Hexagon Purus ASA · OSL:HPUR
Hexagon Purus ASA — Q4 2020 Earnings Presentation
39 slides from Hexagon Purus ASA's earnings presentation, Feb 16, 2021
Slide 1: 16 February 2021
16 FEBRUARY 2021 Morten HOLuM, CEO — DILIP WARRIER, CFO HEXAGON PURUS
Slide 2: Disclaimer and important notice
Disclaimer and important notice This company presentation (the “Presentation”) has been prepared by Hexagon Purus AS (“Purus” or the “Company”). The Presentation has not been reviewed or registered with, or approved by, any public authority, stock exchange or regulated market place. The Company make
Slide 3: Agenda
Agenda HEXAGON PURUS HIGHLIGHTS FROM FINANCIALS OUTLOOK AND Q&A IN BRIEF Q4 2020 PURUS 3 (HEXAGON
Slide 4: Hexagon Purus in brief
Hexagon Purus in brief HEXAGON PURUS
Slide 5: Driving the hydrogen transition
Driving the hydrogen transition Zero emission Hexagon Purus is a global leader in key technologies needed for zero emission mobility (HEXAGON PURUS
Slide 6: The need for decarbonization
The need for decarbonization drives tighter carbon emissions standards and clean mobility incentives Large number of Global investments countries shifting towards committing to green energy & "new green zero emission deal" programs technologies HEXAGON PURUS
Slide 7: Hydrogen is in the fast lane as a key zero emission solution
..and hydrogen is in the fast lane as a key zero emission solution —> Hydrogen is necessary to decarbonize “hard-to-abate” sectors ~~. oa . ODER a tr temo = ; ae Cost of = cee i EU is investing up hydrogen is aaa toEUR470bnin =~ projected to renewable decrease by up hydrogen by 2050 to 50% by 2030 \
Slide 8: Key levers to drive hydrogen adoption are moving in the right direction
HEXAGON PURUS SX Pouicies AND REGULATION th HYDROGEN TCO. =) INFRASTRUCTURE ce «MULTIPLIER» EFFECT Key levers to drive hydrogen adoption are moving in the right direction + National decarbonization * Cost of renewable energy and * Infrastructure roll-out is + Major industrial companies targets is th
Slide 9: Sizeable market opportunity — hydrogen cylinder market
Sizeable market opportunity — hydrogen cylinder market expected to exceed USD ~7bn Hexagon Purus’ addressable hydrogen cylinder and cylinder systems revenue pool | USDbn! mm other -&> HYDROGEN VEHICLE Addressable market for hydrogen e , Hous | ADOPTION RATE IN cylinders expected to grow by >50% Hydr
Slide 10: Leading provider of type 4 cylinders
Hexagon Purus is a leading provider of type 4 type 4 evlind é : H -_ ' . ype 4 cylinders provide a superior cylinders — the optimal and preferred cylinder for combination of weight, safety, efficiency hydrogen applications and durability for hydrogen applications NON-CORROSIVE Polymer liner is corro
Slide 11: Example applications for Purus' hydrogen cylinder systems
EXAMPLE APPLICATIONS FOR PURUS’ HYDROGEN CYLINDER SYSTEMS. Purus’ hydrogen cylinder system serves a wide range of mobility & storage applications # Heavy-duty vehicles Transit bus TMB, Distribution modules 2) Rail = Marine HEXAGON PURUS
Slide 12: World leading provider of electric drivetrain integration solutions
Hexagon Purus is a world leading provider of solutions for electric drivetrain integration Examples of parts Hexagon Purus integrates in fuel cell electric heavy-duty trucks Power electronics Hydrogen storage system Accessory drive module Electric | drivetrain Battery systems 12 Hexagon Purus offers
Slide 13: Global organisation with engineering, manufacturing and R&D capabilities
Global organisation with engineering, manufacturing and R&D (Exon capabilities in Europe and North America Co ieee Canads dy o (== Taneytown - Maryland, US oF wow Kassel, Germany (== Lincoln - Nebraska, US @ : Se ae a Costa Mesa ~ California, US a Ontario - California, US t) 13 "Term sheet agreement
