Earnings Call: Q1 2021

May 4, 2021

Slides

Good day, and welcome to Aker Horizon's First Quarter Presentation. We've been looking forward to this milestone reporting for our first time as a publicly listed company. Joining me today is Noma Tolson, CFO of Aker Horizons Mary Quany and Paul Corrigan, CEO and CFO of Mainstream Renewable Power and Knut Niebord, CEO of AkerClean Hydrogen. AkerClean Hydrogen will be reporting for the first time in July, but is joining us today for a business update. For today's event, we will be referencing the Q1 presentation that can be found on aquahorizons.com. So turning to Slide 4 for the main developments in the quarter. It has been an exceptionally busy start to the year, having announced several key transactions, starting with the agreement to acquire Mainstream signed on January 19. This was a major milestone for Aqua Horizons in many ways represents a step change for us in terms of development capabilities that mainstream immediately adds with its 340 people and large global pipeline. You'll hear more about this from Mary shortly. The agreement entails that Aqua Horizons will acquire 75 of mainstream, with the remaining 25% being held by current shareholders, most notably the founder, Doctor. Eddie O'Connor. The purchase price is €900,000,000 on a 100% basis and closing is planned for the Q2 this year as previously announced. The process is on track. Next, Aker Horizon successfully raised approximately DKK 6,000,000,000 through an equity private placement and convertible bond issue. We saw a tremendous amount of interest and are pleased to have reached over 18,000 shareholders in a short period of time. We also raised our 1st green bond in the quarter, with one of the largest Nordic bonds ever raised at 2 point DKK5 billion, with the proceeds going towards projects in accordance with the Green Financing Framework. Further, AkerClean Hydrogen was introduced as our 4th platform during the quarter, just after the announced partnership on February 18th with Yara and Stockdruft regarding the establishment of Europe's 1st industrial scale green ammonia project. And by the way, we couldn't be happier about how the partnership is going so far with these 2 great and complementary organizations. Subsequently, Clean Hydrogen raised DKK 3,000,000,000 of which Aker Horizons participated with DKK 500,000,000. We are pleased with the progress of the Company in a short period of time. And we are pleased with the interest seen from quality investors domestically and internationally. However, it is worth mentioning that we are obviously not pleased with the share price development since the listing. While one needs to think long term in this business, we still would have liked to see a different outcome in the short term. Now with that said, we now have a company that is well capitalized with a market potential in the range of several $100,000,000 over the next 2 decades and a starting point to become a global leader in this market. You'll hear more about this shortly. And then we have 2 announcements just today. First, Hawk Horizons announced that it has increased its revolving credit facility from €170,000,000 to 4 100 €1,000,000 through a syndicate of 8 European banks. This will give Aqua Horizons additional capacity for green investments. Secondly, announced this morning, we have initiated a process to transfer listing menu from Euronext Growth to the main exchange of Oslo Busch, with this expected to be completed this current quarter. Now insurance have reported net asset values. Aker Raizen saw an increase of DKK 3,100,000,000 from DKK 12,800,000,000 to DKK 15,900,000,000. This change was primarily driven by the increase in value of Aker Clean Hydrogen of 5,400,000,000 counteracted by the decrease in value of Aker Offshore Wind and Aker Carbon Capture of 1,600,000,000 collectively. Now taking a step back And looking at Slide 6, you can see that it's been a busy and really a remarkable 1st 10 months. One thing is share prices, but the reception amongst potential customers, partners, job applicants, business development opportunities, financing sources has been enormous. We now have over 800 people, raised over SEK 16,000,000,000 in various financing and it still feels like we're really just getting going. Now clearly It's stating the obvious that there are going to be many challenges to overcome during the energy transition: large projects, new industries, technology development, complex value chains, cost levels, need of regulatory support, etcetera, which takes me to Aker Horizons as illustrated on Slide 9. So what is Aker Horizons? Fundamentally, Aker Horizons is an investment company that is purpose driven around planet positive investing, building off of Aker Group's 180 years industrial experience, coupled with a shareholder mindset to create attractive financial returns over time. Now it's the interplay between these three where we think there's something special, starting with the purpose of wanting to do major good for the environment, having a positive, measurable net impact. Then bringing the industrial capabilities to bear to realize large complex projects globally and innovate along the value chain to ultimately reduce the levelized cost of energy. This is where the larger Aker Group really differentiates with over 30,000 people globally and a long history of developing challenging industries over a really long time. Thirdly, is what we call shareholder mindset. You can have all the good intention industrial capabilities, but if it doesn't make financial sense, if you can't generate returns, it's not going to have the impact and sustainability we all are looking for. So we've set out with this framework a clear purpose, industrial edge shareholder mindset and identified areas where we'd like to make a major impact. The first of which is decarbonization and addressing the issue at heart illustrated on Slide 10. It is estimated that 53 gigatons of greenhouse gases was emitted in 2019. Now I'll not spend time on this for the purpose of today's presentation. The