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ABOUT HEXAGON COMPOSITES
BOARD OF DIRECTORS' REPORT FINANCIAL STATEMENTS
IMPORTANT EVENTS IN 2015
Q1
THE MARKET
• Record delivery volumes for Heavy-Duty Vehicle operations.
• Softer Mobile Pipeline™ sales due to order postponements.
• Hexagon Lincoln launched new 27-inch cylinder, its largest and lightest vehicle
fuel tank to date.
PRODUCTION
• Reasonable capacity utilization in the Low-Pressure Cylinders segment.
ANNUAL PROFIT 2014
• Operating income increased 30% from 2014 to NOK 1,650.8 million.
• EBIT was NOK 256.8 million and profit after tax was NOK 164.7 million.
Q2
THE MARKET
• Continued soft Mobile Pipeline™ sales due to order postponements.
• Consecutive record-delivery performance in the quarter for Heavy-Duty
Vehicle operations.
PRODUCTION
• Continued good capacity utilization in the Low-Pressure Cylinders segment.
FINANCIAL MEASURES
• Bondholder’s Meeting approved early redemption of NOK 300 million bond.
• Secured extended financing facilities in a club-deal that increased financing
capacity from NOK 685 million to NOK 1 billion on an unsecured basis.
DIVIDEND
• Dividend of NOK 0.62 per share paid for 2014.
Q3
THE MARKET
• Awarded extension of MAN Truck & Bus supplier nomination for global transit
bus market.
• Released 16-inch all-carbon cylinder for transit bus and refuse truck market.
• Secured new long-term Low-Pressure Cylinders distribution agreement with
Gasco in Saudi Arabia.
PRODUCTION
• Good capacity utilization in the Low-Pressure Cylinders segment.
OPERATIONS
• Operating losses driven by very weak Mobile Pipeline™ and low seasonal
Low-Pressure Cylinders sales.
• Restructured European Light-Duty Vehicles business unit according to plan.
• Initiated additional program of cost saving initiatives to enhance weak
short-term profitability.
Q4
THE MARKET
• Nominated by a leading international vehicle modifier, to supply CNG fuel tanks
to passenger vehicles in Europe.
OPERATIONS
• Profitability was restored, though at lower levels than in the previous year.
• All restructuring and cost initiatives completed.
Q1 2016
THE MARKET
• Awarded extension of long-term agreement with New Flyer Industries for the
North American transit bus market.
OPERATIONS
• Established a separate business unit for Hydrogen storage and transportation
systems.
M & A
• Acquisition of 67 % of a Brazilian entity to pursue fuel systems opportunities for
transit buses and heavy-duty trucks.
INVESTMENT
• The Group announced proposed private placement of new shares and strategic
cooperation agreement with Mitsui & Co., Ltd.
2015 AT A GLANCE
STRATEGY AND OBJECTIVES GROUP RESULTS
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