HydrogenPro ASA

Quarterly Report • Feb 25, 2025

Fourth quarter 2024

HydrogenPro / Fourth Quarter Report 2024

HydrogenPro ASA 1

About HydrogenPro3
Highlights 4
Q4 2024 Highlights 4
Financials4
Q4 2024 Summary5
Developments during the quarter5
Outlook 6
Financials7
Income statement7
Net financial items8
Balance sheet8
Cash flow9
Condensed interim financial statements11
Consolidated statement of financial position12
Consolidated statement of changes in equity13
Consolidated statement of cash flows13
Notes to the financial statements15
Note 1 – Organization and basis for preparation 15
Note 2 – Revenue from contracts with customers and segments 16
Note 3 – Intangible assets17
Note 4 – Property, plant, equipment and right-of-use asset17
Note 5 – Financial investment 18
Note 6 – Inventory18
Note 7 – Provisions 19
Note 8 – Overview of Group companies19
Note 9 – Trade Receivables 20
Note 10 – Change in Presentation of Income Statement20
Responsibility Statement 21
Alternative Performance Measures23

About HydrogenPro

HydrogenPro, established in 2013, specializes in pioneering green hydrogen technology solutions in partnership with global collaborators and suppliers.

HydrogenPro is an original equipment manufacturer with a high focus on R&D. Headquartered at Herøya, Norway, our proudest achievement lies in developing cutting-edge high-pressure alkaline electrolyzers, including proprietary electrode technology that enhances our global competitiveness. Designed for scalability with renewable energy inputs, our electrolyzers offer cost-effective solutions crucial for enhancing sectors like wind, solar, and other renewables in the energy transition. Green hydrogen, as a versatile energy carrier, plays a pivotal role in advancing the green energy shift. At HydrogenPro, we are dedicated to leading the green hydrogen industry forward with our innovative technology and expertise, driving towards a sustainable future.

Our team comprises highly skilled professionals, including key experts in global hydrogen technology. In addition to our operations in Norway, we operate R&D, sales, and manufacturing facilities across Denmark, Germany, the US and China.

We take great pride in our ESG strategy about creating a sustainable society with hydrogen. Our technology supplies high-performance and zero emission energy, to help you reach your production and sustainability goals all at the same time.

By powering innovation, we are energizing tomorrow. We are changing the world. For good.

Highlights

Q4 2024 Highlights

• █ Revenues for the quarter of NOK 70 million (compared to NOK 72 million in Q3 2024, NOK 127 million in Q4 2023)
• █ EBITDA of NOK -44 million (compared to NOK -38 million in Q3 2024 and NOK 17 million in Q4 2023)
• █ Cash balance of NOK 191 million (compared to NOK 188 million end of Q3 2024 and NOK 161 million end of Q4 2023)
• █ Strategic NOK 70 million investment from existing investors and conditionally NOK 70 million from new strategic partner

Financials

Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 NOK million

NET PROFIT

BACKLOG NOK million

EBITDA NOK million

Q4 2024 Summary

Developments during the quarter

Market development

The pace of large-scale green hydrogen projects progressing from announcement to engineering and market entry has slowed toward the end of the year. While new subsidy programs and fresh rounds of EU and national funding continue to support these projects, they must first undergo qualification and FEED phases before moving into advanced selection processes, with final investment decisions (FID) expected in the coming years.

During the fourth quarter, further cancellations of previously announced projects have been announced, ranging from 50 to 200 MW, whereas some also affecting HydrogenPro. The primary reasons cited for these withdrawals include a lack of government funding, rising capital and setup costs due to general inflation, and increased expenses on balance of plant equipment and construction, all of which make these projects financially unviable. Additionally, restraints on infrastructure, transportation and the cost of such are factors limiting the markets' appetite on entering into offtake agreements. At the same time more affordable fossil energy alternatives are available at a lower cost and expectations of a less aggressive carbon taxation policy in the short-term perspective prevail.

The European Hydrogen Bank has further clarified its requirements regarding electrolyzer origin. For HydrogenPro, this means we will remain fully compliant with minor supply chain adjustments, coupled with our continued assembly operations in Germany in cooperation with our partner. The fact remains, however, that these requirements are driving up costs for European projects in general, leading to slowing new project developments in the region further down.

Project Portfolio and Market Trends

For HydrogenPro's portfolio—both independent and partnered projects—we have seen relatively few outright cancellations but are experiencing general delays in project finalization and FID processes. Among targeted sectors, Power-to-X (PtX), ammonia, and hydrogenas-fuel segments remain more active than refinery or large-scale sustainable aviation fuel (SAF) projects. This is likely due to the substantial hydrogen volumes these industries require, combined with the expectation of lower carbon taxation and continued acceptance of low-carbon hydrogen (e.g., blue hydrogen) in major projects.

Across the US, Europe, the Middle East, and India, we see increasingly mature and professional players entering the market. In response, HydrogenPro is intensifying its activity in these regions by forming strong, strategic partnerships to strengthen market entry.

In North America, long-term projections for green and low-carbon hydrogen remain strong, though delays persist. Our partnerships enhance our market presence and credibility with key project developers and operators. However, uncertainty remains regarding the final implementation of recently released incentive program rules, particularly as potential political shifts may impact their application.

