a more portions to where the protein during the day should be eaten, and actually, what type of protein, it's a very high quality protein, every meal, what they are expecting. Where we are very happy as a Solar Foods, they also are mentioned the fermentation, very good notation there as well, because we are in a fermentation business, gas fermentation.
All in all, this health and wellness market, which is all EUR 2 trillion according to McKinsey, and nutrition is a big part of that, and this protein is absolutely growing a lot in that kind of segment, helping us a lot actually for the future. Sustainability is other big topic. Global supply gap of the proteins need to be addressed by the sustainable way, and we have the most sustainable protein in the world, and we are very happy with that because this is helping actually our momentum. I can comment about what kind of discussions we have with the big CPG companies. They have kept their targets, ambitious sustainability targets, CO₂ reductions.
Our discussions with these kind of global big companies is that if they would use our LCA, life cycle assessment, how much we have CO₂, how this can actually change their CO₂ footprint in the whole company, huge company. That kind of collaborations we have with the, these big CPG companies. Examples, you can find our top ten of those companies. The last one, the food sovereignty, what I said, that has been rising a lot, actually. It was not in the radar perhaps first, but now because of the global food system is facing huge challenges, and that is pressing actually food security, localization of food production.
What we have seen, the week at the contacted around the world, many different countries, can we set up the factory in their country, that they can secure the food supply, protein production locally for the need. There are many different reasons, I believe, for that one. There is a geopolitical volatility, there's climate challenges, there are economical challenges, there's supply challenges, price challenges, also quality, the volatility. You can see that all these are pressing, that the countries also have their national agenda. They want to secure that the people in the country will get good quality food, which is also sustainable way produced. I can give one very concrete example here. Europe, European Commission actually launched recently this food agribiotech vision.
That vision is saying that by 2035, publicly, Europe should invest EUR 1 billion now and actually create also 200,000 new jobs for this kind of biotech area. Also to do it so that it will be environmentally positive protein system, which is very good, also supporting actually our business very well. Gas fermentation in this document is highly appreciated, and also an allocation of the money for that kind of technology is well-listed, actually. We are very happy with that one as well, and we are part of this dialogue with the European Union, of course. You can see, if I summarize, we have these three mega trends, perhaps different angles.
They are helping us, and as my main message here is, what one year ago we learned, where we are today, everything is moving even more positive to support long term for us. Let's go back to the our business. We have selected our key market, big market is a U.S. A U.S. health and performance segment with a $10 billion market. That's growing, like we said, our category is more than 10% year on year, so very good news. On the right-hand side, you can see that's the challenge what I was talking about.
Demand is more than supply, if you think about the bars, how much there is still this kind of high-grade whey protein, which is actually higher standard, also in the U.S., actually most needed for the all these categories what I mentioned now. You can see there's a supply gap, you can see this kind of white box on the right, actually, 100 kilotons gap at the moment expected in the next two years' time coming. Even you take all the supply additions, actually, what's globally still happening. That means that, if you think about our next factory, which is about 6.4 kilotons, we should actually have 15 factories just to take this gap. Not only one factor, what we talk about now.
There's a great opportunity to Solar Foods, similar type of companies as well. As you can expect, when there's more need, demand, and less supply, the prices are going up. We are referred actually whey protein isolate and concentrate, and you can see this dot here, what we have sole price, what we have publicly said that we are targeting this kind of EUR 17 per kilo in average. You can see what has happened compared actually one year ago, how the Vesper price index for the whey protein are showing all prices are going up. In one year time 60% increase in the whey protein prices, isolate and concentrate. Isolate is on top, you can see the more dark blue and the light blue actually concentrate. This is also good news for us, actually.
It's confirming our price point very well, what we are targeting. It seems that it's a positive signal and a development towards actually what we are targeting, and that's the key news. One of the key reason is there is no supply enough, and that's why customers are looking for the alternatives also for whey protein, whey protein isolate and concentrate, and we are that alternative. In Solar Foods, we have two major value propositions. One is a Solein itself. It's excellent in a nutrition point of view. All the protein, 80% protein, 10% of fibers, 6% of the healthy fats. That's why we are compared the whey protein isolate. We have our opinion also some more actually to give, like, these fibers and where the beta-glucan is a big part of that.
