Good morning, ladies and gentlemen.
Good morning.
Pleasure to welcome you at the Photon Energy Group earnings call for the first half and second quarter financial results for 2026. We will be guiding you through the presentation today jointly with Stanislav Zeman, our CFO. We will be following the usual format. We will present you the business results of the most important segments. Stanislav will run you through the financial results.
Then, of course, we will spend some time discussing the group restructuring and in particular also the debt bond restructuring, which is on the way. There will be space for your questions that we will try to answer as well as we can. Starting with the business results in the segment, which is the main driver of our EBITDA, which is electricity generation. As you can see, our portfolio has remained unchanged essentially over the last five quarters.
We have a total installed capacity of 134.7 MW peak, of which the Czech and the Slovak portfolio are vintage 2009 to 2011 and are selling electricity based on feed-in tariffs. Then we have slightly over 50 MW in Hungary. Again, the vast majority is selling on the basis of feed-in tariff or feed-in tariff type support schemes, and about 30% of the portfolio is selling electricity into the day-ahead market, so following a merchant scheme. Then we have over 50 MW in Romania, where all power plants are selling into the day-ahead market, with the exception of our last power plant that is waiting for its license to be issued. Făget 3, a 7 MW power plant where we are currently selling electricity through an offtake scheme with the Romanian TSO, Transelectrica.
The energy generation result for the second quarter saw a 10% increase year-on-year to over 55 GWh, which was due, on one hand, to good weather in the second quarter, but also more of our Romanian power plants being finally connected and generating revenues as compared to the same quarter in 2025. After the end of the second quarter during the month of July, Săhăteni, which is one of our two largest power plants in Romania, in the case of Săhăteni, it's 7.1 MW peak.
The license was obtained in mid-July, and the power plant started operations selling into the Romanian day-ahead market on the 3rd of August. We are currently waiting, as mentioned before, I mentioned Făget 3, which is 7.5 MW peak installed capacity. We're finalizing a testing procedure, which is the last document we need to file for the license. This should be finalized in the next one or two weeks until the end of August, and then we will file for the license, which, however, will lead to a shutdown of the power plant of about 45-50 days until we obtain a license and are able to commence operations based on that license, which means start selling into the day-ahead market.
There we have a little bit control over timing, so as we are generating revenues through this offtake scheme, we're waiting for the right moment to still maximize the revenues from this power plant between now and the end of the year. In terms of the increase in generated volumes, this 10% overall was more tilted to the power plants that are working on the merchant model and that disparity is simply explained by the fact that in the second quarter of 2025, some of the power plants were not operating at all.
This is why the growth in overall generation was more pronounced in the merchant part of our portfolio. As you can see, in terms of overall volume, the biggest market was Hungary, followed by Romania. Again, Romania, because not all power plants were fully operational during the second quarter. Looking at the revenues, we have seen in the second quarter a very healthy increase in revenues of 20.5%, which means outstripping the growth in volume.
The main driver here has been an increase in the day-ahead prices or the market prices of electricity in the second quarter compared to the same period last year. Here, the drivers where we've also seen fewer negative hours in the second quarter, and the heat wave that swept through Europe and Central Europe in the second half of June has been a main driver. We've also seen higher prices in the months before, second half of April, and then also during May. This has led to a pronounced increase in our revenues on top or outstripping the volume increase. If you look at the revenues by market model, here our revenues of course, are still extremely strongly tilted towards the part of the portfolio that is receiving its revenues based on the feed-in tariff.
Here the main driver, of course, is our Czech portfolio, where we are generating well over EUR 600 per megawatt hour, compared to about EUR 120 in Hungary, based on the feed-in tariffs, and around EUR 250, 60 in Slovakia. Of course, market prices on the merchant portfolio side are significantly lower. However, you can see that the merchant section of our portfolio has grown in terms of revenue contribution in the second quarter very strongly.
You can see that the realized average prices, and here, of course, Romania and Hungary are the most important ones, but there we are exposed to market prices. You can see that the prices have been higher than in the same period last year. In terms of EBITDA contribution, you can also see that this increase in revenues has translated almost one-to-one into a significant increase.
