Ladies and gentlemen, and welcome to Utoovo's quarterly presentation. My name is Anders Janel, Head of Investor Relations. Today's presenters are Andreas Torseim, CEO Lars Eklund, CFO and Cecile Weltz, CEO of IDEA. Today's agenda. 1st, Andreas will walk through the quarterly highlights and business updates before Lars will present the financial results.
Then Cecile will present Edea's first half results before Andreas will provide an outlook for 2021. If you have questions during the presentation, please share them in the chat and we will answer them towards the end. I will now give the word
to Andreas. Thank you for
the introduction, Anders. So let's start with reiterating what Atobo is. Ottobwa is a marketplace for solar installations. We're on a mission to put solar panels on every home in Europe, Including batteries. And we want to do this by creating the easiest and most affordable way to get solar panels on your roof.
To the consumer, we're an easy e commerce experience. Consumers will put in their address on their local Otovo site. Our software will identify the building and will do what a person does on-site in order to create A project description and match that project with the lowest bid from a local installer available in the area. We're making buying solar panels as easy as buying a pair of shirt or a shirt or a pair of shoes online. We're on the path of building Europe's leading residential solar company.
We have installers who cover an area from the north of Scandinavia to the south of Spain, from the east of Poland To the West of France. And this is a green energy play that is happening now. We put solar panels on roofs In every country, every day. The demand for solar energy In households is fueled by rising energy prices. This quarter, we've seen headlines in all the countries in which we're present About electricity and gas prices increasing.
And one of the main drivers behind this is in addition To a warm summer season that creates demand for energy, an overall increase in the European CO2 Price that has lifted wholesale electricity prices and that feeds through to consumers. We now see That solar energy is getting more and more attractive compared to traditional electricity sources. Let's dive into this quarter's specifics. So this quarter, we're proud to say that we're delivering on our growth plan, And we're moving up our entry into Germany. So first, the growth plan.
Our revenue is up By 51 percent to SEK 64,000,000. The number of projects sold is up 148 Percent to 1183 units and the pipeline value, the number the value of the projects we're taking into the next quarter It's up 152 percent year over year to NOK 103 1,000,000. Our gross profit is up 49% year over year to NOK10,300,000 And we maintain margin at 16.1%, which we're also very happy with. This is also the occasion to give an update on our leasing product and we're happy to say that we've deployed 31 1,000,000 kronor out of this quarter and the leasing share of new sales is about 25% And we're seeing an increase in this number go into the second half of the year. As a growth company, it's important that we add new capabilities And we're constantly adding product capabilities, marketing capabilities and new countries.
So In this quarter, we see attachment rates of batteries at 35%, well ahead of our internal expectations in the pilot in Italy. We're adding new partnerships and that's important in order to lower our long term customer acquisition costs and we're going to launch in Germany before the end of the year. So our sales are up 2.5 times from 2020 And we're now selling at the sales pace of more than 5,000 installations per year and that puts us in the top league of solar Players in Europe. The sales are up 150% in terms of units from 477 to 1183 in this quarter and that comes from a significant increase In all markets, all markets in which we've been present in more than 12 months are seeing at least 2x Sales growth. And then we're adding Italy and Poland, our most recent launches, and they're doing really well.
They're on track To replicate the successful launch we had in Spain last year, very happy with that and the outlook here In order to fuel continued growth in sales, we need to attract customers And partnerships is an important factor there. Partnerships are important for us to have profitable Growth and partnerships broaden our proprietary customer acquisition channels and increase brand awareness. To us, it's a way to drive down customer acquisition cost in the medium and long term. And for the partners, it's a way to Expand their product offering with solar panels and storage to their customers using our platform. And we're we now have about 40 partnerships that cover electric equipment, Electricity Providers, Building Companies and Government Agencies, and we'll be looking to add more partnerships in the quarters to come.
We're also upgrading our standard setup for panels. In the last 12 months, we've upgraded our standard panels Power by 21%, our premium panel by 13% and the highest performing Panel, the performance panel is up 7% and this provides the consumer with an improved product. They can have a more powerful system on their roof and that's a big benefit. We've also added batteries and Italy was the first country in which we put Batteries on offer. A little reminder, Italy is a country we launched at about Easter this year And we're off to a really good start on battery attachment rates.
More than a third of customers who come to the atovo. It site Now check out with a battery. Why is this important? Well, it's because, of course, it makes the system more useful to the consumer. But to us, it's also a way of increasing the ticket size and increasing the gross profit from each sale, because It doesn't cost more to get the customer who buys 2 things than a customer who buys one thing and we have similar gross margins On the battery products, so it's highly beneficial to our medium and long term profitability.
We are running a platform of installers. And during this quarter, we've added 81 installer companies, Mostly in Italy and Poland. And we now have 430 installer companies on the platform. That means that Already now at the halfway mark, we're ahead of our internal target of 400 installers on the platform by year And the addition of installers, of course, improves our geographical coverage, but it also improves the competitive pressures on the platform That are essential in order to create competitive prices to consumers. In the solar industry, There are some headwinds in terms of the supply chains and that's getting quite a lot of attention.
