Cavendish Hydrogene

Quarterly Report • Aug 29, 2024

Cavendish Hydrogen ASA

Report for Q2 and H1 2024

About Cavendish Hydrogen ASA

Cavendish Hydrogen ASA is a leading hydrogen fueling company that specializes in the development, production, marketing, sales and service of equipment for fueling hydrogen into on-road vehicles. The company operates globally with offices in Denmark, USA, South Korea and Austria. The ongoing focus of the company is to develop its product portfolio to meet the expected market expansion for long-distance heavy-duty trucking.

Table of Contents

CEO Letter	1
Highlights	2
Financial Development	3
Condensed interim financial statements	9
Notes to interim financial statements	13
Alternative Performance Measures	21

CEO Letter

As we report our first quarter as a stand-alone listed company, I am proud to report a solid quarter for our company. Revenues came in at EUR 9.2 million, a 38 per cent increase from the same quarter last year. EBITDA was EUR -6.6 million, an improvement of 39 percent after adjusting for non-recurring cost.

Over the past few months, our installation team has demonstrated exceptional commitment and expertise, leading to the successful deployment of seven hydrogen refueling stations (HRS) across Europe. These stations are not just another step forward in our business, they are critical infrastructure that supports our customers and partners as they move towards a more sustainable future. Each of these stations represents a vital link in the growing network of hydrogen fueling options available across the continent, helping to reduce emissions and promote cleaner mobility solutions.

A highlight this summer was our contribution to the Paris Olympics. A fueling station delivered by Cavendish played a central role in fueling Toyota Mirais, the official car of the Paris Olympics. This is a testament to the growing importance of hydrogen in the European fueling mix and a solid example of how our technology is being embraced in high-profile, real-world applications. The successful operation during such a prestigious event underscores the reliability and effectiveness of our hydrogen solutions.

In June, we reached an important milestone as we were officially listed as a separate company on the Oslo Stock Exchange. This listing marks a new chapter in our journey and opens up new opportunities for growth and expansion. I want to take this moment to extend my deepest thanks to all our employees who worked tirelessly during this process. Your dedication and commitment have been instrumental in making this a reality, and I am incredibly proud of what we have accomplished together.

As we continue to expand and enhance our network of stations, we remain focused on meeting the needs and business objectives of our customers, while also driving positive environmental change. We are not only building a business; we are contributing to a global movement towards a sustainable future. Every station we deploy, every partnership we forge, and every milestone we achieve brings us closer to a world where emission-free mobility is not just a goal but a reality.

As we look ahead to the next quarter and beyond, I am confident that we will continue to achieve great things, and we are especially excited about continuing our development of the next generation High Capacity Hydrogen Fueling Station. Supported by the dedication of our incredible team, we will keep leading the charge towards a cleaner, greener future.

Sincerely, Robert Borin CEO Cavendish Hydrogen ASA

Highlights

• • Cavendish Hydrogen ASA ("Cavendish") reported revenue in the second quarter 2024 of EUR 9.2 million, up 38 per cent from the second quarter 2023 (Q2 2023: EUR 6.7). The revenue was driven by finalization and successful handover of seven stations to customers and higher revenue from equipment sales.
• • EBITDA in the quarter was EUR -6.6 million (Q2 2023: EUR -6.7). The result was negatively impacted by non-recurring cost of EUR 2.6 million, related to the spin-off and separate listing of Cavendish. Adjusted for non-recurring costs the EBITDA was EUR -4.0 million corresponding to an improvement of 39 per cent.
• • Net loss was EUR -7.9 million (Q2 2023: EUR -10.3). The year over year improvement was mainly explained by a fair value adjustment of Cavendish investment in Hydrogen Energy Network (HyNet) in South Korea of EUR -0.8 million (Q2 2023: EUR -2.6) .
• • Order intake in the quarter amounted to EUR 5.1 million, lower than the corresponding quarter last year (Q2 2023: EUR 16.8).
• • Order backlog was EUR 25.6 million at the end of the quarter, down 39 per cent from the second quarter of 2023 and down 7 per cent from previous quarter.
• • Cash balance was EUR 53.6 million at quarter end.