The EBITDA contribution from the investments or energy generation segment grew from EUR 6.3 million last year to almost EUR 7.9 million. Overall, we can say that the combination of more of our power plants finally being operational in Romania, good weather conditions, but also higher prices have led to this stronger contribution of this segment to our overall numbers.
In the third quarter, we have seen a continuation of the trend of high energy prices compared to last year, and in particular now during the months of August, again driven by hot weather, low water levels in rivers and the partial or in some cases complete shutdown of nuclear power plants. But also coal fire generation keeps prices at elevated levels. August, particularly in our target markets, Hungary and Romania tends to have among the highest prices in the season.
This, of course, is now significantly more pronounced. You may be aware that in Romania, they had to now completely shut down the Cernavoda nuclear power plant, the only nuclear power plant in the country, and also in Hungary, Paks, the single nuclear power plant in Hungary has had to reduce its production from the maximum or the normal level of 2 GW to around 480 MW is what Paks is contributing actually as we speak.
This has been partially or to a very large degree, offset by solar generation, particularly in Hungary. But in the morning and evening hours, the gaps that have been exposed in the consumption profile or the supply profile, has been filled either by imports from other countries or now an increased level of generation from fossil fuel power plants and a significant element there is gas.
This is something we are seeing, of course, now across Europe and in other countries where the situation has led to the reduction of conventional power plants, mostly nuclear. It also leads to another topic, which is now becoming more and more obvious and being covered in the news, and that is that Europe, at this point in time, is very significantly behind the curve in replenishing its gas reserves for the heating season. In Germany, for example, Germany today stands at 50%. Last year, at the end of September, Germany had 76%, which is kind of the target level set by the EU. As things stand today, Germany will have troubles getting to even 60% by the official start of the heating season, which is the 1st of October. Gas supplies from our point of view, will remain tense.
Driven by the geopolitical situation, the closure of Hormuz. On that basis, our view is that we will see strong electricity prices during the winter season and those expected then to feed into the next year. Coming back to the third quarter so far, what we've observed now in the second quarter, that means higher prices compared to last year, we also see now in the third quarter and expect a similar scenario for the remainder of the year and the beginning of next.
Moving on to our next segment, which is technology trading, so the distribution of components. Here you can see that in terms of volumes, we have had a very strong second quarter, mostly driven by an increase in modules, but also batteries. Invert, the volumes have come down although their margin is so low that they've never significantly contributed to the profitability.
In terms of revenues, you can see that we've been able to increase our revenues by over 50%, 56% exactly to almost EUR 10 million. The EBITDA contribution has been reduced year-on-year. However, that is driven by the sale of some very old stock that we've had in our inventories, which now we've been able to largely sell off. We see continued strong demand and, of course, this dynamic in energy prices, we believe will continue fueling this business. The growth in modules has, to a very large degree, been driven by very strong demand from Ukraine, which is a market we are focusing on quite strongly. But in this business, we're also serving customers in other core solar markets, in Europe. That would include Germany, Austria, Balkans, Poland, but also Romania.
It's a very international business, but our additional focus on Ukraine has been a major driver in this business volume and financial growth, and we see continued strong demand from this market as, particularly now, again, the winter season is approaching. There's a lot of projects and significant demand for distributed generation, but also energy storage. So, revenues, very healthy growth, EBITDA down. However, I think to a one-off. The summer months has been now a little bit quieter, but for the rest of Q3, but in particular Q4, we see very strong potential and expect, for the full year, a significant increase in the revenue, but also EBITDA contribution to the group compared to 2025. Wrong direction. Another important business line for us, which we keep reiterating, is the operations and maintenance segment.
In this area, we take care of our own power plants, but, as you can see, are serving a growing asset base for third-party customers. We are the only solar O&M provider that covers the entire CEE region, with Poland, Czech Republic, Slovakia, Hungary, and Romania being our five core markets. You can see that year-on-year, we have been able to increase the contracted asset base by almost 25%. Now over 90% of the contracted volume comes from external customers and only 10%. So the 134.7 mentioned before are group internal.
