Hexagon Composites — Earnings Release 2022

Aug 11, 2022

Q2 2022

A word from the CEO

Dear shareholders,

Momentum continues with strong revenue growth

Hexagon's employees delivered 50% growth in revenues year-over-year (including Hexagon Purus) in the second quarter 2022 and 37% revenue growth overall for the first half of 2022. These results are backed by continued high demand for our clean energy solutions and growing supportive regulatory frameworks.

Mobile pipeline a key enabler to REPower EU

The European Commission plans to make Europe independent from Russian fossil fuels well before 2030 - drastically accelerating the clean energy transition and increasing Europe's energy independence. This strategy drives a significant need for development of distribution infrastructure.

REPower EU is expected to trigger significant investments into gas infrastructure in Europe. Hexagon Agility's Mobile Pipeline systems for compressed natural gas and Hexagon Purus' Hydrogen Distribution systems are key enablers of this capacity ramp-up. In North America today we see that ~20% of (renewable) natural gas is being moved by mobile pipeline. In light of this, it is estimated that stranded (renewable) natural gas (biomethane) in Europe will translate to a very significant market opportunity for Hexagon's Mobile Pipeline business.

In the first half of 2022, our Mobile Pipeline gas distribution business has experienced nearly three times year-over-year growth and we are seeing inquiries throughout Europe for substantially larger projects.

Supply shortages and cost inflation

The supply chain disruptions resulting from the war in Ukraine and the Covid 19 pandemic have affected our first half profitability. Continued shortages, significant cost increases for materials, components and electricity, as well as increasing interest rates will continue to impact profit margins negatively in the coming quarters. While the strong revenue growth absorbs some of the cost increases in the form of scale efficiency, long lead times and shortages of critical components entail inefficiencies in our production system. Our teams are actively working to mitigate these challenges through inventory buildup and productivity programs, as well as pass through of pricing. However, the mitigating effects will lag the cost increases and production inefficiencies in the second half of the year, while we expect to catch up from first quarter 2023.

Revenue growth across businesses

Hexagon Agility's heavy- and medium duty business continued to benefit from high underlying demand in the second quarter and experienced healthy growth in the first half of 2022.

Hexagon Ragasco's revenues increased by 10% in the first half of 2022 driven by solid sales in Europe.

Hexagon Purus continues to deliver above business plan, more than doubling its revenues in the second quarter as compared to the same quarter in 2021

Hexagon Digital Wave delivered a record quarter, more than doubling revenues year-over-year.

Looking ahead

The US Inflation Reduction Act, authorizing USD 370 billion in spending on energy and climate change in the US, 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. The inflationary environment, looming energy crisis and continuing supply chain disruptions will represent major challenges to leverage the opportunities. Reestablishing supply chain robustness and operational excellence will be among our most important priorities in the short and medium term.

Best regards,

Jon Erik Engeset President & CEO, Hexagon Group

Key figures

(NOK millions)	Q2 2022	Q2 2021	YTD 2022	YTD 2021
Hexagon Agility
Revenue	818	537	1 549	1 063
EBITDA	63	44	115	102
EBIT	21	5	33	21
Hexagon Ragasco
Revenue	192	175	353	322
EBITDA	29	34	62	68
EBIT	20	26	44	51
Hexagon Digital Wave
Revenue	26	12	41	23
EBITDA	3	-4	-2	-8
EBIT	1	-5	-4	-10
Corporate/eliminations1)
Revenue	-2	3	3	8
EBITDA	-4	-3	-1	-3
EBIT	-9	-7	-10	-12
Hexagon excl. Purus Group
Revenue	1 034	726	1 947	1 416
EBITDA	90	71	174	159
EBIT	33	19	62	50
Hexagon Purus 2)
Revenue	210	94	369	146
EBITDA	-112	-69	-204	-131
EBIT	-135	-78	-250	-149
Eliminations 3)
Revenue	-64	-32	-120	-81
EBITDA	0	-0	1	-0
EBIT	0	-0	1	0
Hexagon Group
Revenue	1 180	788	2 196	1 481
EBITDA	-21	3	-29	28
EBIT	-102	-60	-187	-99

1) Corporate/eliminations refers to holding- and non-operating entities within the Hexagon excl. Purus Group and eliminations within the Hexagon excl. Purus Group

2) Hexagon Purus is a separate segment within the Hexagon Group and is similar to the Hexagon Purus Group (ticker HPUR) listed on the Euronext Growth

3) Eliminations refers to eliminations between entities within Hexagon excl. Purus and entities within Purus

Highlights Q2 2022

• Underlying strong sustainability-driven demand for Hexagon's solutions
• Hexagon Group revenue grew 50% year-over-year to NOK 1,034 million. Margins were, however, adversely impacted by continued cost inflation and supply chain challenges
• Increasing topline momentum in Hexagon Digital Wave, strong growth in both Ultrasonic Examination (UE) machine sales and growth in Modal Acoustic Emission (MAE) requalification services
• Hexagon Agility received new contracts totaling more than NOK 680 million under long term agreements
• Hexagon Purus with strong order intake of hydrogen distribution systems totaling around NOK 370 million in first half of 2022

Financial summary

Hexagon Group excluding Purus

In the second quarter of 2022, Hexagon (excluding Purus) generated NOK 1 034 (726) million in revenues and recorded an operating profit before depreciation and amortizations (EBITDA) of NOK 90 (71) million, representing an EBITDA margin of 9% (10%). The positive 42 % growth in revenues year-over-year, across all business areas, is driven by an underlying strong sustainability driven demand for Hexagon's products and solutions, coupled with NOK 64 million in FX tailwinds. Margins were adversely impacted by significant and continued cost inflation and supply chain challenges across all segments. Price increases have been implemented, however the effects of these lag the further cost increases and productivity inefficiencies from shortages of materials and components.

For the first half of 2022, Hexagon (excluding Purus) generated NOK 1 947 (1 416) million in revenues, representing 37 % growth driven by similar factors as for second quarter. EBITDA for the first half year in 2022 came in at NOK 174 (159) million, representing an EBITDA margin of 9 % (11 %).

Hexagon Agility has, despite significant supply chain challenges and chassis delays, increased revenues in the first half of 2022 by 46% to NOK 1 549 (1 063 million) with nearly three times year-over-year growth in the Mobile Pipeline distribution business alone, to NOK 341 (116) million. Its heavy- and medium duty business also benefited from high underlying demand and healthy growth, while the light-duty-vehicle business has declined.

Hexagon Ragasco revenues increased 10% in the first half of 2022, coming in at NOK 353 (322) million, with sales volumes in Europe increasing markedly, somewhat offset by lower sales volumes in Asia Pacific. There has also been a noteworthy pick-up in volumes to North America, driven in part by higher demand for fork-lift truck applications.

Hexagon Digital Wave continued its positive path and reported revenues of NOK 41 (23) million for the first six months in 2022, driven by the growing CNG/RNG and industrial gas market pushing demand for Digital Wave's ultrasonic examination machines and cylinder requalification services. New applications and markets are opening as the technology continues to be trialed in various sectors.

