Photon Energy N.V. (PEN) Earnings Call Transcript & Summary

Good morning, ladies and gentlemen. Good morning. Pleasure to welcome you at Photon Energy Group earnings call for the first half and second quarter financial results for 2026. We will be guiding you through the presentation to, jointly with Stanislav Zeman, our CFO. And following the usual format, we will present you the business results of the most important segments and Stanislav will go through the financial statement, then, of course, we will spend some time discussing the group restructuring, and particularly, because the bond restructuring, which is underway, and there will be space for your questions that we will try to answer as well as we can. So starting with the business results. In the segment, which is the main driver of our EBITDA, which is Electricity Generation. As you can see, our portfolio has remained unchanged, essentially over the last 5 quarters. So we have a total installed capacity of 134.7 megawatts peak, of which the Czech and the Solar portfolio or vintage 2009 to 2011 and are selling in tricity based on feed-in tariffs. Then we have slightly above 50 megawatts in Hungary. Again, the vast majority is setting on the basis of a fee and tariff or fee tariff-type support schemes. And about 30% of the portfolio is into the [indiscernible] Merchant scheme. And then we have over 50 megawatts in Romania, where all power plants are into the [indiscernible] Market with the exception of our last power plant that is waiting for its license to be issued Faget 3, 7-megawatt power plant where we are currently selling electricity through [indiscernible] With the Romanian TSO Transelectrica. The Energy Generation result for the second quarter saw a 55% -- sorry, 10% increase year-on-year, to over 55 gigawatt hours, which was due, on one hand, to good weather in the second quarter, but also more of our Romania power plants being finally connected and generating revenues as compared to the same quarter in 2025. After the end of the second quarter in the month of July, Sahateni, which is one of our two largest power plants in Romania, in the case of Sahateni, its 7.1 megawatts peak. The license was obtained in mid-July. And the power plant started operation selling into the Romanian, day-ahead market on the 3rd of August. And we are currently waiting. As mentioned before. I mentioned [indiscernible] , which is just gigawatt peak installed capacity, finalizing a testing procedure, which is the last document we needed to file for the license. This is -- this should be finalized in the next one or two weeks until the end of August. And then we will file for the license, which, however, will lead to a shutdown of the power plant of about 45 to 50 days. And we obtain a license and are able to commence operations based on that license, which means start selling into the data ad market. And there, we have a little bit of control over timing, so we will -- as we are generating revenues through this offtake scheme, waiting for the right moment to still maximize the revenues from this power plant between now and the end of the year. In terms of the increase in generated volumes, this 10% overall was more tilted to the power plants that are working on the merchant model and that is simply explained by the fact that in the second quarter of 2025, some of the power plants were not operating at all. So this is why the growth in [indiscernible] Generation was more pronounced in the merchant part of our portfolio. And as you can see in terms of our volume, the biggest market was Hungary, followed by Romania and again, Romania because not all power plants were fully operational during the second quarter. Looking at the revenues, we have seen in the second quarter, a very healthy increase in revenues of 20.5%, which means outstripping the growth in volume. And the main driver here has been an increase in the day-ahead prices or the market prices of electricity in the second quarter compared to the same period last year. And here, the drivers were we've also seen fewer negative hours in the second quarter and the heat wave that swept through Europe and Central Europe in the second half of June has been a main driver, but we've also seen higher prices in the months before second half [indiscernible] during May. So this has led to a pronounced increase in our revenues on top or outstripping the volume increase. And if you look at the revenues by market model, here, our revenues, of course, are still extremely strongly tilted towards the part of the portfolio that is receiving its revenues based on the feed-in tariff. And here, the main driver, of course, is our Czech portfolio, where we are generating well over EUR 600 per megawatt hour compared to about EUR 120 per megawatts hour in Hungary based on the feed in tariffs and around EUR 250 megawatts hour, EUR 260 megawatts hour in Slovakia. And of course, market prices on the merchant portfolio side are significantly lower. However, you can see that the merchant section of our portfolio has grown in terms of revenue contribution in the second quarter very strongly. You can see that the realized average prices, I think -- and here, of course, Romania and Hungary are the most important ones, but there we are exposed to market prices. You can see that the prices have been higher than in the same period last year. In terms of EBITDA contribution, you can also see that this