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Hexagon Composites

Quarterly Report Apr 25, 2023

3619_rns_2023-04-25_e299a219-3d69-475c-a175-3e1afe5223d6.pdf

Quarterly Report

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Q4 2022

Key figures

(NOK million) Percent Percent
Q4 2022 Q4 2021 change FY 2022 FY 2021 change
Revenue 372 259 44 % 964 508 90 %
Operating profit before depreciation (EBITDA) -109 -61 n/a -406 -272 n/a
Operating profit (EBIT) -134 -81 n/a -501 -325 n/a
Profit before tax -133 -82 n/a -441 -347 n/a
Profit after tax from continuing operations -131 -81 n/a -432 -345 n/a
Profit from discontinued operations, after tax - 23 n/a - -9 n/a
Profit for the period -131 -58 n/a -432 -354 n/a

Highlights of Q4 2022

  • Revenue grew 44 % year over year to NOK 372 million, driven by strong demand in hydrogen distribution applications
  • Full year revenue grew by 90% from NOK 508 million to NOK 964 million
  • Exited the quarter with total backlog of approximately NOK 1 billion

The Hexagon Purus Group

Unless otherwise stated, the income statements for the periods in 2022 and the balance sheet as of 31 of December 2022 presented in this document relate to Hexagon Purus' emobility business. The results of Hexagon Purus' Compressed Natural Gas Light Duty Vehicle (CNG LDV) business in 2021 are reported as discontinued operations following the successful spin-off of Hexagon Purus from the Hexagon Composites ASA group and the transfer of Hexagon Purus' CNG LDV business to new entities under the ownership of Hexagon Composites ASA which was completed on 1 of October 2021.

In the fourth quarter of 2022, Hexagon Purus Group ("the Company") generated NOK 372 (259) million in revenue and recorded operating profit before depreciation (EBITDA) of NOK -109 (-61) million.

Reported revenue for the twelve months of 2022 grew 90 % to NOK 964 (508) million, mainly driven by increased sales in hydrogen distribution as well as rail applications.

Continued investments in personnel and infrastructure to support and accelerate Hexagon Purus' future growth drive negative profitability. Additionally, the Group has been subject to inflationary pressure in the cost of its key inputs which is being addressed through offsetting pricing actions as well as cost reduction efforts.

Hexagon Purus recorded a loss after tax (before profit from discontinued operations) of NOK -131 (-81) million in the fourth quarter of 2022. Net financial items were NOK 60 (-5) million driven primarily by the reclassification of the shares in Norwegian Hydrogen AS from an associated company to an equity instrument at fair value (see note 11 for more details), as well as foreign exchange fluctuations. Tax items were NOK -2 (-1) million.

Net loss after tax (before profit from discontinued operations) in the twelve months of 2022 was NOK -432 (-354) million. Net financial items were NOK 58 (-19) million driven primarily by the reclassification of the shares in Norwegian Hydrogen AS from an associated company to an equity instrument at fair value, foreign exchange fluctuation and a reduction in intercompany debt positions. Tax expenses were NOK -9 (-2) million.

At quarter-end, the balance sheet amounted to NOK 2 654 (2 102) million and the Group's equity ratio was 64 % (68 %).

Key developments in 2022

  • Grew revenue by 90% from NOK 508 million to NOK 964 million
  • Received orders worth approximately EUR 67 million for infrastructure applications such as hydrogen distribution systems and mobile hydrogen refueling from various customers
  • Signed a long-term binding letter of intent (BLOI) with Hino Motors Manufacturing U.S. to provide battery packs for multiple Hino truck platforms with serial production planned from 2024. The BLOI was replaced by an exclusive distribution agreement on 15 March 2023, where Hexagon Purus will produce complete battery electric heavy-duty trucks for the U.S. market
  • Selected by CaetanoBus as preferred supplier of high-pressure hydrogen fuel systems for serially produced fuel cell transit buses. The estimated potential value over the lifetime of the frame agreement is approximately EUR 35 million
  • Entered into commercial cooperation with Lhyfe, a leading producer of green and renewable hydrogen, for hydrogen distribution modules in Europe
  • Signed investment agreements together with CIMC Enric to establish a joint production facility in Shijiazhuang, Hebei and the CIMC-Hexagon New Energy Technologies management office and engineering hub in Beijing Daxing District International Hydrogen Development Zone. In addition, the Shijiazhuang and Beijing Daxing governments have made a strong commitment to support the development of the CIMC-HEXAGON business in their regions through 2030
  • Selected to work together with BMW, Robert Bosch and TesTneT Engineering to develop an innovative hydrogen storage system solution for future fuel cell passenger vehicles

  • Selected as partner for the second year in a row by New Flyer, North America's largest mass transit solutions provider. Hexagon Purus will supply highpressure hydrogen storage cylinders for New Flyer's zero emission Xcelsior CHARGE H2 ™ hydrogen fuel cell electric transit buses in 2022. Total contract value is approximately USD 2 million

  • Received inaugural order for high-pressure hydrogen fuel systems from a Polish bus OEM for serial production of fuel cell transit buses
  • Signed a 15-year lease for a new hydrogen cylinder production and office facility in Kassel, Germany, expected to be ready in the second half of 2023
  • Signed a 10-year lease for a new 60,000 square foot facility in Westminster, USA for cylinder manufacturing and engineering. The facility was opened in January 2023.
  • Successfully closed the acquisition of 40% of Cryoshelter's liquid hydrogen storage business. The transaction is in conjunction with Hexagon Composites' acquisition of a 40% stake in Cryoshelter's liquid natural gas (LNG) storage business. Cryoshelter's liquid hydrogen tank technology is in the early stage of development and builds on superior and differentiated LNG technology that provides more fuel capacity and longer hold times (a critical requirement for cryogenic storage) than competing offerings. The transaction brings earlystage expertise in liquid hydrogen tank technology for zero emission mobility applications and could potentially result in a future complementary offering to Hexagon Purus's market leading compressed hydrogen cylinder technology
  • Hexagon Purus Maritime received its first purchase orders including for cylinders to be used in onboard storage of hydrogen in maritime vessels and for a hydrogen fuel storage system from Moen Marin, the world's largest supplier of service boats to the aquaculture industry

  • CIMC-HEXAGON signed a Memorandum of Understanding with Bravo Transport Services to develop hydrogen storage cylinder systems for hydrogen fuel-cell double decker buses in Hong Kong. The initial scope of the MoU is for CIMC-HEXAGON to provide a Type 4 hydrogen storage cylinder system for the first fuel cell double decker bus in Hong Kong with scheduled delivery in July 2022

  • Successfully completed a private placement resulting in NOK 600 million of gross proceeds

Regarding the situation in Ukraine and Russia

Given the Group's relatively limited investments and market activities in Russia and Ukraine and their surrounding areas, management does not assess the Russian invasion of Ukraine to have a significant direct effect on the reported figures as of 31 December 2022.

