Hexagon Composites — Interim / Quarterly Report 2022

May 10, 2022

Key figures

(NOK million)	Q1 2022	Q1 2021	Percent change	FY 2021
Revenue	159	52	209 %	508
Operating profit before depreciation (EBITDA)	-93	-62	n/a	-272
Operating profit (EBIT)	-115	-70	n/a	-325
Profit before tax	-119	-104	n/a	-347
Profit after tax (before discontinued operations)	-118	-105	n/a	-345
Profit from discontinued operations, after tax	0	1	n/a	-9
Profit for the period	-118	-104	n/a	-354

Highlights of Q1 2022

• Revenue grew 209 % year over year to NOK 159 million, including NOK 107 million contribution from Wystrach. Organic revenue on a standalone basis (i.e., as if Wystrach were an external customer in Q1 2022) was NOK 84 million, representing organic year-over-year growth of approximately 63%.
• Signed a long-term binding letter of intent with Hino Motors Manufacturing U.S. and nominated by another leading, established commercial truck OEM to provide battery systems for serial production planned from 2024
• Signed investment agreements together with JV partner CIMC Enric for construction of a joint production facility in Shijiazhuang and New Energy R&D management center in Beijing Daxing District International Hydrogen Development Zone
• Successfully completed a private placement resulting in gross proceeds of NOK 600 million

The Hexagon Purus Group

Unless otherwise stated, the income statements for the periods in 2021 and the balance sheet as of 31 of December 2021 presented in this document relate to Hexagon Purus' e-mobility business. The results of Hexagon Purus' Compressed Natural Gas Light Duty Vehicle (CNG LDV) business in 2021 are reported as discontinued operations following the successful spin-off of Hexagon Purus from the Hexagon Composites ASA group and the transfer of Hexagon Purus' CNG LDV business to new entities under the ownershipof Hexagon Composites ASA which was completed on 1 of October 2021.

In the first quarter of 2022, Hexagon Purus Group ("the Company") generated NOK 159 (52) million in revenue and recorded operating profit before depreciation (EBITDA) of NOK -93 (-62) million. Revenue growth of 209 % was driven primarily by continued strength in hydrogen distribution as well as the acquisition of Wystrach which contributed NOK 107 million in sales and NOK 7.7 million in EBITDA.

Continued investments in personnel and infrastructure to support and accelerate Hexagon Purus' future growth drive negative profitability.

Hexagon Purus recorded a profit after tax (before profit from discontinued operations) of NOK -118 (-105) million in the first quarter of 2022. Net financial items were NOK -3 (-33) million driven by a reduction in interest on intercompany debt positions and foreign exchange fluctuations. Tax items were NOK -1 (0) million.

At quarter-end, the balance sheet amounted to NOK 2 526 (2 061) million and the Group's equity ratio was 74,1 %.

73 confirmed cases of COVID-19 infection were reported among Hexagon Purus personnel in 2021, all of whom have recovered or are recovering. All production facilities have remained open and only marginally affected during the quarter. For more detail on the Company's risks, responses, impacts and resilience in relation to the COVID-19 pandemic, please refer to the Outlook section of this report.

Key developments

• Signed a long-term binding letter of intent (BLOI) with Hino Motors Manufacturing U.S. to provide battery packs for multiple Hino truck platforms with serial production planned from 2024. The potential total sales value over the life of the BLOI is estimated at USD 1 billion
• Nominated by a leading and long-standing commercial truck OEM to provide battery packs for serial production of battery electric heavy-duty vehicles between 2024 and 2027, with an option to extend until 2029. The potential total sales value for the initial period from 2024-2027 is estimated at approximately USD 800 million, increasing to approximately USD 1.2 billion if the extension option is exercised
• Signed investment agreements together with CIMC Enric to establish a joint production facility in Shijiazhuang, Hebei and the CIMC-Hexagon New Energy Technologies management office and engineering hub in Beijing Daxing District International Hydrogen Development Zone. In addition, the Shijiazhuang and Beijing Daxing governments have made a strong commitment to support the development of the CIMC-HEXAGON business in their regions through 2030.
• Successfully completed a private placement resulting in NOK 600 million of gross proceeds
• Selected to work together with BMW, Robert Bosch and TesTneT Engineering to develop an innovative hydrogen storage system solution for future fuel cell passenger cars
• Selected as partner for the second year in a row by New Flyer, North America's largest mass mobility solutions provider. Hexagon Purus will supply high-pressure hydrogen storage cylinders for New Flyer's zero emission Xcelsior CHARGE H2 (TM) hydrogen fuel cell electric transit buses in 2022. Total contract value is approximately USD 2 million.
• Received inaugural order for high-pressure hydrogen fuel systems from a Polish bus OEM for serial production of fuel cell transit buses
• Received orders worth approximately EUR 7.2 million for hydrogen distribution systems from various customers
• Signed a 10-year lease for a new 60,000 square foot facility in Westminister, USA for cylinder manufacturing and engineering, expected to be ready for move in the second half of 2022

