Hydrogenpro Asa · OSL:HYPRO
Hydrogenpro Asa — Q4 2021 Earnings Presentation
28 slides from Hydrogenpro Asa's earnings presentation, Feb 15, 2022
Slide 1: Q4 and Year End 2021 presentation
Q4 and Year End 2021 presentation Elling Nygaard, CEO Martin Thanem Holtet, CFO 15th of February 2022
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. 2021 highlights and achievements II. Market outlook III. Our offerings IV. Business update V. Finance VI. Summary 3
Slide 4: HydrogenPro in brief
- Founded 2013 by core team with several years of experience from electrolyser industry from Norsk Hydro - Headquartered in Porsgrunn, Norway - in brief - Core technology developed through a combination of Norwegian and Chinese electrolyser competence and experience - Owns fabrication facilities in
Slide 5: Q4 and Year End 2021 highlights
Q4 and Year End 2021 highlights BUSINESS UPDATE SALES ORGANIZATIONAL DEVELOPMENTS ▪ Owner of world-leading electrode technology ▪ Prospect pipeline from 4.9GW Q1 to 12GW Year ▪ New senior management reducing production cost of green hydrogen End significantly ▪ Strengthen Board members ▪ Contracts –
Slide 6: HydrogenPro signed large scale H2 plant contract
HydrogenPro signed large scale H2 plant contract ▪ 2nd of February 2022, HydrogenPro signed a contract >USD 50M for delivery of 40 electrolysers with Mitsubishi Power Americas, Inc. ▪ One of largest electrolyser system contracts ever placed ▪ The electrolyser system will use wind and solar energy so
Slide 7: Agenda
Agenda I. 2021 highlights and achievements II. Market outlook III. Our offerings IV. Business update V. Finance VI. Summary 7
Slide 8: Significant growth required to meet green H2 demand
Significant growth required to meet green H2 demand in IEA 2050 Net Zero Emission Scenario Source of global hydrogen production1 Required electrolyser capacity1 600 3600 500 Avg. annual growth of 400 138GW Gigawatt Mt H2 300 200 Avg. annual growth of 850 85GW 100 0.3 0 2020 2030 2050 2020 2030 2050
Slide 9: Green hydrogen is competitive with grey hydrogen in Europe
Green hydrogen is competitive with grey hydrogen in Europe Lower capex, Lower higher capex, Levelized cost of hydrogen 5 efficiency higher (excl. returns), USD/kg efficiency and up-time vs PEM 4.2 Higher efficiency 3.7 Higher gas 3.4 3.3 and CO2 price 2.3 Grey hydrogen Grey hydrogen PEM 2020 PEM 202
Slide 10: Public commitments for hydrogen in the energy transition
Public commitments for hydrogen in the energy transition ▪ Only Japan and Korea had released national hydrogen strategies to define the role of 2019 hydrogen in their energy systems, France had announced a hydrogen deployment plan Hydrogen demand 2020 – 2050, India ▪ 13 new countries have published
Slide 11: Agenda
Agenda I. 2021 highlights and achievements II. Market outlook III. Our offerings IV. Business update V. Finance VI. Summary 11
Slide 12: A focused product offering for fast global fabrication scale up
A focused product offering for fast global fabrication scale up Turn-key plant Standardized core scope manufactured by Scope delivered together with partners Electro Electrolyser Gas stacks Separator skid Auxiliary systems Life cycle support EPC A scalable business model combined with a scalable and
Slide 13: Technology advantages
Technology advantages Large-scale modular hydrogen plant and core components in the electrolyser production train ▪ High pressure alkaline technology ▪ Standardized technology for electrolyser production trains World’s largest cell-stack ▪ Plant efficiency – Compact size due to pressure and cell-sta
Slide 14: HydrogenPro's technology reduces cost of hydrogen significantly
HydrogenPro’s technology reduces cost of hydrogen significantly Higher efficiency Electricity is by far the largest cost → lower electricity consumption Hydrogen at $1.2/kg² Levelized cost of hydrogen (“LCOH”)1 Efficiency (HHV) Reduced electricity consumption ▪ 75% less cooling water needed Investme
