Slide 1: Hexagon Purus Q3 2024
Hexagon Purus Q3 2024 28 November 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 Q3 2024 FINANCIALS OUTLOOK HIGHLIGHTS AND Q&A 3
Slide 4: Highlights Q3 2024
Highlights Q3 2024
Slide 5: Key highlights from Q3 2024 and after the balance sheet date
Key highlights from Q3 2024 and after the balance sheet date CONTINUED STRONG ENTERED INTO A MULTI-YEAR RECEIVED FIRST PURCHASE ORDER COMPLETED SUCCESSFUL EQUITY REVENUE GROWTH AGREEMENT WITH GILLIG FOR FROM HINO TRUCKS RAISE OF NOK 1 BILLION2 DELIVERY OF HYDROGEN CYLINDER SYSTEMS FOR TRANSIT BUS NO
Slide 6: Continued strong revenue growth and hydrogen business EBITDA positive
Continued strong revenue growth and hydrogen business EBITDA positive STRONG QUARTERLY GROWTH ANNUALIZED REVENUE GROWTH YOY POSITIVE EBITDA MARGIN TRAJECTORY Revenue, NOKm Last twelve months revenue, NOKm Last-twelve months Group EBITDA margin, % +43% +39% -20% 544 1,845 -26% 1,682 -29% 1,483 -32% 3
Slide 7: Strong revenue growth in hydrogen infrastructure and hydrogen mobility
Strong revenue growth in hydrogen infrastructure and hydrogen mobility Q3 2024 YEAR-OVER-YEAR REVENUE BRIDGE | NOKM • High activity in the hydrogen +164 infrastructure business during the (+43%) quarter with strong growth for hydrogen 29 -32 544 distribution and mobile refueling 91 N/A -32% compared
Slide 8: Backlog provides revenue visibility for remainder of 2024
Backlog provides revenue visibility for remainder of 2024 NOKm Q3 2024 ORDER BACKLOG¹ Q3 2024 ORDER BACKLOG DISTRIBUTION (%) OTHER APPLICATIONS HYDROGEN INFRASTRUCTURE² 1,357 21% 1,278 1,242 ORDER INTAKE OF 1,147 NOK >400M IN Q3 2024 42% 1,007 BATTERY SPLIT PER 913 ELECTRIC 10% APPLICATION MOBILITY⁴
Slide 9: Demand in 2025 is expected to mainly come from existing customer base
Demand in 2025 is expected to mainly come from existing customer base HYDROGEN HYDROGEN BATTERY INFRASTRUCTURE MOBILITY ELECTRIC MOBILITY Ongoing customer dialogues for Volumes in 2025 is mainly expected Start of commercial production for 2025 volumes with majority of orders as call-offs from existi
Slide 10: Hexagon Purus & Gillig entered into multi-year agreement
Hexagon Purus & Gillig entered into multi-year agreement for delivery of hydrogen fuel storage systems GILLIG “AT A GLANCE” • Leading manufacturer of heavy-duty transit buses in the US • Announced in April 2024 the expansion of its zero-emission line-up to also include a hydrogen fuel-cell powered t
Slide 11: Selected by New Flyer as a supplier for the fifth consecutive year
Selected by New Flyer as a supplier for the fifth consecutive year NEW FLYER “AT A GLANCE” • Leading manufacturer of heavy-duty transit buses in North America • New Flyer is leading the electrification of transit bus mass mobility in North America with its current offering of zero- emission buses an
Slide 12: Received first purchase order from Hino Trucks
Received first purchase order from Hino Trucks Purchase order of approximately USD 5.5 million for delivery of Tern RC8 truck The trucks are expected to start being delivered in Q4 2024 from the Company’s Dallas facility 12 www.terntrucks.com
Slide 13: New terms agreed with Panasonic on supply of battery cells
New terms agreed with Panasonic on supply of battery cells In 2023, Hexagon Purus and Panasonic signed a multi- year agreement for the supply of lithium-ion battery cells from Panasonic’s new facility in Kansas (US) The agreement included a requirement for Hexagon Purus to pre-pay USD 43m, of which
