Hexagon Composites — Investor Presentation 2020

Nov 6, 2020

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

The Presentation has not been reviewed or registered with, or approved by, any public authority, stock exchange or regulated market place. 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 Presentation and/or the statements set out herein. This presentation is not and does not purport to be complete in any way. The information included in this Presentation 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 Presentation, 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 Presentation 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 Presentation has been prepared for information purposes only. This Presentation 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 Presentation in or into any jurisdiction where such distribution may be unlawful, is prohibited. This Presentation speaks as of 6 November 2020, and there may have been changes in matters which affect the Company subsequent to the date of this Presentation. Neither the issue nor delivery of this Presentation 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 Presentation. This Presentation is subject to Norwegian law, and any dispute arising in respect of this Presentation is subject to the exclusive jurisdiction of Norwegian courts with Oslo City Court as exclusive venue. By receiving this Presentation, you accept to be bound by the terms above.

Agenda

• Company update & market overview
• Summary Group highlights and financials
• Outlook
• Q & A
• Appendix: Segment financials & other material

COVID- 19 Impact

• As of November 5, 2020

• 34 Cases YTD
• 5 recovering
• 29 recovered
• 0 work related

• Business impact

• No major supplier disruptions
• All production facilities have remained open and only marginally affected during the quarter
• Underlying market demand is strong

Sustainability targets are fast-tracked...

6

EU commission proposes to raise 2030 greenhouse gas emission reduction target to 55% by 2030

China commits to going carbon neutral by 2060

California bans new gasoline cars and trucks from 2035

…and our customers continue their energy transition

Anheuser-Busch plans to convert its entire long-haul dedicated fleet to renewable energypowered trucks by 2025

UPS will purchase more than 6000 natural gas vehicles between 2020 – 2022

Toyota and Hino launch their future of zero emissions vehicles

Waste Management to cut fleet emissions by 45% by 2038

7

Hexagon Digital Wave – The digital transformation is essential in reducing global emissions

Building on unique technologies for Modal Acoustic Emissions testing and Ultrasonic Examination

Utilize artificial intelligence to develop smart tanks and smart tanks systems

Work across all business areas to generate new business streams

"Digital technologies will be key part of making sure the EU reaches climate neutrality" European Commission

Building on our Modal Acoustic Emissions technology to set a new industry standard

Increased safety

Reduced total cost of ownership

Increased lifetime of the tanks

Combining Mobile Pipeline with Agility Fuel Solutions renaming to Hexagon Agility

Drive efficiency by full utilization of the Mobile Pipeline organization

Turn the market volatility for Mobile Pipelines into a capacity opportunity for Fuel Solutions

Leverage global market positions and opportunities

11

Positioning Hexagon Purus as a pure play e-mobility company

Allows Hexagon Purus to realize its full potential

Listing preparations on track

1) Hexagon Agility represents the combination of Mobile Pipeline and Agility Fuel Solutions. Combination and name is effective 01.01.2021

2) Hexagon Digital Wave will be an own business area effective 01.01.2021.

FINANCIAL UPDATE FINANCIAL UPDATE

Impacts of COVID - 19 IMPACTS OF COVID - 19

COVID – 19 Impacts

Company position update

• Recovery in progress overall in Q3
• Record strong results for Agility
• Mobile Pipeline continues to be impacted, being project based
• Difficult to assess or predict with precision the future broad effects of COVID-19 and the actual ongoing impact will depend on many factors beyond a company's control and knowledge
• Can expect overall negative impact to full year results in 2020
• Do not expect any material impairments within balance sheet
• Good liquidity and Hexagon remains financially robust. As of Q3 we have:
• Undrawn committed facilities of NOK 653m*
• NOK 957m in cash after NOK 907m** private placement
• Net Interest-bearing debt of NOK 0.5bn* = ~6% of market cap***
• Flexible arrangements with our principal financier
• Provide good headroom through challenging 2020 and into 2021

Q3 2020 FINANCIALS

Highlights from Q3 2020

• Record revenues and EBITDA in Agility
• ‒ Further deliveries on major logistics customers
• ‒ Anheuser-Busch order for USD 8 million received
• Weak Mobile Pipeline volumes impacted by COVID-19
• ‒ Production geared towards USD 7m order for fourth quarter
• Low CNG Light-Duty Vehicle volumes
• ‒ Production restarted after production relocation of major customer
• ‒ Call offs have restarted in the quarter
• Heated Purus e-mobility market
• ‒ Nominated for serial production contract towards Fuel Cell Electric SUV with an estimated sales value of EUR 25 million
• ‒ Announced intended spin-off and public listing
• Robust LPG performance
• ‒ First deliveries to Bangladesh since pandemic
• ‒ Europe remains strong
• ‒ Diversified customers and geographies

Anheuser-Busch truck with Agility Fuel Solution's CNG system. Fueling at a US Gain station.

Financial highlights Q3 2020

Hexagon Composites Group

Revenue by segment Q3 2020 | Before Group eliminations*

• Agility Fuel Solutions (Heavy and Medium-Duty)
• Hexagon Purus (e-mobility & CNG Light-Duty Vehicles)
• Hexagon Mobile Pipeline & Other
• Hexagon Ragasco LPG

Revenue Q3'20

NOKm, before group eliminations

• Agility Fuel Solutions (Heavy and Medium-Duty)
• Hexagon Purus (e-mobility & CNG Light-Duty Vehicles)
• Hexagon Mobile Pipeline® & Other
• Hexagon Ragasco LPG

Balance sheet | Q3 2020 vs Q2 2020

Net Interest Bearing Debt NOK 522m (Adjusted* 489m) & Equity Ratio 50%

Stronger balance sheet after private placement

*The bond was raised in NOK and remains ultimately an obligation to be settled in NOK, however the company entered into a currency swap hedging arrangement effectively converting the instrument to USD and is therefore accounted for as USD and subject to non-cash FX translation movements; such movements on the bond in total were NOK 33 million in the period

OUTLOOK

Agility Fuel Solutions Medium and Heavy-Duty Vehicles

Strong activity in Heavy and Medium-Duty g-mobility

• Another strong quarter expected in Heavy-Duty Truck business
• Large number of deliveries to major logistics supplier continue in Q4
• European bus picking up and expected to continue in Q4 – mainly due to ramp up following the onset of COVID-19

Hexagon Purus e-mobility

Hexagon Purus wins contract for first hydrogen powered commuter train in the U.S.

