Good morning, and welcome to Otovo's Third Quarter Presentation. We are Otovo, Europe's leading solar and battery marketplace. We are on the mission to put solar panels on every roof and batteries in every home in Europe in the easiest and most affordable way. Today's presenters are Andreas Thorsheim, CEO and founder, Petter Ulset, CFO. My name is Sondre, and I work with Investor Relations. On top of today's agenda is a business update from Andreas, followed by a financial summary given by Petter, and after that, Andreas will summarize. At the end of today's session, we'll do a Q&A, so please don't forget to submit your questions during the presentation. Now, over to you, Andreas, with the business update.
Thank you, Sondre. Let me say we're very excited about the numbers we're going to present here today because this has been a breakthrough quarter for our subscription business and a quarter where we've set a whole host of new records. Let's look at the headline numbers. First, Revenue Generated coming in at NOK 235 million, up 170% from the same period last year. Gross Profit Generated is NOK 53 million, up 290%, and the Accumulated Contracted Subscription Revenue comes in at NOK 227 million, up 230%. We've set records both in terms of installations and sold units.
We installed 1,970 units, up 80% compared to last year, and the average ticket size of those units is also significantly up, ending the quarter at NOK 109,000 average, up 38% from last year. The systems we've sold and are awaiting installation in Q4, Q1, and some into Q2 number 2,740. That's up almost 90%, and the ticket size in this sold portfolio is NOK 132,000, up almost 50%. Now, this means that we're developing at an installation pace of about 8,000 per year and a sales pace of 11,000 per year, and that higher sales pace is indicative of our belief in our ability to install higher numbers in the late autumn and winter that is coming up.
As to the business health metrics, we see a continued upward trend in the ticket size. Customers are continuing to buy bigger and more expensive systems. This is driven notably by increased battery attachment rates. Italy and Germany keep charging ahead on this front, but we're also seeing that new countries that are coming in will do so above the group average so far and will be contributing positively to the battery percentage. In terms of our ability to extract margins in this environment, the trend is quite clear for all countries. We're up to the right, and margins are increasing in nearly all markets. As for subscriptions, this has been a breakthrough quarter,
More than a third of customers have chosen the subscription no money down product this quarter, significantly up from the autumn of last year, where 24% chose a leasing in Q3 of last year, and we were down at 17% for Q4, and we're now moving our way upwards on a bigger base number. Notably, we sold subscription contracts worth NOK 150 million in this quarter alone, 4.4x up from last year. The value of this subscription portfolio keeps increasing. We added about NOK 60 million to the accumulated contracted subscription revenue, bringing it to NOK 227 million, a significant step change from where we've been performing over recent quarters and indicative of our ability to deploy leasing assets at scale. Otovo is a company that is...
is a company that is taking a multi-country approach to the European competition, and we believe that we will be the continental leader of residential solar in years to come. Our approach is one where we enter new countries in six steps. First, we establish the webpage and the legal foundations of the company. Then we recruit installers. We start selling to consumers. We install the projects that we have sold. We turn unit economics positive, and then we do enough volumes to be EBITDA positive. Now let's look at how that has been developing over the last few quarters. Taking a snapshot from December of last year, we were present in seven countries just after having launched in Germany in December.
Into Q1, we moved Norway across the profitability line and Germany into positive unit economics territory in its first quarter or full quarter of operation. In Q2, we added Portugal, Austria, and the U.K. to our roster of webpages as more countries crossed over into positive EBITDA territory. Now, in Q3, Netherlands, Switzerland, and Belgium have been announced, and we're progressing towards launching those countries and selling our first units there by the end of the year. At the same time, we're progressing, moving more countries towards the right in this matrix and, of course, we plan to fill this matrix with only green boxes. This is what gives Otovo a pan-European foothold and positions the company for continental domination of the residential solar sector.
Now, these are turbulent times, and that affects households, it affects governments, and it affects businesses. We're in an environment where interest rates are up, inflation is up, energy prices are up, and the geopolitical stability is significantly down. For society, this is bad news, but Otovo's model is anti-fragile and robust and able to withstand these pressures quite well. Overall, we see an increased need for solar energy to replace gas imports that have been hampering Europe's energy independence. We see European politicians, both at EU level and in the individual governments, supporting solar and a host of new policies that will take effect during this autumn and increasingly during 2023, that will add stimulus to an already strong European solar market.