Hexagon Purus

In the second quarter of 2022, Hexagon Purus generated NOK 210 (94) million in revenues and recorded an EBITDA of NOK -112 (-69) million. Revenue growth of 124 % was driven primarily by continued strength in hydrogen distribution. The strong momentum in the zero emission market sectors targeted by Hexagon Purus, and the Company's accelerated business plan execution, support continued investments in personnel and infrastructure, entailing negative profitability. 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 Purus

In the second quarter of 2022, Hexagon Group including Hexagon Purus, generated NOK 1 180 (788) million in revenues and an EBITDA of NOK -21 (3) million. EBITDA in the Hexagon Group is largely impacted by the negative profitability of Hexagon Purus.

Due to the consolidation of Hexagon Purus, Hexagon Group recorded a net loss after tax of NOK -115 (-72) million in the quarter. Net financial items were NOK -6 (-8) million driven by foreign exchange fluctuation effects of NOK 13 (13) million, unrealized gain/loss on derivatives of NOK 1 (-4) million, net interest expenses of NOK -18 (-18) million and share of profits from associated companies of NOK -1 (1) million. Tax charges were NOK 8 (4) million. The tax charges do not include any credits for carried-forward tax losses within Hexagon Purus as conditions for deferred tax asset recognition are, prudently, not yet deemed to be met.

At quarter-end, the Group balance sheet amounted to NOK 7 603 (5 972) million. The increase in total assets year-over-year is to a large extent explained by the acquisition of Wystrach, the private placement in Hexagon Purus, an increased level of working capital due to growth and pandemic related impact to global supply chains in addition to currency translation effects due to the depreciation in value of NOK versus USD. The Group's equity ratio decreased from 58% to 47% quarter-over-quarter due to the above factors as well as the negative net profit contribution from Hexagon Purus in the period.

Key developments during the quarter

Hexagon Agility received major orders under long-term agreements

• Orders from Certarus Ltd. to deliver Mobile Pipeline modules for RNG and Helium. The order represents an estimated total value of USD 17.6 million (approx. NOK 162 million)
• Orders from UPS for fuel systems for heavy-duty and yard-haulers. The orders have an estimated value of USD 21.9 million (approx. NOK 204 million)
• UPS also committed to purchase fuel systems for medium-duty step vans, with an estimated value of USD 32.1 million (approx. NOK 299 million)

Investment in Cryoshelter

In April, Hexagon announced an agreement to acquire a 40% stake in Cryoshelter GmbH, an Austria based company specialized in the development of cryogenic tank technology for liquid natural gas (LNG) and liquid hydrogen (LH2). Hexagon Composites ASA will make an initial investment of EUR 2.5 million to acquire 40% of Cryoshelter's LNG business with options to acquire remaining shares over the next 3-10 years. Hexagon Purus ASA will make an initial investment of EUR 3.5 million to acquire 40% of Cryoshelter's liquid hydrogen (LH2) business, with options to acquire remaining shares over the next 5-10 years. Closing of the transaction took place 1 August and is thus not a part of the financials for the second quarter.

Withdrawal of nomination by commercial truck OEM

On 25 May, Hexagon Purus received a withdrawal of nomination from a commercial truck OEM for supply of battery packs for zero emission heavy-duty vehicles. The total sales value for the initial period from 2024-2027 was initially estimated to USD 800 million. Although the withdrawal was unfortunate, the ramp-up and pace of Hexagon Purus continues with undiminished strength, and it also creates capacity for other major contracts.

Effects of the war in Ukraine

Hexagon does not have operations or employees in Ukraine but has a sales and distribution subsidiary for its LPG products in Russia. Hexagon has stopped all product shipments to Russia to ensure compliance with international sanctions. The Russian sales entity represented 0.5% of Group revenues in 2021 and the Company does not assess there to be any direct significant effects or risks to its net assets in Russia.

Key developments after end of second quarter

Hydrogen distribution contract in Hexagon Purus

In July, Hexagon Purus' 100% subsidiary Wystrach GmbH received a EUR 11.3 million order to deliver high-performance hydrogen distribution systems to a leading global industrial gas company who is a long-standing customer. Wystrach's hydrogen transport systems with Hexagon Purus' type 4 cylinders will be used to deliver hydrogen for industrial and mobility applications in Germany and the Netherlands.

Segment results

Hexagon Agility

Hexagon Agility is a global provider of clean fuel solutions for commercialand passenger vehicles and gas transportation solutions.

Hexagon Agility recorded combined revenues for the second quarter of NOK 818 (537) million., representing a 52 % growth year-over-year inclusive of favorable currency effects of NOK 57 million. The top line growth was driven by both heavy and medium-duty truck sales as well as Mobile Pipeline CNG/RNG distribution solutions which nearly tripled from NOK 61 million in the same quarter last year to NOK 175 million in second quarter 2022.

Light-duty vehicle revenues remain at low levels as ongoing components shortage remains a challenge for a key customer in car production. This business accounted for ~ 2% of Hexagon (excl. Purus) 2021 revenues. In the meantime, available production capacity in Germany is primarily being utilized for manufacturing of hydrogen cylinders for Hexagon Purus.

Despite year-over-year growth in total revenues, Hexagon Agility experienced challenges in finalization of heavy-and medium duty systems and installs and consequently timely revenue recognition. This is due to global supply chain disruptions and specifically irregular chassis-deliveries for system installations. This has led to substantial increases in inventory levels, both as a mitigation action and as a consequence of the disruptions. The Company expects the inventory levels to normalize as and when these disruptions ease.

EBITDA for Hexagon Agility came in at NOK 63 (44) million in the second quarter, representing an EBITDA margin of 8 % (8%). Higher material input costs, principally carbon fiber, resin and aluminum combined with adverse product mix effects and production inefficiencies due to supply shortages and delays, combined to offset margin accretion. Price increases have been implemented to help mitigate the margin pressure, and further price increases will be negotiated and effectuated in order to improve and normalize margins over time.

Demand remains high in both the Mobile Pipeline business and the medium- and heavy-duty business as CNG/RNG is becoming an increasingly important part in the decarbonization strategy of Hexagon's customers. Backlog at the end of the

quarter remains strong and the underlying demand supports continued strong activity levels and momentum in the CNG/RNG sector.

58 44 ^{98 93} 52 63 0 20 40 60 80 100 120 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 EBITDA (MNOK) 568 175 75 Medium/Heavy-Duty Vehicles Mobile Pipeline Light-Duty Vehicles Revenues Q2'22 MNOK

Hexagon Ragasco

Hexagon Ragasco is the world's leading manufacturer of composite liquified petroleum gas (LPG) cylinders for leisure, household, and industrial applications.