(Amounts in EUR million)	Q2 2024	Q2 2023	H1 2024	H1 2023	2023
Revenue	9.2	6.7	18.9	13.6	28.9
EBITDA	-6.6	-6.7	-11.4	-12.5	-19.4
Operating loss	-7.8	-7.8	-13.8	-14.8	-24.1
Pre-tax income (loss)	-8.1	-10.5	-14.4	-18.7	-29.7
Net income (loss)	-7.9	-10.3	-14.0	-18.3	-28.9
Net cash flow from operating activities	-15.5	-9.2	-17.4	-8.8	-18.8
Cash balance end of period	53.6	5.2	53.6	5.2	7.0
Order intake	5.1	16.8	10.5	19.1	24.9
Order backlog	25.6	42.0	25.6	42.0	32.7

Key figures

Financial Development

Key figures

(Amounts in EUR million)	Q2 2024	Q2 2023	Change	H1 2024	H1 2023	Change	2023
Revenue	9.2	6.7	38%	18.9	13.6	39%	28.9
EBITDA	-6.6	-6.7	1%	-11.4	-12.5	9%	-19.4
Order intake	5.1	16.8	-69%	10.5	19.1	-83%	24.9
Order backlog	25.7	42.0	-39%				32.7
Total assets	108.4	64.1	69%				69.9

Revenue & Order intake, order backlog and employees

Cavendish reported 38 per cent increase in revenue compared to the second quarter last year. The delivered equipment to customers is in line with expectations and at a higher level than the same period last year. The installation and commissioning projects have developed positively this quarter and the company has completed seven new stations and successfully handed them over to customers.

EBITDA in the quarter was EUR -6.6 million (Q2 2023: EUR -6.7). The result was negatively impacted by non-recurring costs of EUR 2.6 million related to the spin off and listing of Cavendish. Adjusted for the non-recurring costs the EBITDA was EUR -4.0 million, an improvement of 39 per cent. The underlying EBITDA improvement was driven by higher achieved gross margin from both equipment and projects, I&C and service. In addition, Cavendish had lower cost incurred from the operational fleet and improved execution of projects. Improved utilization of resources resulted in a reduction of indirect costs compared with the second quarter in 2023.

Order intake and order backlog was lower in the second quarter compared to last year. A new contract was signed with Alperia of EUR 3.8 million, while in the second quarter 2023 Cavendish signed a significant contract with a US energy company for 16 station modules.

First half

Cavendish first half 2024 revenues were EUR 18.8 million (H1 2023: EUR 13.6), corresponding to a year on year improvement of 39 per cent. The underlying improvement in revenues from equipment deliveries and projects, installation and commissioning was positive, but was also affected by a positive one-off effect from a customer cancellation of a supply framework contract in the first quarter of 2024. The EBITDA was EUR -11.4 million, representing an improvement of 9 per cent from a year earlier. Adjusted for non-recurring cost related to the IPO the EBITDA result was EUR -8.8 million, corresponding to an improvement of 29 per cent.

The order intake was EUR 10.5 million, compared with EUR 19.1 million in 2023.

Finance
---------

(Amounts in EUR million)	Q2 2024	Q2 2023	H1 2024	H1 2023	2023
Finance income
Interest income	0.4	0.0	0.4	0.1	0.2
Other	0.1	0	0.2	0	0
Interest income and other finance income	0.5	0.0	0.6	0.1	0.2
Finance costs
Interest expense	-0.1	-0.7	-0.2	-1.1	-2.2
Net foreign exchange gain (loss)	0.1	0.5	-0.2	-0.3	-0.8
Change in fair value financial instruments	-0.8	-2.6	-0.8	-2.6	-2.7
Interest expense and other finance costs	-0.9	-2.8	-1.3	-4.0	-5.7
Net finance income (loss)	-0.4	-2.7	-0.6	-3.9	-5.6

Net financial loss was EUR -0.4 million (Q2 2023: -2.7) in the quarter, mainly explained by a fair value adjustment of the investment in Hydrogen Energy Network (HyNet) in South Korea of EUR -0.8 million in Q2 2024. In Q2 2023, a fair value adjustment of EUR -2.6 million was made related to the investment in HyNet. The book value of HyNet is zero after the fair value adjustment this quarter.

