Magnora Stock

Good morning, and welcome to Magnora ASA's First Half Report and quarterly second quarter report. It's been an astonishing quarter. We have done so many things over the last year. We introduced the data center business last year, and we successfully listed it on Euro Market Growth in June, raising NOK 650 million in cash. Magnora retained 52.7% of the company. As a part of Magnora Group, and we consolidate the numbers. The company has already entered into couple of Letter of Intents with customers and potential partners.

We have increased our operating leverage quite considerably during the quarter as we've adjusted our cost structure and development activities. Previously, we've had NOK 25 million to NOK 35 million in OpEx and development costs. But after the adjustment through the spring, they're going to be around NOK 10 million to NOK 15 million per quarter for the renewable business as it enters a more of a harvesting phase and the marginal cost for new megawatt is quite low because of the team's productivity.

New sales and earn-out will impact the bottom line directly as will Magnora Data Center. South Africa is entering a harvest phase. We entered the market in January, I think, 2021, and we have multiple clusters for sale, so close to 1 gigawatt, perhaps more towards 2030. South Africa is one of the fastest-growing renewable markets globally.

We're very proud that our subsidiary, Magnora Data Center was able to secure land, the building permit and a grid connection agreement for the Hameenlinna project close to Helsinki in less than 8 months. It's one of our records, I think. But we're standing on the shoulders of all the experience we have in Magnora. It's been an easy task when we find the right project. Very happy with my team, and I'd like to congratulate them.

The cash position in the group is NOK 814 million together with the credit line, it's close to NOK 1 billion, and we have a quite low cost base, as you see. We've added new Board of Directors with experience from both technical and the commercial side in the data center industry and they're thought leaders, and we gain a lot of traction from having them on board in Magnora as well as Magnora Data Center.

Looking a little back at our history for the new spectator, we've returned NOK 1 billion to shareholders over the last 7 years. We have close to 28% annual average return for the shareholders. We've created a new business from scratch in early 2025 into a listed data center company listed on Oslo Stock Exchange in less than 18 months.

Let's go over the Magnora Group. The net portfolio is around 10 gigawatts. We have a very attractive data center portfolio as well in those numbers. We are in 4 European markets. We've raised NOK 650 million for data center business. If we break down the share price at the end of Q2, which was at NOK 24, you see that there was NOK 2.4 per share in cash and the data center business valued at around NOK 9. The renewable business in Magnora is priced at around NOK 900 million. That's NOK 12.4 per share, and that's the lowest number since, I think, 2019.

Market update. Increased geopolitical uncertainty drives electricity prices and request for energy security. We think it's a perfect storm for a second green wave. It's been slow predominantly because of interest rates previously and inflation, but inflation has cooled down and grid connections and access to transformers are a bottleneck now. But if you see -- look to market like the U.S., you see that over 90% of new energy equipment installed is from solar, BESS and Onshore Wind. That's quite opposite of what you think when you read the newspapers or Internet.

Renewable has come for here to stay. It's very affordable, flexible power together with battery storage. Of course, it creates problems in some markets, but this can be mitigated by battery to a large extent.

Looking at the South African market, it's growing considerably renewable share from 19% to 33% by 2030. Very fast growing, a little bit lumpy, difficult to time the exact timing of sales. But here, you see the market in total. Today, it's 242 terawatt hours, so just shy of Norway and Sweden combined. Then with Denmark, we have 350 terawatt hours consumption in the Nordics currently.

But South Africa is moving towards 395 terawatt hour by 2050. Nordic may be dwarfed by the South African market. It's a very, very fast-growing and large energy markets and particular renewables since you're replacing all the coal with renewable BESS, solar and wind. One of the largest renewable build-outs of any growth market.

Business update. Here, you see the portfolio across the group. It is done a net to Magnora based on the ownership share in Magnora Data Center and the Onshore Wind portfolio has grown quite a bit, which we're happy with in South Africa. Then we have the earn-outs from VINCI and First Solar on the route there.

In the Renewable segment, we see a shift from growth to more harvest. We have a target of 12 gigawatts. We think we're going to reach that across the technologies, but we're not going to grow as fast as we've done previously, and we will be more in the harvest phase. But selectively, if we come across new very interesting opportunities, we'll, of course, look at them.

A little bit about the Board. Very proud to have a very good Board who knows a lot about data center. We're very pleased by the work Torstein Sanness have done over the last decade for Magnora and for Magnora shareholders. As he retired, it made sense to look for experienced, seasoned data center people. Hilde and John has been here for a long time, but all 3 people, Hilde Hukkelberg worked a lot with AI establishments in the Nordics and in Norway in particular.

And Lars Schedin founded and built EcoDataCenter, very successful Swedish data center business and Jean-Francois Berche, one of the key first employees in Amazon Web Services and OpenAI and Microsoft. So an excellent team who knows how to develop this business and powered land and even more.

Take a look at our cost base. It has been hovering around NOK 30 million per quarter, operating cost and development costs historically. We've been able to scale that down from last year. In Q4, we had some legacy payments from the Talisk project. But as they moved out and we have done adjustments in the Norwegian, Italian and German teams, we see that we -- our new cost base is around NOK 10 million to NOK 15 million per quarter, operating the business as you see it today.

To provide more examples from South Africa, we have 5 clusters there. We think it will be for sale or be sold by 2030. Predominantly wind, solar and that's spread quite evenly. Wind is the highest paying. Together, they provide baseload in most South African projects. Quite interesting combination, and it's been part of our origination strategy and development strategy since the start. We entered the market in 2021, as I've said before, and it takes 3 to 5 years to mature a good wind project, a little shorter for solar and much less for BESS since it's less footprint.

The structural demand is exceptional. The grid is being built out at a quite high pace. They have a national plan for 14,500 kilometers of new lines. It takes 3 to 5 years to secure a project, as I said. The entry barriers are really, really high. We have around 19 employees in this team, and we're very proud of the results they have achieved so far.