A very important milestone for us has been the signing of an asset management contract for what we believe to be the first major battery energy system, connected to the grid in the region, which is a 100 MW battery, where we're taking care of it as an asset manager. Not from a technical O&M point of view, but as an asset manager for one of our already existing clients, for whom we have been providing for several years now, solar O&M in Poland and asset management for PVs in the Hungarian market.
This 100 MW connected in Hungary is a major milestone for us, and this is a service line that means asset management for both PV, but now more and more the batteries, is, for us, an extremely important growth vector going forward for our business. Financially, you can see that revenues, and here the most important message is these revenues are group external, so they do not include, also like EBITDA, we are presenting here the group external revenues and EBITDA. Year on year, you can see that the increase in revenues has been more or less in line with the growth in asset volumes.
We have grown our EBITDA to EUR 1.37 million in the second quarter, compared to the same period last year. The negative EBITDA has been reduced from EUR 366,000 to EUR 125,000. But again, I am coming back to what I said before. These numbers are group external. If we included the revenues from our proprietary portfolio, then actually the contributed EBITDA of the O&M segment for the second quarter would have been a EUR +543,000. Another way of looking at this is that essentially this EBITDA loss of EUR 125,000 is the cost of operating our portfolio, which in reality is much higher. The format is we exclude group internal revenues, and with the cost base more or less unchanged, because most of the costs in O&M are fixed and therefore we have the still negative result.
But once we look at the entire revenue base of this business line, then it is already very profitable and contributing strongly to the group. The next segment is New Energy, which is under restructuring, and partial wind down. As you are aware, we have had to file for bankruptcy for our Polish subsidiary, Photon Energy Trading PL, which on one hand was a strong player in the Polish capacity market, and this is also where the reason emanated why we had to take the step.
But we also held an energy trading license and were actually growing our offtake business from renewable sources quite nicely at the time when we had to file for bankruptcy. This electricity trading part of our business unfortunately is also lost. But nevertheless, until the court. W e filed for the bankruptcy at the end of March. However, we continue operating the business as best as we can, until the court decides on our bankruptcy petition. In June, the court appointed a supervisor who in all likelihood will also be appointed as the administrator.
With all the steps we are taking now, and the business is conducted under the supervision of this court supervisor. But nevertheless, the business continues, and we are providing the services to PSE at some point, and it is very difficult to have an exact timing. Our expectation is towards the end of September, something between the end of September and end of October, we realistically expect the court to decide on the bankruptcy, and that would be the moment when we really lose control and also deconsolidate this entity from our financial results.
The other significant business that we have in the New Energy segment is Photon Energy Trading, Hungary, which holds an energy trading license in Hungary and the Czech Republic. The main market is Hungary, where we offtake and sell electricity from our own power plants, third-party assets, both wind and solar, and we are supplying SME customers with electricity. Looking at the business segment as a whole, you can see that year-on-year, we have managed to grow revenues from EUR 4.5 million to EUR 6.6 million, so by almost half. We have also been able, compared to last year, to actually swing into a profit. Last year, in the second quarter, we lost almost EUR 1 million and in the second quarter this year, the New Energy segment actually has a small but still positive contribution to our financial results.
In the engineering segment, which covers the EPC services for utility scale, but also for behind the meter, this is a segment that is currently under restructuring. Here, of course, the loss of our Australian engineering business, which was involved in a lot of behind the meter projects, but also in last year in New Zealand, we built the 20.7 MW power plant in Pukenui for a customer.
These businesses have been wound down or in the process of being wound down. Now the action is here in Europe, and we are currently restructuring this, how we offer EPC services, both for utility scale and behind the meter, also in the context of energy storage being more and more of an integral element of the vast majority of projects that we are in discussions of getting involved in as an EPC contractor.
Going forward, of course, we expect this business line to provide a more positive contribution, significantly more positive than what we have had in the second quarter. The restructuring is ongoing, and we do expect a turnaround and positive contribution in the remainder of the year. At this point, I am handing over to Stanislav to walk you through the financial results very briefly.