– Train will be built and tested in Switzerland and then transferred to California for further tests in 2023 before commissioning in 2024.

Partnering with OEMs

• Awarded contract to provide full electric drive system to Hino Trucks "Project Z"* (a Toyota Group Company)
• Deliveries in the first half of 2021, customer demonstrations in 2022, and production prior to 2024
• Deliveries continue to major OEMs
• Bus segment active
• Delivery of roof mount hydrogen storage systems to CaetanoBus
• Continue to ship product to Solaris, fuel cell bus demo products currently in the field

The Hino XL 7, with Hexagon Purus battery systems. Part of Hino's future range of zero emission vehicles.

Large and diversified e-mobility project pipeline

High number of hydrogen and battery electric development projects in a variety of segments

CNG Light-Duty Vehicles

• VW production continues to ramp up through Q4 as expected
• Supply levels returning to normal with call-offs to end of year
• Run rate in estimated somewhat lower than 2019 level (due to COVID-19 and subsequent delay of SEAT LEON launch)
• The launch of SEAT LEON's facelift in SEAT's assembly plant in Mortorell, is planned to follow in the first quarter of 2021.

Credit: SEAT

Hexagon Mobile Pipeline

Focusing on opportunities in new segments

• COVID-19 and oil related impacts continue in Q4
• Low activity in onshore oil and gas sector in North America leading to postponed capital spends to 2021
• Industrial gas segment still recovering from COVID related shutdowns earlier this year leading to postponed capital spends to 2021
• Additional orders for Mobile refueling units expected in Q4
• Expect solid Q4 with deliveries of units for virtual connect, RNG and energy intensive applications

Hexagon Ragasco LPG

Demand for LPG domestic use recovering

• Stable demand from Europe continues
• First order from Argentina received in Q3, deliveries made in Q4

Outlook summary

APPENDIX

Q3 2020 and YTD 2020 Group income statement

NOK MILLION	QUARTER			YEAR TO DATE			FULL YEAR
	Q3 2020	Q3 2019	Variance	YTD 2020	YTD 2019	Variance	FY 2019
Revenue	769,5	770,3	(0,7)	2 277,6	2 474,2	(196,6)	3 416,1
Operating expenses	(704,6)	(721,0)	16,4	(2 157,0)	(2 282,0)	125,0	(3 126,0)
Earn-out obligation reversal / gain on transaction	0,0	0,0	0,0	0,0	69,4	(69,4)	69,6
EBITDA	65,0	49,3	15,6	120,5	261,6	(141,1)	359,7
Depreciation on tangibles	(44,6)	(45,1)	0,5	(139,0)	(132,7)	(6,3)	(182,2)
Amortisation and impairment	(16,2)	(14,8)	(1,4)	(47,3)	(44,3)	(3,0)	(57,4)
EBIT	4,2	(10,6)	14,7	(65,7)	84,6	(150,3)	120,1
Share of profit/(loss) from associates	(0,2)	(0,2)	(0,0)	(0,8)	(0,8)	0,1	(0,7)
Other financial items (net)	(11,0)	82,9	(93,8)	55,6	23,2	32,4	(8,1)
Profit/(loss) before tax	(7,0)	72,1	(79,1)	(10,9)	106,9	(117,9)	111,2
Tax expense	(39,3)	(16,6)	(22,7)	(50,4)	(10,3)	(40,1)	(3,8)
Profit/(loss) after tax	(46,3)	55,5	(101,8)	(61,3)	96,6	(158,0)	107,5
EBITDA %	8,4 %	6,4 %		5,3 %	10,6 %		10,5 %
EBIT %	0,5 %	-1,4 %		-2,9 %	3,4 %		3,5 %
Profit/(loss) after tax %	-6,0 %	7,2 %		-2,7 %	3,9 %		3,1 %

Segment financial highlights Q3 2020 | (1/3)

• Record quarter for revenue and EBITDA driven by volume

• Volumes driven by Heavy-Duty Truck and European Transit bus

• Lower call-offs from VW Group following relocation of CNG vehicle assembly line coupled with COVID-19 shutdowns hit revenues in the CNG LDV segment

• One-off charge of NOK 8 million related to reversal of a gain on a carve-out transaction (zero group effect)
• Please see separate CNG and e-mobility figures and comments on next slide

Segment financial highlights Q3 2020 | (2/3)

• Q1'20 to Q3'20 revenues for CNG LDV was adversely impacted by lower calls-off from VW Group due to relocation of its CNG vehicle assembly line, in addition to effects from COVID-19
• Production at VW's relocated facilities restarted towards the mid to end of Q3'20; call-offs recommenced

• One off charge impacted profitability in Q3'20

Segment financial highlights Q3 2020 | (3/3)

• Macro impacts from COVID-19 & onshore US oil & gas slowdown had negative impact to sales of new modules in Q3'20

• Favourable year-over-year FX movements in the quarter accretive to margin

Group cash Q3 2020

Solid underlying operations cashflow offset by OPWC expansion from higher sales; Equity issue in quarter