need to get to net 0 is well established with tremendous momentum and an increasing amount of pledges from corporations and governments globally, with this set to only increase with the upcoming EU taxonomy and COP26, for instance. What I would like to convey here is the approach Aker Horizons is taking, as is shown on slide 11. The 53 gigatons of CO2 equivalents in 2019 is split by sector in the following way: power naturally being the largest sector at 30%, driven by the share of coal and gas fired power plants, while industries such as chemicals manufacturing and steel production accounts for 2 thirds of what the power sector is. Now there is no silver bullet. Simply transforming our energy generation to renewables in our cars to electric are great and necessary, but not enough. As illustrated on Slide 12, several levers will be needed and Aqua Horizons has positioned itself to contribute in several of these areas. You can see on the bottom of the slide the Aker Horizon related companies next to the applicable lever. Now renewable power is critical and here both Aker Off ShoreWinds and Mainstream are well positioned in their respective areas. Supernote, while still early days, looks to contribute towards improving efficiency, moving electrons with much less resistance and cost over long distances through superconducting technology. Then you have Aker Carbon Capture, positioned for CCUS and AkerClean Hydrogen, with plans to industrialize hydrogen production and solve some of the most difficult decarbonization challenges. Knut will speak more about this shortly, but it's worth mentioning that there are certain sectors where renewables alone will not be sufficient to reach net 0 and where hydrogen is necessary. Take steel for instance, where crude steel directly accounts for 2.6 gigatons of CO2 annually, equal to 5% of global greenhouse emissions. Now steel is obviously important for our societies and demand therefore continues to rise with projections to increase more than 1 third through 2,050. And the point is that green electricity will not be enough to replace steel's reliance on coal and natural gas due to fundamental heating and chemical properties. This is where clean hydrogen comes in and in this instance is a hard to bait sector contributes towards reaching net 0. Shipping is a second hard to abate industry with few alternatives for 0 emissions fuels. And you're starting to see shipping companies, engine manufacturers, so shipyard's classification societies prepare for green ammonia as a viable zero emissions fuel for long and short distance shipping. So summing up this slide, Aker Horizons is focused on several ways of contributing towards decarbonization. In terms of the model we have chosen, you can see on slide 13, illustrated what we call the Aker Horizons ecosystem. We are less focused on being a one stop shop and more focused on really fundamentally understanding the green value chains. If you look at hydrogen again, well over half of the levelized cost of hydrogen relates to energy supply, Aker Horizons through Aker Offshore Wind and Mainstream is gaining valuable insights into the entire value chain to be able to bring down cost in hydrogen production for instance. As previously announced, AkerClean Hydrogen and Mainstream are working together in Chile to ultimately produce cost effective hydrogen for domestic use and export. Another example of cross portfolio collaboration is the collaboration announced this morning between AkerClean Hydrogen and Aker Carbon Capture around Outre, and in addition to deliver a blue hydrogen facility on the West Coast of Norway. So bringing this together on slide 14 into specific ambitions and you have to have some measurable goals and that's what we've tried to do here by reiterating our goals of bringing investment levels, renewable power capacity and CO2 removed annually. While these are big goals, by delivering on the business plans of the portfolio companies, we will be able to reach them. Okay, Then turning on to a portfolio update, starting with mainstream renewable power. And I'll hand the word over to Mary Quanie, CEO. Good morning. If we could move to slide 19, please. I'm Mary Quanie Group, Chief Executive Officer of Mainstream Renewable Power. And I'm very happy to present this morning with our soon to be colleagues at Aker Horizons. This slide here is a Short reminder of what I presented in January, an overview of our history. Mainstream was founded in 2,008 by Doctor. Eddie O'Connor, renowned renewable energy entrepreneur. We are a global pure play renewable energy company. We have built a business spanning 4 platforms, Latin America, Africa, Asia Pacific and Global Offshore. Today, we employ over 340 people across 13 offices. We've developed an asset portfolio, which Today is 12.5 gigawatts of which 1.4 gigawatts are in operation and construction. Overall, we've brought 6 point 4 gigawatts of projects to financial close since 2008. And we've achieved a return of 4.4 times money for our investors. Staying on this slide, our portfolio is geographically diversified and I'll take you through that in a bit more detail later. It consists of solar PV, onshore and offshore wind. And our strong track record in the sector is very much underpinned by our end to end capabilities in house, which span the entire project lifecycle. As you can see here from this diagram on the right, In addition to the 1.4 gigawatts in operation and construction, our development portfolio has approximately 5 gigawatts of late stage development and 6 gigawatts of earlier stage development assets. Since my presentation in January, we have continued to grow to grow our development portfolio on a continuous basis. And we also have a further approximately 10 gigawatts of opportunities undergoing feasibility analysis and due diligence, which stands behind this growing development portfolio. Moving on to the next Slide please to slide 22, where you'll see that sustainability very much is at the very core of our business. Sorry, back to the sustainability slide, please. Since