Key developments after balance sheet date

  • Opened a new hydrogen cylinder manufacturing facility in Westminster, Maryland (U.S.). The 60,000 square foot facility will support the annual production of up to 10,000 cylinders for heavy duty vehicle applications and will employ up to 150 skilled workers. The new facility expands cylinder production capabilities and capacity and allows for further expansion
  • Received an order for mobile hydrogen refueling stations and stationary storage from Deutsche Bahn, a leading provider of mobility and logistics services worldwide and the number one railway operator in Europe. The value of the order is approximately EUR 2.5 million (approximately NOK 25 million)
  • Selected by New Flyer for the third consecutive year, to provide Type 4 hydrogen storage cylinders for the serially produced Xcelsior CHARGE H2 ™ fuel cell electric bus. The total value of the contract is estimated to be approximately USD 2.5 million (approximately NOK 25 million)

  • Signed an exclusive distribution agreement with Hino Trucks, where Hexagon Purus will produce complete battery electric heavy-duty trucks for the U.S. market, distributed exclusively through select qualifying dealers in Hino's network. The potential total value over the course of this agreement could reach approximately USD 2.0 billion. The distribution agreement replaces the binding letter of intent (BLOI) from Hino announced on 11 February 2022

  • On 1 March 2023 the Company successfully raised total gross proceeds of approximately NOK 1,300 million. The Offering comprised of an Equity Private Placement raising gross proceeds of approximately NOK 500 million through the issuance of 18,518,519 new shares (the "New Shares") at a price of NOK 27.00 and a Convertible Bond Private Placement, raising gross proceeds of approximately NOK 800 million (the "Convertible Bonds").
  • In the Offering, Mitsui & Co., Ltd. ("Mitsui") subscribed for, and was allocated, NOK 500 million in the Convertible Bond Private Placement. In addition, Mitsui has entered into a deeper strategic alliance with the Company and has signed a Memorandum of Understanding (the "MoU") whereby Mitsui intends to participate as an anchor investor in future capital raises for the years to come and become a long-term significant minority shareholder in the Company. The non-binding MoU expresses the parties' joint intentions and has a total monetary scope of up to NOK 2,000 million, including the NOK 500 million subscription in the Convertible Bond Private Placement. Future investments from Mitsui will be subject to, among other things, the Company's fulfilment of commercial and operational milestones agreed between the parties in good faith.
  • On 30 March 2023, the Company successfully transferred from Euronext Growth Oslo to the main list of the Oslo Stock Exchange.
  • Hexagon Purus Systems USA LLC, a subsidiary of Hexagon Purus ASA, signed a multi-year agreement for the supply of lithium-ion battery cells with Panasonic Energy. Panasonic will supply battery cells for Hexagon Purus' proprietary battery systems for heavy-duty vehicles in North America. The supply of battery cells will commence in early 2026. As part of the supply agreement, Hexagon

Purus will prepay approximately USD 43 million (approximately NOK 450 million) through 2025, subject to the achievement of certain milestones. This prepayment will secure battery cell capacity for Hexagon Purus out of Panasonic's production facility in Kansas.

  • Opened a new engineering and manufacturing facility for battery and hydrogen storage systems in Kelowna, Canada. The 60,000 square foot manufacturing facility will support the annual production of more than 1,000 battery systems for heavy-duty vehicle applications and will employ up to 150 engineers and assembly technicians. This is Hexagon Purus' second opening of a new manufacturing facility in 2023, following the successful opening of its new hydrogen cylinder production facility in Westminster, Maryland, USA in January.
  • There have been no other significant events after the balance sheet date that have not already been disclosed in this report

Outlook

Hexagon Purus' revenue growth in the near-term continues to be mainly driven by infrastructure applications such as hydrogen distribution and refueling systems as evidenced by the revenue trends and order intake in 2022. The acquisition of Wystrach in 2021 has been transformational for the Group through the addition of capabilities to serve the rapidly growing market for hydrogen infrastructure solutions, an expanded product portfolio, a recurring base business, and vertical integration into systems design and manufacturing.

Hexagon Purus has recently entered a long-term distribution agreement with Hino Trucks to supply complete battery electric heavy-duty trucks through 2030. The potential total sales value of this contract could reach approximately USD 2 billion. This expanded agreement replaces the previously announced cooperation between Hexagon Purus and Hino to supply battery systems for multiple Hino truck platforms, and serial production is expected to commence in the end of 2024. Hexagon Purus continues to execute on the scale up required to support heavy-duty truck customers including Hino and Nikola, while pursuing other opportunities in this space. Sales cycles in the automotive space can be long and highly engineering intensive. As such, while revenue contribution from heavyduty vehicle applications has been relatively low in recent quarters, development work and project activity in this key application remain high. It is expected that revenue contribution from this application will grow in the coming years as battery and fuel cell electric vehicle platforms transition to commercial start of production.

Regulatory support favoring the Group's capabilities and product portfolio continues to grow. The REPowerEU plan presented by the European Commission in March, aims to secure Europe's energy independence by 2030. The Plan will rapidly reduce dependence on Russian fossil fuels by fast-forwarding the clean energy transition and adapting industry and infrastructure to different energy sources and suppliers. According to the European Commission, additional investments of EUR 210 billion are needed between now and 2027, including EUR 27 billion for hydrogen infrastructure. To meet the ambition of REPower EU, Hexagon Purus expects that there will be a significant need for investments in hydrogen gas storage and transportation infrastructure with several opportunities for the Company's leading hydrogen storage solutions portfolio.

The European Commission has further announced a EUR 3 billion initiative to create the European Hydrogen Bank that will guarantee the purchase of hydrogen and act as a market maker for hydrogen, bridging the gap between investments and future supply/demand.

In the U.S., the Inflation Reduction Act passed in August, aims to bring down costs and boost energy supply, cutting inflation and substantially reducing greenhouse gas emissions. Of the total USD 739 billion package, USD 369 billion is earmarked for "Energy Security and Climate Change" which would put the U.S. on a path to roughly 40% emissions reduction by 2030. Tens of billions of dollars will go toward supporting renewable energy development, such as tax credits and grants for clean fuels, including hydrogen, and clean commercial vehicles to reduce emissions from all parts of the transportation sector.

The U.S. also launched in September 2022 a USD 7 billion Regional Clean Hydrogen Hubs program (H2Hubs) to establish regional clean hydrogen hubs across the country. The program is expected to create networks of hydrogen producers, consumers and infrastructure.