Hexagon Ragasco recorded revenues of NOK 192 (175) million in the second quarter. Sales price increases have materialized in the quarter offsetting the impacts of higher input costs and lower sales volumes compared to the same quarter last year. The main reason for the year-over-year volume drop relates to one large customer in the Asia Pacific facing delays to financing, and in turn delaying their order placements.

Otherwise, sales volumes in Europe were significant and more introductory orders were received in the quarter from customers in the Caribbean and South America. Sales also continue to grow for Forklift Truck applications in Europe, Latin and North America, the latter driven by an improved price competitiveness for composite cylinders versus aluminum cylinders.

EBITDA for the second quarter amounted to NOK 29 (34) million, representing an EBITDA margin of 15% (20%). Margin percent decline is a result of high energy costs and production inefficiencies due to supply shortages.

Hexagon Digital Wave

Hexagon Digital Wave offers innovative cylinder testing and monitoring technologies that reduce down-time and inspection costs while improving inspection accuracy.

Hexagon Digital Wave doubled its revenues in the second quarter of 2022 compared to the same period last year, coming in at NOK 26 (12) million. The growth comes from both higher Ultrasonic Emissions machine sales and growth in Modal Acoustic Emission (MAE) requalification services.

The strong revenue also translated to a positive EBITDA coming in at NOK 3 (-4) million in the second quarter of 2022. The business is still in a ramp-up phase and significant operating investments have been absorbed to ensure accelerated development of key technology and for being able to capture first mover market share. Additional operating investments are still necessary to support further growth, however, the positive EBITDA in second quarter is promising for further developments of this business.

Hexagon Digital Wave has reached the early stage of an expected significant growth phase as Hexagon takes lead in digitalizing its industry.

Progress continues on the technology development for the new digital twin concept for composite fuel solutions. The Pilot program launch is targeted for second half 2022.

Revenue (MNOK)

Hexagon Purus

Hexagon Purus is a global leader in key technologies needed for zero emission mobility. The company is listed on Euronext Growth (HPUR.OL), with Hexagon retaining a 73.3 per cent ownership.

In the second quarter of 2022, Hexagon Purus generated NOK 210 (94) million in revenue and recorded operating profit before depreciation (EBITDA) of NOK -112 ( - 6 9) million. EBITDA loss widened as expected in absolute terms, as the Hexagon Purus Group is continuing its ramp -up in personnel and infrastructure to accelerate growth. Expansion plans in Germany, Canada the US and China are currently materializing.

During the quarter, Hexagon Purus signed a series of inaugural and follow -on orders for its hydrogen systems, supporting a continued strong momentum for the second half of 2022.

In April, Hexagon Purus entered into an agreement to acquire a 40% stake of Cryoshelter GmbH's liquid hydrogen business. Cryoshelter's liquid hydrogen tank technology is in the early stage of development and builds on superior and differentiated LNG technology that provides more fuel capacity and longer hold times (a critical requirement for cryogenic storage) than competing offerings. The transaction brings early -stage expertise in liquid hydrogen tank technology for zero emission mobility applications and is expected to result in a future complementary offering to Hexagon Purus's market leading compressed hydrogen cylinder technology. Closing of the transaction took place 1 August and is thus not a part of the financials for the second quarter .

Please also refer to the separate second quarter 2022 Board of Directors Report for Hexagon Purus ASA published 9 August 2022.

Outlook

Hexagon is focused on delivering near-zero- and zero-emission energy solutions, supported by world-class manufacturing and digitalization, with the aim of enabling companies and other institutions to reach their net-zero ambitions. Together with clients and partners, the Company is finding new ways to make near zero and zero emission energy solutions available and affordable.

The war in Ukraine and the Covid pandemic continue to impact the global supply chains and input prices and are adding uncertainty to the development of the global economy in general. Supply chain challenges and cost inflation are expected to adversely impact Hexagon's margins in the second half of 2022 as cost measures as well as price increases already implemented are lagging the combined margin impact of growth in input prices and production system inefficiencies due to supply shortages. Hexagon is closely monitoring and managing these effects to mitigate the margin pressure, and further price increases and other cost measures will be effectuated in the second half of the year to improve and normalize margins from the first quarter 2023. However, Hexagon continues to see healthy demand across all businesses. Further development in regulations and changes in industry dynamics are expected to significantly support additional long-term clean energy technology opportunities within Hexagon's natural gas (RNG/CNG), LPG/bio-LPG, hydrogen, battery-electric and digital solutions segments.

On the regulatory side, The REPowerEU Plan presented by the European Commission in March, aims to end Europe's dependence on Russian fossil fuels before 2030. The Plan will rapidly reduce dependence on Russian fossil fuels by fast-forwarding the clean energy transition and adapting industry and infrastructure to different energy sources and suppliers. According to the European Commission, additional investments of EUR 210 billion are needed between now and 2027, including EUR 37 billion for biomethane production, EUR 27 billion for hydrogen infrastructure and EUR 10 billion to import sufficient LNG and pipeline gas. To meet the ambition of REPower EU, Hexagon expects that there will be a significant need for investments into gas storage and transportation infrastructure with several opportunities for Hexagon's broad range of clean fuel solutions. In the U.S., The Inflation Reduction Act introduced in July, aims to bring down costs and boosts energy supply, cutting Inflation and substantially reducing greenhouse gas emissions. Of the total USD 739 billion package, USD 369 billion is earmarked for "Energy Security and Climate Change" which would put the U.S. on a path to roughly 40% emissions reduction by 2030. Tens of billions of dollars will go toward supporting renewable energy development, including tax credits and grants for clean fuels and clean commercial vehicles to reduce emissions from all parts of the transportation sector and clean heavyduty vehicles, like school and transit buses and garbage trucks.

Segments

In Hexagon Agility, pressure on margins is expected to continue as mitigating effects related to supply chain challenges and cost inflation will be lagging expected cost increases and production inefficiencies in the second half of the year. However, demand remains high in both the medium- and heavy-duty business and the Mobile Pipeline business. For 2022, the medium & heavy-duty truck business in North America holds a strong orderbook comprising orders from leading global logistics customers and truck OEMs. The demand is driven by increased adoption of clean fuels, regulations and a larger addressable vehicle pool. The Transit bus segment in North America is expected to remain stable whilst the European bus segment is weaker, impacted by supply chain challenges. The Refuse truck business is seeing a bounce back in demand with several new orders. The Mobile Pipeline business continues to see a strong market dominated by deliveries into the RNG segment, driven by lack of pipeline infrastructure combined with growing energy demands and environmental targets. The Light-Duty Vehicle business continues to be negatively affected by components shortage with the key customer.

Hexagon Ragasco continues to experience higher input costs as certain raw material suppliers are impacted by prolonged global supply-chain challenges as well as increases in energy- and transportation costs. However, sales price increases have materialized in the quarter offsetting the impacts of higher input costs and somewhat lower sales volumes. The demand for LPG products remains healthy and the industry is investing in increased Bio-LPG, especially within Europe.

