Hexagon Annual Report 2019

9 2019 AT A GLANCE FROM THE BOARD ROOM FINANCIAL STATEMENTS Important events G-MOBILITY – PROVIDING LOW-EMISSION SOLUTIONS Hexagon continues to deliver low emission solutions through its CNG and RNG fuel systems and high-pressure cylinder to medium and heavy-duty vehicles, light-duty vehicles and Mobile Pipeline modules globally. E-MOBILITY – ENABLING ZERO-EMISSION SOLUTIONS Hexagon will continue to have an active role in the e-mobility space, including battery electric and fuel cell electric products and systems. To prepare for the future growth, all e-mobility activities within the Group have since January 2020 migrated to Hexagon Purus – the Group’s clean play business. INVESTING IN WORLD CLASS MANUFACTURING – GEARING UP FOR SCALE In 2019, Hexagon Purus substantially increased its production capacity of high- pressure fuel tanks for CNG-powered passenger cars to meet the growing demand in Europe. IMPORTANT EVENTS 2019 STRONG PLATFORM TO PURSUE G-MOBILITY AND E-MOBILITY OPPORTUNITIES 3,416 MNOK 360 MNOK REVENUE • Agility 31% y-o-y growth supported by sustainability drivers • 141% y-o-y growth from CNG LDV • Strong development from Digital Wave EBITDA • Strong contribution from Agility, particularly from its Transit Bus segment • Hydrogen ramp-up effect of NOK -108 million • 14% Group EBITDA margin before Hydrogen investments FINANCE • Private placement of NOK 493 million • Placed new senior unsecured bond of NOK 1.1 billion • Strong balance sheet with 45% equity ratio With Agility Fuel Solutions and Digital Wave fully integrated, Hexagon delivers solutions across the whole clean fuels spectrum, including compressed natural gas (CNG) renewable natural gas (RNG), hydrogen and battery electric. Our strategic focus centers around strengthening our position within the gas mobility (g-mobility) and electrification mobility (e-mobility) space as well as developing world class manufacturing capabilities to meet the growing demand.