Hexagon Composites — Investor Presentation 2020

May 20, 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 20 May 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
• Summary Group highlights and financials
• Outlook
• Q & A
• Appendix: Segment financials & other material

Impact of COVID-19

• Three reported cases of COVID-19
• The facility in Kassel, Germany was closed from March 23rd to April 20th due to temporary shutdowns of customers' operations
• All US plants have been kept open ‒ Essential Critical Worker status
• Mobile Pipeline at reduced capacity
• ‒ 37 team members on furlough from mid-April July 30
• No major supplier disruption
• Several segments will be negatively impacted in Q2, but high market activity points towards recovery from Q3

Customer and employee dedication

• Customers not deviating from their sustainability agendas
• Keeping our facilities fully operational under strict safety guidelines
• remain engaged and dedicated
• Hexagon's team members supporting their local communities.

"As the technology leader in my organization, I understand how crucial it is to have the right technology to enable brilliant minds to flourish".

• Rafael Zavala, Director of Information Technology, Agility Fuel Solutions

COVID-19 puts spotlight on environment

Sudden drop in carbon emissions*

• Nearly 50% in New York
• More than 25% in China
• Around 30% in India
• In the EU and UK, emissions fell with 39% in April – satellite images show nitrogen dioxide emissions fading away over northern Italy, Spain and the UK
• World emissions in 2020 to fall with an historic 8%, something that has not been seen since the industrial revolution

*Transport emissions make up 23% of global carbon emissions.

• Investments in climate-resilient infrastructure & transition to lower-carbon future
• Can drive significant near-term job creation
• Increase economic and environmental resiliency
• Stimulus and recovery packages could accelerate the shift to decarbonized economies
• In the US, New York State passed legislation that accelerates the siting and construction of clean energy facilities
• The European Council is sticking to the 'Green Deal for Europe' principles
• ESG stocks have proven to be a safer haven in this period of market disruption. – In the first four months of 2020, investors poured a record of at least \$12.2 billion into ESG

"Can the world afford to pay attention to climate change and the broader sustainability agenda at this time? Our firm belief is that we simply cannot afford to do otherwise." McKinsey Quarterly, April 2020

Strategic context (from Q2 2019)

Significant push for greener transportation

• Short to medium term (5-10 years), natural gas represents the energy carrier with the largest potential for a positive environmental impact
• The automotive industry is shifting towards electric drive trains. E-drives are more energy efficient than mechanical drive trains
• Centre of gravity of Hydrogen development shifting towards East Asia and towards heavier applications

We expect significant growth

The Chinese market

• World's largest automotive market 25.5 million vehicles sold in 2019
• SAIC Motor
• Dongfeng
• FAW Group
• Changan Automobile
• Great Wall
• Geely
• Hydrogen status at end of 2019:
• 6,430 FCEVs
  • 63% commercial vehicles
  • 35% buses
• 61 hydrogen refueling stations
• Significant Zero Emissions Vehicle subsidies in place
• Energy independence and reduced greenhouse gas emissions main drivers

"We will sort out the factors that have been hindering the development of fuel cell vehicles." Wang Gang, Vice Chairman of China's national advisory for policy making

Strong growth in FCEVs and hydrogen infrastructure expected in China over the next decade

12 May Announcement

• Chinese leader in Type 1/2/3
• Strong relationships with Chinese vehicle OEMs, gas distributors and Chinese regulators
• Trusted energy equipment brand
• \$2 billion company, listed on the Hong Kong stock exchange,
• 10,000 employees
• Track record of international alliances

About CIMC ENRIC

• Subsidiary of CIMC (USD 12.2 billion/50,000 employees)
• ISO Liquid tank containers (No. 1 worldwide)
• High pressure gas cylinder trailers (No.1 in China)
• Cryogenic liquid transport equipment (No.1 in China)
• LNG, CNG and LPG transport equipment (No.1 in China)

FINANCIAL IMPACTS OF COVID-19

COVID – 19 Impacts

Company position

• Limited financial impacts in Q1 but further impacts felt in Q2
• Difficult to assess or predict with precision the future broad effects of COVID-19 and the actual impact will depend on many factors beyond a company's control and knowledge
• Can expect an overall negative impact to results in 2020
• Do not expect any material impairments within balance sheet
• Major risk factors in order of impact:
• Demand side factors from reduced customer spending or border control
• Key supplier interruptions
• COVID-19 infections at our manufacturing sites
• Contingency plans by site and coordinated globally through Head of Operations
• While we have had temporary lay-offs we have a longer-term view and look to ensure we are well placed to retain staff through short-term disruption

Financial Contingency planning

Robust counter measures taken

• Capex and product development deferred; priority projects only
• Restricting to only essential spend in 2020 including necessary completion of Agility cylinder capacity expansion
• Working capital optimization
• Rationalizing inventories
• Opex initiatives taken according to severity of disruption
• All non-essential spend is suspended

