Hi, welcome to Hexagon Purus Q4 2020 presentation. My name is Hiva Ghiri, I am the VP of Investor Relations in Hexagon, I will be moderating today. I'm joined by company CEO, Morten Holum, from the studio here in Oslo, by Dilip Warrier, company CFO from his home office in California. Today's presentation includes Hexagon Purus in brief, highlights from the quarter, the financials, finally, the outlook, followed by a Q&A session. The Q&A option on your screen is open, please feel free to enter your questions there. You can also send your questions to ir@hexagonpurus.com. Without further ado, I'll hand over the word to you, Morten. Thank you very much, Hiva. Good morning, everybody. We have our first presentation today as a public company. I thought I would start off by giving a brief introduction to our business and the opportunities that we see ahead. We're in the early stages of a major shift, the shift away from carbon fuels and the transition into zero emission mobilities. Hexagon Purus is one of the companies that are making this transition happen. We are a global leader in some of the key technologies needed for hydrogen mobility and zero emission mobility. We see that the green shift has really gained strong momentum. The people around the world now realize that climate change is a major threat to civilization, and that we can do everything possible in order to fight global warming. The solution to global warming is renewable energy. The required policy changes are now being implemented in country after country all around the world, tighter emission standards, green incentives, and massive investments into renewable energy and green technologies. Hydrogen is quickly emerging as one of the key zero emission solutions. It's because of hydrogen's relevance across the entire energy spectrum and its potential to decarbonize some of the sectors that are very difficult to decarbonize by other means. With renewable energy being the solution, hydrogen is a great way to store and to transport that renewable energy. Then there are several factors that drive the adoption of hydrogen that are now moving in the right direction. On the one side, policy is very important, where the politicians are putting tighter emission standards to discourage the use of things that they don't want to see, and also providing incentives to encourage those things that they want to see. The cost of hydrogen is important. The cost of hydrogen technologies when you scale up and you industrialize those technologies, the costs are expected to come down rapidly, just as they have for solar technologies and battery technologies. It's the infrastructure side, which is a critical one because nobody wants to buy a hydrogen car or a hydrogen truck if there's no place to refuel it. We see now major companies that are interested in this space going in to invest to build up the infrastructure for refueling of vehicles. Finally, there is the network or multiplier effect that major companies in almost every industry are now looking to shift their efforts away from carbon and into green. The more companies and the more industries that deploy hydrogen as a solution, the easier it is for the next industry and the next company to also deploy hydrogen. It's a self-strengthening mechanism that serves as an acceleration factor for the overall adoption. These factors in combination can really drive hydrogen towards mass adoption. For us, this translates into a large market opportunity for hydrogen mobility. The overall market for hydrogen cylinders is expected to approach $7 billion in 2030. At that point, we're still only seeing single-digit adoption of hydrogen vehicles, more in the heavier vehicle classes and less in the lighter vehicle classes. Overall, there is also a sizable growth opportunity beyond 2030. With this market backdrop, a few words on what we do in Hexagon Purus. We are the leading provider of Type IV cylinders. This is essentially a polymer inner tank that's been overwrapped with high-strength carbon fiber, which makes the cylinders extremely robust, so you can store gas at very high pressure. And also, they are lightweight. This combination makes them ideal to store hydrogen fuel on board a vehicle where you need to maximize the overall range of the vehicle. We can sell these cylinders as a component, but more often we sell these cylinders in a system where you combine cylinders together with plumbing and regulators into an overall fuel system that then goes onto a number of different mobility platforms, whether that is on the back of a truck, on the roof of a bus or a train, or in an overall distribution module. The third point, which is maybe less known about Hexagon Purus, is our leading position as a provider of electric drivetrain integration solutions, where we take an empty chassis and we combine our own technologies, the hydrogen fuel system, the battery system, power electronics. We combine that with third-party components, and then integrate the entire drivetrain of the truck and make that truck run on the road. We have a good track record of doing this. Our battery systems and drivetrain offering has really received great feedback from both customers, OEMs, and users. Despite our modest size as a company, we are far from a startup. We already are a global organization with engineering, manufacturing, and R&D facilities in both North America and in Europe, and a strong track record and proven ability to deliver to these very demanding OEM contracts. Overall, we feel very confident about our abilities and to really benefit from this sizable market opportunity that we see ahead. We have deep competence in some of the key technologies needed for hydrogen mobility. We have established manufacturing facilities in Europe and North America with also serial production capabilities. We have strong relationships with world-class OEMs. Finally, we've got an experienced global team with a solid track record and a good execution DNA. That was the