Hexagon Composites

Notice of Dividend Amount • Jun 7, 2023

Hexagon Composites ASA: Board recommendation to distribute Hexagon Purus shares as dividend-in-kind and notice of extraordinary general meeting

Hexagon Composites ASA: Board recommendation to distribute Hexagon Purus shares as dividend-in-kind and notice of extraordinary general meeting

7 June 2023: The Board of Directors of Hexagon Composites ASA ("Hexagon

Composites" or the "Company") calls for an Extraordinary General Meeting ("EGM")

28 June 2023 where the Board of Directors requests authorization to distribute

up to 25% of the total outstanding shares in Hexagon Purus ASA ("Hexagon Purus")

as a dividend-in-kind to its shareholders. As a result of the share distribution

and subject to final EGM approval, Hexagon Composites' ownership will decrease

significantly, and the Company will undertake a non-controlling ownership in

Hexagon Purus. The EGM notice is attached as a separate document.

"We believe the proposed dividend is in the interest of the shareholders of both

Hexagon Composites and Hexagon Purus. Subject to EGM approval of the

distribution, Hexagon Composites will achieve financial deconsolidation and

increase the free float in the Hexagon Purus share," says Knut Flakk, Chair of

the Board of Hexagon Composites. "Distributing shares to Hexagon Composites'

existing investors will provide Hexagon Purus with additional direct owners that

know and understand the company. A deconsolidation will also entail a one-off

accounting gain for Hexagon Composites, better reflecting the market value of

Hexagon Purus."

"Since the inception of Hexagon Purus some five years ago, the company has had a

very satisfactory development, been listed on the main list of the Oslo Stock

Exchange and established a strong investor base including Mitsui & Co. as a lead

investor," says Jon Erik Engeset, CEO of Hexagon Composites. "Following the

proposed distribution of shares, Hexagon Composites does not intend to reduce

its ownership exposure in Hexagon Purus any further for the foreseeable future.

We will remain a strategic partner with Hexagon Purus while allowing the other

Hexagon Group companies to fully leverage their growth potential."

"We view today's announcement and Hexagon Composites' pending deconsolidation as

a natural and important next step for Hexagon Purus as an independent company.

We look forward to welcoming all Hexagon Composites shareholders to our exciting

journey, enabling the transition to zero-emission mobility," says Morten Holum,

CEO of Hexagon Purus.

Unlocking further value

According to DNV, the clean energy transition is the greatest driver of

increased investment in renewables, with strong regulatory support on both sides

of the Atlantic. The undertakings to accelerate sustainable transportation are

significant with strong regulatory support in all key regions. Medium- and

heavy-duty vehicles contribute more than 20% of road transport CO2 emissions and

are considered a hard-to-abate sector. Renewable natural gas (RNG), hydrogen and

battery electric technologies are enabling the switch to alternative energy in

this sector.

Hexagon Composites' carbon-negative solutions

The use of Renewable Natural Gas (RNG = Biomethane) is the most effective, and

readily available alternative for decarbonization of transportation. RNG

produced from waste prevents release of methane to the atmosphere by organic

decomposition and displaces CO2 emissions from conventional fuels.

With nearly six decades of experience and more than 70,000 vehicles on the road,

Hexagon Composites is a global leader in delivering solutions for infrastructure

and mobility that enable the switch to this carbon negative energy source in an

economically viable, scalable solution for OEMs and fleets. Hexagon's

addressable market is expected to increase threefold for US natural gas driven

long-haul trucks when Cummins' launches its new 15-liter natural gas engine in

2024, while at the same time its Mobile Pipeline® CNG/RNG business is in high

demand, driven by decarbonization targets and incomplete pipeline

infrastructure.

Hexagon Purus' zero emission solutions

Hexagon Purus is a world leading provider of zero emission mobility and hydrogen

infrastructure solutions. It is a pure-play hydrogen and battery electric

company positioned to benefit from the tremendous growth that is expected in the

zero-emission market. With unique hydrogen and battery systems, as well as

electric drivetrain integration capabilities, Hexagon Purus is accelerating the

development of hydrogen and battery electric zero emission mobility solutions in

an addressable market that is expected to reach close to USD ~25bn in 2030.

The companies have individual strategies for future funding, capital allocation

and dividend policy. The proposed deconsolidation is seen as a major step in

unlocking further value in both companies.

Subject to EGM approval, the proposed dividend in kind will be distributed early

in the third quarter 2023. For more information on the proposal for a dividend

in kind, please see the attachment.

For further information, please contact:

Ingrid Aarsnes, VP Investor Relations & ESG, Hexagon Composites ASA

Telephone: +47 950 38 364 | ingrid.aarsnes@hexagongroup.com

(mailto:ingrid.aarsnes@hexagongroup.com)

Karen Romer, SVP Communications, Hexagon Composites ASA

Telephone: +47 950 74 950 | karen.romer@hexagongroup.com

(mailto:karen.romer@hexagongroup.com)

About Hexagon Composites ASA

Hexagon delivers safe and innovative solutions for a cleaner energy future. Our

solutions enable storage, transportation, and conversion to clean energy in a

wide range of mobility, industrial and consumer applications. Learn more

at?www.hexagongroup.com and follow @HexagonASA on Twitter and LinkedIn.

About Hexagon Purus ASA

Hexagon Purus enables zero emission mobility for a cleaner energy future. The

company is a world leading provider of hydrogen Type 4 high-pressure cylinders

and systems, battery systems and vehicle integration solutions for fuel cell

electric and battery electric vehicles. Hexagon Purus' products are used in a

variety of applications including light, medium and heavy-duty vehicles, buses,

ground storage, distribution, refueling, maritime, rail and aerospace.

Learn more at www.hexagonpurus.com (http://www.hexagonpurus.com/) and follow

@HexagonPurus on Twitter and LinkedIn.

This information is considered to be inside information pursuant to the EU

Market Abuse Regulation and was published by Berit-Cathrin Høyvik, Director

Communications at Hexagon Composites ASA, on 7 June 2023 at 16:29 CEST.