With several growth initiatives underway, including building organizational capabilities and production capacity to support customer launch activity as well as expected market demand in the coming years in North America, Europe and Asia, Hexagon Purus is in the investment phase of its development. Such investments are expected to impact profitability over the near to-medium term. Global supply chains remain constrained and lead times for certain components such as high-pressure flow components, wire harness assemblies and battery cells remain extended while material costs have increased. It is not possible to predict when supply chains will normalize, but the Company continues to employ counter measures to mitigate such effects through proactive supplier management and long-term agreements, pre-purchasing of inventory and price increases.

For the full-year 2023, the Company expects revenue to grow by at least 50% year-overyear based on strong backlog and order trends. Relative EBITDA margin is expected to significantly improve year-over-year, but EBITDA will continue to be impacted by ramp-up of the organization and production facilities. Negative EBITDA for full-year 2023 is expected to widen by approximately 10% compared to full-year 2022.

The forward-looking statements made above are, by their nature, subject to significant risks and uncertainties because they relate to events and depend on circumstances that are expected to occur in the future. They are therefore not guarantees of future performance. While the statements reflect the current views and expectations of Hexagon Purus based on information currently available to it, they are subject to various assumptions, in addition to risks and uncertainties that may be outside of its control. We cannot provide any assurance that the assumptions underlying such forward-looking statements are free from errors nor accept any responsibility for the future accuracy of the opinions expressed herein, or the actual occurrence of the forecasted developments. Actual results could differ materially from those expressed or implied in forward-looking statements. Any forward-looking statements are based only on conditions as of the date on which they are made and we are under no obligation to update or alter such forwardlooking statements whether as a result of new information, future events or otherwise.

Risks and uncertainties

Hexagon Purus Group operates in markets with strict standards for quality and delivery, deviations from which could result in significant additional costs, lost sales and damage to the Group's reputation. The Group is exposed to production related risks such as production errors or shutdowns of its facilities which could have a material adverse effect on the Group's results of operations, cash flow and financial condition.

The Group is exposed to competing technologies and processes that could have a negative effect on the Group's competitive positioning, and in turn profitability and financial position.

The Group is exposed to developments in the prices and availability of its raw materials and in particular the cost of carbon fiber and lithium-ion batteries. The prices and availability of these raw materials are linked to various factors including developments in the price of oil, precursor commodities and energy and the prevailing market balance where supply is dependent on a limited number of suppliers. To mitigate the risk, the Group will from time to time enter into long-term supply agreements, locking in price and quantity. Even though the contracts are intended to mitigate supply risk, it would also potentially add risk, as they commit the Group on material and components, where actual

demand can turn out to be lower than forecasted, market prices can fall, or the development could make the committed volumes technologically less relevant.

The Group's products are subject to governmental laws and regulations, including regulations relating to quality, health and safety. The Group manufactures its products in accordance with, and its products are subject to inspection standards pursuant to, applicable regulation and requisite approvals. However, the Group cannot predict the future costs of complying with applicable regulations, standards and permits as these develop. Adoption of new laws, regulations or public requirements that impose more

stringent requirements concerning the safety aspects of Hexagon Purus' products could result in increase of compliance expenditure, suspension of production, product recalls or claims from third parties, which in each case could have a material adverse effect on the Group's business, financial position, results of operations and cash flow.

To the extent the Group does not generate sufficient cash from operations to fund its existing and future business plans, the Group may need to raise additional funds through public or private debt or equity financing to execute its growth strategy and to fund capital expenditures. Adequate sources of capital funding might not be available when needed or may only be available on unfavorable terms. If funding is insufficient at any time in the future, the Group may be unable to, inter alia, fund acquisitions, take advantage of business opportunities or respond to competitive pressures, any of which could adversely impact the Group's financial condition and results of operations.

The Group is exposed to global macroeconomic developments including the impact of inflation, supply chain constraints and rising interest rates. It is not possible to know the precise impacts of such developments and to what extent these may or may not persist. For additional information about risks and uncertainties we refer to Hexagon Purus' 2022 annual report. It is not expected that the above exposures and risks will have a material effect on the Group or its financial position in the next reporting period.

Oslo, April 22 2023

The Board of Directors of Hexagon Purus ASA

Condensed Financial Statements Group

Income statement

(NOK 1000) Note Q4 2022 Q4 2021 FY 2022 FY 2021
Unaudited Unaudited Unaudited
Continuing operations (Purus e-mobility)
Revenue from contracts with customers 3,3 368 550 257 957 958 636 505 797
Rental income 3,3 350 399 1 255 799
Other operating revenue 3,3 3 499 478 4 034 1 122
Total revenue 372 399 258 834 963 925 507 718
Cost of materials 265 595 176 044 588 525 324 566
Payroll and social security expenses 10 134 338 69 404 443 496 209 602
Other operating expenses 81 420 74 480 337 408 245 327
Total operating expenses before depreciation 481 353 319 928 1 369 430 779 395
Operating profit before depreciation (EBITDA) 3 -108 954 -61 094 -405 505 -271 777
Depreciation and impairment 5,6 25 436 19 275 95 089 53 098
Operating profit (EBIT) 3 -134 390 -80 369 -500 594 -323 874
Share of profit/loss from investments in associates 11 -7 227 -3 008 51 888 -2 957
Finance income 11 192 5 626 37 356 14 250
Finance expense 7 2 722 4 000 29 548 33 691
Profit/loss before tax from continuing operations -133 147 -81 751 -440 898 -347 273
Tax expense -2 034 -900 -9 380 -2 120
Profit/loss after tax from continuing operations -131 113 -80 851 -431 518 -345 152
Discontinued operations (CNG LDV)
Profit/loss after tax for the period from discontinued operations 3 - 23 205 - -8 552
Profit/loss after tax -131 113 -57 645 -431 518 -353 703
Attributable to:
Equity holders of the parent -131 923 -57 645 -432 328 -353 703
Non-Controlling interest 11 810 - 810 -
Earnings per share
Ordinary (NOK) -0,27 -0,35 -1,67 -1,48
Diluted (NOK) -0,27 -0,35 -1,67 -1,48
Earnings per share from continuing operations
Ordinary (NOK) -0,27 -0,25 -1,67 -1,49
Diluted (NOK) -0,27 -0,25 -1,67 -1,49

Comprehensive income statement

(NOK 1000) Q4 2022 Q4 2021 FY 2022 FY 2021
Unaudited Unaudited Unaudited
Profit/loss after tax -131 113 -57 645 -431 518 -353 703
OTHER COMPREHENVISE INCOME:
Items that will be reclassified through profit or loss in subsequent periods
Exchange differences on translation of foreign operations -15 009 -8 996 59 164 -11 553
Net of total items that will be reclassified through profit and loss in subsequent
periods -15 009 -8 996 59 164 -11 553
Total comprehensive income, net of tax -146 121 -66 641 -372 354 -365 257
Attributable to:
Equity holders of the parent -146 917 -66 641 -373 150 -365 257
Non-Controlling interest 796 - 796 -