Hexagon Digital Wave continues to see increased demand for its cylinder testing and monitoring technology. Its cylinder requalification services are gaining momentum with the total installed base of cylinders in the market. The company is in a growth and investment phase, as Hexagon takes lead in digitalizing its industry with real life health monitoring of cylinders. Further positive impact on revenues is expected in the longer ter

Risks and uncertainties

The Hexagon Composites Group is active in sales and purchasing in many geographies and markets. Export represents a considerable part of the Group's sales. Currency risk is the Group's largest financial risk factor, and the Company employs forward currency contracts in addition to natural hedges to mitigate these risks. In the Board's view there are no major changes to the risk composition for the Group compared with 2021. The Group is by nature exposed to the general macro climate factors, including those resulting in the post pandemic global supply chain disruptions, and how these directly or indirectly impact the business positively or negatively. For additional information about risks and uncertainties we refer to Hexagon Composites' 2021 annual report. It is not expected that the above exposures and risks will have a material effect on the Group or its financial position in the next reporting period.

Statement from the Board and CEO

To the best of our knowledge, we confirm that:

• the consolidated financial statements for the period 1 January to 30 June 2022 have been prepared in accordance with "IAS 34 Interim Financial Reporting",

• the information provided in the financial statements gives a true and fair view of the Company's and Group's assets, liabilities, financial position and results for the period viewed in their entirety, and that;

• the information presented in the financial statements gives a true and fair view of important events of the period, financial position, material related party transactions and principal risks and uncertainties of the Group for the next quarter.

These forward-looking statements reflect current views about future events and are, by their nature, subject to significant risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. For further information please refer to the section "Forward -Looking Statements" at the end of this report.

Oslo, 10 August 2022

The Board of Directors of Hexagon Composites ASA

Knut Flakk Chair

Kristine Landmark Deputy Chair

Katsunori Mori Board member

Liv Astri Hovem Board member

Hans Peter Havdal Board member

Liv Dingsør Board member

Sam Gabbita Board member

Jon Erik Engeset Group President & CEO

Condensed Interim Financial Statements Group

Income statement

(NOK 1000)	Note	Q2 2022	Q2 2021	30.06.2022	30.06.2021	31.12.2021
		Unaudited	Unaudited	Unaudited	Unaudited	Audited
Revenue from contracts with customers	3	1 178 993	787 641	2 193 004	1 479 937	3 539 537
Rental income	3	1 185	418	3 078	601	3 354
Total revenue		1 180 178	788 060	2 196 082	1 480 538	3 542 890
Cost of materials		643 745	366 365	1 119 853	661 261	1 695 497
Payroll and social security expenses	10	351 777	255 628	700 902	510 070	1 101 298
Other operating expenses		205 460	163 470	404 643	281 183	637 512
Total operating expenses		1 200 982	785 464	2 225 398	1 452 514	3 434 307
Operating profit before depreciation and amortization (EBITDA)		-20 805	2 596	-29 317	28 023	108 584
Depreciation, amortization, and impairment	4,5	80 921	62 643	157 862	126 529	262 680
Operating profit (EBIT)		-101 726	-60 047	-187 179	-98 506	-154 096
Profit/loss from investments in associates and joint ventures		-1 389	575	-2 738	-127	-2 957
Other financial items (net)		-4 616	-8 941	-19 087	-57 890	-144 691
Profit/loss before tax		-107 731	-68 413	-209 004	-156 523	-301 744
Tax expense		7 652	3 714	19 028	8 662	25 833
Profit/loss after tax		-115 383	-72 127	-228 032	-165 185	-327 577
Attributable to:
Equity holders of the parent		-82 193	-51 165	-163 211	-117 925	-237 325
Non-Controlling interests		-33 190	-20 962	-64 822	-47 260	-90 252
Profit/loss after tax		-115 383	-72 127	-228 032	-165 185	-327 577
Earnings per share (NOK)		-0,57	-0,36	-1,14	-0,83	-1,64
Diluted earnings per share (NOK)		-0,57	-0,36	-1,14	-0,83	-1,64

Comprehensive income statement

(NOK 1000)	Note	Q2 2022	Q2 2021	30.06.2022	30.06.2021	31.12.2021
		Unaudited	Unaudited	Unaudited	Unaudited	Audited
Profit/loss after tax		-115 383	-72 127	-228 032	-165 185	-327 577
OTHER COMPREHENSIVE INCOME
Items that will be reclassified through profit or loss in subsequent periods
Translation differences when translating foreign activities		233 073	4 047	193 196	8 359	26 410
Net total of items that will be reclassified through profit or loss in subsequent
periods		233 073	4 047	193 196	8 359	26 410
Items that will not be reclassified through profit or loss in subsequent
periods
Actuarial gains/losses for the period (net after tax)		0	0	0	0	-287
Net other comprehensive income not to be reclassified to profit or loss in
subsequent periods		0	0	0	0	-287
Total comprehensive income for the period		117 690	-68 080	-34 836	-156 826	-301 454
Attributable to:
Equity holders of the parent		133 748	-45 609	18 702	-109 245	-208 121
Non-Controlling interest		-16 058	-22 471	-53 538	-47 581	-93 334

Statement of financial position

(NOK 1000)	Note	30.06.2022	30.06.2021	31.12.2021
		Unaudited	Unaudited	Audited
ASSETS
Property, plant , and equipment	4	1 268 280	796 587	1 010 625
Right -of -use assets	4	268 792	268 724	282 309
Intangible assets	5	2 583 657	2 018 653	2 384 524
Investment in associates and joint ventures		4 286	1 974	7 024
Other non -current financial assets		11 171	1 739	2 869
Deferred tax assets		13 678	1 769	13 678
Total non -current assets		4 149 865	3 089 446	3 701 029
Inventories		1 510 276	882 729	1 147 004
Trade receivables		921 574	584 234	880 396
Contract assets (incl. prepayments)		5 059	1 016	4 165
Other current assets		212 603	191 212	182 443
Bank deposits, cash and similar		803 724	1 223 575	600 209
Total current assets		3 453 236	2 882 766	2 814 217
Total assets		7 603 101	5 972 212	6 515 246

(NOK 1000)	Note	30.06.2022	30.06.2021	31.12.2021
		Unaudited	Unaudited	Audited
EQUITY AND LIABILITIES
Paid -in capital		2 208 135	2 17 5 542	2 194 303
Other equity		899 515	916 120	911 989
Equity attributable to equity holders of the parent		3 107 650	3 091 662	3 106 291
Non -controlling interests		484 471	365 265	378 010
Total equity		3 592 121	3 456 926	3 484 301
Interest -bearing liabilities (non -current)	8	1 640 589	1 068 386	1 166 057
Lease liabilities (non - current)	6	224 537	218 879	230 276
Other financial liabilities (non -current)	7	265 175	40 597	190 529
Pension liabilities		5 370	3 798	4 645
Defe rred tax liabilities		264 168	181 612	247 160
Provisions (non -current)		6 737	3 237	11 686
Total non - current liabilities		2 406 576	1 516 508	1 850 353
Interest -bearing liabilities (current)	8	34 585	0	13 635
Lease liabilities (current)	6	57 217	60 618	62 455
Trade payables		550 681	362 797	392 747
Contract liabilities (incl. prepayments from customers )		446 287	145 242	277 658
Other financial liabilities (current)	7	73 871	0	0
Income tax payable		58 238	119 488	47 201
Other current liabilities		302 351	225 386	320 150
Provisions (current)		81 174	85 245	66 747
Total current liabilities		1 604 405	998 777	1 180 592
Total liabilities		4 010 981	2 515 285	3 030 945
Total equity and liabilities		7 603 101	5 972 212	6 515 246