Consumers' demand for PV as a cost-saving product is up, and we see that solar investments remain high in households, despite purchasing power being eroded. This is a sensible purchase to be making at difficult times. We've seen consumer confidence in the grid's ability to deliver low and stable prices completely shattered. Consumers are flocking to residential solar and the subscription product in order to hedge against future price shocks, in order to insure themselves against the worst of a volatile energy market. We believe that trend will continue even in an environment where energy prices at some point will probably come down. The inflationary environment affects our incoming cost, but it also affects the product that our consumers are comparing against, energy cost from the grid.
Now, if we compare to where prices of hardware and labor were a year ago, hardware costs are up in nine out of 10 of our countries, and the labor cost of installation is up in nine out of 10 of our countries. That means the incoming cost of the winning bids on the platform are pretty uniformly up. We would be making more per project even only holding margins at the same percentage level. On top of that, we're increasing the percentage markup in 10 out of 10 countries compared to last year. What that means is that the ticket prices are up and our take rate of that ticket is up more than the ticket, which is, of course, a big explanation of our improved Gross Profit Generated.
illustrates our ability to withstand a high inflation environment. That is also valid for the subscription portfolio. Petter Ulset will take you through that in a little moment. Now let me just end off with reiterating our strategic priorities and illustrating where we could be going, as we succeed in more and more of these elements. Our priority for us over some time has been to scale. We sold twice as many projects in 2021 as we did in 2020. We're doing it again in 2022 compared to last year, and we remain confident in our ability to be growing at more than 100% going into 2023 and 2024. We do so by entering new markets, but also by gaining market share in all the existing markets.
We're confident in our ability to remain on the trajectory to reach 90,000 sales in 2025. Increasingly, we're adding more hardware types than solar panels and inverters to those installations. Back in March of last year, we had still not sold a single battery, but in its first year of sales, batteries has been a resounding success. We sell batteries to more than a quarter of our customers and more than three-quarters of our customers in Germany and Italy, and we'll see those numbers increase both in absolute term and percentage terms going forward. What this means is that the ticket size will increase as we add more hardware types and batteries first.
We see potential in adding EV chargers, heat pumps, energy management technology, et cetera, as this installer ecosystem of ours delivers more and more units. You've seen that this quarter is a breakthrough quarter for us in subscriptions. The subscription deployment growth, both with Otovo's general growth and by our ability to sell more subscriptions as a percentage of that business. This, of course, helps the profit per customer as the subscription contracts are worth about 2x as much to us as a direct cash purchase.
This gives us confidence in our ability to create more of these contracts. Now on the financing side of this, we're confident in our ability to develop financial structures for the SPV that can keep us going at an increasing pace of subscription sales. We will build a bigger and bigger portfolio of long-term consumer contracts carrying distributed energy assets all across Europe. What can you do with that? Well, in 2023, we'll be putting thousands and thousands of batteries into the European grid. With that, we're increasingly operating a fleet of batteries that could provide flexibility and response services to grid owners. That represents a tremendous monetizable value that peers in California, Germany and the U.K. are increasingly able to monetize.
We will now be developing our contracts and our technology in order to be able to operate such a virtual power plant. That represents a significant potential in terms of fleet management and added monetization of the assets that we're putting into the grid to harness in years to come. With that, I'll leave the word to Petter to go through our financials.
Turning over to our reported financials. Our operating revenues doubled to NOK 179 million in the quarter, while our cost of goods sold increased slightly less due to an increase in our gross margins. OpEx more than doubled as we have launched several new markets in the latest quarters, and we also have a fair value adjustment for Italian tax credits. Depreciation increased 3x , and this is due to the inclusion of the subscription SPV in our reported financials. In our reported financials, our subscription segment is reflected with the total annual payments in operating revenues and with the increase in cost of goods sold in our fixed assets. Hence, we believe that the underlying performance and value creation from the subscription segment is not fully reflected in our reported financials. Let's look into that. First, let's reiterate our business model.
In the direct purchase model, which is the classical Otovo model, we sell a system to a consumer, here with an indication price of NOK 135, and we buy that system on a turnkey model from our installer for a price of NOK 100. The revenue recognition and the cost recognition in this example is quite straightforward. However, we also increasingly sell on a subscription model. Here, we sell the system to the consumer on a different model, while we buy the system on a turnkey model from the installer. The physical model is the same. However, we enter into a 20-year subscription contract with the consumer, where they pay a total of 240 installments. This is done by the consumer contracting with our subscription SPV, which buys the system from Otovo as the originator.
