Hexagon Purus Asa · OSL:HPUR
Hexagon Purus Asa — Q2 2024 Earnings Presentation
42 slides from Hexagon Purus Asa's earnings presentation, Jul 18, 2024
Slide 1: Hexagon Purus Q2 2024
Hexagon Purus Q2 2024 18 July 2024
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: Agenda
Agenda 1 2 3 Q2 2024 FINANCIALS OUTLOOK HIGHLIGHTS AND Q&A 3
Slide 4: Highlights Q2 2024
Highlights Q2 2024
Slide 5: Key highlights from Q2 2024
Key highlights from Q2 2024 CONTINUED STRONG HYDROGEN BUSINESS SUCCESSFUL LAUNCH OF PARTNERSHIP WITH TOYOTA MOTORS REVENUE GROWTH EBITDA POSITIVE IN Q2 TERN RC-8 FOR HINO PROGRAM NORTH AMERICA MADE OFFICIAL 2024 & YEAR-TO-DATE IN NORTH AMERICA YEAR-TO-DATE BATTERY PACKS EBITDA MARGIN FOR & HYDROGEN
Slide 6: Continued strong revenue growth and profitability improvement with hydrogen business
Continued strong revenue growth and profitability improvement with hydrogen business EBITDA positive for the first half of 2024 STRONG QUARTERLY GROWTH >40% ANNUALIZED REVENUE GROWTH YOY POSITIVE EBITDA MARGIN TRAJECTORY Revenue, NOKm Last twelve months revenue, NOKm Last-twelve months EBITDA margin
Slide 7: Strong revenue growth in hydrogen infrastructure and mobility
Strong revenue growth in hydrogen infrastructure and mobility Q2 2024 YEAR-OVER-YEAR REVENUE BRIDGE | NOKM • High activity across all the hydrogen +199 infrastructure applications in the quarter (+60%) with strong growth for mobile refueling -9 and stationary storage compared to -81% -54 528 113 sam
Slide 8: Current backlog provides strong revenue visibility for 2024
Current backlog provides strong revenue visibility for 2024 with 90% of target revenue secured as per Q2 2024 Q2 2024 ORDER BACKLOG¹ (NOKM) Q2 2024 ORDER BACKLOG DISTRIBUTION (%) 1,357 1,278 OTHER 1,242 APPLICATIONS 1,147 1,007 ~18% BATTERY ELECTRIC MOBILITY⁵ ~2% SPLIT PER APPLICATION ~30% ~50% Q2 2
Slide 9: Further call-offs on existing customer agreements expected in 2024 and 2025
Further call-offs on existing customer agreements expected in 2024 and 2025 INCREASED SALES OF MOBILITY APPLICATIONS CHANGES RELATIVE ORDER BACKLOG VISIBILITY DUE TO SHORTER LEAD-TIMES HYDROGEN HYDROGEN HYDROGEN BATTERY DISTRIBUTION SYSTEMS TRANSIT BUS ELECTRIC TRUCKING ELECTRIC TRUCKING CONTRACT CA
Slide 10: The Tern RC-8 is a leading heavy-duty electric truck
The Tern RC-8 is a leading heavy-duty electric truck for regional & city use Tailormade for the North American trucking market Delivery of the first trucks expected in Q4 2024 10 www.terntrucks.com
Slide 11: Tern trucks available exclusively through Hino dealer network
Tern trucks will be available exclusively through Hino dealer network and will leverage Hino’s network ensuring total support and service Initial launch of Tern Trucks with selected dealers in California on the back of current strong zero-emission demand 11 Picture credit: Hino Trucks
Slide 12: Up to CAD 8.5m funding support from Canadian authorities
Hexagon Purus secures up to CAD 8.5m funding support from Canadian authorities for investments into battery electric vehicle technology BACKGROUND FUNDING TIMING The Commercial Vehicle Innovation Total funding of up to CAD 8.5m in Funding for planned operational & Challenge (CVIC) aims to support su
Slide 13: Supply of components to Toyota Motor North America hydrogen powertrain kits
Supply of components to Toyota Motor North America’s hydrogen powertrain kits adds to an already strong portfolio of OEMs SUPPLY OF BATTERY & HYDROGEN SYSTEMS TO… BATTERY SYSTEM WITH CAPACITY OF 247 KWH HYDROGEN SYSTEM WITH 58.8 KG/H2 AT 700 BAR …FUEL-CELL POWERTRAIN KITS FOR HEAVY-DUTY TRUCKS 13 Pi
Slide 14: New vehicle integration facility in Dallas expected in Q3 2024
New vehicle integration facility in Dallas expected to be completed in Q3 2024 14
Slide 15: Manufacturing capacity ramp-up on track
