Hexagon Composites — Interim / Quarterly Report 2015

Aug 13, 2015

SECOND QUARTER 2015 REPORT

In the second quarter 2015 Hexagon Composites generated NOK 413.9 (394.2) million in operating income and made an operating profit before depreciation (EBITDA) of NOK 37.4 (80.4) million. Operating profit (EBIT) was NOK 23.2 (62.8) million and profit/loss before tax came to NOK -11.7 (56.7) million.

Operating results declined compared with the second quarter of 2014, impacted by significantly lower sales volumes for Mobile Pipeline™ solutions. Results were also impacted by the continued weak demand for light-duty vehicles in Europe. These effects were somewhat mitigated by continued strong sales volumes in the heavy-duty truck market in North America and transit bus markets in North America and Europe which reached record levels for a consecutive quarter, despite continued low oil prices. In addition, extraordinary costs related to the bond buy-back and refinancing had a negative impact on other financial items for the quarter. The full impact of savings in interest cost, following the refinancing, will take effect in the following quarters.

The first half year of 2015 provided an operating income of NOK 815.5 (804.7) million and had an operating profit before depreciation (EBITDA) of NOK 90.2 (165.6) million. The operating profit (EBIT) was NOK 62.7 (129.9) million and profit before tax for continuing operations was NOK 41.6 (114.2) million.

* All numbers in parentheses refer to the comparative figures for the same period last year.

Key developments:

• Soft Mobile Pipeline™ sales
• A consecutive record delivery performance in the quarter for Heavy-duty vehicles
• Good capacity utilization in the Low-Pressure Cylinders segment, but slightly down from second quarter 2014
• Continued positive overall impacts of USD currency developments compared to same period last year.

Other important events in the half-year reported previously:

• Executed early redemption of NOK 300 million bond • Secured financing facilities in a "club-deal" which extended financing capacity from NOK 685 million to NOK 1 billion on
• an unsecured basis • Dividend of NOK 0.62 per share was paid on 7th May 2015.

NOK 1 000 EXCEPT PER SHARE DATA	30.06.2015	30.06.2014	PERCENT CHANGE	Q2 2015	Q2 2014	PERCENT CHANGE
GROUP RESULTS
Operating income	815.5	804.7	1%	413.9	394.2	5%
Operating profit before depreciation (EBITDA)	90.2	165.6	-46%	37.4	80.4	-53%
Operating profit (EBIT)	62.7	129.9	-52%	23.2	62.8	-63%
Profit before tax from continuing operations	41.6	114.2	-64%	-11.7	56.7	-121%
SEGMENT RESULTS
HIGH-PRESSURE CYLINDERS CNG & CHG
Operating income	584.4	530.2	10%	285.0	263.5	8%
EBITDA	44.5	109.4	-59%	10.3	55.4	81%
EBIT	23.0	94.7	-76%	-0.9	47.7	-102%
LOW-PRESSURE CYLINDERS LPG
Operating income	234.5	279.3	-16%	130.4	132.8	-2%
EBITDA	46.8	73.3	-36%	26.5	31.7	-16%
EBIT	41.3	53.6	-23%	23.8	22.4	6%

SEGMENT RESULTS

HIGH-PRESSURE CYLINDERS CNG AND CHG

HEXAGON LINCOLN AND HEXAGON RAUFOSS

Hexagon Composites is the global market leader in high-pressure composite cylinders for compressed natural gas (CNG) and compressed hydrogen gas (CHG).

Turnover and markets

Operating income for the High-Pressure Cylinders segment increased 8.2% to NOK 285.0 (263.5) million in the second quarter of 2015 compared with second quarter 2014. Developments in operating results were primarily driven by weak sales volumes for Mobile Pipeline™ solutions partly offset by strong sales to the heavy-duty truck and transit bus market in the period. Operating results were impacted by positive currency effects from the USD. First half-year sales were NOK 584.4 million, compared with NOK 530.2 million for the same period last year.

Sales volumes in the heavy-duty truck markets continued at record levels driven by sales of our new, large 27-inch diameter, CNG fuel cylinders and renewed orders from existing major customers. Order backlog continued to be at satisfactory levels despite the relatively low diesel prices. Several factors contributed to the continued good performance of this sector in North America. The stability of CNG prices remains attractive compared to relatively volatile diesel prices. Ongoing, long-term strategic investments by ourselves and other industry players continue to increase the attractiveness of our products and solutions in the market place. These include strategic alliances between fuel-system providers, fuel station infrastructure owners and truck manufacturers that effectively reduce investment and operating costs for truck owners, reduce their payback times and improve products and services overall. Demand for CNG powered transit buses in Europe also continued to be strong in the quarter.