The data center business went from 0, start of 2025 to NOK 1.3 billion, a little over since early 2025 until today. We've done multiple transactions, signed land in various markets, 4 different countries with local teams supporting the project. We received our first firm grid connection yesterday in Finland, very proud of the team's achievements. As I said, established a joint venture with Blix Group here in Oslo, also co-ownner on Storespeed.

We have a lot of origination activity now. I think the fall will be very exciting for the data center business for Magnora as customers are also interested in many of these sites. Give you an example, data center project in Finland. We met the team end of 2025. Zoning was completed, with concept design, building permit, grid connection agreements acquired and from 70% to 100%, signed up Letter of Intent with the heating company with the utility, backup power additional electricity, all in 8 months.

You see the land on the picture. It's in an area are recycling business. No neighbors are going to be offended by this facility. The municipalities, just adorable. They would like to create a lot of new business in Hameenlinna and data center is one part of the businesses they're interested in looking at.

We initially planned the site to be 120-megawatt site, but because servers have become more dense, we see that it's an opportunity to develop this site much further, and we're in discussions with local partners on how we're going to do that and develop this as a campus over time and potentially a Phase 3 as well.

Other markets, sales processes have been protracted over the last few years because of high inflation and high interest rates and also ability to access transformers and new transmission lines. We think all these metrics are improving. We have noticed sustained and renewed interest for solar projects even in Norway. We're working on a transaction in the U.K. with the solar and BESS there.

In Germany, we have sales dialogues on a few projects. Italian BESS auction is coming up, and we hope to have our projects ready by that. Also supply chain clarifications are required for the Talisk project. But all in all, we see that there will be more transformers available over the next few years and substations. We think the market will improve as interest rates have stabilized and inflation have come down quite considerably.

Regarding the value chain, we've spoken about this many times, so I won't spend too much time. But we are a matrix organization, and we staff teams according to the underlying mega processes. We have a good capital base. We're able to mature and develop projects, and we sell them before they're built or before they're ready to build stage for the new bidder.

We have active project portfolio and execution. We know that in data center, we need more capital. You need capital for the grid connection fees and the deposits, large projects. You need to do geotechnical surveys, you need to do -- get the building permit. Per project, it's a little more expensive than solar and BESS. We need a solid balance sheet, and you need speed and execution, and that's what we've shown we can do many, many times, and you need flexibility in the value chain.

We have the Edge portfolio on the data center side when we see good small opportunities, try to build a network of development projects in the Oslo region. Then with the balance sheet, we have flexibility on the approach to monetize each project. When we see a project is dead, we're not afraid to shut it down.

Magnora Data Center shortened time lines in a similar fashion. But here, we sell on a specific date. People want to go in the market, let's say, first half '28, second half, '28 or second half '29. That's really important, and we align all business processes. We spend money, and we derisk the project. We have a very good relationship with a few EPC vendors who are helpful when we discuss the project opportunity, the land and the permit, and strong control over long lead critical items, that's what create integrity and trust in a sales process.

As we've done many times before, we probably want to make early sales. I cannot promise when. In the data center side, we have a big war chest. We have flexibility. We look for local people with integrity. We don't have any expensive stuff on our balance sheet, and we diversify. We're in 4 markets, and I think we're going to be in another market in data center within maybe the end of the quarter. So exciting times ahead, but we follow strategy of simple rules in our day-to-day business.

Regarding the financials, here, you need to remember that the data center business is consolidated on a 100% basis in these numbers. Operating profit and loss was negative NOK 36.4 million in quarter and net profit approximately the same paid in capital, NOK 6.9 billion, most of the costs allocated to the data center business in the group. Cash flow, you see the net financing, net investment and the cash from the start of the quarter. We're now above NOK [ 800 ] million in the group with the credit facilities, we're at NOK 964 million. We're really, really proud of that.

Here, you see our total portfolio distribution outlook at the end of Q2. We have several projects in all categories. We're working actively and very hard in all categories, and we hope to be able to make 1 or 2 transactions by the end of the quarter. In total, our portfolio stands above 10,000 megawatts, and we have a goal of 12,000 megawatts by the end of the year, which we think is achievable.

The focus ahead, 12 gigawatt portfolio by end of 2026, continue as an active shareholder of Magnora Data Center. We get a lot of unsolicited interest for the company. We're discussing JVs. We're discussing project sales. We're discussing new origination. We have a very strict project development and cost discipline in Magnora historically. We say no to 9 out of 10 opportunities, probably more. We execute on our project development. We have dedicated portfolio managers who follow up each project and group company, and we try to sell the projects in the range we've guided previously.

We think the renewable market, in particular, will be much healthier going forward. The exact timing of it is hard to say. But when you see to the U.S. market where 92% of all new energy is renewable, we think we have a very attractive portfolio in many markets, and we have money to develop and mature our early-stage and mid-stage projects. We're going to continue selling and developing value for our shareholders through also new initiatives we haven't discussed today, but we have many, many interesting projects going on.

With that, I would like to thank for the support and the interest for Magnora. Wish you all a good day, and thank you very much.

Good morning and welcome to Magnora's Q1 presentation 2026. How are you? So highlights for the quarter and subsequent events. We reached our 10 gigawatt portfolio in the first week of January. We've advanced multiple sales processes during the quarter as we mentioned end of last year and in February. So we have very positive development on that side. We have grown the data center portfolio to 410 megawatt gross, net 290 megawatt to Magnora. We expect that Finnish and Swedish project may be for sale already this year. And our Finnish project received its building permit last week and we're very happy about that.

We launched our DC origination business also in Magnora Italy and South Africa. We have signed a project in Italy, I'll get back to that. We have seen a noticeable pickup in interest for renewable projects, in particular, in April. We didn't really see it in Europe in March, but we have seen strong incoming interest, in particular, in Germany and the U.K. and Norway. In addition, we're pleased to say that we have engaged Arctic Securities to explore a potential 2026 listing of Magnora's data center business reflecting the strong market interest we've seen in our organization as a developer, but also from the financial community.

