Hexagon Composites

Quarterly Report • Nov 7, 2024

Q3 2024

A word from the CEO

Strong commercial momentum and operational efficiency drive record-high EBITDA

We delivered a strong third quarter, achieving revenues of NOK 1 250 (1 148) million and a record-high EBITDA of NOK 184 (120) million, resulting in an EBITDA margin of 15% (10%).

The strong results were driven by consistently solid deliveries from the Mobile Pipeline business and increased volumes of fuel systems for heavy-duty natural gas trucks. Greater volumes, along with operational improvements and favorable raw material prices, increased plant utilization and contributed to improved margins.

High activity in RNG fuel systems with a number of new adopters coming online

The introduction of Cummins' new X15N engine enables natural gas trucks to have parity with diesel in both power and range - tripling Hexagon's addressable market for fuel systems.

In Q3, we saw a nearly 40% increase in heavy duty truck sales compared to Q2, despite overall headwinds in the freight industry caused by overcapacity.

ln addition to a substantial order for renewable natural gas (RNG) fuel systems from a major refuse company, we recently secured fuel system sales worth USD 4.3 million from over 30 leading Class 8 fleets testing the new X15N engine. Notably, 40% of these fleets are new adopters of RNG/CNG (compressed natural gas). Following on the heels of piloting activity, the breadth of fleets placing new orders, and the continued high quoting activity, signifies that the market is embracing this technology as expected.

Continued strong performance in Mobile Pipeline

Hexagon Agility's Mobile Pipeline business continued its growth trajectory with another strong quarter in both top-line and bottom-line performance. Sustained high demand is driven by the economic competitiveness of RNG/CNG relative to conventional energy like diesel, as well as customers' decarbonization targets.

Hexagon Purus fully funded

In October, Hexagon Purus successfully raised NOK 1 billion with participation from Hexagon Composites and Mitsui. The capital raise is intended to fully fund the company well past the point of cash flow break-even. Hexagon Purus has delivered remarkable growth in the past years, and we remain committed to be a part of the company's continued success .

Looking ahead

The company's robust Q3 performance, coupled with the anticipated rise in demand for sustainable solutions in heavy-duty transport and gas distribution, lays a strong foundation for future success.

Looking ahead, Hexagon is in a pole position to capitalize on significant growth opportunities in the renewable gas sector. We remain confident in our ability to achieve our goals both in the short and long term.

Best regards,

Jon Erik Engeset CEO, Hexagon Composites

Highlights Q3 2024 and after balance sheet date

• Record-high EBITDA with a 15% margin
• · Significant performance improvements and increased heavy-duty truck activity in Hexagon Agility's fuel systems business
• · Successful equity private placement of NOK 300 million, further bolstering the financial position with NOK ~1.6 billion in liquidity reserves at quarter-end
• X15N initial orders from over 30 fleets
• Participation of NOK 383 million in Hexagon Purus' successful capital raise of NOK ~1 000 million

	Third quarter		Year to date			Full year
(NOK millions)	2024	2023	2022	2024	2023	2022	2023	2022
Hexagon Agility Revenue EBITDA EBITDA margin	1 220 203 17%	1 104 125 11%	930 45 5%	3 226 408 13%	3 113 271 9%	2 478 160 6%	4 321 381 9%	3 478 209 6%
Hexagon Digital Wave Revenue EBITDA EBITDA margin	39 O 0%	35 -5 -14%	30 3%	125 0 0%	121 - 2 - 2%	70 i - 1%	179 8 4%	116 7 6%
Corporate functions and eliminations 11 Revenue EBITDA	-9 19	の O	4 14	2 - 9	21 -2	16 13	27 -23	18 9
Hexagon Group Revenue EBITDA EBITDA margin	1 250 184 15%	1 148 120 10%	963 ୧୦ 6%	3 344 380 11%	3 254 266 8%	2 565 172 7%	4 526 366 8%	3 612 224 6%

Financial summary

Hexagon Group

On 3 June 2024, Hexagon sold its LPG composite cylinder business, Hexagon Ragasco, to Worthington Enterprises. Historical financial figures for the Hexagon Group have been re-presented for comparability of continuing operations. Following the sale of Hexagon Ragasco, continuing operations comprise the operating segments Hexagon Agility and Hexagon Digital Wave. Historical financials of Hexagon Ragasco are presented net in the statement of income under discontinued operations – together with the gain from the sale which amounted to net NOK 677 million.

Furthermore, on 29 May 2024, Hexagon acquired a non-controlling 49% stake in Worthington Enterprises' Sustainable Energy Solutions (SES) business, a leading European supplier of high-pressure cylinders and systems for storage and distribution of compressed natural gas, hydrogen and industrial gases, with production facilities in Austria, Poland and Germany. The investment in SES has been accounted for by use of the equity method from 29 May and represents an associated company of the Group together with Hexagon Purus and Cryoshelter BioLNG.

Operating results from continuing operations

In the third quarter of 2024, Hexagon Group (excluding Hexagon Ragasco) reported combined revenues of NOK 1 250 (1 148) million, and a record high EBITDA of NOK 184 (120) million for an EBITDA margin of 15% (10%). The Group margin is driven by Hexagon Agility, delivering 17% (11%) EBITDA-margin from a much-improved performance in the heavy-duty fuel systems business on top of recurring strong performance in the Mobile Pipeline distribution business. See segment results section for further details.

On a year-to-date basis, Hexagon Group (excluding Hexagon Ragasco) generated NOK 3 344 (3 254) million in revenues and NOK 380 (266) million in EBITDA for an EBITDA margin of 11% (8%).

Profit/loss from continuing operations

Profit/loss before taxes from continuing operations in the third quarter was NOK 56 (162) million, of which NOK -87 (-91) million was related to share of losses from investments in associates, and NOK 30 (-137) million in other net financial items. Losses from investments in associates were largely related to Hexagon Purus.

On a year-to-date basis, profit before taxes from continuing operations was NOK -216 (-211) million, heavily impacted by share of losses from associates of NOK -264 (-98) million (predominantly from Hexagon Purus'), net interest expenses of NOK 106 (120) million, and fair value development of Hexagon Purus total return swap (TRS) of NOK +8 (-91) million. See also note 4 for further details of net financial items.

Profit/loss from discontinued operations

Profit/loss from discontinued operations relates to Hexagon Ragasco which was sold to Worthington Enterprises on 3 June 2024, and Hexagon Purus which was deconsolidated as an operating entity on 29 June 2023. In 2024, discontinued operations relate solely to Hexagon Ragasco, while 2023 figures also include financials related to Hexagon Purus. The net gain from the sale of Hexagon Ragasco recognized in Q2 2024 amounted to NOK 677 million. Reference is made to note 14 for further details and financials from discontinued operations.

Total profit/loss

Adding the profits/losses from continuing operations with the profits/losses from discontinued operations, year-to-date total profit before taxes for the Group was NOK 479 (1 911) million.

Balance sheet development

At the end of the third quarter, the Group balance sheet amounted to NOK 7 284 million compared to NOK 6 684 million at the end of the second quarter. The change in total assets during the quarter is largely explained by the NOK 300 million equity raise made in August 2024 and recognition of a new right-of-use lease asset commissioned in Salisbury, North Carolina, the location for new cylinder capacity expansion.

Following the sale of Hexagon Ragasco in Q2 2024 and the NOK 300 million equity raise in August, the financial position and flexibility of the Group has strengthened significantly. At the end of the quarter, interest-bearing debt amounted to NOK 1 090 million and net Interest-bearing debt was NOK 573 million, compared to NOK 753 million at the end of the second quarter, and NOK 1 526 million at the end of the first quarter.

Cash flow and liquidity

Net cash flow from operating activities in the third quarter was NOK 14 million (140) million. The slower cash conversion was largely due to higher net operating working capital in Hexagon Agility. Net cash flow from investing activities was NOK -54 million, of which NOK 90 million was related to capex with some other offsetting net-positive effects. Net cash flow from financing activities was NOK 224 million in the quarter, explained by net proceeds from equity raise of NOK 291 million offset by interest- and lease payments of NOK 66 million in total.

The reported cash flow statement for the third quarter of last year is not comparable with the current quarter's cash flows as Hexagon Ragasco's cash flows are included in last year's reported cash flows. Similarly, on a year-to-date basis, the reported cash flow for 2024 includes Hexagon Ragasco's cash flows up to and including May 2024, and the reported cash flow for 2023 includes Hexagon Purus' cash flows up to and including June 2023. The reported cash flow statements are thus not comparable with the current Group structure. Reference is made to the consolidated cash flow statement for further details.

Unused credit facilities at the end of the quarter amounted to NOK 1100 million, translating to a liquidity reserve of NOK 1617 million. The Board considers the liquidity and the financial position of the Group as strong.

