Hexagon Purus Asa · OSL:HPUR
Hexagon Purus Asa — Investor Day (May 2022)
65 slides from Hexagon Purus Asa's investor day presentation, May 10, 2022
Slide 1: Capital Markets Day 10 May 2022
10 May 2022 ~-s. Morten HoLum, CEO _ IER, CF
Slide 2: Disclaimer and important notice
Disclaimer and important notice This company presentation (the “Presentation”) has been prepared by Hexagon Purus ASA (“Purus” or the “Company”). The Presentation has not been reviewed or registered with, or approved by, any public authority, stock exchange or regulated marketplace. The Company make
Slide 3: Today's presenters
Today's presenters Morten Holum President and CEO * CEO of Hexagon Purus since the carve- out from Hexagon Composites in 2020 + Former CEO of Saferoad Group + Previously held senior management positions at Norske Skog, Hydro and American Airlines Michael Kleschinski EVP Light Duty, Di ution & Cylind
Slide 4: Agenda
Slide 5: Introduction
INTRODUCTION » om fe: 7 OF sees HEXAGON i spe : Oat PURUS,
Slide 6: The green shift at a tipping point with several decades of growth
a re Corporate UPDATE P mcg $3 : SNe The-gréen, S| Mietipping point with several decades of growth Improve the quality of life and reduce pollution in cities and local communities Decarbonize industry and mobility applications to limit global warming Access to independent energy supply to limit depe
Slide 7: Enables diversification of energy gases through local production
Enables diversification of energy gases through local production reducing dependence on unreliable suppliers of carbon-based energy
Slide 8: 75% reduction in global GHG emissions from transport by 2050
1 ‘CorPorATE UPDATE 75% reduction in global GHG emissions from transport sector by 2050 is required to reach the 1.5 degrees ambition WORLDWIDE GREENHOUSE GAS (GHG) EMISSIONS BY SECTOR, GT CO2-EQ (1.5°C SCENARIO) 41 Transportation is responsible for almost 20% of global CO2 emissions 18 8 is 7 19 20
Slide 9: Complementary technology solutions drive decarbonisation across mobility end markets
1 Corrorare Uppate Hexagon Purus’ complementary technology solutions drive decarbonisation across all mobility end markets MOBILITY APPLICATIONS ENERGY STORAGE AND FULL VEHICLE INTEGRATION A KEY PIECE IN THE ZERO EMISSION MOBILITY AND DECARBONIZATION PUZZLE INFRASTRUCTURE HYDROGEN DISTRIBUTION MODUL
Slide 10: Hydrogen and batteries are complementary zero-emission technologies
1 Corporate UPDATE Hydrogen and batteries are complementary zero-emission technologies across segments Complementary technologies across segments COMPLEMENTARY TECHNOLOGIES FUEL CELL (FCEV) S Payload capacity aiplnes @ Efficiently utilizing green Shipping? g energy to improve resource usage Faster r
Slide 11: Hexagon Purus in the renewable energy and zero emission value chain
1 Corporate UPDATE Hexagon Purus plays an important part in the renewable energy and zero emission value chain I “HEXAGON Pant Clear position the value chain { KEY COMPETITIVE ADVANTAGES ENERGY PRODUCTION: ENERGY HYDROGEN / ELECTRICITY SOURCE HYDROGEN f ELECTROLYZER iP = SA @® H, ELectRICITY GRID ae
Slide 12: Leading provider of hydrogen and battery electric technology
1 Corporate UPDATE Hexagon Purus is a leading provider of hydrogen and battery electric technology for zero-emission mobility COMPONENTS High-pressure, lightweight Type 4 hydrogen cylinders Leading cylinder technology supported by a fine-tuned and scalable production setup Suitable for a vast variet
Slide 13: From NASA space mission in the 60s to technology leader
1 Corporate UPDATE Longstanding experience from the NASA space mission in the 60s, to becoming a technology leader driving hydrogen and battery innovation Hexagon Purus ..of composite pressure ..of hydrogen ..of system integration is built on... vessel experience... experience and... know-how r 2016