Statement of financial position

(NOK 1000) Note 31.12.2022 31.12.2021
Unaudited
ASSETS
Property, plant, and equipment 6 494 990 267 705
Right-of-use assets 6 152 300 52 219
Intangible assets 5 802 654 752 293
Investment in associates and joint ventures 11 33 029 7 024
Non-current financial assets 9,11 80 531 -
Non-current assets 2 499 2 476
Total non-current asset's continuing
operations 1 566 003 1 081 718
Inventories 332 218 261 235
Trade receivables 9 228 930 220 286
Contracts assets (accrued revenue) 9 488 4 165
Other current assets 9 136 560 80 943
Cash and short-term deposits 9 381 705 453 398
Total current assets continuing operation 1 088 901 1 020 027
Total assets 3 2 654 903 2 101 745
(NOK 1000) Note 31.12.2022 31.12.2021
Unaudited
EQUITY AND LIABILITIES
Issued capital and share premium 12 1 568 709 1 407 170
Other equity 10 83 182 8 228
Equity attributable to holders of the parent 1 651 891 1 415 398
Non-controlling interests 11 35 731 -
Total equity 1 687 622 1 415 398
Interest-bearing loans and borrowings 9 39 358 42 126
Lease liabilities 7 132 479 31 793
Non -current provisions - 7 235
Other non-current financial liabilities 8,9 39 789 109 106
Net employee defined benefit liabilities 1 439 1 892
Deferred tax liabilities 45 543 52 231
Total non-current liabilities from continuing
operations 258 609 244 383
Trade and other payables 9 255 712 191 409
Contract liabilities 212 792 121 827
Interest-bearing loans and borrowings 9 4 673 13 635
Lease liabilities, short term 7 22 230 21 285
Income tax payable 3 290 8 178
Other current financial liabilities 8,9 75 052 -
Other current liabilities 96 699 72 747
Provisions 38 227 12 882
Total current liabilities from continuing
operations 708 673 441 963
Total liabilities 3 967 282 686 347
Total equity and liabilities 2 654 904 2 101 745

Cash flow statement

(NOK 1000) FY 2022 FY 2021
Profit before tax (incl. discontinued operations) -440 898 -355 687
Depreciation, amortization, and impairment 95 089 53 098
Net interest expense 4 501 6 968
Changes in net working capital 1) 70 318 -169 701
Other adjustments to operating cash flows -54 322 8 018
Net cash flow from operating activities -325 313 -457 304
Purchase of property, plant, and equipment -240 030 -107 711
Purchase and development of intangible assets -52 625 -37 735
Cash paid related to acquisition of subsidiary; net of cash acquired - -146 189
Investments in associated companies -41 481 -8 580
Loans to associated companies -11 989 -
Proceeds from sale of shares in associated companies - 665
Interest received 8 111 1 625
Net cash flow from investing activities -338 014 -297 923
Net repayment (-) / proceeds (+) from interest bearing loans -11 731 -11 098
Interest payments -10 141 -8 593
Repayment of lease liabilities (incl. interests) -26 127 -18 519
Net proceeds from share capital increase in parent company 593 866 -
Net proceeds from share capital increase in subsidiary (NCI contribution) 34 935 -
Net cash flow from financing activities 580 802 -38 210
Net change in cash and cash equivalents -82 525 -793 437
Net currency exchange differences on cash 10 832 483
Cash and cash equivalents beginning of period 453 398 1 246 351
Cash and cash equivalents end of period 381 705 453 398

1) Net working capital refers to inventories, trade receivables, contract assets, trade payables and contract liabilities

Statement of changes in equity

Equity
attributable to
(NOK 1000) Note Issued Share Other paid-in Foreign currency holders of the Non-controlling
capital premium capital translation reserve parent interest Total equity
As of 1 January 2021 22 909 1 594 022 372 11 717 1 629 021 - 1 629 021
Profit for the period -353 704 -353 704 -353 704
Other comprehensive income -11 553 -11 553 -11 553
Total comprehensive income - -353 704 - -11 553 -365 258 - -365 258
Share-based payments 7 691 7 691 7 691
Changes in paid-in capital 444 143 628 144 072 144 072
Other changes -129 -129 -129
As of 31 December 2021 23 354 1 383 817 8 063 165 1 415 398 - 1 415 398
Equity
attributable to
Issued Share Other paid-in Foreign currency holders of the Non-controlling
capital premium capital translation reserve parent interest Total equity
As of 1 January 2022 23 354 1 383 817 8 063 165 1 415 399 - 1 415 398
Profit for the period -432 328 -432 328 810 -431 518
Other comprehensive income 59 179 59 179 -14 59 164
Total comprehensive income - -432 328 - 59 178 -373 150 796 -372 381
Share-based payments 15 776 15 776 15 776
Share capital increase 2 474 597 526 600 000 600 000
Share capital increase in subsidiary - 34 935 34 935
Transaction costs - -6 134 -6 134 -6 134
As of 31 December 2022 12 25 829 1 542 880 23 839 59 343 1 651 891 35 731 1 687 621

Note 1: General information and basis for preparation

The condensed consolidated interim financial statements for the fourth quarter 2022, which ended 31 December, comprise Hexagon Purus ASA and its subsidiaries (together referred to as "the Group"). Hexagon Purus ASA, the parent of Hexagon Purus Group, is a public limited liability company with its registered office in Norway. The company's headquarters are at Korsegata 3B, 6002 Aalesund, Norway. Hexagon Purus ASA is listed on Oslo Stock Exchange, Oslo, under the ticker HPUR.

The condensed consolidated interim financial statements have been prepared in accordance with IAS 33 Interim Financial Reporting. For a more detailed description of accounting principles, reference is made to the consolidated financial statements for the year ended 31 December 2022, available on the Company's website www.hexagonpurus.com/investors

The accounting principles used in the preparation of these interim accounts are the same as those applied to the annual consolidated financial statements referred to above. The Group has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective.

These condensed consolidated interim financial statements were approved by the Board of Directors on 22 April 2023.

Note 2: Estimates

The preparation of the interim accounts entails the use of valuations, estimates and assumptions that affect the application of the accounting policies and the amounts recognized as assets and liabilities, income, and expenses. The actual results may deviate from these estimates. The material assessments underlying the application of the Group's accounting policy and the main sources of uncertainty are the same as for the consolidated accounts for 2022.