Hexagon can counter negative impacts to business cash flows in the near to mid-term and have plans and measures based on 3 levels of severity

Financial Contingency planning

Good liquidity and financial flexibility

• Liquidity is good and Hexagon is robust to withstand the storm. As of Q1 we have:
• undrawn committed facilities of NOK 733m (includes NOK 400m of acquisition facilities); and
• NOK 115m in cash
• Adjusted Net Interest-bearing debt of NOK 1.25bn*
• Our External debt positions are as follows:
• Unsecured Listed Bond Hex 03: NOK 1.1 billion raised to finance Agility acquisition
  • No leverage covenant
  • Debt servicing in 2019 was circa USD 6.5m p.a. vs USD 20m of free** cashflow from Agility alone
  • Maturity in 2023
• Bilateral Multicurrency and Acquisition facility of up to NOK 1.0 bn
  • Drawn loans less cash at Q1 is NOK 152m
• Flexible arrangements with our principal financier in place in 2019
• We can tap, where appropriate, government stimulus programs in Norway, Germany and USA

1st

QUARTER 2020 FINANCIALS

Highlights from Q1 2020

• Solid revenue and EBITDA for Agility Fuel Solutions
• ‒ Expected softer start to 2020 than the heated prior quarter
• Low Purus CNG Light-Duty Vehicle volumes
• ‒ Due to planned production relocation of major customer
• Dynamic Purus e-mobility market
• ‒ More than 40 diversified hydrogen projects
• ‒ Market leading feedback on our battery electric programs
• Decent Mobile Pipeline volumes
• ‒ Growing RNG activity
• Solid LPG sales volumes
• ‒ Sales to Europe, Middle East and South America
• Financial impacts of COVID-19 in Q1'20 were limited and mostly contained to transit bus in Europe

Financial highlights Q1 2020 Hexagon Composites Group

68 -6 (-9%)

• Lower underlying revenues for the group; FX tailwind Y-o-Y NOK 70m

• Customer production stop in CNG LDV and C-19 impacts negatively

* Adjusted for NOK 69m net gain on Agility transaction in January 2019 unadjusted for other related charges

• Y-o-Y effects of depreciation NOK - 3m; mark to market charges on swap NOK -23m; FX NOK +154m; tax NOK - 21m

Q1 2020 | e-mobility & g-mobility financials* , NOKm

Solid base with double-digit margin g-mobility business to support major future growth in e-mobility

Balance sheet | Q1 2020 vs Q4 2019

Adjusted* Net Interest Bearing Debt NOK 1,251m (Unadjusted 1,424m) & Equity Ratio 43%

Strong balance sheet impacted by significant upward foreign currency movements

*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 173 million in the period

OUTLOOK

Agility Fuel Solutions Medium and Heavy-Duty Vehicles

Continued activity in Heavy and Medium-Duty g-mobility

• COVID-19 impacts in Q2:
• ‒ US and European Transit bus will be negatively impacted by some customers' temporary shutdowns
• ‒ Overall, expect longer lead-times to sales due to impacts along whole value chain
• Expect busier second-half of 2020 in Heavy-Duty Truck
• ‒ Major logistics suppliers see increasing demand and are designated as having "Essential infrastructure" status

Heavy-Duty Truck with Agility's new GEN 5 ProRail™ side mount

Positive Battery Electric Vehicle reviews

• COVID-19 impacts in Q2:
• Currently no indications of impacts to development programs and the timeline to serial volume opportunities, but delays can arise
• Positive customer feedback on efficiency and performance of battery electric drivetrain delivery to Daimler Trucks North America
• Penske and NFI logged many thousand miles
• Driving experience reviews are positive
• Deliveries to two additional OEMs on schedule

Penske electric vehicle

Medium and heavy- duty hydrogen projects

• COVID-19 impacts in Q2:
• Currently no indications of impacts to development programs, but delays can arise
• Received first hydrogen order for Capacity yard-hauler – designed to withstand extreme conditions
• Delivered hydrogen storage 'behind the cab' systems to PowerCell to be integrated and tested on a zeroemission refuse hauler
• Expect additional orders for hydrogen bus programs in Europe

Capacity Yard Hauler diesel version for illustration

Diversified hydrogen project pipeline

High number of hydrogen development projects across all segments

Hexagon Purus CNG Light-Duty Vehicles

CNG Light-Duty Vehicles

• VW assembly line relocation, as reported in Q4, is in process
• Ramp up still expected to start Q3
• Run rate in 2H of the year (post-COVID 19) may not be at 2019 level
• VW has reassured continuous marketing of their CNG range of vehicles
• New models beyond 2025 will depend on changes to the EU regulation

