Good morning, and welcome to Capsol's financial update for Q2 2026. My name is Jakob Trøan Gjervall, SVP Investment and Strategy at Capsol.

Today's presenters are CEO Wendy Lam and CFO Bjørn Kristian Røed. We will be taking questions at the end, submit your questions anytime during the presentation using the chat function.

With that, I hand the word to Wendy to get us started.

Thank you, Jakob. Good morning, everybody, and welcome to Capsol's second-quarter update.

Let me begin with the Capsol opportunity. At its core, it is about delivering more power, reducing emissions, and capturing more value from every project.

First, in the US, surging electricity demand from data centers is creating an urgent need for new power generation. Capsol is directly addressing this need by unlocking more power from existing gas turbines, providing a practical and rapidly deployable response to this near-term challenge.

Second, in Europe, industrial decarbonization continues to create tangible commercial opportunities. Capsol has established strong positions in cement and BECCS, supported by customer traction and a growing pipeline of projects.

Third, we are evolving our business model to capture a larger share of project value. By broadening our scope and developing recurring revenue streams across project life cycles, we can increase the value of each project while retaining our capital-efficient model.

These three opportunities: US power, European decarbonization, and an expanded commercial model frame today's update. Let me begin with key developments from the first half.

The three main takeaways from the period: First, our US low-carbon power opportunity is moving from a compelling market thesis towards a tangible project pipeline. We are assessing approximately 150 gas turbine leads, which enable speed to power, both directly or directly with partners.

Importantly, we have also advanced an exclusive commercial-scale project with a US utility into pre-FEED and established partnerships that help validate not only the technology, but also the broader commercial model. Second, in Europe, we are positioned strongly and continuing commercial traction.

Holcim made their investment in us, and Dyckerhoff, part of the Buzzi Group, one of the largest cement producers in Europe, progresses positively with our CapsolGo demonstration campaign. They were the first ever in Germany to liquefy captured CO2 from a cement plant, and they did it with Capsol.

We also won a competitive tender to work on a Swedish waste-to-energy project for E.ON. One of the, well this is one of Europe's largest energy companies.

All this work is validating our technology and is advancing our position in the market. Third, our financial performance reflects a slower market environment, but cash burn remains contained.

During the half, we secured 45 million NOK in equity and debt financing. This, combined with cost and cash preservation measures, strengthened financial flexibility and significantly reduced cash outflow.

Gross profit was 7 million NOK, down from 23 million NOK in the same period last year, primarily reflecting lower market activity. At the same time, our cost base is now better aligned with the current activity level.

Looking ahead to the second half, we expect higher CapsolGo utilization and a reduced cost base to narrow the gap towards operational breakeven. Overall, the first half has been about converting strategic opportunities into projects, strengthening our commercial position, and maintaining financial discipline as we prepare for the next phase of growth.

Now we'll turn to the US low-carbon power opportunity. First, I wanted to recap how we enable low-carbon power.

At Capsol, we have taken a power plant approach to carbon capture with our CapsolGT product for gas turbines. The Capsol system is installed downstream of the gas turbine, where it recovers heat from the very high-temperature exhaust.

That recovered energy is then used to power the CO2 capture process. What makes Capsol different is what happens next.

Our patented technology recovers enough energy not only to capture the CO2, but also to generate additional power. Instead of imposing a power penalty, the Capsol solution can deliver net power output above what the base turbine produces on its own.

There's no parasitic load on the base turbine. This combination, capturing CO2 while increasing net power output, is Capsol's unique competitive advantage.

This is what the surging demand for gas power in the US for data centers is about, and this is why it's such an attractive market opportunity for us. We can produce more power at speed and without the emissions.

I'll broaden the picture to a specific case to explain how this can work. We're especially excited by the case on peaker turbines.

Every turbine has a set capacity. Peaker turbines are designed to meet periods of peak demand and may operate at utilization rates of around 15% or even much less.

That leaves a substantial amount of installed generation capacity unused. Simply running these turbines at higher utilization is not always viable.

At higher utilization, they may be inefficient or uneconomic to operate, and emissions regulations and existing air permits can also limit their operating hours. CapsolGT changes that equation.

By improving efficiency and capturing more than 90% of the CO2, our solution can enable existing peaker turbines to operate at higher utilization and provide baseload power. Let me explain where Capsol's difference becomes most interesting.

Depending on the specific turbine and site, our system can increase net power capacity and output by up to 15% on top of the existing turbine. Adding these 15% of capacity makes the previously unutilized capacity uneconomically, uh economically viable to extract.