Sales volumes for Mobile Pipeline™ declined significantly compared with the second quarter of the previous year mainly due to factors impacting the North and Latin American markets. There is significantly lower investment in the oil and gas sector in North America where demand is driven by the large energy requirements of high horse power applications such as fuel for fracking installations and drilling rigs. In Latin America weak economic developments and uncertainties have delayed project investment decisions. These developments have resulted in a reduction in order backlog during the quarter while awaiting conclusions on several large projects in both regions.

However, the Group continues to expect significant growth opportunities in this market, due to the economic and environmental benefits of CNG as an alternative fuel for industry and transportation. Mobile Pipeline™ solutions entail relatively low capex in comparison with conventional pipelines, cause no visual environmental concerns and can be deployed within weeks. The Company is increasing its efforts to communicate the potential for our solutions, particularly in North America.

Orders for the European light-duty vehicle market remained weak, as expected, in the second quarter. Short-term measures have been implemented to reduce operating costs. Structural measures will be implemented in the third quarter.

The High-Pressure organization has significantly strengthened its hydrogen related operations and continues to work with numerous partners on developing its position within fuel storage and transportation solutions. The Company expects increased momentum over the next quarters in this potentially strong growth market.

Production

Capacity utilization within Hexagon Lincoln has been good in the quarter, but some production challenges have been experienced with new product configurations resulting in a higher than normal scrap rate.

Profit/loss

EBIT for the High-Pressure Cylinders segment declined to NOK -0.9 (47.7) million compared with the second quarter of the previous year mainly due to low Mobile Pipeline™ sales but also influenced by product mix and losses generated in the European Light-duty vehicle business unit. Higher planned costs related to business development, innovation and improvement programs also had a negative impact on results for the quarter.

In 2015 corporate cost allocations were revised to better reflect the services provided to the business areas. This has increased cost for the High-Pressure Cylinders segment by approximately NOK 4.9 million per quarter. EBIT for the European Light-duty vehicle business unit was further impacted by one-off items with a negative impact of NOK 3.3 million compared to the same quarter last year.

Operating profit (EBIT) for the first half-year of 2015 was NOK 23.0 (94.7) million.

LOW-PRESSURE CYLINDERS LPG

HEXAGON RAGASCO

Hexagon Composites is the global market leader in composite cylinders for propane (LPG).

Turnover and markets

Operating income for the Low-Pressure Cylinders segment decreased 1.8% to NOK 130.4 (132.8) million in the second quarter of 2015 compared with second quarter 2014. First halfyear sales were NOK 234.5 million, compared with NOK 279.3 million for the same period last year.

Hexagon Ragasco's introduction into the Italian market has proven successful. Market developments in Africa also showed positive developments during the quarter.

Despite numerous encouraging market responses, volumes for the year will not reach the record levels achieved in 2014. Initiatives aimed at developing recurring sales both within and outside of the European market are being further intensified.

Production

Capacity utilization was good during the quarter, although slightly lower than the same quarter of last year.

Profit/loss

EBIT for the Low-Pressure Cylinders segment increased to NOK 23.8 (22.4) million in the second quarter. Reduced depreciation charges offset the impacts of both the slightly lower sales volumes and increases in corporate allocations of approximately NOK 1.7 million per quarter.

Operating profit (EBIT) of the first half-year of 2015 was NOK 41.3 (53.6) million.

THE GROUP

Hexagon Composites ASA had a net loss after tax of NOK -8.2 (38.9) million in the second quarter after net negative foreign exchange effects amounting to NOK 3.7 million, charges relating to the bond buy-back premium of NOK 21 million and other one-off non-cash charges of approximately NOK 7 million. All these effects are included in other financial items (net).

In general, a strong USD relative to NOK has a positive impact on Group equity due to our US operations. For our European business, a strong EUR and USD relative to NOK has a positive impact on our operating results since export sales are primarily invoiced in EUR or USD while our cost base is primarily in NOK.