Hexagon Mobile Pipeline

Opportunities in 2020 despite project delay challenges

• COVID-19 and oil related impacts in Q2
• Significantly reduced activity in onshore oil and gas sector and general risk of project delays due to capital constraints
• Production curtailed due to lower volumes
• Somewhat increased activity in Latin American market
• Continued penetration into industrial gas segment – Gas portfolio now includes Helium
• RNG shows significant potential
• Additional orders expected from existing RNG customers for TITAN® 4 and TITAN® 53 products
• New customers expected for leasing units under long-term Lifetime Asset Management Program
• Virtual interconnect
• Awaiting demand projection for the winter season in the US
• Mobile refueling business
• Potential opportunities for this application in the U.S.

RNG site at dairy farm in Wisconsin, USA

Hexagon Ragasco LPG

Stable performance

• COVID-19 impacts:
• ‒ Expect delays in orders to certain countries impacted significantly by pandemic
• Deliveries to new customer in Germany
• Solid sales in the Middle East
• ‒ In Saudi-Arabia and Qatar
• Shipment of cylinders to new market Djibouti

Outlook summary

APPENDIX

Q1 2020 and FY 2019 Group income statement

	QUARTER			FULL YEAR
NOK MILLION	Q1 2020	Q1 2019	Variance	FY 2019
Revenue	825 2 ,	821 8 ,	3 4 ,	3 416 1 ,
Operating expenses	(788 4) ,	(740 9) ,	(47 5) ,	(3 0) 126 ,
Earn-out obligation reversal / gain on transaction	0	69	(69	69
	0	4	4)	6
	,	,	,	,
EBITDA	36	150	(113	359
	8	3	5)	7
	,	,	,	,
Depreciation on tangibles	(46	(42	(3	(182
	0)	8)	2)	2)
	,	,	,	,
Amortisation and impairment	(14	(15	0	(57
	8)	3)	5	4)
	,	,	,	,
EBIT	(24	92	(116	120
	0)	2	2)	1
	,	,	,	,
Share of profit/(loss) from associates	(0	(0	(0	(0
	4)	4)	0)	7)
	,	,	,	,
Other financial items (net)	105	(25	131	(8
	6	7)	3	1)
	,	,	,	,
Profit/(loss) before tax	81	66	15	111
	2	1	0	2
	,	,	,	,
Tax expense	(19	2	(21	(3
	0)	3	3)	8)
	,	,	,	,
Profit/(loss) after tax	62	68	(6	107
	1	4	3)	5
	,	,	,	,
EBITDA %	4 % 5 ,	18 3 % ,		10 % 5 ,
EBIT %	-2 9 % ,	11 2 % ,		3 5 % ,
Profit/(loss) after tax %	7 5 % ,	8 3 % ,		3 1 % ,

Revenue by segment Q1 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 Q1'20

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

Segment financial highlights Q1 2020 | (1/3)

• Overall decline offset by positive FX
• Solid European Transit bus volumes despite some impacts of COVID-19 at end of quarter
• UPS continues to drive strong year-over-year growth in the Medium-Duty segment

NOKm

• Strong year-over-year revenue increase in Heavy-Duty EV systems
• Lower call-offs from VW Group following relocation of CNG vehicle assembly line and COVID-19 hit revenues in the CNG LDV segment
• Please see separate CNG and e-mobility figures on next slide

Segment financial highlights Q1 2020 | (2/3)

• Following a strong 2019, Q1'20 revenues for CNG LDV was adversely impacted by lower calls-off from VW Group following its planned shutdown and relocation of its CNG vehicle assembly line, in addition to some effects from COVID-19 related measures

• Q1'20 revenues saw strong contribution from Purus Systems, which delivered BEV systems to a major U.S. based customer
• Organizational build-up continues to have an adverse impact on EBITDA

Segment financial highlights Q1 2020 | (3/3)

• Lower activity seen in O&G, offset in part by a growing positive contribution from exposure to the Renewable Natural Gas (RNG) market
• FX impacts Revenue but marginally hits EBITDA, which distorts margin, underlying volumes reduced

• Cost initiative program implemented in H2(19) has taken full effect in 2020

• Favourable FX impacts assist year-over-year margin accretion

• Higher sales to European customers (+40% YoY) compensates for lower deliveries to Asia Pacific

Group cash Q1 2020

Stripping out effects of FX translations

Underlying cash movements more modest than movements in balance sheet due to FX impacts

44

Pro-forma effect of internal reorganizations effective 1-Jan-20 Revenue | NOKm

Business unit moved in Business unit moved out

Pro-forma effect of internal reorganizations effective 1-Jan-20 EBITDA | NOKm

Business unit moved in Business unit moved out