Hexagon Purus Asa · OSL:HPUR
Hexagon Purus Asa — Q4 2024 Earnings Presentation
45 slides from Hexagon Purus Asa's earnings presentation, Feb 11, 2025
Slide 1: Hexagon Purus Q4 2024
Hexagon Purus Q4 2024 11 February 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 Q4 & FY 2024 FINANCIALS OUTLOOK UPDATE AND Q&A 3
Slide 4: Q4 & FY 2024
Company update Q4 & FY 2024
Slide 5: We achieved much of what we set out do in 2024
We achieved much of what we set out do in 2024 CONTINUED STRONG SIGNIFICANTLY IMPROVED COMPLETED OUR MULTI-YEAR CONTINUED BUILDING SOLID REVENUE GROWTH IN 2024 EBITDA MARGIN EXPANSION PROGRAM FOUNDATION WITH CUSTOMERS LTM1 EBITDA MARGIN NOK YoY Q4’24 396m +8% -19% NOK YoY -34% FY’24 1,876m +42% Q4 Q
Slide 6: Continued strong revenue growth and EBITDA margin improvement
Continued strong revenue growth and EBITDA margin improvement SIGNIFICANT ANNUAL REVENUE GROWTH POSITIVE EBITDA MARGIN TRAJECTORY QUARTERLY REVENUE GROWTH Last twelve months revenue, NOKm Last-twelve months Group EBITDA margin, % Revenue, NOKm +42% +15pp +0.152 1,876 -19% 1,845 +8% -20% 1,682 396 -2
Slide 7: Hydrogen infrastructure and mobility contributed strongly to full-year growth
Hydrogen infrastructure and mobility contributed strongly to full-year growth 2024 YEAR-OVER-YEAR REVENUE BRIDGE | NOKM +556 • High activity in the hydrogen (+42%) infrastructure business, driven primarily 1,876 by hydrogen distribution and mobile 61 -65 refueling and stationary storage 273 +197% -2
Slide 8: The energy transition is developing slower than expected
The energy transition is developing slower than expected CLEAN ENERGY PRODUCTION INFRASTRUCTURE DEVELOPMENT END-MARKET APPLICATIONS Increased costs and uncertain Delays in the build-out of Slower battery- and regulatory support has caused necessary supply chain and hydrogen mobility adoption delays
Slide 9: New US administration has resulted in significant near-term market uncertainty
New US administration has resulted in significant near-term market uncertainty for zero emission trucking in North America 9
Slide 10: Initial actions since inauguration have made the regulatory landscape challenging
Initial actions since inauguration have made the regulatory landscape for zero emission trucking in the US challenging to navigate in the near-term SUSPENSION OF CALIFORNIA’S ADVANCED ADVANCED FEDERAL FUNDING EMISSION STANDARDS CLEAN FLEETS CLEAN TRUCKS Suspension of funding from Regulation for maxi
Slide 11: Challenging market backdrop creates limited forward visibility and timing risk
Challenging market backdrop creates limited forward visibility and timing risk for customer demand in 2025 DEGREE OF FORWARD VISIBILITY OF CUSTOMER DEMAND FOR 2025 1 2 3 4 BATTERY HYDROGEN HYDROGEN HYDROGEN ELECTRIC TRUCKING ELECTRIC TRUCKING DISTRIBUTION TRANSIT BUS Slower ramp-up curve on the Limi
Slide 12: Market uncertainty negatively impacted order intake towards end of 2024
Market uncertainty negatively impacted order intake towards end of 2024 NOKm Q4 2024 ORDER BACKLOG¹ Q4 2024 ORDER BACKLOG DISTRIBUTION (%) OTHER HYDROGEN APPLICATIONS INFRASTRUCTURE² 1,357 1,278 28% 26% 1,242 1,147 1,007 SPLIT PER 913 APPLICATION 726 9% BATTERY ELECTRIC MOBILITY⁴ 37% HYDROGEN MOBILI
