Hydrogenpro Asa · OSL:HYPRO
Hydrogenpro Asa — Q4 2023 Earnings Presentation
29 slides from Hydrogenpro Asa's earnings presentation, Feb 27, 2024
Slide 1: Q4 2023 Presentation
Q4 2023 Presentation 27 February 2024
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements and information, including assumptions, opinions and views of the Company or third-party sources, and are solely opinions and forecasts which are subject to risks, uncertainties and other factors that may cause actual results and event
Slide 3: Agenda
Agenda › Quarterly highlights › Financials › North America strategy › Summary Q&A
Slide 4: Q4 2023 - Achievements and major developments
Q4 2023 - Achievements and major developments 1 2 3 Gross Profit of NOK 56 mill (44% margin) and Received 100 MW Purchase Order from Completed manufacturing of 220MW Adj. EBITDA of NOK 12 mill (10% margin) ANDRITZ for 18 cell stacks to ACES project 4 5 6 Strengthened organisation, Investment in Texa
Slide 5: Completed manufacturing of the world's largest (220MW) electrolyser purchase order
Completed manufacturing of the world’s largest (220MW) electrolyser purchase order ACES HUB, Delta (Utah) Industrial applications and hard-to-abate sectors – enables the energy transition through hydrogen THE PROJECT ACES1 hub provides a complete end-to-end solution to produce, store, and convert re
Slide 6: Delivering 100MW (18 electrolysers) to Andritz for low-CO2 steel production at Salzgitter, Germany
Delivering 100MW (18 electrolysers) to Andritz for low-CO2 steel production at Salzgitter, Germany › Contract value estimated to approx. EUR 18 million › The confirmed Purchase Order equals 18 of HydrogenPro’s 5.5 MW cell stacks (100 MW) › ANDRITZ will build a 100 MW electrolysis plant at the Salzgi
Slide 7: Delivering to projects across geographies and industries
Delivering to projects across geographies and industries All numbers in MW Porsgrunn, Norway Kokkola, Finland Test facility, operational Woikoski, Power-to-X, operational 340 Awarded Kristinestad, Finland Koppö [ANDRITZ], power-to-X, FEED >1755 FEED Raahe, Finland 9 Fortum, green steel, FEED complet
Slide 8: Electrolysis in 2030 – the big picture
Electrolysis in 2030 – the big picture GW 590 › Market Potential: 305GW of electrolysis capacity announced for 2030. › Maturing Projects: 140GW in FEED stage signals industry progression, yet only 12GW has reached FID, indicating room for rapid advancement. 305 293 › Critical Timeline: To fulfill th
Slide 9: We deliver big solutions with big impact
We deliver big solutions with big impact = 347,000t CO2 CO2 emissions abated per year from 262,000 cars H2 Sources: Based on stage 1 CO2-reduction on ACES and Salzgitter projects. European Automobile Manufacturers Association. 9
Slide 10: Taking a leading role in the global electrolyser industry
Taking a leading role in the global electrolyser industry Technology frontrunner Supports premium pricing Large-scale track record Customer confidence Proven scalability Positioned for a growing market Geographic expansion Aligned with market opportunities Cost competitive manufacturing Attractive m
Slide 11: Agenda
Agenda › Quarterly highlights › Financials › North America strategy › Summary Q&A
Slide 12: Delivering positive EBITDA in Q4 2023
Delivering positive EBITDA in Q4 2023 NOK Million 568 220 10x Revenues 83 137 127 › Manufacturing for ACES project completed 25 56 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 YTD 2022 YTD 2023 20% 21% 40% › 44% 121 Gross margin of 44% in Q4 vs. 10% in Q3 2023, and 21% Gross 15% 22% 10% 10% 56 YTD 2023 ›
Slide 13: Strengthened liquidity position in Q4 2023
Strengthened liquidity position in Q4 2023 NOK Million Cash 257 208 183 161 › Cash balance increased by NOK 28 mill during Q4 2023 › 133 balance Strict capital discipline with zero committed investments Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 › Book equity value of NOK 453 mill as of 31 Dec 2023 Cha
Slide 14: Agenda
