Hexagon Composites — Investor Presentation 2018

May 9, 2018

Disclaimer and important notice

This company presentation (the "Presentation") has been prepared by Hexagon Composites ASA ("Hexagon" or the "Company").

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Agenda

• •Group highlights
• •Group financials & segment overview
• •Update on Hydrogen-related investments
• •Outlook
• •Q & A

Highlights from Q1 2018

• • 20% year-over-year growth in group revenues and solid cash generation
• ‒Best quarterly EBITDA since Q4 2014*
• • Strong Mobile Pipelines volumes in the quarter Highest quarterly revenues since Q4 2014
• •Strong LPG volumes

‒

• •Solid Hydrogen & Light-Duty Vehicles volumes
• • Relatively weak quarter for Agility Fuel Solutions
• Weakness versus Q1 2017 due to Heavy-Duty Truck order patterns
• Revenues and profitability have picked-up from Q4 2017
• •Joined the prestigious Hydrogen Council
• •Dividend proposed and subsequently paid of NOK 0.30 per share

* Excluding Extraordinary gain impacting Q4 2016 results

1STQUARTER 2018 FINANCIALS

Financial highlights Q1 2018 | Strong Profitability

Q1 2018 Group income statement

O O N K M I L L I N		F U L L Y E A R
	Q 1 2 0 1 8	Q 1 2 0 1 7	ia Va r nc e	2 0 1 7
Op in In t er a g co m e	4 1 6. 3	3 4 6. 2	0. 0 7	1 4 2 9. 4
Op t ing er a e xp en se s	( 3 4 9. 7 )	( 3 1 1. 1 )	( 3 8. 6 )	( 1 2 5 5. 4 )
Ex ion l Ga ins t ce p a	0. 0	0. 0	0. 0	0. 0
E B I T D A	6 6. 5	3 5. 1	3 1. 4	1 7 4. 0
De ia t ion ta i b les p rec o n ng	( ) 1 3. 2	( ) 1 3. 3	0. 1	( ) 5 2. 4
Am t isa t ion d im irm t or a n p a en	( 6. 0 )	( 5. 1 )	( 0. 9 )	( 2 2. 3 )
E B I T	4 7. 3	1 6. 6	3 0. 7	9 9. 3
S ha f p f i / ( los ) fro ia t te re o ro s m as so c s	( 0. 9 )	( 1. 3 )	0. 4	( 3. 0 )
Am t isa t ion f a ia te in ta i b les or o ss oc s ng	( 3. 2 )	( 3. 5 )	0. 2	( 1 3. 6 )
O t he f ina ia l i te ( t ) r nc ms ne	( 1 1. 9 )	( 5. 7 )	( ) 6. 3	( 3 4. 4 )
Pr f i t / ( lo ) be fo ta o ss re x	3 1. 3	6. 3	2 0 5.	4 8. 2
Ta x ex p en se	( ) 8. 2	1. 0	( 9. 2 )	2 1. 0
f / ( ) f Pr i t lo te ta o ss a r x	2 3. 1	7. 2	1 5. 8	6 9. 3
E B I T D A %	1 6. 0 %	1 0. 1 %		1 2. 2 %
E B I T %	1 1. 4 %	4. 8 %		6. 9 %
N E T P R O F I T / ( L O S S ) %	5. 5 %	2. 1 %		4. 8 %

Segment shares Q1 2018 | Before Group eliminations*

Operating income Q1'17

NOKm, before group eliminations 2017 = Pro-forma

• Hexagon Hydrogen & Light-Duty Vehicles
• Hexagon Mobile Pipeline® & Other
• Hexagon Ragasco LPG

Operating income Q1'18

NOKm, before group eliminations

• Hexagon Mobile Pipeline® & Other
• Hexagon Ragasco LPG

Segment financial highlights Q1 2018

• •Good growth in CNG powered Light-Duty Vehicles
• • Lower Hydrogen product revenues, instead FCEV development revenues based on progress

• •Investing in future growth in Hydrogen is dilutive

• • 51% year-over-year growth driven by North American Mobile Pipeline® sales

• •High volume generates scale efficiencies

Segment financial highlights Q1 2018

• • Revenues primarily from core European and Middle East markets
• •Plant efficiencies high due to high volumes

• Significant Margin up-swing when LPG and Mobile Pipeline volumes are both strong

After all eliminations

Agility Fuel Solutions: Q1 2018 Business Operating results

• • Improved revenues and margin after weak Q4 2017
• Driven by strong transit bus revenues
• • Continued slow Heavy-Duty Truck volumes in quarter
• Order patterns disrupted by delayed launch of new near-zero 12L engine
• • Solid Refuse Truck sales
• Continued upward trend in 2018 over 2017
• • Powertrain Systems (propane) on track to business plan
• • Good Liquidity
• Fully-funded

