Hynion AS — Investor Presentation 2021

Aug 15, 2021

Hynion 1H 2021

August 15, 2021 Ulf Hafseld, CEO Hynion AS

Operational highlights H1 2021

HYNION has made significant commercial and organizational progress

Strengthening supply side to secure right cost level for Hydrogen Building the hydrogen station network

• Collaboration agreement signed with HydrogenPro
  • Will secure hydrogen supply to Porsgrunn and Høvik and reduce cost price of hydrogen
• Purchased two electrolysers with compressor and storage from Ruter
  • Production capacity 250 kg per day new location under evaluation
• JV-agreement signed with Greenlogix
  • New very promising production method for producing Hydrogen and Carbon from hydrocarbons without CO2 emissions. Pilot plant planned online in 2022
• Reformer from Metacon expected ready this autumn

• Additional transport units ordered for distribution the hydrogen

• Høvik running well with two independent filling lines - 52 % more H2 delivered to cars in 1H21 than in 1H20

• Purchased Arlanda station in Stockholm from Linde
  • Gives a foothold in the Stockholm region
• Gothenburg and Porsgrunn under re-certification
  • Work ongoing to upgrade and re-certify the stations
• Additional projects in the pipeline to deliver on target for 8 stations by end 2022

Strengthening organization	Successfully listed on Euronext growth			Capacity ramp-up on track
Technical and administrative personnel employed - Further employments planned this autumn		NOK 60m raised to fund expansion plans		Capacity for hydrogen produced by Hynion will be sufficient to meet 2022 targets – Cost estimate at budget levels

Financial highlight H1 2021

Income from hydrogen fuel sales

• Høvik generating income from the local car fleet
  • 52 % increase in sales volumes from 1H20 to 1H21
• Income from test refuelling of trucks in Gothenburg
  • Expected to increase when in regular operation
• Høvik received operational support from Viken fylkeskommune in 2020
  • 750.000 NOK, Support scheme not active for 2021

Expenses

• Building up organisation slowly and buying existing stations to get a low burn rate
• Main cost contributors are personnel and hydrogen purchase
  • Cost of transporting hydrogen is currently high
• Work initiated to reduce cost of hydrogen
  • New production will give right cost level for hydrogen and lower transport cost

Financial highlights	H1 2021	2020
(NOK'000)
Revenue	826	973
Other operating income	44	767
Total operating income	870	1,740
Raw materials and consumables used	(1,954)	(1,938)
Staff costs	(4,019)	(3,074)
Other operating expenses	(2,946)	(1,671)
EBITDA	(8,049)	(4,944)
Depreciation	(157)	(82)
EBIT	(8,206)	(5,026)
Cash balance at end of period	56,111	1,706

Hynion will qualify a new promising production method for hydrogen

A new pathway for producing hydrogen Advantages of this production method

Catalytic conversion of Hydrocarbons to Carbon and Hydrogen developed by Greenlogix

• The process can use most hydrocarbons as input
• Low heat and low energy consumption in the process
• Hydrogen is produced as H2-gas
• Carbon is produced in solid state Nano fibres
• Co-location of production plant and hydrogen station gives low cost hydrogen delivered at the station
• Both products from the process can be sold; Hydrogen for vehicle fuel and Carbon for construction materials

We can use hydrocarbons as input without creating any GHG emissions

• With this method, the huge natural gas resources will still carry a high value in a zero-emission world
• Natural gas has a wide distribution network in Europe giving low cost and stable supply of raw material when establishing hydrogen stations with onsite/near-site production
• This method represents a cheaper way to produce hydrogen then other natural gas based zero emission H2-production methods as there is no need to build a large and expensive infrastructure for CO2 capture and sequestration
• With the use of Biogas as input, the plant can even give a negative GHG contribution

A pilot plant will be built in 1H2022 in combination with a Hynion hydrogen station

The pilot plant will deliver enough hydrogen to supply a smaller truck fleet or a taxi fleet of up to 200 taxis

Cost of Hydrogen can be low and compete with current diesel prices

HYNION is established in the hydrogen market

HYNION now has operational stations in the capitals of Norway and Sweden

In the longer-term HYNION will be a leading player in the hydrogen fuel market

Game plan: Flexible approach to international expansion, new stations will be opened continuously

The fuel market is about to change dramatically

EU "Fit for 55" is putting increased emphasis on hydrogen

There is a huge gap between required and planned hydrogen stations

Source: FCH – Hydrogen Roadmap Europe

1) Equivalents of large HRS (1,000kg daily capacity); utilization relative to steady state

2) Indicative position

Hydrogen is becoming the cheapest option for long-haul transport

Hydrogen and battery cars can replace all fossil cars

Strong regulatory support for ZEVs

• More and more city zones will be closed for fossil fueled cars. Hydrogen fueled cars are Zero Emission Vehicles (ZEV) and will be admitted
• Hydrogen cars will be important to fulfil car manufacturers average GHGemissions and can be produced at competitive cost with large scale production
• New and tougher regulations form tailpipe emissions in EU coming
• No more sales of fossil fueled cars suggested in EU BY 2035