Slide 14: Completion of new vehicle integration facility in Dallas
Completion of new vehicle integration facility in Dallas ready for gradual scale-up of Tern volumes in 2025 Annual assembly capacity of up to 1,000 battery electric trucks Option to add manufacturing capacity for battery modules and packs 14
Slide 15: Nameplate revenue capacity of production footprint estimated at NOK > 6.0 billion
Nameplate revenue capacity of production footprint estimated at NOK > 6.0 billion G HQ A E F D B H C 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 BATTERY SYSTEMS AND PROTOTYPE A
Slide 16: Financials Q3 2024
Financials Q3 2024
Slide 17: Group P&L | Q3 2024
Group P&L | Q3 2024 Profit & Loss (NOK ‘000) Q3 2024 Q3 2023 YTD 2024 YTD 2023 FY 2023 • Revenue up 43% YoY in Q3 2024, driven by Total revenue 544,038 380,454 1,479,536 953,998 1,319,614 higher activity within the hydrogen Cost of materials 302,381 235,803 850,615 570,633 776,841 infrastructure and
Slide 18: 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 19: Hydrogen Mobility & Infrastructure (HMI) financial results
Hydrogen Mobility & Infrastructure (HMI) financial results REVENUE | NOKM EBITDA | NOKM Hydrogen Infrastructure Hydrogen Mobility Other +55% 13 11 1,427 196 (14%) +35% 394 919 (28%) 514 241 -29 66 (26%) 380 (13%) 122 147 26% (13%) (29%) 838 (99) 56 (15%) 557 (59%) -61 301 225 (61%) (59%) (59%) -8% 2
Slide 20: 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 21: Battery Systems & Vehicle Integration (BVI) financial results
Battery Systems & Vehicle Integration (BVI) financial results REVENUE | NOKM EBITDA | NOKM +61% 50 -21 31 -36 29 -105 -106 N/A Q3 2023 Q3 2024 YTD 2023 YTD 2024 Q3 2023 Q3 2024 YTD 2023 YTD 2024 • BVI business unit still in preparation and prototype mode leading to a • Preparations for start of prod
Slide 22: Group balance sheet | Q3 2024
Group balance sheet | Q3 2024 ASSETS | NOKM EQUITY & LIABILITIES | NOKM 4,832 4,832 4,619 4,620 67 4,619 4,620 297 243 63 63 291 243 250 359 515 358 • Increase in property, plant and 401 468 500 equipment driven by capacity 577 466 542 expansion program 611 678 524 505 979 • Working capital increase
Slide 23: Group cash flow | Q3 2024
Group cash flow | Q3 2024 NOKm OPERATING: INVESTING: FINANCING: NOK -115M NOK -135M NOK -25M 543 • Operating losses and working capital increases were the main drivers of operating cash flow in -151 the quarter 55 -59 39 • Working capital increase -128 reflects revenue growth in the quarter, and inv
Slide 24: Outlook and Q&A Q3 2024
Outlook and Q&A Q3 2024 HEXAGON PURUS
Slide 25: We operate in an uncertain market environment
We operate in an uncertain market environment INFRASTRUCTURE DELAYED US ELECTION DEVELOPMENT ZEV ADOPTION AND TRUMP 2.0 Increased cost of capital Slower than expected The near-term path ahead and uncertain regulatory uptake of both battery and for zero-emission mobility in support delays development
Slide 26: The outcome of the US election has further increased the near-term uncertainty
The outcome of the US election has further increased the near-term uncertainty SOME FACTORS INCREASES UNCERTAINTY.. ..BUT THERE ARE MITIGATING FACTORS OPPOSING FACTORS CREATES A CHALLENGING NEAR- TERM MARKET DYNAMIC IN THE US “DRILL, BABY, DRILL” “PRO-US JOB CREATION” “OPPOSE ZEV MANDATES” “SURGING
Slide 27: Hexagon Purus is well positioned across core applications