Cash flow statement

(NOK 1000)	Note	30.06.2022	30.06.2021	31.12.2021
Cash flow from operating activities
Profit before tax		-209 004	-156 523	-301 744
Depreciation, amortization and impairment	4,5	157 862	126 529	262 680
Net interest expense		25 323	26 448	52 166
Changes in net operating working capital (1)		-78 781	-110 707	-455 250
Other adjustments to operating cash flow		29 592	8 039	97 452
Net cash flow from operating activities		-75 008	-106 215	-344 696
Purchase of property, plant & equipment, net of proceeds from sale	4	-248 935	-99 626	-263 846
Purchase of intangible assets	5	-34 629	-24 959	-59 755
Interest received		4 208	1 117	4 394
Acquisition of subsidiaries, net of cash acquired		0	0	-146 189
Other investments		-8 302	-680	-9 689
Net cash flow from investing activities		-287 659	-124 148	-475 085
Net repayment (-) / proceeds (+) from interest bearing loans	8	492 526	-143 165	-126 771
Interest payments on interest-bearing liabilities		-26 735	-23 178	-49 901
Repayment of lease liabilities (incl. Interests)	6	-38 760	-33 861	-70 716
Net proceeds from share capital increase (subsidiary)		154 108	0	0
Net proceeds from purchase (-) and sale (+) of own shares		-30 495	4 259	9 543
Net cash flow from financing activities		550 644	-195 946	-237 846
Net change in cash and cash equivalents		187 977	-426 308	-1 057 627
Net currency exchange differences		15 539	1	7 954
Cash and cash equivalents at start of period		600 209	1 649 882	1 649 882
Cash and cash equivalents at end of period		803 724	1 223 575	600 209
Available unused credit facility		85 908	600 000	582 605

1) Net operating working capital consists of changes in inventories, trade receivables, contract assets, trade payables and contract liabilities.

Statement of changes in equity

							Equity -	Non
	Share	Own	Share	Other paid-in	Translation	Other	holders of	controlling
(NOK 1 000)	capital	shares	premium	capital	differences	equity	parent	interests	Total equity
As of 1 January 2021	20 162	-185	2 075 999	69 615	64 906	953 444	3 183 939	411 899	3 595 838
Profit for the period						-117 925	-117 925	-47 260	-165 185
Other income and expenses					9 628	-948	8 680	-321	8 359
Share-based payment				9 908		2 799	12 707	947	13 655
Movement in own shares etc.		43				4 216	4 259		4 259
As of 30 June 2021	20 162	-142	2 075 999	79 523	74 534	841 586	3 091 661	365 265	3 456 926
							Equity -	Non
	Share	Own	Share	Other paid-in	Translation	Other	holders of	controlling
(NOK 1 000)	capital	shares	premium	capital	differences	equity	parent	interests	Total equity
As of 1 January 2021	20 162	-185	2 075 999	69 615	64 906	953 444	3 183 939	411 899	3 595 838
Profit for the period						-237 325	-237 325	-90 252	-327 577
Other income and expenses					29 492	-287	29 204	-3 081	26 123
Share-based payment				28 612		5 716	34 328	1 974	36 302
Movement in own shares etc.		100				9 442	9 543		9 543
Consideration shares issued in subsidiary in business
combination						86 602	86 602	57 470	144 072
As of 31 December 2021	20 162	-85	2 075 999	98 226	94 398	817 591	3 106 291	378 010	3 484 301

On 23 November 2021 Hexagon Purus issued 4 444 430 consideration shares related to the acquisition of Wystrach. The share capital increase in Hexagon Purus ASA amounted to MNOK 144.1 in which controlling and non-controlling interests' relative share amounted to MNOK 86.2 and MNOK 57.5 respectively.

							Equity -	Non
	Share	Own	Share	Other paid-in	Translation	Other	holders of	controlling
(NOK 1 000)	capital	shares	premium	capital	differences	equity	parent	interests	Total equity
As of 1 January 2022	20 162	-85	2 075 999	98 226	94 398	817 591	3 106 291	378 010	3 484 301
Profit for the period						-163 211	-163 211	-64 822	-228 032
Other income and expenses					181 913		181 913	11 283	193 196
Share-based payment				13 817		3 830	17 647	1 396	19 043
Movement in own shares etc.		15				-30 510	-30 495		-30 495
Increase share capital in subsidiary							0	160 242	160 242
Transaction cost related to capital increase in subsidiary						-4 496	-4 496	-1 638	-6 134
As of 30 June 2022	20 162	-69	2 075 999	112 043	276 311	623 205	3 107 650	484 471	3 592 121

On 22 February 2022 the Hexagon Purus Group issued 24 742 268 new shares in a private placement at the price of NOK 24.25 per share. Hexagon Composites was allocated 18 134 361 shares in the Private Placement and retains its ownership interest in the Company of 73.3%.

Note 1: General information and basis for preparation

The condensed consolidated interim financial statements for the first half year 2022, which ended 30 June 2022, comprise Hexagon Composites ASA and its subsidiaries (together referred to as "the Group"). The company's headquarters are at Korsegata 4B, 6002 Aalesund, Norway. Hexagon Composites ASA is listed on the Oslo Stock Exchange under the ticker HEX.

These condensed consolidated interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting. They do not include all of the information required for full annual financial statements and should be read in conjunction with the consolidated financial statements of The Group for the year which ended 31 December 2021.

For a more detailed description of accounting principles see the consolidated financial statements for 2021, available on the Company's website www.hexagongroup.com/investors

The accounting principles used in the preparation of these interim accounts are the same as those applied to the consolidated financial statements for 2021. The Group has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective.

These condensed consolidated interim financial statements were approved by the Board of Directors on 10 August 2022.