Note 3: Revenue from contracts with customers

(NOK 1000) Q4 2022 Q4 2021 FY 2022 FY 2021
EXTERNAL CUSTOMERS
Sale of cylinders and systems
263 442 211 370 768 008 440 431
Sale of services and funded development 61 996 40 906 141 706 54 498
Other revenues 3 240 567 4 034 1 054
Contracts with customers at a point in time 328 677 252 843 913 748 495 983
Sale of cylinders and systems 2 302 1 165 4 882 3 441
Sale of services and funded development
Other revenues
Contracts with customers over time 2 302 1 165 4 882 3 441
Revenue from contracts with external customers 330 979 254 008 918 630 499 424
Sale of cylinders and systems 40 849 1 274 42 351 2 736
Sale of services and funded development 221 4 694 1 689 4 691
Other revenues 0 -1541 0 68
Rental income 350 399 1 255 799
Contracts with related parties 41 420 4 826 45 295 8 294
Total revenue 372 399 258 834 963 925 507 718
TYPE OF GOODS OR SERVICE
Sale of cylinders and systems 306 593 213 809 815 241 446 608
Sale of services and funded development 62 216 44 148 143 395 59 189
Other revenues 3 240 478 4 034 1 122
Rental income 350 399 1 255 799
Total revenue from contracts with customers 372 399 258 834 963 925 507 718
TIMING OF REVENUE RECOGNITION
Goods transferred at a point in time 328 677 252 843 913 748 495 983
Services transferred over time 2 302 1 165 4 882 3 441
Transactions with related parties 41 070 4 427 44 040 7 495
Rental income 350 399 1 255 799
Total revenue from contracts with customers 372 399 258 834 963 925 507 718

Note 4: Operating segments

(NOK 1000) Q4 2022 Q4 2021 FY 2022 FY 2021
PURUS
Revenues from contracts with customers 368 550 257 957 958 636 505 797
Rental income 350 399 1 255 799
Other operating revenue 3 499 478 4 034 1 122
Total revenue 372 399 258 834 963 925 507 718
Segment operating profit before depreciation (EBITDA) -108 954 -61 094 -405 505 -271 777
Segment operating profit (EBIT) -134 390 -80 369 -500 594 -324 875
Segment assets 2 654 903 2 101 745 2 654 903 2 101 745
Segment liabilities 967 282 686 347 967 282 686 347
CNG LDV (presented as discontinued from 01.01.2021)
Revenues from contracts with customers - 32 962 196 850
Other operating revenue - 44 582 - 2 801
Total revenue - 77 544 - 199 651
Segment operating profit before depreciation (EBITDA) - -10 964 - -12 672
Segment operating profit (EBIT) - -13 079 - -30 196
Segment assets - - - - -
Segment liabilities - - - - -

For management purposes, the assessment is that the Purus Group has historically had two operating segments: Purus and CNG LDV. However, the CNG LDV division was classified as discontinued operations in 2021 and is shown as a part of operating segment only for comparability. As of 1 October 2021, the CNG LDV division was sold, and Purus does not have defined segments for 2022.

Note 5: Intangible assets

2022 2021
(NOK 1000) Goodwill Customer
relationships
Other
intangible
assets1)
Total 2022 Goodwill Customer
relationships
Other
intangible
assets1)
Total 2021
Carrying value as of 01.01 497 587 105 707 149 000 752 294 323 107 37 427 54 563 415 097
Additions - - 52 625 52 625 187 369 78 654 104 209 370 232
Disposals - - -1 662 -1 662
Amortizations - -19 163 -17 742 -36 906 - -9 608 -8 243 -17 852
Currency translation differences 26 154 4 773 3 713 34 640 -12 889 -766 133 -13 520
Carrying value as of 31.12 523 741 91 317 187 596 802 654 497 587 105 707 149 000 752 294

1) Other intangible assets consist of technology and development in addition to patents and licenses

Intangible assets are reviewed each quarter for impairment indicators, including market changes, technological development, order backlog and other changes that might potentially reduce the value of the assets. For goodwill, impairment tests are performed annually in the fourth quarter, or immediately in the case of an impairment indicator.

Goodwill is tested using the value in use approach determined by discounting expected future cash flows. If the impairment test reveals that an asset's carrying amount is higher than its value in use, an impairment loss will be recognized.

During the quarter there were no indicators of impairment of intangible assets.

Note 6: Tangible assets

2022 2021
(NOK 1000) Property, plant, and
equipment
Right of use assets Total 2022 Property, plant, and
equipment
Right of use assets Total 2021
Carrying value as of 01.01 267 705 52 219 319 924 76 635 30 457 107 093
Additions 240 030 122 472 362 502 275 827 40 244 316 069
Disposals -2 806 -2 520 - 5 327 -12 873 -12 946
Depreciations -33 630 -24 404 -58 034 -72 226 -18 116 -90 341
Impairments -149 - -149 - - -
Currency translation differences 23 839 4 533 28 374 342 -367 49
Carrying value as of 31.12 494 990 152 300 647 290 267 705 52 219 319 924

Note 7: Lease liabilities

(NOK 1000) 2022 2021
Carrying value as of 01.01 53 079 31 039
New lease liabilities recognized in the period 122 472 40 244
Derecognition -2 547 -
Cash payments for the principal portion of the lease liability -23 656 -17 606
Cash payments for the interest portion of the lease liability -2 471 -913
Interest on lease liabilities 2 471 913
Currency translation differences 5 362 -598
Carrying value as of 31.12 154 710 53 079

Lease liabilities are to a large extent related to lease agreements of office- and production premises, in addition to some vehicles, machinery, and equipment.

Note 8: Other financial liabilities

(NOK 1000) Carrying
value
01.01.2022
Fair value
adjustment
Additions
in the
period
Settlements
in the
period
Reclassifications
non-current to
current
Currency
translation
differences
Carrying
value
31.12.2022
Deferred payment from business combination (amortized cost) 33 390 - - - -42 280 -1 209 -
Contingent consideration from business combinations (fair value) 65 616 - - - -27 040 1 213 39 789
Total other non-current financial liabilities 109 106 - - - -69 321 4 39 789
Deferred payment from business combination (amortized cost) - - - - 42 280 3 496 45 776
Contingent consideration from business combinations (fair value) - - - - 27 040 2 235 29 275
Total other current financial liabilities - - - - 69 321 5 731 75 052

The table above shows the movements of current and non-current other financial liabilities in the period. Deferred payments and contingent consideration are related to the acquisition of Wystrach and Wyrent as of November 11th, 2021.