Key developments during the quarter

• In July, Hexagon Agility received an order for Mobile Pipeline TITAN-modules from a global leading industrial gas company worth USD 12.8 million (approx. NOK 135 million)
• In August, Hexagon Agility announced a significant order of USD 18.7 million for RNG fuel systems from major refuse fleet in North America
• On 20 August, Hexagon Composites ASA raised NOK 300 million in gross proceeds through an equity private placement.

Key developments after the quarter

• X15N initial orders from over 30 fleets
• Participation of NOK 383 million in Hexagon Purus' successful capital raise of NOK ~1 000 million

Segment results

Hexagon Agility

Hexagon Agility is a global provider of natural gas fuel systems for commercial vehicles and gas distribution solutions.

In the third quarter of 2024, Hexagon Agility recorded combined revenues of NOK 1 220 (1 104) million, and a record-high EBITDA of NOK 203 (125) million, with an EBITDA margin of 17% (11%). The improved performance this quarter was largely attributed to higher fuel systems volumes for heavy-duty trucks, including deliveries to part of the UPS order announced in May. The order included systems that will be coupled with Cummins' new X15N natural gas engine.

While transit bus and medium duty volumes were somewhat slower, the uptick in refuse and heavy-duty truck volumes contributed to much improved overall profitability in the fuel systems business. The higher volumes provided a higher utilization of our plants which combined with operational improvements and better raw material prices supported better margins. Additionally, the Mobile Pipeline gas distribution business had yet another strong quarter both in terms of top-line and bottom-line performance, yielding a solid performance for Hexagon Agility as a whole.

On a year-to-date basis, Hexagon Agility recorded revenues of NOK 3 226 (3 113), including approximately NOK 55 million in positive FX translation effects compared to the same period last year. Although revenues in the fuel systems are somewhat lower than in the same period last year, this shortfall was neutralized by a significant increase from the Mobile Pipeline distribution business.

Hexagon Agility's EBITDA for the first nine months came in at NOK 408 (271) million, translating to an EBITDA margin of 13%, compared to 9% last year. A significant positive volume effect in Mobile Pipeline coupled with improved margins in the fuel systems business explains the overall improvement in Hexagon Agility's EBITDA performance.

EBITDA (MNOK)

Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q2 24 Q3 24

Q3 22

Hexagon Digital Wave

Hexagon Digital Wave offers innovative cylinder testing and monitoring technologies that reduce down-time and inspection costs while improving inspection accuracy.

In the third quarter of 2024, Hexagon Digital Wave recorded revenues of NOK 39 (35) million and an EBITDA of NOK 0 (-5) million. Although revenues and EBITDA were better than in the same period last year, the overall performance was relatively soft. The soft performance was primarily due to reduced volumes in the UE (Ultrasonic Examination) machine business. In contrast, the MAE (Modal Acoustic Emission) requalification service business maintained consistently high levels. The shortfall in the UE business is however expected to recover in the fourth quarter as deliveries have been deferred from Q3 to Q4.

On a year-to-date basis, Hexagon Digital Wave recorded revenues of NOK 125 (121) million and an EBITDA of NOK 0.4 (-2.2) million for an EBITDA margin of 0.3% (-1.9%). While the MAE business has had a positive development, the UE business has seen challenges on the volumes side due to specific key customers holding back its own capex in 2024. The insufficient volumes generated a break-even EBITDA for the first nine months.

Investments in associates

Hexagon holds strategic investments in three associated companies: Hexagon Purus (HPUR.OL) with 38% ownership, Sustainable Energy Solutions (SES) with 49% ownership and Cryoshelter BioLNG with 40% ownership.

Hexagon Purus - 38% ownership

Hexagon Purus is a global leader in key technologies needed for zero emission hydrogen and battery-electric mobility and infrastructure with production facilities in North America, Europe and Asia.

In the third quarter of 2024, Hexagon Purus generated revenues of NOK 544 (380) million, up >40% compared to the same period last year, driven by its Hydrogen Mobility & infrastructure (HMI) segment, in addition to some positive one-offs related to the termination settlements with Daimler Truck North America. EBITDA ended at NOK -51 (-116), representing an operational improvement from its Hydrogen Mobility & Infrastructure (HMI) segment as well as some positive one-offs, offset by continued ramp-up investments and operating losses in its Battery Systems and Vehicle Integration (BVI) and in its China joint venture.

Profit after tax for Hexagon Purus for the first nine months of 2024 ended at NOK -535 (-499) million. Hexagon's share of the losses in Hexagon Purus amounted to NOK -220 million for the first nine months of 2024. See note 12 for further information on the equity method accounting of Hexagon Purus.

For further details pertaining to the operational and financial development of Hexagon Purus, please refer to Hexagon Purus' stock exchange announcement on 30 October 2024 and its third quarter report which will be published on 28 November 2024 on www.hexagonpurus.com/investors.

Sustainable Energy Solutions (SES) - 49% ownership

SES is a leading European supplier of high-pressure cylinders and systems for storage and distribution of compressed natural gas, hydrogen and industrial gases, with production facilities in Austria, Poland and Germany. Hexagon acquired a noncontrolling 49% stake in SES from Worthington Enterprises on 29 May 2024 which is accounted for by use of the equity method in the Hexagon Group accounts.

At the end of the third quarter, Hexagon's share of the profits/losses in SES relates to the period from June to September, which amounted to a loss of NOK -17 million. On a gross basis, SES generated NOK 390 million in revenues and an EBITDA of NOK -24 million in the same period. See note 12 for further information on the equity method accounting of SES.

Cryoshelter BioLNG - 40% ownership

Cryoshelter BioLNG is an Austria-based company specialized in the development of cryogenic tank technology for liquified renewable natural gas (LNG). The company is still in its infant phases of serial production and is currently delivering its inaugural order to a large global package delivery company.

Hexagon's share of the losses in Cryoshelter BioLNG amounted to NOK -27 (-12) for the first nine months of 2024, see also note 12. Hexagon also supports Cryoshelter's development with convertible loans and ordinary loans. Total loans granted in 2024 amount to NOK 140 million while accumulated loans amount to NOK 240 million. For more information about Cryoshelter, visit www.cryoshelter.com

Discontinued operations

Discontinued operations relate to Hexagon Ragasco which was sold to Worthington Enterprise on 3 June 2024 and Hexagon Purus which was deconsolidated as a subsidiary and operating entity on 29 June 2023.

As both Hexagon Ragasco and Hexagon Purus represented separate major lines of business and separate segments within the Hexagon Group prior to the divestments, both components represent discontinued operations and have thus been presented as such. See also note 14 for further information on discontinued operations.

Hexagon Ragasco

As Hexagon Ragasco was sold on 3 June 2024, the financials for 2024 in the graph below shows Hexagon Ragasco's development until 3 June 2024 and there are thus no financial figures related to Hexagon Ragasco beyond Q2 2024.

ln its last two months (April and May 2024) as a subsidiary of Hexagon, Hexagon Ragasco generated NOK 120 million in revenues and an EBITDA of NOK 19 million. Volumes were lower than the same two months last year due to destocking effects in the Scandinavian and European market and coupled with some delays in deliveries to a major customer in Saudi Arabia.

The sale of Hexagon Ragasco to Worthington Enterprises was concluded based on an enterprise value (EV) of NOK 1 050 million, including a contingent consideration of NOK 50 million. Depending on the financial performance of Hexagon Ragasco in FY2024, the total EV-consideration may increase to NOK 1 150 million. Following the sale, Hexagon Composites recognized a gain of NOK 677 million. The gain is presented as a part of discontinued operations on the face of the income statement. See also note 13 for further information.

Hexagon Purus

Effective 29 June 2023, Hexagon Purus was deconsolidated from the Hexagon Group and presented as discontinued operations, see also note 13 for further information pertaining to the deconsolidation. Since the same date, Hexagon's retained ownership of 38% in Hexagon Purus has been accounted for by use of the equity method. The figures below depict the operating financials for Hexagon Purus that were fully consolidated in the Hexagon Group until 29 June 2023, and which for presentation purposes have been presented as discontinued operations.

Due to the deconsolidation, there are no financial figures related to Hexagon Purus beyond Q2 2023.For further details pertaining to the operational and financial development of Hexagon Purus, please refer to Hexagon Purus third quarter report published 5 November2024 on www.hexagonpurus.com/investors

Outlook

Hexagon is focused on carbon negative and near-zero emission energy solutions, supported by world-class manufacturing and digitalization, enabling customers to reach their net-zero ambitions. Together with clients and partners, the Company is finding new ways to make alternative energy solutions available and affordable.

Global regulations support the energy transition. In addition to far-reaching programs, such as REPower EU and the US Inflation Reduction Act, a number of federal and regional programs addressing transportation are also being implemented. Hexagon is actively engaging with regulatory bodies in the EU and the US in the promotion of "well to wheel" basis methods of emissions which support the increased deployment of CO2neutral fuels such as biomethane/renewable natural gas (RNG).