Cavendish reported interest income of EUR 0.4 million (Q2 2023: 0.0) from cash and cash equivalents. The increase in interest income can be attributed to the increase in cash and cash equivalents.

(Amounts in EUR million)	Q2 2024	Q2 2023	H1 2024	H1 2023	2023
Net cash flow from operating activities	-15.5	-9.2	-17.4	-8.8	-18.8
Net cash flow from investing activities	-2.0	- 1.1	-3.5	-2.0	-4.3
Net cash flow from financing activities	65.3	11.9	67.7	13.5	27.1
Foreign currency effects on cash	0.0	0.0	-0.2	-0.3	0.3
Net change in cash	47.8	1.5	46.7	2.5	4.4
Cash and cash equivalents OB	5.8	3.6	7.0	2.7	2.6
Cash and cash equivalents	53.6	5.2	53.6	5.2	7.0

Cash and cash equivalents, operating activities and investing activities

Cash flow from operating activities was negative EUR -15.5 million in the second quarter (Q2 2023: EUR -9.2). The result from operations has significantly improved from the previous quarters. Changes in net working capital decreased cash by EUR -3.6 million (Q2 2023: EUR -2.3) in the quarter. The changes in net working capital were mainly related to a reduction of trade payables due to the settlement of intercompany accounts with the Nel Group, reduction of inventory levels and net contract liabilities due to progress on installation and commissioning projects.

The cash flow from investing activities was mainly from the development of our new next generation high capacity fueling station.

The purchase of property, plant and equipment totaled EUR 0.3 million (Q2 2023: EUR 0.4) in the quarter and was related to smaller investments in tools and test equipment.

The financing activities in the second quarter 2024 included the capital increase of EUR 75.9 million from Nel ASA as part of the separation and listing of Cavendish ASA.

Risks and uncertainty

Cavendish is exposed to significant risk and uncertainty factors, which may affect some or all of the group's activities. Cavendish is exposed to operational, financial, market and climate-related risk. These risks could occur individually or simultaneously. There are no significant changes in the risks and uncertainty factors described in section 2 of the prospectus that was published June 10th 2024 in connection with the listing of the shares on the Oslo Stock Exchange. The prospectus is available on www.cavendishh2.com.

Outlook

The company is well advanced in developing the next generation hydrogen fueling concept for heavy-duty vehicles, with the next-generation hydrogen fueling stations expected to be available for sale in 2025.

Based on the current order backlog, activity levels in the second half of the year are expected to be on par with the first half year related to equipment sales, while installation and commissioning projects will be slightly lower. Moving forward, reduced quality costs related to operational improvements in the installed station fleet are expected to have a positive impact on margins. As Cavendish has a project-based business, quarterly fluctuations in order intake and revenue recognition are expected.

With more than 20 years experience, and a track record of more than 145 H2Station units sold, Cavendish is uniquely positioned to capture the hydrogen opportunity. Over time, the company has an ambition to capture 15% of the high-capacity market for hydrogen fueling in Europe and Americas.

RESPONSIBILITY STATEMENT FROM THE BOARD OF DIRECTORS AND CEO

We confirm, to the best of our knowledge, that the unaudited, condensed half-year financial statements for the period 1 January to 30 June 2024 have been prepared in conformity with IAS 34 Interim Reporting and that the information in the financial statements provides a fair view of the enterprise and the company's assets, liabilities, financial position and overall results, and that the half-year report provides a fair overview of the information specified in section 5-6, fourth paragraph, of the Norwegian Securities Trading Act.