At quarter-end the statement of financial position totaled NOK 1 182.2 million (956.3), the Group's equity ratio was 38.2 % (40.7) and the unused credit facility was NOK 603.6 million (421.1). A dividend of NOK 81.9 million was paid in the period and distributed out of equity.

The first half-year operating income was NOK 815.5 (804.7) million and operating profit before depreciation (EBITDA) was NOK 90.2 (165.6) million. The corresponding operating profit (EBIT) was NOK 62.7 (129.9) million and profit before tax for continuing operations was NOK 41.6 (114.2) million. The results for the period were positively impacted by foreign exchange movements, versus the same period last year, by NOK 18 million.

The Board noted the negative impact to profitability of the Group primarily as a result of reduced sales volumes during the quarter for Mobile Pipeline™ solutions. The Board also acknowledges the continued losses generated in the European Lightduty vehicles division and supports the initiatives taken to reverse this situation.

AFTER BALANCE SHEET DATE

There have been no significant events after the balance sheet date.

OUTLOOK

Despite disappointing short term results, the Board expects that Hexagon Composites will continue to develop its strong market positions. The Group has strengthened its organization substantially during 2014, and the Board believes the Company is well positioned to pursue attractive business opportunities and achieve its long term growth ambitions.

Key focus areas in 2015 continue to be:

• The development of the Mobile Pipeline™ market opportunities
• Realizing the many market opportunities within Low-Pressure Cylinders
• Increasing investment in product innovation to leverage the Company's competitive advantages.

The third quarter is expected to be solid for Heavy-duty CNG applications while deliveries of Mobile Pipeline™ solutions will remain low. Volumes for Low-Pressure Cylinders are expected to be lower than first and second quarter levels. In total, the third quarter is expected to be weak.

Although the growth rate has declined in 2015 and uncertainty continues regarding the direct and indirect impacts of lower oil and diesel prices, the Group continues to expect significant future year over year growth over the next five years, resuming in 2016. This growth is expected to come from executing initiatives relating to the key focus areas discussed above and in doing so, realizing the longer-term potential of natural gas and hydrogen as competitive, price-stable and abundant global fuel alternatives.

RISKS AND UNCERTAINTIES

The Hexagon Composites Group is active in sales and purchasing in a large number of 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 to mitigate the exposure to these risks. Total equity 487 109 348 564 NON-CURRENT LIABILITIES Non-current interest-bearing liabilities 6,20,23 297 243 446 466 Interest and currency derivatives 24 7 334 4 247 Pension liabilities 18 3 374 1 932

There are no major changes to the risk composition for the Group compared with that reported for 2014. As mentioned above, uncertainty continues regarding the direct and indirect impacts of movements in oil and diesel prices, and to what extent this impacts the business. Total non-current liabilities 333 815 466 663 CURRENT LIABILITIES Short-term loans 6,16,21,23 0 0 Trade payables and other current liabilities 22,24,26 301 941 211 897

For additional information about risks and uncertainties we refer to Hexagon Composites' 2014 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. Provisions 19 27 200 21 943 Total current liabilities 358 691 241 844 Liabilities directly associated with assets held for sale 0 80 275

STATEMENT FROM THE BOARD AND CEO Other equity 383 338 244 782 Total other equity 383 338 244 782

To the best of our knowledge, we confirm that:

• the consolidated financial statements for the period 1 January to 30 June 2015, 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 Deferred tax liabilities 7 25 863 14 018
• 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. Income tax payable 7 29 551 8 003