We're delivering on our strategy and returning over NOK 1 billion to our shareholders. For new readers and listeners, we've had 20% return on equity since 2020 and returned over NOK 1 billion to our shareholders. 28% annual average shareholder return over these years. And we're now ready to grow into the data center space, providing better margins and higher growth, in particular, in the Nordics going forward.

Market update. We've seen a significant increase in gas prices and 75% of the population in the world are dependent on fossil prices for their total energy consumption and this has a noticeable impact on consumers and businesses also in Europe. We see that EU have estimated additional cost of EUR 24 billion alone. So the geopolitical uncertainty comes back as it did in Russia invasion of Ukraine. So we think we are at a step shift on the demand side for green energy projects in Europe. EU has established a EUR 2 billion fund to reinforce the European energy transition.

We've seen very fluctuating prices with plenty of negative prices due to the increasing amount of renewable energy and that is mitigated and taken care of by BESS, which has seen the strongest growth in history in Q1. I'll get back to that. European Utility Index listed stocks is up 16% year-to-date. We've seen continued acceleration of green energy. Wind and solar together now is the largest portion of new generation in EU for the first time and we think it's going to grow further. We see rapid growth in BESS and you see the demand in Q1 is almost the same as the whole of 2024 at 46 gigawatt hours.

We've seen record hours of negative prices as well in Q1 until April this year. And in Spain alone, I think it was above 300 hours of negative prices year-to-date. Taking into consideration that most of that happens at daytime, it has a very significant impact on how electricity is delivered, consumed and the prices you pay. We see that the FLAP-D; Frankfurt, London, Amsterdam, Paris and Dublin; the largest data center markets in Europe are short of capacity. Vacancy rates are at record low and that means data center operators and sovereign cloud drives demand to new areas in Europe.

Sweden, Norway, Finland are prime spots; also Iberia and Italy and it's quite challenging on Continental Europe to get good sites. Business update. Data center origination grows rapidly from less than 96 megawatts last year to 290 megawatts as of yesterday. We expect to sign new projects in short and also midterm. Solar portfolio quite stable, actually a little down in South Africa as we took some projects out and battery systems growing slowly. And we have a high focus on onshore wind, in particular, in South Africa. I'll get back to that.

And then we have our earn-out assets in Evolar and Helios. So above 10,000 megawatts. We've had a very high focus on data center origination in the quarter and had slower growth, but we expect growth on renewable, in particular, in South Africa to pick up for the remainder of the year. So a shift toward more selective growth; data center origination, BESS in Europe and onshore wind in South Africa and we'll have selective DC growth outside the Nordic as well.

Here you see the distribution. I'm very pleased to say that we've signed 30 megawatts in Italy with the team there. We have a fabulous team with a very good track record on real estate and BESS origination and they have looked during the quarter for good sites and they recently found a very good site which we signed up. The team in Sweden has found a brownfield site at 60 megawatts, which we think we can grow further. The Finnish project, Hameenlinna, is developing really, really well and we had a building permit last week. We've signed up new projects in Norway and I'll get back to those.

Finnish project on industrial land zones for data center activity close to district heating, gas network, a lot of fiber in the area and we're working on the final grid agreement. Strong local support. The municipality really finds this project appealing. They say it's a significant step forward in advancing technological development and economic growth in our community. 70,000 people live in the city and around 5 million people in the vicinity of the Hameenlinna area between Tampere and Helsinki, 120 megawatts and very, very happy with the development of that project.

Another example brownfield site adjacent. We think we can connect maybe to the grid faster than anticipated. Peter Nygren and the team are working really well with the origination. We think we get more sites close by and in Sweden over the coming months. Selective positioning. For new readers, we entered a space last year. We made an acquisition, StoreSpeed. Worked in a JV partnership with Blix Solution on that site together with the founder. And we're looking for more metro sites similar to StoreSpeed to combine with the network of Blix and StoreSpeed Magnora.

So very interesting development. We refurbished the site and spent some money there to make it nice place for the customers to come. Italy, we signed 30 megawatts in Northern Italy, Milan area. That's one of the hottest data center areas in Europe. We have a structured sales process ongoing for 175 megawatts. We are dependent on final permits for those projects before they're completely sellable and we have auctions coming up later this year, another in 2027. So very interesting capacity market in Italy.

South Africa, we've grown the onshore portfolio to 360 megawatts. We took out 1 project due to avifauna risk, that's a large bird risk. But in general, we have very good origination. We have very good dialog with the customers. The customers, they expect to roll out 100,000 new megawatts of renewable in South Africa by 2040. We have one of the largest independent platform. We've had an international bank present in South Africa look at that portfolio and I think it's worth multiple times of Magnora. So it's a very, very good team; very, very good projects; very good sites and we think this has many legs to grow on; onshore wind, solar and also data center; which we expect to be perhaps up to 2,000 megawatts by 2030. So some selective data center focus in South Africa as well.

Germany, adviser was engaged last year working on closing a larger transaction. That's a very good dialog with multiple customers. Good interest for early-stage projects. We think the negative prices in first quarter and also the geopolitical situation in the Persian Gulf will impact the demand going forward. So they changed the regulatory regime; first come, first serve. Magnora's approach is to work with local stakeholders and municipalities and it seems like this is a good value proposition for the clients we're discussing with.

Other markets, we've seen a noticeable uptick in interest for renewables. Our adviser in U.K. is called up by customers to ask for available projects. As you know, the regional grid company, National Grid, are struggling to sort of allocate exactly time slots. But we have from the regional grid company a possibility to connect in 2028 for these projects. They're fully permitted. In Norway, we had clients visit our sites and find the projects in Norway very interesting from a regulatory perspective and certainty around grid and actually the quality of the site. So that's also a change.

So we hope this development, the pickup we've seen in April will follow through the year and that European politicians and utilities will take growth more seriously going forward than they have done in the last 2 years where everything has been quite slow. Our business model, it's quite similar across solar, wind, BESS and data center. We have had people who developed large data center sites historically, but it all starts with a good site, site evaluation, geotechnical issues, maybe you have to do drilling, connectivity issues, environmental risk maybe the most important in that stage and the ability to connect with fiber and redundancy on grid and fiber.