Hexagon Agility

Hexagon Agility's current margins and overall profitability have improved significantly in the current quarter after a relatively soft start in the first half of 2024. The improvement is largely attributed to higher heavy-duty truck volumes which are expected to continue into the fourth quarter, supported by remaining deliveries on the completion of the USD 60 million UPS order for RNG fuel systems announced in May. This is complemented by a healthy backlog for Other Truck customers.

The fuel systems business remains highly active, despite overall overcapacity headwinds in the freight industry. Hexagon Agility is actively engaged in significant quoting activity for fuel systems related to the X15N .,

The order book, including a significant order from long-standing customer UPS, is now expanding with many customers new to CNG/RNG trucking. The new orders include over 30 leading Class 8 fleets of which 40% are new adopters of RNG/CNG. These customers are drawn by the diesel-like performance of the new engine and its attractive fuel economics. When combined with RNG fuel, this offers a ready-to-deploy and fasttrack route to decarbonization for fleets and OEMs.

So far, two of the top four North American truck brands, Kenworth and Peterbilt, have opened order books for trucks powered by the new engine, with DTNA (Freightliner) flagging start of production in mid-2025. Altogether they represent approximately twothirds of the North American heavy-duty truck market. Hexagon's addressable market for Natural Gas driven heavy-duty trucks increases threefold due to the X15N engine, as it opens the long-haul segment served by diesel engines. Hexagon's current capacity expansion program is timed to support and meet the strong growth expected through the rest of the decade and beyond.

The Board is pleased with the recovery of margins within the fuel systems business this quarter after the macro shocks of the past two years, and especially in a period when the general freight market has been at a low level. Although volumes and margins may fluctuate quarterly due to variations in customer ordering patterns, the increased adoption of CNG/RNG fuel systems driven by the X15N engine is expected to secure the achievement of annual margin targets of 15% in Hexagon Agility.

For the Mobile Pipeline business, and the business expects to finish off 2024 at a strong level. Additional production capacity came online successfully in September 2024. The sustained high demand is driven by the economic competitiveness of RNG/CNG relative to conventional energy such as diesel, and customers' decarbonization targets. These underlying factors are expected to drive growth and higher volumes for Mobile Pipeline in the years ahead.

Hexagon Digital Wave

The demand for Hexagon Digital Wave's Modal Acoustic Emission (MAE) requalification services is expected to retain consistently high activity throughout 2024 while volumes in the UE business is expected to increase. Over time, Hexagon Digital Wave is expecting growth within its MAE business due, in part, to the historical growth development of its offerings and the regulatory requalification testing requirements of over-the road gas distribution, including Hexagon's Mobile Pipeline business. As revenues follow the 5year periodic inspection requirements of the modules, and with both 2015 and 2020 being years with historically lower sales, 2025 is expected to have a dip in revenues before restoring to higher levels thereafter. This may be mitigated through increases in market share of testing and more diverse applications.

These forward-looking statements reflect current views about future events and are, by their nature, subject to significant risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. For further information please refer to the section "Forward-Looking Statements" at the end of this report.

Risks and uncertainties

The Hexagon Composites Group is active in sales and markets. Exports represent a considerable part of the Group's sales. Currency risk is the Group's largest financial risk formany employs fonvard currency contracts in addition to natural hese risks. In the Board's view there are no major changes to the risk composition for the Group is by nature exposed to the general macro dimate factor, including those resulting in post-pancemic global supply chain disuptions, and how these positively or negatively or negatively. For additional information about risks and uncertainties we refer to Heagon Composites' 2023 annual report. It is not exposures and risks will have a material effect on the Group or its financial position in the reporting period.

Oslo, 6 November 2024

The Board of Directors of Hexagon Composites ASA

Knut Flakk Chair

Kristine Landmark Deputy chair

Takayuki Tsunashima Board member

Liv Astri Hovem Board member

Sam Gabbita Board member

Eva Sagemo Board member Joachim Magnusson Board member

Jon Erik Engeset President & CEO

(NOK 1000)	Note	Q3 2024	03 2023	YTD 2024	Y D 2023	FY 2023
			Re-presented		Re-presented	Re-presented
Revenue from contracts with customers	3	1 248 619	1 144 089	3 338 772	3 246 612	4 516 666
Other operating income	3	232	2 894	1 442	4 302	5 066
Rental income	3	1 253	917	4 031	3 206	4 383
Total revenue and other income		1 250 104	1 147 900	3 344 245	3 254 121	4 526 115
Cost of materials		615 646	610 428	1 688 804	1 772 445	2 488 126
Payroll and social security expenses	11	293 664	267 978	826 826	811 104	1 122 652
Other operating expenses		156 808	149 077	448 473	404 411	549 812
Operating profit before depreciation and amortization (EBITDA)		133 987	120 418	380 141	266 160	365 525
Depreciation, amortization, and impairment	5, 6	70 553	54 064	189 907	161 251	219 942
Operating profit (EBIT)		113 434	66 354	190 234	104 909	145 583
Share of profit/loss of investments in associated companies	12, 13	87 150	- 91 146	- 263 720	- 98 177	-176 574
Impairment loss on associated companies	12	0	O	0	O	- 702 000
Other financial items (net)	4	29 771	- 137 334	- 142 963	- 217 523	- 282 768
Profit/loss before taxes from continuing operations		56 055	- 162 126	- 216 448	- 210 791	- 1 015 759
Income tax expenses		53 859	- 12 327	38 399	- 22 180	- 1 491
Profit/loss after taxes from continuing operations		2 197	- 149 799	254 847	- 188 612	- 1 014 268
Profit/loss after taxes from discontinued operations (Hexagon Ragasco)	13, 14	0	- 9 399	691 023	58 253	73 085
Profit/loss after taxes from discontinued operations (Hexagon Purus)	13, 14	0	0	0	2 049 703	2 049 703
Total profit/loss before taxes		56 055	- 172 981	478 502	1911086	1113 741
Total profit/loss after taxes		2 197	-159 198	436 176	1919 344	1108 520
of which attributable to equity holders of the parent		2 197	-159 198	436 176	2 016 492	1 205 668
of which attributable to non-controlling interests		0	0	0	- 97 148	- 97 148
Earnings per share in NOK
Basic		0.01	- 0.76	2.17	9.57	5.53
Diluted		0.01	- 0.79	2.07	9.26	5.33

(NOK 1000)	Note	Q3 2024	@3 2023	YID 2024	YID 2023	FY 2023
Profit/loss after taxes		2 197	-159 198	436 176	1 919 344	1 108 520
Other comprehensive income
Translation differences when translating foreign activities		- 21 988	-23 856	53 566	207 343	141 639
Translation differences related to deconsolidated subsidiary reclassified to profit or loss	13	O	0	10 693	- 118 307	- 118 307
Share of other comprehensive income of joint ventures and associates	12	13 053	0	25 336	0	- 21 590
Net total of items that may be reclassified to profit or loss in subsequent periods		- 8 935	23 856	89 595	89 036	1 741
Actuarial gains/losses for the period (net after tax)		0	O	O	0	- 1433
Net total of items that will not be reclassified to profit or loss in subsequent periods		O	0	0	0	- 1 433
Total other comprehensive income		- 8 935	- 23 856	89 595	89 036	308
Attributable to:
Equity holders of the parent		- 8 935	- 23 856	89 595	55 461	- 33 267
Non-controlling interests		0	0	0	33 575	33 575
Total comprehensive income		- 6 738	-183 054	525 771	2 008 380	1 108 828
Attributable to:
Equity holders of the parent		- 6 738	-183 054	525 771	2 071 953	1 172 401
Non-controlling interests		0	0	0	- 63 573	- 63 573

(NOK 1000)	Note	30.09.2024	30.09.2023	31.12.2023
		Unaudited	Unaudited	Audited
ASSETS
Property, plant, and equipment	5	882 662	966 073	947 938
Right-of-use assets	5	485 133	337 281	365 624
Intangible assets	6	1769 667	1866 362	1785 606
Investment in associated companies	12, 13	1108 286	2 026 786	1 225 107
Other non-current financial assets	10	470 746	111 367	125 667
Other non-current assets		5 062	4 358	2 269
Deferred tax assets		14 961	8 635	19 013
Total non-current assets		4 736 518	5 320 861	4 471 225
Inventories		1 251 777	1324 168	110 406
Trade receivables		597 507	550 334	551 356
Contract assets		0	0	0
Other current financial assets	13	50 000	0	0
Other current assets		131 336	166 865	140 760
Bank deposits, cash and similar		516 894	163 606	154 350
Total current assets		2 547 514	2 204 974	1956 872
Total assets		7 284 032	7 525 835	6 428 096

