Hexagon Purus Asa · OSL:HPUR
Hexagon Purus Asa — Q4 2023 Earnings Presentation
41 slides from Hexagon Purus Asa's earnings presentation, Feb 13, 2024
Slide 1: Hexagon Purus Q4 2023 Presentation
HEXAGON PURUS Q4 2023 PRESENTATION 13 FEBRUARY 2023 MORTEN HOLUM, CEO SALMAN ALAM, CFO
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 FY 2023 & FINANCIALS OUTLOOK Q4 2023 AND Q&A HIGHLIGHTS 3
Slide 4: FY 2023 & Q4 2023 Highlights
FY 2023 & Q4 2023 HIGHLIGHTS
Slide 5: Important steps taken in 2023 to deliver profitable revenue growth
Hexagon Purus has taken several important and necessary steps in 2023 to deliver on profitable revenue growth in the years to come SIGNED SEVERAL LONG-TERM SUCCESSFUL TRANSFER TO THE AGREEMENTS ADDING TO MAIN LIST OF THE OSLO STOCK FUTURE EARNINGS VISIBILITY EXCHANGE MAJOR GLOBAL ENERGY COMPANY SIGN
Slide 6: Key highlights from Q4 2023 and after the balance sheet date
Key highlights from Q4 2023 and after the balance sheet date CONTINUED CONTINUED STRONG DEMAND FOR INAUGURATED NEW HYDROGEN REVENUE GROWTH IN 2023 HYDROGEN DISTRIBUTION SYSTEMS INFRASTRUCTURE FACILITY NOK YoY Q4’23 366m -2% NOK YoY FY23 1,320m +37% 6
Slide 7: Annualized revenue has grown 7x since 2020
Annualized revenue has grown 7x since 2020 HIGH ACTIVITY IN Q4 2023 LTM REVENUE GROWTH YOY STRONG ORDER BACKLOG1 NOKm NOKm -2% 1,400 +37% 1,326 NOK ~1.3 BILLION 1,320 372 366 1,300 FY’25 1,168 1,200 1,100 1,049 ~5% +90% 1,000 964 900 850 800 731 700 Infrastructure²: ~65% +182% 615 FY’24 600 ~95% Mob
Slide 8: Hydrogen distribution and on-road mobility main revenue drivers in FY 2023
Hydrogen distribution and on-road mobility main revenue drivers in FY 2023 FY 2023 YOY REVENUE BRIDGE | NOKM +356 (+37%) • Revenue growth for the full year 389 18 1,320 2023 mainly driven by increased -46 -5 sale of hydrogen infrastructure solutions 964 HIGHER ACTIVITY IN TRANSIT BUS AND HEAVY-DUTY
Slide 9: NOK 1,000m convertible bond and new partnership with Hy24
Hexagon Purus successfully raised NOK 1,000m in a convertible bond in December 2023, and established a new partnership with Hy24 RE-INVESTED A partnership with Hy24 was established as part of the December 2023 capital raise, and Mitsui and Hexagon Composites re-invested in Hexagon Purus Hy24 is the
Slide 10: Demand for hydrogen infrastructure solutions is here and now
Demand for Hexagon Purus hydrogen infrastructure solutions is “here and now” allowing for profitable growth at an early stage of industry development Hydrogen Infrastructure sales¹ Increasing scale and ~2x capacity to deliver EURm hydrogen storage 56 ~2x technology on the back of profitable growth u
Slide 11: Type 4 distribution containers are superior in most use cases
Type 4 distribution containers are superior in most use cases and are the preferred solution for bulk distribution of compressed hydrogen… Table applies to European countries with maximum gross vehicle weight of 40,000kg. MAXIMUM SIZE MAXIMUM OPERATING TARE WEIGHT NOMINAL H2 Weight for semitrailer i
Slide 12: Market-wide shift to Type 4 distribution modules is inevitable
…and a market-wide shift to Type 4 distribution modules is inevitable for almost all consumption and travel distances… RELATIVE COST OF OWNERSHIP1 TYPE 4 HYDROGEN DISTRIBUTION OFFERS THE BEST TOTAL COST OF >70% OWNERSHIP FOR ALMOST ALL CONSUMPTION AND TRAVEL DISTANCES Type 1 (steel) distribution tra
Slide 13: Doubled hydrogen distribution assembly capacity in Weeze
Hexagon Purus has doubled the hydrogen distribution systems assembly capacity in Weeze to meet rapidly growing demand from customers WEEZE, GERMANY >2x EUR ~140M High single-digit EBITDA margin in 2023 EUR ~80M EUR ~60M Expected future margin accretion driven by operational leverage and supply FY 20
Slide 14: Selected as supplier by New Flyer for fourth consecutive year