increase in revenues has translated almost 1:1 into a significant increase. So the EBITDA contribution from the investments or Energy Generation segment grew from EUR 6.3 million last year to almost EUR 7.9 million. So overall, we can say that the combination of more of our power plants finally being operational in Romania with weather conditions, but also although higher prices have led to this strong contribution of this segment to our own numbers. In the third quarter, we have seeing a continuation of the trend of higher energy prices compared to last year and in particular now during the month of August and again driven by hot weather low water levels in rivers and the partial in some cases, complete shutdown of nuclear power plants, but also coal-fired generation keeps prices at elevated levels, August particularly in our target markets, [ 100 ] in Romania, tends to have among the highest prices in the season. But this, of course, is now significantly more pronounced. You may be aware that in Romania, they had to now completely shut down the [indiscernible] Nuclear power plant, the only to power plant in the country and also in Hungary, the single nuclear patent in Hungary has had to use its production from the maximum of a normal level of 2 gigawatt to around 480 megawatts is what [indiscernible] Is contributing actually as we speak. And, this has been partially or a very large degree offset by solar generation, particularly in Hungary. But in the morning and evening hours, the gaps that have been exposed in the country profile or the supply profile either imports from other countries or now an increased level of generation from fossil fuel power plants and a significant element there is [indiscernible] And this is something we are seeing, of course, now across Europe and in other countries where the situation has led to the reduction of conventional power plants, mostly nuclear. And it also leads to another topic, which is now becoming more [indiscernible] And being covered in the news, and that is that Europe at this point in time is very significantly behind the curve in replenishing its gas reserves for the heating season. So in Germany, for example, Germany today stands at 50%. Last last year, at the end of September, Germany at 76%, which is kind of target levels set by the EU. And as things stand today, Germany will have trouble getting to 60% by the official start of the heating season, which is the first of October. So gas supplies from our point of view, will remain tense. Of course, to put the geopolitical situation, the closure of Hormuz, and on that basis, our view is that we will see strong electricity crisis during the winter season and we also expected them to feed into the next year. So coming back to the third quarter, so far, what observed now in the second quarter, that means higher prices compared to last year. We also see now in the third quarter and expect a similar scenario for the remainder of the year and the beginning of next. Moving on to our next segment, which is Technology Trading, the distribution of components. Here you can see that in terms of volumes, we have had a very strong second quarter mostly driven by an increase in modules, but also batteries. In terms the volumes have come down, the margins so low that aided actually, they've never significantly contributed to the profitability. In terms of revenues, you can see that we've been able to increase our revenues by over 50% -- 56% exactly to almost EUR 10 million. And the EBITDA contribution has been reduced year-on-year. However, that is driven by [indiscernible] We have had in our inventories, which now we've been able to largely sell off. Strong demand, and of course, this dynamic [indiscernible] We believe, will continue to [indiscernible] The growth in modules has to a very large degree mainframe, which is a market we've been focusing on quite strongly. But in this business, we're also serving customers in other core solar markets in Europe, and that would include Germany, Austria, Boltans, Poland, Romania. So it's a very international business. but our additional focus on Ukraine has been a major driver in this business volume and financial growth. And we see continued strong demand from this market as particularly now in the winter season is approaching. There's a lot of projects and significant demand for distributed generation, but also energy storage. So we -- so revenues -- very healthy, gross EBITDA down. However, I think to a one-off, the summer months has been now a little bit quiet, but for the rest of Q3, but in particular Q4, we see very strong potential and expect for the full year a significant increase in the revenue EBITDA contribution to the group compared to 2025. Another important business line for us, which we keep reiterating is the Operations & Maintenance segment. So in this area, we take care of our own power plants. But as you can see, are serving a growing asset base for third-party customers. We are the only solar O&M provided that covers the entire Sea region with Poland, Czech Republic, Slovakia, Hungary and Romania being our five core markets. And you can see that year-on-year, we have been able to increase the contracted asset base by almost 25%. And now over of the contracted volume comes from external customers and only 10%. So the [ 134 ] mentioned before, are a group internal. A very important milestone for us has been the signing of an