Hydrogenpro Asa · OSL:HYPRO
Hydrogenpro Asa — Q1 2023 Earnings Presentation
23 slides from Hydrogenpro Asa's earnings presentation, May 9, 2023
Slide 1: Q1 2023 presentation
Pure Performance Pure Efficiency Pure Power Q1 2023 presentation 9 May 2023 CEO Tarjei Johansen CFO Martin Thanem Holtet
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: HydrogenPro is a global provider of market-leading, large-scale green hydrogen technology & systems
HydrogenPro is a global provider of market-leading, large- scale green hydrogen technology & systems 1 The world’s largest electrolyser Market-leading levelised 2 cost of hydrogen Game-changing electrode technology 3
Slide 4: Achievements and major developments
Achievements and major developments 1 2 3 Revenues of NOK 83 Building global DG Fuels to start FEL 3 million up 230% from Q4 manufacturing capacity study in June, FID 2022 across three continents expected in early 2024 4 5 Final 1000 hours test of 3rd Lab tests of 4th generation technology to be gen
Slide 5: Global expansion well underway
Global expansion well underway Announced short-term expansion plans North America Europe Asia Strategic partnership 500 MW with ANDRITZ for 500 MW Planned assembly and Established manufacturing manufacturing manufacturing facility in Texas facility in Tianjin Target 5 GW manufacturing capacity in 5
Slide 6: Increasing manufacturing capacity in China from 300 to 500 MW
Increasing manufacturing capacity in China from 300 to 500 MW De-bottlenecking and lane optimisation Minor investments (MNOK ~5) Close to 24/7 operations 6
Slide 7: Partnership with ANDRITZ to take a leading position in Europe
Partnership with ANDRITZ to take a leading position in Europe ▪ Best-in-class green hydrogen technology ▪ Use HydrogenPro’s technology in its & systems EPC offering of green hydrogen ▪ Industry-leading R&D solutions ▪ Extensive engineering and project ▪ Unmatched global competence within expertise m
Slide 8: Texas, US: Site selection planned by end of Q3 2023, operational by end of 2024
Texas, US: Site selection planned by end of Q3 2023, operational by end of 2024 First big step into our top priority market: the US Texas is THE GREEN HYDROGEN HUB in the US1 ▪ Texas selected as location after extensive strategic review ▪ Initial capacity 500 MW, room to scale up to several GWs ▪ Br
Slide 9: Fully operational manufacturing in China – progressing with contract deliveries
Fully operational manufacturing in China – progressing with contract deliveries ▪ First electrolyser from the upgraded manufacturing site in Tianjin, China delivered ▪ Manufacturing running at full current capacity of 300 MW ▪ Capacity to be upgraded to 500 MW by the end of Q2 2023 ▪ Ongoing manufac
Slide 10: DG Fuels' FEL 3 study expected to start in June
DG Fuels’ FEL 3 study expected to start in June Exclusive supplier of >800MW electrolysers for DG Fuels’ Sustainable Aviation Fuel plant in Louisiana, US DG Fuels has sold out 100% of the Contract value >USD 500 million, expected initial production at the FID expected in early 2024 excluding life cy
Slide 11: Q1 2023 financials
Q1 2023 financials UNAUDITED FIGURES Revenues Gross profit Adj. EBITDA2 (NOK mill) (NOK mill) (NOK mill) 83 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 13 +230% -15 -16 6 -20 25 4 15 3 -27 9 8 -34 0 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 • Adj. gross margin of 22
Slide 12: Q1 2023 financials (cont.)
Q1 2023 financials (cont.) UNAUDITED FIGURES Cash balance Net investments Change in cash balance (NOK mill) (NOK mill) (NOK mill) 435 369 343 20 20 257 208 9 6 3 End Q1 End Q2 End Q3 End Q4 End Q1 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 2022 2022 2022 2022 2023 Breakdown of ΔNWC: Inventory NOK 5 mil
Slide 13: P&L outlook: Q2 – Q4 2023
P&L outlook: Q2 – Q4 2023 • Revenues on ACES contract recognised in line with percentage of completion principle • Step-up in revenue recognition as manufacturing activity increases • HydrogenPro to recognise ~90% of the ACES contract revenues (>$50M) by the end of 2023 - with a healthy project marg
Slide 14: Focused investments to generate industry-leading returns
Focused investments to generate industry-leading returns Focused capital deployment plan Main short-term uses • Global manufacturing & assembly capacity • Expansion in US + expansion in China • Technology and innovation front-runner • Testing of 3rd Gen technology • Scale-up of the organisation • Bu
Slide 15: Green hydrogen is all about large scale
Green hydrogen is all about large scale Global electrolysis capacity ~1GW2 Announced green hydrogen projects ~345GW1 Large scale projects (> 500 MW) represents ~ 90% of announced capacity1: To reach IEA net zero scenario: 3600 GW Project size < 500 MW installed electrolysis capacity by 20503 Project
Slide 16: High-pressure alkaline is the best suited green hydrogen technology for large-scale users
High-pressure alkaline is the best suited green hydrogen technology for large-scale users Suitable for renewable energy input – not necessary to connect to grid Easily scalable with no use of noble materials, rare-earth elements or PFAS Medium cooling need No need for compressor – deliver hydrogen a
Slide 17: Taking the lead role in the technology revolution
Taking the lead role in the technology revolution 1st generation 2nd generation 3rd generation High-pressure Atmospheric High-pressure alkaline systems pressure alkaline systems based on electrolysers developed in the advanced developed in the 1960s electrode 1920s technology 1920s 1960s 2023 17
Slide 18: World's largest electrolyser
World’s largest electrolyser 2nd generation ▪ Core technology based on 2nd generation technology with HydrogenPro’s signifcant scale upgrades ▪ One scalable module: 5.5 MW single stack configuration ▪ Module-based to easily meet customer requirements for MW- to GW-sized projects ▪ Hydrogen and oxyge
Slide 19: Next-generation electrode technology
Next-generation electrode technology 3rd generation 1000 hours tests ▪ First test autumn 2022 in containerised ▪ Final test to be concluded in July electrolyser 2023 Significant efficiency improvements: ▪ 100 MW/year manufacturing line in 14 % 75 % Ready to begin Denmark manufacturing ▪ Can scale to
Slide 20: Introducing the next technology revolution
Introducing the next technology revolution 4th generation 4th generation Higher efficiency & zero loss of cooling water 20
Slide 21: Technology roadmap
Technology roadmap 1st gen 2nd gen 3rd gen 4th gen1 High pressure on H2 and O2 No Yes Yes Yes Electrolyser efficiency Medium Medium High Very high Suitable for renewable No Yes Yes Yes energy input Cooling water need Medium Medium Low Very low 21 • 1) Based on initial lab tests
Slide 22: On track to deliver on 2023 key priorities
On track to deliver on 2023 key priorities Key priorities 2023 Current status Complete product delivery for ACES1 Project Progressing as per plan Expand footprint Announced factory in Texas. ANDRITZ partnership in Europe Several projects getting closer to FID and Increase order backlog engaged in mu
Slide 23: #1 provider of large-scale green hydrogen technology & systems
#1 provider of large-scale green hydrogen technology & systems