In total, we can enable a turbine going operating at 15% to up to 15- 115% utilization with revenue generation. Our solution creates three clear benefits for customers.

First, it's all about speed to power. By using existing turbines, customers can avoid waiting years for a new turbine to be delivered and installed.

Second, a more economic asset is enabled by additional revenues from increased electricity production, potential premiums for low-carbon power, and in the US, benefit from the IRA tax credits for carbon capture and utilization or storage. Third, a low-carbon operating model helps customers meet regulatory requirements and corporate climate commitments while strengthening the case for broader community acceptance.

Let me zoom out. That opportunity you just saw has a broader opportunity across all of the US, and that scale of the opportunity is significant.

Again, this is from data center buildout to power computing power that's needed. We are already assessing approximately 150 gas turbine leads both directly with customers and through our partners.

That represents up to 10 GW of additional power capacity that can be unlocked. This is a subset of a larger portfolio of turbines identified as having a good fit with our solution, typically simple cycle turbines under 150 MW.

We are now working closely with these customers and partners to prioritize the most promising opportunities and identify the first projects to advance. The advantage in working with gas turbines is that they are quite standard, and therefore, our solution can easily be modularized to fit.

Beyond this initial pipeline, the broader addressable market is substantial, extending to turbines from utilities, greenfield data centers, and energy companies. Our market intelligence enables us to target this opportunity systematically.

We assess each asset based on the fit with Capsol's technology, the turbine's operating characteristics, and its proximity to CO2 transport and permanent storage. This gives us a focused pathway from a large addressable market through a prioritized pipeline to the first commercial projects.

Next, I'd like to put this opportunity into context by looking at competitiveness and speed to power. When we compare the technologies capable of delivering low-carbon electricity quickly and at scale, gas with CCUS stands out.

It offers a compelling combination of deployment speed, economics, proven performance, scalability, regulatory support, and carbon reduction, and few alternatives can currently match that complete proposition. Many new gas projects are moving forward without carbon capture because speed is the immediate priority.

However, the underlying need to reduce emissions is not going away, and communities are demanding it. As gas-fired generation expands, will the need for practical solutions to decarbonize it.

This is where Capsol is particularly well-positioned. Our technology can address emissions from gas-fired power while simultaneously increasing net power output, making it sensible to combine additional power and carbon capture from the outset.

The framework shown here is based on BCG's analysis, which we have expanded to distinguish between combined-cycle and simple-cycle gas turbines. Capsol's specific opportunity is in simple-cycle turbines, where high-temperature waste heat, which is otherwise wasted, can power the CO2 capture process and generate additional electricity.

This gives Capsol a differentiated proposition: speed to power, low-carbon generation, and additional output from existing infrastructure. The US market opportunity with gas turbines is expanding with Capsol's role, is expanding our Caps- our role across the project life cycle.

Historically, our project contribution has centered on engineering and technology licensing through FID. However, the market structure and the customer expectations increasingly require earlier commercial engagement and continued involvement through construction, commissioning, and operations.

Importantly, our position in the initial screening and commercial structuring phase influences our role in every subsequent stage. Early involvement allows us to shape the project around our technology, partners, and delivery model, creating pull-through revenues and increasing the value Capsol can capture as the project advances.

Technology licensing remains core, but broader partner-enabled participation adds development, execution, commissioning, and recurring service revenues while preserving a capital-efficient model. We are already advancing this expanded approach through our active US project, which is now progressing through pre-FEED.

Together with our growing pipeline of leads, this project is helping validate Capsol's US value proposition: competitive, rapidly deployable, low-carbon power from existing infrastructure. Importantly, customers are asking Capsol to participate more broadly under a traditional, uh more broadly than a traditional technology licensing model.

In response, we are evaluating commercial structures that include build-own-operate partnerships, build-transfer agreements, and the merchant sale of captured CO2. This broader scope reflects what our customers need to move projects forward.

For a project with the US utility where we have exclusivity, we are currently taking this broader approach, targeting a final investment decision in the first quarter of 2028. We continue to progress the project with Siemens Energy and have completed the modularization work with Black & Veatch.

You'll hear more about the potential returns of this approach when Bjørn Kristian takes you through the financial overview. We'll now turn to Europe, where Capsol established has established a strong position across key industrial carbon capture markets.

I want to start by highlighting that it was starting in Europe where Capsol has emerged as in the last years as one of the most competitive next-generation carbon capture technologies in the industry. Our base technology platform has its roots in European industry before we expanded it for gas turbines.