Agenda › Quarterly highlights › Financials › North America strategy › Summary Q&A
Slide 15: North American Green Hydrogen Market Summary
North American Green Hydrogen Market Summary › Projected total addressable market between 2025 – 2030* ◦ Up to 1.7 mtpa Green Hydrogen demand (excl. export volume) ◦ Up to 15 GW of Electrolyzer capacity ◦ Up to $9 billion Electrolysis System investments (excl. BOP) ◦ Potential for an additional 3 mt
Slide 16: Why we win
Why we win Customers’ priorities The HydrogenPro advantage Focus on high efficiency, high pressure alkaline electrolysis Lowest LCOH Proprietary electrode technology enables reduced operating expense Two electrolyzers paired with one gas separation skid (11 MW nominal) Standardized large-scale
Slide 17: Go-to-market model – turnkey solution for H2 production
Go-to-market model – turnkey solution for H2 production HydrogenPro Salespeople Power-To- Gas Techno- Government Incentive Refinery/ Decarbonization economic Administration Project Owners Synthetic fuel Electrolyser Gas separator HydrogenPro stacks skids Salespeople Project Developers Balancing the
Slide 18: Several large North American projects in the pipeline
Several large North American projects in the pipeline › ACES, Delta – 220 MW (20 gas trains) delivered › Select Opportunities ◦ Project 1: Ammonia, 300 MW, FEED in process ◦ Project 2: Ammonia, 470 MW, pre-FEED ◦ Project 3: Ammonia, 600 MW, pre-FEED ◦ Project 4: SAF, >800 MW, FEED in process ◦ Proje
Slide 19: Next steps
Next steps 1 2 3 Support future projects North America team Support pipeline with North American supporting execution of development with sales based manufacturing and existing projects and FEED resources overseas capacity Disciplined investment in flexible capacity to meet demand 19
Slide 20: North America – take-aways
North America – take-aways › Large and growing market › Strong value proposition › Proven delivery performance › Building a team and partnerships › Disciplined capex plan › Positioned for growth 20
Slide 21: Agenda
Agenda › Quarterly highlights › Financials › North America strategy › Summary Q&A
Slide 22: Summary Q4 2023
Summary Q4 2023 › Awarded 100 MW order from ANDRITZ › Adj. EBITDA of NOK 12 mill (10% margin) in Q4 2023 › Completed ACES manufacturing process › Committed team in place in North America › Expanding test facilities for advanced electrodes › Significant market opportunities 22
Slide 23: Four strategic pillars
Four strategic pillars Technology Leader Global footprint Scalability Life Cycle Partner › R&D investments is › Building the › Commissioning › Gen3 electrodes for top priority organization to world’s largest H2 upgrading › Expanding serve projects project (ACES) › Increase focus on research center g
Slide 24: HydrogenPro
iydrogenPro
Slide 25: Appendix
APPENDIX APPENDIX
Slide 26: Note 10 - Restatement of comparable information
Note 10 - Restatement of comparable information › 1. Restatement of contract revenue recognized in 2020 USD 2 million – NOK 17.6 million › Based upon an updated assessment related to the delivery of “Study” during 2020 has been concluded that the related contract included a substantive right that wa
Slide 27: HydrogenPro is a global provider of market-leading, large-scale green hydrogen technology & systems
HydrogenPro is a global provider of market-leading, largescale green hydrogen technology & systems 1 THE WORLD’S LARGEST ELECTROLYSER • 5.5 MW single stack suitable for renewable energy input • A modular system that can be scaled to any size for large-scale industrial applications • Pressurised hydr
Slide 28: HydrogenPro targets
HydrogenPro targets Industrial applications and hard-to-abate sectors – enables the energy transition through hydrogen Power-To-Gas Refinery/ Decarbonization Renewables Synthetic fuel H2 Balancing the grid + O2 H2O Fertilizer/ ammonia Water LARGE-SCALE Steel HYDROGEN PLANTS Production 28
Slide 29: Powering innovation. Energizing tomorrow.
POWERING INNOVATION. ENERGIZING TOMORROW. SiydrogenPro