Hexagon Purus is well positioned across core our applications HYDROGEN HYDROGEN BATTERY & HYDROGEN INFRASTRUCTURE TRANSIT BUS ELECTRIC TRUCKING Current demand from existing grey Demand mainly from public authorities High-value, niche markets with demand hydrogen for use predominantly in industrial d
Slide 28: 2024 revenue target covered by current order backlog; fully focused on execution
2024 revenue target covered by current order backlog; fully focused on execution NOKm 514 >500 544 1,480 SECURED 100% OF FY’24 TARGET 528 REVENUE PER Q3’24 407 Q1 Q1 2024 2024 Q2 2024 Q2 2024 Q3 2024 Q3 2024 YTD YTD 2024 2024 Current 2024 OBL 2024 FY 2024 target FY2024 order backlog 28
Slide 29: Reiterating financial targets
Reiterating financial targets SHORT TERM MEDIUM TERM FULL-YEAR 2024 TARGETS FULL-YEAR 2025 TARGETS REVENUE ≥ 50% revenue growth year-over-year Significant improvement EBITDA in EBITDA margin year-over-year 29
Slide 30: Targeting cash flow break-even in 2026
Targeting cash flow break-even in 2026 1 2 3 4 COMPLETION OF CAPACITY LOWER PANASONIC WORKING RAMP-UP OF EXPANSION PROGRAM PRE-PAYMENT AMOUNT CAPITAL IMPROVEMENTS TERN VOLUMES Strict prioritization on further New terms with Panasonic more More attractive payment terms Start of commercial production
Slide 31: Q&A
Q&A 31
Slide 32: Appendix
APPENDIX HEXAGON PURUS
Slide 33: Quarterly Group revenue and EBITDA development
Quarterly Group revenue and EBITDA development +10% +13% +12% 1,845 +43% +37% 1,682 528 544 1,483 REVENUE +90% 1,320 407 372 380 366 964 NOK 330 MILLION 259 244 210 222 508 159 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 Q
Slide 34: Financial statements | Group P&L
Financial statements | Group P&L Profit & Loss (NOK ‘000) Q3 2024 Q3 2023 YTD 2024 YTD 2023 FY 2023 Revenue from contracts with customers 514,894 378,554 1,447,909 948,907 1,311,811 Other operating revenue 29,144 1,900 31,627 5,091 7,803 Total revenue 544,038 380,454 1,479,536 953,998 1,319,614 Cost
Slide 35: Financial statements | Segments P&L
Financial statements | Segments P&L Segment Profit & Loss (NOK ‘000) Q3 2024 Q3 2023 YTD 2024 YTD 2023 FY 2023 Hydrogen Mobility & Infrastructure (HMI) Revenue from contracts with customers 513,804 377,997 1,425,485 915,424 1,268,493 Other operating revenue 38 1,590 1,917 3,924 6,396 Total revenue 51
Slide 36: Financial statements | Group Balance sheet
Financial statements | Group Balance sheet Balance sheet (NOK ‘000) Q3 2024 Q3 2023 FY 2023 Property, plant and equipment 1,262,016 785,895 867,212 Right-of-use assets 526,869 418,238 544,765 Intangible assets 849,638 845,820 841,672 Investment in associates and joint ventures 53,280 54,937 50,143 N
Slide 37: Financial statements | Group Cash flow
Financial statements | Group Cash flow Cash Flow (NOK ‘000) Q3 2024 Q3 2023 YTD 2024 YTD 2023 FY 2023 Profit before tax -151,162 -199,396 -542,094 -503,980 -691,310 Depreciation, amortisation and impairment 55,425 38,558 149,410 97,314 149,785 Net interest expense 63,769 4,164 168,157 13,539 13,236 C
Slide 38: Investor relations information
Investor relations information EXCHANGE INFORMATION SHARE TRADING STATISTICS INVESTOR BASE1 • TICKER SYMBOL: HPUR ~6,350 • ISIN: NO0010904923 • EXCHANGE: OSLO STOCK EXCHANGE NOK ~3.2bn SHAREHOLDERS MARKET CAPITALIZATION1 38.4% OWNED BY HEXAGON COMPOSITES ASA³ NOK ~9.5m DAILY TURNOVER2 52.4% FREE FLO
Slide 39: 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. 52,675,433 19.0 % 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 6,780,282 2.4 % 6 Citi
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