Okay. Thank you, Georg. Regarding financial results, as you can see on the slide, the consolidated revenues reach EUR 28.3 million in Q2 2026, which is representing a 10.4% year-on-year increase. Especially revenues from the sale of electricity amounted to EUR 9.8 million, up to 20.5% year-on-year. Other revenues amount of EUR 18.5 million, up to 5.7% year-on-year. On the cost side, expenses for raw materials and consumables increased to EUR 15.4 million.
As you can see, it is +28.1% year-on-year. I would like to underline three points. The first is that the personal expenses amounted roughly EUR 2.9 million. It is -27.7% year-on-year. What does it mean? It is a result of lower headcount, which went down from 307 full-time equal to Q2 2025 to 198 in Q2 2026. It is -35.4% year-on-year. Other operation expenses amounted in EUR 3.5 million, down by 47.6% year-on-year. Why?
Because it is a result of business downscaling, cost-cutting initiatives, a strict budget control. Very important number is EBITDA, because EBITDA amounted to EUR 5.7 million in Q2 2026 compared with EUR 2.8 million in Q2 2025, more than doubled year-on-year. Net loss of EUR 0.3 million in Q2 2026 compared to a net loss of EUR 3.2 million in Q2 2025, reflecting a significant year-on-year improvement in profitability.
The total comprehensive income was EUR 0.9 million, compared to a total comprehensive loss of EUR 2.7 million in Q2 2025. Regarding balance sheet. The total fixed assets amounted to EUR 225.5 million, compared to EUR 224.8 million at the end of 2025. As you can see, current assets declined to EUR 46.8 million, compared to EUR 47.1 million at year-end 2025. Equity of EUR 51.7 million compared to level of EUR 53.3 million recorded at year-end 2025 due to the negative results booked in the period.
The adjusted equity ratio stood at 23.2%, compared to 23.8% at year-end 2025. Regarding long-term liabilities, remain stable at EUR 169.9 million compared to EUR 169.6 million at year-end 2025. The current liabilities amounted to EUR 46.7 million, decreased by EUR 2.1 million compared to year-end 2025, balance of EUR 48.8 million. This is the main numbers from balance sheet and cash flow. Operating cash flow, as you can see on this slide, is EUR 5.9 million compared to EUR 8.2 million in a comparable period last year.
The operating cash flow, despite negative profit, was supported by adjustment related to the depreciation, net finance costs and changes in working capital. Investment cash flow was neutral at zero million, reflecting the group's disciplined capital allocation approach and restructuring strategy. Financial cash flow amounted to EUR -5.2 million as a result of repayment of debt and scheduled interest payment. Net cash position stood at EUR 2.4 million. Total liquid assets amounted to EUR 8.8 million.
Okay. Thank you very much.
Thank you.
As you can see, the restructuring efforts are really showing in our results. There has been a very significant headcount reduction. Two years ago, we were closer at the level of 400 full-time equivalent. At the moment we are basically at half the level. There has been a really significant retrenchment. Of course, it is still not the end of the road in terms of our cost reductions. As you can see, we also have business lines that are growing. I think in the personnel side, we do not expect any material changes anymore or as dramatic as they were over the last 12 months. But of course, on other expenses, we still see some areas to further reduce our costs and trim back our cost base in line with our continuing business.
The priorities are to complete the work related to the liquidation of our Australian business. As you know, we had to put three entities into voluntary administration and then ultimately into liquidation. But we also have some other remaining assets and activities, which we are also in the process of winding down. In some cases, we are talking to certain buyers or possible buyers. We are completing the assets transfer of the Yadnarie project to AGL. This is actually still ongoing as it is an asset deal, but the transfer itself is now already imminent. The main part of our sales proceeds from this project will only materialize in 2027 when AGL makes its final investment decision to proceed with this project and build it.