Gut health, for example, this is what the people who are targeting at the increased for the focus for that one, we are the good choice. We are very mild in the taste, very functional, animal-free, dairy-free, gluten-free, soya-free, non-GMO. We are free of the major allergens, that's also very good news for the many of the consumers. Sustainable, ethical. What is very key, what I said, that we are not dependent of the weather or climate conditions. Meaning actually you can scale this production all places in the Earth. That's why actually secure the supply quality and price volatility will be managed. What is actually not the situation today globally, like I commented.
We have learned that it seems that we are better than the plant proteins, and that's why we are giving more value and towards actually what the whey protein isolate, and that's where they are compared. We you can say, but not say, that we are combining best part of the plant proteins, and then we are the best part of animal proteins, whey protein, and that's actually what we are as a Solein. That's one of the absolutely key value proposition what we have. Another big value proposition is our platform, gas fermentation platform, how we produce the Solein. You can see in the middle of this box, Solar Foods, we are technological point of view, make a paradigm shift. We are 10-folding production compared to the photosynthesis. 10 times. That's a paradigm shift.
Food is coming out of our factory in a three days time. Three days, that's actually the key. Technology point of view, we have something absolutely unique, and our IP, what we have. In order to scale it, well globally, we are looking for the strategic partners. You can see in the middle, actually, for the platform, we are looking for the partners for the process, heating, cooling, and real estate, and the hydrogen production. You can see the left-hand side, of course, the all this hydrogen, oxygen, CO₂, and also the electricity, we are looking for the partners. Plus, if you think about these food companies who are partners, go to market, go to different kind of markets, health and performance nutrition, for example, or healthy snacking.
It could be mayonnaise companies, dairy replacement, formulations, egg replacement, and so on. We start with the health and performance nutrition from the top: protein drinks, powders, bars, and so on. Of course, we have a possibility to do much, much more. If you think about market point of view on the right-hand side, we are talking this $10 billion market now, and then actually later, $40 billion and $80 billion, what you saw the bubbles. If you think about only ice cream, ice cream market is around $90 billion. Pasta market is about $80 billion, mayonnaise market, $7 billion, and the dairy market, $1 trillion. If you think of this egg replacement, $200 billion.
It's a huge market opportunity, and that's why we are looking for the partners, how we can make sure that we can scale. We make a blueprint, then we start to scale together with our partners to make these factories more than one. We need to make many. All right, what is our mission? In a big picture, we see that this Solein product and our platform, these two big value propositions, what we have in a company, we are revolutionizing the food, global food system, making actually a new way to produce the food.
You can see that the most sustainable, but global leading technology platform, and actually to make it so that food ingredient to where we have B2B, to go our customers, health and performance, we are targeting this 1 billion consumers globally. It's a big thing, that's our target. We believe we are able to do that one through our partnerships with the when we have customer side, but also actually the platform side, and also the, if you think about upstream, downstream point of view. That's why we have selected actually the three major priorities. One is the sales and product to make it so sure that we will start with the U.S., with the big success and launching those. Number two, make sure that the blueprint for the Factory 02, and then the production capacity can increase.
Actually, number three, of course, we need the investment program to invest, actually. Once we will be the profitable company of the Factory 02, of course, it will make easier, but before that, we need grants and investments and loans. All right. That was a recap, what we announced or already last year, and confirming many of the topics, like I said, that the direction where the world is moving seems it's very much supporting what we are doing as well. Value propositions are co-confirmed and actually progress is the next. What are the highlights? Okay, highlights, of course. You can see I'm smiling. I'm happy actually to talk about commercial success. We have started our journey. We have five contracts to launch Solein products in the U.S.
