Good morning and a warm welcome to our quarter two report. Sorry for the slight delay.

We had an issue with the system that needed a reboot and a restart, which is also something that we're doing with PowerCell. What we see this quarter is that we are delivering on what we said.

We are in a very uncertain, volatile year. Next slide, please.

The second quarter was weak. We were reporting a falling revenue 46% year-over-year, excluding the one-off effects that we saw in licensed transaction last year.

I'm not going to dress that up. That is a very disappointing quarter, but I won't dwell on the number either.

What matters is what is behind it and what we can do about it and what we are doing about it. In this presentation, we're going to be very straight about what we can control and equally clear about what we don't control.

At the same time, I don't want this quarter and the numbers to hide another fact. PowerCell, the company reporting these numbers, is a fundamentally stronger company today than we were just a couple of years ago or one year ago.

Anders, CFO, will walk through the details of the quarter shortly, but first, I want to share with you the lens which we will read these quarter numbers through. Next one, please.

This is a quarter shaped by the nature of the market that we are in. This is a difficult market.

It's a lumpy market. What we are reporting is not a loss of demand.

We are in the middle of an emerging business in a technology shift. We saw massive hopes and expansions in the early stages of 2021 to 2023, a market reaction and setting.

Markets like ours, every technology shifts are lumpy. Intake and revenue does not arrive in a smooth line.

They come in steps. Individual large orders can change both a quarter and a full year for companies like PowerCell.

If we on top of that, add a year where we have had strong global uncertainty, that unevenness becomes even more pronounced. This is exactly what we reported at the year-end report in February in 2026 [audio distortion], which you also circled back to in quarter one, where we said that 2026 would look much more like 2023 and 2024 with significant shifts between quarters.

I'm not saying that to point backwards, because it matters for how you read us. When we tell you what we're seeing, it most often plays out.

Underneath the numbers in quarter two, the demand signal in moving the other way. Order intake was strengthened, I show you that in a moment.

With that lens, let me hand over to Anders for the numbers. Calling in from your phone, you cannot flip the slides yourself.

I will come back to what we've done and what we're doing going forward. Next slide, please.

Thank you, Richard. I will briefly go through the numbers.

I think it's kind of self-explanatory what happens comparing this year with last year. After taking the increased sales on IP and royalty away from the quarters, there are still some comparisons that could be made.

The importance for the quarter is to say that you may feel that the gross profit margin is declining despite you taking the IP sales away. There are quite a number of reasons for that, but there are two significant reasons that happens at the same time that I'd like to highlight.

I think it's important for understanding that this is not a gross profit margin that we are either with or that we see being for the future. That is that we were when the point in time entered the negative media coverage, we were also at the same stage in final delivery to customer.

That conjunction of events triggered us to be very careful on how we delivered and securing the relationship and the final deliveries to customers, which triggered an excessive cost during that phase that strike our profits in the second quarter. I think that is in itself important to carry.

The final deliveries with the media, approximately. If we would have had a more normal quarter, you would have anticipated a gross profit margin of around 25%, not the 10% we report now.

You can do the backward calculation, how much this is striking us at that point in time. In the quarter, though, there are still one positive thing I'd like to report on, that is the operating cash flow.

Like last year, it's a bit of a bounce back from the first quarter that usually is negative, significantly negative. I think it's important to give that some of them a very large or a high number of working capital that certainly helps us when we can utilize what we have in a quarter like this.

Despite a very, let's say, small top line, we managed to have a positive operating cash flow in that scenario. With that, we can move on to the accumulated numbers, we can flip slide to the H1 period.

I think numbers are repeating themselves, but on this page, I really like to take the opportunity to say that. For a number of reasons, we also, like Richard say, are in a position where we take actions on the cost base side.

There are a number of those background reasons. The first, more narrow strategic focus as we move forward.

Secondarily, as we look into the time horizon going forward, we know that we need to focus more on tomorrow and the day after tomorrow, rather in a very long period of time, because we have now come to a place with our company where we can swap between short-term, long-term, without necessarily having any setbacks from that. We are simply more efficient in what we do on that angle, and particularly that related to R&D.

Thirdly, when you move from, you may recall this from the first quarter report. You remember us presenting the capabilities of PowerCell, being the fuel stack, the systems, and the software.

Of course, in that change, that comes with a certain level of competence shifts. We need to take that into account as well.

Last but not least, and here's where I think it makes more sense to you, obviously, with a huge cost base, given the turnover we have, we need to revisit and realign the cost base. Those actions are already in place.