I last spoke with you, we have been awarded leadership status by the Carbon Disclosure Project, This time for our supply chain engagement. And we've also now achieved ISO 45,001 in Vietnam as we prepare to gear up for construction there. Just last month, we were awarded as one of the Proximo Americas Deals of the Year for the debt funding of our Jumul wind and solar portfolio in Chile. And we're very much looking forward to the publication of our 2020 Sustainability Report in June of this year. On to the next slide. Again, as Christian has mentioned, since my presentation in January, we've very much seen an acceleration in global commitments to achieve net 0. Today, every G7 country has now committed to a pathway to net 0 by 2,050. And what is Particularly significant for us at Mainstream is that these pledges don't just cover domestic energy use, but also impact on the financing of coal plant across our platforms, which is particularly relevant for some of our growth markets. And this means that we are very well positioned to take advantage of this accelerated transition to renewable energy, which really is gaining unprecedented momentum. Mainstream has built a company that has end to end capabilities in house that is very well positioned for scale and that will support rapid growth as we look to exploit these opportunities. On the next slide, I spoke earlier of our portfolio distribution by geography and by technology. We are very long established in Chile and in South Africa. We have leading positions in both markets. We have been in each market for 12 years. And this leading presence is reflected on the diagram here on the left. We have a growing pipeline in Asia, which is a key growth Market for us, and I'll talk you through that in a bit more detail in a few moments. And our technology mix that you see here on the right, the balance of Onshore wind and solar PV in particular, this is in line with our increasing focus on a hybrid approach to project development. And this is reflected in the portfolio of wind and solar assets that are currently under construction in Chile today that are carefully structured to provide a particular generation profile. On the next slide, you'll see our global presence from our established markets of Chile and South Africa. We will continue to expand our business in these markets as well as other markets in LatAm and Africa. So for example, we're developing a pipeline in Colombia. And through our Lekayla joint venture in Africa, we have projects in Senegal, in Egypt and in Ghana. In Asia Pacific, As well as developing one of the largest offshore wind farms in Southeast Asia, in Vietnam, we are developing a portfolio of wind and solar projects in the region. Offshore wind is very much a core part of our business. And as well as our projects in Vietnam, we are actively pursuing opportunities in the Americas, in Europe and Southeast Asia to add to our pipeline. Over the next slides, I'll talk you through some of our current projects and near term milestones. So here, starting with LATAM, with a particular focus on Chile, where we have 1.7 gigawatts of projects across 13 assets in operation or construction, pre construction today. Starting with our Aella platform, where we are a 40% shareholder that currently has 3 30 megawatts of wind assets fully operational. Then moving to our wholly owned Andes Renovables platform, which totals 1.4 gigawatts, which is being built out in 3 phases. The first phase is what we call the Condor portfolio. It is 570 Megawatts, a hybrid portfolio of 3 wind and 1 solar project to service distribution company US dollar 20 year PPAs. And despite the challenges of COVID, which have been seen, of course, right across the sector over the last 12 months. I'm very pleased to say that construction is progressing very well. It is on track and on budget for COD in Q3 of this year. We've managed the impact of COVID on an ongoing basis from enhanced health and safety measures on sites to extensive engagement with our supply chain to minimize delays, to regional and national government engagement to facilitate a build out of this scale in line with COVID restrictions. Similarly, the Fomalh portfolio, 630 Megawatts being 3 wind and 2 solar projects. Construction commenced on this portfolio in Q4 of last year. It also is progressing very well through construction and on track for COD in Q3 of 2022 and on budget. And since January, the 3rd and final phase of our Andes Renovables platform, the 150 Megawatt Cupuillet project is on track to reach financial close this quarter. We have recently enhanced the economics of the project. We've increased the project size up to 150 megawatts with a bilateral 15 year US dollar PPA, which has now been signed. So on to the next slide, then moving on to Africa. In South Africa, we have increased our development portfolio over recent months by a further 700 megawatts. So we now today have a total of 6.4 gigawatts of wind and solar assets, Which positions us really well for the upcoming tenders. We now have confirmation of the next renewable energy procurement round. That's round 5. It's been announced with a bid to date in Q3 of this year in August. We have a strong track record of success in South Africa from rounds 1, round 3 and round 4. And so together with our strong asset portfolio, we're very well placed for round 5 as well as to the growth in demand for bilateral PPAs. In our Lekayla joint venture, in which mainstream is a 14% shareholder, The build out of the wind farms in Senegal and in Egypt are making very good progress. They're both nearing completion. Lekayla has over 1 gigawatt of projects in construction or operating. And we, as Mainstream, we manage operations of its South African Round 3 and Round 4 assets. That's 5 projects totaling 6 10 megawatts. Moving on then to the Asia Pacific region on the next In Vietnam, in addition to our strong offshore presence with our Sock Trang and Ben Tre projects, which altogether total 1.9 gigawatts of projects that we're developing together with our partners. We've