Regarding the situation in Ukraine and Russia

The Russian invasion of Ukraine and its outfall and consequences are at the time of preparing the financial statement difficult to assess and predict. However, given the Group's relatively limited investments and market activities in Russia and Ukraine and their surrounding areas, the management does not assess this event to have a significant effect on the reported figures as of March 31, 2022.

Key developments after balance sheet date

• Entered into an agreement to acquire 40% of Cryoshelter's liquid hydrogen business. The transaction is in conjunction with Hexagon Composites' acquisition of a 40% stake in Cryoshelter's liquid natural gas (LNG) 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 could potentially result in a future complementary offering to Hexagon Purus's market leading compressed hydrogen cylinder technology
• Received an order worth EUR 1.5 million for hydrogen distribution systems from a leading global industrial gas company
• Signed a 15-year lease for a new hydrogen cylinder production and office facility in Kassel, Germany, expected to be ready for move in the second half of 2023
• CIMC-HEXAGON signed a Memorandum of Understanding with Bravo Transport Services to develop hydrogen storage cylinder systems for hydrogen fuel-cell double decker buses in Hong Kong. The initial scope of the MoU is for CIMC-HEXAGON to provide a Type 4 hydrogen storage cylinder system for the first fuel-cell double decker bus in Hong Kong with scheduled delivery in July 2022
• Hexagon Purus Maritime, a wholly owned subsidiary of Hexagon Purus, has received its inaugural order for cylinders to be used in onboard storage of hydrogen in maritime vessels with scheduled delivery in Q4 2022
• There have been no other significant events after the balance sheet date that have not already been disclosed in this report

Outlook

Hexagon Purus' revenue growth in the near-term continues to be driven by early adopter applications of hydrogen, primarily hydrogen distribution and fuel cell transit bus.

The acquisition of Wystrach GmbH has brought many benefits to Hexagon Purus including an expanded product portfolio, a recurring base business, vertical integration into systems design and manufacturing, and increased exposure to new hydrogen infrastructure applications including mobile refueling and stationary storage solutions.

Sales cycles in the automotive space can be long and highly engineering intensive. Hexagon Purus has recently experienced significant commercial traction with its battery system offerings with two OEMs – one, a binding letter of intent with Hino Motors and the other, a nomination by an established and longstanding OEM for serial production starting in 2024. The combined revenue potential with both OEMs is estimated at USD 1.8-2.2 billion over the next several years. This is in addition to the long-term hydrogen cylinder supply agreement previously signed with Nikola Motors for their flagship Nikola TRE fuel cell electric truck. As such, while revenue contribution from heavy-duty vehicle applications has been relatively low in recent quarters, development work and project activity in this key application remain high. It is expected that revenue contribution from this application will grow in the coming years as battery and fuel cell electric vehicle platforms transition to commercial start of production.

Hexagon Purus is closely monitoring the COVID-19 situation and has prepared contingency plans at each site. The pandemic, together with the ongoing Russia-Ukraine conflict, has made global supply chains more uncertain and continues to extend the lead times for certain components, including high pressure flow components, wire harness assemblies and battery cells. It is not possible to accurately predict the final outcome of these events or precisely when supply chains will normalize, but the Company will remain vigilant and committed to employing further counter measures to mitigate such effects.

With several growth initiatives underway, including building organizational capabilities and production capacity to support customer launch activity as well as expected market demand in the coming years in North America, Europe and Asia, Hexagon Purus is in the investment phase of its development.

Such investments are expected to impact profitability over the near-to-medium term.

2022 revenue is expected to grow approximately 75% based on strong backlog and order trends; EBITDA losses are expected to widen by 50%.

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.

Risks and uncertainties

Hexagon Purus Group operates in markets with strict standards for quality and delivery, deviations from which could result in significant additional costs, lost sales and damage to the Group's reputation. The Group is exposed to production related risks such as production errors or shutdowns of its facilities which could have a material adverse effect on the Group's results of operations, cash flow and financial condition.