The importance when you look at future quarter reports and then start to wonder how much are the reductions, so what is actually happening, I would like to take the opportunity already at this point in time to say that these things are happening during 2026. The importance for us is to make sure that when we enter 2027, we have a cost base that is a relevant cost base for what we foresee being the revenue levels in 2027.

Although we will report, and you will most likely also recognize the number changing throughout the rest of the year. With that, Richard, I think I'm done with my numbers, I leave back to you.

We'll come back to that during the questions. If you flip side, you will see the upcoming events and reports.

Yeah.

Q3 in October 22nd and quarter four on February 3rd in 2027. If we move on.

Next slide, thank you. As Anders said, we have already acted.

We have now worked hard to increase focus and build on the discipline that delivers. We have a harder market.

We have had that for the last 9-12 months. Our response has been to become a better company.

Three areas that we are working on. One is resilience, as Anders was talking about.

We are right-sizing the organization, adapting the cost base to the current market conditions, and as Anders pointed out, to be very fit for the market we enter in 2027. We see the effects materializing in the second half of 2026.

The balance point we need to preserve is to have long-term competitiveness and the ability to scale. Resilience to protect profitability has been in focus for the first half of 2026, and you will see effects in 2026 and 2027 going forward.

We have also increased focus, because when the market is difficult as it is, it's important to concentrate your resources where your competitive advantage is the strongest. Marine remains our commercial foundation.

I was really happy to see the order being signed here in the latter part of June. Power generation with the order that we signed as a subsequent event to quarter two, the data center order from California, is a very important first step to establish power generation as a second growth pivot to double the potential third market for PowerCell.

What we also have seen is a focus on technology, where improvement performance on current generations allow us to postpone investment into next generation, which is also very important and a valuable thing. It gives us two things.

One is, of course, lowering cost and pushing investment further out in time, but also longer time to live and build the company on what is already invested, which is really, really strong. Third, precision.

We are increasing customer value and improving our differentiation. DMC, the Dynamic Master Controller, which is the software platform that is integrating large installations with multiple megawatt of fuel cells, that is a really strong differentiator, and we'll come back to that one.

Software and controls in general allows us to control a drive collective, protect lifetime and durability, but also orchestrate energy in hybrid installations, which is becoming much more important in the market that we're entering at the moment. It's not just about power generation, but how to orchestrate energy in an installation.

Of course, working on the application-specific integration and value that you create for marine customer, power generation customers, et cetera. If we move to the next one.

Order intake was up in the quarter. The number shows that we are heading in the right direction in that one.

The order intake is leading, and revenue follows. Revenue is trailing in this market.

Sometimes we deliver within six months, three months. Other times, it's 18 months.

It's a very important signal to us that we saw order intake rising to SEK 86 million new signed orders in the quarter, up from SEK 50 million in quarter one. Even more importantly, it accelerated towards the end of the period and continued now into the third quarter.

In marine, we saw our proven foundation, signing an order with LH2 Shipping, which was exactly the kind of customer that is driving this transition. In power generation that we have identified as the second growth pillar for PowerCell, we signed our first multi-megawatt order with ECL just after closing of the period.

This gives us the two pillars that we have been focusing on, the strategy that we have to build PowerCell going forward. Revenue lagged this quarter, but intake accelerated.

This is just how business looks in building a company in this technology shift. Sometimes demand is building faster than delivery revenue yet shows.

Let me now show you where this actually really sits. It's not just the hardware.

Next slide. We are talking more and more about software and features and integration, and that is becoming more important for PowerCell and the industry.

The foundation of PowerCell will always be to the right side. We're extremely proud of the S3 stack that we have.

We have products and technology which is creating massive value for us. What we have learned in the last 18 months is not just to have good technology, but to become an industrialized product company.

If we start at the right, the S3 stack is a very versatile and a robust component that we have now pushed in tests. We see that we have performance and durability beyond the spec.

We have a very wide operation window, which is important when you go into more demanding applications like data centers, because they have a very active dynamic load. A fuel cell in a data center is not just operating on its optimal workload, but it needs to have a wide range.

The S3 stack is really competitive and strong when you operate it between 40% load and 80%-85% load. That is a very wide operational window, which gives us the opportunity to use the same core technology in different demanding segments.

We have validated it beyond its spec, both in high-end temperature and using gray hydrogen, which has less purity than the green hydrogen. We see that we have a very strong foundation going into the market.

The PS190 system that has been developed in collaboration with Bosch. It's been running now in daily commercial operations at the ECL MV-1 site, a 1 MW AI data center site.

ECL selected this one after doing side-by-side testing with a number of other fuel cell manufacturers over more than two years' time. The DMC that we'll talk about more is protecting the system from the anomalies that come in a very demanding high-end application.