overall presentation of Hexagon Purus and the market we see ahead. Now I want to give a few highlights from Q4 in 2020. For us, one of the key highlights, of course, was the successful listing on the Euronext Growth Oslo, where we raised NOK 750 million in December. This allows us to accelerate our development further. With Hexagon Composites retaining a majority ownership of Hexagon Purus, we can continue to benefit from the strong industrial link and capture the synergies that exist between these two group of companies. We also picked up some contracts through the course of Q4, both in the heavy-duty vehicle segment, the rail segment, and for distribution modules. We were selected by Hino, which is a truck OEM that's owned by Toyota. We were selected to be a development partner for them to develop both the battery electric and the Fuel Cell Electric Vehicle platform. We got a contract with New Flyer in the transit segment. Two rail contracts, one for Stadler for a regional commuter train in North America, and with Talgo to provide cylinders to the first zero-emission train in Spain. In the distribution segment, we also wrote a long-term agreement, a multi-year frame agreement with Everfuel, and also received a sizable order from another global industrial gas company. As we go further, you will continue to hear different contract announcements from us. Sometimes it can be difficult to assess at which point do these contracts turn into revenue. What I thought I would do today is to give you a short overview of the different market segments that we operate in and where we see these segments in terms of revenue maturity. Starting with the heavy-duty truck and transit segment, we are involved in several development contracts when it comes to both battery electric and fuel cell electric heavy-duty vehicles. In the early stages, the battery technology is a little bit more advanced than the fuel cell electric drivetrains. While battery electric trucks are possible to sell already today, the large volumes when it comes to the fuel cell electric trucks are still a few years out. On the transit side, the overall platform development is already done, and these are then already in serial production. Although the series is quite small at the moment, it will grow significantly in the years ahead. On the light-duty side, there are only two light-duty vehicles on the road today, and we have been nominated to provide cylinders to one of them. This is not today, but it's something that starts to generate revenue for us from 2022 and onwards. We know that there are a number of other OEMs that are working on development programs for fuel cell electric vehicles. Overall, we see that the mass volumes is not expected to come until the second half of this decade because these vehicle platforms do take a long time to develop. On the distribution side of things, we are already in commercial production. With renewable hydrogen, again, growing, there is an increased demand to transport this renewable energy from the source where it's generated to where the hydrogen is going to be used, and these distribution modules are ideal to do that. We see that as something that's already mature, and where we see that the volumes in the coming years is expected to increase significantly already from this year. On the rail side, a lot of exciting things are happening, and hydrogen has very good logic in rail applications. The rail platforms do take a long time to develop. Although we are involved in development programs now, it is not likely that the large volumes on the rail side will be here until around the middle of the decade. Similarly for marine, there is a good logic for hydrogen as a fuel for marine vessels. We see a lot of interest in different applications, different ship applications in the maritime segment. The maritime sector, just like any other sector, need to decarbonize. Hydrogen is a very likely solution to decarbonize also on the maritime side. We see a lot of interest and an increase in activity level for zero-emission solutions. It is at an early stage. Just like in the rail segment, it's probably some years out until the mass volumes are approaching. We will be in development mode for the first few years likely. We see the maritime segment as very important and very interesting and are rigging ourselves to significantly accelerate our own efforts in the marine segment. With that, I will turn it back to Hiva. Thank you, Morten. Moving on in the program, Dilip, will you please walk us through the financials? Yes, thank you, Hiva. I will walk you through the financials of Purus' e-mobility business. The CNG LDV business is now classified as a discontinued operation. Revenue in Q4 was NOK 33 million. EBITDA loss was NOK 52 million. It's important to know that in this early stage of development of the industry and the relative maturity of Purus, that revenue on a quarterly basis may vary quite widely. In 2019, and in particular in Q4 of 2019, we saw fairly heavy revenue contribution from an OEM heavy-duty electric vehicle demonstration program. That program completed in Q1 of 2020 as expected. Also, in Q4 of 2020, we saw roughly NOK 10 million of revenue getting pushed out to Q1 of 2021 due to certain supply chain delays. That revenue decrease, combined with an overall increase in expenses related to the IPO, other strategic costs, and then the incremental costs of having Purus as a relatively independent and now a separately publicly listed company, drove that decline in EBITDA. We exited the year at NOK 180 million in revenue and roughly NOK 140 million in EBITDA losses. On the next slide, we just wanted to share with you some idea of the composition of the business as it stood in 2020. For certain heavy-duty vehicles is a very important segment for us, but also fairly material contribution from the distribution module business and aerospace. Those three segments together account for almost 80% of revenue in 2020. We also had some