The Group is exposed to competing technologies and processes that could have a negative effect on the Group's competitive positioning, and in turn profitability and financial position.

The Group is exposed to developments in the prices of its raw materials and in particular the cost of carbon fiber and lithium-ion batteries. The prices of these raw materials are linked to various factors including developments in the price of oil, precursor commodities and energy and the prevailing market balance where supply is dependent on a limited number of suppliers.

The Group's products are subject to governmental laws and regulations, including regulations relating to quality, health and safety. The Group manufactures its products in accordance with, and its products are subject to inspection standards pursuant to, applicable regulation and requisite approvals. However, the Group cannot predict the future costs of complying with applicable regulations, standards and permits as these develop. Adoption of new laws, regulations or public requirements that impose more stringent requirements concerning the safety aspects of Hexagon Purus' products could result in increase of compliance expenditure, suspension of production, product recalls or claims from third parties, which in each case could have a material adverse effect

on the Group's business, financial position, results of operations and cash flow.

To the extent the Group does not generate sufficient cash from operations to fund its existing and future business plans, the Group may need to raise additional funds through public or private debt or equity financing to execute its growth strategy and to fund capital expenditures. Adequate sources of capital funding might not be available when needed or may only be available on unfavourable terms. If funding is insufficient at any time in the future, the Group may be unable to, inter alia, fund acquisitions, take advantage of business opportunities or respond to competitive pressures, any of which could adversely

impact the Group's financial condition and results of operations.

In the Board's view there are no major changes to the risk composition for the Group compared with 2021, including those specifically concerning the COVID-19 pandemic. It is not possible to know the precise impacts to the global macro economy of the pandemic and to which extent these may or may not persist. For additional information about risks and uncertainties we refer to Hexagon Purus' 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.

Oslo, May 9, 2022

The Board of Directors of Hexagon Purus ASA

Chair Board member Board member Board member

Jon Erik Engeset Espen Gundersen Jannicke Hilland Knut Flakk

Martha Kold Bakkevig Rick Rashilla Karen Romer Morten Holum

Board member Board member Board member Group president & CEO

Condensed Financial Statements Group

Income statement

(NOK 1000)	Note	Q1 2022	Q1 2021	FY 2021
		Unaudited	Unaudited
Continuing operations (Purus e-mobility)
Revenue from contracts with customers	3,4	158 875	51 418	506 039
Other operating revenue	3,4	172	114	1 679
Total revenue		159 047	51 532	507 718
Cost of materials		65 158	28 939	324 566
Payroll and social security expenses	10	94 630	44 571	209 602
Other operating expenses		92 070	40 008	245 327
Total operating expenses before depreciation		251 858	113 518	779 495
Operating profit before depreciation (EBITDA)	4	-92 811	-61 986	-271 777
Depreciation and impairment	5,6	22 064	8 425	53 098
Operating profit (EBIT)	4	-114 875	-70 411	-324 875
Share of profit/loss from investments in associates and joint ventures		-1 349	-702	-2 957
Finance income		2 504	2 421	14 250
Finance expense	7	5 744	35 637	33 691
Profit/loss before tax from continuing operations		-119 464	-104 330	-347 273
Tax expense		-1 023	195	-2 120
Profit/loss after tax from continuing operations		-118 441	-104 526	-345 152
Discontinued operations (CNG LDV)
Profit/loss after tax for the period from discontinued operations	4	0	517	-8 552
Profit/loss after tax		-118 441	-104 008	-353 704
Earnings per share
Ordinary (NOK)		-0,46	-0,45	-1,48
Diluted (NOK)		-0,46	-0,45	-1,48
Earnings per share from continuing operations
Ordinary (NOK)		-0,46	-0,45	-1,48
Diluted (NOK)		-0,46	-0,45	-1,48

Comprehensive income statement

(NOK 1000)	Q1 2022	Q1 2021	FY 2021
	Unaudited	Unaudited
Profit/loss after tax	-118 441	-104 008	-353 704
OTHER COMPREHENVISE INCOME: Items that will be reclassified through profit or loss in subsequent periods
Exchange differences on translation of foreign operations	-21 898	4 638	-11 553
Net of total items that will be reclassified through profit and loss in subsequent periods	-21 898	4 638	-11 553
Total comprehensive income, net of tax	-140 339	-99 370	-365 257

Attributable to:

Share premium -140 339 -99 370 -365 257

Statement of financial position

ASSETS					EQUITY AND LIABILITIES
Investment in associates and joint					Interest-bearing loans and
ventures		5 675	2 064	7 024
Total non-current assets
					Other non-current financial
Inventories		324 359	93 843	261 235
					Net employee defined benefit
Trade receivables	9	138 490	44 540	220 286
Other current assets	9	69 321	31 074	80 943
Total current assets continuing
					Interest-bearing loans and
Assets held for sale		-	282 789	-

(NOK 1000)	Note	Q1 2022	Q1 2021	FY 2021	(NOK 1000)	Note	Q1 2022	Q1 2021	FY 2021
		Unaudited	Unaudited				Unaudited	Unaudited
ASSETS					EQUITY AND LIABILITIES
Property, plant, and equipment	6	304 225	84 080	267 705	Issued capital and share premium		1 882 595	1 512 986	1 407 170
Right-of-use assets	6	46 105	33 003	52 219	Other equity	10	-11 604	18 602	8 228
Intangible assets	5	737 304	397 009	752 294	Total equity		1 870 991	1 531 588	1 415 398
Investment in associates and joint					Interest-bearing loans and
ventures		5 675	2 064	7 024	borrowings	9	38 571	-	42 126
Non-current financial assets	9	5 463	1 260	2 476	Lease liabilities	7	27 139	11 732	31 794
Total non-current assets
continuing operations		1 098 771	517 417	1 081 718	Non -current provisions		4	3	7 235
					Other non-current financial
Inventories		324 359	93 843	261 235	liabilities	8,9	36 751	-	109 106
					Net employee defined benefit
Trade receivables	9	138 490	44 540	220 286	liabilities		1 975	259	1 892
Contracts assets (accrued revenue)		5 163	370	4 165	Deferred tax liabilities		48 451	10 244	52 231
					Total non-current liabilities from
Other current assets	9	69 321	31 074	80 943	continuing operations		152 891	22 239	244 384
Cash and short-term deposits	9	889 859	1 091 167	453 398	Trade and other payables	9	212 994	69 261	191 409
Total current assets continuing
operation		1 427 192	1 260 993	1 020 027	Contract liabilities		140 992	44 027	121 827
					Interest-bearing loans and
Assets held for sale		-	282 789	-	borrowings	9	3 553	179 501	13 635
Total assets	4	2 525 963	2 061 199	2 101 745	Lease liabilities, short term	7	20 357	20 599	21 285
					Income tax payable		4 146	26	8 178
					Other current financial liabilities	8,9	69 321	-	-
					Other current liabilities		36 048	48 750	72 747
					Provisions		14 671	23 029	12 882
					Total current liabilities from
					continuing operations		502 080	385 193	441 964
					Liabilities directly associated with
					the assets held for sale		-	122 179	-
					Total liabilities	4	654 972	529 612	686 347
					Total equity and liabilities		2 525 963	2 061 199	2 101 745

Cash flow statement

(NOK 1000)	Q1 2022	Q1 2021	FY 2021
	Unaudited	Unaudited
Profit before tax	-119 464	-103 813	-355 687
Depreciation, amortization, and impairment	22 064	18 038	53 098
Net interest expense	519	2 938	6 968
Changes in net working capital 1)	58 424	-55 574	-169 700
Other adjustments to operating cash flows	-34 179	-11 213	8 018
Net cash flow from operating activities	-72 635	-149 624	-457 303
Purchase of property, plant, and equipment, net of proceeds from sale	-49 488	-10 969	-107 711
Purchase and development of intangible assets	-13 050	-1 644	-37 735
Cash paid related to acquisition of subsidiary; net of cash acquired	-	-	-146 189
Investments in associated companies	-	-	-8 580
Proceeds from sale of shares in associated companies	-	-	665
Interest received	-	-	1 625
Net cash flow from investing activities	-62 538	-12 613	-297 924
Net repayment (-) / proceeds (+) from interest bearing loans	-13 637	16 228	-11 098
Interest payments	-519	-2 938	-8 593
Repayment of lease liabilities (incl. interests)	-6 042	-5 294	-18 519
Net proceeds from share capital increase	593 866	-	-
Net cash flow from financing activities	573 668	7 996	-38 210
Net change in cash and cash equivalents	438 495	-154 241	-793 437
Net currency exchange differences on cash	-2 034	-943	483
Cash and cash equivalents beginning of period	453 398	1 246 351	1 246 351
Cash and cash equivalents end of period	889 859	1 091 167	453 398