added a 3 24 Megawatt Solar PV Portfolio. So as Vietnam continues its transition from fossil fuel to renewable energy. We expect this transition to be confirmed in its National Power Development Plan 8, which we expect to be published this quarter. Our near term focus in Vietnam is on Phase 1a, so the first 200 megawatts of the Sock Chang Offshore Wind Farm. That phase is included in National Power Development Plan 7. And so our target is to bring this first phase through to financial close towards the end of this year. Elsewhere in our global offshore platform, We have one of the most experienced teams in the sector with a very strong track record in site selection and development and consenting of offshore wind. We are very actively pursuing large scale opportunities in Europe, in the Americas and Southeast Asia as we continue to add to our offshore wind portfolio. So to the next slide then to summarize our mid term company targets. As I outlined in January, we would bring a further 5.5 gigawatts of projects to financial close by the end of 2023. In addition to the 1.4 gigawatts in construction and operations today. This would then mean a total of up to 6.9 gigawatts of operational or in construction assets by the end of 2023. In terms of financial metrics, focusing on the Condor and Jumul portfolios, which are currently in construction in Chile, We forecast those portfolios to have EBITDA of US100 million dollars to US120 million dollars from 2022 from energy generation of 3.6 terawatt hours. So with that, then I'll hand you back to Christian. Okay, excellent. Thank you very much, Mary. Then moving to the next slide, please, on 28, just a few words on our ownership agenda of mainstream. In terms of priorities for Okta Horizons beyond closing the transaction, It will be about growing the pipeline organically. There's a very large pipeline also through M and A. Then there will be a program of driving synergies with the Aker Horizons Companies and wider Aker group, particularly on the digital side. We've launched a program internally in Aker Horizons appropriately called Electron together with Cognite and ACE and mainstream will be incorporated in that after closing. Then lastly, We have clearly stated that we have an addition of an IPO of mainstream on a standalone basis within 3 years. It may very well be earlier than that and we've already started preparations. So those are the priorities that we have as owners right now for mainstream. So with that update on mainstream, let's go on to AkerClean Hydrogen with CEO, Knut Niebuhlk. Thank you, Christian. During my presentation, I will touch upon ArkyClean Hydrogen Purpose mission and business model, an update on our market funnel as well as the hydrogen hubs with focus on the Agra That Christa mentioned earlier. So move on to the next slide, please. But first, let me start with why we are here in the 1st place. So AquaClean Hydrogen's purpose is to accelerate the clean energy transition to reach net 0 by solving the hardest industrial climate challenges. How are we going to do this? Well, our mission is to produce affordable clean hydrogen by leveraging our innovative and efficient solutions to bring down costs across the value chain. So let us zoom in on the how for a bit on the next slide. For us, affordable hydrogen means US1.5 dollars per kilo. And we have tangible plans for how to reach that by the end of this decade. Our ambition is to be the most efficient integrated hydrogen producer operating 5 gigawatt net capacity by 2,030. We will chase waste and efficiency gains across the entire value chain, both horizontally from energy supply to consumer as well as vertically from the plant operation and through EPC integrator down into the technology OEMs. We operate leaner and more agile than the current energy majors, while At the same time, keeping the recognized predictability and safety performance that the ARPU companies are known for. One of our competitive advantages is actually the Aker Horizons and the Aker family, which includes energy suppliers, execution specialists as well as potential hydrogen consumers. For green hydrogen, Up to 70% of the cost and even incremental savings will have significant effect on the levelized cost of hydrogen. We benefit from partnering with strong players like mainstream that you just heard about, Stadkraft that we are working with on the Harare project and other and Warang aircraft as well as others that have proven capability to provide low cost energy. And we're also focusing on the regions with the best renewable reserves. Chile is one good example of that. But facility costs from the technology provider and Key levers to significantly reduce that CapEx are scale benefit, obviously, but also the way we simplify, standardize and modernizing the solutions, enabling repeat solutions and also the use of industrial software to automate this execution process. These are all processes and experience and solutions The Aker family have fine tuned over several decades. So on my next slide, I will give a quick update on the market funnel since the IPO. We have Seeing an increase of approximately 0.9 gigawatts, mainly within the categories we define as pipeline and prospects. The increase in the pipeline category is primarily linked to new opportunities in Brazil as well as Aucara, hydrogen hub that I will come back to a bit later. The increase in the prospect category is driven by adjusted capacities for existing prospects as they are now being matured. Lastly, we have also identified interesting new segments opportunities that we will receive dedicated focus as we grow the team. However, these are not yet accounted for in this overview. So since the IPO, we have, as promised, worked on maturing the identified projects and prospects. And on the next slide, I will walk you through some examples of what we are doing. We have mobilized strong teams and dedicated teams and more than 50 persons are now working on our project and prospects. We have established or are about to establish dedicated project companies