(NOK 1000)	Note	30.09.2024	30.09.2023	31.12.2023
		Unaudited	Unaudited	Audited
EQUITY AND LIABILITIES
Paid-in capital		1 017 190	726 568	726 568
Other equity		3 046 849	3 371 293	2 487 465
Equity attributable to equity holders of the parent		4 064 039	4 097 861	3 214 033
Non-controlling interests	13	O	0	O
Total equity		4 064 039	4 097 861	3 214 033
Interest-bearing liabilities (non-current)	9	1 090 239	1096 509	0
Lease liabilities (non-current)	7	528 058	370 683	387 260
Other financial liabilities (non-current)	8	338 603	323 504	0
Pension liabilities		515	458	1 591
Deferred tax liabilities		128 835	152 039	131 018
Provisions (non-current)		9 232	7 907	8 594
Total non-current liabilities		2 095 481	1951 099	528 462
Interest-bearing liabilities (current)	9	0	53 123	1 108 468
Lease liabilities (current)	7	47 660	54 469	61 867
Trade payables		465 709	518 786	384 015
Contract liabilities		101 925	348 791	332 658
Other financial liabilities (current)	8, 10	116 315	91 157	376 909
Income tax payable		50 092	44 053	65 835
Other current liabilities		264 511	292 014	287 840
Provisions (current)		78 299	74 481	68 011
Total current liabilities		1 124 512	1 476 875	2 685 601
Total liabilities		3 219 993	3 427 974	3 214 063
Total equity and liabilities		7 284 032	7 525 835	6 428 096

(NOK 1000)	Note	Q3 2024	Q3 2023	YID 2024	YTD 2023	FY 2023
Operating cash flows
Profit before taxes from continuing operations		56 055	- 162 126	216 448	- 210 791	- 1 015 759
Profit before taxes from discontinued operations	14	0	- 10 856	694 950	2 121 877	2 129 500
Profit before taxes		56 055	- 172 982	478 502	1 911 086	1 113 741
Gain from sale / deconsolidation of subsidiary	13	O	0	676736	- 2 351 302	- 2 351 302
Depreciation, amortization and impairment	5, 6	70 553	63 496	207 596	248 709	317 331
Share of profit/loss of investments in associated companies	12	87 150	91 146	263 720	98 177	176 574
Impairment loss on associated companies	12	O	0	0	0	702 000
Net interest expense		29 295	38 804	106 690	155 174	189 791
Share based payment expenses	11	14 340	11 877	33 703	42 194	57 919
Changes in net operating working capital 1)		233 511	11 756	- 526 184	26 594	88 431
Other adjustments to operating cash flow		- 9 823	96 238	- 24 486	58 652	88 607
Net cash flow from operating activities		14 058	140 335	- 137 196	189 285	383 090
- of which from continuing operations		14 058	162 061	- 107 095	438 346	640 453
- of which from discontinued operations - Hexagon Purus		0	0	O	- 290 914	- 290 914
- of which from discontinued operations - Hexagon Ragasco		0	-21 726	- 30 101	41 853	33 551
Investing cash flows
Purchase of property, plant & equipment	5	- 86 639	- 61 697	210 042	- 361 399	- 424 045
Purchase of intangible assets	6	- 3 809	- 2 529	- 9 679	- 35 145	- 43 195
Interest received		20 017	4 333	30 430	26 317	32 017
Settlement of contingent considerations related to acquisitions		0	0	0	- 85 963	- 85 963
Total return swap cash collateral payments		68 507	0	O	0	O
Proceeds from sale of shares in subsidiary	13	0	0	944 200	0	0
Other proceeds from sale of subsidiary (repayment of intercompany debt)		0	O	128 973	0	0
Proceeds from sale of shares in associated companies	12	0	274 029	O	274 029	274 029
Purchase of shares in associated companies	12	-865	O	- 122 219	- 29 305	- 29 305
Other investments in associates (convertible bond investment in Hexagon Purus	10	0	O	- 200 000	0	O
Other investments	10	- 51 583	- 12 409	- 138 485	- 46 840	- 78 320
Net cash flow from investing activities		- 54 371	201 727	4.23 7/3	- 258 305	- 354 781
- of which from continuing operations		- 54 371	207 494	443 892	135 729	66 111
- of which from discontinued operations - Hexagon Purus		0	0	0	- 369 949	- 369 949
- of which from discontinued operations - Hexagon Ragasco		0	- 5 767	- 20 714	- 24 085	- 50 943

(NOK 1000)	Note	@3 2024	03 2023	YID 2024	YID 2023	FY 2023
Financing cash flows
Net repayment (-) / proceeds (+) from interest bearing loans	9	O	- 296 877	- 11 255	230 941	189 073
Interest payments on interest-bearing liabilities		- 32 976	- 35 108	- 111 660	- 138 591	- 170 964
Repayment of lease liabilities (incl. Interests)	7	- 33 404	- 21 299	- 75 714	- 79 166	- 101 052
Net proceeds from share capital increase		290 531	O	290 531	0	0
Net proceeds from share capital increase in subsidiary		0	0	O	576 180	576 180
Net proceeds from purchase (-) and sale (+) of treasury shares		0	-50 050	0	- 63 722	63 722
Net cash flow from financing activities		224 152	- 403 335	91 902	525 643	429 516
- of which from continuing operations		224 152	- 398 033	64 808	- 753 094	- 844 842
- of which from discontinued operations - Hexagon Purus		0	O	0	1299 708	1 299 708
- of which from discontinued operations - Hexagon Ragasco		0	- 5 302	27 095	- 20 970	- 25 350
Net change in cash and cash equivalents		183 833	- 61 273	377 885	456 623	457 825
Net currency exchange differences		- 2 681	- 3 926	8 531	- 33 151	- 43 609
Cash and cash equivalents derecognized due to deconsolidation of subsidiary	13	0	O	- 23 872	- 973 413	-973 413
Cash and cash equivalents at start of period		335 736	228 806	154 350	713 547	713 547
Cash and cash equivalents at end of period		516 894	163 606	516 894	163 606	154 350
Liquidity overview
Cash and cash equivalents at end of period		516 894	163 606	516 894	163 606	154 350
Available unused credit facilities		1 100 000	546 877	1100 000	546 877	588 745
Liquidity reserve		1 616 894	710 483	1 616 894	710 483	743 095

						Foreign			Non-
					Other	currency		Equity -	controlling
		Share	Treasury	Share	capital	translation	Other	holders of	interests	Total
(NOK 1 000)	Note	capital	shares	premium	reserves	reserve	equity	parent	(NCI)	equity
As of 1 January 2023		20 162	65	2 075 999	132 346	281 136	482 327	2 991 905	476 901	3 468 806
Profit/loss after tax for the period							2 016 492	2 016 492	- 97 148	919 344
Other comprehensive income for the period	13					55 461		55 461	33 575	89 036
Total comprehensive income						55 461	2 016 492	2 071 953	63 573	2008 380
Share-based payments					32 603		୧ 559	39 163	3 032	42 194
Movement in treasury shares etc.			- 73				- 63 649	- 63 722		- 63 722
Share capital increase in subsidiary							260 942	260 942	239 058	500 000
Transaction cost related to capital increase in subsidiary							- 17 793	- 17 793	- 8 224	- 26 018
Share capital increase from NCI in other subsidiaries									102 198	102 198
Convertible bonds – equity component	9						190 363	190 363	87 989	278 352
Convertible bonds - transaction cost equity component	9						- 5 495	- 5 495	- 2 540	- 8 034
Dividend in kind	13			- 1 369 455				- 1369 455		- 1369 455
Derecognition of NCI following deconsolidation of subs.	13								834 841	834 84.
As of 30 September 2023		20 162	- 138	706 544	164 949	336 597	2 869 747	4 097 861		4 097 861

As of 1 January 2023		20162	- 65	2075 999	132 346	281 136	482 377	2 991 905	476 901	3 468 806
Profit/loss after tax for the period							205 668	1 205 668	- 97 148	108 520
Other comprehensive income for the period	13					- 10 244	- 23 024	- 33 267	33 575	308
Total comprehensive income						-10 244	1 182 644	1172401	- 63 576	1108 828
Share-based payments					48 328		6 559	54 887	3 032	57 919
Movement in treasury shares etc.			- 73				- 63 649	- 63 722		- 63 722
Share capital increase in subsidiary							260 942	260 942	239 058	500 000
Transaction cost related to capital increase in subsidiary							- 17 793	- 17 793	- 8 224	- 26 018
Share capital increase in other subsidiaries									102 198	102 198
Convertible bonds - equity component	の						190 363	190 363	87 989	278 352
Convertible bonds - transaction cost equity component	9						- 5 495	- 5 495	- 2 540	- 8 034
Dividend in kind	13			- 1 369 455				- 1369 455		- 1369 455
Derecognition of non-controlling interests related to	13
deconsolidation of subsidiary									- 834 841	- 834 841
As of 31 December 2023		20 162	- 138	706 544	180 674	270 893	2 035 899	3 214 033	0	3 214 033

					Other	Foreign currency		Equity -	Non-
		Share	Treasury	Share	capital	translation	Other	holders of	controlling	Total
(NOK 1 000)	Note	capital	shares	premium	reserves	reserve	equity	parent	interests	equity
As of 1 January 2024		20 162	- 138	706 544	180 674	270 893	2 035 899	3 214 033		3 214 033
Profit/loss after tax for the period							436 176	436 176	O	436 176
Other comprehensive income for the period	13					64 259	25 336	89 595	0	89 595
Total comprehensive income						64 259	461 512	525 771	0	525 771
Share-based payments					33 703			33 703		33 703
Share capital increase		845		299 155				300 000		300 000
Transaction cost related to capital increase				- 9 469				- 9 469		- 9 469
Movement in treasury shares etc.			90				- 90	O
As of 30 September 2024		21 007	- 48	996 230	214 377	335 152	2 497 320	4 064 039	o	4 064 039

Note 1: General information and basis for preparation

The concensed consibated interim for the third quarter of 2024, which ended 30 September 2024, compises ASA and its subsidiaries (together referred to as "the Group"). The company's headquary and Monway. Heragon Composites ASA is listed on the Oslo Stock Exchange under the ticker HEX.