Oslo, 12 August 2015 The Board of Directors of Hexagon Composites ASA

Knut Flakk Chairman

May Britt Myhr Board Member

Kristine Landmark Deputy Chair

Tom Vidar Rygh Board Member

Sverre Narvesen Board Member

Jon Erik Engeset Group President

FINANCIAL STATEMENTS GROUP

INCOME STATEMENT	30.06.2015	Q2 2015	30.06.2014	Q2 2014	31.12.2014
(NOK 1 000)	Unaudited	Unaudited	Unaudited	Unaudited	Audited
Operating income	815 528	413 892	804 696	394 167	1 650 829
Cost of materials	430 475	238 351	394 348	190 728	812 026
Payroll and social security expenses	205 474	103 595	154 543	78 030	321 407
Other operating expenses	89 350	34 573	90 245	44 960	188 245
Total operating expenses before depreciation	725 300	376 518	639 135	313 718	1 321 678
Operating profit before depreciation (EBITDA)	90 227	37 373	165 561	80 449	329 151
Depreciation and impairment	27 523	14 195	35 616	17 623	72 363
Operating profit (EBIT)	62 704	23 178	129 945	62 825	256 788
Profit/loss from investments in associates and joint ventures	-135	-23	-1 792	-1 036	-9 554
Other financial items (net)	- 20 976	-34 813	-13 932	-5 041	-9 815
Profit/loss before tax	41 594	-11 657	114 221	56 748	237 419
Tax	-12 170	3 473	-36 816	-17 866	-77 072
Profit/loss from continuing operations	29 424	-8 184	77 404	38 882	160 347
Profit/loss for discontinued operations	0	0	4 855	0	4 325
Profit/loss after tax	29 424	-8 184	82 260	38 882	164 672
Earnings per share	0.22		0.62		1.24
Diluted earnings per share	0.23		0.62		1.24
Earnings per share for continuing operations	0.22		0.58		1.21
Diluted earnings per share for continuing operations	0.23		0.58		1.21

COMPREHENSIVE INCOME STATEMENT	30.06.2015	30.06.2014	31.12.2014
(NOK 1 000)
Profit/loss after tax	29 424	82 260	164 672
OTHER COMPREHENSIVE INCOME TO BE RECLASSIFIED TO PROFIT OR LOSS IN SUBSEQUENT PERIODS
Exchange differences arising from the translation of foreign operations	15 243	792	46 581
Fair value adjustments for cash flow hedging instruments	4 629	1 750	-382
Income tax effect of fair value adjustments for cash flow hedging instruments	-1 250	-472	103
Net other comprehensive income to be reclassified to profit or loss in subsequent periods	18 622	2 069	46 302
OTHER COMPREHENSIVE INCOME NOT TO BE RECLASSIFIED TO PROFIT OR LOSS IN SUBSEQUENT PERIODS
Actuarial gains/losses for the period	0	0	-2 314
Income tax effect of actuarial gains/losses for the period	0	0	625
Net other comprehensive income not to be reclassified to profit or loss in subsequent periods	0	0	-1 689
Total comprehensive income, net of tax	48 046	84 329	209 285

STATEMENT OF FINANCIAL POSITION	30.06.2015	30.06.2014	31.12.2014
(NOK 1 000)	Unaudited	Unaudited	Audited
ASSETS
Intangible assets	102 350	92 700	107 085
Tangible fixed assets	333 336	239 847	294 462
Other financial fixed assets	9 470	5 705	4 852
Total non-current assets	445 157	338 253	406 399
Inventories	347 556	249 056	320 468
Receivables	289 442	200 077	250 570
Bank deposits, cash and similar	100 012	168 912	202 179
Total current assets	737 011	618 045	773 216
Total assets	1 182 168	956 298	1 179 615
EQUITY AND LIABILITIES
Paid-in capital	104 508	103 257	103 770
Other equity	347 451	285 529	383 338
Total equity	451 959	388 786	487 109
Provisions	36 013	18 512	36 571
Interest-bearing long-term liabilities	382 320	296 903	297 243
Total non-current liabilities	418 333	315 416	333 815
Interest-bearing short-term liabilities	8 711	0	0
Other current liabilities	303 165	252 096	358 691
Total current liabilities	311 876	252 096	358 691
Total liabilities	730 209	567 512	692 506
Total equity and liabilities	1 182 168	956 298	1 179 615

* Net booked value from investment in Rugasco LLC TNOK - 10 575 is classified as other current liabilities. Correspondingly figures 31.12.2014 was TNOK - 10 440 and 30.06.2014 TNOK - 1 765.

CONDENSED CASH FLOW STATEMENT	30.06.2015	30.06.2014	31.12.2014
(NOK 1 000)
Profit before tax	41 594	114 221	237 419
Depreciation and write-downs	27 523	35 616	72 363
Change in net working capital	-104 446	-100 948	-133 874
Net cash flow from operations	-35 329	48 889	175 908
Net cash flow from investment activities	-53 079	77 934	4 670
Net cash flow from financing activities	-20 211	-207 205	-246 060
Net change in cash and cash equivalents	-108 620	-80 382	-65 482
Net currency exchange differences	6 453	991	19 358
Cash and cash equivalents at start of period	202 179	248 303	248 303
Cash and cash equivalents at end of period	100 012	168 912	202 179
Available unused credit facility	603 472	421 142	390 783

* Cash effect regarding sale of Hexagon Devold AS TNOK 115 000 in January 2014 is included in net cash flow from investment activities.