Herning, 28th August 2024

Jon André Løkke Board member	Mimi Kristine Berdal Board member	Vibeke Strømme Board member
(Electronically signed)	(Electronically signed)	(Electronically signed)
Allan Bødskov Andersen Board member	Kim Søgård Kristensen Board member
(Electronically signed)	(Electronically signed)
Robert Borin CEO

(Electronically signed)

Condensed interim financial statements

Consolidated statement of comprehensive income (unaudited)

(Amounts in EUR million)	Note	Q2 2024	Q2 2023	H1 2024	H1 2023	2023
Revenue and income
Revenue from contracts with customers	3	9.2	6.7	18.9	13.6	28.9
Other income		0.1	0.5	0.2	0.9	1.5
Total revenue and income		9.3	7.2	19.2	14.6	30.4
Operating expenses
Raw materials		4.3	3.8	9.2	6.7	12.4
Personnel expenses		5.9	5.7	11.3	11.5	24.2
Depreciation, amortisation and impairment	5	1.1	1.1	2.4	2.3	4.7
Other operating expenses		5.7	4.3	10.1	8.8	13.1
Total operating expenses		17.1	15.0	32.9	29.4	54.5
Operating loss		-7.8	-7.8	-13.8	-14.8	-24.1
Finance income		0.5	0.0	0.6	0.1	0.2
Finance cost		-0.9	-2.8	-1.3	-4.0	-5.8
Net financial items		-0.4	-2.7	-0.6	-3.9	-5.6
Pre-tax income (loss)		-8.1	-10.5	-14.4	-18.7	-29.7
Tax expense (income)		-0.2	-0.2	-0.4	-0.4	-0.8
Net income (loss)		-7.9	-10.3	-14.0	-18.3	-28.9
Items that are or may subsequently be reclassified to income statement:
Currency translation differences		-0.6	0.2	0.8	0.6	0.8
Cash flow hedges, effective portion of changes in fair value		0.0	0.0	-0.1	0.0	-0.1
Other comprehensive income		-0.6	0.2	0.6	0.6	0.7
Total comprehensive income		-8.5	-10.2	- 13.4	-17.8	-28.2
Basic EPS (figures in EUR) 1)		-0.24	-0.31	-0.42	-0.55	-0.86
Diluted EPS (figures in EUR) 1)		-0.24	-0.31	-0.42	-0.55	-0.86
Weighted average number of outstanding shares (million)		33.6	33.6	33.6	33.6	33.6

© 2024 www.cavendishh2.com

Cavendish - All rights reserved

1) Basic and diluted earnings per share are computed using the weighted average number of ordinary shares outstanding. The calculation of earnings per share has been adjusted retrospectively to the number of shares issued for all periods presented.

Consolidated statement of financial position (unaudited)

(Amounts in EUR million)	Note	30.06.2024	31.12.2023
ASSETS
Intangible assets	5	10.3	8.7
Property, plant and equipment	5	11.4	11.9
Other non-current assets		0.2	1.0
Total non-current assets		22.0	21.6
Inventories		21.8	27.7
Trade receivables		6.7	10.2
Contract assets		0.3	0.6
Other current assets		4.0	2.6
Cash and cash equivalents		53.6	7.0
Total current assets		86.4	48.3
TOTAL ASSETS		108.4	69.9
EQUITY AND LIABILITIES
Total equity		82.9	21.4
Total equity		82.9	21.4
Deferred tax liability		0.1	0.1
Long-term debt		1.9	15.8
Lease liabilities		0.5	0.6
Other non-current liabilities		1.2	1.4
Total non-current liabilities		3.7	17.9
Trade payables		2.6	5.6
Lease liabilities		0.4	0.4
Contract liabilities		9.9	17.5
Other current liabilities		8.9	7.2
Total current liabilities		21.8	30.7
Total liabilities		25.4	48.5
TOTAL EQUITY AND LIABILITIES		108.4	69.9

The accompanying notes are an integral part of the condensed consolidated financial statements (unaudited).