Slide 14: Early-stage cryogenic tank technology for liquid hydrogen
14 BUILDING EARLY-STAGE CRYOGENIC TANK TECHNOLOGY FOR LIQUID HYDROGEN ON SUPERIOR AND DIFFERENTIATED LNG TECHNOLOGY REVOLUTIONARY CRYOGENIC STORAGE TECHNOLOGY Vv Vv Vv THE TRANSACTION BRINGS EARLY-STAGE EXPERTISE IN LIQUID HYDROGEN TANK TECHNOLOGY FOR ZERO EMISSION MOBILITY APPLICATIONS POTENTIAL FU
Slide 15: Customer quote on practical experience
1 “Hexagon Purus is the company with the most practical experience with the application of the technology” HEXAGON PURUS
Slide 16: Hydrogen distribution systems
0 Hydrogen distribution systems HEXAGON PURUS
Slide 17: Hydrogen transit buses: hydrogen cylinders
Hydrogen transit buses Om Hydrogen cylinders NEW FLYER Sa xcelsior CHARGE H2" FUEL CELL-ELECTRIC AND ZERO-EMISSION a. 7 HEXAGON DO purus
Slide 18: Hydrogen transit buses: hydrogen systems
Qc —— ee ~ = Hydrogen transit buses — >» Hydrogen | systems
Slide 19: Heavy-duty applications: hydrogen and battery systems
Qc Heavy-duty applications @ TOYOTA Hydrogen and = battery systems 19 (HEXAGON PURUS
Slide 20: Heavy-duty truck applications: battery systems
20 1 Corporate UPDATE Heavy-duty truck applications DAIMLER “a1 Battery systems = sane eee HEXAGON PURUS
Slide 21: Hydrogen storage systems for rail applications
OO Hydrogen storage systems for Hydrogen raillapplications systems
Slide 22: Maritime hydrogen systems
gg VARD aucuaoee systems
Slide 23: Hydrogen cylinders: aerospace applications
1 Corporate UPDATE Hydrogen cylinders Aerospace applications HEXAGON PURUS
Slide 24: Positioned to benefit from leading positions in several application areas
1 Corrorare Uppate Hexagon Purus is ideally positioned to benefit from market leading positions in several application areas 2025 2030 TODAY SEGMENTS THAT ARE ALREADY AT COMMERCIAL STAGE SELECTION OF SEGMENTS EXPECTED AT COMMERCIAL STAGE IN THE NEAR TO MEDIUM AND LONGER TERM HYDROGEN TRANSIT BEV FCE
Slide 25: Technology leader in hydrogen and battery systems
1 Corporate UPDATE Hexagon Purus is a technology leader in hydrogen and battery systems CATEGORY HYDROGEN BATTERY SYSTEMS KEY TAKEAWAYS * H, Type 4 cylinder champion with broad experience, deep know-how and production at competitive price point Product * Strong performance of battery systems far abo
Slide 26: Early mover validated by major customer wins and recurring business
1 Corporate UPDATE Early mover with unique market position validated by major customer wins and recurring business SELECTION OF MILESTONE COMMERCIAL AGREEMENTS TO BE EXECUTED IN THE COMING YEARS i) NIKOLA BATTERY SYSTEMS FOR MAJOR i HIN o ‘SERIAL SUPPLY OF HYDROGEN ir Liq uide COMMERCIAL TRUCK OEM S
Slide 27: Significant top line growth expected to continue into 2025
1 Corrorare Uppate Competitive position in a growing market has led to significant top line growth, expected to continue into 2025 and beyond NOKm ~4,000-5,000 ~75-80% OF TARGETED 2025 REVENUE IS EXPECTED TO BE DRIVEN BY ANNOUNCED LONG-TERM AGREEMENTS Recent commercial wins have significantly secure
Slide 28: Addressable market to grow more than 10x by 2030 to USD ~24bn
1 Corporate UPDATE Addressable market is expected to grow by more than 10x by 2030 reaching USD ~24bn HEXAGON PuRUS’ TOTAL ADDRESSABLE MARKET USDbn Gi Battery systems and electrical drivetrain integration’ @ [Hydrogen cylinders and systems [eae 2022 2023 2024 2025 2026 2027 2029 2028 2030 VEHICLE AD
Slide 29: Entering next phase of industrial scale-up
1 Corporate UPDATE Entering next phase of industrial scale-up — owe ce Strategically located close to Europe's largest auto producers, s major European OEMs and fleet Local production to ensure 2 operators customer proximity and qiality bi control in response to the strong battery demand in the US S