asset management contract for the -- what we believe to be the first major battery energy system connected to the grid in the region, which is a 100-megawatt battery, where we're taking care of it as an asset manager, so not from a technical O&M point of view, but as an asset manager for one of our existing clients for whom we have been providing for several years now, [indiscernible] in Poland and Asset Management for PBS in the Hungarian market. So this 100-megawatt connected in Hungary is a major milestone for us. And this is a a service line that means asset management for both PV but the normal or the batteries is for us an extremely important growth vector going forward for our business. Financially, you can see that revenues. And here, the most important messages, these revenues are good external so they don't include also EBITDa. They think they we're representing here the group external revenues and EBITDA. So year-on-year, you can see that the increase in revenues has been more or less in line with the growth in asset volumes. So we've grown our EBITDA to EUR 1.37 million in the second quarter compared to the same period last year. The negative EBITDA has been reduced from EUR 366,000 to [ EUR 125 million ]. And again, I'm coming back to what I said before, these numbers are not external. If we included the revenues from our prior portfolio than actually the contributed EBITDA of the O&M segment for the second quarter would have been a positive EUR 543,000. So, another way of looking at this is essentially this EBITDA loss of EUR 125,000 is the cost of operating our portfolio, which is really is much higher. So the format is we exclude group internal, and with the cost base more or less unchanged because most of the costs in O&M are fixed. And therefore, we have to still negative results, but plus we look at the entire revenue base of this business line than it is already very profitable. And contributing strongly to the growth. The next segment is New Energy, which is under restructuring. And partial line down. So as you're aware, we have had to file bankruptcy for Polish subsidiary for the Energy Trading PL, which, on one hand, was a strong player in the Polish capacity market, and this is also where the reason [indiscernible] Why we had to take the step but we also held an Energy Trading license, and we're actually growing our offtake business from renewable sources quite nicely at the time when we had to file bankruptcy. So this Electricity Trading part of our business, unfortunately, is also loss. But nevertheless, until the court -- so we filed for the bankruptcy at the end of March. However, we will continue operating the business as best as we can until the court decides on our bankruptcy petition. In June, court appointed a supervisor, on likelihood then also be pointed as administrator. So basically all the steps we're taking now and the business is conducted under the supervision of this point supervisor. But nevertheless, the business continues, and we are providing the services to PSE. But at some point, and it is very difficult to have an exact timing of expectations towards the end of September, so between end of September and end of October, we realistically expect the court to decide on the bankruptcy, and there will be the moment when we will lose control and also deconsolidate this entity from our financial results. But nevertheless -- and the other significant business that we have in the New Energy segment is our Photon Energy Trading Hungary, which holds an Energy Trading license in Hungary and the Czech Republic. So the main market is Hungary, where we offtake it and sell electricity from our own power plants, third-party assets, both wind and solar and we are supplying SME customers with electricity. So looking at the business segment as a whole, you can see that year-on-year, we have managed to grow revenues from EUR 4.5 million to EUR 6.6 million, so almost half. And we have also been able compared to last year, to actually swing into a profit. So last year, in the second quarter, we lost almost EUR 1 million and the second quarter this year, the New Energy segment actually has a small but still positive contribution to our financial results. In the Engineering segment, which covers the EPC services for utility scale, but also for behind the meter, this is a segment that is currently under restructuring. Here, of course, the loss of our Australian Engineering business, which was involved in a lot of behind the meter projects, but also in last year in New Zealand, we built the 20.5 megawatt power plant in Pocono for customers. So these businesses are -- have been wound down or in the process of being wound down. So now the action is here in Europe, and we are currently restructuring this how we offer DC services, both for utility scale and behind the meter, also in the context of energy storage being more and more of a integral element of the vast majority of projects that we are in discussions of getting involved in SPC contract. So -- and going forward, of course, we expect this business line to provide a more positive contribution -- significantly more positive than what we've had in the second quarter. So the restructuring is ongoing, and we do expect a turnaround and positive contribution in the remainder of the year. To this point, I'm handing over to Stanislav to walk you through the financial results very briefly. And okay.