				OTHER
CONDENSED STATEMENT OF CHANGES IN EQUITY	SHARE CAPITAL	OWN SHARES	SHARE PREMIUM	PAID IN CAPITAL	HEDGING RESERVE	OTHER EQUITY	TOTAL
(NOK 1 000)
Balance 01.01.2014	13 329	-106	82 955	7 602	-3 100	247 883	348 564
Profit/loss after tax						82 260	82 260
Other income and expenses					1 277	792	2 069
Dividends						-43 967	-43 967
Movement in own shares etc.		-524				384	-139
Balance 30.06.2014	13 329	-629	82 955	7 602	-1 823	287 352	388 786
Balance 01.01.2014	13 329	-106	82 955	7 602	-3 100	247 883	348 564
Profit/loss after tax						164 672	164 672
Other income and expenses					-279	44 892	44 612
Dividends						-43 967	-43 967
Movement in own shares etc.		-11				-26 762	-26 773
Balance 31.12.2014	13 329	-117	82 955	7 602	-3 379	386 718	487 109
Balance 01.01.2015	13 329	-117	82 955	7 602	-3 379	386 718	487 109
Profit/loss after tax						29 424	29 424
Other income and expenses					3 379	15 243	18 622
Dividends						-81 920	-81 920
Share-based payment				738			738
Movement in own shares etc.						-2 014	-2 014
Balance 30.06.2015	13 329	-117	82 955	8 340	0	347 451	451 959

BUSINESS SEGMENT DATA	30.06.2015	Q2 2015	30.06.2014	Q2 2014	31.12.2014
(NOK 1 000)	Unaudited	Unaudited	Unaudited	Unaudited	Audited
HIGH-PRESSURE CYLINDERS CNG AND CHG
Operating income external customers	583 775	284 432	529 545	263 377	1 097 625
Internal transactions	600	549	618	77	712
Total operating income	584 375	284 981	530 163	263 454	1 098 337
Segment operating profit before depreciation (EBITDA)	44 489	10 284	109 395	55 433	216 295
Segment operating profit (EBIT)	23 001	-904	94 680	47 675	183 940
Segment assets	889 025		649 785		886 975
Segment liabilities	480 291		348 598		508 060
LOW-PRESSURE CYLINDERS LPG
Operating income external customers	231 140	128 873	275 160	130 792	551 082
Internal transactions	3 347	1 570	4 181	2 014	8 009
Total operating income	234 487	130 443	279 341	132 806	559 092
Segment operating profit before depreciation (EBITDA)	46 835	26 484	73 301	31 712	138 537
Segment operating profit (EBIT)	41 293	23 771	53 587	22 439	99 133
Segment assets	337 812		358 135		436 156
Segment liabilities	213 792		236 438		345 044

NOTES

NOTE 1: INTRODUCTION

The condensed consolidated interim financial statements for 1st half-year 2015, which ended 30 June 2015, comprise Hexagon Composites ASA and its subsidiaries (together referred to as "the Group").

These condensed consolidated interim financial statements have been prepared in accordance with International Financial Reporting Standard (IFRS), 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 31st December 2014.

The accounting principles used in the preparation of these interim accounts are the same as those applied to the consolidated financial statements for 2014. For a more detailed description of accounting principles see the consolidated financial statements for 2014.

These condensed consolidated interim financial statements were approved by the Board of Directors on 12th August 2015.

NOTE 2: INTEREST-BEARING DEBT

The following shows material changes in interest-bearing debt during 2015:

AMOUNTS IN NOK THOUSAND LONG-TERM SHORT-TERM TOTAL INTEREST-BEARING DEBT Balance 01.01.2015 297 243 0 297 243 Unsecured bank loans 0 0 0 Bond HEX 02 185 0 185 Other 0 0 0 Balance 31.03.2015 297 428 0 297 428 Unsecured bank loans 382 320 8 711 391 031 Bond HEX 02 -297 428 0 -297 428 Other 0 0 0

Balance 30.06.2015 382 320 8 711 397 031

On the 24th April 2015 the Company settled the NOK 300 million bond loan ISIN NO 0010683717 2013/2018. The buyback premium was NOK 21 million.