Slide 30: Agenda
| Corporate update Morten Holum, President & CEO Hydrogen cylinders and systems Michael Kleschinski, EVP Light Duty, Distribution & Cylinders Heavy duty truck applications Todd Sloan, EVP Systems Financials and outlook Dilip Warrier, CFO —
Slide 31: Hexagon Purus in the renewable energy and zero emission value chain
2 HYDROGEN CYLINDERS AND SYSTEMS Hexagon Purus plays an important part in the renewable energy and zero emission value chain Clear position in the value chain I “HEXAGON Panu ENERGY PRODUCTION: ENERGY HYDROGEN / ELECTRICITY SOURCE HYDROGEN 4 ELECTROLYSER y PR © H, wp 1) MDV and HDV only; 2) MDV = Me
Slide 32: Cylinders, storage systems and end-use applications
2 HYDROGEN CYLINDERS AND SYSTEMS Hexagon Purus plays an important part in the renewable energy and zero emission value chain CYLINDERS MOBILITY ENERGY INFRASTRUCTURE STORAGE SYSTEMS A RANGE OF END-USE APPLICATIONS Ee ne a Stationary Distribution Storage 32 (HEXAGON PURUS Mobile Refuelling MDV/HDV Tr
Slide 33: High-pressure Type 4 cylinders
Guus CYLINDERS HEXAGON PuRUS' HIGH-PRESSURE TYPE 4 CYLINDERS (1) Carbon fiber composite Contains the high internal pressure : 4 . . e Polymer liner - Creates the barrier for the q } a J compressed hydrogen gas \ “' ; e ‘ C3) Valve interface Provides interface to the hydrogen system (3) ds a © NON-CO
Slide 34: Distribution module
Guus INFRA. — DISTRIBUTION HEXAGON PuRUuS' DISTRIBUTION MODULE Steel frame Structure of the distribution system containing and protecting the cylinders for on-road and intermodal operations Type 4 cylinders Container for the compressed hydrogen up to 500 bar pressure designed and approved for transp
Slide 35: Stationary storage
35 INFRA. — STORAGE HEXAGON PURUS' STATIONARY STORAGE Steel frame Structure of the storage system containing and protecting the cylinders in stationary operations Type 4 cylinders Container for the compressed hydrogen up to 1,000 bar pressure designed and approved for stationary applications Gas con
Slide 36: Mobile refueling systems
Guus INFRA. — REFUELING HEXAGON PURUS' MOBILE REFUELING SYSTEMS © Mobile refueler @ cooling Mobile solution for on-site refueling up to 350 bar pressure Pre-cooling of compressed hydrogen to te ] Tank container increase fueling efficiency of vehicles Swappable transportation solution flexible up to
Slide 37: Mobility on road: heavy-duty applications
37 MoBIiLiTy — ON ROAD HEXAGON Purus’ HEAVY-DUTY APPLICATIONS Type 4 cylinders > > v > > Vv 350-700 bar pressure cylinders Up to 9.8 kg hydrogen per single cylinder (larger capacities in development) Compliant with EC79 / HGV2, UNECE-R134 in development Type 4 hydrogen systems Customizable to OEM pl
Slide 38: Mobility on road: transit bus applications
38 MoBIiLiTy — ON ROAD HEXAGON PURUS’ TRANSIT BUS APPLICATIONS Type 4 cylinders > > > Vv 350 bar pressure cylinders Up to 7.5 kg hydrogen per single cylinder Compliant with EC79, UNECE-R134 in development Type 4 hydrogen systems Standardized solutions that are adaptable for bus OEMs Longitudinally r
Slide 39: Rail applications
39 HEXAGON PURUS’ RAIL APPLICATIONS MobiLity — OFF ROAD Type 4 cylinders > > 350 bar pressure cylinders Compliant with major railway standards Type 4 hydrogen systems > > Rooftop or rail cart installation More than 200 kg H, on board storage Including fuel management systems Increased system robustn
Slide 40: Maritime applications
40 HEXAGON PURUS' MARITIME APPLICATIONS MobiLity — OFF ROAD Type 4 cylinders > > > 250-380 bar pressure cylinders Up to 32 kg hydrogen per single cylinder Compliant with US Coast Guard, with additional standards under development Type 4 hydrogen systems Fixed installation over and below deck Swappab