or what we call SPVs with our partners. The working relationship with Akka Solutions as the execution, the integrator and Selected technology partners are also developing well. The offtake situation is also developing. We have either agreements or letter of intent or promising discussion with consumers for all these projects and prospects. And regarding governmental support, we are well engaged with relevant regional authorities to position the project for funding or support. But let me quickly focusing on 2 of those projects, the Harve and the Balrog. At Harve, we are together with Yara and start KRAFT aiming to convert Jahnos plant from gray to green ammonia, removing 800,000 tonne of CO2 on an annual basis and installing more than 4 50 Megawatts green hydrogen capacity. So far, we have mobilized an integrated team and agreed scope and roles focused on maturing the solutions towards different phases all the way towards final investment decision. An important factor is the grid capacity of getting power into the hydro facility. And we have already initiated works with the staff to investigate that element. In parallel, We are, of course, also maturing all three parties the dialogue with authorities on support mechanism for this project. On Baerleborg, we are together with Warangenkraft aiming to decarbonize shipping and off grid power plants and save up to 100,000 ton of CO2 on an annual basis and installing around 100 Megawatt Green Hydrogen capacity and then converting that to ammonia. Together with The other value chain partners in that green ammonia value chain, GrigEdge and Lachsula, we have received letter of intent for approximately 350,000 tonne per year of ammonia, which is more than 3 times our planned production capacity. We have also signed a product agreement with Halter Topsoe for the green ammonia part and our first team ahead to conclude the concept before summer holiday. The project SPV is also established, the company is established and we have also recruited profile Chairman of the Board, Lee Monica Stubholt to Support us in driving that company forward. So let's move on to the topic of hydrogen hubs, which is the final topic I will go through today. So according to our Prime Minister, Einar Sohrberg, hubs will enable hydrogen usage across public transport, shipping routes, ferries and industries. Hubs are also key for export of hydrogen from Norway to the continent. Survey recommended 5 main hub locations for clean ammonia in Norway. And ArcoClean Hydrogen is well positioned for 4 out of these 5 hub locations. So let me then She has some examples of hydrogen hubs we are developing at the moment and also some characteristics of a hydrogen hub. So if you move to the next slide, please. So Alky Clean Hydrogen takes an active role in developing hydrogen hubs, both in Norway and nationally, as I mentioned. Here are some of the characteristics of a promising 100 and a half. You see that to the left on this screen. So first of all, of course, you need access to cost effective feedstock. That could be either green power from solar, wind or hydropower or natural gas if you are looking at blue hydrogen projects. So strong offtake opportunities, both for industrial purposes, maritime and mobility purposes is also needed. You also need to be a large scale hub, you also need access to high capacity export solutions either by ship transport, routes or pipeline to the EU or UK. And of course, it's also Important to make sure that you have opportunities to create circular economy here by using the byproducts such as CO2, oxygen and heat for other industrial purposes. It is also very positive if we have a legacy in the Akkir family of companies in that particular location. So, Avkira, as you see top right, is a new opportunity for us, complementing our portfolio alongside the Barlog and Uruguay examples. So today, I will only look at the Alkra one, but Quickly on Uruguay Hub, we are maturing that well now that Aker BioMarin has decided to switch from diesel to green ammonia for their shipping fleet, the fishing fleet operating out of Uruguay. Together with them, we also have close and good dialogue with other ship operators that use Uruguay as a fueling base. The opportunity looks promising, and we will probably come back to that at a later stage. So Moving to the Avkara opportunity on the next slide. Sorry for the rather busy slide, but Avkra Municipality and Akikli in Hydrogen have now signed an exclusive agreement to develop a large scale hub at Avkra, next door to the Nijamna gas terminal that was originally designed and built and later modified by Aker Companies. So the ARQED sorry, the ARQED has satisfied all the relevant health criteria, and we see this is a very promising opportunity even though it's still early days. So you will potentially have access to Gas from the Njallmer gas terminal next door. There are local industries and high shipping activity around Alkra that represents interesting local offtake opportunities. In addition, the gas pipeline from The potential hydrogen highway if hydrogen spiking of the natural gas is acceptable. We are also exploring this circular opportunity for local utilization of, for instance, CO2 to produce, let's say, nutrition to fish farming. And of course, by being located as it is, it is relatively easy to pick up the captured CO2 that has been liquefied and then transported to the appropriate CO2 injection terminal. The plan is to produce hydrogen at large scale and either compressed, liquefied or converted to ammonia to offer green fuel alternative for different applications. Compressed hydrogen as the low carbon alternative for natural gas towards large industrial consumers or for mix As I said, in with the natural gas for export to U. K. Liquefied hydrogen as the alternative for road transport fuel Or short haul shipping fuels like ferry transport, etcetera. And finally, ammonia as the alternative for long haul shipping and also a really effective hydrogen carrier to transport hydrogen in ammonia form to Europe for use. Another benefit of