1) Net working capital refers to inventories, trade receivables, contract assets, trade payables and contract liabilities

Statement of changes in equity

(NOK 1000)	Issued capital	Share premium	Other paid-in capital	Other equity and retained earnings	Foreign currency translation reserve	Total equity
As of 1 January 2021	22 909	1 594 022	372	0	11 717	1 629 021
Profit for the period		-104 008				-104 008
Other comprehensive income					4 638	4 638
Total comprehensive income	0	-104 008	0	0	4 638	-99 370
Share-based payments			1 875			1 875
Changes in paid-in capital		63				63
As of 31 March 2021	22 909	1 490 077	2 247	0	16 355	1 531 588

				Other equity	Foreign currency
			Other paid-in	and retained	translation
	Issued capital	Share premium	capital	earnings	reserve	Total equity
As of 1 January 2021	22 909	1 594 022	372	0	11 717	1 629 021
Profit for the period		-353 704		0		-353 704
Other comprehensive income					-11 553	-11 553
Total comprehensive income	0	-353 704	0	0	11 553	-365 257
Share-based payments			7 691			7 691
Changes in paid-in capital	444	143 628				144 072
Transaction costs		-129		0		-129
As of 31 December 2021	23 354	1 383 817	8 063	0	165	1 415 398

				Other equity	Foreign currency
			Other paid-in	and retained	translation
	Issued capital	Share premium	capital	earnings	reserve	Total equity
As of 1 January 2022	23 354	1 383 817	8 063	0	165	1 415 398
Profit for the period		-118 441		0		-118 441
Other comprehensive income					-21 898	-21 898
Total comprehensive income	0	-140 339	0	0	-21 898	-140 339
Share-based payments			2 067			2 067
Share capital increase	2 474	597 526				600 000
Transaction cost		-6 134				-6 134
As of 31 March 2022	25 828	1 856 768	10 129	0	-21 733	1 870 991

On 23 November 2021 related to the closing of the Wystrach acquisition, the company issued 4 444 430 consideration shares to the previous shareholders of Wystrach GmbH.

On 15 February 2022 related to a private placement the company issued 24 742 268 new shares at a price per share of NOK 24.25, which represents a discount of 1.3% to the transaction day volume weighted average price (VWAP). The Company raised approximately NOK 600 million in gross proceeds.

Note 1: General information and basis for preparation

The condensed consolidated interim financial statements for the first quarter 2022, which ended 31 March 2022, comprise Hexagon Purus ASA and its subsidiaries (together referred to as "the Group"). Hexagon Purus ASA, the parent of Hexagon Purus Group, is a public limited liability company with its registered office in Norway. The company's headquarters are at Korsegata 4B, 6002 Aalesund, Norway. Hexagon Purus ASA is listed on Euronext Growth, Oslo, under the ticker HPUR.

The condensed consolidated interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting. For a more detailed description of accounting principles, reference is made to the consolidated financial statements for the year ended 31 December 2021, available on the Company's website www.hexagonpurus.com/investors

The accounting principles used in the preparation of these interim accounts are the same as those applied to the annual consolidated financial statements referred to above. 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 9 May 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 for 2021.

Note 3: Revenue from contracts with customers

(NOK 1000)	Q1 2022	Q1 2021	FY 2021
EXTERNAL AND INTERNAL CUSTOMERS
Sale of cylinders and systems	141 404	45 768	440 431
Sale of services and funded development	14 819	2 827	54 498
Other revenues	278	179	1 054
Contracts with customers at a point in time	156 501	48 774	495 983
Sale of cylinders and systems	1 362	379	3 441
Sale of services and funded development	-	-	-
Other revenues	-	-	-
Contracts with customers over time	1 362	379	3 441
Revenue from contracts with external customers	157 862	49 153	499 424
Sale of cylinders and systems	677	776	2 736
Sale of services and funded development	192	-	4 691
Other revenues	-	1602	68
Rental income	316	-	799
Contracts with related parties	1 185	2 379	8 294
Total revenue	159 047	51 532	507 718
TYPE OF GOODS OR SERVICE
Sale of cylinders and systems	143 442	46 924	446 608
Sale of services and funded development	15 011	2 827	59 189
Other revenues	278	1 781	1 122
Rental income	316	-	799
Total revenue from contracts with customers	159 047	51 532	507 718
TIMING OF REVENUE RECOGNITION
Goods transferred at a point in time	156 501	48 774	495 983
Services transferred over time	1 362	379	3 441
Transactions with related parties	869	2 379	7 495
Rental income	316	-	799
Total revenue from contracts with customers	159 047	51 532	507 718