revenue contribution on the light-duty side, but primarily development programs kind of stuff. We had some revenue contribution from the transit bus business and other applications in ground, rail, and marine. Next slide. Just taking a look at the balance sheet. Obviously, following the private placement, we have a very strong balance sheet, NOK 1.2 billion in cash. We have listed the net assets of the CNG LDV business as held for sale. It's roughly NOK 141 million there. Debt, we're substantially debt-free. There's about NOK 161 million of debt remaining on the balance sheet due to Hexagon Composites, and that should be offset against the eventual transfer of the CNG LDV business to Hexagon. Moving on to the cash flow, not surprisingly, the net financing activity, so the private placement in December in Purus, as well as the proceeds in August via the private placement in Hexagon Composites, has resulted really in a very solid cash position. The CNG LDV business, as you can see, resulted in 41 million NOK of cash outflow. With that, I'll hand it back to you, Hiva. Thank you, Dilip, and thank you for walking us through the financials. Moving on to the final section of today's presentation is the outlook. Morten, please walk us through the outlook. Thank you, Hiva. We have a very active project pipeline and see a lot of interest in general into the zero-emission mobility space. At the moment, we're above 75 projects in our pipeline. It's a combination of some projects which are relatively short-term and some projects that are long-term, some that are small and some that are large, and also across the various sectors of the mobility spectrum. Overall, high activity in the zero-emission space, and we expect our business to grow in 2021. The CARB ruling in California really is a game changer for vehicle electrification. California regulators are now mandating that a certain percentage of heavy-duty vehicles sold in California needs to be zero-emission already from the year 2024. Heavy-duty vehicles account for a small part of the overall number of vehicles out on the road, but is responsible for a large portion of the emissions. The focus is now shifted from regulators onto the heavy-duty vehicle side. Starting from the year 2024, in California, 9% of vehicles, Class 4-8, will have to be zero-emission. This is a big deal. This is a big driver for zero-emission platforms, and we expect this to start driving revenue for us already in 2021. We have a good track record with vehicle electrification, having supported Daimler with their innovation fleet back in 2019. We really see now with the OEMs that there is a high interest, and also from the fleet customers in solutions for vehicle electrification. We expect that to be a revenue driver for us in this year. On the European side, EU has very ambitious hydrogen plans and are really gearing themselves up for massive investments into transitioning their energy system in a green direction. The focus in Europe is on renewable energy, which of course will drive the demand for distribution solutions. When it comes to the overall infrastructure rollout, we see that over the next 10 years, the number of stations will grow substantially. Also the size of each station as adoption is increasing, will also increase, which is a positive factor for us when it comes to the distribution segment. The growth, of course, is primarily driven by large truck fleets being rolled out across Europe and across North America and Asia as well. We expect that the demand for distribution modules is going to grow for us in 2021, one of the key revenue drivers. I want to also give a short update on where we stand in China. Despite the COVID travel bans, we have been able to progress the negotiations with our joint venture partner in China and expect to finalize the negotiations there shortly. Our financial targets for 2021 is to grow revenue by at least 50% compared to last year. Looking further out in 2025, we have a revenue target of NOK 4 billion to NOK 5 billion and a long-term profitability target of double-digit EBITDA margins. To sum up, we see a very solid outlook driven by high activity and secular tailwinds. The high activity level we see across all of the segments where we operate. We are also accelerating our own investments into product development, into production capacity, and into organization. Finally, we are on track to meet the revenue target of 50% year-over-year growth in 2021. With that, I will leave it over to Hiva. Thanks, Morten. We've received some questions from the audience. I suggest that we just jump to it. The first question has come from Morten Bukspan. Can you tell us something about the size and the deal with Talgo? If success, then how many trains can we envision? I think it's difficult to speculate on how many trains you could foresee down the road, but I think what we say is that we see that hydrogen has a good logic in rail applications because it is expensive to electrify lines, and you can do that with hydrogen instead. We see increasing interest. The initial deal for these types of development programs are usually quite small, so we're talking low EUR 100,000 type sizes. Of course, as you get into serial production, the deal size is obviously going to be a lot larger. We do see that there is a large opportunity down the road in the rail segment. Thanks, Morten. Moving on. Can you explain how you become nominated as a supplier for an FCEV that is already in serial production? Does that mean that you replace a current supplier, or will you be a co-supplier? Yeah, we will be a co-supplier for that vehicle platform. It's not unusual for an OEM to want several suppliers for certain parts and certainly for the fuel system and the cylinders. It's very relevant to have a second supplier for a vehicle platform. Great. We've received a question from Mikkel Nyholt-Smedegaard, and he's asking about China. How important is China in your 2025 revenue target? Is the CIMC JV the only