Thank you, Georg. So regarding financial results. As you can see on the slide, the consolidated revenues reached EUR 28.3 million in Q2 2026, this is representing a 10.4% year-on-year increase, especially revenues from the sale of electricity amounted to EUR 9.8 million, up to 20.5% year-on-year. Other revenues amount of EUR 18.5 million, up to 5.7% year-on-year. On the cost side, expenses for raw materials at consumables increased to EUR 15.4 million. As you can see, it 8.1% year-on-year. I would like to underline three points. The first is that the personnel expenses amounted roughly EUR 2.9 million. It's minus 27.7% year-on-year. And what does it mean? It's a result of lower headcount, which went down by from 307 full time equal to Q2 2025 to 198 in Q2 2026. It's minus 35.4% year-on-year. Other operational expenses amounted in EUR 3.5 million, down by [ EUR 47.6 million ] year-on-year. And why? Because it's a result of business on scaling cost-cutting initiatives, a strict budget control. Very important number is EBITDA because EBITDA amounted to EUR 5.7 million in Q2 2026 compared with EUR 2.8 million in Q2 2025, more than doubled year-on-year. Net loss of EUR 0.3 million in Q2 2026 compared to a net loss of EUR 3.2 million in Q2 2025 reflecting a significant year-on-year improvement in profitability. And the total comprehensive income was EUR 0.9 million compared to a total comparison loss of EUR 2.7 million in Q2 2025. Regarding the balance sheet. The total fixed assets amounted to EUR 225.5 million compared to EUR 224.8 million at the end of 2025. As you can see, current assets climbed to EUR 46.8 million compared to EUR 47.1 million year-end '25. Equity of EUR 51.7 million compared to a level of EUR 53.3 million recorded at 2025 due to the negative results booked in the period. The adjusted equity ratio stood at 23.2% compared to 23.8% at year-end 2025. Regarding long-term liabilities, remained stable at EUR 169.9 million compared to EUR 169.6 million at year-end 2025. And the current liabilities amounted to EUR 46.7 million, decreased by EUR 2.1 million compared to year-end 2025, balance of EUR 48.8 million. So this is the main numbers from balance sheet and cash flow. Operating cash flow, as you can see on this slide, is EUR 5.9 million compared to EUR 8.2 million in the comparable period last year. The operating cash flow despite negative profit was supported by adjustment related to the depreciation, net finance costs and changes in working capital. Investment flow was neutral at EUR 0 million, reflecting the group's disciplined capital allocation approach and restructuring strategy. Financial cash flow amounted to minus EUR 5.2 million as a result of repayment of debt and scheduled interest payment. Net cash position stood at EUR 2.4 million, total EBIT assets amounted to EUR 8.8 million.

