Hexagon Composites — Investor Presentation 2024

Feb 15, 2024

Q4 2023

Jon Erik Engeset, CEO David Bandele, CFO

15 February 2024

Disclaimer and important notice

This company presentation (the "Presentation") has been prepared by Hexagon" or the "Company"). The Presentation has not been reviewed or registed by, any public authority, stock exchange or regulated market place. The Company makes no representation or warrany (whether express or completeness of the information contained herein, and neither the Company nor any of its subsidiaries, directors assume any liability connected to the Presentation and/or the statements set out herein. This presentation is not and does not per The information included in this Presentation may contain certain forwardlooking statements relating to the business and results of the Company and/or the industry in which it operates. Forward-looking statements concern future circumstances and other statements that are not historical facts, sometimes identified by the words "believes", expects", "predicts", "intends", "plans", "aims", "foreses", "anticipates", "targets", and similar expressions. The foward-looking statements contained in this Presentation, including and views of the Company or cited from third party sources are soley opinions and forecasts which are subject to risks, uncerfactors 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 such person's affiliates, officers or employees provides any assurance that the assumptions underlying 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 Company and its advisors assume no obligation to update any forward-looking statements or to conform these forward-looking statements. Investors are advised, however, to inform themselves about any ture dic disclosures made by the Company, such as filings made with the Oslo Stock Exchange or press releases. This Presentation has been purposes only. This Presentation does not constitute any solicitation for any offer to purchase or subscribe 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 may be unlawful, is prohibted. This Pesentation speaks as of 15 February 2024, and there may have been changes in matters which aftect the date of this Presentation. Neither the issue nor delivery of this Presentation shall under any circumstion 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 assume any obligation, to update or correct any information in 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.

Key highlights

NOK 5 billion revenue mark passed in 2023

Hexagon Agility Record year for Mobile Pipeline – and growing

Hexagon Ragasco 21 new customers added.

5 year agreement with Saudi customer, Gasco

Hexagon Digital Wave 54% growth in 2023.

New long term UE agreement in January

Driving Energy Transformation

In 2023, our solutions enabled the avoidance of

1.5 million

metric tons of CO2 equivalents

Equal to 300,000 petroleum cars off the road for one year

Q4 financial highlights

Strong revenue growth

Revenue growth 2023 +24%

Revenue growth 2023 +54%

Revenue growth 2023 -4%

2024 - Transitioning to the X15N natural gas engine

First OEMs opened order books

Deliveries from Q3

Strong growth expected from 2025 and onwards

2024

2025

7

• •
• •
• •

Hexagon Digital Wave - two generations of Mobile Pipeline modules up for recertification

==============================================================================================================================================================================

2014 )

2019

2024

Recertification of 2014 and 2019 generation

MAE testing and requalification services performed on site without removing the cylinders

First commercial order for Hexagon Ragasco's smart cylinder - Linktra®

• · Pilot successfully completed in 2023
• A Scandinavian LPG distributor has placed its first order of 20,000 Linktra® cylinders for 2024
• · Growing interest amongst LPG distributors

Hexagon Purus:

The lion's share of the investment program is completed - now moving into the ramp-up and operational execution phase

^{------------------------------------------------------------------------------------------------------------------------------------------------------------------------------}

• · NOK 4-5bn 2025 revenue target largely supported by capacity and organizational investments already made
• · Scale effects and cost control expected to bring EBITDA above break-even in 2025
• · Hydrogen infrastructure (58% of 2023 revenue) already EBITDA profitable

Finandrals

nan

I

1

Financial highlights | Q4 2023 Hexagon Group

costs

· 13% revenue growth driven by Hexagon Agility and Hexagon Digital Wave

• · Solid increase in EBITDA
  • Includes NOK 11 million of strategic and restructuring costs

Financial highlights | Full Year 2023* Hexagon (excl. Purus)

21% revenue growth

• Hexagon Agility Mobile Pipeline business driving growth
• Strong growth in Hexagon Digital Wave

Significant recovery in EBITDA levels:

– Back to double-digit margins when excluding strategic and restructuring costs

Hexagon Agility | Q4 2023

■ Cylinder sales to Hex Purus / Other cylinders

21% revenue growth

• Continued strong Mobile Pipeline performance
• Solid Transit bus volumes
• Higher y-o-y heavy-duty truck; and q-o-q

~2x EBITDA growth

• and high Mobile Pipeline volume
• Headwinds from mix and planned shop-floor initiatives negatively impacting cylinder production

Hexagon Agility | Full Year 2023*

■ Cylinder sales to Hex Purus /Other cylinders

24% revenue growth

• Record Mobile Pipeline sales
• Lower heavy-duty truck volumes offset partially by higher medium-duty and refuse truck
• Strong growth in sales of cylinders to Hexagon Purus

Margins recovering:

• Cost-adjusted pricing effective
• Pace of recovery slowed by relatively low truck volumes
• Offset partly by Mobile Pipeline volumes

Hexagon Ragasco | Q4 2023

Seasonally typical quarter

• Unusual quarter last year driven by high stocking requirements
• Lower European volumes offset partially by large new order to Oceania

Profitability:

– 15% margin baseline achieved despite volume level

Hexagon Ragasco | Full Year 2023*

Unsatisfactory top-line development

• Not able to fully offset the de-stocking effects in Europe with deliveries to rest of the world
• Strong sales to Middle East and a total of 21 new customers in 2023, 16% of volumes

Resilient margins:

– Lower volumes offset partly by positive currency effects

Hexagon Digital Wave | Q4 2023

• · 2x growth in services (MAE) business1
• Higher machine sales in UE business'; included delayed shipments from Q3
• Margin appreciation despite ongoing organization driven opex