Slide 41: Addressable hydrogen market to reach ~USD 20bn in 2030
2 HYDROGEN CYLINDERS AND SYSTEMS Addressable hydrogen market is expected to reach ~USD 20bn in 2030, corresponding to a ~20x increase relative to 2022 HEXAGON PuRUS’ TOTAL ADDRESSABLE HYDROGEN MARKET USDbn " HYDROGEN VEHICLE Desay ADOPTION RATES IN 2030 @ Hydrogen distribution Stationary refueling :
Slide 42: Scaling capacity to deliver on hydrogen growth plan
2 HYDROGEN CYLINDERS AND SYSTEMS. In process to scale capacity to deliver on hydrogen growth plan a WESTMINSTER — KASSEL — WEEZE g SHUIAZHUANG ENGINEERING & CYLINDER HYDROGEN CYLINDER ENGINEERING HYDROGEN SYSTEM ENGINEERING AND ANC Ee sores MANUFACTURING FACILITY AND PRODUCTION HUB ASSEMBLY HUB ASSE
Slide 43: Hydrogen Type 4 cylinder system cost expected to decrease
2 HYDROGEN CYLINDERS AND SYSTEMS Hydrogen Type 4 cylinder system cost expected to decrease over time COST IMPROVEMENT LEVERS FOR MDV/HDV Type 4 CYLINDER SYSTEMS (700 BAR) ———_ => © Current MDT/HDT system Design & Process Scale & Automation Standardisation & Target MDT/HDT system price (250 systems p
Slide 44: Agenda
| Corporate update Morten Holum, President & CEO Hydrogen cylinders and systems Michael Kleschinski, EVP Light Duty, Distribution & Cylinders Heavy duty tru Todd Sloan, EVP Syste: ancials and outlook lip Warrier, CFO HEXAGON PURUS
Slide 45: Hexagon Purus in the renewable energy and zero emission value chain
3) HEAVY DUTY TRUCK APPLICATIONS: Hexagon Purus plays an important part in the renewable energy and zero emission value chain ] “HEXAGON Clear position in the value chain ENERGY PRODUCTION: ENERGY HYDROGEN / ELECTRICITY SOURCE HYDROGEN MOBILITY APPLICATIONS EI HYDROGEN CYLINDERS AND / LECTROLYSER Fi
Slide 46: ~60 years' energy integration experience and in-house development
3 HEAVY DUTY TRUCK APPLICATIONS ~60 years’ energy integration experience and in-house development 60+ years’ expertise in safe energy storage and integration expertise HEXAGON /Agility” More than 1 billion miles on-road record with CNG systems, and 1.3M+ miles 46 ~100k upfitted CNG/BEV/FCEV trucks o
Slide 47: Transition to battery pack and powertrain integration specialist
3 47 HEAVY DUTY TRUCK APPLICATIONS Experience and competence enabled efficient transition in becoming battery pack and powertrain integration specialist 2016 2016 2021 2022 Agility Fuel Solutions _ First battery system 1M miles driven with 1.3M miles driven with are “el rer" commencing Purus' batter
Slide 48: Battery systems and full vehicle integration: empty chassis
Qcu==== Cuassis PURUS DELIVERS BATTERY SYSTEMS AND FULL ELECTRIC VEHICLE INTEGRATION STEP 1 - EMPTY CHASSIS FROM OEMs Powered by Hexagon Purus > Chassis arrives without powertrain > Integration done @OEM or @HPUR > Chassis is prepared for electrification > Contracts either for battery/hydrogen syste
Slide 49: Installation of battery pack
3 _ HEAVY DUTY TRUCK APPLICATIONS PURUS DELIVERS BATTERY SYSTEMS AND FULL ELECTRIC VEHICLE INTEGRATION STEP 2 — INSTALLATION OF BATTERY PACK 49 BATTERY PACK BEV/FCEV Propack™ Up to 330kWh per pack > > v v v Often 2 packs for Class 8 applications = 660kWh, smaller ~200kWh for Class 8 FCEV's Modular d
Slide 50: Installation of auxiliary module
3 _HEAVYDUTY TRUCK APPLICATIONS. PURUS DELIVERS BATTERY SYSTEMS AND FULL ELECTRIC VEHICLE INTEGRATION STEP 3 — INSTALLATION OF AUXILIARY MODULE ACCESSORY MODULE Accessory drive module > > > Vv Vv 50 Modular system installs in minutes Strong IP HVAC, Pumps, Compressors, DCDC = everything that used to
Slide 51: Installation of power electronics