Slide 15: Agenda
Agenda I. 2021 highlights and chievements II. Market outlook III. Our offerings IV. Business update V. Finance VI. Summary 15
Slide 16: 2021 achievements – turns 2022 into business growth
2021 achievements – turns 2022 into business growth 2021 – technology achievements 2021 – other key achievements ▪ Completed strategic moves to manufacture and deliver ▪ Purchase orders complete electrolyser systems – Purchase order for the world’s largest single stack high-pressure alkaline electro
Slide 17: 2022 sales and business growth plans
2021 achievements – turns 2022 into business growth 2022 – sales growth 2022 – business growth ▪ First of all: Contract with Mitsubishi Power America, Inc. >USD50million ▪ Global fabrication footprint and local presence ▪ Scaling-up of China manufacturing capacity to 300 MW ▪ Completing the delivery
Slide 18: Active sales pipeline of 12 GW – up 46% last quarter
Active sales pipeline of 12 GW – up 46% last quarter Active sales pipeline GW electrolyser capacity ▪ 84 active projects in pipeline1 vs. 66 as of end Q3 12.0 ▪ Up 3.8GW last quarter +7.1 GW (+145%) 1.9 ▪ Size of projects continue to increase with avg. size 8.2 of 143 MW (vs. 124 MW as of Q3 ‘21) 4.
Slide 19: Tianjin factory – Milestone in global manufacturing strategy
Tianjin factory – Milestone in global manufacturing strategy ✓ New head of the factory Jan Henrik Kuhlefelt ✓ 75% owned by HydrogenPro (HydrogenPro China company) ✓ Full control over IP and core technology ✓ Initial investment of approx. NOK48m ✓ Further up-grading of the fabrication facility with n
Slide 20: Electrode production facility located in Aarhus, Denmark
Electrode production facility located in Aarhus, Denmark ▪ Fabrication facility completed ▪ Production of electrodes ready for large orders ▪ Updated test results confirm same level of efficiency advantage, + 14% ▪ Full-scale test on H2 plant to be conducted at Herøya, Norway in April The factory fi
Slide 21: Global fabrication set-up ongoing
Global fabrication set-up ongoing ▪ Preparing for three main production hubs located in Europe, US and APAC – China production ready 2nd quarter 2022 – MOU India – preparation of setup ongoing – North. America – preparation ongoing – Europe – negotiations ongoing ▪ Dynamic, flexible and asset light
Slide 22: Agenda
Agenda I. 2021 highlights and achievements II. Market outlook III. Our offerings IV. Business update V. Finance VI. Summary 22
Slide 23: Q4 2021 financials
Q4 2021 financials (NOKm) INCOME STATEMENT Q4 2021 Q3 2021 Q2 2021 Q1 2021 FY 2021 Revenue, incl. other operating income 11.1 8.2 0.1 0.6 20.0 ▪ Revenues of NOK 11.1m (recognized in accordance Raw materials and consumables used 4.3 6.5 0.1 0.7 11.6 with “percent of completion” principle) Payroll exp
Slide 24: Robust financial position with clearly defined growth path
Robust financial position with clearly defined growth path (NOKm) BALANCE SHEET Q4 2021 Q3 2021 Q2 2021 Q1 2021 FY 2021 ASSETS Total intangible assets 65.8 61.3 59.5 56.7 55.3 Partnership strategy to fast-track build-up of Plant, machinery and equipment 22.8 16.6 11.6 2.6 2.8 Financial fixed assets
Slide 25: Agenda
Agenda I. 2021 highlights and achievements II. Market outlook III. Our offerings IV. Business update V. Finance VI. Summary 25
Slide 26: HydrogenPro is attractively positioned in fast-growing market
HydrogenPro is attractively positioned in fast-growing market HydrogenPro won large scale H2 plant project >USD50million. Growing momentum in projects and sales pipeline Technology leadership: Owner of the electrolyser technology and next-generation advanced electrodes Partnership strategy to fast-t
Slide 27: Q&A
Q&A 27
Slide 28: www.hydrogen-pro.com
‘4ydrogen pro www.hydrogen-pro.com