HydrogenPro ASA

Investor Presentation • Nov 22, 2021

Q3 2021 presentation

Elling Nygaard, CEO Martin Thanem Holtet, CFO 22nd of November 2021

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I. Q3 2021 highlights

• II. Market outlook
• III. Our offerings
• IV. Business update
• V. Finance
• VI. Summary

Q3 2021 highlights

• Acquired 75% of fabrication company THM including IP rights and 300MW production capacity
• Continuing preparation for international fabrication – securing production capacity and supply chain
• Fabrication plant for next-generation advanced electrode technology in Denmark completed – fullscale test ongoing

• Developing two sites with Mitsubishi for design verification of larger scale H2 production plants

• Prospect pipeline from 6.9GW to 8.2GW

• Key contract opportunities closer to FID and contract award
• Global commitments on energy transition accelerating

BUSINESS UPDATE SALES ORGANIZATIONAL DEVELOPMENTS

• New CEO and CCO onboarded
• Strengthening of board with three new members
• ISO certification process ongoing with planned completion Q4 2021

FINANCE
REVENUES	ADJ. EBITDA	INVESTMENTS	CASH POSITION
NOK 8.2m	NOK -4.9m	NOK 8.1m	NOK 443.4m

I. Q3 2021 highlights

II. Market outlook

• III. Our offerings
• IV. Business update
• V. Finance
• VI. Summary

Significant growth required to meet green H² demand in IEA 2050 Net Zero Emission Scenario

Strong public support commitments globally

• Annual quota cuts of almost 50 million tons CO² equivalents after 2020
  • Almost 90% reduction from 2013 to 2050
• Hydrogen Council members plan to invest more than USD 11.1 billion to commercialize hydrogen
  • Governmental co-funding essential to materialize projects
• 5th November: U.S. House of Representatives passed USD 1.2 trillion infrastructure bill
  • Allocates USD 8 billion to create four "clean hydrogen hubs" to test new applications
• 9th November: 28 companies pledge to accelerate use of decarbonized hydrogen at COP26
  • 1.6 million tons per year of lower-carbon intensity hydrogen
• Reducing CO² emissions by more than 14 million tons a year

CO2 taxes¹

Project triggers are CO² taxes, quota reductions and funding

1) Source: EU Commission Hydrogen Strategy 2020

• I. Q3 2021 highlights
• II. Market outlook

III. Our offerings

• IV. Business update
• V. Finance
• VI. Summary

HydrogenPro to become #1 large-scale provider of green hydrogen production plants

TECHNOLOGY LEADER	✓ Global IP rights for core technologies ✓ Owner of next-generation advanced electrode technology, ready for market in 2022 HydrogenPro's efficiency advantage is a game changer, reducing levelized cost of ✓ hydrogen significantly
STRATEGIC PARTNERSHIPS	Strategic partnership to scale up fast and take a leading position in high-growth markets. ✓ ✓ Combine key competencies of each party
GLOBAL FABRICATION STRATEGY	✓ China manufacturing 300MW production capacity Production hubs in Asia, Europe and the US to maintain cost leadership and ensure high ✓ local activity in end-markets
HIGHLY SCALABLE PRODUCT OFFERING	Large-scale solutions for a wide range of end-users in all segments and continents ✓ ✓ Easily scalable to meet end-user criteria ✓ Productivity improvements, cost reductions in design & standardization
LIFE CYCLE PARTNER	✓ Technology and innovation - Design and engineering - System integration - Commissioning - Maintenance and operation support

9

Major milestone in global technology and manufacturing strategy

• ✓ 75% owned by HydrogenPro
• ✓ Total investment NOK48m
• ✓ Full control over IP and core technology
• ✓ 300MW production capacity by Q2/22
• ✓ 34 employees
• ✓ Located in Tianjin, China

HydrogenPro's technology reduces cost of hydrogen significantly

Ready for market in 2022

1) Share of LCOH depends on electricity price, the interval is based on electricity price in the range USD 20 – 70 /MWh. Based on 100 MW facility, hydrogen pressure at 15 bar, civil works and auxiliaries not included (project specific), interest cost not included (client specific), use or sale of pressurized O2 as a bi-product with possible economical upside is not attributed as a value in the calculation. 2) Based on electricity price of USD20/MWh and the parameters in note 1

11

Electrode production facility located in Aarhus, Denmark

Technology advantages

• High pressure alkaline technology
• Plant efficiency
  • Compact size due to pressure and cell-stack size
• Capex efficiency
  • Large scale
  • Design limits of components
  • Modular and standardized
  • Easily scalable with customer requirements
• Opex efficiency
  • Advanced electrode technology
  • Reduced need of cooling water
• Operation window well suited for renewable energy production
• No use of noble metals or polyfluorinated alkyl substances (PFAS)

Large-scale modular hydrogen plant

• I. Q3 2021 highlights
• II. Market outlook
• III. Our offerings
• IV. Business update
• V. Finance
• VI. Summary

Significant increase in active sales pipeline with several investment decisions expected late 2021/2022