The fair value of Wystrach at the time of acquisition was NOK 399.9 million and the acquisition was settled with NOK 137.5 million in cash, NOK 133.5 million in consideration shares in Hexagon Purus ASA, NOK 33.0 million in deferred payment (seller's credit with 5% p.a. interest) and contingent consideration of NOK 65.6 million expected to be settled in cash in 2023 and 2024 based on 2021, 2022 and 2023 Wystrach revenue and EBITDA targets. The deferred payment (seller's credit) with a closing balance of NOK 45.8 million is payable in 2023 and is presented as "Other current financial liabilities". Contingent considerations amount to NOK 69.0 million, where NOK 29.3 million is classified as current.

The fair value of the contingent liabilities is assessed each quarter. At the end of the reporting period, there have been no changes to the fair value assessment.

Note 9: Financial assets and financial liabilities

The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

Level 1: Quoted (unadjusted) prices in active markets for identical assets or liabilities

Level 2: Level 2 relates to currency- and interest rate swaps and is estimated based on calculating the net present value of future cash flows, using interest rate curves, exchange rates and currency spreads as of the balance sheet date.

Level 3: Level 3 relates to contingent liabilities arising from acquisitions and unlisted equity investments at fair value. The fair value of contingent liabilities is estimated based on expected achievement of earn-out targets and corresponding payments of acquired companies. The fair value of unlisted equity investments is estimated by using commonly used valuation techniques or by implicit valuations derived from private placements undertaken in the companies.

The Group recognizes other non-current financial liabilities and current financial liabilities at fair value. All other financial asset and liabilities are recognized at amortized cost.

CARRYING AMOUNT AND FAIR VALUE OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES

2022 2021
31.12.2022 31.12.2022 31.12.2021 31.12.2021
(NOK 1000) Level Carrying value Fair value Carrying value Fair value
FINANCIAL ASSETS
Other non-current financial assets1) 3 67 339 67 339 - -
Other non-current assets 3 13 193 13 193 2 476 2 476
Other current financial assets 2 24 660 24 660 36 712 36 712
Total financial assets 105 192 105 192 39 188 39 188
Total current 24 660 24 660 36 712 36 712
Total non-current 80 532 80 532 2 476 2 476
FINANCIAL LIABILITIES
Loan from financial institutions 2 44 030 39 028 55 761 55 761
Other non-current financial liabilities 2) 3 39 789 39 789 109 106 109 106
Other current financial liabilities 2) 3 75 051 75 051 - -
Total financial liabilities 158 871 153 868 164 867 164 867
Total current 79 724 74 721 13 635 13 635
Total non-current 79 147 79 147 151 232 151 232

1) Other non-current financial assets include an equity investment in Norwegian Hydrogen AS, following the loss of significant influence and derecognition of the investment as an associated company in Q3 2022. Hexagon Purus ASA currently holds a 14,2 % shareholding in the Company, and the investment is recognized at fair value of NOK 67,3 million following the valuation from the latest capital raise in the Company (Note 11).

2) Includes contingent considerations from Wystrach acquisition, see note 8 for more information.

Note 10: Share-based payments

RSU key PSU executive RSU executive PSU management RSU key
personnel management management personnel
Program issued 13.12.2020 13.12.2020 13.12.2020 18.05.2022 15.06.2022
Program expire 30.03.2024 30.03.2024 30.03.2024 03.03.2025 03.03.2025
Strike price 0 0 0 0 0
Fair value (at grant date) 27.30 20.83 27.30 33.99 27.76
Instruments 2021
Opening balance, number of instruments 385 000 321 232 210 621 - -
Grants 91 000 - - - -
Lapsed/cancelled -15 000 - - - -
Closing balance 561 000 321 232 210 621 - -
Instruments 2022
Opening balance, number of instruments 561 000 321 232 210 621 -
Grants 5 000 - - 988 686 91 350
Lapsed/cancelled -30 000 - - - -6 090
Closing balance 536 000 321 232 210 621 988 686 85 260

The Company has four share-based long-term incentive plans. The first plan is a management investment program with Performance Share Units ("PSUs") matching. This plan is limited to four members of the executive management team. Each eligible employee will in 2023 be entitled to up to three new shares in the Company per share invested, at no consideration, provided he or she is still employed in the Company at such date. The entitlement depends on fulfilment of three criteria, one per matching share. One criterion is tied to increase in share price, one is tied to Company performance criteria, and one is tied to continued employment. On 13 December 2020, the Company announced that key members of Hexagon Purus' executive management team exercised their right to purchase the maximum number of shares allowable in the management investment program, equal to a total number of 210 621 shares. As part of this management investment program, the Company awarded up to 321 232 related PSUs and 210 621 Restricted Stock Units ("RSUs") to the executives. The instruments are non-transferable and will vest in 2023 when the Board of Directors approve the annual accounts for 2023, subject to satisfaction of the applicable vesting conditions. Each vested instrument will give the holder the right to receive one share in the Company.

The second share-based long term incentive plan is an employee RSU program, where 536 000 RSUs are currently issued to key personnel and management employees of the Group. Subject to satisfaction of the applicable vesting conditions, each RSU entitles eligible employees to receive such number of Hexagon Purus shares as corresponds to the number of RSUs vested at the date on which the Company's Board of Directors approves the Company's annual accounts for the financial year of 2023.

The third share-based long term incentive plan is an employee PSU program, where 988 686 PSUs are currently issued to key personnel and management employees of the Group. Subject to satisfaction of the applicable vesting conditions and share price development, each PSU entitles eligible employees to receive up to twice the number of Hexagon Purus shares as corresponds to the number of PSUs vested on March 3, 2025.

The fourth share-based long term incentive plan is an employee RSU program, where 85 260 RSUs are currently issued to key personnel of the Group. Subject to satisfaction of the applicable vesting conditions, each RSU entitles eligible employees to receive such number of Hexagon Purus shares as corresponds to the number of RSUs on March 3, 2025.

The fair value of the RSUs and PSUs are calculated on the grant date, using the Black-Scholes model and Monte Carlo simulation, and the cost is recognized over the service period. Cost of the RSU and PSU schemes, including social security, was NOK 15.8 million year-to-date 2022 (NOK 7.7 million as of 31 December 2021). The unamortized fair value of all outstanding RSUs and PSUs as of 31 December 2022 is estimated to be NOK 38.0 million (NOK 18.8 million as of 31. December 2021). There are no cash settlement obligations.