Slide 13: Hexagon Purus has been positioned for continued growth
Hexagon Purus has been positioned for continued growth NOK 3 4 5 2 Completed multi-year 1 capacity expansion program Weaker market Limited forward outlook around zero- visibility and increased Substantially emission mobility in timing risk for improved EBITDA 1,876M the US following customer demand
Slide 14: Launching cost reduction program to adjust to the current near-term market outlook
Launching cost reduction program to adjust to the current near-term market outlook CUTTING ANNUALIZED COSTS BUSINESS BY NOK ~200 MILLION PORTFOLIO REVIEW ~15% reduction in workforce Reduction in SG&A Review of overall business portfolio and make further adjustments needed to cut costs and secure cas
Slide 15: Hexagon Purus ends collaboration with Cryoshelter
Hexagon Purus ends collaboration with Cryoshelter HEXAGON PURUS WILL EXIT X ITS 40% OWNERSHIP STAKE IN CRYOSHELTER'S LIQUID HYDROGEN BUSINESS EARLY-STAGE DEVELOPMENT OF CRYOGENIC TANK TECHNOLOGY FOR LIQUID HYDROGEN 15
Slide 16: Capital discipline is the key priority
Capital discipline is the key priority SECURE CASH RUNWAY SHORTEN TIME TO PROFITABILITY REACH CASH FLOW BREAK EVEN WITH CURRENT CASH ON HAND 16
Slide 17: Financials Q4 2024
Financials Q4 2024
Slide 18: Group P&L | Q4 and FY 2024
Group P&L | Q4 and FY 2024 Profit & Loss (NOK ‘000) Q4 2024 Q4 2023 FY 2024 FY 2023 FY 2022 • Revenue up 8% YoY in Q4 2024, driven by Total revenue 396,303 365,616 1,875,839 1,319,614 963,925 hydrogen infrastructure and mobility Cost of materials 230,959 206,208 1,081,574 776,841 588,525 combined wit
Slide 19: Hydrogen Mobility & Infrastructure (HMI)
Hydrogen Mobility & Infrastructure (HMI) HMI BUSINESS IN BRIEF • Hydrogen cylinders and systems manufacturing and assembly in Europe (Kassel and Weeze, Germany) and the US (Westminster, Maryland). Includes the Company’s industrial Weeze Kassel 636 gas and aerospace business Westminster (Germany) (Ge
Slide 20: Hydrogen Mobility & Infrastructure (HMI) financial results
Hydrogen Mobility & Infrastructure (HMI) financial results REVENUE | NOKM EBITDA | NOKM Hydrogen Infrastructure Hydrogen Mobility Other +40% 1,782 255 -12 (14%) 1,275 470 (26%) -25 -0% 307 (24%) -33 356 355 197 66 59 (15%) (19%) 75 (17%) 76 1,058 -94 (21%) (22%) 771 (59%) 214 220 (60%) (60%) (62%) -
Slide 21: Battery Systems and Vehicle Integration (BVI)
Battery Systems and Vehicle Integration (BVI) BVI BUSINESS IN BRIEF • Battery systems production (Kelowna, Canada) and complete vehicle integration of battery electric and fuel cell electric vehicles (Dallas and Ontario, US) for the North American Kelowna 135 (Canada) market employees Ontario Dallas
Slide 22: Battery Systems & Vehicle Integration (BVI) financial results
Battery Systems & Vehicle Integration (BVI) financial results REVENUE | NOKM EBITDA | NOKM +141% 97 +410% -33 -34 47 40 9 -140 -139 Q4 2023 Q4 2024 FY 2023 FY 2024 Q4 2023 Q4 2024 FY 2023 FY 2024 • Revenue significantly up for the quarter and full-year compared to same • Production ramp-up costs con
Slide 23: Group balance sheet | Q4 2024