And we've also noticed Turmoil in international freight, in the availability of microchips, in the availability and price of PV modules. And so it's with quite a bit of pride that we can say that our cost levels are down compared to last year Even amid this period of global supply chain turmoil, the overall cost for a system in Scandinavia is down 9% and in 15% compared to last year, with hardware and soft cost both nicely down in at these markets. And then for an announcement, a piece of news we've been looking forward to And it's adding Germany to our country map. Germany is a large, Highly attractive market. It's the solar market in Europe with the best long term prospects.
It's a market that currently installs Solar panels on rooftops with a total value of about €1,800,000,000 per year. Germans put 150,000 systems up on roofs every year and these are quite large valuable systems That often includes batteries. So it's a big price in this market and It's expected to keep growing from its current levels. We will meet competition and there are some Great companies in Germany that we'll be facing off against, but the German market is still quite fragmented and we have a strong belief in our model, Its ability to drive growth at acceptable marketing levels and having a product that is Priced attractively to consumers, we think that's a growth formula that has served us well in new markets before And we think we can repeat that going into Germany. The launch plan here is to have Germany launched before the end of the year.
I'll leave you to Lars.
Thank you, Anders. So looking at the key financials, Revenue is up by 51% since last year, driven by strong growth in Spain, France and Poland. We end the quarter at SEK 64,200,000, which is in the high end of our guidance from 1st quarter. The gross profit is up by 49% to 10,300,000, while the gross margin is stable from last year. We have new countries keep diluting the gross margin overall, but Still we're up by 1 percentage point from last quarter.
On the EBITDA, we're up by SEK 2,400,000 since last quarter. We continue to invest in growth And we have a solid cash position of SEK 256,000,000 at the end of the quarter. Looking at the pipeline and when we talk about the pipeline, those are projects that are sold but not yet installed. The pipeline is up by 152% since last year and 57% since 1st quarter this year. We end the quarter with a pipeline of NOK 103,000,000, which is a record Pipeline for us.
Bearing in mind that it's summer season in Europe, we expect And then we've included a slide on our ESG GE metrics, which we're very proud of. We have more assets and higher yielding installations that lead to More removal of CO2 and replacement of fossil fuels in the energy grid. So we have 7 megawatt peak installed so far this year compared to 5.7 megawatt last year. The energy output of these installations is Higher than last year. And that leads us over the lifetime of these installations to a CO2 removal of 74,000 tons of CO2.
I'll leave the word now to Cecilia to talk about Edea?
Thank you, Lars. European distributed energy assets was Established last year to finance OTOVO's leasing offering. The company raised €155,000,000 in equity and secured an Initial Debt Facility with Nordea. OTOVO now holds 18.75 percent of IDEA And the 2 companies have a strong partnership with an exclusivity for operations in the 1st 3 years. IDEA is the asset owning company.
So, IDEA buys assets, namely solar installations, from Otoogo and receive cash flows from homeowners on 20 year leasing contracts. In addition, IDEA buys services from OTovo such as billing, collections, customer contact, maintenance and service of these assets And that is paid for by a recurring fee from IDEA to Ottovo. The end customer enters into a leasing contract With IDEA and the customer interface is handled by Atogo. We introduced leasing because it enables more people to go solar. The typical solar installation is about €5,000 to €10,000 depending on whether you're in Spain or in Scandinavia, But that's a significant investment for any household.
And the typical solar customer was previously those with a strong household economy. Now, by removing the financial hurdle, we're able to address a totally new customer segment of those with a normal household economy. And the customer value proposition of Leasing is strong. We offer customers predictable green power without any upfront investments. That's 0 money down.
In addition, customers save money from day 1, so the monthly leasing is cheaper than electricity from the grid in most of our markets. Leasing is more than just a financing option. It's convenience. And most solar buyers are first time buyers and might find that a bit risky. Leasing is worry free and it gives customers green power with the Atovo guarantee for 20 years and its predictable electricity bills for 20 years.
We now have Leasing Live in 5 European markets, Spain, Norway, Sweden, France and most recently Poland, which we launched in Q2, and we're already seeing strong customer testimonials coming in. On the right hand side of this slide, we show the customer business case, and this is a Spanish customer that used to have an electricity bill of €130 a month. That bill is reduced to €50 a month with Solar Leasing. You get the additional leasing costs of €56 and free up €24 a month. We will be looking to launch leasing in all of the markets that the Tohvo enters and next market up will be Germany.
We're building a subscription business, and there are 4 success criteria to that type of business. You want low churn. IDEA delivers close to 0% so far. Price up mechanism: All of our leasing contracts have a CPI adjustment annually. Growth?
Atovo delivers leasing assets to DS balance sheets every day from across Europe, and new markets are just around the corner. And once you've locked in your customer, you want to make the most out of that customer relationship with the new hardware, and we're looking to launch leasing of batteries during this year. EDI is set up to generate significant free cash flows. The most important thing now is to generate deployment, and we've just gotten started. So we've deployed roughly 30,000,000 kroner Since initiation, and our ambition is to reach a portfolio and total investment of NOK 1,000,000,000 by the end of 2024.