• GW electrolyser capacity 66 active projects in pipeline¹ vs. 55 as of end Q2
• Average size per project: 124MW
• Main end users: ammonia, metal, refineries, power to gas and several other industrial applications
• Several project leads and interest from large industrial players in addition to active sales pipeline
• High market activity continues in Q4
• Final investment decision (FID) on larger projects expected late 2021/2022

Active sales pipeline

1) H2V projects, DG Fuels and Mitsubishi in US are additional projects and are not included in the sales pipeline

Global fabrication set-up to maintain cost leadership and ensure local presence

First milestone: >1GW global production capacity

• Preparing for three main production hubs located in Europe, US and APAC
• Dynamic, flexible and asset light supply chain
  • Reduces upfront cost related to establishing own fabrication sites

• Partner with world-class fabrication & construction partners

  • Jointly develop supply chain aligned with market demand

• I. Q3 2021 highlights

• II. Market outlook
• III. Our offerings
• IV. Business update

V. Finance

VI. Summary

DG Fuels: electrolyser capacity of 839MW

• HydrogenPro joined Black & Veatch and Energy Vault, Inc. in financing all cash requirements for basic engineering/FEL-2
• Convertible loan of USD 3 million
• Electrolyser capacity up to 839MW, HydrogenPro exclusive provider
• Firm commitments and non-binding letters of intent for offtake agreements for material portion of expected production
• DG Fuels to raise additional equity and debt to fund the construction and the complete delivery
• DG Fuels aims to develop several facilities in North America and Europe to produce lowcarbon sustainable aviation fuel by combining carbon from waste feedstock with green hydrogen from renewable sources

Q3 2021 financials

(NOKm)

INCOME STATEMENT	Q3 2021	Q2 2021	YTD 2021
Revenue incl . other operating income ,	8.2	0.1	9.0
Raw materials and consumables used	6.5	0.1	7.3
Payroll expenses	3.1	2.0	6.8
Other operating expenses	3.6	3.3	10.5
Adj. EBITDA (excl. non-cash operating expenses)	-4.9	-5.3	-15.6
Non-cash payroll expenses	3.5	5.3	11.5
Non-cash other operating expenses	2.2	1.4	3.6
EBITDA	-10.6	-12.0	-30.7
Depreciation and amortisation expenses	1.3	1.3	4.0
EBIT	-12.0	-13.3	-34.8
Net financial items	0.4	0.0	0.3
before Result tax	-11.6	-13.3	-34.4
Tax expense	-0.2	-0.2	-0.7
Net profit	-11.4	-13.1	-33.8
CHANGE IN CASH BALANCE	Q3 2021	Q2 2021	YTD 2021
Cash balance of period start	471.2	489.5	506.1
(excl expenses) Adj EBITDA . non-cash operating	-4.9	-5.3	-15.6
Investments	-8.1	-20.3	-31.1
Changes in NWC/tax/other	-14.8	7.3	-16.0
Total changes in cash	-27.8	-18.3	-62.8
Cash balance end of period	443.4	471.2	443.4

• Adj. EBITDA¹ of NOK -4.9m, reported EBITDA of NOK -10.6m and a net loss of NOK11.4m in Q3 2021
• Revenues recognized in accordance with "percent of completion" principle
• Investments of NOK 8.1m during the quarter, incl:
  • Next generation electrodes (NOK 3.3m)
  • Test and technology center at Herøya (NOK 2.6m)
  • Production capacity (NOK 1.7m)
  • Other (NOK 0.5m)
• Changes in net working capital mainly related to accounts receivables from Mitsubishi purchase order
• 2690 shareholders as of 30 September 2021 compared to ~225 at time of IPO in October 2020

Robust financial position with clearly defined growth path

(NOKm)

BALANCE SHEET	Q3 2021	Q2 2021	FY 2020
ASSETS
Total intangible assets	61 3	59 5	55 3
Plant , machinery and equipment	16 6	11 6	2 8
Investments in subsidiaries , shares , other securities	0 1	0 1	0 1
fixed Total assets	85 .2	78.4	58 .1
Current operating assets	14 9	3 9	5 7
Cash and cash equivalents	443 4	471 2	506 1
Total current assets	458 .2	475 .1	511 .8
Total assets	543 .4	553 5	570 .0
EQUITY AND LIABILITIES
Total equity	528 .0	533 .6	515 .7
Provisions	9 7	9 8	10 3
Total short liabilities term	5 7	10 0	44 0
Total liabilities	15 .4	19.8	54 .3
Total equity and liabilities	543 .4	553 5	570 .0

▪ Cash balance of NOK 443.4m as of 30th September 2021

▪ Book equity ratio of 97.2% with no interest-bearing debt

Partnership strategy to fast-track build-up of global presence and market awareness…

…combined with a focused capital deployment plan:

Supply chain / fabrication

R&D and innovation: technology front-runner

Scale-up of the organization

Working capital on large-scale projects

• I. Q3 2021 highlights
• II. Market outlook
• III. Our offerings
• IV. Business update
• V. Finance
• VI. Summary

HydrogenPro is attractively positioned in fast-growing market

Partnership strategy to fast-track global upscaling

Global fabrication strategy

22

Growing momentum in projects and sales pipeline

Ongoing build-up of international organization

Strong public support commitments globally

www.hydrogen-pro.com