While we await FIDs on announced projects, the global electrolyzer market continues to face overcapacity challenges. As a result, maintaining a disciplined and flexible ramp-up strategy—rather than premature scaling operations—will be essential. Additionally, structuring our business to withstand extended periods of low order volume ensures we remain prepared when market conditions improve. In the meantime, our focus will remain on:

• Rigorous testing and demonstration of our technologies,
• Consistent execution of ongoing deliveries, and
• Strategic positioning to capitalize on emerging opportunities.

Strategic NOK 70 million investment from existing investors and conditionally NOK 70 million from new strategic partner

On 23rd December 2024, HydrogenPro announced raising NOK 70 million through a private placement of new shares directed at its existing shareholders, ANDRITZ AG and Mitsubishi Heavy Industries Ltd. (MHI). Additionally, the company has entered into an investment agreement with LONGi Hydrogen Technology Co., Ltd., involving a conditional equity investment of approximately NOK 70 million, and a cooperation agreement.

Upon the successful completion of the LONGi investment, the combined gross proceeds from the private placement and the LONGi investment will total NOK 140 million. The subscription price for both the private placement and LONGi investment is NOK 5.50 per share, higher than the NOK 4.50 per share market price as of 20 December 2024.

LONGi Hydrogen Technology, a subsidiary of LONGi Green Energy Technology Co., Ltd., specializes in green hydrogen equipment and solutions. Its parent company is a global leader in solar photovoltaic (PV) products and solutions, listed on the Shanghai Stock Exchange.

HydrogenPro awarded EUR 16.5 million grant for large scale production of next-generation electrode technology

On 3 October 2024, HydrogenPro announced that its Danish subsidiary, HydrogenPro ApS, has been awarded a EUR16.5 million grant from the EU Innovation Fund. This funding will support large-scale production of next-generation electrode technology, enhancing the efficiency of HydrogenPro's high-pressure alkaline electrolyzers and further reducing the Levelized Cost of Hydrogen.

This EU grant is pivotal in financing the H2-GIGA project and follows a previous award of DKK 35 million from Denmark's Export and Investment Fund in May 2024. Together, these grants cover more than 50% of the project's total investment scope.

The H2-GIGA large-scale factory will build on this experience, with a total of 500 MW manufacturing capacity, and has the potential for significant expansion to meet growing customer demand.

Outlook

The hydrogen market continues to evolve amid shifting global dynamics. While large-scale projects have faced delays, there is increasing momentum for smaller, scalable projects that align with current infrastructure and investment trends. Europe is emerging as a key driver of hydrogen adoption, supported by policy incentives and a growing demand for decarbonization solutions. While the U.S. was previously the primary market for renewable energy expansion, attention is gradually shifting toward Europe, though the transition will require time to establish necessary infrastructure and off-take agreements.

Despite temporary setbacks, the long-term outlook for green hydrogen remains positive. Several large projects that were previously delayed are progressing toward Final Investment Decisions (FID), signaling renewed confidence in the sector. However, challenges related to funding, rising capital costs, and uncertainty around incentive programs continue to impact investment timelines.

HydrogenPro is well-positioned to leverage these market trends through its established expertise, advanced technology, and strategic partnerships. Key developments include:

HydrogenPro remains a proven supplier for major hydrogen initiatives based on its deliveries to 2 of the ten largest projects outside of China. The company's involvement in delivering 42 electrolyzers (plus two reserves) for the ACES project and 20 electrolyzers for Salzgitter reinforces its credibility in large-scale hydrogen infrastructure as well as having the some of the few documented operational projects as reference.

The company is progressing toward full-scale testing of its next generation electrolyzer at Herøya, Norway. It is currently in a start-up phase, and the test marks an important milestone in HydrogenPro's efforts to enhance efficiency and performance in hydrogen production.

Several hydrogen projects are advancing through key phases, increasing the likelihood of investment approvals. While some may proceed with revised scopes due to financial constraints, HydrogenPro remains focused on securing firm purchase orders to ensure continued growth and cash flow stability.

HydrogenPro's collaborations with Andritz in Europe, Mitsubishi in America, and latest LONGi in China provide strong market positioning in key regions. These partnerships enhance the company's ability to address varying regulatory and commercial requirements across different markets.

As HydrogenPro is well positioned through partnership on three continents USA, Europe and East Asia, the energy transition and development of Hydrogen value chain is emerging in India and the Middle East. HydrogenPro is addressing these emerging markets developing foothold over the next periods.

European regulatory requirements, particularly those set by the European Hydrogen Bank, are shaping investment decisions. HydrogenPro is compliant with these regulations, leveraging a supply chain model that integrates key processing steps like electrode production in Aarhus and assembly in Erfurt while still sourcing some key components from China. This ensures that customers qualify for available financial incentives.

However, rising trade barriers and protectionist policies in certain regions could increase costs for European hydrogen projects, potentially slowing adoption. HydrogenPro continues to advocate for efficiency-driven cost reductions rather than restrictive trade measures to accelerate the energy transition.

While market conditions remain fluid, HydrogenPro is well-positioned to navigate challenges, drive innovation, and support the long-term growth of the green hydrogen sector.

