Hexagon Annual Report 2019

77 Board of Directors' Report 2019 AT A GLANCE FROM THE BOARD ROOM FINANCIAL STATEMENTS Hexagon acquired 100% of Digital Wave at the end of 2018 and the remaining 50% of Agility Fuel Solutions at the start of 2019. With both companies fully integrated, Hexagon has a suite of solutions across the alternative energy spectrum, including compressed natural gas (CNG), renewable natural gas (RNG), propane, batteries and compressed hydrogen gas (CHG). Hexagon recorded revenues of NOK 3,416.1 million for the year 2019, compared with pro-forma NOK 2,880.6 million, including 100% of Agility Fuel Solutions in 2018. Normalized EBITDA for 2019 amounted to NOK 315.5 million, exclud- ing a gain of NOK 44.2 million from the Agility transaction net of all transaction charges. Pro-forma EBITDA for 2018 amounted to NOK 287.8 million, excluding the positive impact of a reduction of earn-out obligation related to the xperion acquisition in 2016 and legacy unvested stock compensation charges in Agility. KEY DEVELOPMENTS IN 2019 • Closed the Agility Fuel Solutions transaction on 4 January 2019 • Private placement of NOK 493 million in February 2019 • Placed new senior unsecured bond of NOK 1.1 billion in March 2019 • Awarded contract by Audi AG to supply hydrogen tanks for development and small FCEV serial production • Hexagon was informed of an indefinite delay of a fuel cell vehicle program for reasons unrelated to Hexagon • Nearly tripled the annual production volume of CNG LDV cylinders in Kassel, Germany • Expanded capacity in Kassel with a total invest- ment of around EUR 6 million (approx. NOK 74 million). Commissioned in second half of 2019 • Agility entered into a three-year exclusive agree- ment with UPS with a total estimated value of USD 65 to 95 million (approx. NOK 740 million to 1.1 billion) • Extended exclusive long-term agreement with New Flyer Industries with a total value of USD 75 million (approx. NOK 850 million) • Awarded fuel systems order for twelve hydrogen buses by Solaris • Selected by CaetanoBus for delivery of two fuel systems for hydrogen buses • Launched modular high-performance battery packs for electric and hybrid electric commercial vehicles, including for anchor customer Daimler Trucks North America • Mobile Pipeline® expanded into the renewable natural gas (RNG) market in the U.S • Hexagon Ragasco reached 17 million LPG cylinders in accumulated sales worldwide KEY DEVELOPMENTS AFTER BALANCE SHEET DATE • In January 2020, Hexagon was informed by an automotive OEM that the development project for hydrogen tanks was cancelled due to reasons unrelated to Hexagon • From January 2020, all e-mobility related businesses in the Group were consolidated in Hexagon Purus • In March 2020 the World Health Organization (WHO) declared the COVID-19 outbreak a pandemic. The outbreak has not had any signifi- cant impact on the Hexagon business units so far, but this might change if the pandemic crises escalates Note: Exchange rates applied as of 23-Mar-2020, equal to USD/NOK of 11.37 and EUR/NOK of 12.26