3 _ HEAVY DUTY TRUCK APPLICATIONS PURUS DELIVERS BATTERY SYSTEMS AND FULL ELECTRIC VEHICLE INTEGRATION ‘STEP 4 — INSTALLATION OF POWER ELECTRONICS POWER ELECTRONICS 51 BEV eProCab™ > Depending on application, power electronics either between frame rails or in vertical system behind the cab v Easy ma
Slide 52: Installation of 3rd party components
3 _ HEAVY DUTY TRUCK APPLICATIONS PURUS DELIVERS BATTERY SYSTEMS AND FULL ELECTRIC VEHICLE INTEGRATION STEP 5 — INSTALLATION OF 38° PARTY COMPONENTS 3RD PARTY COMPONENTS, eAxle or eMotor > One or more eAxle(s) or eMotor(s) installed onto chassis v Software development and validation completed by HPU
Slide 53: Fuel cell electric vehicle integration
3 _HEAVYDUTY TRUCK APPLICATIONS. PURUS DELIVERS BATTERY SYSTEMS AND FULL ELECTRIC VEHICLE INTEGRATION 53 ‘STEP 6 — FUEL CELL ELECTRIC VEHICLE INTEGRATION FUEL-CELL APPLICATIONS. 1] BEV to FCEV > > > > > > Build BEV with = 200 kWh ProPack™ = eAxle(s) * Auxiliary module Add H-ProCab™ Hydrogen Storage
Slide 54: Addressable battery market to reach USD ~4bn by 2030
3 HEAVY DUTY TRUCK APPLICATIONS Addressable battery market expected to reach USD ~4bn by 2030, with BEV accounting for ~90% of 2030 revenue due to larger battery sizes HEXAGON PURUS' TOTAL ADDRESSABLE BATTERY MARKET IN NORTH AMERICA USDbn Ag BATTERY ADOPTION ‘ RATES IN 2030 ES 6s 2022 2023 2024 2025
Slide 55: Overview of the Kelowna manufacturing facility
Overview of the Kelowna manufacturing facility Vancouver oe Canada/USA Border Please click here to see a video of the facility 55 HEXAGON PURUS
Slide 56: Strategically positioned manufacturing sites close to customers
3 HEAVY DUTY TRUCK APPLICATIONS Strategically positioned manufacturing sites in close proximity to customers MULTIPLE LOCAL MICRO-MANUFACTURING SITES FEW GLOBAL GIGA-MANUFACTURING SITES = Production in close proximity to customers = Increased economies of scale in production = Manufacturing sites so
Slide 57: Commercial vehicle battery pack cost expected to decrease
3 HEAVY DUTY TRUCK APPLICATIONS Commercial vehicle (Truck/Bus) battery pack cost expected to decrease over time ENERGY BATTERY PRICE COMPARISON 2020-2030 ACROSS SEGMENTS, USD/KWH DRIVERS FOR Cost REDUCTION BEV PASSENGER CAR AVERAGE Truck/Bus! (60%) (30%) =| 2020 2025 2030 2020 2025 2030 © Cell Pack
Slide 58: Agenda
Slide 59: Reiterating 2022 revenue and EBITDA guidance
4 Financiats AND OurLOoK Reiterating 2022 revenue and EBITDA guidance 2022 REVENUE GUIDANCE 2022 EBITDA GUIDANCE NOkm EBITDA 2021A EBITDA 2022E + 508 EBITDA losses expected to widen by ~1.5x compared to. 2021 2021A 2022E Et) (HEXAGON PURUS
Slide 60: Capital deployment priorities
4 Financiats AND OurLooK Capital deployment priorities Grow revenue Will require substantial working capital Revenue target (NOK) 4-5 billion in 2025 60 — 1)2030 target ambition ait Scale up Scaling organization to support production, engineering, infrastructure, and backbone functions 450 FTEs (as
Slide 61: Profitability improvements driven by scale-up and operating leverage
4 Financiats AND OurLooK Profitability improvements will be driven by manufacturing scale-up and operating leverage ESTIMATED EBITDA MARGIN Breakeven @ in 2025 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 40% / 60% of profitability improvement from cost reduction / (x) operating leverage 6
Slide 62: NOK 750-800m net CAPEX required through 2024
4 Financiats AND OurLOoK NOK 750-800m net CAPEX required through 2024 to achieve capacity for 2025 revenue target % DISTRIBUTION OF CAPEX THROUGH 2024 CAPEX DETAILS > Assumes Weeze facility capacity expansion ~25% ~5% ——————*100% partially funded by external debt ~10% ey > Excludes: on = Expected ex
Slide 63: HEXAGON
HEXAGON PURUS
Slide 64: Key summary
=e ‘Key’summary. high Global and scalable manufacturing footp: transformational growth
Slide 65: Q&A