Okay. Thank you very much. So as you can see, restructuring efforts are already showing in our results. So there's been a very significant headcount reduction. But two years ago, we were close at the level of 400 full-time equivalent. And at the moment, we are at half the level. So there has been really a significant retrenchment. Of course, it's still not the end of the road in terms of our cost reductions. As you can see, we also have business lines that are growing. So I think in the personnel side, I don't expect any material changes anymore or as dramatic as they were over the last 12 months. But of course, on other expenses, we still see some areas to further reduce our costs and trim back our cost base in line with our continuing business. So the priorities are to complete the work related to the liquidation of our Australian business. So as you know, we had to put three entities into into one administration and then ultimately into liquidation, but we also have some other remaining assets and activities, which were also in the process of winding down. And in some cases, we're talking to certain buyers or positive buyers. We are completing the asset transfer of the Yadnarie project to AGL -- so this is actually still ongoing as it is an asset deal, but the transfer itself is now relatively imminent. And the main part of our sales proceeds from this project will only materialize in 2027 when AGL make fine investment decision to proceed with this project and build it. So this is a process we are not directly involved in, but it's our understanding that all systems are go and both AGL and RayGen, the technology provider are proceeding in this direction. And this trigger for our final payment of AUD 4 million, we expect at this point in time based on the information we can interpret sometimes maybe in the third quarter of next year. Then we have, of course, the need to finish the process around the bankruptcy proceedings of Photon Energy Trading. I already elaborated on that before. So sometimes in the beginning of the fourth quarter, we need to expect the court will decide and control and, therefore, also all the support that we still have to give in terms of accounting and finance and legal [indiscernible] Give to this entity. We'll then move in the ends of the administrator, which will also relieve us from both workloads, but also costs that we're still incurring. I touched upon the reduction in headcount. You can see that this reduction has already year-on-year on a significant difference in the second quarter compared to the same period last year. This reduction head count also continues in the third quarter to some extent. But as I said before, we are now reaching a level where we -- which we actually need to sustain and grow our business in those areas that are profitable and have growth potential going forward. And of course, other office costs -- sorry, other operating costs have always been the target. And again, we keep squeezing. We have driven down our office costs, wherever it was possible but also in areas like marketing, nonessential travel, third-party services provided and administrative costs. So we keep working on this very intensively, and we're aiming for additional significant cost reduction. And whatever we can, we are actually renegotiating and we're tendering to add to the noise as possible cost base. A very important element for us and just for [indiscernible] we took on in our previous calls and our other communication is to monetize our asset base in Romania and that asset base is a combination of ratable projects, but also operating power plants. So here, we have one ongoing process for two of our operating power plants and a significant part of our relative projects. That transaction is ongoing, waiting for regulatory approval which we expect before the end of August and the potential closing before the end of September. But we are in discussions with other potential buyers for some of the other assets that we have in the Romanian market. And of course, one very significant strategic priority is to complete a restructuring process with the bondholders of our Euro Green bonds, which we have initiated by sending out the invitation at the end of July, invitation to vote. So we initiated a bondholder meeting which proposes several resolutions. One very important one is the appointment of a joint representative to treat represent the bond holders throughout the entire process of the restructuring. This is something that German bond told us according to German law are entitled to, and they could also appoint it themselves, so they [indiscernible] To a point bond holder representative, which then becomes the main gateway for us for communication with the bondholders. We have also asked -- will be asking the bond holders to provide us with a temporary waiver for the -- in relation to the publication of our 2025 annual report and audited results, which we had to postpone ultimately at the end of September, and that waiver would provide us relief on a interest rate step-up that we have in our bond conditions 1%, if we fail to adhere to our reporting obligations in time. And the third important element is that we have, we are proposing and seeking the approval of bond holders to approve a -- one of the terms and conditions that also represent a covenant. And that is the amendment of the formula for the adjustment -- for the cultivation of the adjusted equity ratio, which is a covenant for bond where at the moment we have a so-called regulatory carve-out. So there's a provision that if the adjusted equity ratio drops below the 25% stipulated in the bond, when it drops below 25% as a result of regulatory changes, then an adjustment can be made and it dropped below 25% linked to such regulatory events provides relief and it does not trigger the early termination provisions of the prospectus. This regulatory carve-out at the moment has been linked to our PV generation assets. So it's specifically aimed at PV assets that we have in our portfolio. When is bond positioned in 2021, of course, we already had experience with regulatory changes related to our solar assets in the Czech Republic, Slovakia and other markets. This is why this carve-out was phrased like this when preparing the prospectus However, our business in the meantime, has expanded, has changed, particularly after the acquisition of [indiscernible] . So we got into other segments of the energy market. And actually, the the issues we ran into in Poland in relation to the poly capacity market also related to regulatory changes. So we are asking bondholders to expand the definition and the scope of this regulatory carve-out. We've also committed to permission and independent business review, which is in the restructuring situation like ours common practice, we've committed to appointing a provider to prepare independent business review by the end of August. So this is something that we will be informing the market about shortly. And the goal of this independent business review is to provide bondholders with an independent assessment of the group's financial position at this stage, but also the business prospects and strategic possibilities and alternatives going forward. And this document and its conclusions then provide the basis for the next steps, which is a discussion and analysis and negotiation about any restructuring of the financial instrument itself, which is the green bond issued in 2021. The current outstanding volume is EUR 78.8 million. And this bond has some institutional investors, but also a very broad retail investor base. So the bond is radially widely held. And of course, one of the very important principles for us. But we believe favorably involved is that all bondholders are treated fairly in this restructuring process. As you are aware, we have not been in a position to the coupons due on the 23rd of February and on the 23rd of May, and with also infront that we would not be able to pay the coupon that is to [indiscernible] On the 30th of August. So this is -- this remains -- so these coupons are deferred and will be subject to the overall restructuring solution that we will be seeking in this process. However, we will -- we are working very hard to get back into a position to resume the payment of coupons and going forward. And at this point in time, next to the restructuring measures we're taking the monetization of our noncore assets. primarily our assets in Romania are the most important paths that we're pursuing to increase our liquidity situation so we can on the payment of bonds. So thank you very much for your attention.