Project development, the core of what we do or the local teams do very, very important. Then it's the construction. We have people who can assist the client in construction management. And then the last phase is operations. We're an operator within the data center space with StoreSpeed. Then quite important to have the relationship with the vendors for our data center site, but we also get a lot of incoming on bids for volumes in the data center space. StoreSpeed is not able to develop -- to deliver 10 megawatts to 50, 100 megawatts, but we're starting to develop very good relationship with multiple customers after the partnership with Blix and our acquisition of StoreSpeed.

So very happy about that part in our rally change that change over the last 6 months. We established our data center strategy early 2025. Focus in Norway, Sweden and Finland. We have a portfolio strategy to avoid political risk. We have different sizes. We look at different vintages timing. And our value proposition we think can save international clients, but also Nordic clients 2 to 3 years on the development since we're a very experienced developer of nonzoned land. We've done this many, many times. We've sold over 30 projects over the last 7 years.

We're now harvesting our role as a data center operator with the StoreSpeed. We're developing the customer network, concept designs and technical in-house competence. We see that a lot of landowners like to do partnership with a company like Magnora, real estate companies and industrial companies where we have sort of a risk-sharing model on the development expenses and then profit split. So it's a good, well-established model we've used within the renewable space for many, many years.

So we executed on the strategy. We launched first the Swedish team in September last year, acquired StoreSpeed, partnership with Blix, first large-scale project last year in Norway. We have a pipeline of above 1,500 megawatts across many countries in Europe. We have a portfolio now of above 400 megawatts. So why work with Magnora? We have very long experience as land developer. We're really good on grid connection, analyze the possibility to get to the grid before zoning. We have a good relationship with the vendors. We get customer contacts through also the vendors.

We know how the building permit process works and what's important and how it impacts neighbors and the local community. We have long experience doing structured sales and also direct sales. As a listed company, we take regulatory compliance very seriously and we always like to have local buy-in. And we see that many international companies underestimate that. And we have learned from the renewable industry that you have to pay very, very close attention to what local stakeholders think about these large infrastructure projects.

We have proposed a new Board. Torstein Sanness is stepping down. He's 80 years. It's been a true pleasure working with him. I've learned so much over the years about team spirit to build the organization and to have organic cash flow to finance your growth. He was the founder also of Lundin Petroleum in Norway. And very, very thankful for the years as Executive Chairman first and then the Chairman. John Hamilton is proposed by the Nomination Committee as the new Chair, been with the company for many, many years.

Hilde will also continue and we're very pleased about that for the continuation in the Board. But we're very happy to say that Jean-Francois Berche and Lars Schedin and Hilde Hukkelberg have been proposed by Nomination Committee as new Board members in Magnora. So Jean-Francois was employee #3 I think in Amazon Web Services, worked with M&A and acquisitions in Microsoft OpenAI and is now CTO in one of the larger neocloud operators in Europe and it will be a great contribution to our organizational capabilities and competence.

Lars Schedin, former Founder and CEO of EcoDataCenter, one of the largest independent Swedish data center operators for many, many years. Sold a couple of years ago to a large real estate company. Hilde Hukkelberg, she's from Innovation Norway in London as a Director. She's worked in sales in London and been quite active in the development of the larger Norwegian AI sites over the last few years. So she has a very good network. And we think the new Board will really be important to contribute to the growth going out for the next following years. So you can read about their bios on LinkedIn for further information.

Strategy as simple rules. I just want to say that we always diversify. We focus on early sales to prove our business model in a new market. You may see that also in DC business. We try to have a warchest so we don't need to negotiate on weakness, but on strength. When things looks perfect, we have historically sold businesses and projects. We have a high focus on entrepreneurs with high integrity, very important for these type of projects. We remain agile grasping new opportunities like the data center business opportunity in 2025. And we try not to have expensive stuff on the balance sheet and very focused on capital allocation and farm downs.

So Q1 financials. Q1 was impacted by a lack of sales. We have increased the data center portfolio quite a bit. We had some final costs for the Talisk campaign one-offs, stuff we ordered first half last year on the expectation that we'd have a farm down on that. We missed on that, but those are one-offs, a big impact actually on the OpEx. It will have some impact on cash flow in Q2 as well. And then we have stock option costs, which were vested and an execute strike in Q1 and increased legal expenses due to the data center business. So those are the numbers. Paid in capital of NOK 6.9 billion.

Cash flow better than the operating income due to the reasons I mentioned just now. We have some net financing activities related to office lease payments, very small. Cash balance at NOK 130 million with a credit line around NOK 278 million cash available and 0 debt. Outlook. We have a very high focus on data center business, as you know, also on onshore wind in South Africa and BESS systems in Italy and Germany and we might look for other good BESS projects as well. But we've always tried to focus on the most attractive segments where we get the highest return.

On the portfolio, we have around 2,500 megawatts sellable. You can always sell a project, but it's always important to sell at the right time. So it's important to have cash on the balance sheet and sell at the optimal time. We have increased sellable projects. You see data center is also moving up there, 225 megawatts net, which is important. BESS system, we see demand for more than that now due to the noticeable uptick I mentioned. And feel that we have a very good diversified portfolio with high interest around all our segments. Perhaps offshore wind is sort of the most uncertain segment now. I can get back to that next quarter.

Focus ahead: 12 gigawatts portfolio, increased steadily year-over-year. We're prioritizing data center in Nordics, BESS. We're exploring 2026 listing of Magnora's data center business in engagement with Arctic Securities. This is work that's been ongoing for quite a bit now. We're maintaining strict project development and cost discipline and target 12 gigawatts by end of 2026. And we're going to execute on this market opportunity with higher focus on geopolitical uncertainty. The price range for our projects I think is around NOK 500,000 per megawatt to NOK 3 million. In South African solar and Norway, you might see prices south of that. But prices differ in markets and technology and depending on how mature they are.