In our 2023 Annual Integrated Report, several key risks that could impact the Company's business operations and financial performance were identified. As of this quarter, we confirm that these risks remain relevant and continue to be actively monitored and managed. Below is a summary of the primary risks faced by our Company:

Strategy and Business Risk: The hydrogen production market is still developing, with risks from market volatility, client expectations, and regulatory changes. On 27 September 2024, the European Hydrogen Bank introduced new regulations limiting projects to sourcing no more than 25% of electrolyzer stacks from China. Following further clarification, HydrogenPro will remain compliant with minor supply chain adjustments and continue assembly operations in Germany with our partner. However, these requirements are expected to increase costs for European projects, which poses a risk to business by potentially delaying new developments in the region.

Operational Risk: The Company is exposed to potential disruptions in its supply chain, especially given its reliance on suppliers in China.

Technology Risk: Main technology risks are non-competitive performance of our equipment and limited access to long-term performance data, with limited resources to conduct short-term testing. Until long-term data is validated at customers' sites, success relies on accurate estimates and manageable liabilities. Building trust requires competitive performance, timely delivery, and strong customer support and cooperation.

People Risk: As the Company matures, pressure on staff and leadership increases, with risks of key person and staff turnover. The company is actively working to improve the work environment and has seen significant improvements in reducing unwanted turnover.

Health, Environmental, and Safety Risk: The Company manages health, safety, and environmental risks at its various facilities, including those in China, Denmark, and Norway, which has led to significant improvements in work related incidents and reduced risks.

ESG Risks: The Company faces challenges in meeting environmental, social, and governance (ESG) expectations, which could lead to higher costs or reputational damage.

Financing risk: the Company faces financial risks from fluctuations in commodity prices like steel and nickel, and counterparty risks. Ensuring sufficient liquidity, both short and long term, is essential to continue operations, pursuing contracts and strategic goals. Until the Company generates positive cash flow from business operations, the Company is dependent on external financing, and in the event no capital is available, the Company will meet financial difficulties to continue operations.

All of these risks are continuously monitored and mitigated through a wide range of measures, including, but not limited to actively assessing and pursuing financing alternatives, establishment and implementation of systems and procedures in all parts of the organization, approval matrices, quality control,HSE, diligent planning, information sharing, insurances, contractual terms, credit assessment etc.

Financials

Income statement

Q4 2024	Q3 2024	Q4 20231	NOK million	FY 2024	FY 20231
7 0	7 2	127	Revenue from contracts with customers	196	568
41	53	39	Direct materials1	147	331
2 9	1 9	8 8	Gross profit/(loss)	4 9	237
41 %	26 %	69 %	Gross margin	25 %	42 %
42	40	26	Personnel expenses	144	120
31	18	45	Other operating expenses	109	154
-44	-38	1 7	EBITDA	-205	-36
6	6	6	Depreciation and amortization expenses	23	22
-50	-44	1 1	EBIT	-228	-58
12	6	-11	Net financial income and expenses	27	-5
-38	-38	- 1	Profit/(loss) before income tax	-200	-63
0	-	-	Income tax expense	-	-
-38	-38	- 1	Profit/(loss)	-200	-63

¹See Note 10 Change of Presentation of Income Statement

HydrogenPro generated revenues of NOK 70 million during the fourth quarter of 2024 compared to NOK 72 million in the third of quarter and NOK 127 million in the fourth quarter of the previous year. The revenues in fourth quarter 2024 are mainly related to deliveries to the SALCOS project (100 MW) with ANDRITZ in Germany.

Direct material (includes raw materials and components for project delivery) for the quarter amounted to NOK 41 million compared to NOK 53 million in third quarter of 2024 and NOK 39 million in fourth quarter of 2023. The lower cost of direct materials in this quarter compared to the previous quarter is mainly due to higher project expenses related to the ACES project in the third quarter vs. fourth quarter.

Personnel expenses as presented above includes all payroll and related expenses including those of staff who work directly within project delivery. This amounted to NOK 42 million, same as in the third quarter of 2024. The comparable payroll amount was NOK 26 million for the fourth quarter of 2023.

Other operating expenses amounted to NOK 31 million in the fourth quarter, compared to NOK 18 million in the third quarter (and NOK 45 million for the fourth quarter of 2023). The NOK 13 million increase from the third to the fourth quarter is primarily driven by the following factor; i) the third quarter included a NOK 6 million reversal of a 2023 provision, ii) the fourth quarter incurred higher expenses for professional services in relation to capital raise which was announced on 23 Dec 2024 and other operational costs (NOK 3 million) and iii) additional operating expenses related to the SALCOS project (NOK 4 million).

EBITDA was NOK -44 million in the fourth quarter of 2024 (NOK -38 million in third quarter of 2024 and NOK 17 million in the fourth quarter of 2023.

Depreciation & amortization expenses were NOK 6 million in fourth quarter, the same level as in third quarter of 2024. This is the same level as the fourth quarter of 2023.

EBIT in the fourth quarter 2024 amounted to NOK -50 million compared to NOK -44 million in the third quarter of 2024. The amount is NOK 11 million for the fourth quarter of 2023.

Net loss for the fourth quarter amounted to NOK -38 million compared to a loss of NOK -38 million in third quarter of 2024 (and NOK -1 million in fourth quarter of 2023).

The order backlog amounted to NOK 305 million as of 31 December 2024, compared to NOK 341 million as of 30 September 2024 (NOK 423 million as of 31 December 2023).