This is a process we are not directly involved in, but it is our understanding that all systems are go and both AGL and RayGen, the technology provider, are proceeding in this direction. This trigger for our final payment of over AUD 4 million , we expect at this point in time, or based on the information we can interpret, sometime maybe the third quarter of next year. Then we have, of course, we also need to finish the process around the bankruptcy proceedings of Photon Energy Trading. I already elaborated on that before.
Sometime at the beginning of the fourth quarter, we expect that the court will decide and control, and therefore also all the support that we still have to give in terms of accounting and finance and legal that we have to give to this entity, will then move into the hands of the administrator, which will also relieve us from both workload, but also costs that we are still incurring. I touched upon the reduction in headcount. You can see that this reduction has already year-on-year shown a significant difference in the second quarter compared to the same period last year. This reduction in headcount also continues in the third quarter to some extent, but as I said before, we are now reaching a level which we actually need to sustain and grow our business in those areas that are profitable and have growth potential going forward.
Of course, other operating costs have also been the target, and again, we keep squeezing. We have driven down our office costs wherever it was possible, but also in areas like marketing, non-essential travel, third-party services provided, and administrative costs. So , we keep working on this very intensively and we are aiming for additional significant cost reduction. Wherever we can, we are actually renegotiating and re-tendering to get to the lowest possible cost base. A very important element for us, and this we have already elaborated on in our previous calls and our other communication, is to monetize our asset base in Romania. That asset base is a combination of ready-to-build projects but also operating power plants. So here we have one ongoing process for two of our operating power plants and a significant part of our ready-to-build projects.
That transaction is ongoing, waiting for regulatory approval, which we expect before the end of August, and the potential closing before the end of September. We are in discussions with other potential buyers for some of the other assets that we have in the Romanian market. Of course, one very significant strategic priority is to complete a restructuring process with the bondholders of our Euro Green Bond, which we have initiated by sending out an invitation at the end of July, an invitation to vote. So, we have initiated a bondholder meeting, which proposes several resolutions. One very important one is the appointment of a joint representative to represent the bondholders throughout the entire process of the restructuring. This is something that German bondholders, according to German law, are entitled to, and they could also appoint it themselves.
They are entitled to appoint a bondholder representative, which then becomes the main gateway for us for communication with the bondholders. We will also be asking the bondholders to provide us with a temporary waiver for the in relation to the publication of our 2025 annual report and audited results, which we had to postpone now ultimately until the end of September.
That waiver would provide us relief on an interest rate step-up that we have in our bond condition of 1%, if we fail to adhere to our reporting obligations in time. The third important element is that we are proposing and seeking the approval of bondholders to approve one of the terms and conditions that also presents a covenant. That is the amendment of the formula for the calculation of the adjusted equity ratio, which is a covenant for the bond.
Where at the moment, we have a so-called regulatory carve-out. There is a provision that if the adjusted equity ratio drops below the 25% stipulated in the bond, when it drops below 25% as a result of regulatory changes, then an adjustment can be made, and a drop below 25% linked to such regulatory events provides relief and does not trigger the early termination provisions of the prospectus. This regulatory carve-out at the moment has been linked to our PV generation assets. It is specifically aimed at PV assets that we have in our portfolio. When this bond was issued in 2021, of course, we already had experience with regulatory changes related to our solar assets in the Czech Republic, Slovakia, and other markets. This is why this carve-out was phrased like this when preparing the prospectus.
However, our business in the meantime has expanded, has changed, particularly after the acquisition of Lerta S.A. We got into other segments of the energy market. Actually, the issues we ran into in Poland in relation to the Polish capacity market are also related to regulatory changes. We are asking bondholders to expand the definition or rather the scope of this regulatory carve-out. We have also committed to commission an independent business review, which is, in a restructuring situation like ours, common practice.
We have committed to appointing a provider to prepare an independent business review by the end of August. This is something that we will be informing the market about shortly. The goal of this independent business review is to provide bondholders with an independent assessment of the group's financial position at this stage, but also the business prospects and strategic possibilities and alternatives going forward.
This document and its conclusions then provide the basis for the next steps, which is a discussion and analysis and negotiation about any restructuring of the financial instrument itself, which is our Green Bond issued in 2021. The current outstanding volume is EUR 78.8 million. This bond has some institutional investors, but also a very broad retail investor base. The bond is relatively widely held.
