Hexagon Composites — Investor Presentation 2021

Aug 10, 2021

HEXAGON PURUS Q2 2021 PRESENTATION

10 AUGUST 2021

MORTEN HOLUM, CEO DILIP WARRIER, CFO

Disclaimer and important notice

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

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Agenda

HIGHLIGHTS FROM Q2 2021

1

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FINANCIALS

3 OUTLOOK AND Q&A

HIGHLIGHTS FROM Q2-2021

OG1M864

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HEXAGON

Hexagon Purus Key highlights from Q2 2021

STRONG YEAR-OVER-YEAR REVENUE GROWTH

IMPORTANT CONTRACT WINS AND ROBUST COMMERCIAL ACTIVITY

ACCELERATING EFFORTS WITHIN THE ZERO EMISSION MARITIME SEGMENT

Broad-based revenue growth in Q2'21

HEXAGON PURUS, GROUP REVENUES | NOKM

Solid revenue uptick year-over-year:

• Increase in deliveries of hydrogen distribution cylinders and modules to Everfuel and large industrial gas companies
• Solaris, Caetano and New Flyer drive increased activity in transit bus segment
• Modest growth in niche, highmargin aerospace business

Multi-year global supply agreement with Air Liquide, in addition to national agreement in a key hydrogen region

GLOBAL SUPPLY AGREEMENT

Preferred supplier of type 4 hydrogen cylinders

Cylinders to be used for transport of hydrogen for industry and mobility

NATIONAL EXCLUSIVITY AGREEMENT

HEXAGON

5-year exclusivity agreement (as part of global agreement) for hydrogen distribution applications in a key region that is adopting hydrogen as a major part of its energy transition

Entered partnership with Velocity Vehicle Group for supply of zero emission

All commercial trucks and vans sold in California are to be zero emission by 2045

HPUR to deliver turnkey integrated battery packs and electric drivetrains for up to 100 zero emission electric medium-duty trucks

First deliveries expected to take place in 2022

Strong strategic rationale for hydrogen in maritime applications

in CO₂ per transport work compared to 2008, as a

Hydrogen can revolutionize the decarbonization efforts for maritime transportation - IMO targets reduction in greenhouse gas emissions by 40% in 2030 and 50% by 2050¹

The establishment of Hexagon Purus Maritime marks the acceleration of HPUR's commercial efforts in this segment. Industry-leading fuel systems integration knowledge will be applied to deliver innovative and safe hydrogen solutions for the maritime industry - first mainly in Norway, then globally

HPUR's ownership in Hyon has been sold to Saga Pure. Exposure to the consortium remains intact however through HPUR's ownership in Norwegian Hydrogen AS

Zero emission maritime solutions represent a large opportunity for Hexagon Purus - involved in several projects already

ESTIMATED NUMBER OF NEW COMPRESSED HYDROGEN VESSELS GLOBALLY... Northern Europe | East Asia RoW Rest of Europe South East Asia North America Oceania CAGR: ~90% 88 54

...TRANSLATING INTO A LARGE MARKET OPPORTUNITY FOR HPUR

...in addressable market for Hexagon Purus for on-board compressed hydrogen storage systems cumulatively through 2030

Hexagon Purus is providing design and engineering services as well as hydrogen cylinders and storage systems for both on-board and distribution applications:

$\Rightarrow$

2022

2023

2024

2025

2026

2027

2028

2029

2030

$\Omega$ 2021

Joint venture preparations with CIMC Enric are progressing well

China aims to be net zero by 2060¹; national policies aim at fast roll-out of hydrogen vehicles and infrastructure

~50 large hydrogen projects announced in China; more than half of these are related to the transportation sector

Preparation for establishment of production footprint is well underway

Key organizational appointments have been made

¹ Source: China Automotive Technology and Research Center

Ground-breaking of new manufacturing facility in Kelowna, Canada

Ground-breaking in July of new $\sim$ 60,000 square foot highly automated manufacturing facility and technical center of excellence in Kelowna, Canada for production of battery packs and hydrogen storage systems

Important step to support and increase Hexagon Purus' production capacity

Expected completion in the summer of 2022

Nine confirmed cases reported in 2021 YTD

All production facilities have remained open during the quarter

Remaining vigilant and ready to deploy additional counter measures if required

Long lead times on certain key cylinder and electric components, lithium-ion battery cells and production equipment

Working actively to mitigate supply chain disturbances

Antartheoretic commence the definition

THE MONTEN (VILLE) FOR MEASURES.

