Hydrogenpro Asa · OSL:HYPRO
Hydrogenpro Asa — Investor Presentation (March 2023)
39 slides from Hydrogenpro Asa's investor presentation, Mar 20, 2023
Slide 1: Company presentation
Pure Performance Pure Efficiency Pure Power Company presentation 20 March 2023
Slide 2: Disclaimer
Disclaimer The following applies to this document, the oral presentation of the information in this document, and any question-and-answer session that follows the oral presentation (collectively, the “Information”). By receiving and/or attending a meeting where this presentation is made and in acces
Slide 3: Agenda
Agenda I. HydrogenPro in brief II. Market outlook III. Strategy IV. Financials V. Summary VI. Appendix
Slide 4: I. HydrogenPro in brief
I. HydrogenPro in brief High-performance green hydrogen electrolysers for large-scale applications
Slide 5: Global provider of large-scale green hydrogen technology & systems
Global provider of large-scale green hydrogen technology & systems Renewables Sustainable Hydro Aviation fuel Refinery/ Decarbonization Solar Power-To-Gas Balancing the H2 grid Wind + O2 Steel Production World’s largest electrolyser Fertilizer/ Water Ammonia H2O Shipping 5
Slide 6: Our current footprint – building a global brand
Our current footprint – building a global brand HydrogenPro at a glance Manufacturing facilities and offices Aarhus, Denmark Norway R&D & Electrode manufacturing Porsgrunn: HQ and tech center Oslo: Admin office • Founded 2013 by core team with several years of experience from electrolyser industry f
Slide 7: Founded in 2013 with >10x growth since IPO in October 2020
Founded in 2013 with >10x growth since IPO in October 2020 IPO (October 2020) Q4 2022 Technology owner Value chain position Distributor & OEM1 Manufacturing capacity (p.a.) 0 MW 300 MW Backlog NOK 15 mill NOK 747 mill Active sales pipeline 1.5 GW 18.5 GW # of employees 10 1652 Listing venue Euronext
Slide 8: Active sales pipeline of 18.5 GW well-diversified across geographies and use cases
Active sales pipeline of 18.5 GW well-diversified across geograhies and use cases Pipeline by use case (MW) 18.5 GW North America Europe + MENA RoW 3 % 13 % 15 % 10 8% 15 % 5 3,5 13 % 33 % Pipeline (GW) Pipeline (GW) Pipeline (GW) SAF Refinery/Decarbonization Power-To-Gas Steel Production Fertilizer
Slide 9: HydrogenPro to establish manufacturing capacity in Texas, US
HydrogenPro to establish manufacturing capacity in Texas, US WHAT • Establishing new manufacturing capacity in Texas, US with an initial capacity of 500 MW (stage 1) with potential to scale up capacity to several gigawatts WHY • The US has become market leader on green hydrogen following the IRA, an
Slide 10: Est. capex up to $50M for 500 MW facility in Texas, US
Est. capex up to $50M for 500 MW facility in Texas, US Capital investment for 500 MW brownfield manufacturing site ($M) Additional scope 30-50 Minimum scope 10 Source: Market research. Note 1: land and building to be leased. Note 2: potential federal and state incentives not included.
Slide 11: Exclusive supplier to ACES project: the world's largest green hydrogen energy hub
Exclusive supplier to ACES1 project: the world’s largest green hydrogen energy hub • 220 MW electrolysis plant Hydropower Power • HydrogenPro has also signed a 10-year service and support agreement Electrolysers convert water into green hydrogen Excess Green Hydrogen Renewable For Large-Scale Energy
Slide 12: FEED study near completion at DG Fuels project in Louisiana
FEED study near completion at DG Fuels project in Louisiana - Final Investment Decision (FID) expected in 2023 >$500m • HydrogenPro is chosen as the supplier for high-pressure alkaline electrolysers for DG Fuels’ plant in Louisiana ~10x • HydrogenPro’s contract with DG Fuels is worth >USD 500 millio
Slide 13: II. Market update
II. Market update Substantial demand for industrial green hydrogen generation ahead of us
Slide 14: Three major market trends: size matters!
