Integrated annual report
2024
Climate change is a severe threat to humanity,
to our planet and our ecosystems. Our decades
of experience, innovative mindset and strong
culture allow us to believe that we can answer
the highest-pressure challenge on earth. This
belief motivates our employees and drives our
business forward.
The future
is now
A driving
force for a
sustainable
planet
Our team is the cornerstone of our success.
We are dedicated to fostering an environment
where our team members can deliver their
best. Hexagon Purus’ strong values-based
culture drives our performance and guides
our decision-making processes and behavior.
Guided by our common core values of
Integrity and Drive, and our behaviors, we
have dedicated employees who are a driving
force for a more sustainable planet. Our
team works hard at turning our purpose
into reality because we strongly believe that
technology is no longer a barrier and that the
need for change is urgent. We hold ourselves
accountable for our interactions internally,
as well as externally with our customers,
suppliers, shareholders and communities.
PURPOSE
To be a driving force for
a sustainable planet
VALUES
Integrity and Drive
BEHAVIORS
Work for each
other’s success
Take
responsibility
Build trust and
be inclusive
Embrace challenges
and failures
Hexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024
33
OUR ORGANIZATION
Hexagon Purus at a glance
Workforce
1
848
Global footprint
8
locations
across
3 continents
OUR RESULTS
Revenue
1 876 MNOK
YoY revenue growth
42%
EBITDA
-348 MNOK
Cash
1 028MNOK
EBITDA Margin
-19%
Total assets
4 934 MNOK
Employees
1
Including temporary workers, excluding agency workers
Hexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024
4
Reflecting on 2024
6
A word from the CEO
6
Highlights 2024
8
Objectives for 2025
10
Our strategy
11
Our business
12
Executive management
24
From the Board room
26
Board of Directors’ report
26
Corporate governance report
39
Sustainability statements
43
Value creation
44
General
48
Environment
57
Social
85
Governance
107
ESRS index
112
ESRS data points from other EU Legislation
117
Financial statements
120
Financial statements Group
121
Financial statements Parent Company
172
Auditor’s report
187
Sustainability assurance report
193
Appendix
198
Glossary
198
Financial calendar
199
Contents
This is Hexagon Purus’ Integrated Annual Report
2024, presenting our financial statements, notes
to the financial statements, the Board of Directors
report, and the sustainability statements prepared
in accordance with the European Sustainability
Reporting Standards (ESRS). The report also includes
information about Hexagon Purus’ strategy, business
model, and approach to sustainable value creation.
Unless otherwise specified, the information covers
the Hexagon Purus Group and its subsidiaries. An
overview of the various ESRS topics and disclosure
requirements we report on, in addition to any
references, comments, or omissions, can be found
in the ESRS index in this report. Hexagon Purus
has engaged our financial auditor to perform
external assurance on our ESRS reporting and/or
sustainability reporting.
Hexagon Purus ASA | Annual report 2024
A WORD FROM THE CEO
Shifting focus from growth to tackling
consequences of geopolitical shifts
We continued our strong growth journey in 2024, increasing annual revenue by 42%.
We also delivered a significant improvement in EBITDA margin as targeted. As in
previous years, hydrogen infrastructure was a sizable contributor to revenue growth,
but hydrogen mobility also grew substantially in 2024, driven mainly by increased
demand from our transit bus customers.
When I view 2024 in light of our five-year plan, I see that we
have achieved a lot of what we set out to do. We have moved
the Company forward by significantly growing revenue, further
strengthening our leading position with customers and con-
tinuing to build a strong and diversified customer portfolio
that will provide a solid base for Hexagon Purus in the years to
come. Equally important, we have also substantially improved
the Group’s EBITDA performance, almost achieving break-even
full year EBITDA in the Hydrogen Mobility and Infrastructure
segment. And we have all but completed the multi-year capac-
ity expansion program which gives us a global manufacturing
footprint that solidifies our leading industry position globally.
Looking in the rear-view mirror, four years into our five-year
plan, we are largely where we had planned to be at this point in
our development.
Looking forward, though, the market appears more challenging.
The energy transition is moving forward, but at a slower pace
than needed and expected. While there have been notable
advancements in the adoption of renewable energy, the overall
progress for hydrogen has been dampened by cost inflation,
regulatory uncertainty and growing geopolitical tensions.
The near-term market outlook deteriorated significantly follow-
ing the U.S. presidential election, where the sudden uncertainty
around policy has resulted in customers delaying purchasing
decisions. Several individual states in the US, including
California, remain committed to the decarbonization of the
transportation sector. And while some regulations and pro-
grams will be impacted by the views of the federal government,
it’s likely that the market for zero-emission trucks will continue
Hexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024
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REFLECTING ON 2024 | A WORD FROM THE CEOREFLECTING ON 2024 | A WORD FROM THE CEO
With a weaker near-term outlook and lower demand visibility, we
needed to take appropriate measures to reduce our cost base.
Hexagon Purus has been rigged for growth and carries a cost base
that requires higher revenue to break-even. As a significant part of
2025 revenue growth was expected to come from North America, it
became necessary to revise our planning and reduce our capacity
costs. We therefore took the decision to reduce our costs by
approximately NOK 200 million on an annualized basis, including
an approximate 15% reduction in workforce. We also launched a
review of our overall business portfolio to make further adjustments
needed to secure the Company’s cash runway to EBITDA and cash
flow break-even.
We are committed to taking the necessary measures to navigate
through a challenging industry and market environment. The
Company is a highly relevant solutions provider for the energy
transition. We have a solid and diversified customer portfolio, with
significant exposure to market segments that are less impacted
by the delayed energy transition. With a solid balance sheet, a
flexible manufacturing footprint with limited need for additional
investments and by continuously adapting the cost structure to
market conditions, I believe that we are well positioned for the
years ahead.
Morten Holum
President & CEO
“We are committed
to taking the
necessary measures
to navigate through
a challenging
industry and market
environment”
Hexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024
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REFLECTING ON 2024 | A WORD FROM THE CEOREFLECTING ON 2024 | A WORD FROM THE CEO
Opened new and expanded hydrogen
infrastructure and systems manufacturing hub
in Weeze, Germany, significantly increasing
capacity of Type 4 high-pressure hydrogen
infrastructure solutions
Launched the Tern RC8 battery electric
heavy-duty truck for the US market, in
partnership with Hino Motors, at the ACT
Expo show in Las Vegas
Confirmed by Toyota Motor North America
(TMNA) as supplier of components for its
heavy-duty fuel cell electric powertrain kits for
hydrogen powered heavy-duty vehicles
Secured up to CAD 8.5 million in funding from
the Commercial Vehicle Innovation Challenge
(CVIC) in Canada to further develop the
Company’s battery electric vehicle technology
Highlights 2024
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REFLECTING ON 2024 | HIGHLIGHTS 2024REFLECTING ON 2024 | HIGHLIGHTS 2024
Signed a multi-year supply agreement with
GILLIG, a leading designer and manufacturer of
heavy-duty transit buses in the United States, for
supply of hydrogen fuel storage systems for their
new fuel cell powered transit buses
Secured an order from Freire Shipyard for a
hydrogen fuel system for a Greenpeace vessel
Successfully raised approximately
NOK 1 billion in equity
Selected by New Flyer, North America’s largest
mass mobility solutions provider, to supply Type
4 hydrogen cylinders for the fifth consecutive
year for their next generation, zero-emission
hydrogen fuel cell-electric transit bus, the
Xcelsior CHARGE FC™
Hexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024
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REFLECTING ON 2024 | HIGHLIGHTS 2024REFLECTING ON 2024 | HIGHLIGHTS 2024
The broader energy transition is developing slower than expected in
Europe and North America, creating a challenging market backdrop and
limited forward visibility on customer demand for 2025. With a weaker
near-term demand outlook, capital discipline is now the key priority as we
enter 2025. The Company is taking appropriate actions to reduce its cost
base and secure the cash runway.
Cut annualized costs by approximately NOK 200 million
Review of overall business portfolio to make further cost adjustments
Secure cash runway and shorten time to profitability
Objectives
for 2025
Hexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024
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REFLECTING ON 2024 | OBJECTIVES FOR 2025REFLECTING ON 2024 | OBJECTIVES FOR 2025
Production capacity
We are present with production facilities in eight locations
across three continents ready to serve any customer with
ambitions for a sustainable planet.
Innovation
We use our extensive engineering and technological
knowledge and capabilities to innovate and improve
zero-emission
2
technologies for tomorrow.
Workforce
Our workforce of dedicated and competent employees
are the cornerstones of our current and future success,
contributing significantly to ensure the quality and safety of
our products.
Relationships and business partners
Our zero-emission technology solutions rely on close and
proactive cooperation with our suppliers and business
partners, and we are proud to work together with them for a
more sustainable planet.
Financial capital
We are backed by world-class strategic partners, such as
Mitsui & Co., Hexagon Composites, and Hy24, contributing to
a robust and financial foundation for long-term growth.
Natural capital
Our products and solutions rely on natural resources either as
unrefined materials or derivatives. We must optimize the use
of our resources, integrating sustainability in decision making.
Operational growth
We grew revenue in 2024 by 42%, driven by solid momen-
tum in hydrogen infrastructure and mobility solutions.
EBITDA margin improved significantly year-over-year.
Financial support
We successfully raised NOK 1 billion in equity, supported
by our strategic partners Mitsui & Co. and Hexagon
Composites.
Customer growth
We continue to grow our customer base with new faces
such as GILLIG, a leading designer and manufacturer
of heavy-duty transit buses in the United States, while
at the same time ensuring that we nurture our existing
customers.
Workforce development
We continue to upskill our employees. In 2024, we took
a major step by committing to a company-wide learning
management system to further formalize and structure our
employee training.
Health & safety
Our facilities in Weeze and Kassel are now ISO 14001
and ISO 45001 certified, a testament to our commitment
to environmental and occupational health & safety
performance.
PURPOSE
Be a driving force for
a sustainable planet
Improve quality
• Robust supply chain
• Continuous product
development
• Learn and improve
Increase efficiency
• Health & safety
• Operations
• Lean structure
Drive down costs
• Scale
• Supply chain &
procurement
• Innovation & development
INPUT
1
OUTPUTVALUE CREATION
STRATEGIC FOCUS AREAS
PRODUCTS AND SOLUTIONS
Hydrogen
storage systems
Hydrogen
storage cylinders
Battery
systems
Hydrogen fuel
storage systems
Vehicle
integration
1
SBM-1 42
2
By “zero-emission” we refer to “zero-tailpipe carbon emission”. “Zero-emission” or “zero emission” will be used throughout the report.
1111
REFLECTING ON 2024 | OUR STRATEGYREFLECTING ON 2024 | OUR STRATEGY
OUR BUSINESS
|
HYDROGEN AND BATTERY STORAGE OFFERING
1
Core component
and systems
technology offering
Hexagon Purus’ Type 4 hydrogen cylinders and systems
Hexagon Purus’ proprietary battery systems for heavy-duty trucks
Type 4 cylinder Hydrogen fuel
storage systems
Battery systems Power module
(eBTC)
Auxiliary module
Hexagon Purus is a leading player in the
hydrogen infrastructure and zero-emission
mobility space offering hydrogen and
battery energy storage solutions. The
company’s hydrogen systems based on
Type 4 cylinder technology and battery
systems and vehicle-level software enable
safe and efficient use of hydrogen and
battery electricity in a variety of zero-
emission infrastructure and mobility
applications.
1
1 SBM-1 40ai
Hexagon Purus ASA | Annual report 2024
12
REFLECTING ON 2024 | OUR BUSINESS
OUR BUSINESS
|
HYDROGEN AND BATTERY STORAGE OFFERING
1
Hydrogen Mobility
and Infrastructure
Transit bus MaritimeRail
Highlighted hydrogen mobility applications
Hydrogen electric
heavy-duty trucking
Highlighted infrastructure applications
Hydrogen distribution Mobile refueling Stationary storage
Hexagon Purus’ core hydrogen cylinder and systems technology enables
energy to be stored and consumed across multiple applications including
hydrogen distribution, hydrogen mobile refueling, transit bus, heavy-duty
trucking, rail and maritime.
Our technology offering is a key enabler to decarbonize hard-to-abate
industries.
1
1SBM-1 40aii, 40e
Hexagon Purus ASA | Annual report 2024
13
REFLECTING ON 2024 | OUR BUSINESS
OUR BUSINESS
|
VEHICLE INTEGRATION OFFERING
1
Complete vehicle
integration
capabilities in
North America
Our unique vehicle integration capabilities
coupled with our proprietary product
portfolio of key components and
technologies required for electrification
of heavy-duty trucking, make us an
attractive partner for truck OEMs.
Overview of Hexagon Purus’ proprietary portfolio technology
Complete vehicle integration
for battery electric
heavy-duty trucks
Complete vehicle integration
for hydrogen electric
heavy-duty trucks
Hydrogen fuel
storage systems
Power modules
(eBTC)
Battery systems Auxiliary modules
1
SBM-1 40ai, 40aii, 40e
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REFLECTING ON 2024 | OUR BUSINESSREFLECTING ON 2024 | OUR BUSINESS
Manufacturing
footprint
In 2024, Hexagon Purus finalized its two-year long
capacity expansion program, with ramp-up now
completed in seven new locations on three continents.
BATTERY SYSTEMS AND VEHICLE INTEGRATION HYDROGEN MOBILITY AND INFRASTRUCTURE
CHINA
JOINTVENTUREMARITIME
Ontario USA
Prototype integration and
service facility
Kelowna Canada
Battery systems and
auxiliary modules
Kassel Germany
Hydrogen cylinders
and systems
Dallas USA
Vehicle integration
facility
Weeze Germany
Infrastructure systems
Westminster USA
Hydrogen cylinders and
specialty storage solutions
Ålesund Norway
Maritime systems
Shijiazhuang China
Hydrogen cylinders
and systems
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REFLECTING ON 2024 | OUR BUSINESSREFLECTING ON 2024 | OUR BUSINESS
Kassel Germany
Footprint: Approximately
22 000 square meter facility
Capacity: Up to 20 000
cylinders annually
Status: In operation
Weeze Germany
Footprint: Approximately
20 000 square meter facility
Capacity: Up to 200 hydrogen
distribution modules
(40 ft equivalent)
Status: In operation
HYDROGEN MOBILITY AND INFRASTRUCTURE
Westminster USA
Footprint: 60 000 square
foot facility
Capacity: Up to 10 000
cylinders annually
Status: In operation
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Ontario USA
Footprint: Approximately
12 000 square foot facility
Capacity: Transitioning in 2024
to a service center for battery
and hydrogen electric trucks
Status: In operation
Kelowna Canada
Footprint: Approximately
64 000 square foot facility
Capacity: Production of up to
1 300 battery systems annually
Status: In operation
Dallas USA
Footprint: Approximately
200 000 square foot facility
Capacity: Up to 1 000
vehicles annually
Status: In operation
BATTERY SYSTEMS AND VEHICLE INTEGRATION
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REFLECTING ON 2024 | OUR BUSINESSREFLECTING ON 2024 | OUR BUSINESS
HEXAGON PURUS MARITIME CHINA JOINT VENTURE MANUFACTURING
Ålesund Norway
Footprint: Approximately 600
square meter facility
Status: In operation
Shijiazhuang China
Footprint: Approximately
22 000 square meter facility
Capacity: Up to 20 000 cylinders annually
Status: Construction completed
Hexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024
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Hexagon Purus addresses the need to transport hydrogen
for industrial and mobility use through its hydrogen
distribution system by allowing cost effective transportation
from point of production to point of consumption.