Hence, we have introduced what we call key metrics to reflect the underlying profitability and value creation from the subscription customers. Revenue recognition in the direct purchase segment is straightforward. Revenue is the price that the consumer pays to us, while gross profit is the difference between the revenue and what we pay to the installer. When we then turn to the subscription segment, our Contracted Subscription Revenue is the discounted sum of payments over the full lifetime of the consumer, assuming a 2% inflation and 5% discount rate. Our Gross Subscription Profit then subtracts from this revenue the payment to the installer, as well as an adjustment for O&M cost. The sum of all contracted subscription revenues is the Accumulated Contracted Subscription Revenue. This can be seen to reflect the gross asset value from the subscription segment. Summing that up, Revenue Generated for...
Revenue Generated for the Otovo Group is the sum of revenue from the direct purchase segment and the Contracted Subscription Revenue from the subscription segment. Gross Profit Generated is in the same way the gross profit from the direct purchase segment and the Gross Subscription Profit from the subscription segment. Lastly, the Accumulated Contracted Subscription Revenue is the gross assets and is reflected in the subscription segment. Turning to the key metrics, we in the third quarter had NOK 175 million in revenue from the direct purchase segment and NOK 61 million in Contracted Subscription Revenue from the subscription segment. Looking at Gross Profit Generated, the Gross Profit Generated from the direct purchase segment was 34.2. That is a margin of 19.6%.
While the Gross Profit Generated from the subscription segment was NOK 18.4, which is a Gross Profit Generated of 30.3%. If you add those up, the total Gross Profit Generated is NOK 52.6, which is a margin of 22.4%. Turning over to the subscription segment. Total subscribers increased by 175% year-over-year to a total of 2,144 customers. Out of those customers, we have Accumulated Contracted Subscription Revenue, which we view it to be our gross assets of NOK 227 million at the end of the quarter. The annual recurring revenue coming from those customers is NOK 15.6 million.
This reflects that we are selling larger systems at higher prices, and it also reflects that all existing customers have been priced up with the increase in inflation for their given market. As Andreas mentioned, we are in an unstable current macro environment in Europe. Interest rates are up, inflation is up, energy prices are up, while geopolitical stability is reduced. How does that impact us and our subscription portfolio? The attractiveness of solar is up despite the fact that the market is experiencing increased costs. The economics of solar is improved, and we are selling higher ticket sizes than before, and we're selling that at even higher margins. The attractiveness of subscriptions for the consumer is also up.
We have for the subscription segment, zero money down for the consumer, which is more favorable when availability of credit is reduced and the economic outlook is more uncertain. We also believe that the attractiveness for investors remains high. Our portfolio is inflation adjusted and means that the payment curve permanently shifts up with inflation, never down, and we'll get back to that. Additionally, when interest rates increase, we will price up new subscriptions that will come in on even higher yields. Now let's look into the value of the subscription portfolio. You could see that to be a function of the number of subscription customers times the recurring payments from those customers, times the relationship between inflation and the prevailing discount rates.
When we then look into a single contract and we think how would inflation then impact that contract, in our numbers, we have assumed a 2% inflation. Should that inflation instead be higher, in this example, 7%, the payment curve is permanently shifted upwards. If you sum the payments under the dotted line, that would be approximately NOK 300, and if you then sum the payments under the new line, that would be NOK 315, meaning a net increase of NOK 15 in payments from that customer. If you think of the portfolio and show the sensitivity to the discount rates in the horizontal axis and inflation in the vertical axis. We have our standard example with a 2% inflation rate and a 5% discount rate in the center.
If you follow the center up to the two corners, you would see that the value of the portfolio will remain flat if you increase the discount rate by 1% and inflation by 1%. Now turning over to profitability. EBITDA generated continues to improve. In the third quarter, we had the EBITDA generated of NOK 51 million, which is an EBITDA generated margin of 22%. This is an improvement from the previous quarter and also a substantial improvement to the level seen earlier this year. In EBITDA generated, we have non-recurring items primarily related to country launches and growth-related costs, and also a fair value adjustment of Italian tax credits of NOK 13.6 million. In addition, we also have non-cash costs related to our share-based compensation program of NOK 8.7 million.