Slide 14: In pole position to benefit from the market opportunity
Hexagon Purus in pole position to benefit from the sizeable market opportunity be ““s 14 DEEP COMPETENCE AND STATE-OF-THE-ART TECHNOLOGY ESTABLISHED MANUFACTURING FACILITIES STRONG RELATIONSHIPS WITH WORLD CLASS CUSTOMERS EXPERIENCED GLOBAL TEAM WITH PROVEN EXECUTION CAPABILITIES HEXAGON PURUS
Slide 15: Highlights from Q4 2020
Highlights from Pity ft ke HEXAGON PURUS
Slide 16: Successful listing on Euronext Growth Oslo
16 EURONEXT Successful listing on Euronext Growth Oslo - row Big Purus listed on Euronext Growth Oslo on 14 December 2020 Raised gross proceeds of NOK 750m following strong interest from Scandinavian and international institutional investor agenda, and reinforce and develop its leading position in t
Slide 17: Several recent contract announcements
HEXAGON PURUS Several recent contract announcements Everfuel® STADLER Leading global industrial gas company Selected by Hino Multi-year frame Awarded contract Trucks as for supply agreement with development hydrogen cylinder worth €14m to partner to provide systems for first deliver multiple battery
Slide 18: High activity levels across the mobility spectrum
Hexagon Purus is experiencing high activity levels across the (ExAgon mobility spectrum — some applications already in serial production ~ EXAMPLES OF PURUS CUSTOMERS we HEavy-buTy i + Purus is involved in multiple development programs for BEV and FCEV platforms ® aw VEHICLES & + BEVs are currently
Slide 19: Market for hydrogen maritime applications is emerging
m ket for hydrogen maritime applications is emerging ogee Hydrogen is a compelling zero-emission fuel solution for maritime applications Hexagon Purus is involved in several ie hydrogen maritime bs development projects, . => and intend to accelerate in the total annual GHG' commercial efforts from i
Slide 20: HEXAGON
HEXAGON PURUS
Slide 21: Financial highlights | Q4 and FY 2020
Financial highlights | Q4 and FY 2020 an + In this early stage of industry development, quarterly revenue variability is inherent REVENUE ! & | = Ee, + FY'19, and in particular Q4'19, characterized Nok s by strong contribution from an OEM MILLION 48 46 & heavy-duty BEV truck program which was 33 com
Slide 22: FY 2020 revenue split by application
FY 2020 revenue split by application Hexagon Purus e-mobility (excl. CNG LDV) Transit bus Light-duty vehicles FY 2020: NOK 180M Heavy-duty vehicles 12% 13% Distribution 22 Hydrogen storage systems, battery packs and EV drivetrain integration Hydrogen distribution modules Pressure and fuel tanks, dev
Slide 23: Balance sheet | FY 2020
Balance sheet | FY 2020 Assets | NOKm 2,091 —— CASH AND CASH EQUIVALENTS: NOK 1,246m 31 December 2020 Hl Fixed assets Ml Receivables Ml Other current assets MM cash Inventory Assets held for sale 23 WM Equity Il Non-current liabilities Equity & Liabilities | NOKm 2,091 77 31 December 2020 ) Current
Slide 24: Pro-forma cash flow | FY 2020
Pro-forma cash flow | FY 2020 Hexagon Purus e-mobility NOKm +1,181 5 Cash shored up by NOK 750m 41 (gross) Purus private placement and August NOK 500m proceeds from Hexagon Composites private placement 1,387 CNG LDV (discontinued operations) drove NOK 41m cash outflow 65 _ _izZz, 123 T 360 Cash bala
Slide 25: Outlook and Q&A
Slide 26: Large and diversified project pipeline
HEXAGON PURUS Large and diversified project pipeline LIGHT-DUTY Meoium & HEAVY DISTRIBUTION Marine, RAIL, GROUND: OTHER VEHICLES DUTY VEHICLES ‘STORAGE AND MOBILE REFUELING More than 75 projects 26
Slide 27: CARB ruling in California is a game-changer for vehicle electrification