current push on that market? His third question is, are you not afraid of giving away company intellectual property? Finally, what could make the JV fail? If so, what would be your plan B? Okay, let's start with the first part of your question, how important is China? Overall, China is the largest vehicle market in the world, and it will be the largest clean mobility vehicle market in the world. China is important to us. I think it's fair to say that it will be challenging for us to reach our revenue target if we are not being successful in China. It's definitely part of our plans going forward. There was a question there on the IP protection. Yeah which I think we have been very cautious of in the way that we have both structured the JVs, and also in the way that we have structured the agreements. Without being more specific than that, I can say that has really been a high focus area in our negotiations with the Chinese partner. There was a final question, Morten. What could make the JV fail, and what's the plan B? Yeah. I think that we need to ensure in China that we are competitive. Competitiveness is going to be extremely important. We know that we are competitive on the cylinder technology. We are probably the company that knows this technology the best and has the longest history in producing these types of cylinders. We have found a partner who also has a track record of profitability and are good international business people. I think the structure we have put in place is a very good combination of two companies with solid and partly complementary skill sets, at least also when it comes to geography. We're quite confident that we will be competitive in China. On the topic of China, just another question from the audience. Maybe you could reiterate why it's been delayed and when you expect to sign with CIMC Enric. Yeah, we have had a few expectations that we have set for ourselves out there previously. The overall explanation, it's quite simple. We sit and negotiate and discuss various aspects of these agreements over Teams. We have not been able to travel to China since March. We have not been able to sit in the same room, things just do take longer. That's a very simple answer. The negotiations and the discussions are going really well. It's a very extensive set of agreements that we are writing, so it needs to be worked through thoroughly. I think that right now we're in the middle of Chinese New Year celebration. We do expect to finalize this quite soon. A question from Erik Dahlström. Can the high-pressure cylinder be recycled, and to what degree? The cylinder is a combination of polymers, carbon fiber, and resin that's been baked together in an oven. It's very difficult to recycle each piece per se, but they can be recycled and reused as a material. Basically being grinded up and then used as material for other uses. A question maybe for you, Dilip. Have you a target price of the share of 2021 and/or for the next year? If the question was related to a target share price, the answer is no. We are focused on building real value for shareholders. We are focused on following the strategic plan and really investing in the growth initiatives we've shared with investors in the roadshow. If we're doing things right, the share price will follow. Thank you. Maybe another question for you, Dilip. What was your order backlog as of Q4? What was the order intake in Q4 in million NOK? How much of 2021 sales is covered by the order reserves? Yeah, it's a good question. Frankly, we're looking at sharing some of that information at some point in the future. I'd say it's early days yet, but our confidence is high. I guess what I would say is we do have the backlog to justify our confidence in the at least 50% revenue growth in 2021. Anything else to add, Morten? No, perfect. No? A question about the supply chain and the delays. If we've experienced any delays in the supply chain during Q4? I think that's referring to the comment we made about roughly 10 million NOK being pushed out of Q4 into Q1. It really was a one-off complication. It really has been sorted out. In fact, I believe that revenue's already been recognized here, sitting in January. One-off. In general, I think we can say that I'm actually amazed at how in the face of the pandemic that hit us in 2020, how little disturbances, in general, we have seen in the supply chain and in the manufacturing in our facilities. I think that's a very positive sign. A question to you, Morten. Who do you see as your biggest competitor and partners in this segment? It's a quickly evolving space, and there is lots of interest there. You have the vehicle OEMs themselves that are interested. You have on the component side, other cylinder suppliers, specialist cylinder suppliers. You have tier one suppliers to the OEMs that want to go in the clean mobility direction. Then you have also a number of companies that serve the OEMs with electric drivetrain integration services. It's early stage. There are lots of players out there. It's vibrant. So far, we have at least been able to secure a leading position and been able to stay on the leading edge of technology, both when it comes to the cylinder side, when it comes to the system side, and when it comes to the overall vehicle integration side. Thanks. A question from Anders. Can you provide the name and model of the FCV contract? You will see this in several of the announcements that we are giving. If we don't announce the name, it is because the counterparty that we have does not want the name to be announced. It's unfortunate, that's the way it is. No, we are not able, unfortunately, to name that customer. Yeah. Another question from Mikkel. Across all projects that you've been a part of, how much of the balance of system would normally a fuel cell/battery electric vehicle system make up for in percentage? I'm not sure I understood that question. Let me try to read it again. Sorry. How much of the balance of the system would