Of course, one of the very important principles for us, we believe everybody involved, is that all bondholders are treated fairly in this restructuring process. As you are aware, we have not been in a position to pay the coupons due on the 23rd of February and on the 23rd of May, and we have also informed bondholders that we would not be able to pay the coupon that is to be due on the 23rd of August.
These coupons are deferred and will be subject to the overall restructuring solution that we will be seeking in this process. However, we are working very hard to get back into a position to resume the payment of coupons going forward. At this point in time, next to the restructuring measures we are taking, the monetization of our non-core assets, primarily our assets in Romania, are the most important tasks that we are pursuing to increase our liquidity situation so we can resume the payment of coupons.
Thank you very much for your attention, and I can see that there are several questions that we will try to address. Of course, please feel free to add more questions. I will go by the questions that came in. The first question is that according to the H1 report, the company is repaying its bank loans. On the other hand, it has suspended interest payments on its bonds. Why is this particular group of bondholders on the debt side being discriminated against in this way?
Well, the financial debt in our group is at different levels. At the level of Photon Energy N.V., the parent company, we have essentially two financial debts. One is a EUR 5 million financing line provided by EBRD, and the Green Bond, which is a non-secured instrument. The remainder of our financial debt is further down in our structure, and the vast majority of that is actually linked to projects. It means these are project financings, where the principle is that the power plants that are financed by banks are owned by project companies. Their own activity is to own and operate those power plants, and they are used as security to the financing bank.
The financing bank finances that project company or has financed in the past, and that project company, from the revenues generated by selling electricity, then repays those loans according to the agreed schedule in a project financing setup. On the other hand, this financing is non-recourse, which means that if there is a problem with the specific projects, we, as the equity sponsors, the owner of the equity, are not obliged to support or to inject.
We are not liable for that debt. So essentially, once the power plant is up and running and financed in this way, things run pretty much on autopilot as long as the sun shines, and so we can make sure that the power plants actually generate electricity and therefore revenues. So, there is an agreed-upon repayment schedule, consisting of course, interest payments and the repayment of debt, most cases in an amortized schedule.
We, as the equity sponsor, can extract funds in the form of dividends or interest on shareholder loans or in sometimes other mechanisms, either once or in some cases, at multiple points during the year. But what comes first at the project level is the repayment of the bonds. So what you see in terms of repayments to banks in this financial statement, but also others, this is all project financing-related payments. The financing is of a different nature, and of course, it is a very unfortunate situation that we have come into at the holding level in relation to the Green Bond, that we have not been able to pay the coupon for the reasons that we have already explained today and also previously.
As you can see, we are working very hard to come back to a position where we can resume the payments, but also during this restructuring process to come to a solution that is beneficial for all parties involved and that, of course, means the bondholders. The next question is whether the RayGen investment is valuable and whether an exit is possible. Well, the company's further development very strongly hinges on the Yadnarie project that we developed and sold to AGL, which is also an investor in RayGen. This project is very important as it is a very important signal for the global bankability of this technology. So, this project is ongoing. The company, as far as we know, is considering an additional capital increase. The support from existing shareholders seems to be strong.
Of course, we are not in a position to participate in any additional capital raising, but we also see that the pipeline of projects globally across the markets where the sun conditions are sufficiently strong is growing. We see new counterparties, new investors showing interest in this technology. It is, of course, a long path to bring to market and commercialize a technology that requires a project specifically for the technology we developed beforehand. This is something we have gone through, but we do see encouraging signs. So yes, we do see value, others see value as well. An exit, the original thought was that there would be an exit in relation to the entire company, but in our situation, we are looking at ways how to potentially exit before any such corporate event for RayGen itself.
All I can say at this point is we are seeking ways how to potentially proceed with that. It is, of course, one of those assets in our balance sheet that in itself is not contributing to revenues or EBITDA, and of course, the proceeds from the sale of our stake in RayGen would be helpful. So it's something we're working on. If there's any tangible result, we will, of course, inform the market.