CARB ruling in California is a game-changer for vehicle electrification... % of new class 4-8 100% trucks! sold in California that is mandated to be zero emission Diesel trucks make up 7% of the Californian vehicle fleet but is the largest single source of vehicle air pollution, responsible for emis
Slide 28: Key supplier to Daimler's Innovation Fleet
28 EN Soe ECTRIC VEHICLE HEXAGON PURUS Hexagon Purus was a key supplier to Daimler's Innovation Fleet in 2019 and 2020 * 22 eCascadia class 8 trucks — battery packs * 7eM2 class 6 trucks — battery packs and EV drivetrain Development program underway with Hino and another OEM In discussions with othe
Slide 29: EU aims to be the world's leading region for hydrogen
EU aims to be the world’s leading region for hydrogen H2 integrated into the 6GW of renewable energy system hydrogen electrolysers 40GW of renewable H2 1 million tons of renewable H2 10 million tons i renewable H2 HEXAGON PURUS =o Hydrogen deployed at a large scale across all hard-to-decarbonize sec
Slide 30: Hydrogen infrastructure to grow manyfold during the decade
Hydrogen infrastructure to grow manyfold during the decade Number of hydrogen refueling stations is expected to grow by more than 35% per year this decade Average HRS capacity/day is expected 7,000 to increase from <200 kg of hydrogen in 2020 to >1,000 kg of hydrogen in 5,500 2030 Growth is mainly d
Slide 31: Solid hydrogen distribution momentum in 2021
Solid hydrogen distribution momentum in 2021 Hydrogen distribution will be a key revenue driver for Hexagon Purus in 2021, with delivery of hydrogen distribution cylinders and systems to several European and North American customers HEXAGON 31 PURUS
Slide 32: China is the world's largest hydrogen market — JV negotiations
————— ee. China is the world’s largest hydrogen market — Hexagon Purus is in the final stages of JV negotiations Discussions with partner CIMC ENRIC are progressing well, albeit somewhat delayed mainly due to COVID-19 related travel restrictions Iu Hil) China is expected to be the world’s largest ma
Slide 33: Financial targets
Financial targets 33 2021 REVENUE TARGET Revenue to grow by at least 50% 2025 REVENUE TARGET NOK 4-5 billion LONG-TERM PROFITABILITY TARGET Double-digit EBITDA margins HEXAGON PURUS
Slide 34: Solid outlook driven by high activity and secular tailwinds
Solid outlook driven by high activity and secular tailwinds Investments into product High activity levels development, across multiple production market segments capacity and organization will accelerate 34 On track to meet revenue target of >50% YoY growth in 2021 HEXAGON PURUS
Slide 35: Q&A
Q&A HEXAGON PURUS
Slide 36: Appendix
Appendix
Slide 37: Financial statements | P&L
37 Financial statements | P&L Hexagon Purus e-mobility (excl. CNG LDV) Income Statement (NOK 1000) Q42020 Q42019 31.12.2020 31.12.2019 Revenue from contracts with customers 32455 69072 178 121 207 154 Other operating income 293 3529 1693 4140 Total revenue 32749 72.601 179814 211 294 Cost of materia
Slide 38: Financial statements | Balance sheet & cash flow
38 Financial statements | Balance sheet & cash flow Hexagon Purus e-mobility (excl. CNG LDV) BALANCE SHEET (NOK 1 000) 31.12.2020 31.12.2019" CONDENSED CASH FLOW (NOK 1 000) 31.12.2020 rar brent 16634 103359 Profit before tax from continuing operations = 273373 Right-of-use assets 30 457 53 577 Depr
Slide 39: Investor relations information
Investor relations information INVESTOR BASE’ EXCHANGE INFORMATION ez ‘SHARE TRADING STATISTICS it 2 + TICKER SYMBOL: HPUR * ISIN: NO0010904923 NOK ~15bn ~5,500 + EXCHANGE: EURONEXT GROWTH OSLO Marker CAPITALIZATION! SHAREHOLDERS ‘HPUR = 9 eunoNEMT NOK ~38m 74.7% GROWTH DAILY TURNOVER’ OWNED BY HEXA