With that, I'd like to thank you for your patience and listening to our presentation. We are having a lunch presentation with Arctic Securities later today. Feel free to call your broker and meet us there. We wish you a pleasant day and thank you very much for your support and listening to Magnora's Q1 presentation. Have a great day.

Good morning, and welcome to Magnora's Q4 and combined annual results report for 2025. I'm very pleased to say that we have had the highest growth ever in terms of origination. And we also entered the data center market, and we have some exciting news about the recent developments. Highlights and portfolio update. We increased our portfolio of data center, onshore wind and battery projects in attractive markets such as the Nordics, South Africa, Italy and Germany.

Our development portfolio reached 10.4 gigawatts as of February 2026. That's 60% year-over-year growth from 2024. We have over 2,500 megawatts of mature stage development opportunities, which are sellable today. We have done a strategic shift towards data centers in the Nordic and secured net 210 megawatts of data center projects across Norway and Finland, and we're excited about developments also in Sweden. Gross 315 megawatts. We established a strategy early 2025, and we executed on the strategy through the year. Today, we own an operational data center in Halden, Norway. It's called Storespeed. It's been running for 20 years. It gives us an excellent position in the market. We have established a partnership model, collaborating with real estate developers, industrial players and other landowners.

We've established a team and a development organization in Sweden with a serial entrepreneur. And we secured our first project in Finland, laying the foundation for further portfolio development in Finland. Local and international advisers have been engaged on a handful of transactions in mature stage. We currently in advanced dialogues above the 500 to 800-megawatt guided range from last year. Red Sands triggered a final milestone payment in 2025, and it became the largest BESS project to date when it was awarded in 2023 and financial close was last year, and they started shoveling in the ground in November. We also divested all shares in Hermana Holding, optimizing the group's portfolio and capital allocation towards renewables and data centers.

We have a capital-light business model, and we're a profitable developer. We have 0 debt. We have a relatively low burn, solid cash position, a credit line from Nordea in Norway, combined cash of NOK 316 million at year-end, 21% return on equity since 2020, and we returned above NOK 1 billion to our shareholders in terms of cash and shares in Hermana over the years. 26% annual average shareholder return since 2020. Currently listed on the main board of Oslo Stock Exchange with around 6,600 shareholders.

Some update on the various markets. We initiated a structured process end of last year in Italy, and we currently have 2 projects in the market of 175 megawatts, and we added 470 megawatts to the portfolio in Q4 last year. The first auction round last year in Italy, which we missed, offered 15-year fixed price agreements for operators who want to own the batteries. This is the market we develop for. Next auction is expected mid-2026. 10 gigawatt was awarded in 2025 and at least the same volume is expected in 2026.

South Africa. We have focused on cluster sales and high premium wind in terms of new origination. We engaged an adviser last year for a sales process of a 500-megawatt cluster. The interest for this created interest for more content, and we're now in more advanced discussions regarding this portfolio sale than we were in December. We're assessing opportunities also in South Africa for the data center market. Since year-end, we've added 360 megawatts of new onshore wind projects in South Africa. The onshore wind market there is very exciting because it's rare to find these good opportunities, and it has good, better premiums, much better.

At the state of nation in February 2026, this month, President Cyril Ramaphosa further unveiled the target of 50% of South Africa's electricity to come from renewables by 2030. That's a very ambitious target. Magnora has one of the largest independent development portfolios in the market with a high proportion of onshore wind assets. Our portfolio stood last week at 6,760 megawatts. Some local players believe the market will need more than 100,000 megawatts of new renewable energy by 2040. Germany, we added 650 megawatts during the quarter, a 400% increase from 150 megawatts in Q3. There is good discussions with clients and potential partners in Germany. We have engaged a very reputable adviser to help us with a structured sales process for our first BESS projects.

The regulatory environment has also been changed from first come to first served to a first ready and first served model. It favors our integrated model with local stakeholders. During 2025, we established our data center strategy with a focus on Norway, Sweden and Finland. We're considering further growth in current and adjacent markets together with partners and potential customers. We have a diversified set of projects, different sizes, locations, operational readiness and timing. Our value offering should save clients for up to 2% to 3% -- 2 to 3 years of development and reduced risk. We're harvesting on our role as a data center operator. I'll get back to that later in the presentation.

We work in collaboration with landowners, real estate players and industrial players. Back to the strategy. We initiated the strategy by launching a Swedish development team in Q3, then making an acquisition of Storespeed early Q4 and a partnership with Blix Solutions, who is a part owner in Storespeed. Then we announced our first large-scale project in Norway at the end of the year. And early in January, we announced a 120-megawatt project in Helsinki, Finland. We've also added another project in Norway recently, and we have a weekly deal flow with new land from all over the Nordics and Nord Pool area, above 1,500 megawatts of leads.

Update on other markets. New wind and hydropower struggle with permitting in Norway. No new wind permits basically since 2019. So we're cost consciously maturing our 2 gigawatt portfolio of solar PV projects in Norway. We currently have ongoing commercial discussions with a few clients. The production profile for solar PV fits really well with data center peak demand, which is typically in the summer when the temperature is above 15 degrees. In England, we have 156 megawatts of fully permitted projects, which have been designated protected and passed Gate 2 in the grid reform. According to the local grid company, we should have a grid connection around 2028. We have engaged a financial adviser to manage the interest with multiple parties.

In Scotland and ScotWind, we're advancing commercial discussions on the Talisk Wind project. This has come and been ignited by the recent order of the 1.8 gigawatt connection linked to the Western Isles, a very big investment by National Grid. Most recent government auction, AR7 resulted in 20 years contract as opposed to 15-year contracts before at the price around NOK 2.8 per kilowatt hour, quite attractive price.

So looking back at 2025, we see 60% portfolio growth over the years. So it's the highest absolute numbers we've added ever in the history of the company, and this has come on the back of reduced cost over 2025. So it shows we have a platform and that we're able to create more stuff for less money. Here, you see our portfolio across data center, solar PV, battery system, wind. And remember, we also have the earn-outs from Helios and Evolar.