ENANCIAES

Financial highlights | Q2 2021 and LTM Hexagon Purus e-mobility (excl. CNG LDV)

· Solid year-over-year and sequential revenue growth in Q2'21 driven by increased activity in hydrogen distribution and transit bus applications

• Continued investments in personnel and infrastructure drive negative EBITDA
• Increased corporate and strategic costs following spin off; NOK 34m impact YoY in Q2

Revenue split by application Hexagon Purus e-mobility (excl. CNG LDV)

Hydrogen distribution modules

Hydrogen cylinders and storage systems

Pressure and fuel tanks, development projects

Hydrogen cylinders and storage development projects

Ground storage, rail and marine development projects

Balance sheet | Q2 2021 Hexagon Purus e-mobility

Assets | NOKm Equity & Liabilities | NOKm 2,095 2,095 $\overline{77}$ ້62່ 1,955 1,955 74 220 115 $\overline{80}$ 353 85 366 272 525 552 $1,629$ EQUITY 1,445 RATIO: 74% $1,246$ CASH AND CASH 892 EQUIVALENTS: NOK 892m 31 December 2020 30 June 2021 31 December 2020 30 June 2021 Current liabilities Fixed assets Receivables Other current assets $\blacksquare$ Equity Non-current liabilities Liabilities related $\blacksquare$ Cash Assets held for sale Inventory to assets held for sale

Balance sheet remains strong

Cash balance of NOK 892m and equity ratio of 74%

Intercompany debt will be extinguished once the transfer of the discontinued CNG LDV business to Hexagon Composites is completed by year-end 2021

Cash flow | YTD 2021 Hexagon Purus e-mobility

NOKm

Cash outflow from operations include c. NOK 126m in increase in working capital

CNG LDV (discontinued operations) drove NOK 25m of cash outflow

AQUTLOOKAND Q&A

Several ambitious emission targets have been launched so far in 2021 - transportation sector is in focus

$\gt$

«FIT FOR 55»

55% reduction in CO₂ emissions for new passenger vehicles by 2030 vs. 2021

All new passenger vehicles to be registered as of 2035 will be zeroemission

ALONGSIDE BEVS, FCEVS WILL PLAY A KEY ROLE IN DECARBONIZING THE GLOBAL TRANSPORTATION SECTOR

~10 OEMs planning to launch first commercial FCEV models until 2025

35 FCEV models announced to be launched until 2030

New tests & serial production announcements for FCEVs in niche applications

2050

Outlook remains strong for rest of 2021 and beyond

Financial statements | P&L
Hexagon Purus e-mobility (excl. CNG LDV)