The Company has secured extended financing facilities from Skandinaviska Enskilda Banken AB and DNB Bank ASA in a club deal which extended financing capacity from NOK 685 million, to NOK 1 billion on an unsecured basis. The new five year facility incorporates a revolving credit facility for up to NOK 685 million as well as a term-loan facility for up to NOK 315 million.

Accounting effects of the refinancing were:

• The buyback premium was NOK 21 million and is realised in the profit and loss (as a finance cost).
• The amortised cost previously recognized in the balance sheet of NOK 2.6 million was realised in the profit and loss (as a finance cost).
• The interest rate swap related to the bond loan of NOK 100 million no longer met all the criteria according to IAS 39 to be effective as a hedging instrument direct to equity after the repayment of the loan. Therefore the booked value of the hedging instrument of NOK 4.6 million (before tax effects) was reversed out of total comprehensive income and included in profit and loss (as a finance cost).

NOTE 3: COVENANTS

Financial covenants related to the new loan are:

• NIBD/EBITDA < 3.0 ¹ )
• Equity ratio at least 30% ²
• Other than maintaining the above covenant requirements, there are no covenants restricting the level of dividend payment
• 1) Net Interest Bearing Debt / Rolling Earnings Before Interest, Tax, Depreciation and Amortization for the last 12 months

)

2) Total Equity / Total Assets

	30.06.2015
NIBD/EBITDA	1.2
Total Equity / Total Assets	38.2%

NOTE 4: 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 for 2014.

Hexagon Ragasco has reassessed the useful lifetime of their production line and concluded that the lifetime is longer than the previous depreciation rate implied. The new estimated residual lifetime affects the depreciation cost as from the beginning of 2015. Without this correction the depreciation cost during the first half year would have been approximately NOK 6.9 million higher. The effect for the second quarter is approximately NOK 2.8 million.

NOTE 5: SHARED BASED PAYMENTS

On the 3rd of March 2015 Hexagon Composites ASA issued 975,000 call options to senior executives and managers in the Group.

The share options give rights to buy shares in Hexagon Composites ASA at NOK 25 per share. The options may be exercised in part or in full within three weeks following the official announcement of the financial results for the fourth quarter of 2017, first quarter of 2018 or second quarter of 2018. The fair value of the options was calculated on the grant date, based on the Black-Scholes model, and the cost is recognized over the service period. Cost associated with the share option scheme were NOK 738 thousand the first half year. The cost in second quarter were NOK 562 thousand. The fair value of all options granted is estimated to NOK 6.5 million per 30th June 2015.

NOTE 6: EVENTS AFTER THE BALANCE SHEET DATE

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

KEY FIGURES GROUP

KEY FIGURES GROUP	30.06.2015	30.06.2014	31.12.2014
EBITDA in % of operating income	11.1 %	20.6 %	19.9 %
EBIT in % of operating income	7.7 %	16.1 %	15.6 %
EBITDA (rolling last 4 quarters) / Capital Employed %	29.9 %	37.2 %	42.0 %
EBIT (rolling last 4 quarters) / Capital Employed %	22.3 %	27.1 %	32.7 %
Net working capital / Operating income (rolling last 4 quarters) %	26.2 %	18.9 %	20.5 %
Interest coverage I 1)	4.6	9.0	10.2
Interest coverage II 2)	11.9	10.5	14.3
NIBD / EBITDA (rolling last 4 quarters)	1.2	0.5	0.3
Equity ratio	38.2 %	40.7 %	41.3 %
Equity / Capital employed	53.3 %	56.7 %	62.1 %
Return on equity (annualised)	12.5 %	44.6 %	39.4 %
Total return (annualised)	9.0 %	25.6 %	23.3 %
Liquidity ratio I	2.4	2.5	2.2
Liquidity reserve 3)	703 484	590 054	592 962
Liquidity reserve 3) / Operating income (rolling last 4 quarters) %	42.3 %	40.7 %	35.9 %
Earnings per share	0.22	0.62	1.24
Diluted earnings per share	0.23	0.62	1.24
Cash flow from operations per share	-0.27	0.37	1.47
Equity per share	3.39	2.92	3.65

1) (Profit before tax + interest expenses) / Interest expenses

2) Rolling Earnings Before Interest, Tax, Depreciation and Amortization the last 12 months to rolling Net Interest Costs