Once again, the DMC, which we are now seeing becoming a strong strategic differentiator. It allows for a single interface in a multi-system installation.

For instance, when we deliver 5 MW or 10 MW, we are talking about installations between 30, 60, and 70 units. To make that integration and then the optimization between systems is a very complex but also very value-creating operation.

That is what we are doing with this Dynamic Master Controller, which is a control platform for optimization. It gives us uptime and redundancy from the drive collective and not the individual system, which is very important going into more demanding applications.

We can also with this optimize the fuel efficiency, lifetime, and load balancing when we go into the hybrid prime power applications. Next one, please.

Talking a bit more about ECL. ECL is an AI data center company in California.

They have been running two years of operations with liquid hydrogen, batteries, and also power generators with diesel, creating this multi-hybrid installation with different energy sources. They have been running real technologies in real conditions before choosing PowerCell.

The firm order is for the PS190 system, around 5 MW with the DMC licenses on top. The value is approximately SEK 30 million, and it will be fully delivered in 2026.

The order value is not the main story here. The significance is far greater than the size of the order.

It is a reference case that opens up the door for future multi-megawatt installations in power generation. This is an early proof point.

This is not the final proof point. The real test for us is to secure order number two, three, and four, both with ECL and alongside others.

We also signed a non-binding memorandum of understanding covering future capacity of around 300 MW. That figure is the ambition of ECL and their growth plan.

It's not our guidance, and it's non-binding with no committed volume or revenue. I want to be crystal clear on that one.

The most important thing about ECL is not the order size. It is how the system will be used.

If we go to that, we will now talk about something, next slide, that was outside of scope for PEM fuel cells for a long time. This is not backup power, and it's not peak shaving.

This data center and our installation is designed for continuous prime power operation, which is a very, very valuable and also demanding application. That distinction is the whole point, because the traditional PEM fuel cell role has been around backup, sitting idling, waiting for an outage.

ECL is deploying our system as part of their primary continuous power supply for mission-critical infrastructure. That is a fundamentally larger role and a fundamentally larger potential market for us.

The question I get here is, where does the hydrogen come from? The growing availability of gray hydrogen and blue hydrogen is making prime power commercially relevant today.

This is especially visible in the U.S., but we are seeing the same trends also in Europe. That opens up for a market for renewable green hydrogen, when that volume and off-takers are out there.

Let me then step back from ECL and more look on the market underneath it. Next slide, please.

Behind the short-term volatility, the long-term drivers are not slowing. They are accelerating.

We have talked more about energy resilience, power demand, data centers crowding out capacity, and in parallel to that also improved hydrogen availability. gray and blue today, but we are reading constantly about new FIDs on green hydrogen, as well as deployment of green hydrogen production and distribution.

Pollution, emission regulation, those are still drivers that are extremely important for PowerCell, but the demand of power, speed to power, and energy resilience, those are the drivers in the market that we see today. Those drivers are real, and they are strengthening.

Against them sit the constraints, capital discipline in the markets, geopolitical uncertainty, and also sometimes lack of infrastructure. That combination is exactly what we have been trying to describe for a long time, that we have strong demand drivers, but we also have slow decision cycles.

The question is whether or not we're positioned to capture the volume that are out there when the cycles turn, and we think that we are with the product portfolio we have, but also with the industrial setup that we are representing. Next slide, please.

When we say that we are positioned to capture it, this is why we think we are. Power generation isn't a new thing within PowerCell.

It is the same core technology as marine, with the same volume benefits that flow both ways through Bosch and through our marine applications. Our portfolio is also optimized for it.

The performance, price, in combination with the Dynamic Master Controller, gives us a very competitive component for power generation. The contribution to this is additional growth potential, of course, but without the proportional capital spend.

We are doubling our growth pillars. The growth potential for PowerCell is stronger with power generation, but we're building it on an industrial setup that is protecting EBIT in a soft market, but it gives us an opportunity to stay ready when the market turns from the setup we have with Bosch, that is sourcing and supplying the complete system for PowerCell, and we are doing the application and integration at the customer site.

What can we expect from this when we look forward? Next slide, please.

Let me be very straight about what to expect. The volatility will continue.

We are in a market where a number of customer decisions can move a whole quarter or even a year, and the timing of those decisions are hard to predict. We won't put a number on what is not signed.

We have a very active sales pipeline at the moment. We have worked hard on the commercial process within PowerCell, but we need to acknowledge the fact that before it's signed, the value is zero.

My conviction has strengthened throughout the quarter, especially the end of the quarter. Customer activity is rising, quotation requests are growing, and with ECL, we have tangible proof of the strategy is gaining traction, but also creating value for the customer.

