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Hexagon Composites Earnings Release 2022

Aug 11, 2022

3619_rns_2022-08-11_abcbb8aa-e35e-4b36-9128-46289c4b8949.html

Earnings Release

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Hexagon Composites ASA: Second quarter 2022

Hexagon Composites ASA: Second quarter 2022

11 August 2022: Hexagon (excluding Hexagon Purus) delivered NOK 1 034 (726)

million in revenues and an operating profit before depreciation (EBITDA) of NOK

90 (71) million in second quarter 2022. The underlying demand remains strong

with record-high demand for Mobile Pipeline and hydrogen distribution modules

for infrastructure and industrial segments. However, further cost escalation and

supply chain inefficiencies in the industry continue to weigh on margins.

In accordance with its ambitious business plan, Hexagon Purus more than doubled

revenues year over year to NOK 210 (94) million and recorded operating profit

before depreciation (EBITDA) of NOK -112 (-69) million. The strong revenue

growth was primarily driven by hydrogen distribution, and the company is

continuing its ramp-up in personnel and infrastructure to accelerate growth.

Hexagon Purus remains fully consolidated in the Hexagon Group accounts after its

spin-off in December 2020, with Hexagon currently retaining a 73% ownership.

Hexagon Group, including Hexagon Purus, generated NOK 1 180 (788) million

in revenues and recorded an operating profit before depreciation (EBITDA) of NOK

-21(3) million.

"We delivered strong 50% revenue growth year-over-year, and an acceptable EBITDA

when considering supply chain challenges and further cost inflation. Mitigating

actions are in place, but the effects of these actions lag the cost increases

and supply chain inefficiencies in the second half of the year. We expect

margins to improve and normalize from the first quarter 2023," says Jon Erik

Engeset, CEO of Hexagon Group. "We see that our results are backed by continued

high demand for Hexagon's clean energy solutions and growing supportive

regulatory frameworks."

"Looking ahead, we believe that the US Inflation Reduction Act and the European

Commission's REPower EU, as well as similar programs in other major economies,

will drive Hexagon's total addressable market to new levels," says Engeset.

Together with clients and partners, Hexagon is finding ways to make near-zero

and zero emission energy solutions available and affordable while delivering on

its purpose of driving energy transformation.

For further details, please see the attached second quarter 2022 report and

presentation.

Presentation of the results today at 08:30 am CEST

Jon Erik Engeset (CEO) and David Bandele (CFO) will present the results at

08:30 am today in Oslo. The presentation will be held in the Auditorium at

Hexagon Composites' offices, Haakon VIIs gate 2, on the lower level.

The presentation will also be broadcasted live

via:https://channel.royalcast.com/landingpage/hegnarmedia/20220811_3/

For more information:

Ingrid Aarsnes, VP Investor Relations & ESG, Hexagon Composites ASA

Telephone: +47 950 38 364 | [email protected]

(mailto:[email protected])

Karen Romer, SVP Communications, Hexagon Composites

Telephone: +47 950 74 950 | [email protected]

(mailto:[email protected])

About Hexagon Composites ASA

Hexagon delivers safe and innovative solutions for a cleaner energy future. Our

solutions enable storage, transportation and conversion to clean energy in a

wide range of mobility, industrial and consumer applications. Learn more

at www.hexagongroup.com and follow @HexagonASA on Twitter and LinkedIn.