Hexagon Purus’ hydrogen distribution technology is
agnostic to the color of the hydrogen molecule, and is
equally relevant and competitive for grey hydrogen, which
is widely used in several industrial applications today.
The market for transportation of hydrogen has historically
been dominated by major industrial gas players such as Air
Liquide and Linde. Over the recent years, several emerging
green hydrogen producers such as Lhyfe and Norwegian
Hydrogen have been established targeting the ongoing
energy transition. Both sets of customers rely on Hexagon
Purus’s Type 4 distribution modules for efficient transport
of hydrogen for use in both mobility- and industrial
applications. Industrial applications include, amongst other
chemical processing, semiconductors, and food production.
The major industrial gas players have traditionally
transported hydrogen using older Type 1 technology but
are replacing it with the newer Type 4 technology offering
a lower total cost of ownership. The Type 4 technology also
allows for higher pressure compared to Type 1 technology,
which makes it ideal for transportation of hydrogen to
certain industrial and mobility applications.
INFRASTRUCTURE APPLICATIONS
1
Hydrogen distribution
Our hydrogen distribution systems, built on Type 4
high-pressure cylinders offer a superior combination of
weight and payload, enabling greater hydrogen capacity
compared to Type 1 cylinders and a lower total cost of
ownership. Today, Type 4 cylinders have become the
preferred technology for transporting hydrogen from
point of production to end-use location.
The Company believes that the market for hydrogen distribution
systems will continue to be an attractive long-term market
for Hexagon Purus as more hydrogen becomes available. The
Company is well positioned for future market opportunities with a
diverse customer base of both traditional and emerging hydrogen
producers, combined with a market leading manufacturing capacity
footprint in Kassel and Weeze (Germany).
Weeze Germany Kassel Germany
1
SBM-1 40aii, 40e, 40f, 40g
MARKET OUTLOOK
Hexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024
1919
REFLECTING ON 2024 | OUR BUSINESSREFLECTING ON 2024 | OUR BUSINESS
INFRASTRUCTURE APPLICATIONS
1
Mobile hydrogen refueling
INFRASTRUCTURE APPLICATIONS
Stationary hydrogen storage
Hexagon Purus delivers mobile refueling solutions for hydrogen mobility applications. A
mobile refueling unit is essentially a distribution unit with dispensing technology added on
board and can be modified to serve both on-and off-road mobility. The lack of developed
hydrogen refueling infrastructure presents a significant barrier to the widespread adoption
of hydrogen electric vehicles. Mobile hydrogen refueling stations address this gap by
offering a flexible, cost-effective solution for customers not yet ready to invest in permanent
refueling infrastructure, enabling lower initial capital costs compared to fixed hydrogen
refueling stations and allowing for gradual build-up of hydrogen mobility fleets.
Hexagon Purus delivers stationary ground storage solutions for hydrogen based on a
modular and flexible design. A stationary ground storage unit is a flexible and scalable
solution allowing for further expansion after initial installation. The units come in a range
of pressure levels (200-1 000 bar) and are stackable to ensure optimal use of available floor
space. Stationary ground storage is optimal for storing large quantities of hydrogen at
refueling stations or close to industrial applications.
Weeze Germany Kassel Germany Weeze Germany Kassel Germany
1
SBM-1 40aii, 40e, 40f, 40gHexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024
2020
REFLECTING ON 2024 | OUR BUSINESSREFLECTING ON 2024 | OUR BUSINESS
MOBILITY APPLICATIONS
1
Heavy-duty trucking
Hexagon Purus delivers hydrogen storage cylinders and
systems for heavy-duty trucking in Europe and North
America, in addition to battery systems and complete
vehicle integration of battery electric and fuel-cell electric
vehicles in North America. Hexagon Purus has more than
20 years’ experience working with OEMs integrating energy
storage systems and offers best-in-class electric drivetrain
components and storage technology for battery and
hydrogen electric trucking.
Kelowna Canada
Westminster USA
Dallas USAOntario USA
Kassel Germany
Picture credit: Nikola
Zero-emission heavy-duty trucking plays a substantial role
in reducing emissions within the transportation sector,
however, the broader energy transition is facing increasing
headwinds in Europe and North America. The market for
zero-emission heavy-duty is consequently developing
slower than anticipated, and the near-term market outlook
has become increasingly uncertain following the US
presidential election as customers are delaying purchasing
decisions. Successful adoption of both battery- and
hydrogen electric technologies will require continued
regulatory schemes as well as improved availability of
charging and refueling infrastructure.
For hydrogen trucking, there are limited expectations for
meaningful volumes in the near to medium term as most
incumbent OEMs target hydrogen model introductions
towards the end of this decade. In the longer term,
Hexagon Purus is well positioned as a key component
and system supplier for hydrogen trucking with a leading
technology offering as well as a newly established
manufacturing capacity footprint in Kassel (Germany) and
Westminster (US).
For battery electric trucking in North America, following the US
presidential election, there is limited forward visibility on timing for
customer demand and a slower ramp-up curve is now expected.
Hexagon Purus is well positioned to serve the battery electric heavy-
duty trucking market in North America through its comprehensive
know-how and technology solutions as well as newly established
manufacturing footprint in Dallas (US) and Kelowna (Canada).
1
SBM-1 40aii, 40e, 40f, 40g
MARKET OUTLOOK
Hexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024
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REFLECTING ON 2024 | OUR BUSINESSREFLECTING ON 2024 | OUR BUSINESS
MOBILITY APPLICATIONS
1
Transit bus
Hexagon Purus delivers hydrogen cylinders and storage
systems to transit bus manufacturers globally. Our flexible
and customizable range of high-pressure cylinders systems
is perfectly suited for installation in buses and can help
reduce noise and harmful emissions into the environment.
Westminster USA Kassel Germany
The push for zero-emission fleets continues in cities and
local municipalities and for transit authorities seeking
alternatives to battery-electric buses, hydrogen buses offer
a complementary solution. Several thousand hydrogen
buses are already in operation with many operators,
particularly public ones, planning to transition their fleets
to zero emission. A hydrogen bus has several unique
advantages in terms of extended range, high operational
frequency, rapid refueling and performance in both hot
and cold climates where significant onboard energy is
needed for heating and cooling. Additionally, hydrogen
buses can refuel at centralized depots, making them less
dependent on widespread public refueling infrastructure
like heavy-duty trucks.
In Europe, hydrogen buses have gained momentum on the
back of strong regulatory support and increasing numbers
of ambitious transit bus manufacturers introducing
hydrogen platforms as part of their zero-emission offerings.
Leading European manufacturers, including Solaris and
CaetanoBus are pushing adoption across European cities.
The EU is also supporting adoption through ambitious
policies including 100% zero-emission city bus sales by 2035
and a 90% emissions reduction for most new trucks and
buses by 2040. In North America, the demand for hydrogen
buses remains more localized with California spearheading
the adoption of public zero-emission transportation. This
is largely due to state-level policies, such as California Air Resource
Board (CARB) requirement that all new transit bus purchases must be
zero-emission by 2029. New Flyer, the leading North American transit
bus manufacturer, already has hydrogen buses on the road and is
serving a growing demand in North America.
Hexagon Purus is well positioned to serve a growing demand for
hydrogen transit bus and to capitalize on future market opportunities
with a strong customer base in both Europe and North America, as
well as newly established manufacturing capacity footprint in Kassel
(Germany) and Westminster (US).
1
SBM-1 40aii, 40e, 40f, 40g
MARKET OUTLOOK
Hexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024
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OTHER MOBILITY APPLICATIONS
1
Rail Maritime
Hexagon Purus delivers on-board hydrogen storage solutions to rail applications. Our Type
4 high-pressure cylinders are designed for hydrogen-powered trains, offering high energy
density and long-range capability. Hydrogen is an attractive solution to decarbonize rail
transport, especially for regions where direct electrification is not viable. Hydrogen based rail
transport does not require massive track overhauls and can be achieved also by retrofitting
existing diesel trains. Hexagon Purus storage technology help support shift to zero-emission
rail applications by providing a reliable, efficient, and safe solution.
Hexagon Purus combines extensive hydrogen storage and maritime expertise to provide a
holistic approach to zero emission maritime solutions. Hydrogen’s energy density and range
make it particularly suitable for scenarios requiring continuous operations that would not
suit regular charging. Hydrogen is especially attractive for inland or coastal cargo vessels,
offshore oil and gas service vessels, wind farm support ships, fish farming boats, and
passenger ferries. Hexagon Purus plays a key role in developing maritime industry standards
for onboard fuel storage of hydrogen and are working closely with class societies on setting
industry safety standards. Strong focus on safety and performance is critical for hydrogen
fueled shipping maritime to succeed in the longer term.
Ålesund NorwayKassel Germany
1
SBM-1 40aii, 40e, 40f, 40gHexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024
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REFLECTING ON 2024 | OUR BUSINESSREFLECTING ON 2024 | OUR BUSINESS
Executive management
1,2
1
Per 31.12.2024
2
GOV-1 20a, 20c
3
Includes shares owned by related parties
Morten Holum
President & CEO
Salman Alam
CFO
Anne Lise Hjelseth
EVP, People & Culture
Experience
Morten Holum was appointed President of Hexagon Purus in March 2020.
He joined Hexagon Composites in 2019 as Executive Vice President and Chief
Operating Officer. Prior to joining Hexagon, he was CFO and then CEO
of Saferoad Group, a leading European supplier of road safety and road
infrastructure solutions. He has also held management positions in Norske
Skog, Norsk Hydro and American Airlines.
Education
Morten has a BSc in Finance and Psychology from Østfold University College
and the University of Oslo and an MBA from the University of North Carolina.
Board positions in other companies
Chair of the Board of Jets Vacuum AS
Relevant skills and competencies
Management: General · CEO / large scale leadership · CFO, finance and
audit committee · Investor and capital market relationships · Mergers and
acquisitions · Strategy
Other: Safety · Manufacturing operations
ESG: Environmental · Social · Governance
Experience
Salman Alam joined Hexagon Purus in 2020 and was appointed CFO in
March 2023. Prior to that, he served as SVP, Corporate Development of the
Company. Before to joining Hexagon Purus, he was Director of Finance at
Hexagon Composites. Salman has broad international experience within
financial services, including from investment banking at Goldman Sachs in
London and equity research at Carnegie in Oslo.
Education
Salman holds a BSc in Business and Economics from BI Norwegian Business
School and an MSc in Finance from London Business School.
Board positions in other companies
Chairman, Hexagon Technology H2 AS
Board member, Hexagon Purus HK Holding AS
Relevant skills and competencies
Management: CFO, finance and audit committee · Investor and capital
market relationships · Financing · Mergers and acquisitions · Strategy · Legal
and public affairs · Risk management
Other: Energy sector · Manufacturing operations
Experience
Anne Lise Hjelseth joined Hexagon Purus in January 2022 as Executive Vice
President and has the responsibility for People & Culture, Sustainability &
Communication. She is a seasoned executive with extensive international
experience from a variety of industries within HR, Culture, Organizational
Development, Communication, and Sustainability. Prior to Hexagon Purus,
she was part of the executive teams at Wallenius Wilhelmsen, Kitron and
Cambi and held several international leadership roles within Eli Lilly & Co.
Education
Anne Lise holds an MSc in Engineering, Organic Chemistry, from the
Norwegian University of Science and Technology (NTNU).
Board positions in other companies
Not applicable.
Relevant skills and competencies
Management: Global leadership · Organizational development, incl. change
management · Mergers and acquisitions · Strategy · HR / remuneration
Other: Technology · Innovation · Manufacturing · Sales · Marketing ·
Communication
ESG: Environmental · Social · Governance
Birth year: 1967
Nationality: Norwegian
No. of shares: 349 630
3
Tenure: 2020
Birth year: 1991
Nationality: Norwegian
No. of shares: 140 711
Tenure: 2020
Birth year: 1969
Nationality: Norwegian
No. of shares: 84 715
Tenure: 2022
Hexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024
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REFLECTING ON 2024 | EXECUTIVE MANAGEMENTREFLECTING ON 2024 | EXECUTIVE MANAGEMENT
Executive management cont.
Michael Kleschinski
EVP, Hydrogen Mobility & Infrastructure
Todd Sloan
EVP, Battery Systems & Vehicle Integration
Experience
Michael Kleschinski was appointed Executive Vice President in March 2020.
From 2016, Michael was President of Hexagon Purus and has previously
held different management positions within production and engineering
in Hexagon Composites. Before joining Hexagon Composites he was the
Managing Director of Xperion Energy & Environment.
Education
Michael has a BSc with Honors in Mechanical Engineering from the University
of Glasgow, Dipl.-Ing. general engineering and a Ph.D. in composite
materials from Darmstadt University.
Board positions in other companies
Not applicable.
Relevant skills and competencies
Management: General · CEO / large scale leadership · Strategy
Other: Safety · Quality · Energy sector · Innovation · Manufacturing operations
Experience
Todd Sloan was appointed Executive Vice President in February 2019.
Previously he was Senior Vice President Innovation and Global Business
Development at Agility Fuel Solutions. Todd is one of the founders of Agility
Fuel Solutions, now part of Hexagon Composites. He is a 25-year veteran in
the clean vehicle technology industry and holds multiple patents.
Education
Todd holds a Bachelor of Engineering in Mechanical Engineering industry.
Board positions in other companies
Not applicable.
Relevant skills and competencies
Management: General · Large scale leadership · Strategy · Innovation
· Sales & Marketing
Other: Safety · Quality · Innovation · Manufacturing operations
ESG: Environmental
Birth year: 1975
Nationality: German
No. of shares: 247 025
Tenure: 2014
Birth year: 1970
Nationality: Canadian
No. of shares: 204 811
Tenure: 2001
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REFLECTING ON 2024 | EXECUTIVE MANAGEMENTREFLECTING ON 2024 | EXECUTIVE MANAGEMENT
BOARD OF DIRECTORS’ REPORT
Board of Directors’ report
Hexagon Purus is a global leader in the hydrogen infrastructure
and zero-emission mobility space offering leading hydrogen and
battery energy storage solutions and heavy-duty vehicle integration.
Our solutions enable the safe and effective use of hydrogen and
battery electric systems in a variety of applications including
hydrogen distribution, mobile refueling, industrial manufacturing,
transit bus, heavy-duty trucking and maritime. Hexagon Purus ASA
is headquartered in Oslo, Norway with business activities mainly
located in Germany, USA, Canada and China.