So why work with Magnora and what do we do in the value chain. This is an example of data centers, but it's quite similar to onshore wind and solar PV. So the most critical items is the building permit, the zoning for the data center and the grid connection reservation date. But for end clients, it's also important to understand that the overall concept design fits with the site and that we also work with sales and clients. So for many local landowners who come from a different background, we have a complete value chain where we can handle all these issues, and we also understand regulatory compliance well. And being a listed Norwegian public company helps when you work with grid companies and municipalities because they want to know who the counterparty is that will own the project in the development stage.

And typically, it's also an advantage for the buyer to know that a Norwegian company with a strong track record has developed this project. How do we do it? We work a lot with partnering with municipalities, industrial and real estate players, local landowners or unfunded smaller development teams. And what we can offer is the complete suite of workflow streams that's needed to secure the time line of the project. So the client typically buys the time line they believe in. Our focus is on projects around the capital of around 10 megawatts and above, but typically 50 megawatt plus. If we go too big, it's hard to manage the projects and get the grid connection in due time at least.

So to showcase a little bit about our ecosystem and our competence. Peter Nygren is the founder of Arise Windpower. He worked at NCC with cooling systems and district heating systems, key processes to know when you're going to get permit for a project in Sweden and Finland, and it's increasingly important also in Norway to handle waste heat. Bjorn Drangsholt, he is the former Senior Adviser for Google and Statkraft. He worked on the 800-megawatt hyperscale center in Skien in Norway, so also very key. John Amundsen, the founder of Storespeed, is very well recognized in the Norwegian data and telecoms industry, worked for Digiplex, NATO, TETRA, Skagenfiber and has very good reputation in the market.

As a co-investor in Storespeed, we have Erik Blickst, a self-made very successful data center operator with 2 data centers in Oslo and a broadband business. So this is part of the ecosystem, working with Magnora and our network of advisers to manage and develop data center sites in the Nordics. Here is a case example of our projects in the Helsinki area in the city of Hameenlinna. Here you see a very attractive site at Hard Rock, 100 megawatt, 20-megawatt project, less than 1 kilometer from the substation, excellent connectivity with multiple players providing fiber and also district heating system well developed in the city of Hameenlinna. So all these items are important to reduce the development time for a project.

We were approved by the Finnish local government in December as a developer of this project. And it was very convenient for them and easy to approve us being a listed Norwegian company with proper ESG and good governance. Strategy is simple rules. We always try to stay with good people. We insist on early sales when we go into new business. We may have the opportunity to sell a project within the data center industry already in 2025. And we don't -- we remain agile and adaptable on the market opportunities that arise. As I mentioned, in adjacent markets and markets we're currently in, we're constantly looking at new good opportunities that fit our risk strategy model.

Financial review. You see cost came a little down in 2025. Profit and loss impacted by the Hermana revenue that flowed through Magnora after the divestment. And profit before tax ended at NOK 12.2 million, down from NOK 269 million in 2024. We have accumulated carry loss forward from the previous business, Sevan Marine of NOK 3 billion and paid in capital of NOK 6.9 billion. So remember, Magnora has been profitable since day 1 and very low cost of origination. As I mentioned, we had 60% portfolio growth at stable or a little lower operating costs, and we're very proud of that. If you look at the cash flow, the ending cash balance at NOK 166.4 million. The net financing activities impacted by the Hermana flow-through, and we had net investment activities of NOK 52.6 million.

Here's a slide about how we consolidate the portfolio companies. It's IFRS that's used, and we typically convert sales to full revenue over 0- to 24-month period depending on the project, the risk and the ready-to-build status. A little bit about the outlook. Magnora shifts financing and management attention to the segments where we get the highest return. We've done that throughout the history. We see that there are lower prices than expected in the Nordic markets. It's a safe markets where a lot of international companies like to do business. And on the back of this and the competence we have, we have focused on the data center market in the Nordics, Norway, Sweden and Finland in particular.

We have a high focus on growth in Germany and Italy on battery storage and onshore wind in South Africa. As I mentioned, we're also in the early days of looking into data center development in South Africa being 300-megawatt market today already and expected to be around 2,000 megawatts by 2030. So previously, we have guided on exact what number for the year. We have been asked to provide a table for early stage, more mature stage and mature stage projects. So consenting stage is where you get all the permits and mature stage is when the consenting is sorted out. And basically, we've come to a number around 2,500 megawatts is currently for sale or under marketing or we have already engaged advisers to sell. So that's a number you can look at 2,500 megawatts out of the 10,400 megawatts. It doesn't necessarily mean that we will close all 2,500 this year, but this is a potential.

So the factors that will determine what we will do is the achieved price, the risk on the milestone payments and various factors. Focus ahead. We believe that we can reach 12,000 megawatts, 12 gigawatts by end of year 2026. We're prioritizing data centers in the Nordics, BESS in Southern Europe, Central Europe and onshore wind in South Africa. As we mentioned in the press release in our numbers this morning, we consider strategic alternatives for further data center growth, and this has come on back of interest from market players, investors and advisers. We maintain strict project development and cost discipline in everything we do. And we execute on our mature development portfolio within renewables.

Our range achieved sales price in South Africa for combined wind, solar and BESS in the clusters is within the guided range historically from NOK 0.5 million to NOK 1.5 million per megawatt. But introducing data centers, we can see that we can have an even higher price for the -- for our development projects as data centers has much higher CapEx and it's a very good interest for data center projects currently as many people have taken notice of. So we're moving from harvesting our renewable projects, moving our growth towards higher-margin areas, faster-growing areas. With that, I would like to thank you very much for your attention. I'll be at the SB1 Markets conference later today. And if you see me, take the opportunity to chat, I'll also be holding a short presentation there. With that, I would like to thank you very much for your patience and time. We look forward to a very exciting 2026. Thank you.

Good morning and welcome to another exciting quarter in Magnora and we're pleased to introduce our acceleration of our data center project development business.

