Pure Performance Pure Efficiency Pure Power
Q3 2023 presentation
7 November 2023
CEO Jarle Dragvik
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 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.
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 industrial applications and hard-to-abate sectors – enables the energy transition through hydrogen
Achievements and major developments
5 1) Advanced Clean Energy Storage hub
Financial development Q3 2023
Revenues NOK 220 million (Q2'23: 137 MNOK) Up >14x from Q3 2022, driven by deliveries to ACES project
Gross margin 10.2% (Q2'23: 21.6%) Driven by increased COGS
Adj. EBITDA NOK -19 million (Q2'23: NOK – 4 million) Other OPEX increased due to provisions for warranty accruals
Cash position NOK 133 million (30 June 23: NOK 182.7 million) Cash position 31 Oct 2023: 235 MNOK. Expect positive cash flow in 2H 2023
Order backlog NOK 322 million (30 June 23: NOK 548 million) Not including 100 MW order from ANDRITZ
Revenues, gross profit, and Adj. EBITDA
UNAUDITED FIGURES
- Revenues are up 61% from last quarter and >14x same quarter last year
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Outlook: HydrogenPro to recognise ~90% of the ACES contract revenues (>\$50M) by the end of 2023 - with a positive project margin
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COGS increased in the quarter following variation orders and writedowns of obsolete goods due to temporarily challenges in manufacturing process
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Gross margin of 10.2% percent in Q3, 14.6% year to date
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Personnel expenses increased due to an increase in number of employees and increased social security and pension costs
- Other OPEX impacted by:
- Recognition of R&D grants
- Warranty provisions of NOK 11.5 million
Cash position and investments
UNAUDITED FIGURES
- Positive net cash flow in October of NOK 102 million, cash position of NOK 235 million 31 October 2023
- Reiterate outlook: ACES project expected to be net cash flow positive in 2H
- HydrogenPro is not actively commencing preparations for listing at the Nasdaq stock exchange but is continuously considering this as a possibility
ANDRITZ confirms Purchase Order for 18 electrolysers from HydrogenPro
- 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 Salzgitter Flachstahl GmbH site on an EPC basis, incorporating pressurized alkaline electrolyzer technology from HydrogenPro
- First stage of project expected to be operational by 2026. Manufacturing to begin end Q1 2024
Mitsubishi Power confirms successful validation, installation, and operation of electrolysers
Exclusive supplier to ACES1 project: the world's largest green hydrogen energy hub
ACES hub provides a complete end-to-end solution to produce, store, and convert renewable hydrogen to support carbon-free year-round power for Western US.
- >50\$M contract value for 220MW electrolysis plant
- In addition: a 10-year service and support agreement
- High-pressure alikaline electrolysers, suitable for renewable energy input
HydrogenPro delivering 220 MW Progressing on delivery Chevron acquired majority stake in ACES
12 Sept 2023
1) Advanced Clean Energy Storage
DG Fuels' FEL 3 study on track
Exclusive supplier of >800MW electrolysers for DG Fuels' Sustainable Aviation Fuel plant in Louisiana, US
DG Fuels and Airbus enter strategic partnership
Guilleume Faury, CEO Airbus, 12 September 2023:
- "SAF is absolutely critical to the success of decarbonization…
- We are working around the world with partners, and DG Fuels is one of them, very promising technology, we really believe in the company. That is why we have decided to work with them, and spend some money with them, to enable the production of SAF…
- We strongly believe in hydrogen…we strongly believe that we will be ready by 2035 with hydrogen planes."
Hydrogen momentum in the US continues
Biden administration lunched funding for hydrogen hubs to develop a sustainable value chain in the US
- Seven regional clean hydrogen hubs to receive USD 7 bn in government funding
- Five hubs will include green hydrogen based on water electrolysis
- Expected to catalyse more than USD 40 bn in private investments
HydrogenPro Inc. hires CEO Jeff Spethmann to lead the US expansion
- To begin in January 2024
- Strong acumen as an entrepreneurial executive and business development
Background
- SVP at Donaldson Company Inc. for \$1BN Industrial Products division
- CEO Waltek Inc. manufacturing
- MBA Carlson School of Management
- BS ME Univ. MN Institute of Technology
US expansion plans being re-evaluated following of the revised priorities presented by board of directors
Previously announced plan to build a manufacturing facility in Texas is being re-evaluated HydrogenPro's priorities for a US expansion
HydrogenPro aims to establish delivering capacity in the US in 2024 and will present an updated strategy for the US expansion plan in an extended Q4 presentation beginning of next year
provider of large-scale green hydrogen technology & systems