We are also prepared either way. We have focus and the measure to continue to defend breakeven, as Anders was saying, in the low end of the scenario going forward, but we also have a capability to act and deliver on the higher end of any outcome.

Which brings me to where I want to end. Next slide, please.

Let me bring us back to where I started. We own this weak quarter.

This is the volatility that we flagged for. It's not a loss of demand.

We're focused, more focused than before, commercially, technically, structurally, and we are prepared. We also see the very important indicator that order intake is going up.

Just in the last 2.5 weeks, we signed 9 MW of orders, late June and now early July. What we cannot control is when the market turns into activity and that turns into order.

We can control how well we prepare for it, and when it happens, how well we execute. My ambition with PowerCell is to continue to manage this uncertainty with very strong product offerings to the market, very close collaboration with customer, making sure that our products are not just delivered, but also creating value in the customer operation, and we feel that we have positioned PowerCell to do that in a good way.

With that, thank you very much, and we will open up for questions.

The first question is for Anders. Our cash position seems to be low at SEK 76 million.

Will you raise cash, or how do you tackle that problem?

We tackle the problem by being careful about how we spend cash. We think that the position we have right now is just a natural position given the business situation we are in.

Are we concerned about the near future? No, we are not.

We feel comfortable at the level of where we are.

Very good. Let me see if we have any more questions here.

We have a question about Bosch royalty. Here, we need to explain and perhaps dive a bit deeper.

In 2025, hydrogen was identified as one of the focus areas for the new Chinese five-year plan. How China works is that in January, they start working on the new five-year plan, identifying how to implement in what areas, and then the implementation starts in the second quarter.

We are now expecting to see revenues coming from the Chinese hydrogen market in the second half of 2026, which is just the effect of how they implement the policies. What we do need to acknowledge is the fact that more than half of the investment into hydrogen production in the world is happening in China.

China has also identified a number of corridors, hydrogen highways, where operators of heavy-duty trucks can run. They get subsidies for the CapEx, of course, but what is more valuable is that the OpEx is affected by the fact that they're running toll-free on the roads.

It is expected to see a growth for transportation in China. Also we would expect to see power generation and other segments to follow.

The question follows immediately, do you have a partner in China? Yes.

Bosch is our partner in China. They are the sales channel for both automotive and non-automotive in China, and they have an extensive operation, both with factories in Wuxi and Chongqing.

Bosch is a very established player on the Chinese market and one of the leading suppliers of fuel cells to the truck industry in China. China is going to be a very important market for hydrogen in general.

It will drive development of new technology, implementation, and scale of economy. We have a new question here.

Anders, a question for you. Right use of assets increased with non-current lease liabilities up correspondingly.

What is this new commitment?

No, I'm sorry. You got to repeat that, Richard, because I can't read the question.

We have a question from Elsa, Carnegie. Right of use assets increased with non-current lease liabilities up correspondingly.

What is that new commitment?

Well, the right of use is, I'm not sure really about the question, to be honest.

Okay. We will then go back to Elsa, Carnegie afterwards and check with her.

One additional question that we see here is the outlook then for hydrogen availability. That is a difficult question to answer.

Yes, hydrogen availability is improving. Green hydrogen is being deployed now at a stage and a pace that we haven't seen before.

Norway have, in 2026, signed up for five new production sites with logistics. When you have production, you always see a growing market, because when they design the production, the off-takers are quite often lower than what the potential is.

That is improving. We also see now in both Spain and Rotterdam large installations going into deployment, but also then new investments being decided and initiated.

Green hydrogen is expanding at a pace that we haven't seen in this industry before. What is encouraging, this contradicts a bit PowerCell's background as a very green company, the availability of gray hydrogen and blue hydrogen, where you make hydrogen reformed from natural gas, is allowing for an availability both market availability and logistic chain that is already existing, but also at a cost that is attractive for customers, even using it for prime power.

The hydrogen availability is something that is driving demand and is going to open up doors. Even though we would like to see more green hydrogen being available, creating a market where you have fuel cells and other off-takers for hydrogen being based on the gray hydrogen as a start, that is going to accelerate also the deployment and investment interest into green hydrogen.

With that, I think we have covered all the questions. I'm trying to look through here.

With that, we're grateful for the support that we have from customers, from our stakeholders, owners as well, and of course, our employees. We feel that we are well-positioned on a market that is very difficult.

It is hard out there. We are seeing signs of improvement in the shape of order intake, but the proof is going forward, not just signing the first order, but signing the order number two and three.

With that, thank you very much. We wish you a nice summer and as always, you're more than welcome to reach out and visit us at PowerCell in Gothenburg.

Thank you very much.

Thank you.