Hexagon Composites - Earnings Release 2016

Hexagon Composites ASA: Results for the first quarter 2016

In the first quarter 2016 Hexagon Composites generated NOK 291.6 (401.6) million

in operating income and made an operating profit before depreciation (EBITDA) of

NOK 18.6 (52.9) million. Operating profit (EBIT) was NOK 3.2 (39.5) million and

profit/loss before tax came to NOK -2.6 (53.3) million.

Operating results in the first quarter were impacted positively by a 17% growth

in revenues within the Low-Pressure Cylinders segment versus the same period

last year. However weak sales volumes for Mobile Pipeline(TM) solutions has

hampered overall profitability for the Group, within the High-Pressure Cylinders

segment. The cost initiatives executed in 2015 are being realized in 2016.

Key developments:

* Profitability impacted by weak Mobile Pipeline(TM) sales.

* Solid growth in Low-Pressure Cylinders.

* The Group received NOK 667 million from a private placement of new shares

and entered a strategic cooperation agreement with Mitsui & Co., Ltd.

* Awarded extension of long-term agreement with New Flyer Industries for the

North American transit bus market.

* Acquisition of 67 % of a Brazilian entity to pursue fuel systems

opportunities for transit buses and heavy-duty trucks in South America and

Africa.

* Awarded a significant Mobile Pipeline(TM) order for distribution of

biomethane in the UK.

* Commenced a business viability study of a proposed joint venture with Mitsui

& Co. and Toray Industries, to manufacture and sell high-pressure cylinders

for hydrogen vehicles in Japan.

For more information:

Jon Erik Engeset, CEO, Hexagon Composites ASA

Telephone: +47 916 30 550 | [email protected]

David Bandele, CFO, Hexagon Composites ASA

Telephone: +47 920 91 483 | [email protected]

Solveig D Saether, Communication Manager, Hexagon Composites ASA

Telephone: +47 906 34 977 | [email protected]

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

[HUG#2011972]

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