Now, if you look at the sales which we did in the third quarter, they are profitable on a EBITDA generated level. Here you see at the bottom in the orange line, the gross profit generated per project sold. That continues to go up as we price up, margin goes up, and we sell more projects on a subscription model. In addition, you see that the OpEx per project sold, which is the blue line on the top, goes down. It goes down with operational leverage, despite the fact that we have launched six new markets in this period.
If you then zoom in on the right-hand side here, you will see that the gross profit generated was, per project sold, 41 in the third quarter, while the cost for that project was 38, meaning we had a profit of three per project sold. Zooming into this effect and remembering that we are growing at a tremendous pace. There are two ways of accounting between the difference of time of sale and time of installation. If we take the cost at the time of sale, the EBITDA loss will be cut in half. If we take the projects that we currently sold in the third quarter, that will bring us to a profit of seven. Now turning over to our cash position. We started the quarter with NOK 330 million of cash.
Cash flow from operating activities contracted NOK 34 million in the quarter. Underlying cash EBITDA was - 50. We improved our working capital of 26 million, and then non-operating working capital increased with 10 million. Cash flow from investing activities increased 50. That was explained by equity paid in for Holu of 5 million, capitalized R&D, which is software development of 7 million, and we also invested 38 million in subscription assets. Cash flow from financing activities was 48 million, which is primarily that we have drawn on the debt that we have with Nordea in the quarter. If you adjust for FX, that brings the cash at the end of the quarter at NOK 291 million. There are two important priorities for the fourth quarter. First, refinancing of our subscription SPV.
We went into a year with an undrawn facility of NOK 50 million with Nordea. During the year, we have drawn on that facility, and we have increased it with NOK 100 million to a total of NOK 150 million. Additionally, as communicated on our Q2 results, we have launched a process that will refinance the SPV during the year. Here we have started dialogues with both Nordic and international lenders, and we have also achieved a Green Financing Framework with CICERO that has been given a dark green rating. The response from lenders is quite good, and we expect, as I mentioned, to complete this in the fourth quarter. Our key objective is to increase the leverage ratio towards the levels which we have seen both with our continental and American peers.
The second priority is the sale of Italian tax credits. As we mentioned on our Q2 presentation, this market stopped before summer as parties were awaiting election results and also passing of certain rules of transferability. The elections have been held, and the rules have been implemented, and the market has now reopened. We have signed agreements with two leading Italian banks for a sale of a total of EUR 9 million, and we have done the first sale. This will be done in several tranches, and we got the funds from the first tranche early in Q4.
All right, let me round off with the pipeline, our outlook, and a summary before we take some questions. Now, this pipeline is record strong. It's worth almost NOK 800 million being made up of more than NOK 500 million in direct contracts and almost NOK 300 million in subscription contracts to be delivered in the quarters to come. This pipeline has the strongest ticket sizes we've ever seen, almost NOK 150,000, and it has the highest subscription percentage and the highest battery percentage we've ever had in the portfolio. Almost 1,500 projects in the pipeline are subscription projects, and 1,275 of them are battery projects.
We have good visibility on Q4 and into the beginning of next year, and that means we are relaxed and comfortable about our ability to reach our half-year target of NOK 500 million in revenue generated, implying that we will generate revenue of NOK 265 million in Q4 of this year. In terms of the outlook for Q4 and 2023, we've seen one of the big worries that we've had increasingly easing into Q4 and the year ahead. Labor was holding us back significantly in Q1 and has remained somewhat of a source of friction during the year, but we don't see that worsening even as things pick up speed when hardware loosens going forward.
The panel situation has been improving during Q3 and is now not a source of friction to us or the industry as a whole. In terms of inverters and batteries, that's really been the handbrake on this industry in 2022. Q1 was difficult, Q2 was pitch black, and going into Q3, the situation remained the same and has been hampering us in this quarter. Dialogues we have with wholesalers and industry players indicate that this situation will be easing during Q4 and into Q1 of next year, which means that overall, the brakes put on this industry will come off in the year ahead. Keep in mind also that the market we're seeing now is two forces playing with it. It's the increased demand from energy prices, and it's the friction from hardware.