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FROM THE BOARD ROOM | BOARD OF DIRECTORS’ REPORTFROM THE BOARD ROOM | BOARD OF DIRECTORS’ REPORT
Key developments of 2024
• Opened new and expanded hydrogen infra-
structure and systems manufacturing hub
in Weeze, Germany, significantly increasing
capacity of Type 4 high-pressure hydrogen
infrastructure solutions
• Launched the Tern RC8 battery electric heavy-
duty truck for the US market, in partnership
with Hino Motors, at the ACT Expo show in Las
Vegas
• Confirmed by Toyota Motor North America
(TMNA) as supplier of components for its
heavy-duty fuel cell electric powertrain kits for
hydrogen powered heavy-duty vehicles
• Secured up to CAD 8.5 million in funding from
the Commercial Vehicle Innovation Challenge
(CVIC) in Canada to further develop the battery
electric vehicle technology
• Signed a multi-year supply agreement with
GILLIG, a leading designer and manufacturer of
heavy-duty transit buses in the United States,
for supply of hydrogen fuel storage systems for
their new fuel cell powered transit buses
• Secured an order from Freire Shipyard for a
hydrogen fuel system for a Greenpeace vessel
• Successfully raised approximately NOK 1 billion
in equity
• Selected by New Flyer, North America’s
largest mass mobility solutions provider, to
supply Type 4 hydrogen cylinders for the fifth
consecutive year for their next generation,
zero-emission hydrogen fuel cell-electric
transit bus, the Xcelsior CHARGE FC™
• Daimler Truck North America and Hexagon
Purus end supply agreement for battery elec-
tric vocational vehicles
Financial results
Profit/loss
In 2024, Hexagon Purus (“the Company” or “the
Group”) generated NOK 1 876 million in revenue,
up 42 per cent compared to the full-year revenue
in 2023. Hydrogen infrastructure solutions
and hydrogen mobility were the main drivers
of growth, coupled with revenue from vehicle
integration following the delivery of the first
trucks to Hino.
Cost of materials as % of revenue was 58 per
cent for the full-year 2024, compared to 59 per
cent for the full-year 2023. In relative terms, as
a % of revenue, payroll expenses for the full-
year 2024 were 40 per cent (47 per cent) and
increased on an absolute basis as a function of
increased headcount. Total operating expenses
for the full-year 2024 ended at NOK 2 224 (1 765)
million, leading to an operating profit before
depreciation (EBITDA) of NOK -348 (-445) million.
Depreciation and impairment for the full-year
2024 was NOK 562 million, up from NOK 150
million for the full-year 2023 with the increase
driven mainly by impairment of fixed assets
and goodwill of NOK 355 million coupled with
a higher base of depreciable assets. Operating
profit (EBIT) for the full-year 2024 consequently
ended at NOK -911 (-595) million.
Share of income from investments in associates,
which reflects Hexagon Purus’ minority share-
holdings in Cryoshelter H2 GmbH and CIMC
Hexagon Hydrogen Energy Systems td., was
NOK -36 (-13) million for the full-year 2024. Given
the decision to cease funding to Cryoshelter
LH2 GmbH, an impairment charge of NOK 19
million related to the Company’s shareholding
in Cryoshelter was recognized in 2024. Finance
income for the full-year 2024 was NOK 100 (104)
million, of which approximately NOK 76 million
relates to foreign exchange fluctuations and
approximately NOK 24 million relates to interest
income on bank deposits. Finance costs for the
full-year 2024 were NOK 365 (187) million, of
which approximately NOK 210 million relates
to non-cash interest on the 2023/2028 and
2024/2029 convertible bonds. Approximately
NOK 39 million stems from interest on lease
liabilities and other interest-bearing debt and
NOK 59 million relates to foreign exchange
fluctuations. The remaining relates mainly to
an impairment charge of outstanding debt to
Cryoshelter LH2 GmbH of NOK 55 million. Tax
expense for the full-year 2024 was NOK-9 (-8)
million, and net profit after tax ended at NOK -1
202 (-684) million.
Cash flow
Net cash flow from operating activities for the
full-year 2024 was NOK -682 (-713) million, of
which NOK -288 (-249) million was due to an
increase in net working capital.
Net cash flow from investing activities was NOK
-535 (-597) million for the full-year 2024, of which
NOK 428 (443) million relates to investments in
production equipment and facilities related to the
capacity expansion program. Capitalized product
development expenditure was NOK 49 (40) million
for the full-year 2024. The final settlement of
the contingent earn-out related to the Wystrach
acquisition was also made in 2024, amounting to
NOK 43 million. Additionally, during 2024, NOK 17
million was contributed to Cryoshelter H2 GmbH
for development work related to developing liquid
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FROM THE BOARD ROOM | BOARD OF DIRECTORS’ REPORTFROM THE BOARD ROOM | BOARD OF DIRECTORS’ REPORT
hydrogen storage solutions, and NOK 15 million
to Norwegian Hydrogen AS. Interest received
on deposits for the full-year 2024 amounted to
NOK 21 (30) million.
Net cash flow from financing for the full-year
2024 was NOK 1 907 (1 261) million, mainly driven
by issuance of NOK 1 000 million (gross) in new
equity and approximately NOK 1 000 million
(gross) in convertible bonds during 2024. The
majority of the outflow from financing is related
to lease payments, which for the full-year 2024
amounted to NOK -82 (-52) million. Cash interest
payments for the full-year 2024 amounted to
NOK -3 (-21) million.
Net change in cash and cash equivalents for
the full-year 2024 was NOK 690 (-49) million,
and currency exchange differences on cash was
NOK 30 (-25) million. Cash and cash equivalents
ended at NOK 1 028 (307) million.
Balance sheet
Total assets at year-end 2024 amounted to NOK 4
934 (3 773) million. The year-over-year increase
in total assets is mainly driven by increases to
property, plant and equipment to NOK 1 204
(867) million and right-of-use assets to NOK 561
(545) million as a result of the Company’s capacity
expansion program, combined with an increase
in working capital to cater for higher revenue. The
cash balance increased following the Company’s
equity capital raise in October 2024. Trade
receivables increased to NOK 351 (275) million at
year-end 2024 and inventory stood at NOK 694
(482) million. Increases in equity and non-current
liabilities in 2024 are mainly driven by issuance
of NOK 1 000 million (gross) in new equity and
NOK 1 000 million (gross) in convertible bond in
combination with an increase in lease liabilities
related to production facilities and equipment
as part of the Company’s capacity expansion
program. At year-end 2024, the Company had an
equity ratio of 43 per cent (51 per cent).
Hydrogen mobility and infrastructure
Hexagon Purus’ hydrogen storage solutions are
based on its leading Type 4 cylinder technology
and enable the safe and efficient use of hydrogen
in a variety of zero-emission mobility and hydrogen
infrastructure applications. The Hydrogen Mobility
and Infrastructure (HMI) segment covers Hexagon
Purus’ hydrogen cylinder and systems manufactur-
ing activities in Europe and North America, as well
as its aerospace and industrial gas business.
Financial update
In 2024, the HMI segment generated NOK 1 782 (1
275) million, up 40 per cent compared to the full-
year 2023. A key driver of HMI’s revenue growth in
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2024 was hydrogen infrastructure solutions, which
for the full-year 2024 amounted to NOK 1 058 (771)
million. Within hydrogen infrastructure solutions,
sale of hydrogen distribution modules made up
most of revenue during year with product deliver-
ies to customers like Air Liquide, Linde, Lhyfe and
Plug Power.
Revenue from HMI’s hydrogen mobility solutions
for the full-year 2024 amounted to NOK 470 (197)
million, of which NOK 311 (111) million relates to the
sale of hydrogen storage cylinders- and systems
to transit bus customers in Europe and North
America. The remaining revenue from hydrogen
mobility solutions mainly relates to hydrogen
heavy-duty trucking in North America.
Revenue from HMI’s industrial gas business, deliv-
ering solutions for stationary storage of primarily
air gases such as nitrogen and oxygen to industrial
customers, for the full-year 2024 amounted to
NOK 175 (192) million. Lastly, revenue from the
segment’s aerospace activities, which supports
privately held space exploration companies in
North America with storage solutions for space
expeditions, for the full-year 2024 amounted to
NOK 56 (66) million.
EBITDA for the HMI segment for the full-year 2024
ended at NOK -12 million, equal to an EBITDA
margin of -1%, representing a significant improve-
ment compared to EBITDA of NOK -94 million (-7%
margin) for the full-year 2023.
Operational update
The majority of the Company’s capacity expan-
sion program for hydrogen cylinder production
and hydrogen infrastructure solutions assembly
in Kassel, Westminster and Weeze has been
completed, with some spill-over of final CAPEX
payments into 2025.
Given an uncertain near-term demand outlook
going into 2025, measures to reduce costs across
the Group are being implemented. For HMI,
short-time work has been implemented for the
Company’s hydrogen distribution assembly site
in Weeze, Germany and approximately 25% of
the Company’s employees at its Kassel facility are
expected to be laid off during the first half of 2025.
As mass adoption of hydrogen mobility for
heavy-duty vehicles is pushed out, wide-spread
adoption of liquid hydrogen storage solutions for
heavy-duty mobility is no longer expected in the
current decade. Consequently, the Company is
ceasing funding to Cryoshelter and ending the
development of liquid hydrogen storage solutions
for heavy-duty mobility.
Battery systems and vehicle integration
The Battery Systems and Vehicle Integration (BVI)
segment covers Hexagon Purus’ industry-leading
battery storage systems technology and complete
vehicle integration services for medium- and
heavy-duty trucks in North America.
Financial update
In 2024, the BVI segment generated NOK 97 (40)
million, where the year-over-year revenue growth
relates mainly by vehicle integration deliveries
of the Tern RC8 to Hino as well as deliveries to
Toyota Motors North America. Certain one-off
payments from customers were also received in
2024.
EBITDA for the BVI segment for the full-year 2024
ended at NOK -139 (-140) million.
Operational update
The significantly increased political risk for the
Company’s North American operations follow-
ing the US presidential election in November
is leading to a slower ramp-up curve for the
Company’s battery electric vehicle program with
Hino. Given the continued regulatory and market
uncertainty, the Company is expecting to lay off
approximately 40% of its employees in the BVI
business unit during the first half of 2025.
Organization
At the end of 2024, the total number of employ-
ees in Hexagon Purus was 848 (including
temporary workers, excluding agency workers).
The female workforce grew by 37%. Crucial com-
petencies were acquired at all sites. The company
remains committed to cultivating a diverse,
inclusive, and respectful workplace and will con-
tinue to advance its efforts in this regard.
Share price development and dividends
At the end of 2024 the total number of shares in
Hexagon Purus ASA was 428 486 108 (par value
NOK 0.10). The share price moved between
NOK 11.88 and NOK 4.85, ending the year at
NOK 5.60 and representing a market value of
approximately NOK 2.4 billion. The Board of
Directors does not recommend a dividend for the
year 2024.
Financial risk
The Group has a centralized finance function
with overall responsibility for accounting, cash
management, capital management, financing
arrangements and management of the Group’s
financial risk factors. In addition, the operating
subsidiaries have local finance functions that
perform similar tasks at the subsidiary level.
The Group is exposed to credit risk related to
counterparty default on contractual agreements
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FROM THE BOARD ROOM | BOARD OF DIRECTORS’ REPORTFROM THE BOARD ROOM | BOARD OF DIRECTORS’ REPORT
and trade, and other current receivables. The
Company has policies and procedures to ensure
that sales are made to customers with appro-
priate credit profiles within defined limits. No
material losses on outstanding receivables were
recorded in 2024 or 2023. The trade receivables at
the end of 2024 amounted to NOK 351 million.
Liquidity risk is the risk of the Group not being
able to fulfil its financial liabilities when they fall
due. The Group’s strategy for managing liquidity
risk is to set a level of available liquidity to enable
it to discharge its financial liabilities when they
fall due, both under normal and unexpected cir-
cumstances, without risking unacceptable losses
or damaging the group’s reputation. To the
extent the Group does not generate sufficient
cash from operations to fund its existing and
future business plans, the Group may need to
raise additional funds through public or private
debt or equity financing to execute on its strategy
and to fund capital expenditures. Adequate
sources of capital funding might not be available
when needed or may only be available at unfa-
vorable terms. If funding is insufficient at any
time in the future, the Group may be unable to,
inter alia, fund acquisitions, take advantage of
business opportunities correspond to competitive
pressures, any of which could adversely impact
the Group’s growth plans, financial condition and
results of operations. As the Group has produc-
tion and sales in different countries with different
functional currencies, it is exposed to currency
risk associated with movements of the Norwegian
krone (its presentation currency) against other
currencies. The Group’s profit after tax is also
affected by currency movements, as the results of
foreign companies are translated to Norwegian
kroner using the weighted average exchange
rate for the period. The most important foreign
currencies to the Company are the Euro and US
Dollar. The Group currently does not use financial
instruments to manage foreign exchange risk.
Please see Note 18 to the consolidated financial
statements for further information related to
financial risk factors and mitigating actions.
Governance framework
Hexagon Purus ASA is committed to following
the Norwegian Code of Practice for Corporate
Governance. We aim to secure a clear division
of roles and responsibilities between share-
holders, the Board of Directors and executive
management to ensure appropriate corporate
governance. We believe that good corporate
governance and high ethical standards contrib-
ute to value creation for all interest groups and
strengthens trust in the Company among share-
holders, in the capital markets and with other key
stakeholders.
Board of Directors
Together with Hexagon Purus Group Executive
Management, the Board of Directors are respon-
sible for the management of the company. The
CEO is selected by the Board of Directors.
The Board is responsible for ensuring that the
Group is managed in accordance with its corpo-
rate objectives, values and ethical guidelines, in
addition to strategic management of the Group.
The Board has an annual plan with particular
emphasis on objectives, strategy and imple-
mentation and submits an evaluation of its work,
including a self-assessment, to the nomination
committee annually. The Board makes decisions
concerning risk management, investment strat-
egy, control and audit matters, in addition to
ad-hoc significant operational issues. We have
included a summary of the most important sus-
tainability tasks overseen by the Board in 2024:
• Health & safety awareness and reporting
• Sustainability, including double materiality
assessment, CSRD reporting readiness and KPI
• Risk and compliance review
1
The Board has two separate committees: The
remuneration committee and the audit commit-
tee. The remuneration committee is responsible
for remuneration to the Executive Management.
The audit committee reviews the overall risk
management policy and procedures and the
Group’s internal control routines. The committee
functions as a preparatory and advisory commit-
tee for the Group’s Board and provides support
for exercising its responsibilities relating to risk,
corporate governance management, financial
reporting, financial information and auditing. The
responsibilities also include oversight of impacts,
risks, and opportunities concerning sustainability.
1
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Risk and Impact Management
1
Operating in a global environment and across three
continents, we are exposed to internal and external
risks and opportunities. We aim to mitigate risk and
seize opportunities by integrating risk management
and internal controls in our business processes.
When we are developing goals, strategies, and
business plans aiming for sustainable value crea-
tion, we must balance expansive opportunities and
growth with business risk and profitability.
We aim to improve our enterprise risk management
processes to further understand and review risks
and opportunities in the shorter term and in the
longer run. The Board of Directors is reviewing our
enterprise risk annually, also suggesting risk miti-
gating procedures. Our risk management platform
is an integrated part of our overall business pro-
cesses and decisions.
We are actively monitoring our exposure to strategy,
operational, financial, reputational, and sustain-
ability risks by relying on our first and second line
of defense. Our third line of defense, the Board
of Directors and the Audit Committee, are solely
responsible for reviewing and concluding on the
overall risk exposure for the company. This allows us
to implement any risk mitigating measures effi-
ciently to ensure that risk is at an acceptable level
while we can still reach our business objectives.
FIRST LINE OF DEFENSE SECOND LINE OF DEFENSE THIRD LINE OF DEFENSE
WHOWHAT
First line of defense acts on company
culture and attitudes. Responsible
for day-to-day incidents, in addition
to taking necessary action to report,
monitor, control, mitigate, and
escalate risk.