Revenues and adjusted EBITDA

Agility Fuel Solutions: Q1 2018

Result to Hexagon Group per equity accounting method

Q1 2018 AFS EBITDA to profit before tax

exp.

compensation

Agility impact to Group P&L

NOKm

Balance sheet | Q1 2018 vs Q4 2017

NOK 175m Net Interest Bearing Debt & 60% Equity Ratio

Strong Balance sheet

13

Group cash movements Q1 2018

Strong contribution from underlying operations more than covers capex and development

Update on Hydrogen related investments

Our position on the Hydrogen opportunities

The transition to cleaner energy, supported by public and private players, is happening now…

…driving game-changing opportunities especially within Hydrogen …

2

…and we are focusing investments in 2018-2020 for attractive future returns

The cleaner energy transition will shape and transform Hexagon Composites' growth-path

The total pie is expected to grow substantially; Hydrogen and Biogas expected to increase significantly in relative share

Hydrogen capex guiding as per Q4'17 presentation…

Investments in 2018-20 for attractive future returns

Updated view

Planned Hydrogen capex 2018-2020 is fully funded by expected cashflows from other business areas

Favorable Macro Conditions

• •Higher oil prices
• •Widening delta between diesel and natural gas
• •Rapidly growing momentum for alternative energy
• •Natural gas and biogas key to achieve emission goals

Fuel price spread has become significantly more favorable

Price development last 12 months

Oil price drives fuel price spread in favor of CNG

Sources: EIA, NYMEX, cngprices.com, Agility Fuel Solutions, Hexagon Composites

No solution without increased use of gases

Global shares of primary energy

Chart source: BP Energy Outlook, 2018 edition

Renewables & Natural Gas are expected to continue increasing their share of the global energy mix

1Growth p.a

The Hydrogen Council's views

Potential decisive shift in deployment of hydrogen technologies the next 5-10 years*

• •Contribute to meeting 18% of the world's energy demands,
• •Avoiding 6 gigatons of CO2 emissions
• •Creating a market with revenues of USD 2.5tn annually, and
• •Providing 30 million jobs by 2050
• •Power about 10-15 million cars and 500,000 trucks by 2030

3M	O Air Liquide	ALSTOM	AngloAmerican		BMW GROUP	BOSCH $\left(\rightleftharpoons\right)$ Invented for life	CHI ENERGY 国家能源集团
DAIMLER	ENGIE	$\circledast$ GM Great Wall	HONDA	PO HYUNDAI		Iwatani	JXTG Nippon Oil & Energy
■ Kawasaki	02 PLASTIC CMNIUM		Statoil	L THE LINDE GROUP	$\bm \varpi$ TOTAL	TOYOTA	WEICHAI
Faber BALLARD	GORE faurecia	O HYDROGENICS HEXAGON	Marubont	McPhy $\begin{tabular}{ c c c c c c c c c c c c c c c c c c c$	EXITSULLCO. A Mitsubishi Corporation	PLUG P nel·	Vopak molasso 3"TOYOTA TSUSHO
							Hydrogen Council

Source: Hydrogen Council; IEA ETP Hydrogen and Fuel Cells CBS; National Energy Outlook 2016

"In 2030, 1 in 12 cars sold in California, Germany, Japan, and South Korea could be powered by hydrogen."

* Hydrogen: Scaling Up, The Hydrogen Council, 2017 24

Carbon Capture and Storage (CCS) back on the agenda

Hydrogen production from Norwegian natural gas with CCS in 20501:

• • 750 TWhof clean energy annually
• •Annual sales of NOK 220bn
• •25,000-35,000 jobs

Source: "Industrielle muligheter og arbeidsplasser ved storskala CO2-håndtering i Norge» by SINTEF and NTNU, for NHO, LO, Felles-forbundet, Norsk Industri, Norsk Olje og gass and Industri Energi

International Maritime Organization (IMO) committed to reducing CO2 emissions by 50% by 2050

• • Maritime transport emits around 1 billion mt of CO2 annually – about 2.5% of global GHG emissions
• •The start of a major shift to alternative fuels
• • First Hexagon delivery of CNG Mobile Pipeline® tanks to compress and store boil-off-gas from LNG tanks

TradeWinds 13 April 2018

CNG Mobility from Volkswagen

VW presenting new natural gas high-tech engine TGI 1.5 Evo VW's SEAT is pushing CNG technology VW and industry partners driving CNG mobility 27 April 2018 11 April 2018 21 February 2018

CNG Light-Duty Vehicles

• • VW experiencing triple digit growth in Germany for its CNG model sales
• CNG environmental value proposition enhanced by biogas and e-gas*
• •Volkswagen launching new CNG engine in 2020
• • SEAT, Spain, aiming at 300 gas stations by 2020 and 1 mill LDVs sold by 2030
• Double digit growth expected for 2018, with further acceleration from 2019 onwards

CNG NewRegs Germany in Ы April high again - 9 mont
CNG NewRegs Germany in April high again - 9 month consecutive rise -
Utgitt den 5. mai 2018
Stephen Neumann Volkswagen Group Technology Strateg V Følger
For all of you who are curious to know: New-
Regs "CNGs" in Germany in April raised again
around 10% compared to March numbers.
Volkswagen AG with a market share of
>95%
KBA is publishing CNG+LPG numbers as total
- KBA needs to change that!
More to come in the next days stay tuned!