These condensed consolidated interim final been prepared in accordance with AS 34 Interim Financial Reporting. The your of include all of the information required for full annual financial statements and should be consolidated financial statements of The Group for the year which ended 31 December 2023.

For a more detailed description of accounting principles see the consolicated financial statements for 2023, available on the Company supportunestor

The accounting principles used in the preparation accounts are the same as those applied to the consolidated financial statements for 2023.

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 6 November 2024.

Note 2: Estimates

The preparation of the interim accounts entimates and assumptions that affect the application of the accounting polices and the announts recognized as assets and liablities, income, and expenses. 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 2023.

(NOK 1000)	Q3 2024	03 2023	YTD 2024	YTD 2023	FY 2023
	Unaudited	Unaudited	Unaudited	Unaudited	Audited
Hexagon Agility
Sale of cylinders, systems, and equipment (at point in time)	1 097 631	998 929	2 822 351	2 786 161	3 885 528
Sale of systems, services, and funded development (transferred over time)	0			0	0
Sales of cylinders, systems, and equipment to group- and associated companies	121 602	101 948	399 908	321 135	428 174
Other operating income		2 507		2 700	2 700
Total revenue from contract with customers	1 219 233	1103 384	3 222 258	3 109 996	4 316 402
Rental income	1 253	904	4 026	2 939	4 102
Total revenue and other operating income	1220 486	1 104 288	3 226 285	3 112 935	4 320 503
Segment operating profit before depreciation (EBITDA) Segment operating profit (EBIT)	203 184 139 485	125 313 76 226	407 583 237 411	270 720 124 958	380 903 181 586
Segment assets Segment liabilities			4 892 674 2 117 714	4 599 571 1 958 576	4 166 566 1 596 489

Hexagon Digital Wave
Sale of cylinders, systems, and equipment (at point in time)	36 900	33 345	119 453	106 601	160 893
Sale of systems, services, and funded development (transferred over time)
Sales of cylinders, systems, and equipment to group- and associated companies	1 859	304	4 624	12 329	15 485
Other operating income	188	387	1 140	576	2 340
Total revenue and other operating income	38 946	35 036	125 217	120 506	178 718
Rental income			0
Total revenue	38 946	35 036	125 217	120 506	178 718
Segment operating profit before depreciation (EBITDA)	118	- 4 765	398	- 2 247	7 813
Segment operating profit (EBIT)	- 3 016	- 6 45/	- 8 045	- 7 266	1 044
			144 622	128 945	122 689
Segment assets
Segment liabilities			86 105	68 679	57 427

(NOK 1000)	03 2024	03 2023	YID 2024	YID 2023	FY 2023
Interest income	19 668	5 850	31 711	17 860	25 055
Interest expenses	- 36 347	- 38 876	- 111 343	- 122 392	- 157 546
Interest expenses on lease liabilities (IFRS 16)	- 14 120	- 5 170	- 26 158	- 15 125	- 20 443
Net interest expenses	- 30 799	- 38 196	105 790	- 119 657	- 152 934
TRS derivative gain/loss	56 226	- 91 157	8 294	- 91 157	- 124 609
Other derivatives gains/losses	- 14 815	- 961	- 50 543	9 376	396
Foreign exchange gains/losses	19 446	-6622	6 030	- 16 547	- 7 132
Other financial expenses/income (net)	- 287	- 398	- 955	462	512
Other financial items (net)	29 771	- 137 334	- 142 963	- 217 523	- 282 768

		20724		2073
	Property, plant,	Right of use		Property, plant,	Right of use
(NOK 1000)	and equipment	assets	Total 2024	and equipment	assets	Total 2023
Carrying value as of 1 January	947 938	365 624	1313 562	1336 307	473 233	1 809 539
Additions continuing operations	188 123	229 772	417 895	135 770	36 078	171 848
Additions discont. operations - Hexagon Purus	0			196 535	7 521	204 056
Additions discont. operations - Hexagon Ragasco	21 919	3 569	25 488	29 094	11 128	40 222
Depreciations from continuing operations	- 85 864	- 53 310	139 174	- 70 559	- 43 401	- 113 960
Depreciations from discont. operations - Hexagon Purus (note 14)	0			- 21 103	- 13 881	- 34 984
Depreciations from discont. operations - Hexagon Ragasco (note 14)	- 13 336	- 4 215	- 17 551	- 21 909	- 6 793	- 28 702
Impairments from continuing operations	- 3 457		- 3 457
Currency translation differences	21 288	9 866	31 153	107 717	32 687	140 404
Derecognition from deconsolidation of Hexagon Purus (note 13)				- 725 778	- 159 292	- 885 070
Derecognition from deconsolidation of Hexagon Ragasco (note 13)	- 193 948	- 66 174	- 260 122
Carrying value as of 30 September	882 662	485 133	1 367 795	966 073	337 281	1 303 354

	2024				20743
			Other				Other
		Customer	intangible	Total		Customer	intangible	Total
(NOK 1000)		Goodwill relationships	assets	intangibles		Goodwill relationships	assets])	intangibles
Carrying value as of 1 January	1 232 880	252 447	300 279	1785 606	1 717 097	363 924	489 833	2 570 853
Additions continuing operations	O	0	9 679	9 679	0		18 258	18 258
Additions discont. operations - Hexagon Purus	O	0	0		0	0	16 886	16 886
Additions discont. operations - Hexagon Ragasco	O	0	0		0			0
Amortizations from continuing operations	O	- 19 869	- 27 407	- 47 276	0	- 23 400	- 23 892	- 47 292
Amortizations from discont. operations - Hexagon Purus (note 14)	O	0	0		0	- 10 737	- 13 035	- 23 772
Amortizations from discont. operations - Hexagon Ragasco (note 14)	0	0	- 138	- 138	0			0
Currency translation differences	40 428	8 598	7 299	56 325	148 522	30 860	26 591	205 973
Derecognition from deconsolidation of Hexagon Purus (note 13)	0	0	0		- 583 031	90 553	- 200 962	- 874 545
Derecognition from deconsolidation of Hexagon Ragasco (note 13)	- 32 350	0	- 2 179	- 34 529				O
Carrying value as of 30 September	1 240 958	241 176	287 533	1769 667	1 282 588	270 095	313 679	1866 362
			1 1 1 1 19 19 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 1

(NOK 1000)	2024	2023
Carrying value as of 1 January	449 127	551 592
New lease liabilities recognized in the period - continuing operations	229 772	36 328
New lease liabilities recognized in the period – discont. operations – Hexagon Purus		7 521
New lease liabilities recognized in the period - discont. operations - Hexagon Ragasco	3 રેલવે	11 128
Cash payments for the principal portion of the lease liability	- 48 504	- 55 417
Cash payments for the interest portion of the lease liability	- 27 210	- 23 748
Interest on lease liabilities - continuing operations	26 158	15 125
Interest on lease liabilities - discontinued operations - Hexagon Purus		6 828
Interest on lease liabilities - discontinued operations - Hexagon Ragasco	1 052	1 795
Currency translation differences	12 119	37 808
Derecognition from deconsolidation of Hexagon Purus (note 13)		- 163 807
Derecognition from deconsolidation of Hexagon Ragasco (note 13)	- 70 366	0
Carrying value as of 30 September	575 718	4925 1572

(NOK 1000)	Carrying value 1 January 2024	Fair value adjustment	Additions in the period	Settlements /payments in the period	Reclass. from non- current to current	translation	Derecognition from Currency deconsolidation of Hexagon Purus	Carrying value 30 Sept. 2024
Cross currency swap (fair value)		- 20 966	0	O	359 569	O	0	338 603
Total non-current other financial liabilities		- 20 966	0		359 569		o	338 603
Cross currency swap (fair value)	252 299	107 270	0		- 359 569	0
Other current financial liabilities (TRS)	124 609	- 8 294	O			O	o	116 315
Total current other financial liabilities	376 909	98 975	0		- 359 569	0	o	116 315