Manufacturing capacity ramp-up on track to deliver on customer demand BATTERY SYSTEMS AND VEHICLE INTEGRATION HYDROGEN MOBILITY AND INFRASTRUCTURE OTHER KELOWNA ONTARIO DALLAS WESTMINSTER KASSEL WEEZE ÅLESUND SHIJIAZHUANG A B C D E F G H BATTERY SYSTEMS & PROTOTYPE VEHICLE CYLINDER CYLINDER INFRASTR
Slide 16: Commercial deliveries of green hydrogen using distribution modules started
Commercial deliveries of green hydrogen using Hexagon Purus’ distribution modules have started at Norwegian Hydrogen’s production site in Hellesylt NORWEGIAN HYDROGEN DELIVERING GREEN HYDROGEN TO VEIDEKKE’ SITE IN KRISTIANSAND (NORWAY) 16 Picture credit: Norwegian Hydrogen
Slide 17: Financials Q2 2024
HEXAGON. ‘PURUS = of
Slide 18: Group P&L | Q2 2024
Group P&L | Q2 2024 Profit & Loss (NOK ‘000) Q2 2024 Q2 2023 YTD 2024 YTD 2023 FY 2023 • Revenue up 60% YoY in Q2 2024, driven by Total revenue 528,351 329,567 935,498 573,544 1,319,614 higher activity within the hydrogen Cost of materials 327,645 178,673 548,234 334,830 776,841 infrastructure and hy
Slide 19: Hydrogen Mobility & Infrastructure (HMI)
Hydrogen Mobility & Infrastructure (HMI) BUSINESS UNIT IN BRIEF PRODUCT PORTFOLIO AND END-USE MARKETS • Hydrogen cylinders and systems manufacturing and assembly HYDROGEN CYLINDERS in Europe (Kassel and Weeze, Germany) and the US (Westminster, Maryland). Includes the Company’s industrial gas and aer
Slide 20: HMI financial results
Hydrogen Mobility & Infrastructure (HMI) financial results REVENUE | NOKM EBITDA | NOKM Hydrogen infrastructure Hydrogen Mobility Other +69% 17 914 129 (14%) 2 1 +71% 247 (27%) 526 540 51 143 147 (10%) (26%) 66 307 (28%) (12%) 537 93 (30%) 34 (59%) -32 329 332 (11%) (61%) 180 (62%) 1% 3% -6% 0% (59%
Slide 21: Battery Systems & Vehicle Integration (BVI)
Battery Systems & Vehicle Integration (BVI) BUSINESS UNIT IN BRIEF PRODUCT PORTFOLIO AND END-USE MARKETS • Battery systems production and complete vehicle integration BATTERY ELECTRIC HEAVY-DUTY TRUCKS BATTERY SYSTEMS of battery electric and fuel cell electric vehicles for the North American market
Slide 22: BVI financial results
Battery Systems & Vehicle Integration (BVI) financial results REVENUE | NOKM EBITDA | NOKM -32% 31 -37 21 -60 -81% -69 11 -85 2 Q2 2023 Q2 2024 YTD 2023 YTD 2024 Q2 2023 Q2 2024 YTD 2023 YTD 2024 • Lower revenue in Q2 2024 versus same period last year; segment still in • Preparations for start of pr
Slide 23: Group balance sheet | Q2 2024
Group balance sheet | Q2 2024 ASSETS | NOKM EQUITY & LIABILITIES | NOKM 4,832 4,832 4,619 67 4,619 297 243 63 291 250 359 515 401 500 577 • Increase in property, plant and 611 542 equipment driven by capacity 524 expansion program 979 1,066 1,381 • Working capital increase owed to 1,434 strong reven
Slide 24: Group cash flow | Q2 2024
Group cash flow | Q2 2024 NOKm OPERATING: INVESTING: FINANCING: NOK (232)M NOK (180)M NOK (10)M • Operating losses and working capital increases main drivers of operating -422 cash flow in the quarter (-44%) 965 • Working capital increase reflects strong revenue growth in the quarter, -224 and inven
Slide 25: Outlook and Q&A Q2 2024
| Outlook and Q2 2024 HEXAGON PURUS
Slide 26: Executing on the third and final chapter of the 5-year plan
We are focused on executing on the third and final chapter of the 5-year plan CHAPTER 1 CHAPTER 2 CHAPTER 3 SECURE DEMAND BUILD OUT PRODUCTION CAPACITY SECURE PROFITABILITY • Validate the market – • Execute investment program – • Scale-up volume – increase confidence that industrial install capacity
Slide 27: Reiterating full-year 2024 and 2025 targets
Reiterating full-year 2024 and 2025 targets SHORT TERM MEDIUM TERM FULL-YEAR 2024 TARGETS FULL-YEAR 2025 TARGETS REVENUE ≥ 50% NOK 4-5 billion revenue growth year-over-year in revenue target for 2025 Significant improvement EBITDA in EBITDA margin Breakeven in 2025 year-over-year 27
Slide 28: Strong revenue visibility for 2024 with ~90% of target secured