We have signed these LOIs, MOUs, four of those, and actually, that's covering the volume point of view, the whole design capacity of the Factory 02. Of course, now we need to convert those to firm contracts at the end, but the intentions are there. Those are global leading companies, just like you mentioned. It's not just you pick up somebody, but we are really talking with the global leading companies here. The next one, consumer products. We are very happy with the Japanese company, Ajinomoto, which is global company. They have products, actually, different kind of products. More or less every month in Singapore, you have seen either you have ice cream, you have this kind of iced latte, or you have a bakery products, and so on.
And by the way, I have tested by myself in Singapore, those taste very, very good indeed. I'm very happy with what Ajinomoto have been doing, and that this partnership has been multiple years, more than three years already. Of course, we are launching with Fermenta, Pothos, and later, like Ilkka will comment, we have a few more contracts coming as well where we are launching. That's perhaps the key attention next, that U.S. launch is. U.S. customers will see our products, Solein-based products also on the markets and as on the shop and shelves. Product concepts, we have protein bars, protein shakes, and as well, you have drinks as well. That's actually what we have been doing a lot.
We have also announced that we can do mayonnaise much more, what actually, today, if you have egg yolk, how egg yolk compared to Solein works. Solein actually, functionality point of view, is very, very good in that. I will not go to more detail because focus for the health and performance at the moment. Regulatory point of view, we applied a No Questions Letter in the U.S. We have a self-GRAS, so we can actually do business, but we like to go to the highest level of this kind of verification of the country as well. Then, of course, we have been in application process in Europe and U.K. sometime, and we expect to get actually the approvals this year. Customer collaboration is a key. Now, what actually is happening here, you can see some logos.
We have Ajinomoto, Atlr.72, Sensapure, who is actually our go-to-market partner for the flavors. Okay, Fazer as well, Pohtos, Gutsy, which is actually a Fermenta brand. What we are doing here, we are working actually with the health and performance nutrition companies, fast movers first, to get the product quickly to the market. At the same time, we are working also with the significant global CPG companies, consumer packaged goods companies, and you can see the all different kind of food products are in your retail shops every day. Very good discussions, and what I'm personally surprised positively, that really we have access to the highest level decision makers. Why is that? I believe it's because of the value proposition what we have.
We have very strong value proposition, and of course, our customers, they have a big need, so we can help them as well. We are doing the product development, we are test production runs, and also the consumer testing. How this, our formulation works and lock in, and then it goes to launches. There is a, underneath, actually, you can see the curve, this fast-moving health and performance company typically takes with all these different stages when you start actually concepting and positioning the product and see the market, then you make an application to development, and then the manufacturing, test runs, actually, in the factories, and then actually you go to commercialization, where you'd.
What you do then, actually, you're thinking of what kind of packaging you have, what kind of labeling you have, which market you start, what kind of brand you use, and actually, what is your channel to market. It's a very detailed that's typically even you are fast company, like this kind of health and performance company, it might take even a year. If you are working with this kind of bigger global CPG company, it could be actually almost twice as long because, of course, it's a huge investment for those companies, and I understand that's why they'll really like to make sure that everything actually goes well, and investments, actually, when the launches are happening, of course, will create a lot nice returns. We have great feedback from our B2B customers and consumers.
Of course, we are collecting it, and I can say that if I summarize the feedback, how the Solein has been tested, how they see it, nine out of 10 consumers are saying, "This is great. This is absolutely great." Also story is great, with how the food or ingredient actually is created as well. We are very happy with that. In our Solein kitchen, what we have in Vantaa, we have had thousands of the visitors. We are doing also this kind of checking that, okay, how was the taste, actually, of this, our Solein menu, if you have ice cream, if you have a pasta, and so on. It have been very good feedback as well.
I'm very proud, being part of these discussions and hearing by myself what our visitors are saying, how they see it, and typically, they say that the taste texture is very good. We always have seen, seeing is believing, taste is everything. Seeing the factory, it works. Taste is everything. Actually, this Solein-based dishes and the treats are very good. We continue our development in the Solein product. Personally, I can see that I have been now in the leading this company about 11 months, so I have seen three generations, how we have been making better the ingredient, and more better fit for the ready-to-mix or ready-to-drink or actual protein bar. You can see the continuous development there as well. All right, technology point of view.