Note 11: Investments in associates

Business Ownership share Ownership share Accounting method
Company Country segment 31.12.2021 31.12.2022
Norwegian Hydrogen AS 1) Norway Purus 17,7% 14,2% Equity method / fair value1)
Cryoshelter LH2 GmbH 2) Austria Purus 0,0% 40,0% Equity method
CIMC-Hexagon Hydrogen Energy Systems Ltd.3) Hong Kong Purus 0,0% 49,0% Equity method
Hyon AS3) Norway Purus 0,0% 0,0% Equity method

1) Classified as an associated company and accounted for using the equity method in the period 01.01 - 31.08.22. As of 01.09, the investment is classified as an equity instrument at fair value 2) Acquired on 01.08.2022 and classified as an associated company effective from the same date

3) Entity legally established in July 2022 and classified as an associated company effective from the same date

3) On 28.06.2021, Hexagon Purus ASA sold all shares in Hyon AS

Reconciliation of associated companies in the P&L

CIMC Hexagon
Norwegian Cryoshelter LH2 Hydrogen Energy
Companies Hydrogen AS GmbH Systems Ltd. Hyon AS Total
(NOK 1000) 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021
Share of profit after tax - 2 835 -2 922 -2 439 - -5 988 - - - 35 - 11 272 -2 957
PPA amortizations associated companies - - - - - - - - - -
Gain on derecognition as associated company 63 159 - - - - - - - 63 159 -
Total profit/loss from investments in associated companies 60 313 -2 922 -2 439 - -5 988 - - - 35 51 887 - 2 957
as per 31.12

Balance sheet reconciliation

CIMC Hexagon
Norwegian Cryoshelter LH2 Hydrogen Energy
Companies Hydrogen AS GmbH Systems Ltd. Hyon AS Total
(NOK 1000) 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021
Carrying value as at 01.01 7 024 2 066 - - - - - - 7 024 2 066
Purchase of shares - - 33 738 - - - - - 33 738 -
Share capital contribution - 7 880 - - 7 743 - - 700 7 743 8 580
Share of profit after tax incl. PPA amortizations - 2 845 -2 922 -2 439 - -5 988 - - - 35 - 11 272 -2 957
Dividends - - - - - - - - -
Sale of shares - - - - - - - - 665 - - 665
Derecognition – loss of significant influence - 4 179 - - - - - - - - 4 179 -
Currency translation effects - -41 16 - -25 -
Carrying value as at 31.12 - 7 024 31 258 - 1 771 - - - 33 029 7 024

Norwegian Hydrogen

Hexagon Purus ASA has been a shareholder of Norwegian Hydrogen AS since its inception in 2020. In December 2021, Norwegian Hydrogen conducted a capital raise in which Hexagon Purus' ownership was diluted from 21,0% to 17,7%. Despite having an ownership less than 20%, the Company has in the period from 01.01.22 to 31.08.2022 retained its classification of Norwegian Hydrogen as an associated company due to an assessment of still having significant influence in the entity. Important factors for this assessment have been Board of Directors representation and being the 2nd largest shareholder of the entity in the same period. At 31.12.2022, Hexagon Purus ownership share in Norwegian Hydrogen AS was 14%, as a result of a second private placement in the company in October 2022.

On 27.08.2022, Norwegian Hydrogen AS announced that Mitsui & Co. Ltd invested NOK 70 million in a private placement, thus reducing Hexagon Purus' ownership from 17,7% to 15,0%. Following this private placement, the Company assessed that significant influence is no longer present, as the Company is now the 3rd largest shareholder and the fact that the new shareholder has received two additional seats in the Board of Directors, resulting in diluted decisional and strategic influence. The Company has consequently from this date reclassified the investment to a financial asset (equity instrument) measured at fair value. The fair value of Hexagon Purus' ownership in Norwegian Hydrogen, derived from the said capital raise, is NOK 67,3 million, resulting in an accounting gain of NOK 63,1 million, recognized in profit/loss from investments in associates in the income statement.

Cryoshelter LH2 GmbH

In April 2022, Hexagon Purus ASA announced an agreement to acquire a 40% stake in Cryoshelter LH2 GmbH, an Austria based company specialized in the development of cryogenic tank technology. Upon closing, Cryoshelter GmbH was demerged into two separate legal entities, Cryoshelter BioLNG GmbH and Cryoshelter LH2 GmbH, where the latter company will focus on cryogenic storage of liquid hydrogen.

On 01.08.2022, Hexagon Purus made a EUR 3.3 (NOK 33) million investment and acquired 40% of the shares in Cryoshelter LH2 GmbH, with options to acquire the remaining shares over the next 5-10 years. As of 01.08.2022, the said options do not give rise to any de-facto control and the investment is consequently accounted for by using the equity method effective from 01.08.2022. The table below shows the initial assessment of the purchase price allocation of the entity per 01.08.2022.

Purchase price allocation Cryoshelter*(NOK 1000) Cryoshelter LH2 GmbH
Non-current assets 203
Current assets 5 150
Non-current liabilities 3 946
Current liabilities 2 951
Equity as per 01.08.2022 - 1 543
Hexagon's share of equity (40%) - 617
Intangible assets (technology)1) 19 702
Goodwill 14 654
Hexagon's carrying value of the investments 33 738

1) The technology for liquid hydrogen tanks is still in the development phase.

CIMC-Hexagon Hydrogen Energy Systems Ltd.

In 2021, Hexagon Purus entered into joint venture agreements with CIMC Enric, encompassing cylinder and systems production for Fuel Cell Electric Vehicles (FCEVs) and hydrogen distribution in China and Southeast Asia.

In July 2022, CIMC-Hexagon Energy Systems Ltd. was legally established and registered in Hong Kong, where Hexagon Purus HK Holding AS, a wholly owned subsidiary of Hexagon Purus ASA, subscribed for 49% of the shares and hold an equal amount of voting rights. CIMC Enric holds the remaining 51% of the shares. The entity is classified as an associate company and accounted for via the equity method as of 01.07.2022.

Note 12: Share capital and share premium

31.12.2022 31.12.2021
Ordinary shares of NOK 0.10 (2022/2021) each 258 278 937 233 536 669
Total number of shares 258 278 937 233 536 669

The Company's share capital consists of one class of shares and is fully paid-up.

Changes in share capital and share premium

Number of shares Share capital (NOK 1 000) Share premium (NOK 1 000)
31.12.2022 31.12.2021 31.12.2022 31.12.2021 31.12.2022 31.12.2021
Ordinary shares - Issued and paid 1 January 233 536 669 229 092 239 23 354 22 909 1 383 817 1 594 022
Issued new share capital 24 742 268 4 444 430 2 474 444 597 526 143 628
Transaction cost -6 134
Other Changes -129
Issued and paid, end of period 258 278 937 233 536 669 25 828 23 354 1 975 208 1 737 521
Transferred to share premium -432 328 -353 704
Net total 1 542 880 1 383 817

On 23 November 2021 related to the closing of the Wystrach acquisition, the company issued 3 333 330 consideration shares to the previous shareholders of Wystrach GmbH.