Strong revenue visibility for 2024 with ~90% of the revenue target for this year already secured NOKm >2,000 2,000 866 1,801 SECURED 90% CURRENT GAP TO FY 2024 TARGET OF FY’24 TARGET REVENUE EXPECTED TO BE COVERED REVENUE PER BY CALL OFFS UNDER CUSTOMER Q2’24 AGREEMENTS & RECURRING CUSTOMERS 935 YTD
Slide 29: We have a clear path to the 2025 targets
We have a clear path to the 2025 targets PORTFOLIO OF STRONG MANUFACTURING REVENUE PATH TO QUALITY PRODUCTS CUSTOMER BASE CAPACITY FOOTPRINT GROWTH PROFITABILITY HYDROGEN MOBILITY & ~10X INFRASTRUCTURE1 REVENUE GROWTH SEGMENT SINCE 2020² EBITDA POSITIVE BATTERY SYSTEMS MULTIPLE TIMES & VEHICLE REVEN
Slide 30: The key priority for 2024 is to improve profitability
The key priority for 2024 is to improve profitability MAXIMIZING CAPACITY DRIVE OPERATIONAL MINIMIZE UTILIZATION IMPROVEMENTS CAPITAL SPEND 30
Slide 31: Q&A
Q&A 31
Slide 32: Appendix
APPENDIX HEXAGON PURUS
Slide 33: The global manufacturing footprint
The global manufacturing footprint G HQ A E F D B C H BATTERY SYSTEMS AND VEHICLE INTEGRATION HYDROGEN MOBILITY AND INFRASTRUCTURE OTHER A KELOWNA B ONTARIO C DALLAS D WESTMINSTER E WEEZE F KASSEL G ÅLESUND H SHIJIAZHUANG ENGINEERING CENTER VEHICLE INTEGRATION VEHICLE INTEGRATION HYDROGEN CYLINDER A
Slide 34: Strong portfolio of long-term framework agreements
Hexagon Purus has strong and diversified portfolio of long-term framework agreements across several applications supporting future growth prospects HYDROGEN DISTRIBUTION SYSTEMS BATTERY ELECTRIC MOBILITY FUEL-CELL ELECTRIC MOBILITY LONG-TERM AGREEMENT LONG-TERM AGREEMENT FOR MULTI-YEAR SUPPLY AGREEM
Slide 35: Quarterly Group revenue and EBITDA development
Quarterly Group revenue and EBITDA development +60% +13% 528 +12% 1,682 +37% 1,483 407 1,320 372 380 366 +90% 330 REVENUE 964 259 244 NOK 210 222 MILLION 159 508 94 103 52 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 FY 2021 FY 2022
Slide 36: Financial statements | Group P&L
Financial statements | Group P&L Profit & Loss (NOK ‘000) Q2 2024 Q2 2023 YTD 2024 YTD 2023 FY 2023 Revenue from contracts with customers 527,655 326,978 933,015 570,353 1,311,811 Other operating revenue 695 2,589 2,483 3,191 7,803 Total revenue 528,351 329,567 935,498 573,544 1,319,614 Cost of mater
Slide 37: Financial statements | Segments P&L
Financial statements | Segments P&L Segment Profit & Loss (NOK ‘000) Q2 2024 Q2 2023 YTD 2024 YTD 2023 FY 2023 Hydrogen Mobility & Infrastructure (HMI) Revenue from contracts with customers 525,671 304,827 911,681 537,426 1,268,493 Other operating revenue 343 1,989 1,879 2,333 6,396 Total revenue 526
Slide 38: Financial statements | Group Balance sheet
Financial statements | Group Balance sheet Balance sheet (NOK ‘000) Q2 2024 Q2 2023 FY 2023 Property, plant and equipment 1,066,078 725,778 867,212 Right-of-use assets 551,346 159,292 544,765 Intangible assets 836,304 874,545 841,672 Investment in associates and joint ventures 51,850 57,804 50,143 N
Slide 39: Financial statements | Group Cash flow
Financial statements | Group Cash flow Cash Flow (NOK ‘000) Q2 2024 Q2 2023 YTD 2024 YTD 2023 FY 2023 Profit before tax -223,612 -149,882 -390,932 -304,584 -691,310 Depreciation, amortisation and impairment 49,593 30,955 93,985 58,756 149,785 Net interest expense 58,628 3,795 104,388 9,375 13,236 Cha
Slide 40: Investor relations information
Investor relations information EXCHANGE INFORMATION SHARE TRADING STATISTICS INVESTOR BASE1 • TICKER SYMBOL: HPUR ~6,833 • ISIN: NO0010904923 • EXCHANGE: OSLO STOCK EXCHANGE NOK ~2.7bn SHAREHOLDERS MARKET CAPITALIZATION1 38.4% OWNED BY HEXAGON COMPOSITES ASA³ NOK ~10.1m DAILY TURNOVER2 52.4% FREE FL
Slide 41: Top 20 shareholders
Top 20 shareholders # SHAREHOLDER NUMBER OF SHARES HELD % OF SHARES OUTSTANDING 1 HEXAGON COMPOSITES ASA 106,296,225 38.3 % 2 CLEARSTREAM BANKING S.A. 49,982,801 18.0 % 3 Sumitomo Mitsui Trust Bank (U.S.A) 20,934,815 7.5 % 4 FLAKK COMPOSITES AS 10,268,728 3.7 % 5 MP PENSJON PK 7,280,282 2.6 % 6 Citi
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