And I can see that there are several questions that we will try to address. Of course, please feel free to add more questions. So I will go by the stick [indiscernible] Came in. So the first question is, according to the H1 reported companies repaying its bank loans. On the other hand, it has suspended interest payments on its bonds [indiscernible] why is this particular group of bondholders on the site being [indiscernible] In this way? Well, the the financial debt in our group is at different levels. So the level of Photon Energy, the parent company -- we have essentially two financial debts. One is a EUR 5 million financing line provided by BV and the green bond which is an unsecured instrument. The remainder of our financial debt is further down in our structure. And the vast majority of that is is actually linked to projects. So it means this project filings where the principle is that the power plants that are financed by banks, are owned by project companies, their own activities to own and operate those power plants and they provide -- and they are used as security to the financing bank. The financing Bank finances that project company or as fines in the past. And that the project company from the revenues generated by selling electricity, then repay those bonds -- sorry, those loans according to the agreed schedule in the project financing setup. And but on the other hand, this financing is on recourse, which means that if there's a problem with the specific projects, we as the equity sponsors, the one of the equity are not obliged to support -- to inject -- we're not liable for debt. So essentially, once the power line is up and running and finance in this way, things run pretty much on autopilot as long as the sun shines and so we can make sure that the power plants actually generate electricity and therefore, revenues. So there is an agreed upon repayment schedule consisting of, of course, interest payments and repayment of debt. In most cases, in an amortized schedules. And we, as the equity sponsor can extract funds in form of dividends or interest on shareholder loans or sometimes other mechanisms, either one. So in some cases, multiple points during the year. But what comes first at the project level is the repayment of the bond. So what you see in terms of repayments to banks in the financial statements but those others, this is all project financing related payments. And so it's financing is of a different nature. And of course, it is a very unfortunate situation that we have come into, at the holding level in relation to the green bond that we have not been able to pay the coupon for the reasons that we have already explained today and those previously. As you can see, we are working very hard to come back to a position where we can resume the payments. but also doing this restructuring process to come to a solution that is beneficial for partners involved and that, of course, means the bond holders. The next question is whether the RayGen investment is valuable and whether an exit is possible? While the company's further development, very strong ranges on the Yadnarie project that we developed and sold to AGL, which is also an investor in RayGen. This project is very important. It's a very important signal for the global bankability of this technology. So this project is ongoing. The company, as far as we know, is considering an additional capital increase, the support from existing shareholders seems to be strong. Of course, we are not in a position to participate in any additional capital raising. But, you also see that the pipeline of projects globally across the markets where the [indiscernible] Conditions are sufficiently strong, is growing. We see new counterparties, new investors showing interest in this technology. So it is, of course, a long path to bring to market and commercialize a technology that requires a project specifically for the technology we developed beforehand. This is something we have gone through, but we do see encouraging signs. So yes, we don't see value or others see value as well. And exit, I mean the original thought was that there would be an exit in relation to the entire company, but we are also in our situation, we are looking at ways to potentially exit before any such corporate event for [indiscernible] Itself. All I can say at this point is we are seeking ways how to potentially proceed with that. So it is, of course, one of those assets in our balance sheet that in itself is not contributing to revenues or EBITDa and, of course, proceeds from the sale of our stake in RayGen would be helpful. So it's something we're working on. And if there's any tangible results, we will, of course, inform the market. The next question is whether the proposed measures regarding the bonds have been discussed in the cost major potholders and specifically, the next question is what is the EBD's position on this, for example? So -- of course, as you can imagine, we are being approached by [indiscernible] Holders from the largest to some smaller ones. And we are trying to communicate this as much as we can, but as best as we can, but we also -- and also not divulge information, what we're discussing was very specific on [indiscernible] . You're