Policy is not part of this right now. The stimulus from solar-friendly policies in the member states in the EU have not yet taken effect. That is something that we will see in 2033, and be a source of dry powder for this industry in the future. In terms of what this means for the outlook, our summary is that we're seeing easing frictions in the supply chain taking effect in Q4 and increasingly during 2023, and we are confident in our ability to maintain 100%+ growth rate in coming years, implying that the first half of next year would come in at NOK 660 million in Revenue Generated. Where does this leave us for the quarter? It's been a quarter of records.
Record sales, record installations, record revenue generated, and even bigger records in gross profit generated. It's been a breakthrough quarter for our subscription business. We sold subscription contracts worth more than NOK 150 million in the quarter, and that's a leading indicator of our ability to deploy in the subscription business in 2023, a big milestone for us and for our profitability. It's also been a good quarter for our European expansion. We are increasingly taking shape as the residential solar leader of Europe. We've sold projects in Portugal, the U.K., and Austria. We've announced our entry to the Netherlands, Belgium, and Switzerland, and we're now setting up our websites and recruiting installers in those countries, being on track for selling in 13 European countries by the end of the year.
Withstanding the bad news hitting the industry and society as a whole with high inflation and high interest rates, both in our old leasing contracts and subscription contracts being marked up with inflation, our future subscription contracts being marked up in anticipation of higher interest rates, and our current direct sales being marked up with more than labor and hardware cost increases. We are very robust in this climate. The thing that has been holding the industry back is friction in the supply chain. That is easing. The outlook is more rosy for Q4 and quarters to come due to this. This looks a lot better than it has in quite a while. Where this leaves us is that the outlook is strong.
We're reiterating our guidance for Q4, and we believe that we have an increased ability to grow at 100% or more into 2023, implying NOK 660 million in revenue in the first half of next year. Thank you for listening. With that said, we'll open up for some questions. Thank you. Now we are having questions pouring in. The first question is what is the expected timeline on the uplisting? Are you going to raise money? I'll leave that one to you, Petter.
Thank you. We announced in February the intention to uplist within 12 months. That timeline remains firm. We are on track, and we will uplist at the board's discretion. Regarding the question about raising capital, we raised money in February to finance the launch of new markets. Those launches are on time and on budget, so we see no need to raise capital for that purpose, and we have flexibility within the financial framework.
Second question is, what is the IRR for new subscription assets? Are you pricing to protect EBITDA versus inflation?
We saw in the third quarter that IRR for installed subscription assets was 12.6%.
11.6%.
11%, sorry. 11.6%. We are, of course, also seeing the interest rates, and we are pricing up to protect EBITDA. In page 45 of the presentation, you can see an indicative example on how that is for sold volumes, where we see that the IRR is approximately 100 basis points higher.
Your guidance on first half 2023 looks low versus the amount of projects in the pipeline/backlog. Please explain. Well, on that one, we can say that since listing on the Euronext Growth in February 2021, we've set and met expectations to grow at least 100% on a yearly basis every quarter. Looking into the future for Q4 and the first half of next year, that is the rhythm that we're guiding on. Of course, we set guidance that we expect to meet and beat. There was a target for share of subscribers at 50%. When are you expecting to see these numbers?
That is a target that we have not communicated a deadline for, but it's a number that everyone internally here at Otovo knows everything about and several people have it in their targets for next year. It's something we're working towards. The progress has been fantastic from the 17% in Q4 of last year to 35% now. Progress is strong and we're seeing that progress pretty much across the board. Next question is. If you look at the next 6 to 12 months, what is the one thing that will keep you awake at night? Financing, installer capacity, hardware, or other?
Well, I think on that the answer would be that it's, I'm feeling the weight of responsibility at addressing the tremendous opportunity that lies ahead of us. The situation we're facing is one where a lot of things are playing to our advantage now. We have a fantastic team of general managers in place in the countries that we're operating in. We're growing the installer network. We're able to withstand the macroeconomic pressures and also to utilize the tremendous demand that we're seeing coming from consumers that are you know fed up with high energy prices that are looking to hedge and insure against future price shocks. It's a wonderfully recession-proof product.