Note 2: Estimates

The preparation of the interim accounts entails the use of valuations, estimates and assumptions that affect the application of the accounting policies and the amounts recognized as assets and liabilities, income and expenses. The actual results may deviate from these estimates. The material assessments underlying the application of the Group's accounting policy and the main sources of uncertainty are the same as for the consolidated accounts

Note 3: Business segment data

Q2 2022	Q2 2021	30.06.2022	30.06.2021	31.12.2021 Audited
762 241	505 778	1 450 905	993 665	2 413 077
0	0	0	0	70
54 830	30 919	95 525	69 590	202 693
817 071	536 697	1 546 430	1 063 255	2 615 840
974	235	2 672	235	1 695
818 045	536 932	1 549 102	1 063 490	2 617 535
63 006	44 011	115 253	101 828	292 655
21 029	4 775	33 350	20 951	138 508
		4 377 183	3 482 575	3 819 260
		1 940 341	1 497 902	1 641 009
	Unaudited	Unaudited	Unaudited	Unaudited

Hexagon Ragasco
Sale of cylinders, systems, and equipment (at point in time)	190 046	174 129	350 307	320 656	575 643
Sale of systems, services, and funded development (transferred over time)	0	0	0	0	0
Internal transactions	1 852	841	3 190	1 158	2 495
Total revenue from contract with customers	191 897	174 970	353 497	321 814	578 138
Rental income	0	0	0	0	0
Total revenue	191 897	174 970	353 497	321 814	578 138
Segment operating profit before depreciation (EBITDA)	28 945	34 241	62 036	68 125	94 972
Segment operating profit (EBIT)	19 748	25 553	43 691	51 009	60 325
Segment assets			542 918	517 488	516 251

(NOK 1000)	Q2 2022	Q2 2021	30.06.2022	30.06.2021	31.12.2021
	Unaudited	Unaudited	Unaudited	Unaudited	Audited
Hexagon Digital Wave
Sale of cylinders, systems, and equipment (at point in time)	20 677	11 215	31 974	21 119	48 155
Sale of systems, services, and funded development (transferred over time)	0	0	0	0	0
Internal transactions	4 891	814	8 830	1 953	9 029
Total revenue from contract with customers	25 568	12 029	40 804	23 073	57 184
Rental income	0	0	0	0	0
Total revenue	25 568	12 029	40 804	23 073	57 184
Segment operating profit before depreciation (EBITDA)	2 514	-4 331	-1 589	-7 665	-10 677
Segment operating profit (EBIT)	1 176	-5 290	-4 176	-9 594	-14 826
Segment assets			98 270	74 576	83 882
Segment liabilities			137 472	92 164	113 013

Hexagon Purus
Sale of cylinders, systems, and equipment (at point in time)	209 146	93 124	365 646	141 898	495 103
Sale of systems, services, and funded development (transferred over time)	0	635	1 362	1 015	3 441
Internal transactions	710	317	1 579	2 696	7 495
Total revenue from contract with customers	209 855	94 077	368 587	145 609	506 039
Rental income	253	0	569	0	1 679
Total revenue	210 109	94 077	369 156	145 609	507 718
Segment operating profit before depreciation (EBITDA)	-111 537	-68 540	-204 348	-130 527	-271 777
Segment operating profit (EBIT)	-135 270	-78 254	-250 144	-148 665	-324 874
Segment assets			2 527 048	1 931 036	2 101 745
Segment liabilities			713 024	394 663	686 347

Note 4: Tangible assets

		2022	2021
	Property, plant, and			Property, plant, and
(NOK 1000)	equipment	Right of use assets	Total 2022	equipment	Right of use assets	Total 2021
Carrying value as of 1 January	1 010 625	282 309	1 292 934	747 266	266 552	1 013 818
Additions	248 935	6 540	255 476	99 626	19 396	119 022
Depreciations	-73 363	-36 697	-110 060	-62 252	-31 218	-93 470
Impairments	-594	0	-594	0	0	0
Currency translation differences	82 677	16 640	99 317	11 947	13 994	25 942
Carrying value as of 30 June	1 268 280	268 792	1 537 072	796 587	268 724	1 065 311

Note 5: Intangible assets

	2022				2021
	Customer Other intangible				Customer Other intangible
(NOK 1000)	Goodwill	relationships	assets1)	Total 2022	Goodwill	relationships	assets1)	Total 2021
Carrying value as of 1 January	1 572 788	387 773	423 963	2 384 524	1 369 859	337 887	326 610	2 034 356
Additions	0	0	34 629	34 629	0	0	24 959	24 959
Amortisations	0	-23 092	-24 116	-47 208	0	-16 743	-16 313	-33 057
Currency translation differences	146 628	25 051	40 033	211 712	-2 365	-12 148	6 907	-7 605
Carrying value as of 30 June	1 719 416	389 732	474 509	2 583 657	1 367 495	308 996	342 163	2 018 653

1) Other intangible assets consist of technology and development, patents and licenses and other rights

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. For goodwill, impairment tests are performed annually in the fourth quarter, or immediately in the case of an impairment indicator.

Goodwill is tested using the value in use approach determined by discounting expected future cash flows. If the impairment test reveals that an asset's carrying amount is higher than its value in use, an impairment loss will be recognized.

There are four CGUs in the Hexagon Group; 1) Hexagon Agility, 2) Hexagon Digital Wave, 3) Hexagon Purus, and 4) Hexagon Ragasco. During the quarter there were no indicators of impairment of intangible assets.

Note 6: Lease liabilities

(NOK 1000)	2022	2021
Carrying value as of 1 January	292 731	275 705
New lease liabilities recognized in the period	6 540	19 396
Cash payments for the principal portion of the lease liability	-34 771	-30 091
Cash payments for the interest portion of the lease liability	-3 989	-3 770
Interest on lease liabilities	3 989	3 770
Currency translation differences	17 254	14 488
Carrying value as of 30 June	281 754	279 497

Lease liabilities are to a large extent related to lease agreements of office- and production premises, in addition to some vehicles, machinery and equipment.

Note 7: Other financial liabilities

(NOK 1000)	Carrying value 01.01.2022	Fair value adjustment	Additions in the period	Settlements in the period	Reclassifications	Currency translation	Carrying value 30.06.2022
Cross currency swap (fair value) 1)	81 423	144 588	0	0	0	0	226 011
Deferred payment from business combination (amortized cost)	43 490	0	0	0	-45 056	-1 566	0
Contingent liabilities from business combinations (fair value)	65 616	0	0	0	-28 815	2 363	39 164
Total non-current other financial liabilities	190 529	144 588	0	0	-73 871	3 929	265 175
Cross currency swap (fair value)	0	0	0	0	0	0	0
Deferred payment from business combination (amortized cost)	0	0	0	0	45 056	0	45 056
Contingent liabilities from business combinations (fair value)	0	0	0	0	28 815	0	25 815
Total current other financial liabilities	0	0	0	0	73 871	0	73 871

1) If carrying value of cross currency swap is shown with a negative amount, this implies the swap being classified as a financial asset

The table above and below shows the movements of current and non-current other financial liabilities in the period. Deferred payments and contingent liabilities are related to the acquisition of Wystrach and Wyrent as of November 11 2021. The fair value of the contingent liabilities is assessed each quarter. At the end of the reporting period, there have been no changes to the fair value assessment.