The next question is whether the proposed measures regarding the bonds have been discussed in advance with major bondholders, and specifically, the next question is what is the EBRD's position on this, for example. Of course, as you can imagine, we are being approached by many bondholders from the largest to some smaller ones, and we are trying to communicate this as much as we can, but as best as we can.
But we can also not divulge information what we're discussing with very specific bondholders. We are aware that EBRD is the largest bondholder. I think this is public knowledge. Of course, they're not staying silent, so yes, communications are going on with multiple bondholders. The next question is please explain the conflict of interest between the equity and debt sides of the balance sheet. Well, I know there's a lot of scenarios for this. I think there's very long lectures and thick books written about the conflict between equity and debt. I think our understanding, and here I also speak a little bit as a shareholder in the company. One of the key sentences I remember from my finance classes is that when you indebt a company, you have essentially sold the company and retained a call option.
This is essentially the situation we are in today as shareholders in the company. All I can say is that on behalf, I would say, of all shareholders, our goal is to get the company back from the bondholders or from the debtors. In that, for me personally, I don't see a conflict. I think when that happens, that means if we find ways how to repay the debt, maybe on different terms and different timelines, then everyone will be happy. This is, I would say, the approach we're taking. So yes, I think there's a lot of scenarios, but all we can do now and what we're doing now is to bring the company back on track, solve the issues that have unfortunately coincided, three very big areas.
Resize the company, focus on what is profitable, and of course, in parallel, solve the situation in relation to the bond. Overall, find a way how to bring the company back on track to the eventual satisfaction of all the stakeholders. Of course, at the moment in time, bondholders are a very important stakeholder group. In this process, I believe that we will, from my point of view, we are sitting in the same boat and we need to find the best way how to get to safe shore. This is essentially the spirit in which we are working. This is how I come to the office every morning, if that helps. It is a significant task. However, I believe we have already made certain restructuring steps that are pointing in the right direction.
We hope that the numbers we have just published are at least a first, if only small, but still a light that we are moving in the right direction. Of course, it is clear we need to reconfirm that in the next quarters. We need to come to a workable solution with the bondholders in this restructuring process so that a few quarters from now, we will be in a much better place. The next question is, what about the debt to equity swap? All I can say is that, of course, in this restructuring process, this is one out of many scenarios. In any case, if that were part of it would be just part of a much wider solution. Of course, we are not in this process of discussions yet, and therefore I do not comment.
We have a next question, the quarter report has an overdraft of EUR 4.95 million that has matured at the end of September. All I can say is that the solution to this is still in discussions with the financing bank. Next question is about the new owner of our former Photon Corporate Services. All I can say is that this is an independent third-party investor who bought actually two entities from us. A holding company that had the subsidiary, Photon Corporate Services. All I can say is that we are in the process of moving still that company providing some services to us. We have moved a significant part of the employees into the group, but there are some services that are still being provided. That is all I can say at this point.
The next question is, why bondholders are not being given the opportunity to put forward their own candidate as a joint representative? The bondholders, according to German law, have the possibility to put forward their own candidate, or candidates, as long as they find a bondholder to support them. If they buy the bonds themselves, they can put themselves forward. This is something that this possibility exists. There is a time window where such proposals can be made and be put for vote. I think all I can say at this point is that we have given due care to make sure that the candidate put forward, and here it is very important to say that this is not our candidate. The joint representative is by law purely beholden to the bondholders. He is responsible towards them.
He represents them, and his role is to make sure that their rights are protected, and for us it's basically a joint point of contact. All we are doing here is, as the issuer called the bondholder meeting, we are essentially providing the venue, and we have put the vote of this candidate. According to German law, bondholders or a qualifying percentage of the nominal of the outstanding bond. So, bondholders holding such a, I think it's 10% or 5%, can call a bondholder meeting at any point in time and can put the election of a bondholder representative on the agenda, without the involvement of us as the issuer. Here, of course, we also had other reasons to call the bondholder meeting.