On 15 February 2022 related to a private placement the company issued 23 732 268 new shares at a price per share of NOK 23.25. The Company raised approximately NOK 600 million in gross proceeds.

On 1 March 2023, the Company issued 18 518 519 new shares in a private placement at the price of 27.00 per share. The Company raised approximately NOK 500 million in gross proceeds.

The company does not hold any treasury shares.

Note 13: Events after the balance sheet date

  • Opened a new hydrogen cylinder manufacturing facility in Westminster, Maryland (U.S.). The 60,000 square foot facility will support the annual production of up to 10,000 cylinders for heavy duty vehicle applications and will employ up to 150 skilled workers. The new facility expands cylinder production capabilities and capacity and allows for further expansion
  • Received an order for mobile hydrogen refueling stations and stationary storage from Deutsche Bahn, a leading provider of mobility and logistics services worldwide and the number one railway operator in Europe. The value of the order is approximately EUR 2.5 million (approximately NOK 25 million)
  • Selected by New Flyer for the third consecutive year, to provide Type 4 hydrogen storage cylinders for the serially produced Xcelsior CHARGE H2 ™ fuel cell electric bus. The total value of the contract is estimated to be approximately USD 2.5 million (approximately NOK 25 million)
  • Signed an exclusive distribution agreement with Hino Trucks, where Hexagon Purus will produce complete battery electric heavy-duty trucks for the U.S. market, distributed exclusively through select qualifying dealers in Hino's network. The potential total value over the course of this agreement could reach approximately USD 2.0 billion. The distribution agreement replaces the binding letter of intent (BLOI) from Hino announced on 11 February 2022
  • Successfully raised NOK 1,300 million in gross proceeds on March 1, 2023 through a combination of a NOK 800 million convertible bond and NOK 500 million equity private placement of 18 518 519 new shares
  • On 30 March 2023, the Company successfully transferred from Euronext Growth Oslo to the main list of the Oslo Stock Exchange.
  • Hexagon Purus Systems USA LLC, a subsidiary of Hexagon Purus ASA, signed a multi-year agreement for the supply of lithium-ion battery cells with Panasonic Energy. Panasonic will supply battery cells for Hexagon Purus' proprietary battery systems for heavy-duty vehicles in North America. The supply of battery cells will commence in early 2026. As part of the supply agreement, Hexagon Purus will prepay approximately USD 43 million (approximately NOK 450 million) through 2025, subject to the achievement of certain milestones. This prepayment will secure battery cell capacity for Hexagon Purus out of Panasonic's production facility in Kansas.
  • Opened a new engineering and manufacturing facility for battery and hydrogen storage systems in Kelowna, Canada. The 60,000 square foot manufacturing facility will support the annual production of more than 1,000 battery systems for heavy-duty vehicle applications and will employ up to 150 engineers and assembly technicians. This is Hexagon Purus' second opening of a new manufacturing facility in 2023, following the successful opening of its new hydrogen cylinder production facility in Westminster, Maryland, USA in January.

There have been no other significant events after the balance sheet date that have not already been disclosed in this report.

Shareholder information

A total of 98 930 017 shares in Hexagon Purus ASA (HPUR) were traded on Euronext Growth Oslo during the fourth quarter of 2022. The total number of shares in Hexagon Purus ASA as of 31 December 2022 was 258 278 936 (par value NOK 0.10). In the quarter, the share price moved between NOK 17.46 and NOK 27.60, ending the quarter at NOK 20.07. The price as of 31 December 2022 implies a market capitalization of NOK 5.3 billion for the Company.

20 largest shareholders as per 31 December 2022 Number of shares Share of 20 largest Share of total Type Citizenship
HEXAGON COMPOSITES ASA 189 300 496 78.96% 73.29% Ordinary Norway
CLEARSTREAM BANKING S.A. 20 123 019 8.39% 7.79% Nominee Luxembourg
MITSUI & CO LTD 5 204 029 2.17% 2.01% Ordinary Japan
Deutsche Bank Aktiengesellschaft 4 525 609 1.89% 1.75% Nominee Germany
FLAKK COMPOSITES AS 3 027 799 1.26% 1.17% Ordinary Norway
Citibank Europe plc 2 508 592 1.05% 0.97% Nominee Ireland
MP PENSJON PK 2 405 698 1.00% 0.93% Ordinary Norway
Nordnet Bank AB 1 636 317 0.67% 0.62% Nominee Sweden
The Bank of New York Mellon SA/NV 1 568 704 0.65% 0.61% Nominee United Kingdom
UBS Switzerland AG 1 462 050 0.61% 0.57% Nominee Switzerland
BRØDR. BØCKMANN AS 1 363 120 0.57% 0.53% Ordinary Norway
The Bank of New York Mellon SA/NV 1 230 208 0.51% 0.48% Nominee United Kingdom
The Bank of New York Mellon SA/NV 984 120 0.41% 0.38% Nominee Belgium
State Street Bank and Trust Comp 831 287 0.35% 0.32% Nominee United States
KTF FINANS AS 756 950 0.32% 0.29% Ordinary Norway
Skandinaviska Enskilda Banken AB 700 444 0.29% 0.27% Ordinary Sweden
Carnegie Investment Bank AB 566 788 0.24% 0.22% Nominee Sweden
SIX SAF AG 545 022 0.23% 0.21% Nominee Switzerland
Saxo Bank A/S 545 021 0.23% 0.21% Nominee Denmark
State Street Bank and Trust Comp 504 563 0.21% 0.20% Nominee United States
Total of 20 largest shareholders 239 789 836 100.00% 92.82%
Remainder 18 498 101 7.18%
Total 258 278 937 100,0 %

Forward-looking statements

This quarterly report (the "Report") has been prepared by Hexagon Purus ASA ("Hexagon Purus" or the "Company"). The Report has not been reviewed or registered with, or approved by, any public authority, stock exchange or regulated marketplace. 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 Report and/or the statements set out herein. This Report is not and does not purport to be complete in any way. The information included in this Report 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 Report, 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 Report 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 Euronext Growth or press releases. This Report has been prepared for information purposes only. This Report 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 Report in or into any jurisdiction where such distribution may be unlawful, is prohibited. This Report speaks as of 22 April 2023, and there may have been changes in matters which affect the Company subsequent to the date of this Report. Neither the issue nor delivery of this Report 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 Report. This Report is subject to Norwegian law, and any dispute arising in respect of this Report is subject to the exclusive jurisdiction of Norwegian courts with Oslo City Court as exclusive venue. By receiving this Report, you accept to be bound by the terms above.

Hexagon Purus ASA Korsegata 4B, 6002 Ålesund, Norway www.hexagonpurus.com

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