	Carrying value	Fair value	Additions	Settlements		Currency	Carrying value
(NOK 1000)	01.01.2021	adjustment	in the period	in the period	Reclassifications	translation	30.06.2021
1) Cross currency swap (fair value)	-78 829	11 850	0	107 577	0	0	40 597
Deferred payment from business combination (amortized
cost)	0	0	0	0	0	0	0
Contingent liabilities from business combinations (fair
value)	0	0	0	0	0	0	0
Total non-current other financial liabilities	-78 829	11 850	0	107 577	0	0	40 597
Cross currency swap (fair value)	0	0	0	0	0	0	0
Deferred payment from business combination (amortized
cost)	0	0	0	0	0	0	0
Contingent liabilities from business combinations (fair
value)	0	0	0	0	0	0	0
Total current other financial liabilities	0	0	0	0	0	0	0

Note 8: Interest-bearing liabilities

The following table shows material changes in interest-bearing debt during 2022 and for the comparable period last year:

	2022			2021
(NOK 1000)	Non-current	Current	Total 2022	Non-current	Current	Total 2021
Liabilities 1 January	1 166 057	13 635	1 179 692	1 206 127	0	1 206 127
with cash settlement: Financing activities
- Repayment of liabilities	0	0	0	-143 165	0	-143 165
without cash settlement: Financing activities
- New liabilities	471 576	20 951	492 527	0	0	0
- Exchange differences	1 705	0	1 705	-3 419	0	-3 419
- Other transactions without cash settlement	1 250	0	1 250	8 843	0	8 843
Liabilities 30 June	1 640 589	34 585	1 675 174	1 068 386	0	1 068 386

The principal loan financing facility in Hexagon Composites ASA is a Senior Secured bilateral facility with DNB Bank and Danske Bank. The overall size of the committed facility is NOK 1 700 million, comprising an overdraft facility NOK 250 million, a main multi-currency revolving credit (RCF) NOK 350 million and a Term Loan (NOK 1 100 million). There is an optional accordion facility of NOK 400 million, in addition, under the terms of the agreement. In addition, the Group, through Hexagon Purus, has loans towards Volkesbank and Deutsche Bank including an overdraft facility of EUR 2.3 million. As of period end, there were no breaches of the financial covenant under the financing facility agreement. Movements in the first half year on the Long-

term Secured bank loans and Other loans were primarily due to an increase in bank loans by NOK 471 576 thousand, non-cash amortization of loan and valuation of the cross-currency swap. Movements in the first half year on the Short-term bank loans were primarily due to increase of NOK 20 951 thousand

Note 9: Financial instruments

For financial instruments that are recognized at fair value on a recurring basis, the Group determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization at the end of each reporting period.

Fair value hierarchy

The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

Level 1: Quoted (unadjusted) prices in active markets for identical assets or liabilities

Level 2: Other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly

Level 3: Techniques which use inputs which have a significant effect on the recorded fair value that are not based on observable market data

There were no transfers from one level to another in the measurement hierarchy from 2021 to the 2nd quarter of 2022. Hexagon Group has no items defined as level 1. Set out below is a comparison of the carrying amount and the fair value of financial instruments as of 30 June 2022.

		30.06.2022		31.12.2021
(NOK 1000)	Level	Carrying amount	Fair value	Carrying amount	Fair value
Financial assets:
Other non-current financial assets	2	11 171	11 171	2 869	2 869
Trade receivables		921 574	921 574	880 396	880 396
Forward exchange contracts	2	333	333	1 162	1 162
Bank deposits, cash, and cash equivalents		803 724	803 724	600 209	600 209
Total financial assets		1 736 802	1 736 802	1 484 636	1 484 636
Financial liabilities:
Bank loans (incl. amortized costs)	2	1 640 589	1 647 158	1 166 057	1 173 877
Lease liabilities	2	281 754	281 754	292 731	292 731
Non-current contingent liabilities	3	39 164	39 164	65 616	65 616
Other non-current financial liabilities	3	226 011	226 011	124 913	124 913
Current interest-bearing liabilities	2	34 585	34 585	13 635	13 635
Current contingent and financial liabilities	3	73 871	73 871	0	0
Trade payables		550 681	550 681	392 747	392 747
Total financial liabilities		2 846 655	2 853 224	2 055 699	2 063 519

Note 10: Share based payment

Share-based payment in Hexagon Composites ASA

The Company has a performance share units program (PSUs) and a restricted share units program (RSUs) covering certain employees in senior positions.

Performance share units programs (PSUs)

All PSUs are non-transferable and will vest subject to satisfaction of the applicable vesting conditions (fulfilling Group EBITDA and revenue targets). The actual number of PSUs vested will depend on performance and vary from minimum zero to the maximum awarded PSUs in each program. Each vested PSU will give the holder the right to receive one share in the Company at an exercise price corresponding to the par value of the shares being NOK 0.10.

Performance share units programs (PSUs)	Issued 2019	Issued 2020	Issued 2021	Issued 2022
Maximum number	2 492 438	3 711 634	1 734 990	2 660 082
Exercise price (NOK)	0,10	0,10	0,10	0,10
Vesting period	3 years	3 years	3 years	3 years
	Excercised Q1
Expiry	20221)	Q1 2023	Q1 2024	Q1 2025

1) During the 1st quarter of 2022 1,078,628 PSUs have been exercised at the weighted average share price of NOK 28.11.

Restricted share units programs (RSUs)

The RSUs are subject to continued employment three years after date of grant, and each participant will at such time receive such number of Hexagon shares as corresponds to the number of RSUs allocated to them.

Restricted share units programs (RSUs)	Issued 2019	Issued 2020	Issued 2021
Number of RSUs	49 994	70 000	100 000
Exercise price (NOK)	0,10	0,10	0,10
Vesting period	3 years	3 years	3 years
Expiry	Q3 2022	Q3 2023	Q3 2024

The fair value of the PSUs and RSUs was calculated on the grant date, based on the Black-Scholes model, and the cost is recognized over the service period. Cost associated with programs were NOK 13.5 million YTD 30.06.2022. The cost in the second quarter were NOK 6.2 million. The fair value of all outstanding PSUs (maximum 5,028,864) and RSUs (208,852) is estimated to NOK 61.3 million per 30 June 2022.

In addition to the above-mentioned instruments, the Company has issued bonus arrangements to certain executives within the Group. The bonus arrangements are dependent upon

the share price development of Hexagon Purus ASA and is converted to a given number of cash settlement options in Hexagon Purus ASA, for the purpose of calculating quarterly fair values using the Black-Scholes model. These cash settlement arrangements involved total expenses of NOK 5.4 million YTD 30.06.2022. Expenses in the second quarter were NOK -1.2 million. Remaining unamortized accrual is estimated to MNOK 15.1 as of 30 June 2022. For share-based payment in Hexagon Purus ASA, see quarterly financials at hexagonpurus.com.

Note 11: Events after the balance sheet date

Hydrogen distribution contract in Hexagon Purus

In July, Wystrach GmbH received a EUR 11.3 million order to deliver high-performance hydrogen distribution systems to a leading global industrial gas company who is a long-standing customer. Wystrach's hydrogen transport systems with Hexagon Purus' type 4 cylinders will be used to deliver hydrogen for industrial and mobility applications in Germany and the Netherlands.