Net financial items

Q4 2024	Q3 2024	Q4 2023	NOK million	FY 2024	FY 2023
0	2	1	Interest gain (+)/expense (-)	4	4
12	4	-12	Net foreign exchange gain (+)/expense (-)	25	-8
-2	-	-	Impairment of financial assets	-2	0
1	- 0	0	Other finance income (+)/expense (-)	-1	- 1
1 2	6	-11	Net financial items	2 7	- 5

Net financial items amounted to a gain of NOK 12 million in the fourth quarter 2024 and a gain of NOK 6 million in the third quarter of 2024. The amount for the fourth quarter of 2023 is a loss of NOK 11 million. The gain in financial items in 2024 is primarily linked translation gains from outstanding receivables in foreign currency primarily, USD.

The figures in the fourth quarter include a recognition of an impairment of NOK 2 million, in non-current receivables. The impairment is approximate 50 % of the value of the receivable.

Balance sheet

NOK million	31 Dec 2024	30 Sep 2024	31 Dec 2023
Assets
Intangible assets	56	57	58
Property, plant and equipment	89	76	68
Right of use assets and financial investments	55	55	56
Total non-current assets	200	188	182
Current operating assets	190	186	301
Cash and cash equivalents	191	188	161
Total current assets	382	374	462
Total Assets	582	562	644
Equity and liabilities
Total equity	348	385	453
Total non-current liabilities	22	21	19
Total current liabilities	211	155	172
Total liabilities	233	177	191
Total equity and liabilities	582	562	644

As of 31 December 2024, total assets were NOK 588 million, up from NOK 562 million in the previous quarter and down from NOK 644 million a year earlier.

Non-current assets increased to NOK 200 million from NOK 188 million last quarter, including a relatively stable intangible assets and financial assets at NOK 56 million and NOK 55 million respectively, and an increase in plant, machinery, and equipment to NOK 89 million from NOK 76 million.

Current assets slightly increased to NOK 382 million from NOK 374 million last quarter, with current operating asset and cash & deposits increasing by NOK 4 million and NOK 3 million to NOK 190 and NOK 191 million respectively.

Equity totaled NOK 348 million, down from NOK 385 million last quarter, with an equity ratio of 59.9%, down from 68.6% last quarter.

Total liabilities increased to NOK 233 million, almost exclusively due to increase in current liabilities to NOK 211 million from NOK 155 million in the previous quarter. Current liabilities include trade payables, other short-term obligations, and provisions for warranty related to project activity (see Note 7).

Cash flows

Q4 2024	Q3 2024	Q4 2023	NOK million	FY 2024	FY 2023
188	247	133	Cash balance start of period	161	257
14	-41	37	Net cash flow from operating activities	-22	-188
-9	-15	-8	Net cash flow from investing activities	-25	-20
-1	-3	-1	Net cash flow from financing activities	78	111
4	-59	2 8	Total changes in cash	3 1	-96
191	188	161	Cash balance end of period	191	161

Net change in cash position during the fourth quarter 2024 was NOK 4 million (increase in cash position) compared to NOK - 59 million (decrease in cash position) in the third quarter 2024.

At the end of the fourth quarter 2024 the cash balance was NOK 191 million, compared to NOK 188 million at the end of the third quarter of 2024 and NOK 161 million as of the fourth quarter of 2023.

During this fourth quarter, net cash flow from investing activities was NOK -9 million, compared to NOK -15 million in the third quarter 2024. These investments primarily support the expansion of manufacturing capacity in Aarhus. The corresponding amount for the fourth quarter of 2023 is NOK -8 million.

Net cash flow from financing activities in the quarter was NOK -1 million compared to NOK -3 million in the third quarter 2024.The corresponding amount for the fourth quarter of 2023 is NOK -1 million. This is primarily linked to payment of lease liabilities.

On 23rd December 2024, HydrogenPro announced raising NOK 70 million through a private placement of new shares directed at its existing shareholders, ANDRITZ AG and Mitsubishi Heavy Industries (MHI). Additionally, the company has entered into an investment agreement with LONGi Hydrogen Technology Co., Ltd., involving a conditional equity investment of approximately NOK 70 million, and a cooperation agreement.

Share capital increase was registered on 13th January 2025, and payment of NOK 70 million received 17 January 2025 from ANDRITZ AG and Mitsubishi Heavy Industries Ltd. (MHI).

The capital injection from LONGi is expected to be registered and paid in the second quarter of 2025.

Financial statements

HydrogenPro / Fourth Quarter Report 2024

HydrogenPro ASA 10

Condensed interim financial statements

Condensed Consolidated statement of comprehensive income (unaudited)

Q4 2024	Q4 20231	NOK '000	Notes	FY 2024	FY 20231
		Operating income and operating expenses
70 053	127 308	Revenue from contracts with customers	2	195 688	568 233
70 053	127 308	Total revenue		195 688	568 233
41 102	39 407	Direct materials1		146 967	330 979
28 951	87 901	Gross Profit		48 722	237 254
42 232	26 366	Personnel expenses		144 348	119 725
31 061	44 970	Other operating expenses		108 900	153 539
-44 342	16 565	EBITDA		-204 527	-36 010
5 535 -49 877	6 035 10 530	Depreciation and amortization expense EBIT	3,4	23 265 -227 792	22 281 -58 292
26 439	12 545	Financial income		43 730	33 502
-14 848	23 597	Financial expenses		-16 418	38 147
11 591	-11 052	Net financial income and expenses		27 313	-4 645
-38 285	-522	Profit / (loss) before income tax		-200 480	-62 936
-	-	Income tax expense		-	-
-38 285	-522	Profit / (loss) for the period		-200 480	-62 936
		Other comprehensive income:
		Items that may be reclassified to profit or loss:
342	-3 346	Exchange difference on translation of foreign operations		7 024	-730
342	-3 346	Net Other comprehensive income		7 024	-730
-37 943	-3 868	Total comprehensive profit / (loss) for the period		-193 457	-63 666
		Total comprehensive profit / (loss) for the period attributable to:
-36 791	-8 336	Equity holders of the parent company		-189 380	-65 243
-1 152	4 468	Non-controlling interest		-4 076	1 576
		Earnings per share (in NOK)
-0,54	-0,13	Basic and diluted earnings per ordinary share1)		-2,88	-1,09