	Carrying			Settlements	Reclass.		Derecognition	Carrying
	value		Additions	/payments	from non-		from	value
	1 January	Fair value	in the	in the	current to		Currency deconsolidation of	30 Sept.
(NOK 1000)	2023	adjustment	period	period	current	translation	Hexagon Purus	2023
Cross currency swap (fair value)	216 885	106 618	O	0	0	O		323 504
Contingent liabilities from business combinations (fair value)	39 789		O	0	- 39 789	O		O
Total non-current other financial liabilities	256 675	106 618			- 39 789	0	0	323 504
Deferred payment from business combination (amortized cost)	45 776			- 52 267	0	6 491		0
Contingent liabilities from business combinations (fair value)	29 275		0	- 33 426	39 789	8 ୧୧୧	- 44 294
Other current financial liabilities (TRS)		91 157	0					91 157
Total current other financial liabilities	75 051	91 157	0	- 85 693	39 789	15 146	- 44 294	91 157

Note 9: Interest-bearing liabilities

		2024		2073
	Non-current	Current		Non-current	Non-current	Current
(NOK 1000)	bank loans	bank loans	Total 2024	bond loans	bank loans	bank loans	Total 2023
Liabilities as of 1 January	O	1 108 468	1 108 468	0	1 482 140	234 674	1 716 814
Financing activities with cash settlement:
- New liabilities		607 339	607 339	800 000	0	0	800 000
- Transaction costs		- 9 750	- 9 750	- 23 091	0	0	- 23 091
- Repayment of liabilities		- 618 595	- 618 595	0	- 365 398	- 180 569	- 545 967
Financing activities without cash settlement:
- Reclassification 1st year`s instalments	0	0	o	O	0	0	O
Reclassifications 1)	1 088 735	- 1088 735	o	O	O	0	O
- Equity component of convertible bond (less transaction costs)			o	- 270 318	0	0	- 270 318
- Currency translation differences					5 421	0	5 421
- Other transactions without cash settlement	1 505	1 272	2777	21 024	4 900	0	25 924
- Derecognition from deconsolidation of Hexagon Purus 2				- 527 615	- 30 554	- 982	- 559 151
Liabilities as of 30 September	1 090 239	0	1 090 239	0	1 096 509	53 123	1 149 632

() Heragon's debt facilities with its bank, were due to its less-than-12-morth maturity, classified and presented as current as of 31 December 2023. On 30 April 2024, Hexagon renewed its debt facilities, and the been reclassified and presented as non-current as of 30 September 2024.

The principal loan financing for heragon Composites ASA is a Secured blateral and Dansie Bank. Following the renewal of the cleb facilites on 30 April the overal size of the committed for M.V. 10 M. 2 200 million, comprising a term loan of NOK 100 million, an overdraf facility of NOK 200 million and a multi-currency revolving credit facility (RCF) of NOK 80 million. The mail be in relation of 1 years and RCF. As of quarter-end, total drawings amounted to NOK 100 million excluding amortzed transaction costs of 9.8 million. Unused credit facilities were NOK 100 million.

All financial covenants related to the financing facility agreement were compliant per quarter-end.

2) As a result of the deconsoliation of Hexagon Purus' interest-bearing debtas of 29 June 2023, consisting maily of the debt component of a NOK 800 million convertible bond, was derecognized for hexagon Composites, and is thus only present in the comparable table for 2023.

Note 10: Financial instruments

For financial instruments that are recurring basis, the Group deternines whether transfers have occurred between levels in the hierarchy by reassessing categorization at the end of each reporting period.

Fair value hierarchy

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: Other techniques for which have a significant effect on the recorded fair value are observable, either directly or indirectly or indirectly

Level 3: Techniques which use inputs which have a significant effect on the recorded fair value that are not based on observable market data

There were no transfers for one level to and hierarly from 2023 to the end of the current quarter of 2024. Heagon Group has no items defined as level . Set out below is a comparison of the fair value of financial instruments as of the current balance sheet date and 31 December 2023.

		30 September 2024		31 December 2023
(NOK 1000)	Level	Carrying amount	Fair value	Carrying amount	Fair value
Financial assets:
Other non-current financial assets 1)	2	470 746	470 746	125 667	125 667
Other current financial assets 2)	2	50 000	50 000
Total financial assets		520 746	520 746	125 667	125 667
Financial liabilities:
Non-current contingent liabilities	3	1 090 239	1 100 000	O	O
Other non-current financial liabilities (cross currency swap)	3	338 603	338 603	0
Current interest-bearing liabilities	2			1108 468	1 111 255
Other current financial liabilities 3)	2	116 315	116 315	376 909	376 909
Total financial liabilities		1 545 157	1 554 918	1 485 376	1 488 164

() Other non-current thancial assets of NOK 40.7 milion relatible bond investment of NOK 23.5, bans to Cryosheller BoLNG of VOX 240.1 million, fair vaue on interest rate swaps of NOK 11.4 million and other minor investments of NOK 5.8 million.

2) Other current financial assets of NOK 50 million relate to contingent consideration placed to the sale of Hexagon Ragasco.

3) Other current financial liabilities of NOK 116 million relate to the negative fair value of a total return swap (TRS).

On 29 June 2023, Heragon Composites entered into a local exposure to 13 839 872 shares in Hexagon Purus ASA, representing 5% of the oth outstanding shares in Heragon Purus ASA. The total return svar Composites financial expoure to any change in the fair ralue of the underling is 839 872 shares from the intial amount of NOK 9.00 per share. The TRS is classfied as a final value to be recognized through proft or loss. At the end of the quarter, the fair value of the TRS was NOK -116.3 million.

Note 11: Share-based payment

Share-based payment in Hexagon Composites ASA

The Company has a performance share units program (RSUs) covering certain employees in senior positions.

Performance share unit programs (PSUs)

All PSUs are non-transferable and will vest subjections of the applicable vesting conditions (fulfilling revenue, group EBTDA and share of PSUs vested will depend on performance and the maximum avaded PSUs in each program. Each vested PSU will give the right to receive one share in the Company at an exercise price corresponding to the shares being NOK 0.10.

Restricted share unit programs (RSUs)

The RSUs are subject to continued employment the exch participant will at such ime receive such number of Hexagon shares as correspons to the number of RSUs allocated to them.

	Privation
Share-based payment programs	(maximum)	RSUS
Outstanding 1 January 2024	8 476 437	524 527
Granted during the year	5 480 154	157 000
Instruments exercised	- 1024 375	- 91 132
Instruments lapsed/cancelled/adjusted	- 2 565 339	- 127 589
Outstanding 30 September 2024	10 366 877	462 806
Exercise price (NOK) (in the case of new shares issued)	0.10	0.10
Expected lifetime (years)	3 years	3 years
Weighted average exercised share price (NOK) during the year	18.46	39.15

The fair value of the PSUs was caculated on the Back-Scholes model, and the cost is recognized over the service period. Cost associated with the programs were NOK 35.7 million YTD per 30 September 2024. The fair value of all outstanding PSUs (naximum 10,36,877) and RSU (462,806) is estimated to NOK 84.4 million per 30 September 2024.

In addition to the above-mentioned instruments to certain execuives within the Group. The bonus arrangements are dependent upon the share price development of Hexagon Purus AS4 and is convernment options in Hexagon Purus ASA, for the purpose of caculating quarterly fair values using the Black-Scholes model. The led total expenses of NOK-22 million YTD 30 September 2024. Experses in the third quarter were NOK 1.6 million. Remaining unamortized accrual is estimated to MNOK 1.2 as of 30 September 2024.

