Hexagon Composites — Earnings Release 2017

Nov 1, 2017

Hexagon Composites ASA: Results for the third quarter 2017

Hexagon Composites ASA: Results for the third quarter 2017

In the third quarter 2017 Hexagon Composites generated NOK 352.8 (266.2) million

in operating income and made an operating profit before depreciation and

amortization (EBITDA) of NOK 51.2 (4.6) million. Operating profit (EBIT) was NOK

33.8 (-12.4) million and profit before tax came to NOK 21.8 (-18.4) million.

Overall, Group operating profit has markedly improved versus the third quarter

2016, and the previous quarter. Operating results in the third quarter were

impacted positively by a 32% growth in revenues versus the same period last

year. Both the Low-Pressure and High-Pressure segments contributed significantly

to year-over-year growth in profitability, with the latter recording operating

profits in the quarter for the first time in 2017.

The financial statements include the Group's fifty-percent share of Agility Fuel

Solutions ("Agility") results accounted for under the equity method. In

addition, the fully consolidated financial results of the acquired Hexagon

xperion (renamed from xperion Energy & Environment) and related group

subsidiaries are included. There are no restatements to previously reported

figures as a result of these transactions which occurred, and were first

reported, in the fourth quarter 2016. The underlying improvement is stronger

than the reported numbers indicate.

Key developments

* Received and commenced work on a major development award for hydrogen

cylinders for two new fuel cell electric vehicle (FCEV) models

* Hexagon Ragasco received a major LPG order from Iraq with a total value of

approximately NOK 120 million

* Expanded into the hydrogen heavy-duty truck market with deliveries to Toyota

and ASKO

* Launched Hyon AS, a joint venture between Hexagon, Nel ASA and PowerCell

Sweden AB

Key developments after balance sheet date

* Received a new USD 11 million order for TITAN® modules for the North

American industrial sector

* Launched efficient requalification testing program for its Mobile Pipeline®

cylinders minimizing customers' downtime during regulatory requalification.

For more information:

Jon Erik Engeset, CEO, Hexagon Composites ASA

Telephone: +47 916 30 550 | jon.erik.engeset@hexagon.no

David Bandele, CFO, Hexagon Composites ASA

Telephone: +47 920 91 483 | david.bandele@hexagon.no

Solveig D Saether, Communication Manager, Hexagon Composites ASA

Telephone: +47 906 34 977 | solveig.saether@hexagon.no

About Hexagon Composites ASA

Hexagon Composites delivers safe and innovative solutions for a cleaner energy

future. We are adapting our leading composite pressure vessel technology for a

wide range of mobility and storage applications. The energy transition towards a

low-carbon society is constantly opening up exciting growth opportunities for

us.

For more information, please visit www.hexagon.no

Follow us on Twitter: @HexagonASA

This information is subject to the disclosure requirements pursuant to section

5 -12 of the Norwegian Securities Trading Act.