this particular hub is that new gas reserves with high off spec CO2 content, meaning that they have more CO2 than it's allowed to put into the pipeline, can be routed directly to this plant where the CO2 is separated out and clean hydrogen is mixed back into the gas transport line improving the gas quality. Together with Ankara Municipality as well as AkerClean Aker Carbon Capture and the entire Aker Horizon, we are now in dialogue with other strong partners with interest in this hub. We have also recently hired through the SunSet, the previous CEO of Gas Nova, and she will be heading this initiative from our side. So let me then try to summarize on the next slide. The strong progress We have made on the 2021 priorities really serves our 2,030 growth ambition. We have matured the market funnel. So teams are mobilized, agreements are firmed up, project companies are being established and we are progressing well. We have also identified interesting new segments that will receive dedicated focus as we grow the team. We are building a strong team. We have more than doubled the team, attracting really strong international talent with strong hydrogen variance and the working relationship with Akka Solutions and selected technology partners are developing well. And thirdly, we really drive the structured cost reductions as we promised. So the standardization program, The supply chain strategy and the digital agenda are progressing really well. So all this will secure that we are well positioned to become a significant integrated hydrogen producer. So There will be a remarkable growth in clean hydrogen for the hard debate sectors, as Kristian pointed towards earlier. We are innovating the way we work across the entire value chain to bring out efficiency and catalyze. And we have now a 1.7 gigawatts active portfolio of projects and prospects that we are maturing. And As that, we are we have solidified our vision to reach the 5 gigawatt installed capacity by 2,030. Thank you. Excellent. Thank you, Knut. So AkerClean Hydrogen is the most recent addition to the investment portfolio. And as Knut explained, the company is set up to lead the industrialization of clean hydrogen production. So on slide 38, you can see a couple of ownership agenda items. 1 of the key factors that makes us optimistic about the hydrogen economy is its ability to tackle some of the toughest industrial challenges as you've heard today, replacing emissions in sectors such as shipping and agriculture. Now there are many hydrogen companies being launched these days. We believe Aker Clean Hydrogen will have a unique competitive advantage and utilizing the Aker Horizons portfolio companies and the wider Aker family to source low cost energy, modularize, digitalize key aspect of the value chain. Costs need to and will come down and Aker Clean Hydrogen is looking to be on the right side of the cost curve as the industry develops and demand increases. So then we'll move on to Aker Offshore Wind and Aker Carbon Capture. They both had separate presentations today, but a couple words on each of them starting on slide 39. So moving on to our offshore wind, which is a pure play offshore wind developer. Its focus is on deep water assets. The company builds on Aker's 5 decades in offshore operations in project execution to take early positions in the development market for floating wind parks. The company is currently part of projects or prospects in South Korea, the United States, Norway, Scotland and now Sweden. Most of these countries have launched concrete targets to develop offshore and deepwater wind resources over the next decade. In the Q1, Aker Offshore Wind entered into a cooperation agreement with Stokkev, Europe's largest producer, renewable energy, to explore possibilities of collaboration on offshore wind power projects on the Norwegian continental shelf. In addition to maturing ongoing projects and prospects, the company is also actively pursuing new opportunities in emerging deepwater wind markets. In March, Aker Offshore Wind and Hexagon entered into a joint development agreement to explore opportunities to realize floating wind projects offshore Sweden that could generate several gigawatts of renewable power and support Sweden's goal of reaching net zero emissions. So our ownership agenda is centered on further developing key partnerships, growing the pipeline through identified projects as well as new markets and utilizing the wider Aker Group, particular Aker Solutions and capabilities offshore to drive down levelized cost of energy. So moving to Slide 40. And lastly, we have Aker Carbon Capture, which has market leading proprietary technology to deliver ready to use carbon capture plants. Fundamental drivers that support the emergence of commercial market for carbon capture, utilization and storage continued to develop favorably from the start of the year. The CO2 equita prices in Europe to reach record highs close to €50 per tonne as countries around the world, most notably in the UK and United States, launch more ambitious climate targets. These developments continue to support the case for CCS. For Aker Carbon in capture. The start up of the Brevik CCS project in January was the main highlight this quarter. In this breakthrough project, Aker Carbon Capture will deliver the world's 1st carbon capture plant at a cement facility to Norsheim, Heidelberg Cement in Bebek, Norway removing 400,000 tonnes of CO2 per year. In other developments, Aker Carbon Capture secured a series of strategically important collaboration agreements and partnerships including the MoU with Ochsted and Microsoft to support the development of CCS at biomass fired heat and power plants in Denmark. Aker Horizon's agenda is to support company's further development with a particular focus on developing business models such as Carbon Capture as a Service and expanding prioritized markets. So overall, we are very pleased with how carbon capture is developing. Okay. With that as a portfolio update, We will turn to the financial section and it is my pleasure to