Second line of defense works with internal controls to ensure that company
policies and guidelines are properly followed. Second line of defense is also in
charge of new policies and procedures, in addition to monitoring compliance
with company policies and guidelines. Company Internal Controls Function
and the CEO have the main responsibility for understanding and monitoring
risks, including financial, strategic, and sustainability risks.
HOW
• Performing internal controls
• Ad hoc responses to risk related
incidents
• Escalating incidents based on
severity
• Building internal controls to
mitigate risk
• Implementing policies and
guidelines
• Using enterprise management risks
• Escalating incidents based on
severity
• Answering to both the first and third
line of defense
• Building the bridge between
Executive Management, subsidi-
aries/corporate, and Board/Audit
Committee
• Reviewing enterprise management
risks continuously
• Engaging third-party assessments
of internal controls
Subsidiaries
Corporate Staff
Company Internal
Controls Function
CEO
Board / Audit Committee
Auditor
External resources
1
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Business risks are communicated by the local
entities and assessed by the Executive Team on
a monthly basis. An aggregated risk assessment
is reviewed by the Board of Directors quarterly,
including suggested risk mitigating procedures.
Sustainability risks and opportunities do not form
a part of the process described above, but follows
a dedicated and separate process. Sustainability
risks and opportunities are longer term, where
the scale, scope, and likelihood can potentially
be incomparable to more present financial and
operational risks, which again could lead to an
underestimation of such risks and opportuni-
ties. Sustainability-related risks are therefore
prioritized and integrated with financial and
operational risks when they could have a direct
impact on one or the combination of the two.
The dedicated process allows the Sustainability
function to assess sustainability risks and oppor-
tunities in conjunction with the Executive Team
twice a year and escalate sustainability risks and
opportunities in the business risk assessment.
The process and results from this assessment
are ultimately reviewed by the Board of Directors
through the Audit Committee. One of the assess-
ments, with subsequent review, coincides with
the double materiality assessment performed
annually. The list of material impacts, risks, and
opportunities addressed by the governing bodies
can be found in the Double materiality assess-
ment section in the sustainability statements.
Seizing opportunities and mitigating risks are
foundational factors to sustainable growth.
However, we must acknowledge the impact our
business operations have on the planet. For
impact management we are also relying on the
first line of defense to work with impact reduc-
tions during our operations. In case impacts are
assessed as severe, they are escalated to the
second line of defense. The Board of Directors are
involved in case there are any impacts, whether
potential or actual, that might lead to strategic,
operational, financial, or reputational risks on an
aggregated business level.
Applying terms and methodology from sus-
tainability due diligence, we connect identified
impacts, risks, and opportunities to relevant
policies and actions. Policies are approved by
the Board of Directors and adopted by rele-
vant stakeholders in the Executive Team. The
policies are used to inform the organization
about Hexagon Purus’ aspirations and to insti-
gate action concerning our impact, risks, and
opportunities.
After the deconsolidation from Hexagon
Composites Group in June 2023, Hexagon
Purus is still utilizing certain policies of Hexagon
Composites Group, where it is applicable, until
Hexagon Purus develops its own standalone
policies.
Policies and actions are also used to commu-
nicate sustainability KPIs and targets, and the
Company’s progress in these areas. KPIs and pro-
gress on the KPIs are reported to the Executive
Management and the Board of Directors on a
regular basis, based on nature of the respective
KPIs. An overview of the most material sustaina-
bility KPIs can be found on page 45.
Risk management and internal controls
for sustainability reporting
1
The sustainability statements in the annual
report are reviewed by the Executive Team and
the Board of Directors prior to the release of the
annual report. With the adoption of CSRD and its
accompanying reporting standards ESRS, 2024
will be the first year where the auditor provides
limited assurance on the sustainability state-
ments. This is reflected in the risk management
and internal controls for sustainability reporting,
where we have yet to establish these processes
and controls. There is no risk assessment or
prioritization or formalized internal controls, and
thus no assessment of operating effectiveness
for risks and controls covering the sustainability
Hexagon Purus’ Policies Published or last updated on
Human Rights and Working Conditions Hexagon Purus 19 March 2024
Policy on Diversity, Equity and Inclusion Hexagon Purus 19 March 2024
Hexagon Purus Code of Conduct 3 December 2024
Supplier and Business Partner Code of Conduct Hexagon Purus 10 February 2025
Whistleblowing Policies 19 March 2024
Hexagon Composites’ policies that are still adopted by Hexagon Purus Published or last updated on
Environmental, Health and Safety Policy December 2024
Supply Chain Management Policy December 2023
Product Safety Policy 2021
Anti-Corruption Policy and Guidelines July 2024
1
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reporting for the financial year 2024, apart from
the annual review of the sustainability state-
ments. Hexagon Purus will assess sustainability
reporting risk management and internal controls
in 2025, incorporating findings addressed by the
auditor provided on an annual basis.
Executive Remuneration
As a leading, international company within the
zero-emission mobility industry, Hexagon Purus
must offer a level of total remuneration that
ensures that it can attract and retain its Executives.
The individual remuneration components and
total remuneration that Purus offers strive to
support Purus’ competitiveness as an employer
at all locations. Remuneration for Executives has
been designed to comply with established local
practice and mandatory rules in the jurisdiction
of their employment, considering, to the extent
possible, the overall purpose of the remuneration
policy. The remuneration policy, with its terms of
incentive schemes, was approved by the Annual
General Meeting in April 2021. There have been
no changes to the remuneration policy since its
approval. The guidelines for remuneration of the
Executive Management of Hexagon Purus can be
found on the Company’s website.
The Remuneration Policy balances short-term
and long-term performance, taking into
consideration business strategy, purpose and
values, and aim to deliver value for sharehold-
ers over time. In addition to short-term and
long-term performance incentive schemes,
remuneration of the Executive Team includes
fixed salary, pension or retirement schemes,
and other benefits facilitating the duties as
Executives, such as costs related to e.g. internet
access and company phone.
Bonuses, variable cash salary, Short-
term Incentive Program (“STIP”)
1
The short-term incentive program (STIP) is based
on a set of pre-determined and measurable per-
formance criteria. From the remuneration policy
these criteria can include both financial and
non-financial parameters, where the latter may
include a range of strategic objectives, including
sustainability targets.
Variable cash salary for Executives in 2024 was
based on a set of pre-determined and measura-
ble performance criteria. The STIP parameters in
2024 were:
• EBITDA (40%)
• Revenue (30%)
• Execution milestones (30%)
Sustainability-related targets were included
in the variable remuneration for 2024, where
achieving ISO 14001 and ISO 45001 certifications
in Weeze and Kassel were part of the execution
milestones. Climate-related considerations were
not factored into the remuneration of members
of the administrative, management and supervi-
sory bodies.
All participants in the program are measured
on overall company results. Determination of
the extent to which the criteria for the STIP are
fulfilled is determined upon expiry of the rele-
vant measurement period by measuring criteria
against actual performance.
Bonuses, variable share-based incentive pro-
grams: Long-Term Incentive Program (“LTIP”)
Share-based payments are used as part of
Hexagon Purus’ incentive schemes. The Board
of Directors views share-based long-term incen-
tive programs as an important part of the total
compensation for Executives. The purpose of
the LTIP is to ensure shareholder mindset, and
retention and attraction of competence and
talent. According to the Remuneration Policy,
LTIP programs shall be linked to value creation of
shareholders and is therefore tied to share price.
Directors and Officers insurance
The Board of Directors and key management per-
sonnel of Hexagon Purus ASA are covered by the
Company’s Directors and Officers liability insur-
ance policy. The insurance covers personal legal
liabilities including defense and legal costs of the
directors and officers of the parent company and
all controlled subsidiaries globally. In addition,
cover is also extended to personnel that serve
at the request or direction of the Company
who may be sitting on the boards of jointly or
non-controlled entities.
After the balance sheet date
Hexagon Purus renews long-term agreement for
supply of hydrogen fuel storage systems with a
transit bus customer.
Outlook
The new administration following the US pres-
idential election has significantly increased
uncertainty around the near-term outlook for
the energy transition and zero emission mobil-
ity in North America. Customers, especially in
California, are awaiting clarification around
legislation and funding mechanisms. In addition,
the hydrogen industry and project realization
is developing slower than expected in Europe,
impacting the Company’s customers.
With an uncertain near-term outlook and
lower visibility, the Company is launching a
program targeting annualized cost reduction
1
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of approximately NOK 200 million, including an
approximate 15% reduction in workforce. The
Company is also launching a review of its overall
business portfolio to make additional adjust-
ments to secure the Company’s cash runway to
EBITDA and cash break-even.
The Company has a well-diversified customer
base and are exposed to a range of attractive
end-use applications at varying stages of matu-
rity. The Company’s hydrogen infrastructure
business is EBITDA profitable and is mainly
based on large industrial gas companies’ need
to cost efficiently transport gray hydrogen for
industrial use cases. A delay in roll-out of green
hydrogen projects will impact near-term growth
for the hydrogen infrastructure business, but
the Company continues to expect a base level
of demand for its distribution solutions for
industrial use-cases from its existing customer
base of blue-chip industrial gas companies. The
Company’s hydrogen transit bus business is
experiencing strong growth as end-user demand
is mainly made up of public authorities with
local decarbonization agendas, both in Europe
and North America. The Company’s hydrogen
and battery electric heavy-duty vehicle business,
centered around the US market, is on the other
hand experiencing uncertainty and low demand
visibility following the US presidential election.
Year-over-year, the battery electric business
is expected to grow in 2025, but with a slower
ramp-up curve compared to earlier expectations.
The Company’s order backlog, consisting of firm
customer purchase orders, stood at NOK 726
million by the end the fourth quarter of 2024,
with about 90% due for execution in 2025 and
the remaining 10% due for execution in 2026. The
Company is expecting a slow start to 2025 reve-
nue-wise and is currently projecting a significant
sequential decline in Q1 2025 revenue.
Given the recent chain of events, it is no longer
deemed realistic that the market will grow as
previously guided in the near-term, and the
Company has decided to postpone further
guiding until better visibility is gained. The
Company will first and foremost focus on making
the current cash balance last until EBITDA and
cash break-even.
Going concern
In accordance with the Norwegian Accounting
Act Section 3-3a, we confirm that the conditions
for continued operations are present and that
the annual report has been prepared under the
assumption of going concern. This assumption
is based on financial forecasts for 2025 as well as
the Company’s long-term strategic forecasts. At
the date of this report the Company has a solid
financial position with sufficient liquidity.
The Parent Company Hexagon Purus ASA
incurred a loss for the year after tax of NOK 1 921.3
million in 2024. The Board of Directors of
Hexagon Purus ASA propose the loss for the year
is allocated as follows:
(NOK 1 000) 2024
Share premium (1 921 251)
Total allocation (1 921 251)
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Corporate governance
CREATING VALUE FOR OUR STAKEHOLDERS
Hexagon Purus ASA is committed to following the Norwegian Code of
Practice for Corporate Governance. We aim to secure a clear division
of roles and responsibilities between shareholders, the Board of
Directors and executive management to ensure appropriate corporate
management. We believe that good corporate governance and high
ethical standards contribute to value creation for all interest groups and
strengthens trust in the Company among shareholders, in the capital
markets and with other key stakeholders.
The Company is subject to reporting requirements
for corporate governance under the Accounting
Act section 3-3b (available at www.lovdata.no)
as well as Oslo Børs’ “Oslo rule book II - Issuer
Rules” section 4.4 (available at Oslo Børs’ website,
www.euronext.com).
The principal purpose of the Corporate
Governance Code is to ensure (i) that listed com-
panies implement corporate governance practices
that regulate the division of responsibilities
between the shareholders, the Board of Directors
and Executive Management more comprehen-
sively than the legislation requires, and (ii) effective
management and control over activities with the
aim of securing value creation over time in the
best interest of shareholders, employees and other
stakeholders.
1. Implementation and report-
ing of Corporate Governance
The Company has adopted a corporate govern-
ance regime which is based on, and complies with,
the Norwegian Code of Practice for Corporate
GENERAL
MEETING
CEO
GROUP
EXECUTIVE
TEAM
NOMINATION
COMMITTEE
AUDIT
COMMITTEE
REMUNE
RATION
COMMITTEE
AUDITOR
BOARD
Nomination
Selection
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Governance, dated 14 October 2021 (the “Corporate
Governance Code”), with the following exeptions:
• The Company encourages shareholders to
attend the general meeting. It is also the
intention to have representatives of the Board
of Directors and the Chair of the nomination
committee to attend the general meeting.
The Company will, however, normally not have
the entire board attend the meeting as this
is considered unnecessary. This represents
a deviation from the Corporate Governance
Code which states that arrangements shall be
made to ensure participation by all directors.
The Board is spread over several geographical
areas, and it may be impractical for all board
members to attend the general meeting. In the
Company’s experience, the general meetings
have historically proven satisfactory although
not all board members have been present.
• In 2024, the Company entered into a con-
sultancy agreement with board member
Rick Rashilla in order to capitalize on his vast
knowledge and experience with pressure
cylinders, thereby deviating from the Corporate
Governance Code item 11. Said engagement
secures access to industrial competence of sig-
nificant value to the Company, and is therefore
in the Board of Directors' view firmly in the
Company's and shareholders' interests.
Neither the Board of Directors nor the Company's
general meeting of shareholders have adopted
any resolutions which are deemed to have a
material impact on the Group's corporate gov-
ernance regime
2. Business
Hexagon Purus is a leading player in the hydro-
gen infrastructure and zero-emission mobility
space offering hydrogen and battery energy
storage solutions. The company’s hydrogen
systems based on Type 4 cylinder technology
and battery systems enable safe and efficient use
of hydrogen and battery electricity in a variety
of zero-emission infrastructure and mobility
applications. The scope and objectives of our
business are defined in the Company’s articles of
association §3: “The purpose of the company is to
conduct business within development of solu-
tions in the field of clean fuels, and everything
connected therewith, including investment in
other companies.” A more comprehensive dis-
cussion and analysis of our business activities,
strategic priorities and operating results are
included in the Integrated Annual Report and the
Company’s website www.hexagonpurus.com.
The Board has defined clear objectives, strategies
and risk profiles for the Company’s business
activities such that the Company creates value for
shareholders in a sustainable manner. When car-
rying out this work, the Board of Directors takes
into account financial, social and environmental
considerations. These objectives, strategies and
risk profiles are subject to annual review by the
Board. Sustainability, including social respon-
sibility, is an integral part of Hexagon Purus’s
corporate governance process. Formal guidelines
for corporate sustainability have been approved
by the Board and integrated into the Group’s
management systems. The Company strives for
diversity across its Board, board committees, and
the executive team with regards to age, back-
grounds, nationalities, educational backgrounds,
competencies and genders. Presently, the Board
has a 43 per cent female representation and rep-
resents a variety of backgrounds. The executive
team showcases diversity in age and back-
grounds, with female representation standing at
20 per cent. Guided by a robust diversity, equity,
and inclusion policy, the Company diligently
advances efforts to enhance diversity. For further
insights, please refer to the sustainability section
of the Integrated Annual Report.