Note 4: Operating segments

(NOK 1000)	Q1 2022	Q1 2021	FY 2021
PURUS
Revenues from contracts with customers	158 875	51 418	506 039
Other operating revenue	172	114	1 679
Total revenue	159 047	51 532	507 718
Segment operating profit before depreciation (EBITDA)	-92 811	-61 986	-271 777
Segment operating profit (EBIT)	-114 875	-70 411	-324 875
Segment assets	2 525 963	2 061 199	2 101 745
Segment liabilities	654 972	529 612	686 347
CNG LDV (presented as discontinued from 01.01.2021)
Revenues from contracts with customers	-	32 973	196 850
Other operating revenue	-	29 898	2 801
Total revenue	-	62 871	199 651
Segment operating profit before depreciation (EBITDA)	-	10 640	-12 672
Segment operating profit (EBIT)	-	1 588	-30 196

For management purposes, the assessment is that the Purus Group has historically had two operating segments: Purus and CNG LDV. However, the CNG LDV division was classified as discontinued operations in 2021 and is shown as a part of operating segment only for comparability. As of 1 October 2021 the CNG LDV division was sold and Purus does not have defined segments for 2022.

Note 5: Intangible assets

	2022				2021
(NOK 1000)	Goodwill	Customer relationships	Other intangible assets1)	Total 2022	Goodwill	Customer relationships	Other intangible assets1)	Total 2021
Carrying value as of 01.01	497 587	105 707	149 000	752 294	323 107	37 427	54 562	415 097
Additions	-	-	13 050	13 050	-	-	1 644	1 644
Amortizations	-	-4 710	-4 581	-9 292	-	-1 950	-1 480	-3 430
Currency translation differences	-13 837	-2 837	-2 075	-18 749	-14 652	-1 646	-4	-16 302
Carrying value as of 31.03	483 750	98 160	155 394	737 304	308 455	33 831	54 723	397 009

1) Other intangible assets consist of technology and development in addition to patents and licenses

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.

During the quarter there were no indicators of impairment of intangible assets.

Note 6: Tangible assets

		2022			2021
(NOK 1000)	Property, plant, and equipment	Right of use assets	Total 2022	Property, plant, and equipment	Right of use assets	Total 2021
Carrying value as of 01.01	267 705	52 219	319 924	76 634	30 457	107 091
Additions	49 488	1 016	50 504	10 969	5 765	16 734
Depreciations	-6 464	-6 309	-12 772	-3 568	-1 427	-4 996
Impairments	-	-	-	-	-	-
Currency translation differences	-6 504	-821	-7 325	46	-1 791	-1 746
Carrying value as of 31.03	304 225	46 105	350 330	84 080	33 003	117 084

Note 7: Lease liabilities

(NOK 1000)	2022	2021
Carrying value as of 01.01	53 079	31 039
New lease liabilities recognized in the period	1 016	5 765
Cash payments for the principal portion of the lease liability	-5 778	-5 138
Cash payments for the interest portion of the lease liability	-264	-156
Interest on lease liabilities	264	156
Currency translation differences	-821	666
Carrying value as of 31.03	47 496	32 332

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 8: Other financial liabilities1)

(NOK 1000)	Carrying value 01.01.2022	Fair value adjustment	Additions in the period	Settlements in the period	Reclassifications non-current to current	Currency translation differences	Carrying value 31.03.2022
Deferred payment from business combination (amortized cost)	43 490	-	-	-	-42 280	-1 209	-
Contingent liabilities from business combinations (fair value)	65 616	-	-	-	-27 040	-1 825	36 751
Total non-current other financial liabilities	109 106	-	-	-	-69 321	-3 034	36 751
Deferred payment from business combination (amortized cost)	-	-	-	-	42 280	-	42 280
Contingent liabilities from business combinations (fair value)	-	-	-	-	27 040	-	27 040
Total current other financial liabilities	-	-	-	-	69 321	-	69 321

1) Purus Group did not have any items classified as other financial liabilities as per 31.03.2021. Comparable figures are therefore not presented.

The table above 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 11th, 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.

Note 9: Financial assets and financial liabilities

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

The Group recognizes other non-current financial liabilities and current financial liabilities at fair value. All other financial asset and liabilities are recognized at amortized cost.