So first of all, I'm very pleased to say that Peter Nygren will be heading up our Swedish data center business development and he has experience from Arise Windpower as the CEO and founder and also a co-investor and active owner in Helios prior to the sales of Helios last year. We also acquired Storespeed in partnership with the Blix Group, a very successful local data center operator here in Oslo and the founder, John Amundsen in Storespeed, a leader in communication and the Norwegian data center industry. The team, Peter Nygren, Blix and Storespeed has decades of experience from infrastructure development and data center business. And Peter also have great experience from district heating and cooling systems from his career in NCC.

We have been approached by a dozen of developers and landowners interested in discussing our data center business with them. We have received multiple bids on our projects and we're in negotiation and discussions across wind, solar and BESS assets across the portfolio in all markets. We have also multiple dialogues with investment into our various platforms in Magnora and also our most recent data center business. We have expanded the team in Italy and we're ready to accelerate and develop and prepare for sales for next year. We have rapid acceleration in Germany where the number of prospects on track for near-term grid applications rose to 7. On the ScotWind project, we're seeing improvements in supply chain. Mingyang might establish a factory close to our site in Scotland. Also the AR7, the next CfD round will be closed around year-end. Our environmental data confirms the viability of the project.

In U.K., finally, the grid reform is set to speed up and we've increased the portfolio of the 2, 3 projects there to 158 megawatts and these projects have high market interest. The data center demand is booming and Magnora has the capabilities to deliver because what we do is very similar to the data center business. So let's look at the figures. The market is expected to grow by [ 4x ] by 2035 and double by 2030. In Europe, traditionally, the FLAP-D markets, Frankfurt, London, Amsterdam, Paris and Dublin has saturated and stagnated. Vacancies are very low and prices for real estate and grid connections are very hard to deal with. The EU, in general, lags the U.S. by 2 to 3 years. And on the right side, you see the demand from players like Amazon and Microsoft. Amazon alone will need 80 terawatt hours to develop current plants.

So let's look at Europe. Why the Nordics? So you see that the Nordics in 2024 have the lowest electricity prices all of Europe and it's been like that for decades. The share of green energy in Europe is astonishing. Norway, 99%; Denmark, 89%; Sweden, 71%, the FLAP-D markets, just 41%. So Iberia and the Nordics are soaring as very interesting place to be if you want to be in Europe. We also have cold climate. The temperature is less than 10 degrees over the year, very good fiber infrastructure, high adoption of cloud and AI in general. If we look to Norway, we've seen the different analysts estimate growth of around 5 megawatts, both in -- terawatt hours, I mean, in both Norway and Sweden over the next 4 years. So this is a very interesting place to be. The attractiveness of the region is cost competitiveness, a regulatory framework that's very good and especially in Sweden with a lot of district heating, which is important for the waste heat from data centers.

If we look on the left side, you see how you develop a renewable project, land, power connection, zoning, regulation of property and environmental and building permits, very similar. The difference is really just fiber and potentially operations of data centers. And you also have the waste heat and cooling system that's special for the data centers. But those are skills we have in-house. So now we know better how we develop good data center projects with the team we have. Let's look closer at the team, Peter Nygren, on the left side; Bjørn Drangsholt, leader who worked for decades in the power industry at Statkraft, he developed the Google project in Skien and he worked on that project for 6 years. It's one of the largest data center projects in the Nordics. You could look it up on Google. John Amundsen, he is the leader within the industry. He worked for DigiPlex, NATO with IT systems, developed the emergency network in Norway TETRA and also happened to be in the development of the Skagenfiber, fiber connection between Norway and Denmark.

And last but not least, our co-investor, Eirik Blix of Blix Group and Blix Solutions, who operate 2 data centers here in Oslo. He's a true leader within the industry. So we're trying to leverage our team, the Storespeed acquisition and our relations in Sweden and Norway. We're prioritizing Sweden with greenfield hyperscale projects. Typical range is 20 to 150 megawatts and I won't be surprised if we, not in the soon future, will close a few deals in Sweden with Peter and his team. So our lead base in Sweden is now above 1,000 megawatts and in Norway, 500 megawatts of projects. We've been approached and have approached landowners, business developers, utilities, real estate developers and data center companies. Grid companies in Norway, they prefer to work with operators. So the Storespeed acquisition is important for realizing projects in Norway.

A little bit about unit economics. If you take a well-run 1-megawatt data center, you can have revenues between NOK 20 million to NOK 40 million from that -- such a center. The EBITDA could run then between NOK 7 million to NOK 12 million per year. So Storespeed can potentially grow to 5 megawatts based on the infrastructure and the real estate we have there. So you can multiply those figures with 5. And the expansion can happen maybe through some leasing of equipment. But if you look at AI and if we would be able to retrofit that facility to AI, the revenues would be much higher and obviously, also the investment. We wouldn't do that without the customer who would pay for the investment. But the most important thing is that we have the grid connection. We have an operation there. So we think it's a very interesting asset for us to own and to grow.

Let's look at some market observations there. On the right side, you see data center load and think about a data center running at 19 megawatts. And during the summer, when temperature rise above 20 degrees, you see that the -- to run at full capacity, you would need 25 megawatts. So 30% more energy. And we have a big solar portfolio in Norway and this portfolio could fit really well for the market demand for data centers in the years to come. No one think this is really of high interest now but this figure -- chart speaks for itself. So in Norway, you have great opposition towards onshore wind because of reindeer, nature conservation and Not In My Backyard. Hydropower is also, to some degree, saturated and it has many regulatory challenges with wild reindeer there. So solar could be quite interesting for data centers in general because it's sunny at day when the temperature is the highest. And in the Nordics, you never have temperature above 20 degrees or very rarely in the night.