3. Equity and dividends
The Company aims to maintain a capital structure
considered appropriate to the Group’s objectives,
strategies and risk profile. At the end of 2024 the
total number of shares in Hexagon Purus ASA
was 428 486 108 (par value NOK 0.10). The share
price moved between NOK 11.88 and NOK 4.85
ending the year at NOK 5.60, which represented
a market value of approximately NOK 2.4 billion.
The Board of Directors does not recommend a
dividend for the year 2024.
Authorization to the Board for capital transactions
is normally restricted to defined objectives and
time limitations that do not exceed the next
ordinary general meeting. This applies to the
issuance of new shares as well as the purchase
of own shares. The board is currently and until
the General Meeting of 2025, but no later than
30 June 2025, authorized to acquire own shares
on one or more occasions. The Board is also
granted authorization for increases in share
capital relating to general corporate purposes
and share issues in connection with share incen-
tive programs. The Company will propose that
these authorizations are renewed.
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4. Equal treatment of shareholders
Hexagon Purus has one class of shares with equal
rights, and its policy is to comply with the equal
treatment principles of applicable law in capital
transactions. Where circumstances require devi-
ation from the main rule of equal treatment of
shareholders, the reasoning for such deviations
will be included in the stock exchange announce-
ment made in connection with the transaction.
Any transactions in own shares will be carried out
in compliance with applicable law and reflecting
prices quoted on the exchange.
5. Shares and negotiability
All shares in Hexagon Purus are freely negotiable
shares with full voting rights. No form of transfer
or voting restrictions have been stipulated in the
articles of association.
6. General meetings
Hexagon Purus has well-established procedures
for publicly announcing and issuing information
regarding the general meeting, and all relevant
information is published through newsweb.no,
and the Company’s website. Notice of the
general meeting and supporting documents,
including the recommendations from the
nomination committee, are distributed and
published 21 days in advance of the meeting
date. The Board will ensure that the Company’s
shareholders can participate in the general
meeting, that the resolutions and supporting
information distributed are sufficiently detailed,
comprehensive and specific to allow shareholders
to form a view on all matters to be considered at
the meeting. Deadline for shareholders to give
notice of their intention to attend the meeting is
set close to the date of the meeting, and as per
applicable regulations. Normally, shareholders
will be able to vote on each individual matter,
including on individual candidates nominated
for election to the Company’s corporate bodies.
Hexagon Purus will aim to prepare and facilitate
the use of proxy forms that allows for separate
voting instructions to be given for each item on
the agenda and should nominate a person who
will be available to vote on behalf of sharehold-
ers as their proxy. The Company has routines
for ensuring that the shareholders may elect
an independent chairperson for its general
meetings.
7. Nomination committee
The Company’s nomination committee is
regulated by the articles of association. The
nomination committee’s main responsibility is
to evaluate the work and expertise profile of the
Board of Directors and to propose suitable candi-
dates. The nomination committee also proposes
the fees to be paid to members of the Board.
Proposals for candidates, including the reasons
for selection and other relevant information are
distributed with other documentation related
to the annual general meeting. The nomina-
tion committee is currently comprised of two
members, none of whom are board members.
The composition of the committee is intended
to reflect the interests of all shareholders, and
the members are independent of the Board and
other executive management. Members are
elected at the annual general meeting.
8. Board of Directors:
composition and independence
The Board is composed of individuals with suf-
ficient competence and expertise, capacity and
diversity to enable independent evaluations of
the Group’s operations in the common interests
of all shareholders and to ensure its effectiveness
as a governing body. The composition of the
Board ensures that it can operate independently
of any special interests. The majority of the share-
holder elected board members are independent
of the Company’s executive personnel, material
business contacts and the Company’s major
shareholders. Four of the shareholder-elected
board members are independent of the
Company’s major shareholders. The Board does
not include members of the Company’s executive
management. The general meeting elects the
chair of the Board and the term of office for
members of the Board is no longer than two
years at a time. The Annual Report and Hexagon
Purus’ website provide information about
the expertise of the members of the Board of
Directors, information on their record of attend-
ance at board meetings, as well as identifying
which members are considered to be independ-
ent. Members of the Board are encouraged to
own shares in the Company. The Board intends
to assess its work annually, and has scheduled a
self-assessment for 1H 2025 covering 2024
9. The work of the Board of Directors
The composition of the Board of Directors is
specified in the annual accounts. The Board of
Directors works with the Chief Executive Officer
and external auditors to ensure that the Group is
managed in accordance with its corporate objec-
tives, values and ethical guidelines. The Board
has an annual plan with particular emphasis on
objectives, strategy and implementation and
submits an evaluation of its work to the nomi-
nation committee annually, and also conducts
a self-assessment annually. Clear guidelines
require board members and executive manage-
ment to notify the Board of any significant direct
or indirect interest in transactions executed by
the Company. These guidelines are incorporated
into the board’s instructions and instructions for
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the Chief Executive Officer. These instructions
state how agreements with related parties are
handled, including whether an independent
valuation must be obtained. The Board of
Directors will present any such agreements in
the Board of Directors' report. The Board ensures
that members of the Board and executive
management make the Company aware of any
material interests that they may have in items
to be considered by the Board. In the event
that the Board Chair has been actively engaged
in such interests, the Chair will recuse himself
and appoint a Deputy Chair that will assume
responsibility for the matter in question. The
Company’s audit committee is governed by the
Norwegian Public Limited Liability Companies
Act as well as separate instruction adopted by the
Board of Directors. The Board's audit committee
is comprised of members that are independent
of the Company’s executive personnel, material
business contacts and the major shareholders. In
2024, the audit committee held five meetings and
at year-end the committee comprised of Espen
Gundersen (Chair), Liv Fiksdahl and Martha Kold
Monclair. The remuneration committee is gov-
erned by a separate instruction adopted by the
Board of Directors. The remuneration committee
is independent of the Company’s executive
management and is currently composed of
Espen Gundersen (Chair), Hidetomo Araki and
Rick Rashilla. The committee held five meetings
in 2024. The participation in both the audit- and
compensation committee was 100 per cent.
10. Risk management and internal controls
Hexagon Purus works systematically to identify and
manage the specific risks facing its business. Risk
management is executed by Group management
and management of business areas and subsidiar-
ies. The Group finance department is responsible
for ensuring that the Group has an adequate
system of internal controls, including controls over
financial reporting. The department reports to the
CFO and has overall responsibility for ensuring
compliance with the Group’s accounting principles
and financial controls. Hexagon Purus believes that
its overall strategy, management principles and
organizational structure provides a good control
environment. The Group’s ethical guidelines
include considerations related to the Company’s
stakeholders in value creation and contribute to a
culture and values that support this environment.
The Board ensures that the Group has appropriate
internal controls and appropriate systems for risk
management in relation to the scope and type
of our business operation. This includes ensuring
that the Group’s risk management and internal
controls are adequate and systematic and that
processes are established in accordance with laws
and regulations, articles of association, instructions
and external and internal guidelines. At least annu-
ally, the Board assesses strategies and guidelines
for risk management. The Board's audit committee
reviews the overall risk management policy and
procedures and the Group’s internal control rou-
tines. The committee functions as a preparatory
and advisory committee for the Group’s Board and
provides support for exercising its responsibilities
relating to risk, corporate governance manage-
ment, financial reporting, financial information and
auditing. Please see Risk and Impact Management
(see page 31) section of the Board of Directors'
report in the Integrated Annual Report for further
information on the Group’s main risks.
11. Remuneration to the Board
The remuneration of the Board of Directors is
approved by the Company’s general meeting
based on a recommendation from the nomination
committee, and is intended to reflect the Board's
responsibility, expertise, time commitment and the
complexity of the Company’s activities.
Fees are fixed and are not linked to the Company’s
performance. Board members are not eligible for
share option programs. Members of the Board of
Directors and/or companies with which they are
associated should not take on specific assignments
for the Company in addition to their appointment
as a member of the Board. If they do nonetheless
take on such assignments this should be disclosed
to the full board. The remuneration for such addi-
tional duties should be approved by the Board of
Directors and specified in the Annual Report.
12. Salary and other remunera-
tion for executive personnel
The Board has established clear and transparent
guidelines on salary and other remuneration of
the executive management. Reference is made
to the Guidelines for remuneration of executive
management of Hexagon Purus ASA approved
by the annual general meeting on 27 April 2021.
As a leading international company within the
zero-emission technology industry, Hexagon
Purus must offer a level of total remuneration that
ensures that it can attract and retain its Executives.
The Company has a global presence with facilities
in several locations across several continents,
and as such competes for senior management
talent worldwide. The individual remuneration
components and total remuneration that Hexagon
Purus offers strive to support the Company’s
competitiveness as an employer at all locations.
Remuneration for Executives has been adapted to
comply with established local practice and man-
datory rules in the jurisdiction of their employment
and the overall purpose of the remuneration
policy. It is Hexagon Purus’ policy that base salaries
shall reflect the individual Executive’s position
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and degree of responsibility. The size of the total
remuneration shall be in line with market condi-
tions, at the relevant location and shall take into
account inter alia the scope and responsibility
associated with the position, as well as the skills,
experience, and performance of each Executive.
Hexagon Purus’s arrangements in respect of
salary and other remuneration are considered
to ensure that the executive management and
shareholders have converging interests.
The Board of Directors views short-term incentive
programs and share-based long-term incentive
programs as important parts of the total com-
pensation for Executives. The purpose of the
long-term incentive program is to ensure share-
holder mindset and retention of competence and
talent.
The Company shall ensure that both the remu-
neration policy and the remuneration report are
approved and made available on the Company’s
website in accordance with statutory legislation.
For further details on remuneration of the exec-
utive management, refer to the Remuneration
report for 2024. As further described in the
Company's remuneration policy, absolute limits
shall apply for variable compensation.
13. Information and communication
The Group follows the Oslo Stock Exchange’s
recommendations for reporting investor
information. The Group’s information policy is
based on openness and equal treatment of all
shareholders and participants in the securities
market. Hexagon Purus’s policy is to provide all
shareholders with correct, consistent, relevant
and timely information. Efforts are being directed
towards developing disclosures on major value
drivers and risk factors. The Company believes it
is important that employees, shareholders and
investors have equal opportunities to monitor the
Company’s performance and receive sufficient
information to value the Company correctly.
The Group seeks to communicate information
about its products and markets to central target
groups, while ensuring that all stakeholders have
equal access to all relevant information provided.
All stock exchange releases, financial reports
and presentations, other public presentations
and press releases are made available on the
Company’s website www.hexagonpurus.com
together with other relevant information. All
information distributed to the Company’s share-
holders will be published on the Company’s
website at the same time as it is sent to
shareholders. Hexagon Purus holds open pres-
entations in connection with its quarterly financial
reporting, and these presentations are broad-
casted live via webcast.
14. Take-overs
The Company’s policy is to comply with NUES’
recommendations on take-overs, unless any
deviation in the concrete instance would be in the
best interests of the shareholder community. The
Board acknowledges that it should not prevent
or obstruct offers for purchase of the Company’s
business operations or shares. Agreements that
restrict the possibility of obtaining other offers
for the Company’s shares should only be entered
into when clearly justified as being in the joint
interests of the Company and its shareholders.
Agreements between the Company and an
offeror that are important to the market’s assess-
ment of the offer will be made public before or at
the same time as notice is given that an offer will
be made. Any proposed transaction that in reality
will involve the divestment of the Company’s
operations as such will be subject to shareholder
vote at a general meeting.
15. Auditor
Each year, the Company’s external auditor
provides an annual written confirmation of his/
her independence and objectivity. The auditor
attends board meetings that address the annual
accounts and presents to the audit committee
the main features of a plan for implementing
the auditing work. The auditor holds an annual
presentation to the Board with an opinion on
the Company’s accounting principles, asset
management and internal control procedures.
The Group’s auditor is EY, who was appointed by
the general meeting. The auditor has no engage-
ments with the Company that could impair their
independence, and the Board, through the audit
committee, has established guidelines in respect
of the use of the auditor for services other than
the audit. See Note 28 to the consolidated annual
financial statements for information about remu-
neration to the auditor, including statutory audit
and other services.
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Statement from the Board of Directors
and Chief Executive Officer
We confirm to the best of our knowledge that:
• the financial statements for the Group for 2024 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 assets, liabilities, financial position and financial performance as a whole, and
• the Board of Directors’ Report gives a true and fair overview of the Group’s development, profit and
financial position, together with a description of the principal risks and uncertainties that they face.
Oslo, Norway, 26 March 2025
The Board of Directors of Hexagon Purus ASA
Espen Gundersen
Chair of the Board
Jon Erik Engeset
Board Member
Martha Kold Monclair
Board Member
Hidetomo Araki
Board Member
Susana Quintana-Plaza
Board Member
Liv Fiksdahl
Board Member
Rick Rashilla
Board Member
Morten Holum
President & CEO
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Jon Erik Engeset
Board member
Martha Kold Monclair
Board member
Board tenure
December 2020 joined as Board member
May 2023 elected as Chair
April 2024 most recently elected as Chair
Experience
Jon Erik Engeset has been CEO & President of Hexagon
Composites since 2013. Prior to joining Hexagon, Jon Erik was
the CEO of Saferoad Group, a leading European supplier of
road safety solutions. He also has extensive experience from
executive positions at Rolls Royce and Norsk Hydro.
Education
Espen is a professional accountant and has an MBA from NHH
Norwegian School of Economics.
Executive functions in other enterprises
and other board positions
Espen sits on the board and is the head of the audit committee
of Scatec ASA, he is a board member and member of the audit
committee in Norsk Hydro ASA, and he is chair of the board at
Kid ASA, where he also is a member of the audit committee.
Relevant skills and competencies
Management: Large scale leadership · CFO, finance and
audit committee · Investor and capital market relationships
· Mergers and acquisitions · Strategy · Risk management
· HR / remuneration
Other: Energy sector · Manufacturing operations
ESG: Environmental · Social · Governance
Board tenure
2019 joined as Chair
May 2023 elected as board member
April 2024 most recently elected as board member
Experience
Jon Erik Engeset has been CEO & President of Hexagon
Composites since 2013. Prior to joining Hexagon, Jon Erik was
the CEO of Saferoad Group, a leading European supplier of
road safety solutions. He also has extensive experience from
executive positions at Rolls Royce and Norsk Hydro.
Education
Jon Erik holds an MSc and MBA from NHH – Norwegian School
of Economics.
Executive functions in other enterprises
and other board positions
Jon Erik is chairman of the board of Hotel Alexandra AS, EC
Trading AS and Skipsteknisk AS and a board member of Jets
Vacuum AS, Loen Skylift AS and Worthington Austria GmbH.
Relevant skills and competencies
Management: General · CEO / large scale leadership · Investor
and capital market relationships · Mergers and acquisitions
· Strategy · Legal and public affairs · Risk management
· HR / remuneration
Other: Innovation
ESG: Environmental · Social · Governance
Board tenure
December 2020 joined as board member
April 2024 most recently elected as board member
Experience
Martha Kold Monclair has extensive board experience from
various industries, including Kongsberg and BW Group. She
was the CEO of Deepwell from 2007-2017.
Education
Martha holds two PhDs, one of them specializing in Strategies
for Commercialization of New Technology from BI.
Executive functions in other enterprises
and other board positions
Martha is chair of the board of Fjord1 AS, chair of the
board of Ænes Inkubator AS and a board member of
Ocean GeoLoop AS, Edda Wind and Reach Subsea.