Incentives expected to remain for years to come

Examples from Norway:

• Zero import duty and no VAT plus other incentives for hydrogen cars will last up to 2025/50,000 cars, while BEV incentives are gradually being reduced
• Unrestricted use of bus lanes for hydrogen cars
• Zero cost on toll roads can give substantial savings for taxis and trucks

Hydrogen cars can be very energy efficient and give you very long driving distances

Hydrogen fuel and trucks are a perfect match

	Savings on toll road fees can make hydrogen fuel competitive
	Mercedes EURI VI		Hyundai Xcient
Consumption per 100km	30 L		7,0 kg H2
Average price	11 NOK/L diesel		80 NOK/kg (ex. VAT)
Yearly fuel cost (60,000km)	198,000 NOK	<	336,000 NOK
Yearly toll road cost	142,500 NOK	>	0 NOK
Total yearly cost	340,500 NOK	>	336,000 NOK
Ex. Oslo - Lillehammer

(400 km t/r x 150 trips per year = 60.000 km/yr)

Hydrogen fueled trucks

• Efficient logistics over longer distances with heavy loads cannot be done with batteries - Hydrogen represents a very efficient ZE-solution
• Several truck manufacturers have announced they will bring hydrogen trucks on the roads in the next few years

Renovation in Gothenburg

• Renova is responsible for garbage collection in west Sweden/Gothenburg
• Will convert 280 trucks to zero emission
• Batteries have been tested failed
• Two hydrogen trucks will be in operation early 2021
• Agreement with HYNION to supply the hydrogen fuel
• First truck refueled January 2021

Savings from toll roads can be used as an efficient mean to bring hydrogen operational costs down in the early introduction phase

Trucks – From prototypes to mainstream in the next decade

• So far, no commercial offers for hydrogen trucks
• Small series production started by a few players
• Expected to be available in large numbers on commercial terms this decade

Hynion is fueling Renova's trucks in Gothenburg, and is engaged in the H2Truck and String projects Hynion will engage in relevant public procurement projects

Cars – From scarce to abundant

• Two producers are now selling cars world-wide; Toyota and Hyundai
• All car manufacturers have hydrogen cars developed – new tailpipe regulations will require them to include hydrogen cars in their portfolio
• A sharp upturn in number of cars sold is expected from 2025

Hynion has leading expertise on fuelling cars and is collaborating closely with Hyundai and Toyota. Taxis can give early volumes Hynion will engage with potential fleet operators

Buses – From test series to a natural choice

• Mainly tested in various demonstration projects
• Costs are coming down and makes it possible to introduce buses on a larger scale
• Dedicated stations at bus depots

Vans – From not available to soon available

• A few tested in demonstration projects
• Benefits from general cost reduction in hydrogen systems and can now be introduced at near commercial terms
• Can be useful for binging in early volumes

Different approach when building a refuelling network for BEVs and FCEVs

For BEV and charging infrastructure, the start is easy, then it gets tougher

• First infrastructure for BEVs is easy every electrical socket can be used, then special car charging sockets are required
• Next wave is tougher quick chargers are more costly and more demanding to install
• To develop a super-charging network competing with fossil fuel, refuelling cost is a major challenge
• Fuelling 200 km driving range in 20 minutes

Charging infrastructure and BEVs Hydrogen refuelling and FCEVs

For hydrogen infrastructure the start is the tough part, then it gets easier

• Building the first network is costly and has low utilisation, but is needed to create confidence for the early users
• Adding on new capacity and new stations when volumes are increasing is a normal business development and leads to reduced costs
• As FCEVs have longer range, less stations are needed to cover the same geographical area
• Fuelling 600 km driving range in 4 minutes

Fuel cost per delivered kWh is steadily increasing

Fuel cost per delivered kWh is steadily decreasing

After a kick-start the hydrogen infrastructure can be built and operated on normal commercial terms

Hynion is progressing according to plan and is continuously chasing opportunities to strengthen the operation

	Hynion today	Activities during H2 2021	Medium term initiatives
	Demand is picking up and Hynion is experiencing strong attention	Focus on bringing all stations online with continued efforts towards market	Rapid action towards market development and serious expansion towards attractive markets
2	2	4	8
Operational stations	Stations in re opening	Stations fully operational	Stations fully operational by 2022
stations –	thus securing the right cost level of hydrogen	Build up production capacity to meet expected demand to our
More activities on collaboration with hydrogen consumers
Prepare for next stage of station network expansion
Strengthening organization to meet demand

Hynion moving forward

Thank you for your attention!

For further information:

Ulf Hafseld CEO Hynion AS uh@hynion.com Tel. +47 908 94 153

Vibeke Schönfeld CFO Hynion AS vs@Hynion.com

Slavica Duric IR Manager Hynion AS sd@Hynion.com

www.hynion.com

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