We're working with proven science, proven chemistry, and now engineering to scale the implementation. Our capabilities are supported by extensive real-world experience with 10 completed demonstration campaigns at customer sites and another to start later this year.

We continue to progress. Our R&D team in Stavanger is innovating to improve the technology's performance and reduce cost for real projects.

In parallel, we are standardizing and modularizing the solution to reduce cost, simplify delivery, and accelerate deployment. Importantly, the technology is progressing from demonstration to full-scale implementation.

The image on the right shows the future Stockholm Exergi BECCS plant, where the first full-scale facility using Capsol's technology is now under construction by our partner Saipem. We're combining proven chemistry, extensive field experience with continued innovation, industrialization, and full-scale deployment.

With this strong technology foundation, we believe Capsol is well-positioned in Europe as the market moves forward toward more FIDs, or final investment decisions. Our The CO2 transport and storage infrastructure continues to de- to develop, with Northern Lights as a leading example, and the major project FIDs achieved in the last year were all in Europe.

While customer decision-making has been slower due to broader macroeconomic factors, we anticipate market acceleration because the cost of emissions and the need to decarbonize is not going away. Our position is built across three areas: In cement, it is supported by the Dyckerhoff demonstration campaign, our work with Holcim, and a growing number of other opportunities with leading cement producers.

In BECCS, as mentioned, Stockholm Exergi is now under construction to capture 800,000 tonnes of CO2 annually, providing important full-scale validation. At the same time, additional customers, including E.ON in waste-to-energy, continue to evaluate our technology.

We're expanding into other industries through our UK gas engine campaign and our work with international energy companies to advance refinery solutions and other applications. Across 31 engineering studies and 11 demonstration campaigns, customers have invested significant time and capital in evaluating Capsol.

We believe these positions will become increasingly valuable as more European projects advance towards investment decisions. A key part of our strategy is shifting from individual projects to a standardized, repeatable delivery model model.

By coordinating multiple projects, we can reuse engineering and operating data and plant designs instead of starting again each time. Capsol provides the capture technology and process design, while our partners bring complementary capabilities in engineering, execution, compression, and other plant equipment.

This creates a joint delivery platform that enables standardization, coordinated procurement, and continuous learning. Each project improves the next, reducing cost, shortening schedules, and lowering execution risk.

We're applying the same approach to CapsolGT in the US, because gas turbines are highly standardized, the potential for modularization, repeatability is even greater. With this model, we are set up for efficient industrial scaling.

Alongside our delivery model, European policy remains an important long-term driver for carbon capture. The EU ETS price of carbon is still expected to rise.

Rystad's in-house view is that the price will exceed €100 by 2030. For cement, recently proposed reforms for the EU ETS still presents pressure to decarbonize even though emissions allowances will be given more time.

These allowances will also increasingly depend on credible decarbonization plans and investment. For BECCS, the the proposed integration of certified permanent carbon removals into the EU ETS could open access to compliance market demand, creating a potentially scalable revenue stream alongside the voluntary carbon removal market.

The reforms could also improve project bankability. The proposed €100 billion Industrial Decarbonisation Bank, including an approximately €30 billion investment booster before 2030, could help close funding gaps and support enabling CO2 infrastructure.

Capsol's lower cost, combined with the ability to generate additional revenues for heat and electricity, can further strengthen project economics and help customers reach bankable solutions. With that, I'm going to hand over to Bjørn Kristian for the financial update.

Thank you, Wendy. Uh so I will cover four topics under the financial um agenda.

It's the financial review, the cash conversion, and how we look to increase value capture per project going forward. I will but uh but in the end, I will also give you some insight into the financial outlook before the near term.

Uh starting with the financial review, the first half was clearly impacted by the slower commercial activity, as previously high- highlighted in our presentations, and gross profit was significantly lower year-over-year. What is important, however, is what has happened underneath that.

We have taken significant action on the cost base, and personnel and other operating expenses are both materially lower. There is also classification effect in personnel costs uh this year, with approximately 3 million of personnel expenses reclassified from cost of contract fulfillment, the underlying cost reduction is actually somewhat larger than the reported numbers suggest.

Uh and uh the cash personnel expenses is by that uh down 9 million uh year-over-year. Looking at the quarter, we saw some improvement.

Gross profit increased from 2 million uh in the first quarter to 2 to 5 million in the second quarter, while EBITDA improved from -18 million to -15 million. I would characterize the first half as a period where activity was lower than expected, but where we have taken uh decisive action to reset the cost base.

Now turning to the balance sheet. Uh this is one of the areas where we have made significant progress during the first half, following the 45 million capital raise.