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

KEY FIGURES SEGMENTS

KEY FIGURES SEGMENTS	30.06.2015	30.06.2014	31.12.2014
HIGH-PRESSURE CYLINDERS CNG & CHG
EBITDA in % of operating income	7.6 %	20.6 %	19.7 %
EBIT in % of operating income	3.9 %	17.9 %	16.7 %
EBITDA (rolling last 4 quarters) / Capital Employed %	22.7 %	39.9 %	32.6 %
EBIT (rolling last 4 quarters) / Capital Employed %	16.8 %	32.7 %	27.7 %
Capital employed / Operating income (rolling last 4 quarters)	0.58	0.47	0.60
LOW-PRESSURE CYLINDERS LPG
EBITDA in % of operating income	20.0 %	26.2 %	24.8 %
EBIT in % of operating income	17.6 %	19.2 %	17.7 %
EBITDA (rolling last 4 quarters) / Capital Employed %	46.4 %	36.0 %	46.4 %
EBIT (rolling last 4 quarters) / Capital Employed %	36.0 %	22.7 %	33.2 %
Capital employed / Operating income (rolling last 4 quarters)	0.47	0.72	0.53

SHAREHOLDER INFORMATION

A total of 20,250,925 (35,835,873) shares in Hexagon Composites ASA (HEX.OL) were traded on Oslo Børs (OSE) during second quarter 2015. The total number of shares in Hexagon Composites ASA at 30 June 2015 was 133,294,868 (par value NOK 0.10). During the quarter, the share price moved between NOK 21.30 and NOK 27.30, ending the quarter on NOK 25.90. The price at 30 June gives a market capitalization of NOK 3,452.3 million for the Company.

20 LARGEST SHAREHOLDERS PER 12 AUGUST 2015	NUMBER OF SHARES	SHARE OF 20 LARGEST	SHARE OF TOTAL	TYPE	COUNTRY
Flakk Holding AS	36 615 988	37.24 %	27.47 %	COMP	NOR
MP Pensjon PK	12 267 614	12.48 %	9.20 %	COMP	NOR
Bøckmann Holding AS	10 000 000	10.17 %	7.50 %	COMP	NOR
Nødingen AS	7 300 000	7.42 %	5.48 %	COMP	NOR
JPMCBNACLT Swedbank Småbolagsfondnorden	5 624 346	5.72 %	4.22 %	COMP	SWE
Skandinaviska Enskilda (publ) Oslofilialen	4 414 529	4.49 %	3.31 %	COMP	NOR
DNB Markets, AKS DNB Bank ASA	3 820 810	3.89 %	2.87 %	COMP	NOR
JP Morgan Chase Bank Handelsbanken Nordic	3 101 192	3.15 %	2.33 %	NOM	SWE
JP Morgan Chase Bank S/A Escrow account	1 996 660	2.03 %	1.50 %	NOM	GBR
Thread - Pan Eur Sma c/o Citibank NA	1 804 197	1.84 %	1.35 %	COMP	GBR
Thread - European SM c/o Citibank NA	1 775 721	1.81 %	1.33 %	COMP	GBR
JP Morgan Chase Bank Special Treaty L.	1 267 973	1.29 %	0.95 %	NOM	GBR
Citibank, N.A S/A National Financing Services	1 253 582	1.27 %	0.94 %	NOM	USA
Hexagon Composites ASA	1 166 075	1.19 %	0.87 %	COMP	NOR
Verdipapirfondet DNB	1 100 000	1.12 %	0.83 %	COMP	NOR
Odin Norge	1 012 702	1.03 %	0.76 %	COMP	NOR
Flakk Invest AS	1 000 000	1.02 %	0.75 %	COMP	NOR
Citibank, N.A S/A 400 Series Funds	991 999	1.01 %	0.74 %	NOM	KWT
Verdipapirfondet Eik	907 925	0.92 %	0.68 %	COMP	NOR
Flydal Lars Ivar	900 000	0.92 %	0.68 %	PRIV	NOR
Total 20 largest shareholders	98 321 313	100.00 %	73.76 %
Remaining	34 973 555		26.24 %
Total	133 294 868		100.00 %

HEXAGON COMPOSITES ASA Korsegata 4B, P. O. Box 836 Sentrum, N0-6001 Ålesund, Norway. Phone: +47 70 30 44 50, office@hexagon.no, www.hexagon.no