Consolidated statement of cash flows (unaudited)

(Amounts in EUR million)	Q2 2024	Q2 2023	H1 2024	H1 2023	2023
Cash flow from operating activities
Pre-tax income (loss) 1)	-8.1	-10.5	-14.4	-18.7	-29.7
Depreciation, amortisation and impairment	1.1	1.1	2.4	2.3	4.7
Change in net working capital 2)	-3.6	-2.3	-1.3	2.6	-0.0
Other adjustments 3)	-4.8	2.5	-4.0	5.1	6.2
Net cash flow from operating activities	-15.5	-9.2	-17.4	-8.8	-18.8
Cash flow from investment activities
Purchases of property, plant and equipment	-0.3	-0.4	-0.7	-0.6	-1.2
Payments for capitalised technology	-1.7	-0.7	-2.8	-1.4	-3.0
Net cash flow from investing activities	-2.0	-1.1	-3.5	-2.0	-4.3
Cash flow from financing activities
Interest paid 4)	-0.0	-0.0	-0.1	-0.0	-0.1
Payment of lease liabilities	-0.1	-0.1	-0.2	-0.2	-0.5
Payment of non-current liabilities	-6.8	0.0	-6.8	-0.6	-0.6
Proceeds from new loans	0.0	12.0	2.5	14.3	28.4
Proceeds from capital increase	72.2	0.0	72.3	0.0	0.0
Net cash flow from financing activities	65.3	11.9	67.7	13.5	27.1
Foreign currency effects on cash	0.0	0.0	-0.2	-0.3	0.3
Net change in cash and cash equivalents	47.8	1.5	46.7	2.5	4.4
Cash and cash equivalents beginning of period	5.8	3.6	7.0	2.7	2.7
Cash and cash equivalents	53.6	5.2	53.6	5.2	7.0

1) Q2 2024 includes interests received of EUR 0.3 million

2) Change in net working capital comprises changes in inventories, trade receivables, contract assets, contract liabilities and trade payables.

3) Q2 2024 includes a fair value adjustment of financial instruments of EUR -0.8 million. The net fair value adjustment was EUR -2.6 million in Q2 2023.

4) Interest paid includes interest expense on lease liabilities.

Consolidated statement of changes in equity (unaudited)

(Amounts in EUR million)	Share capital	Share premium	Treasury shares	Other component of equity	Retained earnings	Total equity
Equity as of 31.12.2022	0.0	0.0	0.0	1.2	4.5	5.7
Net loss	0.0	0.0	0.0	0.0	-28.9	-28.9
Currency translation differences	0.0	0.0	0.0	0.8	0.0	0.8
Hedging reserve	0.0	0.0	–0.0	-0.1	0.0	-0.1
Debt conversions	0.0	0.0	0.0	0.0	43.7	43.7
Options and share program	0.0	0.0	0.0	0.0	0.1	0.1
Equity as of 31.12.2023	0.0	0.0	0.0	1.9	19.4	21.4
Net loss	0.0	0.0	0.0	0.0	-14.0	-14.0
Capital increase1)	5.9	87.3	0.0	0.0	-18.4	74.9
Currency translation differences	0.0	0.0	0.0	0.8	0.0	0.8
Hedging reserve	0.0	0.0	0.0	-0.1	0.0	-0.1
Options and share program	0.0	0.0	0.0	0.0	0.1	0.1

1) Cavendish Hydrogen ASA was established on 13 March 2024 with a capital increase of NOK 1 000 000 from Nel ASA. In Q2 the share capital has been increased to NOK 67 236 290 (EUR 5.9 million) with a total number of shares of 33 618 145.

Notes to the interim financial statements

Note 1 Organisation and basis for preparation

Corporate information

Cavendish Hydrogen ASA ("the Company"), was incorporated on 13 March 2024 for the purpose of continuing the hydrogen fueling station manufacturing activities (Nel Hydrogen Fueling segment) of the previous parent company of Nel ASA.