Relevant skills and competencies
Management: General · CEO / large scale leadership · Investor
and capital market relationships · Mergers and acquisitions
· Strategy · Risk management · HR / remuneration
Other: Energy sector
ESG: Environmental · Social · Governance
Birth year: 1964
Nationality: Norwegian
Attendance: 91%
No. of shares: 310 973
2
Birth year: 1962
Nationality: Norwegian
Member of audit committee
Attendance: 100%
No. of shares: 4 124
2
Espen Gundersen
Chair of the Board
Birth year: 1964
Nationality: Norwegian
Member of 2 committees
Attendance: 100%
No. of shares: 45 619
Board of
Directors
1
1
As per 31.12.2024
2
Includes shares owned by related parties
GOV-1 20a, 20c, 21, 23
Number of executive board members = 0
Number of non-executive board members = 7 (GOV-1 21a)
Gender ratio = 42.86% (GOV-1 21d)
Independent board members = 100% (GOV-1 21e)
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Liv Fiksdahl
Board member
Rick Rashilla
Board member
Board tenure
May 2023 joined as Board member
April 2024 most recently elected as Board member
Experience
Susana Quintana Plaza is the CEO and founder of BM2Solar.
Susana Quintana Plaza has many years of international
experience in aerospace, energy, venture capital, and consulting
at top firms such as Boeing, Booz Allen Hamilton, E.ON
Siemens and Galp where she held several senior positions.
From 2018-2019, Susana was a member of the Board of Directors
of Hexagon Composites ASA.
Education
Susana holds a BSc and MSc in Aeronautical and Astronautical
Engineering from the University of Washington and an MBA
from Harvard Business School.
Executive functions in other enterprises and other board
positions
Susana is a supervisory board member for
Topsoe and a strategic advisor to several private
equity and venture capital funds.
Relevant skills and competencies
Management: General · CEO / large scale leadership · Investor
and capital market relationships · Strategy · HR / remuneration
Other: Energy sector · Innovation · Digitalization
ESG: Environmental · Social · Governance
Board tenure
May 2023 joined as Board member
April 2024 most recently elected as Board member
Experience
Hidetomo Araki is currently Regional Operating Officer of
Chemicals Division and Nutrition & Agriculture Business
Division in Europe Bloc for Mitsui & Co. Ltd and Senior Vice
President for Mitsui & Co. Europe Plc. He joined Mitsui in
2003 and has since held several management positions in
Japan, Canada and Germany within the basic and specialty
chemicals divisions, performance materials and financial
management. Prior to joining Mitsui, Hidetomo Araki worked
in investment banking and advised on several cross-border
M&A transactions in various industries.
Education
Hidetomo has a BA, Economics from Keio University and
an Executive MSc in Innovation and Entrepreneurship
from HEC Paris.
Executive functions in other enterprises and other board
positions
Hidetomo is a supervisory board member of Nutrinova
Netherlands BV, a board member of Aglobis AG,
Plalloy MTD BV, and MAIC Europe Ltd.
Relevant skills and competencies
Management: General · Large scale leadership · Mergers and
acquisitions · Strategy · Remuneration
Other: Business Development · Innovation · Digitalization
· Sustainability Transformation - Intrapreneurship
ESG: Environmental · Social · Governance
Board tenure
May 2023 elected as Board member
April 2024 most recently elected as Board member
Experience
Liv Fiksdahl is currently Vice President at Capgemini Invent
Norway. Liv Fiksdahl has more than 20 years of experience
from the banking sector, in which her primary focus has been
transformation, technology and operations. She has held
several executive positions, including spending close to 11 years
as Group COO/CIO at DNB Bank ASA. She has over years had
Board roles at Scandinavian Airline systems (SAS), Intrum AB,
Nille AS and Posten Norge.
Education
Liv is educated at Trondheim Business School, BI Norwegian
Business School and has completed executive education from
INSEAD, Stanford University and Massachusetts Institute of
Technology.
Executive functions in other enterprises
and other board positions
Liv is a board member of Arion Banki, where she also chairs
the Board Remuneration Committee and the Board Tech
committee.
Relevant skills and competencies
Management: General · large scale leadership · finance and
audit committee · Mergers and acquisitions · Strategy · Risk
management · HR / remuneration
Other: Safety · Quality · Energy sector · IT & cybersecurity
· Innovation · Digitalization · Manufacturing operations
ESG: Environmental · Social · Governance
Board tenure
December 2020 joined as Board member
April 2021 elected as Board member
April 2024 most recently elected as Board member
Experience
Rick Rashilla has extensive leadership experience in automotive and
aerospace industries. He was a member of the Hexagon Group
management team until early 2024, serving as SVP Sustainability, SVP
Research & Development and VP Hydrogen Products. Prior to his R&D
role, Rick was the VP Hydrogen Automotive at Hexagon Purus’ loca-
tion in Germany. He has 40+ years’ experience in composite materials
technology applications including filament wound pressure vessels.
Education
Rick has a BS in Industrial Management from the University
of Cincinnati.
Executive functions in other enterprises
and other board positions
He held CEO & general management positions with General
Dynamics, Brunswick Defense and Lincoln Composites.
He served as a member of the internal manage-
ment board for all Hexagon Group companies.
Relevant skills and competencies
Management: General · CEO / large scale leadership · Investor and
capital market relationships · Mergers, reverse mergers, divestment,
acquisitions · Strategy · Business Development · Legal compliance and
public affairs · Risk management
Other: Safety · Quality · Aerospace sector · Sustainability · Technology
Innovation & Transfer · Codes and Standards development ·
Manufacturing operations · Relationship development
ESG: Environmental · Governance
Birth year: 1965
Nationality: Norwegian
Member of audit committee
Attendance: 91%
No. of shares: 0
Birth year: 1959
Nationality: United States of America
Member of compensation committee
Attendance: 100%
No. of shares: 117 362
Susana Quintana-Plaza
Board member
Hidetomo Araki
Board member
Birth year: 1974
Nationality: Portuguese
Attendance: 100%
No. of shares: 0
Birth year: 1969
Nationality: Japanese
Member of compensation
committee
Attendance: 82%
No. of shares: 0
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FROM THE BOARD ROOM | CORPORATE GOVERNANCE REPORTFROM THE BOARD ROOM | CORPORATE GOVERNANCE REPORT
Sustainability
statements
Value creation
44
Our value chain
46
General
48
ESRS 2 | Basis for preparation
48
Double materiality assessment
50
Interests and views of stakeholders
55
Environment
57
ESRS E1 | Climate change
58
Climate change mitigation
60
Energy
67
Climate scenario impacts
69
EU Taxonomy Reporting
73
ESRS E5 | Resource use and circular economy
81
Social
85
ESRS S1 | Own Workforce
86
Working conditions
88
Equal treatment and opportunities for all
90
ESRS S2 | Workers in the value chain
97
Working conditions
98
Human rights due diligence
100
ESRS S4 | Consumers and end-users
102
Information-related impacts for consumers
and/or end-users
103
Personal safety of consumers and end-users
105
Governance
107
ESRS G1 | Business Conduct
108
ESRS index
112
ESRS data points from other EU Legislation
117
Statement from the Board of Directors and Chief
Executive Officer
119
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4343
SUSTAINABILITY STATEMENTS SUSTAINABILITY STATEMENTS
VALUE CREATION
A driving force for a
sustainable planet
Sustainable value creation starts from identifying and understanding
the impact we have on the planet and how the planet impacts us
through risks and opportunities.
Focusing on the environmental, social, and governance (ESG)
aspects of sustainability, we have identified material impacts, risks,
and opportunities within the following topics:
• Climate change
• Resource use and circular economy
• Own workforce
• Workers in the value chain
• Customers and end-users
• Business conduct
From 2025 and onwards our progress with ESG topics will be meas-
ured by eight sustainability KPIs, established in 2024. These KPIs will
be assessed and reviewed regularly, and revised when necessary.
Our approach, actions, and outcomes for the material topics
are elaborated in their respective chapters. How we under-
stand and work with our sustainability strategy is aligned with
our purpose to be a driving force for a sustainable planet.
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SUSTAINABILITY STATEMENTS | VALUE CREATIONSUSTAINABILITY STATEMENTS | VALUE CREATION
Environmental Social Governance
APPROACH APPROACH APPROACH
Our products and solutions are key technology enablers in
the transition towards zero-emission mobility, contributing
to lower in-use emissions for our customers.
Our products and solutions require materials with substantial
embedded emissions, environmental impacts on air, water, or
soil, or with limited or costly applications in a circular economy.
We must limit our impacts by reducing material waste and
encouraging circularity, and at the same time minimize our
own carbon footprint to accelerate the energy transition.
Our people are the cornerstone of our success. Our value creation
relies on our employees and their competence, behaviors and
commitment. We will continue to build a safe environment, both
physically and psychologically, that allows people to be at their best.
The quality and safety of our products and solutions are
essential to our business model and future growth. For
this we rely, and thus have an impact, on our value chain
workers through our sourcing practices. Our customers
trust our ability to provide safe and reliable product.
Professional business conduct and solid governance structures are
fundamental to our license to operate. Hexagon Purus originates
from a proud industrial heritage with a strong culture driving
business performance, enabling innovation, and acting with
integrity. This represents our core values – integrity and drive.
We are committed to carrying out business fairly, honestly,
and openly with no tolerance of business misconduct,
neither in our own operations nor in our value chains.
ACTIONS ACTIONS ACTIONS
• Achieved ISO 14001 certification in Kassel and Weeze
• Installed solar PV in Weeze
• Reduced reliance on natural gas by electrification
of production process wherever feasible
• Increased the calculation scope of the
greenhouse gas (GHG) inventory
• Designed returnable packaging for shipping of battery pack
• Achieved ISO 45001 certification in Kassel and Weeze
• Introduced Global Safety Rules at all sites
• Implemented a global safety alert mechanism to share
incidents and lessons learned across all locations
• Launched the first human rights due diligence report
• Established a global supplier management group
• Updated Supplier and Business Partner Code of Conduct to
strengthen commitment to human rights and working conditions
• Achieved ISO 9001 certification in Dallas and Shijiazhuang
• Launched Hexagon Purus Code of Conduct, emphasizing
our aspirations and expectations to our employees
• Prepared for the global rollout of a company-wide
learning management system to further upskill our
employees and facilitate learning globally
• Improved our corporate risk assessment procedure
KPIS KPIS KPIS
• GHG emissions
• Waste from manufacturing
• Lost time incident frequency rate (LTIFR)
• Environmental and social due diligence of
suppliers and business partners
• Product related safety incidents
• Number of training hours per employee
• Gender diversity
• Completion rate of Code of Conduct training
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SUSTAINABILITY STATEMENTS | VALUE CREATIONSUSTAINABILITY STATEMENTS | VALUE CREATION
Our value chain
DOWNSTREAMUPSTREAM OWN OPERATIONS
HEXAGON PURUS MANUFACTURING SITESSUPPLY CHAIN FOOTPRINT ZEROEMISSION MOBILITY
We transform purchased goods and raw materials into our products and solutions,
using the capabilities of our people and our machinery. We use energy to produce
our products and solutions, generating emissions from our production.
Our zero-emission technologies help customers reduce their
in-use GHG emissions. We always strive to ensure responsible
handling of our products at the end of their service life.
We depend on raw materials and the energy required to turn them into
components for our products and solutions. These processes account
for most of our upstream environmental and social impact.
Hydrogen
storage systems
Hydrogen
storage cylinders
Battery
systems
Hydrogen fuel
storage systems
Vehicle
integration
Use of our mobility and
infrastructure solutions
Power
generation
Mining of
minerals
and metals
Resource
extracting and
processing
Manufacturing
components
and material
Producing Hydrogen Infrastructure
and Mobility Solutions and
Battery Electric Vehicles
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SUSTAINABILITY STATEMENTS | VALUE CREATIONSUSTAINABILITY STATEMENTS | VALUE CREATION
General
ESRS 2 | Basis for preparation
48
Double materiality assessment
50
Interests and views of stakeholders
55
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4747
SUSTAINABILITY STATEMENTS | VALUE CREATIONSUSTAINABILITY STATEMENTS | VALUE CREATION
ESRS 2 | Basis for preparation
Frameworks and data selection
The sustainability statements are prepared in
accordance with the European Sustainability
Reporting Standards (ESRS), issued by the
European Financial Reporting Advisory Group
(EFRAG) as a part of the Corporate Sustainability
Reporting Directive (CSRD), and the Norwegian
Accounting Act §2-3. By completing the double
materiality assessment (DMA), another essential
aspect to the CSRD, Hexagon Purus has identified
relevant environmental (E), social (S), and gov-
ernance (G) topics and datapoints, of which these
statement are based on. The methodology, scope,
limitations, process and outcome of the DMA can
be read on pages 50-54.
Hexagon Purus reports its greenhouse gas
(GHG) emissions in accordance with the
Greenhouse Gas Protocol (GHG Protocol). Our
human rights and working conditions reporting is
based on the OECD Guidelines, and is required
by the Norwegian Transparency Act.
Hexagon Purus operates in the following high
climate impact sectors:
• Manufacture of electrical and electronic equip-
ment for motor vehicles (C29.31)
• Manufacture of other parts and accessories for
motor vehicles (C29.31)
• Manufacture of other transport equipment not
covered elsewhere (C30.99)
• Manufacture of other fabricated metal prod-
ucts not covered elsewhere (C25.99).
Consolidation and accounting policies
Hexagon Purus’ sustainability reporting for 2024
covers the same companies as the financial
reporting. A complete overview of which subsid-
iaries are included for 2024, are listed in Note 1 in
the Group Financial Statements. For any future
mergers, acquisitions, or disposals, we will adjust
historical figures to reflect any such events.
Hexagon Purus has three associated companies
as of 2024: CIMC-Hexagon Hydrogen Energy
Systems Limited, Cryoshelter LH2 GmbH, and
Norwegian Hydrogen, located in China, Austria
and Norway, respectively. These companies
are treated as investments in accordance with
the GHG Protocol. As such Scope 1 and 2 GHG
emissions from the associated companies are
included in the Scope 3 Category 15, Investments.
Other quantitative sustainability data points from
the associated companies are not included in the
consolidated sustainability statements.
The accounting policies for the sustainability
statements have been applied consistently
throughout the reporting period and will be
specified in the respective quantitative reporting.
If applicable, historical and comparative figures
have been updated accordingly.
Reporting scope boundaries
The qualitative information presented in the
sustainability statements covers our upstream
and downstream value chain, thus reflecting the
process of identifying material topics from the
DMA from a value chain perspective. Apart from
the Scope 3 GHG inventory, which will include
data from our value chain, our sustainability data
points solely include figures aligned with our
consolidation and accounting policies. We have
not used the option to omit a specific piece of
information corresponding to intellectual prop-
erty, know-how, or the results of innovation.
Key accounting estimates and judgements
Hexagon Purus discloses relevant and topical
accounting policies, including accounting esti-
mates and judgements, for all material topics in
their respective sections. If we do not have accurate
and complete data, we use judgments and esti-
mates for the reporting of some data points. We
will on a continuous basis assess the use of esti-
mates and judgements based on the development
of ESG reporting, increased data maturity, and
using inspiration from peers, among other factors.
Changes in estimates are recognized in the period
where the estimate in question is revised, and
historical figures are updated accordingly.