There have not been any other significant events after the balance sheet date.

Key figures and ratios

	YTD Q2 2022	YTD Q2 2021	31.12.2021
Hexagon Group
EBITDA in % of total revenue	-1,3 %	1,9 %	3,1 %
EBIT in % of total revenue	-8,5 %	-6,7 %	-4,3 %
Equity ratio	47,2 %	57,9 %	53,5 %
Liquidity reserve *) (NOK 1 000)	889 632	1 823 575	1 182 814
Diluted earnings per share (NOK)	-1,14	-0,83	-1,61
Cash flow from operations per share (NOK)	-0,37	-0,50	-1,70
Equity per share (NOK)	17,82	17,15	17,28
Hexagon Agility
EBITDA in % of total revenue	7,4 %	9,6 %	11,2 %
EBIT in % of total revenue	2,2 %	2,0 %	5,3 %
Hexagon Ragasco
EBITDA in % of total revenue	17,5 %	21,2 %	16,4 %
EBIT in % of total revenue	12,4 %	15,9 %	10,4 %
Hexagon Digital Wave
EBITDA in % of total revenue	-3,9 %	-33,2 %	-18,7 %
EBIT in % of total revenue	-10,2 %	-41,6 %	-25,9 %
Hexagon Purus
EBITDA in % of total revenue	-55,4 %	-89,6 %	-53,5 %
EBIT in % of total revenue	-67,8 %	-102,1 %	-64,0 %

*) Undrawn credit facility + bank deposits and cash. Use of undrawn credit facility can be limited by financial covenants

Share information

A total of 23,400,995 shares (Q1: 38,335,700 shares) in Hexagon Composites ASA were traded on the Oslo Stock exchange during the second quarter of 2022. In the quarter, the share price moved between NOK 25.68 and NOK 38.68, ending the quarter at NOK 26.94, giving a market capitalization of NOK 5.43 billion for the Company. For further investor information, refer to the investor section on www.hexagongroup.com.

Terminology

BAR

Unit of pressure. 1 millibar = 100 N/m2

BIOGAS

Produced from raw materials such as agricultural waste, manure, municipal waste, plant material, sewage, green waste or food waste

BIO-LPG

Propane produced from renewable feedstocks such as plant and vegetable waste material

BEV

Battery Electric Vehicle

CHASSIS

The base frame of a car, carriage or other wheeled vehicle

CHG Compressed Hydrogen Gas

CNG Compressed Natural Gas

CO2 Carbon Dioxide

COMPOSITE

Combination of glass/carbon fiber and thermosetting plastic, exploiting the malleability of the plastic and the stiffness and strength of the glass/ carbon fiber

EBIT

Earnings before interests and taxes

EBITDA

Earnings before interest, taxes, depreciation and amortization

EV

Electric Vehicle

FCEV

Fuel Cell Electric Vehicle

GHG Greenhouse Gas

GVW Gross Vehicle Weight

HDV Heavy-Duty Vehicle

H2

Hydrogen, light, colorless gas (Symbol H), produced on an industrial scale

JOINT VENTURE

Legally signed contractual agreement whereby two or more parties undertake an economic activity

LDV

Light-Duty Vehicle

LNG Liquefied Natural Gas

LPG Liquefied Petroleum Gas (propane gas)

MOBILE PIPELINE® Gas distribution products

NGV Natural Gas Vehicle

OEM Original Equipment Manufacturer

X-STORE®

High-pressure composite cylinder for bulk transportation and storage of CNG

RNG

Renewable Natural Gas Pipeline compatible gaseous fuel derived from biogenic or other renewable sources that has lower lifecycle carbon dioxide equivalent (CO2- eq) emissions than geological natural gas

SCBA CYLINDER

Self-contained breathing apparatus

SCM3

Standard cubic meters. Unit for volumetric measurement of oil, natural gas and natural gas condensate at standard conditions defined in the ISO standard ISO 13443

TITAN®

High-pressure composite cylinder for bulk transportation and storage of CNG

TUFFSHELL®

High-pressure CNG cylinder for heavy duty vehicles

TYPE 1

Steel cylinder

TYPE 2

Steel cylinder, composite-reinforced

TYPE 3

Composite cylinder with metal liner

TYPE 4

Composite cylinder with polymer liner

U.S. DOT

U.S. Department of Transportation

Forward looking statements

This quarterly report (the "Report") has been prepared by Hexagon Composites ASA ("Hexagon" or the "Company"). The Report has not been reviewed or registered with, or approved by, any public authority, stock exchange or regulated marketplace. The Company makes no representation or warranty (whether express or implied) as to the correctness or completeness of the information contained herein, and neither the Company nor any of its subsidiaries, directors, employees or advisors assume any liability connected to the Report and/or the statements set out herein. This Report is not and does not purport to be complete in any way. The information included in this Report may contain certain forward- looking statements relating to the business, financial performance and results of the Company and/or the industry in which it operates. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words "believes", expects", "predicts", "intends", "projects", "plans", "estimates", "aims", "foresees", "anticipates", "targets", and similar expressions. The forward-looking statements contained in this Report, including assumptions, opinions and views of the Company or cited from third party sources are solely opinions and forecasts which are subject to risks, uncertainties and other factors that may cause actual events to differ materially from any anticipated development. None of the Company or its advisors or any of their parent or subsidiary undertakings or any such person's affiliates, officers or employees provides any assurance that the assumptions underlying such forward-looking statements are free from errors nor does any of them accept any responsibility for the future accuracy of the opinions expressed in this Report or the actual occurrence of the forecasted developments. The Company and its advisors assume no obligation to update any forward-looking statements or to conform these forward-looking statements to the Company's actual results. Investors are advised, however, to inform themselves about any further public disclosures made by the Company, such as filings made with the Oslo Stock Exchange or press releases. This Report has been prepared for information purposes only. This Report does not constitute any solicitation for any offer to purchase or subscribe any securities and is not an offer or invitation to sell or issue securities for sale in any jurisdiction, including the United States. Distribution of the Report in or into any jurisdiction where such distribution may be unlawful, is prohibited. This Report speaks as of 10 August 2022, and there may have been changes in matters which affect the Company subsequent to the date of this Report. Neither the issue nor delivery of this Report shall under any circumstance create any implication that the information contained herein is correct as of any time subsequent to the date hereof or that the affairs of the Company have not since changed, and the Company does not intend, and does not assume any obligation, to update or correct any information included in this Report. This Report is subject to Norwegian law, and any dispute arising in respect of this Report is subject to the exclusive jurisdiction of Norwegian courts with Oslo City Court as exclusive venue. By receiving this Report, you accept to be bound by the terms above

Hexagon Composites ASA Korsegata 4B, 6002 Ålesund, Norway www.hexagonpurus.com