We're very happy with that. I'd say the one thing that worries me is to not grasp the opportunity. Have you met the timeline for the mentioned VPP heat pumps and EV chargers? Well, the way we think about this is that discipline pays off. We're a management that likes to do a few things well rather than many things poorly. We said no to batteries for a very long time knowing that that was a potential, you know, big hit as a product, but we were afraid of throwing complexity into our machinery. As of March last year, we had still not sold a single battery. We started selling in April.
That was NOK 100 million of revenue in year one, even if most countries hadn't had the product on the roster before a few months into those that first year. It's been a great success for us. We'll keep pounding the battery market. We believe we can keep growing at that. We will be deploying thousands of batteries into mainly the Italian and German grids next year. That is a main focus for us together with the subscriptions. Now, what this will lead to given some time during next year is that increasingly we'll be the owners and operators of thousands of batteries in European grids.
With that great power comes a great responsibility to monetize that because, you know, if you think of what 5,000 batteries is, if they have an average power of 7 kW, that means you're putting 35 MW into the grid that you can use in the fast frequency response or capacity markets, and that is valuable to grid operators. Much more valuable by the kWh than wholesale energy markets, and that is a value that can be shared between the subscribers and us. This is not something that's acute.
It's something that we're carving out in contracts on subscription going into next year so that we can own and operate some of the kilowatts and kilowatt hours that the consumers have at home and is an opportunity that we'll start grasping during 2023. As for other hardware types, we're monitoring that on a month-by-month basis, and we'll put more hardware in when we believe that the system of installers can handle the added complexity that more products would mean. Are there any particular countries driving the increase in leasing share? Yes, all countries are driving the leasing share as I briefly touched upon earlier. Leasing percentage is up in all our markets.
Scandinavia particularly strong but also nice trend upwards in Poland and Spain. The great absentee is of course Italy. That's been a very strong market for us, and it's unfortunate that we cannot sell leasing there yet. Hopefully we can unleash that product and combine it with subsidies and the tax credits there in the medium future and that would also keep improving the leasing share. A six-month lead time from sales to installations was communicated in Q1 2022. How long is it now? What is your outlook for lead times going forward?
Well, lead times vary from being just a few weeks in Poland to more than these six months in Eastern Norway and parts of Germany. There's quite a lot of variance in this. A way to look at the lead times is to take the pipeline of slightly more than 5,000 systems and the installation speed in Q3 of about 2,000. That means you need two and a half quarters to empty the pipeline. That's assuming that Q4 and Q1 are going at the same speed as Q3. That means, you know, seven and a half months. Now are we expecting to grow faster than that?
Yes, we expect to go at an increasing speed on installations in Q4, Q1, and particularly Q2, which is a step-up quarter in this industry. I think we're selling what we confidently believe we can install in an acceptable time frame for the individual country's consumers. Are you planning to enter additional countries next year? We see no immediate need to do more therein. We are now at the end of this year present in 13 European countries. That means we have a continental footprint as the first residential player in Europe.
We're very well positioned to replicate the successes of our peers in the U.S. and we will be able to address about 90% of households that install solar in 2023. That is a sufficient footprint to meet our growth targets for 2023 and 2024. We're not excluding the possibility that we'd enter, you know, Denmark or Ireland, for example, from neighboring countries. It's something that will be a less eventful affair than these six country launches that we've done in 2022. The illustration in your presentation for direct purchase says that COGS at NOK 100, you'll sell for NOK 135. This number used to be NOK 125.
Are you confident that your margins have increased given the change in the illustration? I'll leave that to the CFO.
Yeah. I think the answer is yes. During the year, we have constantly been pricing up and increasing margins across all countries. We see the 135 to be a more true picture of the margins that we observe across the portfolio.
What do you think sales would be without supply chain bottlenecks? Well, they would be higher. We've been holding back sales in a way, because we moved from an optimization where the amount of sales was the point at which the marginal customer acquisition cost equals our gross margin.
Now in this energy crisis environment, the demand curve, or rather the customer acquisition curve is completely flat. Which means that we don't see any limit to how much you can sell in the short term. The optimization is for you sell what you think you can install within an acceptable timeframe. Now that number of installations that is possible in a short timeframe has been restrained by the throughput of systems. I don't think we've done the math on exactly how much more we could sell, but there was opportunity left on the table by the fact that the inverters were in short supply during Q2 and Q3. All right. There seems to be no further questions.
Thank you for listening and thank you for your interest in solar energy and Otovo in particular.