Hexagon Annual Report 2019

25 2019 AT A GLANCE FROM THE BOARD ROOM FINANCIAL STATEMENTS Hexagon Purus The global transition to a zero-emission society is acceler- ating with strong support from both public institutions and private companies. Hexagon maintains a leading position and substantial organizational investments are being made to further develop our position. To focus its pursuit of the growing market opportunities for low-carbon solutions, Hexagon has organized its hydrogen, battery electric and CNG Light-Duty Vehicles activities into a dedicated single business segment. OPERATING RESULTS Hexagon Purus generated NOK 472.7 (293.4) million in revenue and recorded EBITDA of NOK -35.2 (-48.8) million in 2019. NOK 396.9 (193.3) million of the revenue was generated from the CNG Light-Duty Vehicles business and NOK 75.8 (100.1) million from the Hydrogen business. The CNG LDV business was primarily attributed to deliver- ies to Volkswagen Group, while Hydrogen revenues were mainly derived from development projects. Read more about the financial results in the Board of Directors’ Report. KEY DEVELOPMENTS AND IMPORTANT EVENTS IN 2019 • Announced the ambition to combine all electric mobility (e-mobility) activities under Hexagon Purus • Awarded contract from Audi to supply hydrogen tanks for development and small FCEV serial production • Nearly tripled the annual production volume of CNG LDV cylinders • Expanded capacity in Kassel, Germany with a total investment of around EUR 6 million (approx. NOK 74 million). Commissioned in second half of 2019 • Awarded two additional CNG LDV customer models; SEAT Leon and Skoda Octavia OBJECTIVES ACHIEVED IN 2019 • Expanded its leading position in the European CNG LDV market • Increased production capacity and operational efficiency in Kassel, Germany • Invested significantly in expanding hydrogen-related businesses • Continued progress on existing hydrogen FCEV OEM development projects • Initiated development of hydrogen distribution solutions • Sharpened its zero-emission customer offering and strategic position OBJECTIVES FOR 2020–2021 • Successfully combine e-mobility activities in Hexagon Purus • Further improve cost efficiency and manufacturing productivity with increased automation and optimized value stream • Expand CNG light-duty vehicle customer portfolio globally, especially in emerging markets • Invest significantly in production footprint and products for current contracts and to further expand hydrogen and battery-electric related businesses • Successfully execute existing hydrogen OEM projects and win additional hydrogen projects • Successfully execute existing battery-electric pilot programs for truck OEMs in North America • Launch hydrogen distribution systems technology to offer integrated solutions to customers in Europe and North America. Note: Exchange rates applied as of 23-Mar-2020, equal to USD/NOK of 11.37 and EUR/NOK of 12.26