Three major market trends: size matters! 1 Demand focus on large-scale solutions; average size 10MW a few years ago, now several hundred MW per project 2 Larger end-users with higher likelihood of reaching FID 3 Green hydrogen outperforms other hydrogen sources/colours HydrogenPro strategically posi
Slide 15: Increased momentum for green hydrogen in the US
Increased momentum for green hydrogen in the US US Congress passed the Inflation Reduction Act (IRA) August 12, 2022 IRA boosts US demand for clean hydrogen1 Low carbon hydrogen2 final energy demand by end use $3/kg H2 (million metric tons per year) 1 ~6x 2025 in tax credits for producers of green h
Slide 16: Significant investment required in manufacturing capacity to meet future green hydrogen demand
Significant investment required in manufacturing capacity to meet future green hydrogen demand Green hydrogen growth in IEA Net Zero Scenario MT H2 per year 400 3 600 GW 350 300 250 2 400 GW 200 371 150 293 100 215 850 GW 124 50 53 - 18 - 2020 2025 2030 2035 2040 2045 2050 Green H2 demand Manufactur
Slide 17: III. Strategy
III. Strategy Becoming #1 provider of large-scale green hydrogen technology & systems
Slide 18: Four strategic pillars to become #1 provider of large-scale green hydrogen technology & systems
Four strategic pillars to become #1 provider of large-scale green hydrogen technology & systems Technology Global Scalability Life Cycle Leader Footprint Partner 18
Slide 19: Setting a new industry standard
Setting a new industry standard Technology Leader • The initial test of the world’s largest high-pressure alkaline electrolyser at the Herøya Industrial Park located in Porsgrunn, Norway is completed • Our single 5.5 MW electrolyser has been validated to produce 1,100 Nm3/h hydrogen at normal curren
Slide 20: HydrogenPro takes the lead role in the technology revolution
HydrogenPro takes the lead role in the technology revolution Technology Leader 1st generation 2nd generation 3rd Gen Atmospheric pressure High-pressure alkaline electrolysers developed systems developed in the in the 1920s 1960s high-pressure alkaline system based on next-generation electrode techno
Slide 21: HydrogenPro's 3rd Gen electrode technology increases efficiency and reduces OPEX
HydrogenPro’s 3rd Gen electrode technology increases Technology Leader efficiency and reduces OPEX Levelised cost of hydrogen Near-term R&D priorities to reduce end-user OPEX New hydrogen gas 3rd Gen electrode New electrolyser body purifying unit CAPEX ~25% OPEX ~75% Advanced electrodes is a game ch
Slide 22: 14% OPEX savings of 3rd Gen technology equals saving of >50% of capital cost
14% OPEX savings of 3rd Gen technology equals saving of Technology Leader > 50% of capital cost @ USD 20/MWh electricity price Total annual cost of operations Total lifetime cost over 30 years USDm 11% annual USDm USD 85m cost cost savings savings (14% OPEX 750 savings) 25 665 22 600 20 515 17 5 5 1
Slide 23: Expanding our global footprint
Expanding our global footprint Global Footprint Manufacturing Fabrication facility for capacity in Texas, US electrodes in Denmark Pillars of HydrogenPro’s global fabrication strategy: • Develop organisational flexibility to serve each individual Tianjin factory region (300MW capacity) – HydrogenPro
Slide 24: A scalable and flexible business model combined with a scalable and modular product offering
A scalable and flexible business model combined with a Scalability scalable and modular product offering Turn-key process plant Standardised core scope manufactured by Scope delivered together with partners Electro ▪ Scope delivered with large industrial partners like Mitsubishi and ABB Auxiliary ▪
Slide 25: Life cycle model increases recurring revenues
Life-cycle Life cycle model increases recurring revenues partner Increase in installed base of plant deliveries will Service & overhaul generate recurring revenues Recurring revenue ≈ Plant Lifetime delivery overhaul revenue revenue Installed plants Significant potential Remote and digital services
Slide 26: IV. Financials
IV. Financials Financial roadmap to scale up globally and generate industry-leading returns
Slide 27: Q4 2022 financials
Q4 2022 financials UNAUDITED FIGURES Revenues Adj. EBITDA1 Backlog (NOK mill) (NOK mill) (NOK mill) 25 849 747 15 -15 11 -27 -34 Q4 2021 Q3 2022 Q4 2022 Q4 2021 Q3 2022 Q4 2022 Q3 2022 Q4 2022 • Q4 2022 results impacted by R&D expenses (through increased COGS), organisational build-up to deliver on
Slide 28: Q4 2022 financials (cont.)