So little bit about the Q2 in brief for our long-term shareholders. You know this slide well. We are capital friendly. We think a lot about capital allocation. We returned NOK 1 billion to our shareholders over the last year. We always try to have a good return on our investment and stay loyal to the capital-light model. In case we do something more capital intensive on data centers, we would do that in a sister company with financial partners, so it wouldn't affect our balance sheet. Close to 7,000 shareholders and listed on Oslo Stock Exchange main board. Market for data centers, really, really high. We saw the terawatt hour estimate but we see around NOK 20 billion to NOK 30 billion per year of investments in data centers in Norway and similar in Sweden. So it's a very interesting market if you know the market well, the grid connections and have a good project team. We have NOK 192 million in cash and combined with our credit facility, NOK 342 million.

We've reduced costs somewhat in the quarter by running our operations more efficiently, 0 bank debt. So we grew the portfolio a little more modestly since we had a lot of focus on our sales processes in the quarter but also on our data center business. We expect a large pickup in the land bank in the quarter due to some signing of larger projects, in particular in South Africa but maybe also in a few of the European markets. On the right side, you see that we went from 0 to 1,500 megawatts in leads during the quarter. We started, of course, to work on this market earlier this year.

So this didn't happen from thin air. So our team has worked diligently with the market players and we've been able to establish ourselves as a partner, many would like to speak with, as an alternative to foreign companies sitting far away. So we're very happy about the leads we have today. So we have a diversified portfolio across technologies. Data centers will be a key growth driver going forward. Solar portfolio remains solid and mostly in South Africa. The battery systems, it's very, very interesting market. And you see very, very interesting developer margins in Germany, north of EUR 200,000 per megawatt.

Onshore wind, we only have that in South Africa and there you also have very solid margins for good projects. And we have focused on multiple projects for many years and we believe we have several clusters up for sales to very interesting counterparties and that we could sell 200 to 300 megawatts per year going forward into the next decade. And we also have our offshore wind projects, in particular, ScotWind and it's going to be very interesting news in the quarter about both the supply chain turbines availability from Mingyang and others and also the AR7. So working closely with multiple players in that market as we speak. Here's the portfolio update across the different regions. I think I touched on most of the items across the countries and regions. We, of course, I would like to remind all about the earn-outs from potentially the Evolar sale and also Helios Nordic Energy and we expect more projects to close there after a quiet period for some time in the Nordics, both for wind and solar.

But as data center demand picks up, we think that we see strong demand for Nordic renewable projects. I also mentioned U.K. that it's coming up and we see very strong interest from even unsolicited parties. Our business model remains the same also in data center development business, NOK 2 million to NOK 20 million per project or platform opportunity and that we should see a solid multiple of 5. We see that data center margins per megawatt might run higher than for renewable projects because it's very capital intensive, 7x more per megawatt for data centers and 20x more than for solar, even more -- even 25x. So that enables us to capture larger margin with the right project. I'll get back to that a little later in the presentation. The business model, I've gone through this many times before but for our new listeners, we develop the project, we have [indiscernible] and then we sell prior or at ready to build to our customers. An example of customers, owners you see down on the right side.

Our key deliverables are landowner agreement, grid connection, permits, technical management services, project management, even procurement management and other items. Strategy as simple rules. We will try to sell projects early on, even in the data center business. And Peter has ideas about that already. So it will be very exciting to follow. We try to focus on teams with high integrity. It's always easier to work with high integrity people, stay in early stage and diversification, Norway and Sweden. We started in Sweden. We have had very big success in Sweden before. We like the business culture, the regulatory landscape, how the grid companies operate and how the municipalities and counties. So Peter has our full attention and he is going to run fast. Examples of customers, I've mentioned before and even VINCI has branched into the data center business. So very exciting. Commerz Real and others follow suit.

And in South Africa, we see a lot of pickup in data center, interest in cables, projects from the North America running through South Africa to Australia. So many interesting initiatives. Here, you see our portfolio and which markets and which technologies we focus on. I won't spend more time on that. EBITDA, slightly improvement from Q2 and operating loss also less and no tax payable and in general, better operations, better performance, more cost focus. In general, I think it's sign of times we try to take care -- well care of our money. Operating activities, negative NOK 29 million, investment activities, last payment on our South African BESS project's financial close, dividend of NOK 12.1 million and a cash balance of NOK 192.6 million.

So due to the rare high-growth data center opportunity we see, the Board has decided to cut the regular dividend of NOK 12 million and reallocate that capital towards the high-growth opportunity we see within the data center business. We've been approached by several of our larger investors and many smaller who see this as a very interesting opportunity and we want to grow as fast as possible. We think it's a very interesting window, the next 12 to 24 months, to focus on establishing a strong and growing business in the data center space.

About consolidation, data centers will be consolidated since it's more than 50% of our business and that accounts for both Storespeed, where we expect financial close any day soon and also Magnora DC AB in Sweden. Outlook. We're working really hard on farm-down and expect sales in most markets. We see a surge of interest to partner with Magnora in the data center space, also in the BESS space. And the BESS opportunity -- sorry, the data center opportunity gives us an opportunity for recurring revenues. We're still going to be loyal to buybacks and extraordinary dividends. The group has implemented new cost control systems, which makes it easier to consolidate our financial numbers early and also track costs more on a real-time basis. So we still believe we remain on track to achieve 10 gigawatts by year-end. We have multiple large sales processes and if we're able to close some of them, we might be able to reach the 600 to 725 megawatt target. We were late in the year. So it might be a little challenge but we worked really hard to do that.

In addition, there are other ways to monetize and we constantly think about capital allocation and there's also opportunities to invite investors into our platforms and monetize that way. So we're looking very carefully into all measures. On the margin side, we've raised the potential margin for projects we sell up to NOK 3 million per megawatt based on the multiples we see in the data center space. So we don't expect to sell a data center project before Christmas but Peter might be able to pull that off for 1 smaller project but we'll see. But in general, you could expect margins up to NOK 3 million per megawatt for data centers in the Nordics going forward if you have attractive grid connections. Shareholder base remain quite similar. We've seen a few new interesting parties. We've met with real estate investors in the Nordic who are interested in looking into data center opportunities. And as we get more data center content, we think we're going to be attractive for a few of these European real estate investors since there are a few opportunities currently.

With that, I would like to thank you for your attention and I wish you have a great day. Thank you very much.