Hexagon Composites ASA: Results for the fourth quarter 2019

In the fourth quarter of 2019 Hexagon Group generated NOK 942.0 (426.8) million in revenues and recorded an operating profit before depreciation (EBITDA) of NOK 99.1 (55.2) million. This was driven by strong performances in Agility Fuel Solutions and Hexagon Purus’ CNG Light-Duty Vehicles business as well as Hexagon Ragasco. In the fourth quarter of 2019 depreciation and amortization increased to NOK 62.6 (35.9) million, primarily related to the inclusion of both tangible and intangible amortization from the Agility acquisition.

In the fourth quarter of 2018, EBITDA included a positive impact of NOK 18.4 million from a reversal of an earn-out obligation related to the xperion acquisition in 2016.

Reported Hexagon Group revenues for the year 2019 increased by 130% to NOK 3,416.2 million compared with 1,486.5 million in 2018 and reported EBITDA was NOK 360.7 (234.5) million. This was primarily driven by strong performances in Agility Fuel Solutions, which has been consolidated entirely after the acquisition on 4 January 2019, and Hexagon Purus’ CNG Light-Duty Vehicles business. The acquisition of Agility entailed a total profit impact for the full year of NOK 44.2 million. EBITDA for the year 2018 included a positive impact of NOK 108.5 million related to a reversal of an earn-out obligation related to the xperion acquisition.

KEY DEVELOPMENTS

• Agility entered into a three-year exclusive agreement with UPS with a total estimated value of USD 65 to 95 million (approx. NOK 600 to 900 million)
• Awarded fuel systems order for twelve hydrogen buses by Solaris
• Selected by CaetanoBus for delivery of two fuel systems for hydrogen buses
• Received RNG order for TITAN® modules from new customer, U.S. Gain, with value of USD 1.4 million (approx. NOK 13 million)
• Awarded Mobile Pipeline® order from NG Advantage with value of USD 4.2 million (approx. NOK 38 million)
• A consortium, including Hexagon, was granted NOK 37.6 million to deliver hydrogen to ferries and cruise ships in the Geirangerfjord

For more information

Jon Erik Engeset, CEO, Hexagon Composites ASA

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David Bandele, CFO, Hexagon Composites ASA

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Hiva Ghiri, VP Investor Relations, Hexagon Composites ASA

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About Hexagon Composites ASA

Hexagon delivers safe and innovative solutions for a cleaner energy future. Our solutions enable storage, transportation and conversion to clean energy in a wide range of mobility, industrial and consumer applications.

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This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act

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