We refinanced the legacy debt structure and significantly reduced near-term debt obligations. We ended the period with 21 million of cash and 27 million of undrawn uh RCF, giving us 48 million of available liquidity.

Importantly, this is not about maximizing the cash balance. We are actively managing liquidity and aim to hold as little excess cash as possible uh while retaining sufficient flexibility through the undrawn facility.

That means uh most likely the cash balance uh balance should be lower uh at uh at the next quarter, but we will retain, of course, the flexibility to to draw on the RCF. Overall, we have mo- moved from a balance sheet with significant near-term debt requirements to a much more flat, flexible uh capital structure.

In simple terms, we raised capital and refinanced, used the balance sheet to reduce debt, and we optimized liquidity management uh within Capsol. Then I want to spend a little bit more time on cash conversion uh conversion, because I think this is the most useful way of looking at the financial performance of Capsol in the first half.

Reported operating cash flow was -36.5 million, as you can see in our financial report, and this compared with a -14.4 million uh year-over-year. However, the comparison is distorted by the NOK 20 million Stockholm Exergi payment received in the first half last year, where the revenues was booked in the fourth quarter uh of 2024.

On a comparable basis, operating cash flow is broadly in line with the first half of 2025, despite gross profit, as you can see to the left side of the of the slide, uh being down by approximately 70%. That is the result of the significant cost and cash preservation actions we have taken during the period.

Uh and as you can also see from our financial uh statements, uh we do not have significant investments uh in place. That means we have reduced underlying cost base while also being disciplined around discretionary spending and the timing of cash outflows.

While the reported P&L clearly reflects the lower activity level, the cash impact, which is key for for Capsol, has been much more contained. For me, that is uh the im- important message from the first half.

We have aligned the cost base with the current level of activity and preserved cash conversion while we wait for commercial activity to pick up. That brings me to the more forward-looking part of the financial story of Capsol: how we can increase the value we capture from each project.

Alluding to what Wendy was talking about earlier regarding uh how we are engaging at more lev- at advanced or more advanced levels in in a project in the US, um historically, Capsol has primarily captured value through technology licensing. In the US, we see an opportunity to participate more broadly across the project life cycle, as highlighted by Wendy, with additional scope, and that also means multiple revenue streams.

Uh importantly, this is not about moving away from a from our capital-efficient model, and we will continue to leverage our partner ecosystem for project execution and financing and selectively um uh take on additional scope where the risk-reward is attractive. Based on our current project economics, this broader scope has the potential to approximately double the value we create per project measured by net present value.

The objective for Capsol is not simply to do more projects, it is to capture more more value from each project as well while we remain disciplined on capital and risk. Turning to the next slide, uh we want to give you some guidance uh by looking into uh the second half, uh where we expect a meaningful increase in uh commercial activity.

We have two CapsolGo units expected to operate for the majority of uh the second half, uh as previously uh highlighted through the uh Dyckerhoff campaign, and also the announced uh gas engine project in the UK. That and and on top of that, we're also seeing a gradual increase in engineering activity that started uh before the summer uh that we will capitalize on uh into the second half.

On the cost side, we expect personnel expenses to come down uh further as measurements taken during during the first half obviously doesn't have a immediate effect, and that will become uh gradually more visible uh in the second half. Based on the current activity level, we expect the combination of higher gross profit contribution and a lower cost base to materially narrow the gap to operational breakeven in the second half.

Um and I also want to stress that this is not a forecast of profita- profitability. It is an indication of the direction of travel as activity picks up on a structurally lower cost base.

With that, I'll leave the word back to Wendy for concluding remarks.

To conclude, there are five key takeaways from the first half of 2026 and Capsol's current position: First, the US opportunity is moving from market thesis to project pipeline, with 150 gas turbine leads actively being assessed to support rising data center energy demand with our CapsolGT product. Second, our exclusive utility project validates the technology, the market need, and Capsol's expanded commercial model.

Third, we have strengthened our European position across cement and BECCS, supported by blue-chip customers, full-scale validation, and a growing project portfolio. Fourth, decisive cost measures and debt refinancing have preserved financial flexibility despite the slower market environment.

Finally, we expect higher CapsolGo utilization and the reduced cost base to improve financial performance and narrow the gap to operational breakeven even during the second half of 2026. Now I'll hand the word over to Jakob for the Q&A section.

Thank you, Wendy. Uh we already have a few questions in, but before jumping into them, I wanted to remind the audience to use the chat function to submit your questions.

Um so the first question goes to to Wendy: For an owner of a simple-cycle uh gas turbine, why don't they just ramp up production?