Cavendish Hydrogen ASA became the parent of the Fueling Group ("the Group") in May 2024 through an internal reorganization whereby Nel ASA transferred all its shares in Nel Hydrogen Inc, Nel Korea Co. Ltd, Nel Hydrogen A/S (the "Fueling Entities") to the Group. This includes shares in Nel Austria GmbH as a subsidiary of Nel Hydrogen A/S and Hydrogen Energy Network as an investment in Nel Korea Co. Ltd.

Cavendish Hydrogen ASA was distributed to the shareholders of Nel ASA on 12th June 2024 by way of a dividend in kind, through a distribution regarded as repayment of paid in capital by the shareholders of Nel ASA.

The Company is a public limited liability company listed on the Oslo Stock Exchange and domiciled in Norway. The address of its registered office is Dronning Eufemias gate 16, N-0191 Oslo, Norway.

The Company, and its subsidiaries (together 'the Group') is a manufacturer of hydrogen fueling stations. The Company's core product is hydrogen fueling stations that provide fuel cell electric vehicles (FCEV) including cars, vans, busses and also trucks with comparable fast fueling and long range as conventional vehicles today. Beside pure sales of the fueling stations the company also offers services like project execution, installation, commissioning, operation support and maintenance for its own products.

Basis for preparation

The financial information is prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" (IAS 34). This financial information should be read together with the combined financial statement for the year ended 31 December 2023, including combined comparative financial information as of and for the years ended 31 December 2022 and 2021.

The accounting policies adopted in the preparation of the condensed interim consolidated financial statements are consistent with those used in the preparation of the combined financial statement for the year ended 31 December 2023.

As a result of rounding differences, numbers or percentages may not add up to the total.

Note 2 Significant estimates, judgements and assumptions

The preparation of the interim financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets, liabilities and disclosure of contingent liabilities at the date of the interim financial statements. If in the future such estimates and assumptions, which are based on management's best judgment at the date of the interim financial statements, deviate from the actual circumstances, the original estimates and assumptions will be modified as appropriate in the period in which the circumstances change.

In the process of applying the group's accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognised in the condensed interim financial statements:

Judgements

• Revenue recognition
• Warranty obligations
• Development costs

Assumptions and estimation uncertainty

• Revenue recognition
• Impairment of intangible assets
• Expected credit loss assessment

The estimates and underlying assumptions are reviewed on an ongoing basis, considering the current and expected future market conditions. Changes in accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

Note 3 Revenue from contracts with customers

Type of goods or services

The group generates revenue from customer contracts from two principal sources: i) Equipment and ii) Projects, I&C (Installation and Commissioning) and Service. The equipment and projects sales are generated from mainly standard equipment.

Standard equipment

The group recognises revenue at the point in time at which it satisfies a performance obligation by transferring the control of a good or service to the customer, generally this upon agreed incoterms, which is mainly at shipment. The customer has control of a good or service when it has the ability to direct the use of and obtain substantially all of the remaining benefits from the good or service.

The point in time measurement basis for standard equipment has been the main method of recognising revenue.

Customised equipment

Most of the Group's revenue stems from standard equipment, however, in certain contracts the customisation required qualifies customised equipment. Customised equipment occurs when the Group is creating a good that it cannot sell to another customer without significant re-work and the Group would incur significant economic losses to direct the asset for another use. Such sale of customised equipment is recognised as revenue over-time if the Group has an enforceable right to payment for performance completed to date.

Projects

The project contracts typically comprise equipment (standard product or customised), design, siting, installation, and commissioning of such equipment. They often include a standard installation service and commissioning, each assessed as individual performance obligations. Revenue recognition for equipment depends on assessment of standard or customised equipment. Revenue for installation and commissioning is recognised over-time measuring progress using input method cost-to-cost.

Service

Service comprise operations and maintenance (O&M), extended warranty, repair, replacement parts and accessories.