Relevant value chain data, either from upstream,
in our own operations, or downstream, estimated
using indirect sources, will be explicitly disclosed
in the respective chapters. The information will
include level of accuracy, basis for preparation,
and planned actions to improve accuracy going
forward. If relevant we will also include degree
of measurement uncertainty, marked with either
“High”, “Medium” or “Low” uncertainty. Estimates
will primarily be used when calculating our Scope
3 GHG emissions and in our waste reporting.
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SUSTAINABILITY STATEMENTS | GENERALSUSTAINABILITY STATEMENTS | GENERAL
Restatements
Changes in preparation or presentation of
sustainability information are explained with a
subsequent revision of comparative figures, in
case this is practical. The effects originating from
the change will be specified, either in tables,
figures, or a combination of both. If we identify
that it is impractical to revise these figures, we will
disclose this explicitly.
Factual reporting errors in prior periods will first
be assessed to understand whether the errors
can lead to material changes and would alter
the opinion for the user of the sustainability
statements. In case we identify that these factual
reporting errors are in fact material, we will dis-
close the nature of the prior period material error.
Where practical, we will make corrections for
each prior period included in the sustainability
statement. In case it is not practical to change
comparative figures from prior periods, we will
disclose the rationale behind this decision.
For all restatements of comparative figures,
this will be clearly indicated. This year we have
restatements in the EU Taxonomy CAPEX and
OPEX reporting.
Phase-in requirements
ESRS allows for the phase-in of some disclo-
sure requirements or datapoints of disclosure
requirements, which may be omitted or are not
applicable for the first year(s) of preparation of
the sustainability statement under the ESRS. If
considered material from our DMA, these disclo-
sure requirements, or datapoints of disclosure
requirements, will be reported as “phase-in” in
the ESRS Index.
Incorporation by reference
The table below shows where we have presented
information concerning a specific disclosure
requirement outside of the sustainability state-
ments, referred to as ‘incorporated by reference’
to either the section about Our strategy, Our
business, the Board of Directors Report, or the
financial statements within this annual report, or
to the remuneration report published separately.
Assurance
The information presented in the sustainability
statements have been subject to external assur-
ance performed by our auditor EY. The assurance
report can be found on page 193-197.
ESRS Index
An overview of the various disclosures we report
on in accordance with ESRS, in addition to any
references, comments or omissions, can be
found in the ESRS Index. The ESRS Index is
disclosed as part of this report, and published
separately on www.hexagonpurus.com.
Incorporation by reference
Topic DR Reference in AR Page(s)
GOV-1 20a, 20c Executive Management - overview
Board of Directors - overview
24-25, 41-42
GOV-1 20b Risk and Impact Management
31-32
GOV-1 21 Board of Directors - overview
41-42
GOV-1 22 Risk and Impact Management
31-32
GOV-1 23 Board of Directors - overview
41-42
GOV-2 26a, 26b Risk and Impact Management
31-32
GOV-2 26c Board of Directors
30
GOV-3 29 Bonuses, variable cash salary, Short-term Incentive Program (STIP)
33
GOV-5 36 Risk management and internal controls over sustainability reporting
32-33
SBM-1 40ai,
40aii, 40e,
40f, 40g
Our business | Hydrogen and Battery Storage Offering
Our business | Vehicle integration offering
Infrastructure applications
Mobility Applications
12-13,
14,
19-20,
21-23
SBM-1 40b
Financial Statements - Note 4 Operating segments 133-134
SBM-1 42 Strategy
11
SBM-2 45d Risk and Impact Management
31-32
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SUSTAINABILITY STATEMENTS | GENERALSUSTAINABILITY STATEMENTS | GENERAL
Double materiality assessment
Introduction
In 2024, we conducted a double materiality
assessment (DMA) in accordance with the ESRS.
During the DMA, we looked at how Hexagon
Purus’ own operations and its value chain impact
the environment and society (impact materiality).
We also assessed the financial consequences
associated with sustainability-related risks and
opportunities our business may face (financial
materiality).
The outcome of the DMA not only sets the foun-
dation for the CSRD reporting but also informs
the areas that are strategically important for
Hexagon Purus.
Methodologies and assumptions
Scope
Following the ESRS guidelines we developed
our methodology and defined the process steps
to perform the DMA. We started the DMA by
mapping our activities in our value chain from
upstream, our own operations, to downstream,
to identify areas where and when impacts, risks
and opportunities (IROs) may arise. The key
categories of our value chain activities included
material sourcing, product development, man-
ufacturing and application of products, and
treatment of end-of-life products. As we operate
a global business, the geography of these activi-
ties was also considered.
Our value chain analysis was performed based on
our internal knowledge to date. This means that
our understanding of our value chain beyond
our own operations may not be comprehensive.
As we continue to collaborate with our business
partners and engage with relevant stakehold-
ers, we will update and improve our DMA at
least annually and when information becomes
available.
Stakeholder engagement
Stakeholder engagement is an essential part of
the DMA. We engaged both internal and external
stakeholders to gather their perspectives and
insights into the sustainability topics and how the
topics relate to Hexagon Purus. For this DMA, the
members from the Board and the executive man-
agement team and the in-house subject matter
experts were the main internal stakeholders we
Impact materiality
How we impact
the world
Double
materiality
Financial materiality
How the world
impacts us
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SUSTAINABILITY STATEMENTS | GENERALSUSTAINABILITY STATEMENTS | GENERAL
engaged. The external stakeholders included
selected key customers, suppliers, and investors.
We interviewed these stakeholders using a
pre-defined list of questions to ensure that the
interviews were conducted in a structured and
consistent manner. Before the interviews, all the
invited stakeholders received an introduction
material of Hexagon Purus’ DMA. The findings
from the stakeholder interviews provided input
to the IRO identification process as well as the
establishment of thresholds for material topics.
In addition, workshops were organized with the
internal stakeholders in various steps of the DMA
to review, calibrate, and validate the identified
IROs and their significance.
For this DMA, we have not directly consulted
with the affected stakeholders such as employ-
ees, value chain workers and others. We mainly
relied on Hexagon Purus’ own knowledge and
the feedback collected from the stakeholders
interviewed who may interact with these affected
stakeholders. We will continue to identify and
engage with our stakeholders and make sure
their interest and views are taken into considera-
tion in future materiality assessment.
Timeframes
When assessing the IROs, we consider when
the IROs are expected to occur in different time
horizons. These horizons align with the defini-
tions in ESRS.
• Short term: Impact, risk or opportunity that
currently exists or may arise within 0-1 year
• Medium term: Impact, risk or opportunity that
may arise within 2-5 years
• Long term: Impact, risk or opportunity that may
arise in >5 years
Scoring materiality and thresholds
We applied the ESRS guidance to rate the signif-
icance of the identified IROs. The impacts were
scored based on their scale, scope, irremediability
(negative impact), and likelihood. For the risks
and opportunities, we used the EBITDA-effect as
an indicator to assess the financial magnitudes.
The product of the financial magnitude and the
likelihood gives the significance of the risks and
opportunities.
The short-term IROs were scored quantitatively,
while for the medium- and long-term IROs, a
qualitative assessment was done by commenting
on the potential development over time.
The thresholds were established after rating the
significance of the identified IROs. This method
makes it easy to determine which IROs exceed
the threshold, but allows adjustments solely
based on judgements. We will assess the meth-
odology for thresholds going forward.
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SUSTAINABILITY STATEMENTS | GENERALSUSTAINABILITY STATEMENTS | GENERAL
Processes
The DMA for 2024 was facilitated by the Global
Sustainability and People and Culture functions
with support from the executive management
team. The DMA comprised four phases. The
stakeholder engagement activities provided
input throughout the first three phases before
the material topics were established. The
approaches taken during each phase are sum-
marized below.
1. Research and gather insights
Building on the value chain analysis, we con-
ducted desktop research and reviewed the
information from the following sources to analyze
and pre-screen potential material topics. The
pre-screened topics were further used in the
stakeholder interviews to obtain the stakehold-
ers’ views on them. The first phase established
a comprehensive context for the subsequent
phases of the DMA.
• ESG reporting frameworks and ratings
• Peer benchmark
• Media screening
• Previous materiality assessment
• Findings of the environmental and social
assessments such as human rights due
diligence
1. RESEARCH AND GATHER INSIGHTS
• Value chain analysis
• Desktop research and benchmarking
2. IDENTIFY AND ASSESS IMPACT, RISKS AND OPPORTUNITIES
• Identify, assess, and score the impact, risk and opportunity
3. REVIEW AND VALIDATE
• Two workshops to review the identified IROs and their scorings.
• A validation workshop to discuss thresholds and finalize the assessment
4. REPORT AND MONITOR
Stakeholder
engagement
Calibrate
The DMA Process Steps
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SUSTAINABILITY STATEMENTS | GENERALSUSTAINABILITY STATEMENTS | GENERAL
2. Identify and assess impact,
risks and opportunities
Based on the insights from the first phase
and the stakeholders’ input, we identified and
assessed the impacts, risks and opportunities
(IRO). When assessing impacts during this DMA,
we have not considered business activity and/
or geography specific factors that may increase
the risk of potential adverse impact. Risks or
opportunities arising from dependencies are
addressed directly in the IRO overviews in the
respective chapter. We also have a description of
our dependencies in our value chain overview on
page 46 and in our value creation on page 11.
3. Review and validate
An iterative process was adopted to review and
validate the IROs. The initial IROs identified
during the second phase were presented in two
internal workshops with members of the execu-
tive management team. One workshop focused
on the impacts, while the other focused on the
financial risks and opportunities. The discussion
and feedback from the two workshops were taken
to calibrate the IROs and their significance.
The updated IROs were then reviewed in a
validation workshop where the executive man-
agement and the sustainability team discussed
and determined the thresholds, adjusted and
finalized the assessment. Finally, the material
sustainability topics for Hexagon Purus were
established.
4. Report and monitor
We will report on the material topics resulting
from the DMA process in accordance with the
CSRD on a yearly basis. Appropriate processes
and review cycles will be set up to monitor our
progress on each material topic, ranging from
addressing impacts, assessing strategy, targets,
and plans, and to implement internal controls
and enhance data quality.
For more information about how sustainability
and sustainability impacts, risks, and oppor-
tunities, resulting in the DMA, are integrated
in management processes, please refer to the
Board of Directors’ report, with subheadings
Risk and Impact Management (page 31) and Risk
management and internal controls for sustaina-
bility reporting (page 32).
A
n
n
u
a
l
c
y
c
l
e
Knowledge
and ownership
Double
materiality
Gap
analysis
Monitor
progress
Monitor regulatory
development
Strategy, targets
and plants
Internal controls
and assurance
Plan and publish
ESG reporting
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SUSTAINABILITY STATEMENTS | GENERALSUSTAINABILITY STATEMENTS | GENERAL
Outcome
The DMA identified six material sustainability
topics for Hexagon Purus. For topics where we
primarily identified risks and/or opportunities,
these were assessed as financially material. For
topics where we primarily identified negative
and/or positive impacts, these were assessed as
material from an impact perspective. Where we
identified impacts, risks, and opportunities for
specific topics, these were assessed as material
from both an impact and a financial perspective.
Further explanations for why these topics are
assessed as material, and accompanying impacts,
risks, and opportunities in our value chain, can be
found in the introduction of each material ESRS
topic chapter.
One of the intended outcomes from a DMA
is to identify which topics are not assessed as
material. We have decided to refer to these topics
as “Informative” to emphasize that these topics,
while not assessed as material, are also impor-
tant and that they also inform us about how we
should work with sustainability. Further, it pro-
motes the dynamic attributes of a DMA, allowing
us to consider the materiality of these topics in
the annual DMA review.
Financial materiality
Impact materiality
High
High
FINANCIAL
• Consumers and end-users
INFORMATIVE
• Pollution
• Water and marine resources
• Biodiversity and ecosystems
• Affected communities
IMPACT
• Resource use and circular
economy
• Business conduct
• Workers in the value chain
DOUBLE
• Climate change
• Own workforce
Placement of topics within each quadrant do not reflect the relative level of materiality
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SUSTAINABILITY STATEMENTS | GENERALSUSTAINABILITY STATEMENTS | GENERAL
Interests and views of stakeholders
Internal and external stakeholders play a crucial role in shaping Hexagon Purus’ operations. We strive for active and regular engagement and collaboration with them.
The table below explains why we engage, how we engage, what we discuss, and what we want to achieve when engaging with our stakeholders.
WHY WE ENGAGE HOW WE ENGAGE KEY TOPICS INTENDED OUTCOME
Employees and potential employees
Hexagon Purus’ employees are fundamental to our
competitive advantage and for our sustainable value
creation. They are the cornerstone of our success.
• Internal communication
platforms
• Global and local
town halls
• Department meetings
• Employee surveys and
follow-up processes
• Leadership meetings
• Training
• 1:1s
• Social gatherings
• Career fairs
• Social media
• Workforce development
• Occupational health
and safety
• Diversity, equity
and inclusion
Understanding our employees’ perception of the working
environment in order to develop our workplace further,
so that employees can develop, thrive and deliver.
Customers
Hexagon Purus’ customers have a direct impact
on our business through the purchase and use of
our products. Collaborating with our customers is
important to drive sustainable value creation.
• Emails
• Meetings
• Presentations
• Site visits
• Conferences
• Industry events
• Customer surveys
• Operational efficiency
• Pricing
• Delivery schedules
• Financial position
• Product safety
• Low carbon technology
solutions
• Climate action
• Responsible procurement
• Product lifetime
• Governance
• Human rights
We are in touch with our customers every day, addressing
their needs and working together with new solutions. Close
dialogue with our customers is key to plan production
schedules, ensure operational efficiency, while at the
same time maximizing the value from our products.
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WHY WE ENGAGE HOW WE ENGAGE KEY TOPICS INTENDED OUTCOME
Investors and strategic partners
Investors and strategic partners have a direct impact
on our company through funding and through
their control functions. Our investors are integral
to provide the financial and organizational capacity
to accommodate sustainable value creation.
• Presentations
• Annual General Meeting
• Meetings and roadshows
• Annual Report
• Website
• Financial position
• Corporate governance
• Compliance
• Ethics and anti-corruption
• EU taxonomy
Close dialogue with our investors and strategic partners
is important to maintain good governance and to
discuss short-term and long-term strategies.
Suppliers
We source complex materials and products to enable a
future with zero-emission mobility. Building good and
stable relationships with our suppliers is therefore a
driving force for our company. We are directly impacted
by our suppliers through their procurement methods and
ethical practices, and thus seek collaboration with our
suppliers and business partners to ensure that they are
aligned with our vision of sustainable value creation.
• Presentations
• Annual General Meeting
• Meetings and roadshows
• Annual Report
• Website
• Quality
• Financial position
• Anti-corruption and integrity
As with our customers, we are in touch with our suppliers
every day. We have high quality standards for our products
and solutions, thus cascading these standards to our
suppliers. With close supplier dialogue and collaboration, we
can optimize our production schedules and our operational
efficiency, while at the same time work together to reduce the
sustainability footprint originating from our supply chain.
NGOs, governments, regulators
Our operations are global, and both national and
international regulations and legislation affect our business
plans and strategy. NGOs, governments and regulators also
have expectations for us which are not mandated by laws
and regulations, directly impacting our license to operate
and accommodating our sustainable value creation.