What I commented, we made already this 100-fold scaling. Like, you can see the whole journey, eight years' time, and where we are today. Personally, I'm very happy what our people and technology team have been doing. They achieved all the production parameters in Factory 01. Actually, we are using, of course, that as a basis when we are designing Factory 02. Of course, now with those parameters what we have achieved in our company, we can make a Factory 02 already very profitable. Very good information. There's other one many of the visitors have been asking: Are we in a batch production or continuous production? We are in a continuous production.
Last year, actually, longest production run was eight months continuously. That is also one of the reason how we can get our cost of operation so low. It's a continuous production. It's indeed, and of course, very simple if you think about this end-to-end, what is happening. Of course, bioreactor and this kind of IP and knowledge, that's in our hands, and then, of course, with our partners, we are able to do that one. I mentioned already designing the Factory 02. What we did February, we announced that, let's start a pre-engineering of Factory 02, and then, over the time, after half year time, August, we noticed actually better to do phased investment plan.
We have three different phases, how we are going to use the money, because then it use the money, and we immediately you get already payback and the volumes. October, actually, we announced that we implemented a strategic network of the partners, meaning actually what the slide what I was showing earlier, that we are looking for the partners for the platform. Is it cooling, heating, hydrogen production, or real estate? Of course, partners, the how the electricity will be bought as well, actually, partners at the end, how this will be go to market. December, we announced that we selected Lappeenranta in Finland to be our site. It was not easy. We have a lot of the criterias, what we are looking for, and we...
Inside Finland, there was many sites and also outside. Finally, why Lappeenranta was chosen, electricity availability in neighborhood. 1.5 km away, there is a 1.5 GW electric energy available. As well, actually, there's a lot of a workforce who knows the processing industry in neighborhood, as well as Finland have this kind of Business Finland grant program, where we are part of actually, what we expect to get also grants and support actually for the Factory 02. The many of the more parameters were there as well. We were looking for that was our final conclusion, I'm very happy, actually. Cooperation with Lappeenranta, city of Lappeenranta, has been very good and smooth, so we expect this project will and factory, the building will develop very, very nicely.
From my side, last co-comment for the year 2025 was that I made organization changes. I reinforced our go-to-market organization so that we have sales operations, we have marketing and branding, plus actually product application development, regulatory affairs, business development, nutrition science, all in one leadership. Why is that? Customers, they are looking for journey, what you saw. It's not only the salespeople, but actually develop the product together, go to market together, branding it together, and also the how the nutrition science or it might be a regulatory point of view in the use, how this works actually for our product in different countries as well. It's all dialogue together with customer.
It makes much, much easier and faster our side, also customer more happy for sure, actually, because we can make sure the priorities are right. We also, inside the company, moved resources to support the Factory 02 project because we have a lot of capabilities. We have a lot of learnings, expertise, actually, in the people. How we can utilize the best way our next factory? We also have had a lot of R&D, also R&D, we funneled so that it support the product development. Of course, online, applications and products, how we make sure that this R&D can be utilized for the customer benefit as soon as possible. Those are the changes, what was done, I think, Ilkka, you know the numbers very well, what you can comment about that.
How about if you take over now?
Thank you, Rami. First of all, good afternoon, everyone. My name is Ilkka Saura. I'm CFO of the firm. Report is out, financial results of FY 2025. I'm very pleased to share with you some of the key highlights of the year from the financial point of view. Operating loss ticked at EUR 10.4 million, so somewhat material increase from last year. That's mainly because of the growth in our operations. We have recruited more people to Vantaa and internationally. We have ran the factory almost throughout FY 2025 at very high productivity levels. These factors mainly resulted in the increase of operating loss, and this kind of reflects the situation and the status of the company.