Q4 2022 financials (cont.) UNAUDITED FIGURES Cash balance Net investments Change in cash balance (NOK mill) (NOK mill) (NOK mill) 382 50 343 -34 -9 43 257 20 343 257 9 Q4 2021 Q3 2022 Q4 2022 Q4 2021 Q3 2022 Q4 2022 Q3 2022 Adj. Net Δ NWC Q4 2022 EBITDA investments & other • Build-up of inventory of
Slide 29: 2023 financials outlook
2023 financials outlook • Gradual step-up in revenue recognition as manufacturing activity ramps up to full capacity • Re-iterating guidance: HydrogenPro to recognise ~90% of the ACES contract revenues (>$50M) by the end of 2023 - with a positive margin impact • Working capital need to deliver on pu
Slide 30: Well positioned to scale up and generate industry-leading returns
Well positioned to scale up and generate industry-leading returns Lean and cost competitive set-up Focused capital deployment plan • Cost leadership through highly competitive • Global manufacturing & assembly capacity global manufacturing cost • Technology and innovation front-runner + • Standardiz
Slide 31: V. Summary
V. Summary State-of-the-art technology with a proven track record & strong growth drivers
Slide 32: Executive summary
Executive summary Proof-of-concept for world’s largest electrolyser Backlog of NOK 747 million & active sales pipeline of 18.5 GW as of YE 2022 Establishing manufacturing capacity in Texas, US. Global electrolysis capacity target of >5 GW p.a. within five years. Pure Performance Pure Efficiency Pure
Slide 33: VI. Appendix
VI. Appendix S\ydrogen pro
Slide 34: Record-high number of hydrogen orders being placed
Record-high number of hydrogen orders being placed Recently announced hydrogen projects and contracts Estimated required electrolyser capacity Gigawatt 3 600 January 2023 May 2022 September 2022 • Size: 120 MW • Size: 1 GW • Size: 500 MW (Phase I) Avg. annual growth of • Green hydrogen for industria
Slide 35: Executive management and Board of Directors
Executive management and Board of Directors Executive management Board of Directors Tarjei Johansen Martin Thanem Holtet Erik Chr. Bolstad Ellen Hanetho Jarle Tautra CEO CFO CCO Chair Board member Karoline Aafos Richard Espeseth Tormod Kløve Donna Rennemo Jarle Dragvik Vivian Espeseth CPO Head of BD
Slide 36: Shareholders as of March 2023
Shareholders as of 16 March 2023 Shareholder Number of shares % of shares Richard Espeseth 11,424,125 19.69 TM Holding AS 9,635,182 16.60 Clearstream Banking S.A. 7,886,879 13.59 Mistubishi Heavy Industries Ltd 5,381,165 9.27 Espeseth Vivian Yanjin Chen 3,173,571 5.47 Ctibank Europe Plc 1,600,000 2.
Slide 37: Main components in a hydrogen factory
Main components in a hydrogen factory HydrogenPro’s scope of supply Supplied by partners Current breaker Rectifier Gas separator Gas purifier 5.5 MW H2 5.5 MW Current transformer Electrolysers Buffer tank Nitrogen stripping Illustration of electrolyser system for green hydrogen production 37
Slide 38: 3rd Gen product technology and plant improvements
3rd Gen product technology and plant improvements HydrogenPro’s R&D focus areas Electrolyser Gas separator Gas purifier H2 gas at >15 bars DC Power supply CWS CWS AC Power supply AC Power supply 38
Slide 39: www.hydrogen-pro.com
‘4ydrogen pro www.hydrogen-pro.com