20% of that deployment will come just from maintaining our current deployment speed of NOK 15,000,000 per quarter. 60% of that will come from Otoovo continuing on its 2021 growth trajectory and maintaining the current leasing share of 25%. If we addition to that, assume that Atovo is able to increase that leasing share from 25% to 35% in the planning period, We'll reach a total of NOK 1,000,000,000 deployed by the end of 2024. And that is the portfolio that generates a net yield significantly above the financing cost, And the structure is set up with limited overheads. So, we aim to deliver a 10% return on equity annually, And that is assuming a 50% debt in a structure.
If we're able to increase that increased leverage, reduce Funding terms and potentially increased deployment earlier, either through accelerated OTOV growth or New partnerships or portfolio purchases that will have a positive impact on returns. We've grown our customer base 3 times to above 500 customers and we're now seeing that the The portfolio we have of NOK 31,000,000 deployed will generate an annual recurring revenue of NOK 3,000,000 for the next 3 months 12 months. To summarize, we've proven that the customer value proposition of solar leasing is strong. We're building a subscription business that is solid And that offer customers predictable green power without any upfront investment, in addition to generating stable cash flows On 20 year contracts to our investors. Now it's all about volume, and we're set up to deliver strong deployment growth in the following years.
I now hand back to Andreas.
And that concludes now I'm going to have to do this one over. So what's the outlook for the rest of the year? Well, I think the headlines are we're delivering on growth and Germany is next up. The pipeline that we have and the sales that we're delivering We are on track to reach the full year revenue guidance of €29,000,000 and that is underpinned by Our new countries, Italy and Poland, that are launching on par with the successful entry into Spain a year ago. Spain and France are now big contributors to our growth in Q2 and Scandinavia has rebounded strongly in sale And that means that we're it's looking good for Q3 and Q4.
Now the uncertainty lies in our installation In new countries, we are not currently certain about how the European summer season will impact our ability to deliver projects In the upcoming quarter, so there is some installation in security there, But all our sales will of course eventually be installed. Our gross margin targets remain Above 18% as exit speed from 2021. And we expect leasing share of sales to continue growing. We have confidence in our ability to take market share in Europe. We're growing in existing markets.
We're entering new markets successfully and we're moving up our launch into Germany. And so until next time, I'll say Auf Wiedersehen and take some questions.
Thank you, Andreas. Now over to the Q and A. Could you please elaborate on how the margin on battery sales compares with PV Systems?
Yes. So our view there is that we can take the same margin percentage of the ticket The battery ticket as we're doing on the solar ticket. So that means you can Quite linearly, just take the same gross margin percentage of a bigger ticket that you did on a smaller one. Now the net contribution of those projects will be Higher since the marketing cost in order to get the customer who buys 2 things is the same as one who is buying one thing. So, so its net contribution will be stronger, while the gross margin will be equivalent at the higher ticket.
Thank you. Could you give us some more insight on your M and A strategy? Will you enter markets via M and A, for instance, in Germany?
So I think our main plan is to enter countries organically. We're Extremely fast, right? I think we launched in Italy in April, we launched in Poland at the start of the year. And they're already contributors to the P and L. So I think it's extremely fast and we get And that works well for us.
So organic is our main method, But we're open for M and A and we'll be scouting opportunities in our current markets and in markets that we still haven't entered. We believe there is opportunity for M and A in the short and medium term.
Thanks. Do you expect additional revenue from projects sold during Q3 on top Of the NOK 75,000,000 to NOK 80,000,000 from the incoming pipeline or is this already included in the guidance?
It's already included in the guidance. So the way we talk about this is the deliveries inside the quarter will come partly from sales the previous quarter And partly from sales intra quarter. And so the true development of the pipeline is that A little bit more than 25% will flow over to Q4, but there will also be intra quarter sales. So don't add numbers on top of our guidance because the guidance is what we're expecting to install both from pipeline and from intra quarter Sales. But then of course the sales in the quarter that don't get installed in Q3 will become an additional pipeline for Q4.
And these numbers will take some getting used to because there's a big difference in the Polish market, for example, installations are extremely quick. There's little paperwork related to solar installations in Poland, so we can typically install in a month. And then you'll have Spain where installation times can be 4 months on average and certain regions of Spain have even longer waiting times. So the delivery times are quite sensitive to which countries are growing the most.
Thanks. Now moving to questions on Edea for Cecilia. Why is not Italy the next market for leasing launch?
In Italy, we're developing Solar leasing as a product and it's completely new, so no one has done that before. That is taking some time. We want to ensure that our customers will receive the very favorable In Germany, this is already a product that is available and that's why we see that the runway or the lead time to actually Being able to provide this product in the market is shorter.
Thanks. Is idea financed equity wise to reach
We have ample room to grow, but we will need to raise more equity funds in order to reach the NOK 1,000,000,000 And total deployment.
Thank you. And that concludes the Q and A. Thank you very much, everyone. Have a great summer.