1) Based on average 68.28 million shares (59.94 million for 2023) outstanding for the purpose of earnings per share

¹See Note 10 Change of Presentation of Income Statement

Condensed Consolidated statement of financial position (unaudited)

NOK '000	Note	31 Dec 2024	31 Dec 2023
Assets
Intangible assets	3	56 295	57 932
Property, plant and equipment	4	88 811	68 157
Right of use assets	4	17 283	20 455
Financial assets	5	34 060	30 517
Other receivables		3 499	4 804
Total non-current assets		199 949	181 865
Current assets
Inventories	6	27 509	14 554
Trade receivables	9	115 292	179 184
Contract assets	2	15 272	65 836
Other receivables		32 406	41 665
Cash and bank deposits		191 216	160 531
Total current assets		381 694	461 770
Total assets		581 643	643 634
Equity
Share capital		1 402	1 266
Share premium account		775 875	691 796
Other equity contributed		42 596	38 558
Other equity		-480 271	-284 221
Currency translation difference		6 398	-625
Equity attributable to HydrogenPro's shareholders		346 000	446 774
Non-controlling interest		2 362	6 438
Total equity		348 362	453 212
Deferred tax
Non-current lease liabilities		- 12 305	- 11 428
Non-current provisions	7	9 538	6 785
Total non-current liabilities		21 843	18 213
Current liabilities
Current lease liabilities		5 651	8 933
Trade creditors		59 361	39 170
Contract liabilities	2	916	49 641
Public duties payable		8 558	6 128
Other short term liabilities	7	136 952	68 338
Total current liabilities		211 438	172 209
Total liabilities		233 281	190 422
Total equity and liabilities		581 643	643 634

The Board of Directors and Chief Executive Officer Hydrogen Pro ASA Oslo, 24 February 2025

Porsgrunn/Oslo, 24 February 2025

(All signatures electronically signed)

Dag J. Opedal	Asta Stenhagen	Jarle Tautra	Vivian Y Chen Espeseth	Marianne Mithassel Aamodt	Geir Bredo Larsen
Chair of the Board	Board member	Board member	Board member	Board member	Board member
Bjørn Hansen	Jarle Dragvik
HydrogenPro ASA 12 Board member	CEO

Condensed Consolidated statement of changes in equity (unaudited)

NOK '000	Share capital	Share premium account	Other equity contrib.	Currency translat. Difference	Other equity	Equity attrib. to share holders	Non controlling interest	Total equity
Equity as at 01.01.2023	1 161	575 039	34 162	-588	-219 117	390 657	4 963	395 620
Total comprehensive income				-730	-64 513	-65 243	1 576	-63 666
Reclassification				693	-592	101	-101	0
Issue of shares	105	116 757				116 862		116 862
Cost of share-based payment			4 396			4 396		4 396
Equity as at 31.12.2023	1 266	691 796	38 558	-625	-284 221	446 773	6 438	453 212
Equity as at 01.01.2024	1 266	691 796	38 558	-625	-284 221	446 773	6 438	453 212
Total comprehensive income				7 024	-196 404	-189 380	-4 076	-193 457
Issue of shares	136	1 508				1 644		1 644
Private placement		82 571				82 571		82 571
Cost of share-based payment			4 038		354	4 392		4 392
Equity as at 31.12.2024	1 402	775 875	42 596	6 398	-480 271	346 000	2 362	348 362

Condensed Consolidated statement of cash flows (unaudited)

Q4 2024	Q4 2023	NOK '000	Notes	YTD 2024	FY 2023
		Cash flows from operating activities
-38 285	-522	Profit / (loss) before income tax		-200 480	-62 936
5 894	6 035	Depreciation and amortization expense	3,4	23 265	22 281
1 416	-	Loss on disposals on property, plant and equipment		5 549	-
997	-3 662	Option cost no cash effect		4 391	3 312
-3 332	21 766	Change in trade receivable and contract assets		119 870	-206 607
3 558	5 774	Change in inventory		-12 954	21 207
11 901	2 868	Change in trade payable and contract liabilities		-28 533	2 542
1 839	-	Impairment of financial assets		1 839	-
-14 322	2 423	Effect of foreign currency translation		-12 790	1 778
44 224	2 105	Change in other accruals		77 987	31 788
13 890	36 786	Net cash flows from operating activities		-21 856	-186 634
		Cash flows from investing activities
-8 888	-7 804	Purchases of tangible assets	4	-25 124	-19 886
-8 888	-7 804	Net cash flows from investing activities		-25 124	-19 886
		Cash flows from financing activities
-1 468	-1 467	Payment of lease liabilities		-6 550	-6 832
-	-	Proceeds from Equity Issue		84 214	121 902
-	-	Transaction cost on issue of shares		-	-5 040
-1 468	-1 467	Net cash flows from financing activities		77 664	110 030
187 682	133 016	Cash balance start of period		160 531	257 022
3 534	27 515	Net change in cash		30 685	-96 491
191 216	160 531	Cash balance end of period		191 216	160 531

Notes to the financial statements

Note 1 – Organization and basis for preparation

Corporate information

HydrogenPro ASA ("the Company") is a public limited company, incorporated in Norway, headquartered in Herøya, Norway and listed on Oslo Stock Exchange. Address headquarters: Hydrovegen 55, 3936 Porsgrunn, Norway.