aware that EBA is the largest bondholders. I think this is public knowledge. And of course, they're not staying silent. So yes, communications are going on with multiple bond holders. The next question is, please explain conflict of interest and that side of the balance sheet. Well, I know there's a lot of scenarios for -- I think there's very long lecture on thick books written about the conflict between equity and debt. I think our understanding and here also speak a little bit as shareholder in the company. I mean, one of the key sentence I remember from my finance classes is that when in debt, you have essentially sold the company and retained a call option. So this is essentially a situation we [indiscernible] Our goal is to get the company back from the bondholders or the debtor. So -- and in that, for me personally, I don't see a conflict, I think, when that happens. So it means if we try and ways to repay the debt, maybe in different terms and different time lines, then everybody will be happy. this is, I would say, the approach we're taking. So yes, I think there's a lot of the barriers, but all we can do now and what we're doing now is to bring the company back on track, solve the issues that have unfortunately coincided 3 very big areas, resize the company focus on what is profitable. And of course, in [indiscernible] the situation related to relation to the bond, but overall, final way how to bring the company back on track to the eventual satisfaction of all stakeholders. And of course, at the [indiscernible] In time, [indiscernible] are very important stakeholder group. And in this process, I believe that we will -- from my point of view, we are sitting in the same boat and we need to find the best way how to get to safe shore, this is essential [indiscernible] in which we are working. I come to the office every morning if that helps. And it is a significant task. However, I believe we have already made certain restructuring steps that are pointing in the right direction. We hope that the numbers we've just published are at least first -- if only small, but still right, but -- we're moving in the right direction. And of course, it's clear we need to reconfirm that in the next quarters. We need to come to a workable solution with the bondholders in this restructuring process. So that's few quarters from now will be in a much better place. So the next question is what about the debt-to-equity swap? All I can say is that, of course, in this restructuring process, this is one out of many scenarios in many cases, that were part of it. It would be just part of a much wider solution. And of course, not in this process of discussions yet and therefore, [indiscernible] Then we have a -- next question is the core report as an overdraft of EUR 4.95 million as [indiscernible] The end of September. I can say is that the solution to this is still in discussion with the finance bank. Next question is about the new owner of our former Photon Corporate Services. So all I can say is that this is an independent third-party investor bought actually two entities from us. So a holding company that has a subsidiary [indiscernible] property services. And all I can say is that we are in the process of moving that company providing some services to us with movements. -- significant time of employees into the group, but there are some services that were still has just provided. That's all I can say at this point. The next question is why bondholders are not being given the opportunity to put forward their own candidate as a joint representative? Well the bondholders according to German law, have the possibility to put forward their own candidate or candidates as long as they find a bondholder to support them can put or to buy the bonds themselves, they can put themselves forward. So this is something that this possibility exists. There is a time window where such proposals can be made and we put for vote, I think all I can say at this point is that we have given due care to make sure that the candidate point put forward. And here, it's very important to say that, this is not our candidate. So the joint representative is by law purely beholden to the bondholders. So responsible towards them, we present them, and this role is to make sure that their rights are protected. And for us, especially a joint point of contact, all we're doing here is as we issue called the bondholder meeting, we are essentially providing the venue, and we have put the vote of this candidate. According to German law, bondholders or qualifying percentage of the nominal of the outstanding bond. So [indiscernible] Holding such a I think it's 10% or 5% can call a bondholder meeting at any point in time and can put the election of a bondholder representative on the on the agenda without the involvement of us as the issuer. So here as -- of course, we also had other reasons to call the bond. We think this is something that has been, of course, logically put on the agenda. And all I can say is that due care has been given to find a candidate that has the highest possible chance to receive the the support from the bondholders that both participated or are likely to participate in the bondholder meeting. There were