HydrogenPro ASA

Investor Presentation • May 7, 2024

Q1 2024 Presentation

7 May 2024

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 events to be materially different from those expected or implied by the forwardlooking statements or information. The Company does not provide any assurance that the assumptions underlying such statements or information are free from errors nor accept any responsibility for the future accuracy of opinions expressed herein or as part of the Information, or the actual occurrence of forecasted developments.

Agenda

• › Quarterly highlights
• › Financials
• › Technology update

Q&A

Recent achievements and major developments

Cooperation strengthened with Andritz' strategic investment of NOK 82.7 million

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About the transaction

• Announced April 10th, Andritz (one of the leading EPC companies within green hydrogen) made a NOK 82.7 million equity investment in HydrogenPro (cash impact in Q2 2024)
• The investment strengthens the strategic partnership with Andritz, providing HydrogenPro a significant better market reach
• The proceeds will be used to finance development and testing, as well as general corporate purposes
• The cooperation has already proved successful with a 100 MW order for Salzgitter steel plant in Germany (Nov 2023)

About Andritz

▪ International technology group Andritz offers a broad portfolio of innovative plants, equipment, systems, services and digital solutions for a wide range of industries and end markets

New Board of Directors

DAG J. OPEDAL Chairman of the Board

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JARLE TAUTRA Board Member

ASTA STENHAGEN Board Member

GEIR BREDO LARSEN

Board Member

MARIANNE M. AAMODT Board Member

VIVIAN Y. C. ESPESETH Board Member

BJØRN HANSEN Board Member

Competent management team in place

Executive management

Slow start of the year, but high tender activity

› Globally

• Few contracts have been awarded in general in the market and FID decisions are being delayed
• Project awards and FIDs expected to mature during second half of 2024
• During the last quarter, leading players in hard-to-abate sectors have brought their projects closer to FID by entering FEEDs as well as selecting suppliers for their long-planned projects
• HydrogenPro's sales pipeline growth remains stable with insignificant project cancellations
• › Europe
  • European Commission has awarded nearly €720 million to seven renewable hydrogen projects
• › USA

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• Waiting for final clarifications on Inflation Reduction Act 45V clean hydrogen production tax credit

Hannover conference

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"The world's leading Trade Fair for industrial technology"

"The Norwegian company HydrogenPro, which is set to supply electrolysers for the green hydrogen shift, ordered by the German steel giant Salzgitter… "

– Norwegian PM Jonas Gahr Støre 21 April 2024

Key priorities in 2024

• › Successful installation & commissioning of ACES
• › Delivering on Salzgitter

• › Increase order intake

• › Full-scale validation of electrode technology

• › Conclude expansion of electrode manufacturing capacity

Agenda

• › Quarterly highlights
• › Financials
• › Technology update

Q&A

Key P&L items

NOK Million

• › Limited activity after ACES and prior to start-up of Salzgitter
• › ACES project: additional costs for replacement of some auxiliary components reduced gross profit with NOK 5 million in the quarter
• › In addition, adj. EBITDA negatively impacted by NOK 8 million write-down of the replaced auxiliary components on ACES project

Cash balance, changes in cash and backlog

NOK Million

Scaling up with a strict capital discipline

• › Key focus area: technology & innovation mostly funded with R&D grants
• › On-going feasibility study of expansion of electrode manufacturing

• › Lean global organization

• › Partnership with Andritz reduces need of building a large organization in Europe

• › Competitive and flexible supply chain
• › Retaining a sustainable net working capital

Agenda

• › Quarterly highlights
• › Financials
• › Technology update

Q&A

HydrogenPro Technology organization set-up

R&D grants enable a high activity level

RECENT R&D GRANTS R&D PROJECTS

Recent funding

NOK 190m (last 2 years)

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Some funded projects Low-cost H2 H2 lean H2 Boost H2 SAF Ph swing

Electrode capacity expansion

Electroplating NextGen electrodes with lower energy consumption

Other R&D projects

Advanced electroplating Novel electrocatalysts Characterisation methods Modelling

HydrogenPro's technology seeks to exceed customer demands

CUSTOMER CRITERIA

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Safety Low power consumption (OPEX) Robust and flexible operations Low CAPEX High purity product Pressurised electrolyser Well proven technology operated for decades Suitable for renewable energy input, modularbased to suit customers' size needs Next gen electrodes reducing power consumption with limited cooling need No use of noble materials and additional compressor Pressurized technology at 15 bar Core process technology developed over several years offering high purity

HYDROGENPRO TECHNOLOGY

Preparing for full-scale validation of electrodes

Developing technology together with strong industrial partners

Mitsubishi Heavy Industries & Andritz

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Mobilise for hot commissioning of the ACES plant

• Strengthen large-scale experience with commissioning, startup and operation relevant for, i.e. Salzgitter

Prepare for demonstration test of a full-sized electrolyser with improved electrodes

• Co-creating optimal solutions for the Salzgitter plant together with Andritz
  • o Full scale pilot testing in Porsgrunn with Gen3 electrodes
  • o Collect various performance data under varying conditions

Our technology roadmap is focused on delivering best-in-class offering

SHORT TERM <1 year

Ensure successful completion of ACES and Salzgitter

More piloting and data analysis

Full scale testing of NextGen electrodes

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MEDIUM TERM 1 – 2 years

More pilot capabilities

Optimise stack configurations with new electrodes

Increased Next-Gen electrode capacity

Advance modelling capacities based on industrial data

Optimize electrolyser and gas separator setup and balance of plant

LONG TERM

3-4 years

Commercialise new electrolysers with i.e. higher yield and pressure and NextGen electrodes

Electrode capacity expansion

Agenda

• › Quarterly highlights
• › Financials
• › Technology update

Q&A

APPENDIX

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HydrogenPro is a global provider of market-leading, largescale green hydrogen technology & systems

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 hydrogen ready for industrial use

GAME-CHANGING ELECTRODE TECHNOLOGY

• 14% lower electricity need for same H2 output
• Reduced cooling water need
• Reduced OPEX from H2 production

Market-leading levelised cost of hydrogen

HydrogenPro targets

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Industrial applications and hard-to-abate sectors – enables the energy transition through hydrogen

Income statement

NOK million	Q1 2024	Q4 2023	Q1 2023'	2023
Revenue from contracts with customers	4	127	83	568
Cost of goods sold	4	71	71	447
Gross profit/(loss)	-0	56	13	121
Personnel expenses	28	22	15	82
Other operating expenses	28	22	14	66
Adj. EBITDA	-56	12	-16	-27
Non-cash cost of incentive programs/payrolls	0	-4		3
Non-cash provisions with limited predictive value	0	-1	0	6
EBITDA	-56	17	-17	-36
Depreciation and amortization expenses		6	5	22
EBIT	-63	11	-22	-58
Net financial income and expenses	16	-11	12
Profit/(loss) before income tax	-47	- 1	-10	-63
Income tax expense	0	0	0	0
Profit/(loss)	-47	1 -	-10	-63

Balance sheet

NOK million	31 Mar 2024	31 Dec 2023
Assets
Intangible assets	60	58
Property, plant and equipment	65	68
Right of use assets and financial investments	55	56
Total non-current assets	180	182
Current operating assets	208	301
Cash and cash equivalents	185	161
Total current assets	393	462
Total Assets	573	644
Equity and liabilities
Total equity	415	453
Total non-current liabilities	20	18
Total current liabilities	139	172
Total liabilities	158	190
Total equity and liabilities	573	644