This is something that has been, of course, logically put on the agenda, and all I can say is that due care has been given to find a candidate that has the highest possible chance to receive the support from the bondholders that will participate or are likely to participate in the bondholder meeting. There were discussions with several people providing the service, and this has come out as the one where we have the best reason to believe that there's a high chance that the vote will be positive.
Our interest, of course, was to have such a bondholder representative appointed by the bondholder meeting as quickly as possible and also that the way that the bondholder meeting is organized, as it is not a physical meeting, but even then, there is no room for, let's say, a two-stage process. Either the candidate will get or if there was multiple candidates, one of them gets over 50% approval. Or basically at this point there would have to be a separate and another bondholder meeting, which again takes a lot of time, effort, and cost to set up.
Yes, due care was given to select a candidate that has the chance to get the necessary support and therefore start working as quickly as possible. The next question is, when exactly will the Green Bonus stop being paid out in the Czech Republic? How is the company prepared for the possibility of losing 50% of its revenue? The feed-in tariff, the Green Bonus is just one of the two options, is running out of the 20 years of the grid connection of the respective power plant.
In the case of our Czech portfolio, we have one power plant with 0.8 MW peak that we connected in the fourth quarter of 2009. So, there it'll be at the end of 2029. For the remaining 14.2 MW, they're connected in the third and the fourth quarter of 2010. Correspondingly, that's at exactly the same date, 20 years later in 2030. That's when the support, the feed-in tariff, will cease. Yes, your analysis is correct that once this feed-in tariff, which has and will for the remainder continue being a significant driver of our EBITDA in particular, comes to an end, there will be a drop in revenues from our Czech portfolio.
Overall picture, of course, we are working on developing other business lines and I think, this is maybe a good moment to say, we are obviously at a point where we are not in a position to execute any major CapEx. We are not going to develop any more solar projects or invest projects in Europe. We are not going to build any more power plants. It was also seen that our investment cash flow in the second quarter was zero. Our CapEx going forward will be mostly maintenance CapEx. If it's an expansion CapEx, then it would be a car and other equipment for a technician in O&M business that is growing. So very minor CapEx numbers going forward.
Our focus from here onward is mainly services that are CapEx light or capital light, where however, we see still very significant growth potential, and that of course includes O&M. I mentioned asset management of PV, but now more and more BESS. There are other areas that we see in this business line, where we can provide services as cybersecurity, for example, is becoming a topic.
So, there we see significant growth potential, and it is a business line that has very positive operating leverage dynamics that as it grows, the profitability growth is much faster than the revenue growth. So we are in all five markets, either at or already above the break-even point, and any growth from now on will have a significant imprint on our overall financials. We see still very good potential in the technology business, so the component distribution, we are revamping the EPC business.
That also will have to and will contribute more in the next couple of years, and if managed properly, it also can be run with tight working capital. So, definitely our future is CapEx light, so very much geared towards services. I'm afraid to mention Photon Water, where again, the growth there will not require any significant investments, neither in terms of development nor in terms of working capital. So these are the business lines we want to push, and then of course use the excess cash flow or the free cash flow that we will be able to generate to, well, first of course, service the debt. That's clear, but also to reduce our financial leverage in the next quarters and years.
This reduction, the end of the feed-in tariff, of course, in such a, let's say, five, six, seven-year outlook is a kink downwards, and from now the race is on to develop the other business lines so that they compensate for that cliff, for that part of our business that will occur in 2030. Well, this was the last question that we've seen here, so if there are any more questions, please come forward. Happy to answer.
Okay, then on that basis, thank you very much for your attention and for participating in this earnings call. Particularly in relation to the restructuring, there will be multiple announcements or the frequency of announcements over the next weeks and months will increase. In case of any questions, please reach out to, particularly also through the process, please reach out to our investors relations department.
We are looking forward to our next call three months from now, where we believe we will be. We are working very hard to confirm what has now been, I think, a positive uptick in the second quarter and to show you that we are back heading into the right direction. Thank you very much, and I wish you all a great remainder of the day. Thank you for your attention. Bye-bye .