discussions with several people providing the service and this has come out as the one we have the best win to believe that there's a high chance that the vote will be positive. And our interest, of course, was to have such a positive representative appointed by the bondholder meeting as quickly as possible. And not to have a -- and also the way that the bondholder meeting is organized, as it is not a physical meeting, but even then there is no room for, let's say, 2-stage process. So either the candidate will get -- or if there was multiple candidates, one of them gets over 50% approval? Or at this point, there would have to be a separate and another bondholder meeting, which can take a lot of time, effort and cost to set up. So yes, due care was given to connect to select a candidate that has the chance to get the necessary support and therefore, start working as quick as possible. The next question is when exactly will the green bonus stopping paid out in the Czech Republic? How is the company prepared for the possibility of losing 50% of its revenue? So the feed in tariffs been bonus is just one of the two options is running out of the 20 years of the grid connection of the respective power plant. So in the case of our Czech portfolio, we have one power plant with 0.8 megawatt peak that we connected in the fourth quarter of 2009. So there, it will be at the end of '29. And for the remaining 1.2 megawatts, they are connected in the third and the fourth quarter of 2010. So correspondingly, that's at exactly the same day 20 years later in 2030. That's when the support -- so [indiscernible] Will cease. And yes, your analysis is correct that once this fee in tariff, which has as and will for the remainder continue being a significant driver of our EBITDA in particular, comes to an end. There will be a drop in revenues from our Czech portfolio. But the overall picture, of course, we are working on developing other business lines. And I think there's maybe a good moment to say I mean our we are obviously at a point where -- we are not in a position to execute any major CapEx. So we are not going to develop any more solar projects or best projects in Europe. We're not going to build any more power plants. It also seemed that our investment cash flow in the second quarter was 0. So our CapEx going forward will be mostly maintenance CapEx. And if it's an expansion CapEx, then it would be a car and other equipment for the cognition in O&M business that is growing. So very minor CapEx numbers going forward. Our focus from here onward is mainly services that are CapEx light or capital at where, however, we see still very significant both potential and that, of course, includes O&M. I mentioned asset management of PV, but not more and more base. There are other areas that we see in this business line, where we can provide services as cybersecurity, for example, is becoming a topic. So there we see significant growth potential. And it is a business line that has a very positive operating leverage dynamics that as it grows, it becomes -- the profitability growth is much faster than the revenue growth. So we are in all 5 markets ahead or above the breakeven point and any growth from our one have a significant imprint on our overall financials. -- we see still very good potential in the Technology business. So the compound distribution, we are revamping the EPC business that will also will have to and will contribute more in the next couple of years. And if managed properly is also -- can be run with tight working capital. So definitely, our future is CapEx light. So very much geared to our services. Well, I'm afraid to mention Photon Water, where again, the growth there will not require any significant investments, neither in terms of development or in terms of working capital. So these are the business lines we want to push. And then, of course, use the excess cash flow or the free cash flow that we will be able to generate to -- well, first, of course, service the debt. That's clear, but also to reduce our our financial leverage in the next quarters and years. This reduction that is the end of the feeding tariff, of course, in [indiscernible] , 5, 6, 7 years outlook is a king downwards. And another way is on to develop the other business lines so that we compensate for that for the cliff for that part of our business that will [indiscernible] . Well, this was the last question that we have seen here. So if there are any more questions, please come forward. Okay. Then on the basis, thank you very much for your attention and for participating in this earnings call, particularly in relation to the restructuring, there will be multiple announcements or the frequency of announcements over the next weeks and months will increase. In case of any questions, please reach out to -- particularly to the process. Please reach out to our Investors Relations department. And we're looking forward to our next call three months from now, where we believe it will be working very hard to confirm what has now been, I think, a positive uptick in the second quarter and to show you that we are back adding into the right direction. Well, thank you very much, and I wish you all a great remainder of the day. Bye-bye.