For separately sold operating and maintenance contracts where the group has agreed to provide routine maintenance services over a period for a fixed price, revenue is recognised on a straight-line basis over the contract period as the stand-ready obligation is time elapsed.

For sales of replacement cell stacks and accessories, revenue is recognised when performance obligation is satisfied, generally upon delivery of the replacement parts and accessories.

Note 4 Segments

Cavendish identifies its reportable segments and discloses segment information under IFRS 8 Operating Segments. This standard requires Cavendish to identify its segments according to the organisation and reporting structure used by management. The executive management group is the chief operating decision maker (CODM) and monitors the operating results of its business units separately for the purpose of making decisions about resource allocation and performance assessment.

Segment performance is evaluated based revenues and EBITDA and is measured consistently with the consolidated financial statements. Cavendish operates within three main geographical segments based on the locations of our manufacturing of equipment and project and service organisations. These also reflect the company's core markets. In addition, Cavendish management monitors the revenue recognition and EBITDA from manufacturing of core equipment and the revenue that derives from projects, installation and commissioning and service.

Billing of goods and services between operating segments are effected on an arm's length basis.

(Amounts in EUR million)	Q2 2024	Q2 2023	Change	H1 2024	H1 2023	Change
Revenue
Europe (except Norway)	6.4	6.1	5%	15.6	12.1	29%
US and North America	2.6	0.5	438%	3.1	1.3	130%
South Korea and Asia	0.2	0.1	130%	0.3	0.2	62%
Total	9.2	6.7	37%	18.9	13.6	39%
Revenue by type
Equipment	4.6	3.5	30%	11.9	7.9	49%
Projects. I&C and service	4.6	3.1	48%	7.1	5.7	25%
Total	9.2	6.6	39%	18.9	13.6	39%
EBITDA
Europe (except Norway)	-2.4	-5.0	51%	-2.5	-9.0	-72%
US and North America	-1.1	-1.5	30%	-5.6	-2.8	98%
South Korea and Asia	-0.2	-0.2	0%	-0.4	-0.7	-41%
Norway (HQ) 1)	-2.9	0.0	-	-2.9	0.0	-
Total	-6.6	-6.7	-1%	-11.4	-12.5	-9%

The following table includes information about Cavendish's operating segments.

© 2024 www.cavendishh2.com

1) Corporate comprises parent company and other administrative features throughout the group statements.

(Amounts in EUR million)	Q2 2024	Q2 2023	Change	H1 2024	H1 2023	Change
EBITDA by type
Equipment	0.9	-1.0	196%	4.3	-1.5	-398%
Projects. I&C and service	-0.5	-0.8	37%	-4.6	-2.4	89%
Corporate and other	-7.0	-4.9	-45%	-11.2	-8.6	29%
Total	-6.6	-6.7	-1%	-11.4	-12.5	-9%
Investments2)
Europe (except Norway)	2.0	0.7	166%	3.4	1.5	118%
US and North America	0.0	0.3	-24%	0.1	0.4	-63%
South Korea and Asia	0.0	0.0	-	0.0	0.0	-
Total	2	1.1	145%	3.5	2.0	79%
Property. plant and equipment
Europe (except Norway)	9.9	10.1	-2%	9.9	10.1	-2%
US and North America	1.4	1.4	-6%	1.4	1.4	0%
South Korea and Asia	0.2	0.3	-40%	0.2	0.3	-33%
Total	11.5	11.8	-3%	11.5	11.8	-3%
Total assets3)
Europe (except Norway)	47.1	49.6	-5%	47.1	49.6	-5%
US and North America	10.3	10.2	1%	10.3	10.2	1%
South Korea and Asia	2.4	4.3	-40%	2.4	4.3	-44%
Norway (HQ)	48.6	0.0	-	48.6	0.0	-
Total	108.4	64.1	69%	108.4	64.1	69%

2) Investments comprise intangible assets and property. plant and equipment.

3) Total assets per segment includes excess values on intangible assets derived from the consolidation of the financial statements.