Note 12: Investments in associates

		Business	Acquisition /	Ownership	Ownership	Ownership	Accounting
List of associated companies	Country	segment	recognition	30.09.2023	31.12.2023	30.09.2024	method
Hexagon Purus ASA	Norway	Other	20 June 2023	38.4%	38.4%	38.3%	Equity method
Worthington Cylinders Austria GmbH ("SES")	Austria	Other	29 May 2024	n/a	n/a	49.0%	Equity method
Cryoshelter BioLNG GmbH ("Cryoshelter")	Austria	Agility	1 August 2022	40.0%	40.0%	40.0%	Equity method

Income statement reconciliation

	Hexagon Purus		Sustainable Energy Solutions (SES)		Cryoshelter		Total
(NOK 1000)	2024	2023	2024	2023	2024	2023	2024	2023
Share of profit after tax	- 200 940	- 75 649	- 16 658		- 25 430	- 10 353	- 243 028	- 86 001
PPA amortizations	- 18 672	- 10 196			- 2 020	- 1 980	- 20 692	- 12 176
Total profits/losses from investments in
associates per 30 September	- 219 612	- 85 845	- 16 658		- 27 450	- 12 332	- 263 720	- 98 177

Balance sheet reconciliation

	Hexagon		Sustainable Energy		Cryoshelter		Other associates 1)		Total
	Purus		Solutions (SES)
(NOK 1000)	2024	2023	2024	2023	2024	2023	2024	2023	2024	2023
Carrying value as of 1 January	1 225 107	0	0		0	20 243	0	33 029	1 225 107	53 272
Purchase of shares			122 219						122 319
Share capital contributions								29 305		29 305
Fair value recognition of remaining shareholding		2 378 695								2 378 695
Sale of shares		- 274 029								- 274 029
Share of profit after tax incl. PPA amortizations	219 612	- 85 845	- 16 658		- 27 450	- 12 332		- 4 402	263 720	102 579
Share of other comprehensive income	25 336								25 336
Derecognition following deconsolidation								- 57 804		- 57 804
Currency translation effects			45 -		- 611	55		- 128	- 657	- 73
Carrying value as of 30 September	1030 832	2 018 820	105 516	O	- 28 061	7 965	O	0	108 286	2 026 786
Fair value of the investment
(if there is a quoted market) as of 30 September	1 243 666	1 405 236	n/a	n/a	n/a	n/a	n/a	n/a

) Other associated companies of Helagon Purus. As a nesult of the deconsiliation of Heagon Purus effective 29 June 2022, these associated companies were decedgrized from th group accounts of Hexagon Composites and are thus not a part of the 2024 figures.

Sustainable Energy Solutions (SES)

On 29 May 2024, Hexagon acquired 49% of the shares in Worthington Crip St the SES business), a leading European suppler of high-pressur crinners and systems for storage and distribution of controgen and industrial gases, with production from and Germany, Following the transaction, Worthington Enterprises as seler retailes of SES hold the remaining 2%. Based on the substance of the share-purchase ageement and the shareholders' ageement entered into as a partil over the control over the company, nor will the shareholders rave joint control over the company Consequently, Hevagon has concluded that influence over the company and has accounted for the investment as an associate by use of the equiry method. Hexagon's share of the profit after tax in SES from 29 May 2024 to 30 September 2024 was NOK -16.7 million.

The acquisition of SES was concluded based on an enterprise value of SS of USD 20 million on a 100% basis and net working capital liens, transtated to an equity ralue of USD22 million. HEK investment and to USD 10.8 million for 49% of the shares, equating transaction costs directly associated with the scuisition of the shares and on costs have been capitalized and added to the carring amount of the inestment.

As part of the acounting for the aquisition of SES, Heragon is unchase pice allocation (PPA), identifying and valung assets and liabilities of SES Fair value adustnents, if any, will not be recorded be investment itsef is a single line item. However, such adjustments will form the basis for additional depreciation, amoritation and similar adjustments that will be relevel in subsequent periods. The PP was not completed as of the date the interim financial statements were authorized for isue and consequention refects provisional anounts, which may be subject to change in subsequent periods to reflect new information obtained about the finance of the acquisition date. Management expects to have completed the PPA prior to the rim financial statements for the quarter ending 31 December 2024.

Hexagon Purus

Initial recognition as associated company on 29 June 2023

Following loss of control and deconsolidation of Heragon Composites investment in Hexagon Composites' investment in Hexagon Purus has been accounted for as an associaed company appling the equity method . On 2022, following the divident in - ind decision, Heragon Purus was effectively reduced to 43.4%. The initial recognition and measurement of Helen Monted to NOK 2 79 million, representing 43.4% of the fair market walle of Heagon Purus on 29 June. Furthernore, on 29 June, Heragon Purus shares and simultaneously entered into a total return swap (RS) representing % of the total outstanding shares in Hexagon Purus The to and a NOK 19.80 per share for a total consideration of NOK 274 million. Based on the substance of the agreements and the circunstances for the sale of shares associated with the TRS agreements was a couction in ownership of an associate. Since the sale of hares under the TRS agreement was made subsequently on the same date a the sale represented a zero-gain transaction. From 29 June and onwards, Heragon Composites accunts or 38.4% of the profits/losses in Heragon addition to anortzations of fair ralue/PPA-adjustments. See also note 13 for urber information related to the deconsolidation of Hexagon Purus. The table below shows the purchase price allocation of Hexagon Purus as of 29 June 2023.

Hexagon Purus Hexagon
(NOK 1000) 100% basis share
Ownership % 38.4%
Number of shares 276 797 456 106 296 223
Share price (NOK / share) 19.80 19.80
Market value of equity as of 29 June 2023 5 480 590 2 104 665 a
Book values as of initial recognition 29 June 2023
1 917 324 736 294 Non-current assets
1 900 183 729 712 Current assets
283 481 Non-current liabilities 738 189
Current liabilities 280 764 731 115
Book value of equity as of 29 June 2023 2 348 204 901 761 b
Fair value adjustments / PPA-adjustments: 3 132 386 1 202 904 a - b
- hereof intangible assets 298 848 778 206
- hereof goodwill 2 354 180 904 056

Impairment testing of Hexagon Purus

During the last 1.5 years, Heragon Purus as experienced and its market value. As of 30 September 2024, the Hexagon Purus share price closed at NOK 1.70 per share, translating to a fair value of Heragon Purus of NOK 1244 million. Compreet to the share price as of the date of Hexagon Purus as an associated company of NOV 19.80 this represents a 1 per cent decine. Companies within the hydrogen and battery sector have experienced similar share price developments in the same period.

In the fourth quarter of 2022, Hexagon performent in Heragon Purus based on a value-in-use calculation. The impairment test carred out resulted in an impairnent of NOK 702 million and an adjusted to K 1225 million as of 31 December 2023. Considering of Hexagon Purus in the first nine months of 2024, the carping value as of 30 September 2024 end of the end of the end of the third quarter of 2024, Hexagon reassessed is impairnent test carried ou in the fourth quarter of 2023 and concluded that he undering for the impairnent still stand. Consequently, no further impairments or reversal of impairments of its investment in Hexagon Purus have been made.

Key assumptions for calculating value in use of the mates for revenues, EBTDA margins, discount rates and growth rates beyond the breast period. A forecast period until 200 with an extraportion of years) has been used, concurent with the forecast period used in the determination of intangible asses and goodill in the purchase price alocation of Hexagon Purus' business plan projections imply significant growth. However, a a refection of the overal equity market increased implict risk towards for inpairnent test purposes incorporated somewhat higher risk factors to Heagon Purus' revenue growth rates towards 2030 both within the hydrogen and the sector, as vell as somewhat lower profit margins in the same forecast periods beyond the 6-year horizon, the Group has provincial to an expected average growth rate for the conomy in general. A weighted average cost of capital (post-tax) of 1.0 per cert has been reason flows. Although Hexagon Purus expects to make profit at EBITDA level during 2026, a significant portion of the estimated value-in-use anount lis in the exempent upon the size of the company and its free cash flow generation at the end of the fore ass period. Despite future cash flows are inherently heagon management expects Hexagon Purus will capitalize and dhat the current carrying value represents a fair estimate of the Company, including prudent risk adjustments.

Note 13: Changes to the Group structure

Sale and deconsolidation of Hexagon Ragasco on 3 June 2024

On 29 May 2024, Heragon announced an agreement with the sale of 10% of the shares in Hexagon Ragasco - the Groups LPG comps. The sale transaction closed on 3 June 2017 he transation was settled based on an enterprise value of NOK 1000 million and depending on the full year 2024 EBTDA performance of Herapise value may be adjusted between minus NOK 100 million. These potential adjustments epresent contingent considerations which have been and accounted for by using management's best estimates. Based on the EBTDA critingent considerations, Heagon management concluded to basing of NOK 1050 in enterprise value, equating to an estimated purchase price for the shares, after all of net debt and net working capital, of NOK 988 million.

The sale transaction yielded a net accounting gain of NOK 677 million, which is further depicted below.

	Gain from sale of Hexagon Ragasco as of 3 June 2024
(NOK 1000)
	Fair value of consideration paid in cash at closing	944 200
	Fair value of subsequent consideration post-closing	- 6 500
	Fair value of contingent consideration 17	50 000
a)	Total consideration for the shares in Hexagon Ragasco	987 700
b)	Derecognition book value of net assets (equity) in Hexagon Ragasco	260 475
c)	Reclassification of negative FX translation differences from OCI to profit/loss related to Hexagon Ragasco	- 10 693
	a-b+c) Gross gain from sale of Hexagon Ragasco	716 532
	Income tax from sale of Hexagon Ragasco
	Transaction costs 2)	- 39 796
	Net gain from deconsolidation of Hexagon Ragasco (as reported)	676 736

1) The contingent consideration is payable in March 2025 subject to Hexagon Ragasco meeting the associated EBITDA target for 2024.

