Hydrogenpro Asa · OSL:HYPRO
Hydrogenpro Asa — Q4 2022 Earnings Presentation
30 slides from Hydrogenpro Asa's earnings presentation, Feb 14, 2023
Slide 1: Q4 2022 presentation
Q4 2022 presentation Tarjei Johansen, CEO Martin Thanem Holtet, CFO 14 February 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. Highlights II. Financials III. Becoming #1 provider of large-scale green hydrogen plants IV. Summary V. Appendix
Slide 4: I. Highlights
|. Highlights ‘A4ydrogen pro
Slide 5: Quarterly highlights
Quarterly highlights 1 Proof of concept for the world’s largest single stack electrolyser 2 300 MW manufacturing facility upgraded and scaled to deliver on purchase orders HydrogenPro’s partner DG Fuels has secured off-take for 100% at the SAF plant in 3 Louisiana, US with electrolyser requirements
Slide 6: Setting a new industry standard
Setting a new industry standard • 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 megawatt (MW) electrolyser has been validated to produce 1,100 Nm3/h hydrogen at normal current densi
Slide 7: HydrogenPro has grown >10x since IPO (October 2020)
HydrogenPro has grown >10x since IPO (October 2020) IPO (October 2020) Q4 2022 Technology owner Value chain position Distributor & OEM 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 1651 Listing venue Euronext Growth
Slide 8: Strong foundation for further growth Key priorities 2023
Strong foundation for further growth Key priorities 2023 Complete product delivery for ACES1 Project Expand footprint Increase order backlog Secure > 1 GW additional manufacturing capacity Final verification of 3rd Gen electrode 1) Advanced Clean Energy Storage 8
Slide 9: FEED study near completion at DG Fuels project in Louisiana - FID expected in 2023
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 10: Progressing on delivery to ACES 1 project: the world's largest green hydrogen energy hub
Progressing on delivery 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 E
Slide 11: Current footprint – building a global brand
Current footprint – building a global brand Norway Porsgrunn: HQ & Oslo: Technology center Admin office Aarhus, Denmark R&D and Electrode manufacturing Boston, US Sales/admin office Tianjin, China Electrolyser manufacturing, 300 MW capacity Duisburg, Germany Sales office 11
Slide 12: II. Financials
ll. Financials ‘A4ydrogen pro
Slide 13: Q4 2022 financials
Q4 2022 financials (NOK mill) Revenues Adj. EBITDA1 Backlog Q4 2021 Q3 2022 Q4 2022 25.3 1000 849 747 800 14.6 600 11.1 -15.1 400 200 -27.4 0 Q4 2021 Q3 2022 Q4 2022 30 Sept. 31 Dec. -33.6 2022 2022 • Q4 2022 results impacted by R&D expenses (through increased COGS), organisational build-up to deliv
Slide 14: Q4 2022 financials (cont.)
Q4 2022 financials (cont.) (NOK mill) Cash balance Net investments Change in cash balance 382.3 342.8 50.4 257.0 20.2 9.2 31 Dec. 30 Sept. 31 Dec. Q4 2021 Q3 2022 Q4 2022 2021 2022 2022 • Build-up of inventory of NOK 34 mill during the quarter for manufacturing on awarded purchase orders Breakdown:
Slide 15: Focused investment plan to scale up globally and generate industry-leading returns
Focused investment plan to scale up globally and generate industry-leading returns Focused capital deployment plan Main short-term cash flow items • Global manufacturing & assembly capacity • Q1 2023: working capital to deliver on purchase orders • Technology and innovation front-runner • Payments r
Slide 16: III. Becoming #1 provider of large-scale green hydrogen plants
III. Becoming #1 provider of large- scale green hydrogen plants
Slide 17: Four strategic pillars to become #1 provider of large-scale green hydrogen plants
Four strategic pillars to become #1 provider of large-scale green hydrogen plants Technology Global Scalability Life Cycle Leader Footprint Partner 17
Slide 18: HydrogenPro takes the lead role in the technology revolution
HydrogenPro takes the lead role in the technology Technology Leader revolution 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 19: HydrogenPro technology leadership
HydrogenPro technology leadership Technology Leader PEM Alkaline Alkaline High-pressure Atmospheric High-pressure pressure 3rd Gen Plant efficiency Low Medium Medium High Suitable for renewable Yes No Yes Yes energy input Cooling need High Medium Medium Low Use of noble materials Yes No No No High p
Slide 20: 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 21: 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 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 hydr
Slide 22: Expanding our presence
Expanding our presence Fabrication facility for electrodes in Denmark Pillars of HydrogenPro’s global fabrication strategy: • Develop organisational flexibility to serve each individual Tianjin factory region (300MW capacity) – HydrogenPro, JVs, licensing, other partnership models • Dynamic, flexibl
Slide 23: A scalable and flexible business model combined with a scalable and modular product offering
A scalable and flexible business model combined with a scalable and modular product offering Turn-key process plant Scope delivered Standardised core scope manufactured by together with partners ▪ Scope delivered with Electro large industrial partners like Mitsubishi and ABB ▪ Targeting additional A
Slide 24: Life cycle model increases recurring revenues
Life cycle model increases recurring revenues Increase in installed base of plant deliveries will Service & overhaul generate recurring revenues Recurring revenue ~ Plant Lifetime delivery revenue ~ overhaul revenue Installed plants Significant potential Remote and digital services Product optimisat
Slide 25: IV. Summary
IV. Summary ‘A4ydrogen pro
Slide 26: Q4 2022 - Executive summary
Q4 2022 - Executive summary Proof-of-concept for world’s largest electrolyser Backlog of NOK 747 mill. Offtake agreements on entire volume for DG Fuels’ SAF plant in Louisiana secured. Estimated FID in 2023 - value to HydrogenPro is >USD 500 million Pure Performance Pure Efficiency Pure Power Global
Slide 27: Q&A
Q&A
Slide 28: Appendix
Appendix
Slide 29: HydrogenPro delivers large-scale green hydrogen plants
HydrogenPro delivers large-scale green hydrogen plants Renewables HydrogenPro delivers World-class R&D resulting in market leading efficiency & optimised Balance of Plant H2 Water + O2 H2O Client receives Best-in-class OPEX and CAPEX LARGE-SCALE HYDROGEN PLANTS 29
Slide 30: www.hydrogen-pro.com
‘4ydrogen pro www.hydrogen-pro.com