normally the fuel cell, or the battery electric system make up for in percentage out of the total? How much does the fuel cell electric system represent, or the battery electric system represent of the total balance of the system? Revenue share. You want to take that, Dilip? Frankly, I think that's really a difficult question for me to answer right now. Maybe Mikkel, we can take that offline, but I don't have numbers off the top of my head. Okay. We'll follow up with Mikkel. We have a question regarding the rail and maritime segment. from Lars. You were saying that you see a large potential within both rail and maritime, which now only contributes to about 4% of the total revenue mix. Do you expect the revenue split to change significantly in the coming years? What is your long-term target for these two new segments? I do think that in the coming years, we are in the development stage for these technologies. If we talk rail first, it's not at serial production. It takes a long time to develop the platform and to validate and test the platform before you are able to roll out the trains in larger volumes. There, we probably expect things to happen towards mid of the decade and onwards. For marine, it's a bit different because there are a lot of customized solutions. I do think that we expect to see an increased revenue from maritime applications overall. In terms of share, it all depends on when things are happening at larger volume. It's difficult, I think, to be very specific on that, other than to say that we really believe that hydrogen has a strong merit for near-shore maritime applications. We see very high interest from customers and from shipyards. There's lots of activities going on, so we do expect our business to grow in there. It probably won't have a meaningful impact in terms of share of revenue in 2021. In the years ahead, it will grow. Thank you. We have another CIMC Enric specific question. from Anders. What does the next few months mean? 17th of May. Is wondering if 17th of May. I understand that you don't want to provide and miss additional dates, but the current phasing seems to suggest a high degree of uncertainty. Also, why have you not traveled to China to close the deal? Are the borders really that closed? Morten? Yeah. It's an interesting question. You could, of course, always ask why have we not traveled to China. It has been a possibility to travel to China. On the balance of everything that we have had ongoing, we have not prioritized to do that. These are discussions that are possible to do, of course, without travel. It just takes, as I said, a little bit longer time. Was there another aspect of that question? No, I think you've covered it, Morten. Okay. Yeah. Good. It seems like China is a topic, a high topic today, and also maritime and rail. I have another maritime and rail question. How do you perceive the technical challenge and incremental investment needed in marine and rail? Over and above what you're currently doing in commercial vehicle? There are some technical challenges in the marine segment in particular that are different than what we see on road applications. Overall, there are a lot of similarities. It is about storing high pressure gas, and then transporting high pressure gas onto the vessel and into the storage tank and onto the fuel cell. There are some different technical challenges aboard a marine vessel compared to an on-road vehicle. Again, the basic competence that we have is solid and is right now not a limitation for us. A question about acquisitions. Do you have any acquisition plans for 2021? Our main focus is to develop the business from where we are and continue to do the development work with customers. There could potentially be also inorganic opportunities for us to grow, but it's not a main focus area. It's not something we rule out, but it's not a main focus area for us. We focus on building a strong business and a strong organization to capture the future opportunities. Thank you, Morten. A question about production cost. How much of the total production cost would your products make up for in a car? This is something we have discussed, Dilip, in several dialogues. Do you want to answer that? Yeah. Without guiding to any specific price points, I think the way to think about the revenue content for a hydrogen cylinder or hydrogen system inside of a light-duty vehicle is it's probably in the low thousands of EUR per vehicle. As you go into heavy-duty applications, Class 8 trucking, for example, or a transit bus, the revenue content is going to be multiples of that based on the amount of hydrogen you want to store on board. Thank you, Dilip. Do Purus also have tanks for ammonia for the maritime sector? We don't manufacture that at the moment, no. Short answer. Another question comes from Lars. In what markets and/or regions do you see the best potential for the meaningful growth for the next two quarters? That's his first question. His second question is, the growth of 50% in revenue, what segments of your business is this coming from? Yeah. Back to the outlook section. I think that we expect a couple of segments that we mentioned there to represent a large portion of growth for us in 2021. It is mainly battery electric heavy-duty trucks in North America we expect to be a revenue driver. The second one is in the distribution segment where we see increased demand for these distribution modules. Those, I think, would be the two largest revenue drivers in 2021. Yeah. Yeah. Morten, I would just add that in terms of the cadence of revenue over the year, we'd expect it to be a significantly back-half loaded year. Thank you, Dilip. Thank you, Morten. At this time, we've covered all the questions. Should you have any further questions, you can always send us an email to ir@hexagonpurus.com and we will answer you via email. We thank the audience for your participation and for being with us this morning, and we wish you a lovely rest of the day. Thank you. Thank you.