Note 5 Intangible assets and Property Plant and Equipment

(Amounts in EUR million)	Intangible assets	Tangible assets	Total
Carrying value of 01.01.2024	8.7	11.9	20.6
Additions	2.8	0.7	3.5
Amortisation/depreciation	-1.2	-1.2	-2.4
Currency translation differences	0.0	0.0	0.1
Carrying value as of 30.06.2024	10.3	11.4	21.8

Intangible assets are reviewed each quarter for impairment indicators, including market changes, technological development, order backlog and other changes that might potentially reduce the value of the assets.

Intangible assets include remaining excess values derived from the consolidation of the financial statements.

Note 6 Provisions

On 7 February 2024, the company was made aware that Iwatani Corporation of America has filed a lawsuit with claims for damages in an unspecified amount towards Cavendish, Nel ASA and certain other group companies in connection with certain agreements for delivery of fueling equipment and services between Cavendish Hydrogen Inc. and Iwatani Corporation of America. Cavendish and Nel strongly reject the allegations made in the lawsuit by Iwatani Corporation of America and will vigorously oppose the allegations and the lawsuit. The lawsuit was filed with the United States District Court in the Central District of California. No provisions have been made in the financial statements as of 30 June 2024.

Note 7 Related party transactions

In the reporting period H1 2024 there have been internal transactions between Nel ASA Group and Cavendish Hydrogen ASA Group. All transactions between the Cavendish Hydrogen ASA group and the Nel ASA Group were related party transactions up until the distribution of shares. which took place 7 June 2024. All the transactions disclosed below are with the Nel ASA Group. as there are no other related party transactions related to the Cavendish ASA Group.

(Amounts in EUR million)	H1 2024	H1 2023
Income statement
Revenue	0.1	0.0
Other operating expenses (management fee)	1.0	1.2
Share option expense	0.1	0.1
Recharge of personnel expenses from Cavendish Hydrogen ASA	0.1	0.2
Recharge of personnel expenses to Cavendish Hydrogen ASA	0.1	0.1
Interest expenses	0.1	1.0
(Amounts in EUR million)	30.06.2024	31.12.2023
Statement of financial position
Trade receivables related parties	0.0	3.1
Long-term debt related parties	0.0	13.8
Trade payables related parties	0.0	3.3

(Amounts in EUR million)	H1 2024
Reconciliation of long-term debt related parties
Balance as of 1 january 2024	13.8
New loans. including net proceeds from cash-pool	2.5
Repayment of loans	-6.7
Accretion of interest	0.1
Non-cash changes and foreign currency effects	0.1
Reclassification due to change of ownership	-9.8
Balance as of 30 june 2024	0.0

Note 8 Events after the balance sheet date

Information about the group's financial position that has occurred after the balance sheet date is disclosed if the information is considered to be significant for the group's current financial statements and future position.

No events materially affecting the assessment of the interim financial statements have occurred after the balance sheet date.

Alternative Performance Measures

Cavendish discloses alternative performance measures (APMs) in addition to those normally required by IFRS. 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 prospect 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 the IFRS.

Cavendish's financial APMs

EBITDA: is defined as earnings before interest, tax, depreciation, amortisation and impairment. EBITDA corresponds to operating profit/(loss) plus depreciation, amortisation and impairment.

EBITDA margin: is defined as EBITDA divided by revenue and income.

Equity ratio: is defined as total equity divided by total assets.

Order intake: is defined as firm purchase orders with agreed price, volume, timing, terms and conditions entered within a given period. The order intake includes both contracts and change orders. For service contracts and contracts with uncertain transaction price, the order intake is based on estimated revenue. The measure does not include potential change orders.

Order backlog: is order intake where revenue is yet to be recognised.

Title: Report for Q2 and H1 2024

Published date: 29.08.2024

Cavendish Hydrogen ASA Dronning Eufemias gate 16 N-0191 Oslo Norway

info@cavendishh2.com

The publication can be downloaded on www.cavendishh2.com

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