introduce Noma Tolofsen, who I have worked with for over 5 years and who had her first day on the job in Aker Horizons yesterday after returning from maternal leave. She will walk you through the financials starting on slide 43. So thanks, Christian, and I'm really glad to be back. So diving right into it, as Aker Horizons is an investment company, we will focus on the combined numbers of the parent and holding companies and not on the consolidated numbers. We will, however, include the consolidated numbers in the second and fourth quarters. The following numbers will reflect accounting effects from Aker Horizon's 1st trading day, which was February 1 until quarter end. And since the Q1 numbers do not include the effects of the Mainstream acquisition, we have included some slides showing pro form a numbers after the Mainstream acquisition. So we reported a net profit of approximately NOK 3,100,000,000 in the period. And this is mainly related to value changes in our shareholdings. We saw a negative change in market values, in particular for Aker Offshore Wind and Aker Carbon Capture, but this was more than offset by the introduction of Aker Clean Hydrogen, which was the main driver for the positive value change during the quarter. AquaClean Hydrogen also developed negatively after listing. But all in all, the net change in values for portfolio companies was a positive NOK 3,300,000,000 during the quarter. Cash from operating activities reflects general running costs as well as some start up costs. Investing activities include Aker Horizon's investment in AkerClean Hydrogen and Rainpower. And the proceeds from the private placement, The convertible bond and the green bond are all included in the financing activities. The total cash position is approximately NOK7.6 billion as of Q1. So jumping to Slide 45. This gives an overview of our current financing facilities and our committed credit facilities. First, let's spend a few words on the revolving credit facility. As of Q1, we had a commitment of €170,000,000 committed by 2 banks. But as we're always searching for attractive green investments, we're also looking to have flexibility when it comes to financing. Therefore, we're very pleased to have been able to increase our RCF from €170,000,000 to €400,000,000 We have also secured an accordion option, which potentially brings the total amount up to €500,000,000 We've used the opportunity to include more banks in the facility, up to a total of 8 European banks. The RCF has a duration of 3 years with 1 plus 1 year options and has a NOK 200,000,000 liquidity covenant at a 50% loan to value covenant. The RCF is currently undrawn, but we expect to draw the RCF with the closing of the mainstream transaction. In addition to the RCF, we have three sources of debt financing. We have a subordinated shareholder loan of NOK 2,000,000,000. This loan carries an interest cost of 6% with a deferral option against a 1% deferral fee. The loan matures in 2026. Also, we have a subordinated convertible loan, which was issued in connection with a private placement in February, which carries a 1.5 payment in kind interest. The conversion price for this instrument is NOK 43.75 Norwegian kroner per share and the instrument matures in 2026. Note that for accounting purposes, We recorded NOK348 1,000,000 of the convertible bond as equity and the remaining part as debt. Lastly, we have the green bond which we issued in February, where we raised NOK 2,500,000,000 with a margin of 3.25 percent. The bond matures in 2025. So moving on to the next slide. This figure illustrates liquidity reserves as of 31st March and the estimated reserves post the Mainstream acquisition. We estimate a total cash outflow in connection with closing to be around NOK 7,900,000,000. This figure includes 75 percent of the €900,000,000 acquisition price as well as the previously announced day 1 equity injection of 75 percent of €110,000,000 as well as estimated transaction costs. More than 95% of the total euro cost is now hedged. And compared to when we gave our offer in November last year, We have reduced cash outflows with almost NOK 600,000,000. And as you can see from the green bar to the right, We expect to have a solid liquidity buffer also after the mainstream transaction with more than NOK 3,700,000,000 in liquidity reserves. So the next slide illustrates net interest bearing debt. As the mainstream transaction is yet to be closed, We had net interest bearing assets of approximately NOK 2,000,000,000 as of Q1. With an expected cash outflow from the closing of NOK 7,900,000,000 we expect a pro form a net interest bearing debt of approximately NOK 5,900,000,000 after the transaction. So moving on to the final finance slide. This shows our capital structure after the mainstream transaction, where listed assets are recorded at market value and unlisted assets are recorded at book value. So as you can see, the loan to value as defined by the covenant is estimated to 12.5 percent after the mainstream transaction, which gives significant headroom to our covenant of 50%. So with that, that wraps up the financial section. And I'll hand it back to you, Christian. Okay, thank you very much. Then moving on to slide 50 and summing things up. Here. So, as mentioned, it's been a very high activity in the quarter, not only at Aker Horizons, but also across the portfolio companies. We've reached several milestones. There's been strong fundamental ESG tailwinds, although markets, Financial markets have been more volatile of late and we continue to see synergies across the Aker Horizons portfolio. Then looking forward, a key priority for us is continuing the expansion across portfolio companies, key focus being business development partnerships M and A building a renewable energy major through mainstream including the IPO of the company identifying new platforms with major impact potential and lastly driving tangible operational and business development synergies across the portfolio is a strategic priority. So with that, we will open up for Q and A. Okay. We have a