We continue to invest in our growth when it comes to the technology itself, commercial excellence, as well as the scaling to the industrial levels. From the balance sheet point of view, net debt remained at EUR 8.9 million, net gearing at 77%. We see an increase there. Net gearing remained at relatively moderate level and the equity ratio on a very good level in the year end 2025. From the cash flow point of view, those increased also as expected. Net cash flow for the year, EUR 5.4 million, and we ended the year with a cash balance of EUR 8 million. Some of the highlights from this slide I would like to mention is the order booking.
What we do is that we report the firm committed orders of quantities and price through our public reporting. Order book increased from last year to EUR 1.5 million. That comprises of two large, larger supply agreements with health and performance, and snacking companies based in the U.S. and EU. Little bit of significant events after the period end. I can tell you that what a year it already has been, FY 2026. We kicked off the year with the successful private placement, so the company executed a fundraising project called Fuji by way of an accelerated book-building process on 23rd of January, according to the plan that was communicated in the fall FY 2025. 55% of the allocable demand was from abroad.
The round was led by our strategic partner, GEA, and followed by a number of institutional investors, like pension funds, and others, largest shareholder, Fazer, family offices and private individuals. This indeed takes us closer to the final investment decision of F02 and allows us to execute our strategy. I want to still personally thank all investors for their support and joining the round. Another great news from the field was this one. Ambrosia Collective ordered a material amount of Solein, and that was announced earlier this year. It is a company that is bringing ready-to-mix protein powders and products designed for American sports and performance enthusiasts who demand a lot: clean nutrition, functionality, and great results.
We're more than happy to support Ambrosia on this journey and want to mention that Ambrosia is a real brand in the market, by the way. Their products are being sold throughout the U.S. through online channels as well as the retail channels. We know that their products are being sold through thousands of retail stores, like The Vitamin Shoppe, GNCs, and likes. A clear sort of a flagship logo for us and is a great win. It validates nicely our value proposition and Solein's appeal to the forward-looking customers in the U.S. markets. Another news was the partnership with GEA. Like we told, we are looking for and building a network of partners in the areas of utilities, power, bioprocessing, and real estate.
GEA, which is a leading DAX-listed technology company in this space, with whom we have built F01 , joined us through the equity issuance. By doing that, we also agreed upon an exclusivity with GEA to negotiate on the supply terms of the next factory. GEA will be focusing on the bioprocess, the very core of the company, and by having these great results from F01 , we believe as a company, that GEA is the best partner for us on this journey. More to come, want to mention that we continue to negotiate with other partner candidates on long-term strategic partnerships on the utilities and real estate sides. Want to mention at the end this presentation, that what's the news? More to come.
With that, hand over to Laura. Thanks.
Perfect. Thank you very much, Ilkka and Rami. It's time for the Q&A. There's a nice flow of questions coming through. I suggest we just start and go ahead. Let's begin with a question regarding our commercialization. The first question is: how are you progressing with Solein's commercialization?
All right, I'll try to explain that. Our strategy actually select the fast-moving, health and performance companies and, the U.S. The we have now five deals done and announced globally. Ambrosia Collective is the biggest one of those, a well-known brand. That's our key part, first part. We select best five to eight those. We are innovative brands we grow together. We at same time, what is perhaps not publicly able to yet announce, but we are working with huge CPG companies. Typically, their process is very long, and we also like to make sure that our Factory 01 volume, we have something left for them for testing and limited launches and test marketing as well. What I would like to say that what I'm very positive surprised, coming also by myself, the huge companies in the past, that we have access to this big CPG companies and decision makers.
One more time, actually, why is that? I have been wondering and discussing with Ilkka. Our value proposition of Solein, very good. Demand is now, there's not enough good whey protein, high-grade whey protein available. We know that it's timing now, and commercialization is continuing. T here's more to see this year. This will be very exciting year, my opinion, actually, that if things goes, very well, so then we have something, great to announce.
Thank you, Rami. I would continue with a question regarding whey, because you mentioned it. Why do you compare Solein to whey protein?