CARRYING AMOUNT AND FAIR VALUE OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES

		2022		2021
		Q1 2022	Q1 2022	Q1 2021	Q1 2021	FY 2021	FY 2021
(NOK 1000)	Level	Carrying value	Fair value	Carrying value	Fair value	Carrying value	Fair value
FINANCIAL ASSETS
Other non-current assets	2	5 463	5 463	1 260	1 260	2 476	2 476
Trade receivables	2	138 490	138 490	44 540	44 540	220 286	220 286
Other current financial assets Bank deposits, cash, and cash	2	38 642	38 642	31 074	31 074	36 712	36 712
equivalents	2	889 859	889 859	1 091 167	1 091 167	453 398	453 398
Total financial assets		1 072 454	1 072 454	1 168 041	1 168 041	712 872	712 872
Total current		1 066 991	1 066 991	1 166 780	1 166 780	710 396	710 396
Total non-current		5 463	5 463	1 260	1 260	2 476	2 476
FINANCIAL LIABILITIES
Loan from financial institutions	2	42 124	42 124	179 501	179 501	55 761	55 761
Other non-current financial liabilities	3	36 751	36 751	-	-	109 106	109 106
Trade and other payables	2	212 994	212 994	69 261	69 261	191 409	191 409
Other current financial liabilities	3	69 321	69 321	-	-	-	-
Total financial liabilities		361 189	361 189	248 762	248 762	357 640	356 276
Total current		285 867	285 867	248 762	248 762	205 044	205 044
Total non-current		75 322	75 322	-	-	151 232	151 232

The management assessed that the fair values of bank deposits, cash and cash equivalents, trade receivables, other non- current assets, trade payables, and other current liabilities approximate their carrying amounts largely due to the short- term maturities of these instruments.

Note 10: Share-based payments

		PSU executive	RSU executive
	RSU key personnel	management	management
Program issued	14.12.2020	14.12.2020	14.12.2020
Program expire	30.03.2024	30.03.2024	30.03.2024
Strike price	0	0	0
Fair value (at grant date)	27,30	27,30	27,30
Instruments 2021
Opening balance, number of instruments	485 000	421 242	210 621
Grants	91 000
Lapsed/cancelled	-15 000
Closing balance	561 000	421 242	210 621
Instruments 2022
Opening balance, number of instruments	561 000	421 242	210 621
Grants	5 000
Lapsed/cancelled	0
Closing balance	566 000	421 242	210 621

The Company has two share-based long-term incentive plans. The first plan is a management investment program with Performance Share Units ("PSUs") matching. This plan is limited to four members of the executive management team. Each eligible employee will in 2024 be entitled to up to three new shares in the Company per share invested, at no consideration, provided he or she is still employed in the Company at such date. The entitlement depends on fulfilment of three criteria, one per matching share. One criterion is tied to increase in share price, one is tied to Company performance criteria, and one is tied to continued employment.

On 14 December 2020, the Company announced that key members of Hexagon Purus' executive management team exercised their right to purchase the maximum number of shares allowable in the management investment program, equal to a total number of 210 621 shares. As part of this management investment program, the Company awarded up to 421 242 related PSUs and 210 621 Restricted Stock Units ("RSUs") to the executives. The instruments are nontransferable and will vest in 2024 when the Board of Directors approve the

annual accounts for 2023, subject to satisfaction of the applicable vesting conditions. Each vested instrument will give the holder the right to receive one share in the Company.

The second share-based long term incentive plan is an employee RSU program, where 566 000 RSUs are currently issued to key personnel and management employees of the Group. Subject to satisfaction of the applicable vesting conditions, each RSU entitles eligible employees to receive such number of Hexagon Purus shares as corresponds to the number of RSUs vested at the date on which the Company's Board of Directors approves the Company's annual accounts for the financial year of 2023.

The fair value of the RSUs and PSUs are calculated on the grant date, using the Black-Scholes model and Monte Carlo simulation, and the cost is recognized over the service period. Cost of the RSU and PSU schemes, including social security, was NOK 2.1 million year-to-date 2022 (NOK 1.9 million). The unamortized fair value of all outstanding RSUs and PSUs as of 31 March 2022 is

estimated to be NOK 16.8 million (NOK 22.9 million as of 31 March 2021).

There are no cash settlement obligations. As these programs do not have a precedent in the Group, the Group does not have a past practice of cash settlement for outstanding instruments.