Hexagon Digital Wave | Full Year 2023*

54% revenue growth

• 3x growth in MAE services which are complementary to Hexagon Agility businesses
• Further top-line growth in UE machines

Profitable growth

– Positive margin despite continued ramp-up, weighing down 10 percentage points

Hexagon Group leverage

• At end of Q4, Hexagon Group has NOK 733 million in available liquidity

• Total NIBD of NOK 954 million
• NIBD/EBITDA leverage of 2x

Hexagon Purus

• Contributed NOK 0.2 billion in form of Convertible bond
• Support towards break-even EBITDA goal in 2025
  • Hexagon Purus has attracted HY24 and Mitsui as anchor investors
• Accounting driven non-cash impairment of NOK 0.7 billion
  • • Net NOK +1.65 billion P&L effect for year, including the gain realized in second quarter

Hexagon Group 20231 Financial & ESG Scorecard Strong demand for our sustainable solutions, solid fundamentals

2023 = Preliminary and unaudited

CO2 equivalents. Number is subject of ull-year review. Source: Caculated based on the Alternative Fuel Life-Cycle Environmental and Economic Transportation (AFEET) 2) tool from the Greenhouse gass, Regulated Emission in Technologies (GREE®) model has been used for estimating enission reductions, Greenhouse

Gas Equivalencies Calculator | US EPA 23 3) As of 15 February 2024.

Qutlook

Hexagon Group 2024 outlook

Back-end loaded with truck sales expected to increase significantly after engine launch

HEX AGON

Mobile Pipeline & Cylinders other Strong RNG driven growth with almost full backlog for 2024; Strong sales to Hexagon Purus expected

Transit & Refuse truck Lumpy transit, steady Refuse truck

Truck

Continued excess capacity in freight sector. Typically low Q1, weak Q2 ahead of new X15N engine launch in Q3; expecting pick-up in second half 2024

LPG cylinders

Stable 2024 expected with major European customer rationalizing capex, offset by larger orders outside Europe

Cylinder testing and inspection technologies Continued profitable growth

Revenue

• · Back-end loaded truck revenues
• · Growth on track for 2025 target of NOK >6bn

EBITDA

• · Back-end loaded profitability
• · Margin appreciation expected in second-half of year, in line with increased truck volumes
• Profitability on track for 2025 target of ~15%

Key takeaways

21% top-line growth in 2023 with improved margins

Record Mobile Pipeline and Hexagon Digital Wave sales

Strong RNG* drivers Introductory orders for game-changing 15L engine commenced

On track to hit 2025 targets

Revenue: >NOK 6bn EBITDA margin: ~15%

.......... .......... .......... .......... 188000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000 100000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000 .......... 1100 1100 1000

10000000000

. 100000000

1888000000

1880000000

1888000000000

O O O O O O O O O O O O O O O O O O O O O O

Clean air everywhere

Appendix

.......... .......... .......... ........... 100000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000 .......... 100000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000

100000000000

10000000000

1880000000

.........

.........

.........

........

1000000000

..............................................................................................................................................................................

Investor relations information

Hexagon proforma financial highlights (1/3)

Hexagon Group (excluding Hexagon Purus)*

• Hexagon (excl. Hexagon Purus) provides clean solutions with strong ESG benefits

• Hexagon Agility**: (renewable) natural gas clean mobility solutions
• · Hexagon Ragasco: Portable LPG cylinders for household and leisure applications
• · Digital Wave: smart technology for monitoring and testing of cylinder systems and creating circular economy by extending life expectancy

Hexagon Purus* NOKm Revenues E EBITDA 372 330 259 244

· Hexagon Purus provides clean and sustainable fuel solutions for battery electric and hydrogen vehicles

380

366

"2020 peliminary unaudied pro-formations; 2021 segment reported and is after central/corporate and eliminations within the segments

* peviously refered to a g-mobility and be consistent with other reported segments and alled of CNG DV business to Heagon Agility of CNC LDV by M.L.2

Segment proforma financial highlights (2/3)

· Hexagon Agility provides (renewable) natural gas clean mobility solutions for Heavy and Medium Duty Vehicles, Mobile Pipeline, and Light-Duty Vehicles

· Global leading provider within markets including Heavy-Duty/ Medium-Duty Trucks, Refuse Truck, Transit Bus, Gas Transportation, Mobile Refueling units and Passenger cars

Hexagon Agility split (after eliminations)* NOKm

Previously refered to as g-mobility and being rebrants and alsead of transferring generional responsibility of CNG LDV business to Heragon Aglib (1.1.22)

2020: preliminary unaudited pro-forma figures after adjusting for reorganizations; 2021 segment reported

32 1) Corrected compared to previous quarters due to reclassifications.

Segment proforma financial highlights (3/3)

• World leading provider of LPG composite cylinders
• · Delivered over 20 million cylinders worldwide
• · Strategic agenda include loT and digitalization providing connectivity and driving value chain transformation

Hexagon Digital Wave

• · Proprietary safety technology Modal Acoustic Emission (MAE) technology for testing and certifying cylinders
• Strategic agenda include cylinder digitalization with real-timing monitoring, testing and certification, creating a circular economy through enabling life extension

Hexagon Group Balance sheet | Q4 2023 vs Q3 2023

6,456 1 516 141 Net Interest-bearing 449 debt = NOK 954m 1 108 4 098 Equity ratio 50% 3 241 30.09.2023 31.12.2023

IFRS-driven impairment of Hexagon Purus by 0.7bn reduces Balance sheet in the quarter

Clean air everywhere