If you compare actually the plant proteins and whey protein, the whey protein, you have perhaps two different types. You have whey protein isolate, which actually don't have lactose, which don't have actually this kind of saturated fats. Those are filtered away. Whey Protein Concentrate 80, actually, they still have lactose and also this kind of saturated fats, which is not very, very good perhaps for some of the people who are selecting. If you think about Solein, our protein content is 80%. It's more than many of those plant proteins. Amino acid profile is equal or similar with this whey protein. As well, if you think about the PDCAAS, how well actually this protein you can digest in your human body.
We have to say that the theoretical is, it's a one, it's the same with as whey protein.
Mm.
If you go to plant proteins, then it's always less. Plant proteins, you might have also some other challenges, taste, texture as well. Whey protein taste texture is always very good, so it's easy to compare. That's why we are seeing... By the way, some of the even big companies, when they have been testing, they have been commenting to us that they compare us to whey protein, as such. We are very happy with that because you can see the how the price of the whey was developing, going up-
Indeed
... and the supply gaps. We can help.
Yeah. One more regarding commercialization. You touched upon this already, but there's a question regarding offtakes. When will there be offtakes from major food brands?
Offtakes typically comes, bigger brands.
Mm.
This kind of fast-moving health and performance, they are growing. Of course, they are ... More their volume than we grow together. The bigger offtakes will come with this kind of big health and performance companies or than the CPG companies. We are in the process. We are in application development of process for them, formulating, and they are testing. You saw actually this kind of sequences. First, they, I think, need to think what is the value proposition, how the position of the product as Solein will go as ingredient. Next is all this kind of product application formulation.
Mm.
That, also the later, actually, the even manufacturing, testing, how this works. Then we'll come to all the launch plans, commercialization plans, this could take actually two years. It's, that's. I would love to have it faster, but it's a process what this kind of food companies, big, especially big food companies like to go through. We are in a journey together with them, many of them at the moment.
Thank you, Rami. There's a question: What are the major upcoming steps to receive the sales permit for Solein in Europe and in U.K.?
Okay, perhaps I will take this as well.
Sure.
In Europe, we have been now four and a half years already in the process.
Mm-hmm.
It's very long process. We see that we are now end part of the process. There should not be too many questions anymore coming. We have announced that earlier that this year we expect to get all the agreements as well. We are hopeful it will happen this way, that it will be a five-year process, more or less, or even more. Now U.K., it seems to be, it's a little bit faster. U.K. changed the legislation that there no need to go to parliament for final approval. Once the authorities have approved it, actually, then it's possible to already go to the market. It might be half year faster in that sense. Then, yeah, that's why we expect that it will be this year, the both actually happening.
Thank you. Perhaps for Ilkka, let's see. The F0 1 order backlog remained unchanged in H1 and H2. Why were no new orders secured during H2?
Yeah, I can briefly, and you please feel happy to comment also. The order book remained flat. That's right. In the H2 first half report, the order book remained at EUR 1.5 million. However, these orders that we have announced and the increase in revenue signal that there's been a lot more, and we can't expect to have more of those. There are kind of two kinds of contracts. There are shorter contracts, and there are longer contracts. These long-term, kind of committed quantities and prices are being recorded and recognized in the order book, whereas the short-term, quarterly deliveries and orders are being...
Those over the six months review period, we typically have the time to deliver, bill and collect all those. Yeah, that's why, no, those are not in the order book.
Thank you, Ilkka.
I can comment actually as well.
Go ahead.
We want to also secure the available volume for these big CPG companies.
Mm-hmm.
Purposely, we are a little bit selective, that we don't want to actually have at this moment, with the big order book, smaller companies-
Mm
... and along many years because it might be that we don't have volume actually to make all this kind of test limited launches with the bigger companies. Bigger companies will lead us with offtakes.
Mm.
We are using Factory 01 demo factory really to actually make this kind of a lead towards the big offtakes and the Factory 02 .
Thank you, Rami and Ilkka. You said you are negotiating with GEA about a partnership. What does this mean for Solar Foods?