The Company was established in 2013 by individuals with background from the electrolysis industry which was established in Telemark, Norway. HydrogenPro comprises an experienced engineering team of leading industry experts, drawing upon unparalleled experience and expertise within the hydrogen and renewable sectors. By combining indepth knowledge with innovative design, the company continuously aspires to pioneer game-changing ideas and solutions to realize and maximize new opportunities in a smarter, sustainable, hydrogen powered future. HydrogenPro designs and supplies customized hydrogen plants in cooperation with global partners and suppliers, all ISO 9001, ISO 45001 and ISO 14001 certified. The core product is the alkaline high-pressure electrolyzer.

HydrogenPro is listed on Oslo Stock Exchange under the ticker "HYPRO".

Basis for preparation

The fourth quarter statements and the have been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" (IAS 34). The quarterly financial information does not include all information and disclosures required in the annual financial statements and should be read in conjunction with the consolidated financial statements for the year ended December 31, 2023, which have been prepared in accordance with International Financial Reporting Standards as adopted by the EU (IFRS).

The accounting policies applied in the preparation of the quarterly financial statements are consistent with those followed in the preparation of the Group's annual financial statements for the year ended 31 December 2023.

Significant accounting judgements, estimates and assumptions

The preparation of the consolidated financial statements in accordance with IFRS and applying the chosen accounting policies requires management to make judgments, estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates. The estimates and the underlying assumptions are reviewed on an ongoing basis.

The accounting policies applied by management which includes a significant degree of estimates and assumptions or judgments that may have the most significant effect on the amounts recognized in the financial statements, are summarized below:

• █ Revenue recognition from contracts with customers
• █ Provision for warranty accruals
• █ Estimating fair value for share-based payments transactions
• █ Impairment of goodwill and intangible assets

Refer to the annual report of 2023 for more details related to key "judgement" and estimations.

The Interim financial information has not been subject to audit or review.

Note 2 – Revenue from contracts with customers and segments

Geographical region

Q4 2024	Q4 2023	NOK '000	FY 2024	FY 2023
		Geographical region
-	104	Norway	-	3 280
63 963	3 387	Europe	196 853	7 295
4 022	124 411	America	-5 551	538 499
2 069	-593	Asia Pacific	4 387	19 159
70 053	127 308	Total revenue	195 688	568 233

The Group recognizes revenue according to IFRS 15 and applies judgment that significantly affects the determination of timing and amounts of revenue from contracts with customers.

Each contract is assessed with respect to whether the revenue can be classified as customized and in turn recognized using percentage of completion method. The degree of completion is calculated as expenses incurred as a percentage of estimated total expenses. Total expenses are reviewed on a regular basis. If the projects are expected to result in losses the total estimated loss is recognized immediately.

Liquidated Damages (LDs) are penalties for not achieving defined milestones on time. Total liquidated damages are considered variable payments in a contract.

At each reporting period HydrogenPro reassess expected variable payment and consider if any or whole is constrained. Expected variable payment is estimated based on facts and circumstances, including past performance. The Group only includes the amount (some or all) in the transaction price if it is highly probable that there won't be a significant change in the revenue recognized once the uncertainty is resolved (referred to as constraint).

The Group's revenue from contracts with customers are recognized from two principal sources: sale of electrolyze systems, and sale of engineering services. The sale of engineering services is either in combination with the sale of electrolyze systems or as a separate service, as in FEED studies.

The Group's revenue and expenses are not allocated to different segments, and this is consistent with the internal reporting provided to the chief operating decision maker.

Q4 2024	Q4 2023	NOK '000	FY 2024	FY 2023
819	127 308	Revenue recognized over time	-10 311	565 081
69 235	-	Revenue recognized at point - in - time	205 999	3 152
70 053	127 308	Total revenue	195 688	568 233
Q4 2024	Q4 2023	NOK '000	FY 2024	FY 2023
68 835	123 831	Revenue from sale of electrolyser system	185 396	557 040
-11	3 478	Revenue from sale of Feed and case-studies	6 061	11 193
1 230	-	Revenue from scrapping of material as nikkel, steel etc.	4 231	-

Note 2 – Revenue from contracts with customers and segments- continued

NOK '000	31 Dec 2024	31 Dec 2023
Contract assets
Opening balance 1 January	65 836	19 828
Transfers from contract assets recognised at the beginning of the period to receivable	-52 821	-19 828
Increase due to measure of progress in the period	2 258	65 836
Balance end of period	15 272	65 836
Contract liabilities
Opening balance 1 January	49 641	65 691
Revenue from amounts included in contract liabilities at the beginning of the period	-49 641	-65 691
Billing and advances received not recognised as revenue in the period	916	49 641
Balance end of period	916	49 641

