Hexagon Annual Report 2019

BALANCE SHEET – PARENT COMPANY HEXAGON COMPOSITES ASA (NOK 1 000) NOTE 31.12.2019 31.12.2018 EQUITY AND LIABILITIES EQUITY PAID-IN CAPITAL Share capital 1,7 18 329 16 663 Own shares 1 -197 -237 Share premium 1 1 203 145 727 639 Other paid-in capital 1 48 742 29 737 Total paid-in capital 1 270 018 773 803 Other equity 1 374 607 208 984 Total other equity 374 607 208 984 Total equity 1 644 625 982 787 LIABILITIES OTHER NON-CURRENT LIABILITIES Non-current interest-bearing liabilities 4 1 298 058 516 163 Deferred tax liabilities 9 33 297 22 213 Total other non-current liabilities 1 331 355 538 376 CURRENT LIABILITIES Liabilities to credit institutions 4,12 43 033 148 Trade payables 1 273 3 753 Income tax payable 9 35 026 33 995 Public duties payable 5 305 1 894 Allocated dividends 1 0 0 Other current liabilities 5 17 143 7 096 Total current liabilities 101 779 46 887 Total liabilities 1 433 134 585 263 Total equity and liabilities 3 077 760 1 568 050 Aalesund, Norway, 24 March 2019 The Board of Directors of Hexagon Composites ASA 85 Board of Directors' Report 2019 AT A GLANCE FROM THE BOARD ROOM FINANCIAL STATEMENTS Hexagon Purus continues to develop its leading position and pursue zero-emission opportunities in the growing e- obility market, including more than 50 hydrogen devel- opment projects. Substantial organizational investments are being made to develop the company’s capabilities and capacities. These investments impact the short and medium-term profitability. Hexagon expects a significant but temporary slowdown in the European CNG light-duty market in the first half of 2020 due to the Covid-19 crisis and Volkswagen’s relocation of its CNG car assembly line from Zwichau to Wolfsburg, Germany. In the medium term we expect demand to exceed 2019 levels. The demand for the company’s Mobile Pipeline® products is driven by conversion from petroleum fuels to cleaner CNG and RNG. RNG is recognized as the fastest and most effec- tive solution currently available to reduce greenhouse gas emissions. This is an important diversification should the weakening of the U.S. onshore oil & gas activity continue. Hexagon Ragasco volumes remain at a high level, how- ever with an unfavorable product mix. The business will continue to grow its positions in Asia and the Middle East, which is expected to balance a continued relatively weak European demand. The forward-looking statements made above are, by their nature, subject to significant risks and uncertainties because they relate to events and depend on circum- stances that are expected to occur in the future. They are therefore not guarantees of future performances. While the statements reflect the current views and expectations of Hexagon based on information currently available to it, they are subject to various assumptions, in addition to risks and uncertainties that may be outside of its control. We cannot provide any assurance that the assumptions underlying such forward-looking statements are free from errors nor acc pt any responsibility for the future accuracy of the opinions expressed herein, or the actual occurrence of the forecasted developments. Actual results could differ materially from those expressed or implied in forward- looking statements. Any forward-looking statements are based only on conditions as of the date on which they are made and we are under no obligation to update or alter such forward-looking statements whether as a result of new information, future events or otherwise." GOING CONCERN According to section 3-3a of the Norwegian Accounting Act, the Board confirms that the financial statements have been prepared on the assumption of a going concern. This assumption is based on profit forecasts for 202 as well as the Group’s long-term strategic forecasts. The Group’s financial position is deemed strong with sufficient liquidity and a robust equity ratio. THE PARENT COMPANY The Parent Company Hexagon Composites ASA incurred an operating loss of NOK -24.7 (-25.4) million in 2019 and a profit of NOK 163.7 (123.2) million. The Board of Hexagon Composites ASA proposes that the profit for the year is allocated as follows: (MNOK) Allocated to dividends 0.0 Transferred from/to other equity 163.7 Total allocations 163.7 STATEMENT FROM THE BOARD OF DIRECTORS AND GROUP PRESIDENT We confirm to the best of our knowledge that: • the financial statements for the Group and Parent Company for 2019 have been prepared in accordance with applicable accounting standards, and that the information provided in the financial statements gives a true and fair view of the Group's and Parent Company's assets, liabilities, financial position and financial perfor- mance as a whole, and • the Board of Directors' Report gives a true and fair over- view of the Group's and Parent Company's development, profit and financial position, together with a description of the principal risks and uncertainties that they face. Aalesund, Norway, 24 March 2020 The Board of Directors of Hexagon Composites ASA Knut Flakk Chairman of the Board Kristine Landmark Deputy Chair Sverre Narvesen Board Member Katsunori Mori Board Member Elisabeth Heggelund Tørstad Board Member Jon Erik Engeset Group President & CEO 67 155 2019 AT A GLANCE FROM THE BOARD ROOM FINANCIAL STATEMENTS