2) Transction costs include lees to financial and easy settements of share been payment instruments and boruses to namely many of leagon Ragasco of NOK 15.7 million.

Deconsolidation of Hexagon Purus on 29 June 2023

On 29 June 2023, the Board of Hexagon Comment on the extraordinary general meeting on 20 June 2023, to distribute 69,2 million shares in Heragon Purus ASA ("Heagon Purus") as divident in kind to its sharented 25% of the total outstanding shares in Hexagon Purus and effectively realced Hevagor's ownership in Hexagon Purus from 68,4% to 4%. On the same day and subsequent of the Board not otal return swap (TRS) ageements with its Nord Canading Partners representing shares in Heragon Purus, or 13,8 million shares. Since 29 June 2022, Heragon nas ned 39,4% of the voting rights (106,3 million shares) in Hexagon Purus and a total return swap of 5% (13.8 million shares).

Folowing the above-mentioned events, Hexagon made a reassessment of its control consideration in Heragon Purus, and after considering and circumstances, management control was lost a of 29 June 2023. Key factors pertaining to this conclusion were the reduced with an irreveable public statement from the Board of Hexagon's Board influence and power in the Board of Purus to a non-controlling party for the foreseable tuture. See he full statement for the stock exchange announcement from 29 June, https://nevsweb.osobors.no/message594467

As a result of the loss of control in Hexagon derecognized all assets and liabilities, including non-controlling interests, associated with Heragon Purus as of 29 June 2023. The table below shows the one-off accounting gain resulting from the deconsolidation.

	Gain from deconsolidation of Hexagon Purus as of 29 June 2023
(NOK 1000)
	Fair value of Hexagon Purus shares distributed as dividend in kind (69 164 402 shares x NOK 19.80 per share)	1 369 455
	Fair vale recognition of retained Hexagon Purus shares as associated company (120 136 095 shares x NOK 19.80 per share)	2 378 695
a)	Total consideration of Hexagon Composites' share in Hexagon Purus	3 748 150
	Derecognition book value of net assets equity) in Hexagon Purus	2 348 204
	Derecognition book value of non-controlling interests related to Hexagon Purus	- 834 841
b)	Total book values related to Hexagon Purus derecognized	1 513 363
c)	Reclassification of positive FX translation differences from OCI to profit/loss related to Hexagon Purus	118 307
	a-b+c) Gross gain from deconsolidation of Hexagon Purus	2 353 094
	Income tax from deconsolidation of Hexagon Purus	0
	Transaction costs	1792
	Net gain from deconsolidation of Hexagon Purus (as reported)	2 351 302

Since 29 June 2023, Heagon Purus has been classified company and accounted for by use of the equity method. See note 12 for further cerails on the equily method accounting of Hexagon Purus.

(NOK 1000)	Q3 2024 (n/a)			@3 2023
	Hexagon	Hexagon	Total disc.	Hexagon	Hexagon	Total disc.
	Ragasco	Purus	operations	Ragasco	Purus	operations
Total revenue and other operating income				109 497		109 497
Cost of materials				39 964		39 964
Payroll and social security expenses				32 055		32 055
Other operating expenses				34 230		34 230
Total operating expenses before depreciation				106 249		106 249
Operating profit before depr. and amort. (EBITDA)				3 248		3 248
Depreciation, amortization, and impairment				9 432		9 432
Operating profit (EBIT)				- 6 184		- 6 184
Profit/loss from investments in associated companies				0		O
Other financial items (net)				- 4 672		- 4 672
Profit/loss before taxes from discontinued operations				- 10 856		- 10 856
Income tax expenses				- 1 457		- 1 457
Profit/loss after taxes from discontinued operations				- 9 399		- 9 399
Gain from sale/deconsolidation before taxes (note 13)				0		0
Income tax on gain from sale/deconsolidation				0		O
Gain from sale/deconsolidation after taxes				0		0
Profit/loss after taxes from disc. operations
reconciled to the income statement				- 9 399		- 9 399

(NOK 1000)	YTD 2024		YTD 2023			Full year 2023
	Hexagon	Hexagon	Total disc.	Hexagon	Hexagon	Total disc.	Hexagon	Hexagon	Total disc.
	Ragasco	Purus	operations	Ragasco	Purus	operations	Ragasco	Purus	operations
Total revenue and other operating income	263 111		263 111	508 194	573 544	1 081 738	678 703	573 544	1252 246
Cost of materials	98 433		98 433	198 279	334 830	533 109	268 229	334 830	603 059
Payroll and social security expenses	72 007		72 007	117 807	295 899	413 705	158 513	295 899	454 411
Other operating expenses	55 672		55 672	104 291	143 846	248 137	137 752	143 846	281 599
Total operating expenses before depreciation	226 112		226 112	420 376	774 575	1 194 951	564 494	774 575	1339 069
Operating profit before depr. and amort. (EBITDA)	37 000		37 000	87 818	201 031	- 113 214	114 209	- 201 031	- 86 823
Depreciation, amortization, and impairment	17 690		17 690	28 702	58 756	87 458	38 632	58 756	97 388
Operating profit (EBIT)	19 310		19 310	59 116	259 787	- 200 672	75 576	- 259 787	- 184 211
Profit/loss from investments in associated companies	0		0	0	- 4 402	- 4 402	0	- 4 402	- 4 402
Other financial items (net)	- 1 096		- 1 096	16 044	- 40 395	- 24 351	7 206	- 40 395	- 33 189
Profit/loss before taxes from discontinued operations	18 214		18 214	75 159	304 584	229 425	82 782	- 304 584	- 221 802
Income tax expenses	3 927		3 927	16 906	- 2 984	13 921	9 697	- 2 984	6 712
Profit/loss after taxes from discontinued operations	14 286		14 286	58 253	- 301 600	243 346	73 085	- 301 600	- 228 514
Gain from sale/deconsolidation before taxes (note 13)	676 736		676 736	0	2 351 302	2 351 302	0	2 351 302	2 351 302
Income tax on gain from sale/deconsolidation	0		0	0	O	O	0	0	0
Gain from sale/deconsolidation after taxes	676 736		676 736	0	2 351 302	2 351 302	0	2 351 302	2 351 302
Profit/loss after taxes from disc. operations
reconciled to the income statement	691 023		691 023	58 253	2 049 703	2 107 956	73 085	2 049 703	2 122 788

• X15N initial orders from over 30 fleets
• Participation of NOK ~380 million in Hexagon Purus' successful capital raise of NOK ~1 000 million

Terminology

BAR

Unit of pressure. 1 millibar = 100 N/m2

BIOGAS

Produced from raw materials such as agricultural waste, manure, municipal waste, plant material, sewage, green waste, or food waste

BIO-LPG

Propane produced from renewable feedstocks such as plant and vegetable waste material

BEV

Battery Electric Vehicle

CHASSIS

The base frame of a car, carriage, or other wheeled vehicle

CHG

Compressed Hydrogen Gas

CNG

Compressed Natural Gas

CO2 Carbon Dioxide

COMPOSITE

Combination of glass/carbon fiber and thermosetting plastic, exploiting the malleability of the plastic and the stiffness and strength of the glass/ carbon fiber

EBIT

Earnings before interests and taxes

EBITDA

Earnings before interest, taxes, depreciation, and amortization

EV

Electric Vehicle

FCEV

Fuel Cell Electric Vehicle

GHG

Greenhouse Gas

GVW Gross Vehicle Weight

HDV Heavy-Duty Vehicle

H2

Hydrogen, light, colorless gas (Symbol H), produced on an industrial scale

JOINT VENTURE

Legally signed contractual agreement whereby two or more parties undertake an economic activity

LDV Light-Duty Vehicle

LNG Liquefied Natural Gas

LPG Liquefied Petroleum Gas (propane gas)

MOBILE PIPELINE® Gas distribution products

NGV Natural Gas Vehicle

OEM Original Equipment Manufacturer

X-STORE® High-pressure composite cylinder for bulk transportation and storage of CNG

RNG

Renewable Natural Gas Pipeline compatible gaseous fuel derived from biogenic or other renewable sources that has lower lifecycle carbon dioxide equivalent (CO2- eq) emissions than geological natural gas

SCBA CYLINDER

Self-contained breathing apparatus

SCM3

Standard cubic meters. Unit for volumetric measurement of oil, natural gas and natural gas condensate at standard conditions defined in the ISO standard ISO 13443

TITAN®

High-pressure composite cylinder for bulk transportation and storage of CNG

TUFFSHELL®

High-pressure CNG cylinder for heavy duty vehicles

TYPE 1 Steel cylinder

TYPE 2 Steel cylinder, composite-reinforced

TYPE 3 Composite cylinder with metal liner

TYPE 4 Composite cylinder with polymer liner

U.S. DOT U.S. Department of Transportation

Hexagon Composites ASA Korsegata 4B, 6002 Ålesund, Norway www.hexagongroup.com