Note 3 – Intangible assets

NOK '000	Technology	Patent and licenses	Goodwill	Total
Purchase cost 1 Jan 2024	41 366	11 742	21 935	75 043
Foreign exchange differences	4 574	-	2 099	6 673
Purchase cost 31 Dec 2024	45 940	11 742	24 034	81 716
Accumulated depreciation 1 Jan 2024	12 414	4 697	-	17 111
Depreciation year to date 2024	4 527	2 348	-	6 875
Foreign exchange differences	1 436			1 436
Net book value 31 Dec 2024	27 564	4 697	24 034	56 295

The Group's Intangible assets comprise technology following the acquisition of HydrogenPro Aps in Denmark (formerly; Advance Surface Plating ApS), patent and licenses relating to FEED-studies to be used in the further development of 100 MW production plants and goodwill following the acquisition of 75 percent of the shares of HydrogenPro (Tianjin) CO Ltd.

No additions of intangible assets have been recognized as for the year 2024.

Note 4 – Property, plant, equipment and right-of-use asset

Property, plant and equipment and right of use assets mainly relate to the production plant facility in Tianjin China, and Aarhus, Denmark, the Technology Centre at Herøya, Norway and office facilities in Norway, Denmark and China.

Total additions to tangible assets in the fourth quarter amounted to NOK 14.4 million, contributing to a total addition to tangible assets for the year of NOK 30.6 million. The additions for the quarter and the year as a whole are mainly related to the work in progress in Denmark in connection with the expansion of the manufacturing capacity.

Depreciation of tangible assets for the year to date was NOK 9.2 million.

Note 4 – Property, plant, equipment and right-of-use asset- continued

NOK '000	Plant and machinery	Movables	Machinery and plant in progress	Right-of-use assets	Total
Purchase cost 1 Jan 2024	75 714	5 625	543	31 373	113 256
Additions	800	466	29 338	7 610	38 214
From Machinery and plant in progress	590	-	-590		-
Disposals	-6 302	-81	-	-12 887	-19 271
Foreign exchange differences	5 170	390	101	1 427	7 088
Purchase cost 31 Dec 2024	75 972	6 399	29 391	27 523	139 287
Accumulated depreciation 1 Jan 2024	12 267	1 457		10 918	24 643
Depreciation year to date 2024	8 018	1 201	-	6 525	15 745
Disposals	-835	-	-	-7 615	-8 449
Foreign exchange differences	720	122	-	412	1 253
Net book value 31 Dec 2024	55 801	3 619	29 391	17 283	106 094

Note 5 – Financial investment

NOK '000	31 Dec 2024	31 Dec 2023
Opening balance 1 January	30 517	29 572
Translation effect	3 543	945
Convertible receivables end of period	34 060	30 517

HydrogenPro has joined as a co-investor by financing DG Fuels LLC's ("DG Fuels") sustainable aviation fuel ("SAF") project. The convertible receivable is measured at fair value through profit or loss based on the level 3 in the fair value hierarchy.

Level 3 has been defined as follows:

█ Value measurements of assets or liabilities that are not based on observed market values.

At the end of 31 December 2024, the company has considered that the cost is the best estimate of the fair value.

Note 6 – Inventory

NOK '000	31 Dec 2024	31 Dec 2023
Inventory
Finished goods	6 346	-
Raw material	15 605	14 554
Work in progress	5 557	-
Carrying amount	27 509	14 554

Inventories comprises purchased raw material, work in progress and finished goods. Raw material includes parts that become an integrated part of finished goods.

Obsolescence assessed for inventories was NOK 0 million as of 31 December 2024 and as of 31 December 2023 there were write-downs of obsolete goods of NOK 5.7 million.

Note 7 – Provisions and Other Current Liabilities

NOK '000	Warranty provisions	Other provisions	31 Dec 2024	31 Dec 2023
Provisions
Opening balance 1 January	16 962	25 318	42 280
Additions	5 509	54 048	59 557	42 280
Foreign exchange differences	1 376	2 362	3 738	-
Warranties and other provisions end of period	23 846	81 728	105 575	42 280
Current provisions	14 308	81 728	96 036	35 495
Non-current provisions	9 538	-	9 538	6 785
Other current liabilites	-	40 916	40 916	32 843
Provisions and other current liabilities end of period	23 846	122 644	146 490	75 123

Estimated warranty obligations are recognized in the same period as the related revenue, or when a project is installed or commissioned. These warranties are based on contractual commitments and liabilities under applicable laws.

The Group's warranties provide assurance that the electrolyzers are free from defects and meet the required specifications. They are accounted for under IAS 37 as a provision and recorded as an operating expense.

The warranty provision is typically based on historical experience and often constitutes a percentage of revenue from contracts with customers.

Due to limited historical data, the Group considers available industry information, documented product failure rates, and expected material and labor costs for the project to make its estimates.

Other provisions include provisions for settlements and claims.