Group balance sheet | Q4 2024 ASSETS | NOKM EQUITY & LIABILITIES | NOKM • NOK 1bn equity raise completed in 4,934 4,934 October, boosting cash balance 4,832 4,832 151 4,619 4,620 55 significantly and improving equity 4,619 4,620 67 260 297 351 243 63 63 291 243 ratio by 5 pp. to 43% 359 250 358 407
Slide 24: Group cash flow | Q4 2024
Group cash flow | Q4 2024 NOKm OPERATING: INVESTING: FINANCING: NOK -99M NOK -112M NOK 953M +759 1,028 17 • Impairment charges impacting operating cash flow; flat development in working capital in the quarter 269 970 • CAPEX of NOK 66m in the 101 -66 quarter driven by capacity -36 expansion program
Slide 25: Outlook and Q&A Q4 2024
Outlook and Q&A Q4 2024
Slide 26: Uncertainty impacts near-term visibility
Uncertainty impacts near-term visibility 1 2 POSTPONING CUSTOMER FINANCIAL GUIDING DIALOGUES POINT UNTIL BETTER TOWARDS A BACK- VISIBILITY IS GAINED END LOADED YEAR 26
Slide 27: Increased hydrogen adoption in public transportation
Increased hydrogen adoption in public transportation HYDROGEN EUROPEAN NORTH AMERICAN DEMAND TRANSIT BUS CUSTOMERS CUSTOMERS OUTLOOK Leading manufacturers are Demand for zero-emission public Strong commercial momentum PRODUCTION OF HYDROGEN spearheading adoption of zero- transport more localized wit
Slide 28: A temporary dip in the near-term with future growth from increased hydrogen availability
A temporary dip in the near-term with future growth expected to come from increased availability of hydrogen HYDROGEN INDUSTRIAL EMERGING DEMAND DISTRIBUTION GAS PLAYERS GREEN H2 PLAYERS OUTLOOK Demand for distribution Demand for distribution Temporary dip in near-term ASSEMBLY OF DISTRIBUTION modul
Slide 29: Limited near-term demand for hydrogen trucks
Limited near-term demand for hydrogen trucks A B HYDROGEN HYDROGEN TRUCK HYDROGEN TRUCK DEMAND ELECTRIC TRUCKING OFFERING TODAY OFFERING PLANNED OUTLOOK Limited market today with Several leading trucking OEMs Limited near-term forward PRODUCTION OF HYDROGEN demand mainly coming from with plans to in
Slide 30: Near-term demand uncertainty for battery electric trucking in North America
Near-term demand uncertainty for battery electric trucking in North America BATTERY AVAILABLE EXCLUSIVELY DEMAND ELECTRIC TRUCKING THROUGH HINO’S US DEALER NETWORK OUTLOOK Slower ramp-up curve on the PRODUCTION OF BATTERY back of weakened near-term SYSTEMS AND COMPLETE BATTERY Initial launch of the
Slide 31: Several market opportunities in other applications
Several market opportunities in other applications HYDROGEN HYDROGEN INDUSTRIAL GAS AEROSPACE RAIL MARITIME DISTRIBUTION APPLICATIONS Stable and recurring customer Strong demand from US- Selected near-term An early-stage mover in the demand for industrial gas based commercial space opportunities for
Slide 32: Attractive market opportunity in China for hydrogen distribution and mobility solutions
Attractive market opportunity in China for hydrogen distribution and mobility solutions ANNUAL FCEV SALES IN CHINA TOTAL 1 FLEET SIZE (DEC. 2024) China targets CHINA EXCEEDED 2025 total FCEV fleet ~27,500 of 50k in 2025 GREEN HYDROGEN PRODUCTION TARGET OF 200K TONS PER ANNUM ~5x ALREADY IN 2024 2 HY
Slide 33: Joint venture facility in China ready to ramp-up production