Selected as a supplier by New Flyer for the fourth consecutive year HEXAGON PURUS TO PROVIDE TYPE 4 HYDROGEN STORAGE CYLINDERS FOR NEW FLYER’S SERIALLY PRODUCED FUEL CELL TRANSIT BUS IN TOTAL, PURUS HAS DELIVERED CYLINDERS TO MORE THAN 100 NEW FLYER FUEL CELL TRANSIT BUSES 14 Picture credit: New Fly
Slide 15: Hydrogen fuel storage system to Ford Trucks prototype
Hexagon Purus to deliver hydrogen fuel storage system to Ford Trucks for their prototype F-MAX hydrogen fuel-cell electric heavy-duty truck DEVELOPMENT OF A HYDROGEN FUEL-CELL ELECTRIC HEAVY-DUTY TRUCK FOR THE EUROPEAN MARKET HEXAGON PURUS’ HYDROGEN FUEL STORAGE SYSTEM 15 Picture credit: Ford Otosan
Slide 16: Hexagon Purus' manufacturing footprint
Hexagon Purus’ manufacturing footprint G HQ A E F D B C H BATTERY SYSTEMS AND VEHICLE INTEGRATION HYDROGEN MOBILITY AND INFRASTRUCTURE A KELOWNA B ONTARIO C DALLAS D WESTMINSTER E WEEZE F KASSEL G ÅLESUND H SHIJIAZHUANG ENGINEERING CENTER VEHICLE INTEGRATION VEHICLE INTEGRATION HYDROGEN CYLINDER AND
Slide 17: Financials
~ HEXAGON PURUS ny a
Slide 18: Profit & loss statement, Q4 2023
Profit & loss statement, Q4 2023 PROFIT & LOSS (NOK 1,000) Q4 2023 Q4 2022 FY 2023 FY 2022 FY 2021 Total revenue 365,616 372,399 1,319,614 963,925 507,718 • Revenue was down 2% YoY in Q4 2023; Cost of materials 206,208 265,595 776,841 588,525 324,566 c. NOK 40m of revenue pushed into Q1 2024 Payroll
Slide 19: Revenue split by end-use application, Q4 2023
Revenue split by end-use application, Q4 2023 Q4’23 vs. Q4’22 FY 2023 NOK NOK NOK 366M 372M 1,320M • Hydrogen infrastructure applications 21% accounted for 56% of total revenue in OTHER 25% Q4 2023, and 58% for FY 2023 revenue APPLICATIONS 30% Maritime Aerospace Industrial gas 23% 17% • Mobility app
Slide 20: Balance sheet, Q4 2023
Balance sheet, Q4 2023 ASSETS | NOKM EQUITY & LIABILITIES | NOKM 3,935 3,935 3,818 3,786 3,773 3,818 3,786 3,773 165 91 210 256 78 72 67 237 222 230 • Investments in facilities and 236 173 220 268 322 production equipment is main 403 286 579 495 491 479 driver of increase in property, plant 449 438
Slide 21: Cash flow, Q4 2023 vs. Q3 2023
Cash flow, Q4 2023 vs. Q3 2023 NOKm OPERATING: -138M INVESTING: -111M FINANCING & FX: -10M -259 (-46%) • Operating losses was the main driver 566 of negative operating cash flow in the quarter -187 -7 4 52 • Working capital position reflects -105 expectations of continued strong 307 growth in 2024 -
Slide 22: Segment reporting to be introduced from Q1 2024
Segment reporting to be introduced from Q1 2024 HYDROGEN MOBILITY BATTERY SYSTEMS & INFRASTRUCTURE (HMI) & VEHICLE INTEGRATION (BVI) Hexagon Purus’ hydrogen cylinder and systems Hexagon Purus’ battery system and manufacturing business in Europe and North America vehicle integration business in North
Slide 23: Outlook and Q&A
QUID RIO AND, QEA» Tw 3: a, ‘ =f io = Fa ge WE \ ) > ome uN "HEXAGON PURUS
Slide 24: We are turning the page to the next chapter
We are turning the page to the next chapter 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 to support output and drive opera
Slide 25: Full-year 2024 and 2025 targets
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 25
Slide 26: Hydrogen infrastructure main driver for revenue growth in 2024
Hydrogen infrastructure is main driver for revenue growth in 2024 supported by ramp-up of hydrogen and battery electric mobility FULL YEAR OF VEHICLE VOLUMES TO HINO AND DAIMLER ~4,000-5,000 Revenue, NOKm FULL YEAR OF CAPACITY ≥ 50% UTILIZATION IN WEEZE & KASSEL RAMP-UP OF BATTERY INCREASE IN VOLUME
Slide 27: Backlog coverage remains high, revenue coverage decreasing
Backlog coverage remains high, but revenue coverage decreasing as a result of changing product mix Backlog and revenue (NOKbn) Backlog Expected revenue next twelve months Backlog remains strong and growing, but relative Backlog / expected revenue 65% visibility has decreased, largely due to the orde