Note 8 – Overview of Group companies

			Ownership interest		Voting power
Company	Country	Main operations	31 Dec 2024	31 Dec 2023	31 Dec 2024	31 Dec 2023
HydrogenPro ApS	Denmark	Technology industries	100 %	100 %	100 %	100 %
HydrogenPro Tianjin CO Ltd	China	Technology industries	75 %	75 %	75 %	75 %
HydrogenPro Shanghai CO Ltd	China	Technology industries	100 %	100 %	100 %	100 %
Kvina Energy AS	Norway	Technology industries	50 %	50 %	50 %	50 %
HydrogenPro France*	France	Technology industries	100 %	100 %	100 %	100 %
HydrogenPro Inc	United States of America	Technology industries	100 %	100 %	100 %	100 %
HydrogenPro GmbH	Germany	Technology industries	100 %	100 %	100 %	100 %

*The company is excluded from the consolidation as this is a company without significant assets or operating assets that provides services to the group that would have been consolidated.

Note 9 – Trade Receivables

The following table provides information about the exposure to credit risk and expected credit losses for trade receivables from individual customers at the end of the fourth quarter.

NOK '000	Gross carrying Amount	Provision for bad debt
Current (not past due)	59
1-30 days past due	921
31-60 days past due	3 468
61-260 days past due	8 132
More than one year past due	102 712
Carrying value as of 31 Dec 2024	115 292	-

About 95% of the trade receivables past due are related to one customer. This quarter includes no revenue from this customer.

HydrogenPro does not consider the receivable as uncertain despite the age, as it is due from a counterparty with a strong financial position, and it is expected that the entire amount will be paid upon project completion.

Note 10 – Change of Presentation of Income Statement

Q4 2023	NOK million	FY 2023
7 1	Cost of Goods Sold (COGS)	447
-32	Personnel and Opex included in COGS	-116
3 9	Direct materials	331
1 9	Personnel expenses	8 5
8	Personnel related to COGS	35
2 6	Personnel expenses	120
2 1	Other operating expenses	7 2
24	Opex related to COGS	82
4 5	Other operating expenses	154

In connection with the third quarter of 2024 report, the presentation of the Income Statement was modified. Prior to that, Gross Profit was presented as Total Revenue less Cost of Goods Sold (COGS), which included personnel and other operating expenses. Starting from the third quarter 2024, Gross Profit is now calculated as Total Revenue less Direct Material Costs only. Personnel expenses and other operating costs directly related to project deliveries are no longer included in the Gross Profit calculation and are instead reported separately below Gross Profit. This change provides a clearer view of the direct material margin.

Prior period figures have been reclassified to ensure consistency and comparability. The periods that are relevant for comparison in the fourth quarter report are the figures reported in the fourth quarter of 2023 and the financial year 2023.

This reclassification does not impact operating profit, net income, or other key financial results.

Responsibility Statement

We confirm, to the best of our knowledge, that the condensed set of interim consolidated financial statements at 31 December 2024 and for the twelve-month period 1 January to 31 December 2024 have been prepared in accordance with IAS 34 "Interim Financial Reporting" and give a true and fair view of the Group's assets, liabilities, financial position and the result for the period viewed in their entirety, and that the third quarter report in accordance with the Norwegian Securities Trading Act section 5-6 fourth paragraph includes a fair review of any significant events that arose during the nine-month period and their effect on the third quarter financial report, any significant related parties transactions, and a description of the principal risks and uncertainties.

Porsgrunn/Oslo, 24 February 2025

(All signatures electronically signed)

Board member	CEO
Dag J. Opedal	Asta Stenhagen	Jarle Tautra	Vivian Y Chen Espeseth	Marianne Mithassel Aamodt	Geir Bredo Larsen
Chair of the Board	Board member	Board member	Board member	Board member	Board member
Bjørn Hansen	Jarle Dragvik
Board member	CEO

Alternative Performance Measures

HydrogenPro / Fourth Quarter Report 2024

HydrogenPro ASA 22

Alternative Performance Measures

HydrogenPro discloses alternative performance measures. This is based on the group's experience that APMs are frequently used by analysts, investors and other parties as supplemental information. The purpose of APMs is to provide an enhanced insight into the operations, financing and future prospects of the group. Management also uses these measures internally to drive performance in terms of monitoring operating performance and long-term target setting. APMs are adjusted IFRS measures that are defined, calculated and used in a consistent and transparent manner over the years and across the group where relevant. Financial APMs should not be considered as a substitute for measures of performance in accordance with IFRS.

HydrogenPro's financial APMs:

• █ Gross profit is defined as revenue from contracts with customers less direct material cost. Gross profit margin represents gross profit as a percentage of revenue from contracts with customers.
• █ EBITDA is defined as earnings before interest, tax, depreciation, amortization and impairment, corresponding to operating profit/(loss) plus depreciation, amortization and impairment.
• █ Net investments are additions to property, plant and equipment (capital expenditures), plus long-term securities, intangible assets, long-term advances and investments in equity accounted investments, including amounts recognized in business combinations for continuing operations.
• █ Order Intake is defined as firm purchase orders with agreed price, volume, timing, term and conditions entered within a given period. The order intake includes both contracts and change order. For service contracts and contracts with uncertain transaction prices, the order intake is based on estimated revenue. The measure does not include potential change order.
• █ Backlog is defined as firm purchase orders with agreed price, volume, timing, terms and condition and where revenue is yet to be recognized. The backlog includes both contracts and change orders. For service contracts and contracts with uncertain transaction prices, the backlog is based on estimated revenue. The measure does not include potential change orders.

HydrogenPro / Fourth Quarter Report 2024

www.hydrogenpro.com

HydrogenPro ASA 24