few questions. The first one is going to Mary, and it's from Jomber Leysen of ABG. A couple of investors are worried about that increased competition for both solar and wind projects will bring down profitability. Do you see a pressure on profitability or and if so, is there any difference between wind and solar or amongst geographical regions? Thank you, Ivan. Thank you for the question. Paul, would you come on video, please? I'll ask you to take this one. Sure, Omeri. I'm happy to do so. So it's a really good question. I mean, it's a key factor in not just Our business, but in the business of several of our competitors. I mean, we've probably been faced with this question for a few years. And actually one of the first things we've said, particularly in the markets we serve, Being emerging markets or have served is that, reduced prices, whilst they do create additional competition and It can challenge profit margins. They also create new opportunities for us. So having a product or a clean energy product come down in price has opened up several markets for us. I think it's right to distinguish between wind and solar. I think solar on a standalone basis has become more commoditized, and I think that word has been used on a couple of occasions. I don't always agree with how it's used, but I think in the case of standalone solar, it probably, it does have some validity. So for us, The way in which we deal with this is by combining projects, so combining wind and solar, and also looking at ancillary revenues, whether that's from operating these projects on behalf of others, whether that's from, you know, providing additional services from the operating plant and trying to drive additional value through that. I think that, as a developer, You know, one of the key ways that we distinguish ourselves is to have the best products and the best projects in order to ensure that, to the extent that there is a profit margin out there in a tender, in a competitive low price tender, that we're able to keep that and keep For ourselves as opposed to having to have purchased a lot of our pipeline from other parties. Very often, not just are you paying away profits there, you're also not getting the best projects. So it's a key, it's a key challenge, and it's one that, you know, we watch very carefully. The last thing you want to do is win in an And then realize that you're doing so at a loss, it hasn't happened to us today, and I don't believe it will happen in the future. You know, we're seeing lots of opportunities, particularly in Chile. Now having an ability to base new offerings With existing generation is a real differentiator for us. And it means that you can be much more clever and creative in selling power When you've got an existing, I suppose, Bank of Generation being the Ende's renewables portfolio, so that allows us add to that portfolio by selling some additional power that might be available in the interim, and then waiting for the new projects we have to come online. And it's that type of, I suppose differentiation that allows us kind of get, I think a little bit of extra profitability versus standalone projects in auctions. Okay, great. Thank you, Paul and Mary. One question for Christian on the portfolio development in terms of potential additions to the group, where do you see Aker Horizons growing? Yes, well, now we have well established the 4 platforms today with carbon capture, Aker Offshore Winds, Mainstream and Clean Hydrogen. So there's a lot going on on those companies and key priority for us is supporting them in industrial development and also M and A within all of those companies. Then we have the Sunrise side of the portfolio with a number of early stage options. What we see very clearly is that battery technology and energy storage is an emerging interesting area for us, both from a Aker Offshore Wind and Mainstream in connection with hybrid projects, for example, but potentially also as a standalone area. Time will tell, we're spending time in that area. Secondly, we're spending time around plastic, which is a very large and growing problem. We spent a lot of time philanthropically around that topic. We're spending time to see if there's something that we can do commercially in that area, and time will tell around that. Then I would just say there's a tremendous amount of ideas both internally and externally, but also maintaining discipline on what we're spending time on. But that's what I could say at this stage. Okay, great. And one Follow-up just on that is on REC Silicon, summarizing some questions, what are the plans for REC? REC Silicon, so we're a happy owner of approximately 25% of the company. It's been a very good investment for us. The Chairman and main owner of Aker Slingerakka has gone in as Chairman of REC, so we are monitoring it very closely and think it's particularly interesting of what's going on around the potential and what I was just talking about on batteries. So that's what I can share at this stage around our plans for REC. Okay. Just one Question more for, Mary related to, or maybe for both, it's possible to give more guidance on the potential readiness for an IPO of mainstream. Maybe Christian, do you want to go for Mary? So the question in terms of timing? Yeah. Yeah. So what we have said clearly externally is 3 years within that, but we've already started preparations for that. So that's So really what we have to say about timing and we'll be coming back later. What's important for us is what I mentioned earlier developing the pipeline organically, a lot of interesting growth opportunities globally, diversifying the portfolio and then driving synergies across various soccer companies. So that's what we can say for timing on IPO. Yep. I see, those were the main questions that have that have come in and we come to the full hour since we started, Christian. Okay, that's good. A lot of information. I hope this was useful. Thank you very much for your time and we look forward to seeing you again in connection with the Q2 report on July 14. So have a great day.