Joint venture facility in China ready to ramp-up production with local certification process ongoing STEPWISE PROCESS REQUIRED UNTIL FINAL CERTIFICATION IS IN PLACE FOR THE CHINESE MARKET 2024 2025 2026 CONSTRUCTION IN-HOUSE PRODUCTION AND SUPPLY TO COMPLETED CYLINDER PRODUCTION THE CHINESE MARKET C
Slide 34: Hexagon Purus is uniquely positioned to navigate a challenging environment
Despite industry and company-specific headwinds, Hexagon Purus is uniquely positioned to navigate a challenging environment 1 2 3 4 NARROW FLEXIBLE SOLID DIVERSIFIED TECHNOLOGICAL CORE MANUFACTURING SETUP CUSTOMER BASE PRODUCT OFFERING Narrow technological core Multipurpose cylinder line Solid and d
Slide 35: Capital discipline is the key priority
Capital discipline is the key priority SECURE CASH SHORTEN TIME TO REACH CASH FLOW RUNWAY PROFITABILITY BREAK EVEN WITH CURRENT CASH ON HAND 35
Slide 36: Q&A
Q&A 36
Slide 37: Appendix
APPENDIX HEXAGON PURUS
Slide 38: Quarterly Group revenue and EBITDA development
Quarterly Group revenue and EBITDA development +2% +10% +13% +12% 1,845 1,876 +8% +37% 1,682 528 544 1,483 REVENUE +90% 1,320 407 396 372 380 366 964 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 2
Slide 39: Financial statements | Group P&L
Financial statements | Group P&L Profit & Loss (NOK ‘000) Q4 2024 Q4 2023 FY 2024 FY 2023 FY 2022 Revenue from contracts with customers 395,616 362,904 1,843,525 1,311,811 959,205 Other operating revenue 687 2,713 32,314 7,803 4,720 Total revenue 396,303 365,616 1,875,839 1,319,614 963,925 Cost of ma
Slide 40: Financial statements | Segments P&L
Financial statements | Segments P&L Segment Profit & Loss (NOK ‘000) Q4 2024 Q4 2023 FY 2024 FY 2023 Hydrogen Mobility & Infrastructure (HMI) Revenue from contracts with customers 354,928 353,070 1,780,413 1,268,493 Other operating revenue 125 2,473 2,042 6,396 Total revenue 355,053 355,542 1,782,455
Slide 41: Financial statements | Group Balance sheet
Financial statements | Group Balance sheet Balance sheet (NOK ‘000) Q4 2024 Q4 2023 FY 2022 FY 2021 Property, plant and equipment 1,203,777 867,212 494,990 267,705 Right-of-use assets 561,162 544,765 152,300 52,219 Intangible assets 679,534 841,672 802,654 752,294 Investment in associates and joint
Slide 42: Financial statements | Group Cash flow
Financial statements | Group Cash flow Cash Flow (NOK ‘000) Q4 2024 Q4 2023 FY 2024 FY 2023 FY 2022 Profit before tax -669,574 -187,330 -1,211,669 -691,310 -440,898 Depreciation, amortisation and impairment 412,804 52,471 562,213 149,785 95,089 Net interest expense 57,293 -303 225,450 13,236 4,501 Ch
Slide 43: Investor relations information
Investor relations information EXCHANGE INFORMATION SHARE TRADING STATISTICS INVESTOR BASE1 • TICKER SYMBOL: HPUR ~6,910 • ISIN: NO0010904923 • EXCHANGE: OSLO STOCK EXCHANGE NOK ~2.4bn SHAREHOLDERS MARKET CAPITALIZATION1 38.4% OWNED BY HEXAGON COMPOSITES ASA³ NOK ~9.9m DAILY TURNOVER2 52.4% FREE FLO
Slide 44: Top 20 shareholders
Top 20 shareholders # SHAREHOLDER NUMBER OF SHARES HELD % OF SHARES OUTSTANDING 1 HEXAGON COMPOSITES ASA 164,578,833 38.4 % 2 CLEARSTREAM BANKING S.A. 59,675,053 13.9 % 3 Sumitomo Mitsui Trust Bank (U.S.A) 58,978,293 13.8 % 4 MP PENSJON PK 12,804,281 3.0 % 5 The Bank of New York Mellon SA/NV 11,307,
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