Slide 28: Execution of contracts and operational leverage drive EBITDA breakeven in 2025
Execution of customer contracts following facility expansion and operational leverage are the key contributors to EBITDA breakeven in 2025 EBITDA breakeven WESTMINSTER 2025 2025 WEEZE Mature and growing Mature business with business with solid high single-digit EBITDA EBITDA margins in 2023 margins
Slide 29: Path to EBITDA breakeven in 2025 (1/2)
Path to EBITDA breakeven in 2025 (1/2) REVENUE TODAY PROFITABILITY TODAY RAMP-UP OPERATIONAL BY… WESTMINSTER KASSEL WEEZE STRONG WITH EXPECTATION OF HYDROGEN FURTHER MARGIN ACCRETION MOBILITY & MAJORITY AS CAPACITY UTILIZATION …Q2 2024 INFRASTRUCTURE1 AND PORTFOLIO MIX IMPROVES KELOWNA DALLAS BATTER
Slide 30: Path to EBITDA breakeven in 2025 (2/2)
Path to EBITDA breakeven in 2025 (2/2) GROUP P&L 2023 2025 MAIN LEVERS TO REACH EBITDA BREAK-EVEN IN 2025 (ACTUALS) (ESTIMATES) REVENUE 100% 100% 1 SCALE EFFECTS DRIVING OPERATIONAL LEVERAGE • Revenue expected to increase by DIRECT PRODUCTION ~3-4x 2 ~3x from 2023 to 2025, driving ~70% ~65% ∆ -5% CO
Slide 31: Improving profitability and reaching break-even in 2025 is a key priority
Improving profitability and reaching break-even in 2025 is a key priority MAXIMIZING CAPACITY OPERATIONAL MINIMIZING UTILIZATION IMPROVEMENTS CAPITAL SPEND Ramp-up of production Pushing operational Complete current capacity footprint and excellence with focus capacity expansion newly installed asset
Slide 32: Q&A
Q&A 32
Slide 33: Appendix
APPENDIX HEXAGON PURUS
Slide 34: Strong and diversified portfolio of long-term agreements
Hexagon Purus has strong and diversified portfolio of long-term 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 AGREEMENT MAJOR
Slide 35: Quarterly revenue and EBITDA development
Quarterly revenue and EBITDA development +37% -1% -2% 372 380 1 326 1 320 366 330 1 168 1 049 964 REVENUE 259 244 222 210 NOK 159 508 MILLION 94 103 48 46 53 52 33 Q1’20 Q2’20 Q3’20 Q4’20 Q1’21 Q2’21 Q3’21 Q4’21 Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 Q3’24 FY2021 FY2022 LTM LTM LTM LTM Q1’23 Q2’2
Slide 36: Financial statements | P&L
Financial statements | P&L Profit & Loss (NOK ‘000) Q4 2023 Q4 2022 FY 2023 FY 2022 FY 2021 Revenue from contracts with customers 362,904 368,550 1,311,811 958,636 505,797 Rental income 11 350 957 1,255 799 Other operating income 2,702 3,499 6,847 4,034 1,122 Total revenue 365,616 372,399 1,319,614
Slide 37: Financial statements | Balance sheet
Financial statements | Balance sheet Balance sheet (NOK '000) FY 2023 FY 2022 FY 2021 Property, plant and equipment 867,212 494,990 267,705 Right-of-use assets 544,765 152,300 52,219 Intangible assets 841,672 802,654 752,294 Investment in associates and joint ventures 50,143 33,029 7,024 Non-current
Slide 38: Financial statements | Cash flow
Financial statements | Cash flow Cash flow (NOK '000) Q4 2023 Q4 2022 FY 2023 FY 2022 Profit before tax (187,330) (133,147) (691,310) (440,898) Depreciation, amortisation and impairment 52,471 25,435 149,785 95,089 Net interest expense (303) 3,960 13,236 4,501 Changes in net working capital 1) (7,47
Slide 39: Investor relations information
Investor relations information EXCHANGE INFORMATION SHARE TRADING STATISTICS INVESTOR BASE1 • TICKER SYMBOL: HPUR ~6,948 • ISIN: NO0010904923 • EXCHANGE: OSLO STOCK EXCHANGE NOK ~2.1bn SHAREHOLDERS MARKET CAPITALIZATION1 38.4% OWNED BY HEXAGON COMPOSITES ASA³ NOK ~10.7m DAILY TURNOVER2 52.4% FREE FL
Slide 40: Top 20 shareholders
Top 20 shareholders # SHAREHOLDER NUMBER OF SHARES HELD % OF SHARES OUTSTANDING 1 HEXAGON COMPOSITES ASA 106 302 931 38.40 % 2 CLEARSTREAM BANKING S.A. 40 250 861 14.54 % 3 MITSUI & CO LTD 20 934 815 7.56 % 4 FLAKK COMPOSITES AS 10 268 728 3.71 % 5 MP PENSJON PK 8 482 071 3.06 % 6 DANSKE BANK 6 253
Slide 41: Slide 41