I mentioned it very briefly in the presentation. There's a lot of it is about economics.

Uh these peaker turbines are not optimized to run at baseload. Uh they're They have uh basically need an upgrade uh for that to work uh to run economically.

Uh the other aspect of uh that limits the operations up to baseload is often the the emissions restrictions at the state level. What Capsol can do is address both the economic uh of being able to run that turbine uh in a good way, as well as the emissions uh challenge.

Uh the The economics is really addressed through the additional revenues that um the turbine can get from uh the IRA tax credits uh for capturing and storing uh CO2, there's uh low-carbon power premiums, and of course just getting additional electricity revenue at the same time.

Thank you, Wendy. The next question goes for Bjørn Kristian.

Um so you've reduced your cost base, and revenues are expected to be higher for the second half of the year. How should we think about your burn rate going forward?

Thank you. You can say, if you look at the last slide of the financial section, I would say we're fairly transparent uh on the second half if you if if you dive into it.

Um um um But uh to help you a little bit further, I mean the cash burn, as you can see from our financial statements, uh was uh plus/minus 15 million per quarter uh in what we would describe as an exceptionally uh soft uh first half. Uh so putting the assumptions we have in our IR dictionary uh and then include the two CapsolGo campaigns, and also some engineering uh revenues, uh the cash burn would, simply drop to plus/minus 5 million uh in a world where everything goes according to plan.

Based on that, uh if you want to play around with numbers, uh that gives you, 5 to 15 million of uh quarterly cash burn if you then re- replicate the uh the first half uh of this year, uh which was considered weak, and then the increased activity into the second half, uh which we would say is uh average uh plus.

Yeah. Thank you.

Uh adding to that and giving some more color, we have a question um for you, Bjørn Kristian. Uh what's the number of employees in the company at the end of Q2 2026?

At at the end of Q2, I mean uh whether that is highly relevant on that specific day, but you can say we started the year uh with uh 38 employees, including contractors, um and then uh it looks like we are uh on the path to end with uh roughly 24 plus uh some contractors uh towards the end of the year.

Thank you. Um We have a question for Wendy.

How long will it take to convert the 150 leads in the US to real projects?

Yeah. We say typically it can be 18 to 24 months to get to an FID to do the full engineering for one of these systems.

Uh and that's kind of based on the European model. Uh but what's uh interesting about the gas turbine product is the CapsolGT goes on a very standardized turbine, there's really only a cu- a few models that we need to standardize and modularize to, we expect that timeline to be able to be compressed even further.

Uh and of course, that's driven by the the, super-high demand for energy fast. Mhm.

Building on the US, there's a question for Bjørn Kristian. Does moving further into project development change the capital intensity or risk profile of Capsol's business?

Uh

no. Uh technology licensing, as highlighted in the presentation, that remains the core uh of the capital-efficient model of Capsol.

Of course, we understand our boundaries and and uh and balance sheet. Uh so what we see here is that the US market creates an opportunity for broader part- participation uh where we selectively take on additional scope while leveraging blue-chip partners, which is important for us.

Then our partner ecosystem uh is responsible for for execution uh and and funding. This not to say new for Capsol.

This has been in the making uh as alongside, the maturing um opportunities in the US where we are uh far more uh exposed and active uh in these projects. That has not changed.

No, that's the simple answer, yeah.

Thank you. Uh so there's a question for Wendy, which appears to be the last one.

Um how much additional capacity is there with simple-cycle turbines in the US?

Yeah. Um good question.

With the 150 turbines that I mentioned, I mean you can think of those turbines being they can be 65 MW up to 100 MW capacity each. Uh and if they're operating at, let's say, 15% utilization, there's a whole extra 85-plus capacity that can be unlocked.

Uh so I a- I said earlier that we easily see 10 GW of unused uh capacity uh being uh available from just those 150. Then, of course, beyond that, we've mapped out a whole bunch of other turbines that are possible, and the way we are um prioritizing these leads is looking for turbines that are close to CO2 transport and storage so that you can do the carbon capture um solution.

If you add that on top of it, I mean we see um, tens of gigawatt more possible. Of course, there's a practical limitation on how fast you get these projects online, but we still see this being a faster solution than some of the other options out there, includ- including some of the greenfield developments.

This is what makes the opportunity so exciting for Capsol. Um

thank you Wendy uh and Bjørn Kristian. Um there appears to be no more questions, this looks like a good place to conclude.

Um thank you to the audience for dialing in. Um yeah, and enjoy the rest of your day.

Cheers.