INCOME STATEMENT (NOK1000)	Q2 2021			Q2 2020 First-half 2021 First-half 2020	FY 2020
Revenue from contracts with customers	93 921	45 101	145 339	93 2 20	178 121
Other operating income	156	992	270	1 1 4 1	1693
Total revenue	94 077	46 093	145 609	94 362	179 814
Cost of materials	55 2 2 3	22 2 3 3	84 162	49 016	86 717
Payroll and social security expenses	41838	27 318	86 410	54 639	123 497
Other operating expenses	65 55 6	16822	105 564	54 25 9	110 322
Total operating expenses before depreciation	162 617	66 373	276 136	157 914	320 536
Operating profit before depreciation (EBITDA)	$-68540$	$-20280$	$-130527$	$-63552$	$-140722$
Depreciation and impairment	9 7 13	7 1 4 4	18 13 8	13 0 97	26 906
Operating profit (EBIT)	$-78254$	$-27425$	$-148665$	$-76649$	$-167628$
Profit/loss from investments in associates and joint ventures	575	$-134$	$-127$	$-571$	$-1885$
Net finance income/(costs)	12 9 5 6	$-10425$	$-20261$	$-27089$	$-103860$
Profit/loss before tax	$-64723$	$-37984$	$-169053$	$-104309$	$-273373$
Tax	$-765$	21 903	$-570$	15 750	34 654
Profit/loss after tax before discontinued operations	$-63957$	$-59888$	$-168483$	$-120059$	$-308026$
Profit/loss after tax for the period from discontinued operations	$-18945$	$-18762$	$-18427$	$-27698$	$-34602$
Profit/loss after tax	$-82902$	$-78649$	$-186$ 910	$-147757$	$-342628$

Financial statements | Balance sheet & cash flow Hexagon Purus e-mobility (excl. CNG LDV)

BALANCE SHEET (NOK1000)	30.06.2021	30.06.2020*	31.12.2020
ASSETS
Property, plant and equipment	95 530	105 831	76 634
Right-of-use assets	42 600	77 870	30 457
Intangible assets	410 974	513 994	415 097
Investment in associates and joint ventures	1974	80	2 0 6 6
Non-current financial assets	1339	149	751
Deferred tax assets		20 5 20
Total non-current assets	552 416	718 444	525 005
Inventories	73 882	109 283	61586
Trade receivables	84 687	88 612	26 657
Contract assets (incl. prepayments)	1016	7 0 5 6	814
Other current financial assets	78 835	21 9 31	14 440
Cash and short-term deposits	892186	53 591	1246 351
Total current assets continuing operation	1130 606	280 473	1349849
Assets held for sale	271 582		219 771
Total assets	1954 604	998 917	2094625
EQUITY AND LIABILITIES Issued capital	22 909	330	22 909
Other paid-in capital	49 119	230 890	372
Share premium	1605802	14 4 43	1605739
Other equity	$-233242$	$-510960$
Total equity	1444 588	$-265297$	1629 021
Interest-bearing loans and borrowings (related party)		842 891
Lease liabilities	18 678	77 943	21795
Provisions	3	2 2 5 4	$\overline{3}$
Net employee defined benefit liabilities	83	2 2 6 0	2 6 3 5
Deferred tax liabilities	9678	24 487	11024
Total non-current liabilities	28 442	949 835	35 457
Trade and other payables	87 533	169 869	83 988
Contract liabilities	32 195	35 2 20	32 068
Interest-bearing loans and borrowings (related party)	166 973		161 016
Lease liabilities, short term	23 26 9	12 107	9 2 4 4
Income tax payable	16	19
Other current liabilities	32 596	97 164	49 512
Provisions	23 641		17 16 2
Total current liabilities continuing operation	366 221	314 378	352 990
Liabilities associated with assets held for sale	115 353		77 158
Total liabilities	510 016	1 264 214	465 604
Total equity and liabilities	1954 604	998 917	2094625

CONDENSED CASH FLOW (NOK 1000)	First-half 2021
Profit before tax from continuing operations	$-169053$
Depreciation and write-downs	20 5 86
Change in net working capital and other	$-126195$
Net cash flow from operations	$-274661$
Net cash flow from investment activities	$-44924$
Net cash flow from financing activities	$-8896$
Net change in cash and cash equivalents	$-328481$
Net currency exchange differences	$-439$
Discontinued operations	$-25245$
Cash and cash equivalents at start of period	1 2 4 6 3 5 1
Cash and cash equivalents at end of period	892 186

*Note: Balance sheet as of 31 December 2020 and 30 June 2021 is that of Purus' e-mobility business
with the CNG LDV business treated as a discontinued operation. Balance sheet as of 30 June 2020 inlcudes the CNG LDV business.

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