LinkedIn post by Stephen Neumann, Volkswagen Group Technology Strategy and Management - Technology Projects, 5 May 2018

"The good thing about CNG technology is that it already exists, which means that there is no need for major investments and it can be widely offered to customers. (…) CNG is not just a bridge technology, but a real long-term alternative." SEAT President Luca de Meo, 11 April 2018

* e-gas (renewable CNG) based on methane obtained from wind, solar, hydropower or biomass power generation processes

Hydrogen

• • Hydrogen Light-Duty Vehicle programs well under way
• ‒Engineering intensive
• ‒Start of serial production in 2nd half of 2018
• • Hydrogen distribution segment temporarily soft
• Expected to pick up strongly towards end of year
• Resumed growth expected in second half of 2018 while ramping up for 2020 onwards

X-STORE® 45ft trailer for hydrogen distribution

Mobile Pipelines

Mobile Pipelines

• • First US Mobile Pipeline® delivery to biogas plant
• ‒Transporting Renewable Natural Gas (RNG) from farm to pipeline
• • TITAN® 53 to be launched in Q3
• ‒Targeting 65-80.000 lbs segment
• ‒Optimized solution for certain regions with weight restrictions
• • Developing "pipeline integrity" segment – Backup capacity during pipeline down time
• • Mobile Pipelines connecting "stranded communities" and facilities to the gas grid
• •North American shale oil & gas segment very active
• • Lots of promise but still slow project flow outside North America
• Strong overall market outlook short and long term

Fluctuations between quarters still to be expected

Delivering TITAN® trailers to Compass Natural Gas at a total value of approx MNOK 33 Photo: Compass Natural Gas

LPG

• •Robust recurring European market
• •User-friendliness and safety drive demand in the Middle East
• • Growing repeat orders from "coastal" customers due to non-corrosive features
• • New drive to open the US market Underway in Florida, expanding to California in Q2
• Positive momentum continues into Q2. Promising prospects for second half of 2018

Propane Ninja in Florida (US) launched the composite LPG bottle in Q1 2018

MNOK 75 expansion program on track

Investing in processes and technologies to further enhance manufacturing efficiency and product differentiation Agility Fuel Solutions

Agility Fuel Solutions

• • Agility has become a full range supplier of alternative fuel solutions, adding;
• ‒Hydrogen storage systems for trucks
• ‒Battery electric
• ‒CNG and battery electric hybrid
• •Continued positive outlook for both refuse and transit bus sales
• • Cummins Westport's near-zero emissions natural gas engine now available and first sales in Q2
• Heavy-Duty truck sales outlook stronger through to 2019
• Positive impact from fuel price spread will probably lag

Industry sentiment very positive with CNG/RNG/EV hybrid seen as essential within US transport fuel-mix

The walk-in step van manufactured by Freightliner and powered by Agility's CNG powertrain system Photo: Steven Martinez

Kenworth displays a prototype CNG Hybrid at ACT Expo; Cummins-Westport Near Zero engine and Agility CNG fuel system

Agility partner with Romeo Power Technology for modular battery packs

• • Agility and Romeo Power Technology partner to provide modular battery packs for commercial vehicles
• • Romeo Power Technology – energy storage technology company
• ‒ Founded by engineers and designers from SpaceX, Tesla, Amazon and Samsung
• • Custom-designed battery modules
• Combining battery technology with hydrogen and CNG solutions

Romeo Power Technology

Outlook – Summary

•LPG

• –Full capacity utilization 1st half
• –2nd half focus on matching record year of 2017
• • Mobile Pipelines
• –Non-linear but overall strong year-over-year growth expected in 2018
• • Hydrogen and Light Duty Vehicles (LDV)
• – Good outlook for LDV
  • –Double digit topline growth expected
• Broad range of Hydrogen opportunities with focus on OEM development contract milestones
• –Diluting EBITDA short term
• –Non-linear revenue recognition
• • Agility Fuel Solutions
• –Healthy medium duty truck, refuse truck and transit bus markets
• Recovery in heavy-duty long haul truck market beginning already in Q2 2018, earlier than previously expected
• Oil price > USD 70 and launch of near zero emission 12L Cummins Westport Natural Gas engine will give positive momentum

Market development is strong in all segments. Quarterly profits will continue to fluctuate. Dilutive EBITDA effect from Hydrogen

Questions Please

Jon Erik Engeset, CEO David Bandele, CFO