Note 11: Events after the balance sheet date

• Entered into an agreement to acquire 40% of Cryoshelter's liquid hydrogen business. The transaction is in conjunction with Hexagon Composites' acquisition of a 40% stake in Cryoshelter's liquid natural gas (LNG) 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 could potentially result in a future complementary offering to Hexagon Purus's market leading compressed hydrogen cylinder technology
• Received an order worth EUR 1.5 million for hydrogen distribution systems from a leading global industrial gas company
• Signed a 15-year lease for a new production and office facility in Kassel, Germany, expected to be ready for move in the second half of 2023
• CIMC-HEXAGON signed a Memorandum of Understanding with Bravo Transport Services to develop hydrogen storage cylinder systems for hydrogen fuel-cell double decker buses in Hong Kong. The initial scope of the MoU is for CIMC-HEXAGON to provide a Type 4 hydrogen storage cylinder system for the first fuel-cell double decker bus in Hong Kong with scheduled delivery in July 2022
• Hexagon Purus Maritime, a wholly owned subsidiary of Hexagon Purus, has received its inaugural order for cylinders to be used in onboard storage of hydrogen in maritime vessels with scheduled delivery in Q4 2022
• There have been no other significant events after the balance sheet date that have not already been disclosed in this report

Shareholder information

A total of 34 224 082 (n.a.) shares in Hexagon Purus ASA (HPUR) were traded on Euronext Growth Oslo during the first quarter of 2022. The total number of shares in Hexagon Purus ASA as of 31 March 2022 was 258 278 936 (par value NOK 0.10). In the quarter, the share price moved between NOK 15.00 and NOK 34.55, ending the quarter at NOK 32. The price as of 31 March 2022 implies a market capitalization of NOK 8.2 billion for the Company.

20 largest shareholders as per 31 March 2022	Number of shares	Share of 20 largest	Share of total	Type	Citizenship
HEXAGON COMPOSITES ASA	189 300 496	79,5 %	73,3 %	Norway	Ordinary
CLEARSTREAM BANKING S.A.	15 852 772	6,7 %	6,1 %	Luxembourg	Nominee
MITSUI & CO LTD	5 204 029	2,2 %	2,0 %	Japan	Ordinary
Deutsche Bank Aktiengesellschaft	4 699 768	2,0 %	1,8 %	Germany	Nominee
FLAKK COMPOSITES AS	3 027 799	1,3 %	1,2 %	Norway	Ordinary
MP PENSJON PK	2 995 987	1,3 %	1,2 %	Norway	Ordinary
J.P. Morgan SE	2 658 283	1,1 %	1,0 %	Luxembourg	Nominee
Citibank Europe plc	2 508 592	1,1 %	1,0 %	Ireland	Nominee
Nordnet Bank AB	1 744 336	0,7 %	0,7 %	Sweden	Nominee
The Bank of New York Mellon SA/NV	1 664 303	0,7 %	0,6 %	Belgium	Nominee
Skandinaviska Enskilda Banken AB	1 548 173	0,7 %	0,6 %	Sweden	Ordinary
BRØDR. BØCKMANN AS	1 363 120	0,6 %	0,5 %	Norway	Ordinary
The Bank of New York Mellon SA/NV	902 945	0,4 %	0,3 %	Belgium	Nominee
NØDINGEN AS	787 228	0,3 %	0,3 %	Norway	Ordinary
KTF FINANS AS	756 950	0,3 %	0,3 %	Norway	Ordinary
Morgan Stanley & Co. Int. Plc.	733 343	0,3 %	0,3 %	United Kingdom	Nominee
VERDIPAPIRFONDET STOREBRAND NORGE	616 018	0,3 %	0,2 %	Norway	Ordinary
J.P. MORGAN SECURITIES PLC	606 431	0,3 %	0,2 %	United Kingdom	Ordinary
SIX SIS AG	605 658	0,3 %	0,2 %	Switzerland	Nominee
State Street Bank and Trust Comp	580 905	0,2 %	0,2 %	United States	Nominee
Total of 20 largest shareholders	238 157 136	100,0 %	92,2 %
Remainder	20 121 801		7,8 %
Total	258 278 937		100,0 %

Forward looking statements

This quarterly report (the "Report") has been prepared by Hexagon Purus ASA ("Hexagon Purus" 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. Forwardlooking 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 Euronext Growth 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 9 May 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 Purus ASA Korsegata 4B, 6002 Ålesund, Norway www.hexagonpurus.com