Okay, I can comment. GEA is a global leading food processing company. They also have been investing a lot in the food tech. You can see GEA actually at all these kind of global food tech events as well. They're very visible. As a Solar Foods, I think we should be very happy that GEA actually selected us because I think they know all different kind of platforms and companies, and I believe they also, like Ilkka was co-commenting, that the Factory 01 , we have been doing three years of work together.
Mm.
All the downstream processing part is coming from GEA.
Mm
We know how it works as well. This is not so, just actually go to test, but we have tested it already many years. It's a very good confirmation for this, our platform, gas fermentation platform, where actually we have got very good comments, also The Good Food Institute and other places, that this is the leading platform. We see ourself one of the leading companies in this whole area. GEA coming actually to supporting even globally for global scaling, it's very good.
Thank you, Rami. Let's continue this topic a little bit because there's a question. You say you are looking for collaboration based primarily on heating, cooling, and hydrogen provision. Are no license royalty scenarios possible?
Currently, we continue to work with the existing strategy on entering the health and performance markets in the U.S. by selling the ingredients through B2B business model. Licensing remains as a long-term target beyond the existing strategy period, but of course, is continuously being evaluated. Currently, the most lucrative way to continue is to pursue this particular strategy.
Mm-hmm. Thank you, Ilkka. There's a question: Going into 2026, does Solar Foods prioritize finding new, large industrial scale clients for the Factory 0 2 plants or smaller, fast-moving players that could come to market with Solein products faster?
Great question again.
Mm.
Perhaps I will take it. Key for us in our strategy is to get Solein products or Solein ingredient products to market quickly.
Mm.
That's why we have selected this fast health and performance nutrition companies. You can see that less than a year time, actually now our launches are happening. This is actually. Even if you go any of consultants, they are saying, "Wow, this is actually faster than they expected for that." The bigger companies, it takes time, so that's why you can see we have, like two focus boxes: Get product quickly to the market and grow with innovative brands, like Ambrosia Collective is a good example. Same time, work with this kind of long journey and get the big volumes, and those are typically the big multi-billion CPG companies. It takes perhaps up to two years that everything is done, and then you have everything actually the way. We are well in the process.
Thank you, Rami. Let's take a last question. This is to you, Rami, actually.
Mm-hmm.
Rami, what are the main changes you have aimed to implement at Solar Foods during your time as a CEO? What have been the main surprises you have run into?
Wow, that's!
Personal financial statements.
I have to say that Solar Foods, I knew that when I, of course, was chosen actually by the board of Solar Foods, okay, becoming the CEO, but also I was looking at that time. I have to say that I was looking something always there's mega trends supporting, there's big markets, there's a good value proposition, and then who are the ecosystem partners, stakeholders around, and all the people, experts around us. That has all confirmation to me, that the spirit doing, actually, let's do it's all there, and our value proposition are very good, both in the Solein as well actually this gas fermentation platform. I don't know if it's a confirmation. It's not a surprise.
Big surprise actually has been that we have had a access this multi-billion companies, the highest level decision-makers, and we, and Ilkka, me, and our people have been able to go there. Why is that? There's so much demand, and we have a solution, and our value proposition works. Perhaps that has been the surprise for me, that at least the dialogues are typical. It might take access, and all this will take time, and then you need to do something. Here we have had I don't know if it's by luck, but at least I think our product works. It's our product is so good.
Mm
It actually, when they are testing it, start to actually, dialogue will start. This is perhaps positive surprise. Of course, it's absolutely positive surprise, like a GEA coming to our strategy partner, investing actually the Solar Foods as well, confirmation of our platform and our other dialogues what we have in the pipeline with other partners as well. I'm very, pleased with that, so, and looking forward what to announce perhaps next.
Thank you, Rami. Any last words before we close this up?
Ilkka, should...
Go ahead.
... should we thanks, let's thanks all our customers, existing customers, and future customers, as well the partners, so strategic partners, like we mentioned a few of those as well. I'm very thankful for the all the great work what our professionals in the Solar Foods have been doing the last year, and I'm very excited for this year. We have a nice opportunities ahead of us. Let's make it happen.
Thank you.
Thank you very much for joining us today, and have a good rest of the day!