• Partnerships
• Conferences
• Industry events
• Community events
• Public forums
• Industry associations,
advisory boards
and committees
• Research and development
• Product safety
• Regulatory development
• Anti-corruption
and integrity
• Health and safety
• Diversity and inclusion
• Environmental action
• Local community
By participating in partnerships, industry associations,
and research programs, we can contribute to the energy
transition that would be favorable for our business.
Simultaneously we are informed of changes to laws and
regulations that could affect our business and operations.
Hexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024
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Environment
ESRS E1 | Climate change
58
Climate change mitigation
60
Energy
67
Climate scenario impacts
69
EU Taxonomy Reporting
73
ESRS E5 | Resource use and circular economy
81
Hexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024
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ESRS E1 | Climate change
IRO OVERVIEW
SUBTOPIC IRO VALUE CHAIN DESCRIPTION IRO DEVELOPMENT
Climate change mitigation
Products and solutions with
embedded upstream emissions
Negative impact Upstream Our products require materials and components that are energy- and material-intensive, e.g. carbon fiber, steel,
aluminum, batteries. These materials and components have embedded GHG emissions, contributing to increasing
greenhouse gas emissions.
Increase – medium timeframe
Increase – long-term timeframe
Products and solutions reduce
downstream emissions
Positive impact Downstream Our products and solutions enable zero-emission mobility and allow our customers to avoid tailpipe CO
2
emissions. Increase – medium timeframe
Increase – long-term timeframe
Increased speed in green
energy transition
Opportunity Downstream Positive developments in the green energy transition, regulations, and governments' supporting schemes, increase the
demand for alternative technologies and energy in the mobility sector, leading to higher demand for our products and
solutions and thus increased growth.
Increase – medium timeframe
Increase – long-term timeframe
Reduced speed in green energy transition Risk Downstream Negative developments in the green energy transition, regulations, and governments' supporting schemes, decrease the
demand for our products and solutions, leading to reduced growth.
Stable – medium timeframe
Stable – long-term timeframe
Inability to decarbonize Risk Own operations Regulations and customer expectations become more stringent, also with regards to companies’ carbon footprint and
decarbonization ability. Inability to decarbonize own operations might affect our ticket-to-play.
Increase – medium timeframe
Increase – long-term timeframe
Energy
Carbon intensive grid mix Negative impact Downstream Fuel cell electric vehicles (FCEV) and battery electric vehicles (BEV) are powered by hydrogen-to-electricity conversion or
electricity, respectively. Hydrogen production and electricity generation emit GHG emissions with the current energy mix.
Increase – medium timeframe
Increase – long-term timeframe
Energy-intensive materials
and components
Negative impact Upstream The materials and components we source are energy-intensive, e.g. carbon fiber, steel, aluminum, batteries, where
increased demand for our solutions will increase energy consumption.
Stable – medium timeframe
Stable – long-term timeframe
Energy shortage and higher prices Risk Upstream Energy prices may go up, thus increasing the prices of materials and components which are crucial for our products and
solutions.
Increase – medium timeframe
Increase – long-term timeframe
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The world is getting warmer and
warmer. 2024 marks the first year
where we are exceeding the
1.5
o
C target laid out in the Paris
Agreement.
1
The attention has now
been shifted towards limiting every
fraction of a degree of warming.
Rising temperatures will exacerbate the physical
effects from climate change; effects we are
experiencing already. Deadly heatwaves in Saudi
Arabia, extensive flooding in Brazil, and heavy
rainfall in Southern Europe are just some of this
year’s tragic consequences of a warmer world
with higher frequency of extreme weather events.
To prevent the disastrous effects from hap-
pening, we must work together to reduce
greenhouse gas (GHG) emissions. We need
smart and scalable solutions and products to
turn the tide. Our products and solutions are key
technology enablers in the transition towards
zero-emission mobility. We believe our technol-
ogies and capabilities can play an integral role in
combating climate change. This is why we exist.
1
Copernicus Climate Change Service, “Copernicus: 2024 Is the
First Year to Exceed 1.5°C above Pre-Industrial Level,” January 10,
2025, https://climate.copernicus.eu/copernicus-2024-first-year-
exceed-15degc-above-pre-industrial-level.
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SUSTAINABILITY STATEMENTS | ENVIRONMENTSUSTAINABILITY STATEMENTS | ENVIRONMENT
Climate change mitigation
Our approach
Climate change mitigation is at the core of our
business. We are a global leader in the hydrogen
infrastructure and zero-emission mobility space
offering leading hydrogen and battery energy
storage solutions and heavy-duty vehicle integra-
tion, providing hydrogen Type 4 high-pressure
cylinders and systems, battery systems and
vehicle integration solutions for fuel cell electric
and battery electric vehicles. Our products and
solutions allow our customers to increase the
speed of their decarbonization journey.
At the same time, we also acknowledge that
our products and solutions require energy- and
material-intensive components and materials.
Similar to other manufacturing companies, we
therefore generate the largest negative sustain-
ability footprint in our upstream value chain.
Embedded GHG emissions generated from our
sourced materials, such as carbon fiber, batteries,
aluminum, and steel, represent some of the
largest contributors to our GHG inventory.
Understanding and decarbonizing our upstream
value chain footprint is an environmental priority
for us. We have a complete inventory for our
Scope 1 and 2 GHG emissions in 2024, enabling
us to understand what decarbonization actions
we can make in our own operations by further
streamlining our operations and production. We
are also continuously working to improve our
Scope 3 reporting, which requires collaboration
with our most important suppliers. Regardless
of the completeness of our Scope 3 inventory we
know what materials, components, and suppliers
are the main contributors to our upstream value
chain emissions. It is therefore possible to work
proactively with reducing our Scope 3 GHG
emissions, even without a complete inventory.
We have not used climate change-related
scenario analysis such as Representative
Concentration Pathways (RCP), or similar rep-
resentations of future GHG concentrations and
its expected changes in radiative forcing, to
determine transition risks and opportunities or
their magnitude. We can still assess the resilience
of our business, since our strategy and business
model are largely dependent on the energy
transition from fossil fuels to renewables. We
are thus exposed to both short- and long-term
climate change transition risks and opportunities,
such as developments in policy and legal frame-
works, emerging technologies, and changes in
market demand.
Our most significant climate change transition
risks originate from the delayed adoption of
zero-emission infrastructure and mobility solu-
tions, where delays can have an impact on the
execution of our business strategy and plan.
Increased cost of capital and uncertain regulatory
support are both contributing factors to this
delay. We also experience uncertainty concern-
ing environmental policies in some of our key
markets, contributing to the overall transition
risks. Our large capital investments in the past
two years allow us to have the operational flex-
ibility to scale and scope the production based
on market development and the speed of this
transition, to some extent mitigating the risks
attributed to delayed transition.
More information about market outlook and
market development can be found in the CEO
letter, the BoD report, and financial statements
respectively.
We have conducted a physical climate risk assess-
ment for five of our facilities, indicating that some
of our facilities will be increasingly exposed to
climate risks in the future. We will monitor the
identified risks going forward and continue to
assess their potential impact on our business
operations.
We do not have global policies addressing iden-
tified impacts, risks and opportunities originating
from climate change mitigation or adaptation.
Our Environmental, Health and Safety Policy,
meant for our own operations, addresses
emissions, promotion of renewable energy, and
energy conservation wherever feasible.
Our facilities in Kassel and Weeze have solar PV
on the roof, which contributes to lowering our
Scope 2 GHG emissions. The solar PV in Kassel
were functional for the full year 2024, while the
solar PV in Weeze will go online in 2025.
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Our actions
Actions this year
• Replacing the natural gas-powered production
equipment with electricity-powered equip-
ment in our Kassel facility. The electricity is
sourced from the grid as well as the solar PV
panels installed on site. This will reduce our
direct GHG emissions. The resulting emission
reduction from both actions will be quantified
next year when data becomes available. For
solar PV the energy consumption was 35 MWh,
equivalent to a 13 tCO
2
e reduction, all else
equal (location-based)
• Improving the GHG inventory compared to
previous years, estimating emissions from
business commute and investments, in addi-
tion to provide a first estimate for emissions
originating from purchased goods and services
Planned actions
• For our Battery Systems and Vehicle
Integration (BVI) segment, we are planning to
co-locate battery pack assembly and finished
trucks in 2026 to optimize production and
minimize transportation impacts. We are also
planning to move overseas suppliers to North
America, bringing the main supplier base
closer to our Dallas and Kelowna operations.
This will further reduce transportation costs
• The solar PV installed in our Weeze facility will
go online in 2025 to further reduce our GHG
emissions originating from our own operations.
We have not assessed the actual reductions
relative to any targets. This investment is not
seen as significant from an OPEX or CAPEX
perspective.
Targets
2025 will be the first full year where our newly
built facilities will be operational. We have there-
fore not set any quantifiable climate-related
targets, including GHG emission reduction
targets, for 2025 or any future period as of the
publication of this report.
Due to the Company’s expanded operational
footprint, previous years will not be representa-
tive of comparisons between previous and future
environmental footprint generated from our
operations and our value chain. With a complete
Scope 1 and 2 GHG inventory, we have sufficient
information to establish Scope 1 and 2 GHG
emission reduction targets in 2025. This will also
apply to all Scope 3 categories in the future when
the data quality and completeness are sufficient.
As such we have not established a transition
plan for climate change mitigation, including
any referenced GHG emission reduction targets,
actions, or decarbonization levers.
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RESULTS
|
ESRS E16 GROSS SCOPES 1, 2, 3 AND TOTAL GHG EMISSIONS
Retrospective Milestones and target years
2024 (base year) Comparative 2024 % N / N-1 2025 2030 2050
Annual target %
/ Base year
Scope 1 GHG emissions
Gross Scope 1 GHG emissions (tCO
2
eq) 681 N/A 681 N/A N/A N/A N/A N/A
Percentage of Scope 1 GHG emissions from regulated emission trading schemes (%) 0% N/A 0% N/A N/A N/A N/A N/A
Scope 2 GHG emissions
Gross location-based Scope 2 GHG emissions (tCO
2
eq) 3 802 N/A 3 802 N/A N/A N/A N/A N/A
Gross market-based Scope 2 GHG emissions (tCO
2
eq) 6 184 N/A 6 184 N/A N/A N/A N/A N/A
Scope 3 GHG emissions
Total Gross indirect (Scope 3) GHG emissions (tCO
2
eq) 59 381 N/A 59 381 N/A N/A N/A N/A N/A
Purchased goods and services 40 701 N/A 40 701 N/A N/A N/A N/A N/A
Capital goods 15 765 N/A 15 765 N/A N/A N/A N/A N/A
Fuel- and energy-related activities (not included in Scope 1 or Scope 2) 867 N/A 867 N/A N/A N/A N/A N/A
Upstream transportation and distribution (not estimated) - N/A - N/A N/A N/A N/A N/A
Waste generated in operations 265 N/A 265 N/A N/A N/A N/A N/A
Business travel 550 N/A 550 N/A N/A N/A N/A N/A
Employee commuting 872 N/A 872 N/A N/A N/A N/A N/A
Downstream transportation and distribution (not estimated) - N/A - N/A N/A N/A N/A N/A
Use of sold products (not estimated) - N/A - N/A N/A N/A N/A N/A
End-of-life treatment of sold products (not estimated) - N/A - N/A N/A N/A N/A N/A
Investments 361 N/A 361 N/A N/A N/A N/A N/A
Total GHG emissions
Total GHG emissions (location-based) (tCO
2
eq) 63 864 N/A 63 864 N/A N/A N/A N/A N/A
Total GHG emissions (market-based) (tCO
2
eq) 66 246 N/A 66 246 N/A N/A N/A N/A N/A
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SUSTAINABILITY STATEMENTS | ENVIRONMENTSUSTAINABILITY STATEMENTS | ENVIRONMENT
GHG intensity per net revenue Comparative 2024 % N / N-1
Total GHG emissions (location-based) per net revenue (tCO
2
eq/tNOK) N/A 0.034 N/A
Total GHG emissions (market-based) per net revenue (tCO
2
eq/tNOK) N/A 0.035 N/A
Net revenue N/A 1 875 839 N/A
Net revenue is reconciled with Total revenue in our Income Statement.
Our Scope 1 GHG emissions mainly originate
from the combustion of natural gas used for
heating in our facilities. Weeze, Shijiazhuang, and
Kelowna constitute 32 per cent, 28 per cent, and
16 per cent of the total Scope 1 GHG emissions,
respectively. Our facilities in Kassel, Weeze, and
Shijiazhuang are the main contributors to our
GHG Scope 2 emissions, which is a combination
of the grid mix in the respective locations and
their use of electricity in production. We do not
purchase Guarantees of Origin for any of our
sites to reduce market-based emissions.
For our Scope 3 GHG emissions, purchased
goods and services constitute 69 per cent of the
total, while capital goods constitute 27 per cent.
For estimation uncertainty around Scope 3 GHG
emissions, please refer to the Methodology for
GHG Accounting on the next page. The percent-
age of emissions calculated using primary data
obtained from suppliers or other value chain
partners is 1.9 per cent. Applicable categories are
Category 3 Fuel-and energy related activities not
included in Scope 1 and 2 and Category 5 Waste,
which both rely on primary activity data.
Our GHG emission intensity, measured as the
ratio of total GHG emissions in tonnes CO
2
eq
per thousand Norwegian krone in revenue
equals 0.034 for market-based emissions (0.035
for location-based). The denominator in the
GHG intensity calculation is equivalent to “Total
revenue” in our Group Income Statement, found
on page 121, and in Note 4 Operating Segments.
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SUSTAINABILITY STATEMENTS | ENVIRONMENTSUSTAINABILITY STATEMENTS | ENVIRONMENT
Methodology for GHG Accounting
The reported metric tons of CO
2
equivalents (tCO
2
eq) are calculated in accordance with the Greenhouse Gas Protocol, its standards, recommendations, and guiding documents. The data used to calculate the GHG account
includes internal and external sources and is calculated by the in-house sustainability team. The calculation method, data, and references are summarized in the following table.
Gases included for Scope 3 GHG emissions are CO
2
, CH
4
, and N
2
O. The consolidation approach follows our financial consolidation approach.
METHOD DESCRIPTION BY SCOPE AND CATEGORY
Scope Method description
Level of measurement
uncertainty
Scope 1 Direct
emissions
Emissions are calculated using activity data, and by multiplying the applicable fuel consumptions with respective emission factors. Gases included in the calculations
are CO
2
, CH
4
and N
2
O. The UK Government GHG Conversion Factors for Company Reporting (referred to as DEFRA),
1
with references to the IPCC AR5 for GWP rates, are
adopted. The activity data also coves consumption for any company-leased and owned vehicles. No direct biogenic emission is generated in 2024.
Low
Scope 2 Energy indirect emissions The product of the purchased electricity and the corresponding emission factors gives the estimated energy indirect emissions. Gases included in the calculations are CO
2
,
CH
4
and N
2
O.
Location-based emission factors used: Ember ; Energy Institute – Statistical Review of World Energy (2024) (Germany, China), US EPA
2
(US), UNFCCC (Canada), and the
Norwegian Water Resources and Energy Directorate (NVE)
3
(Norway).
Market-based emission factors used: AIB (Germany), Green-e (US), Environment and Climate Change Canada
4
(Canada), I-TRACK Foundation (China), and NVE
5
(Norway).
Hexagon Purus has not purchased contractual instruments (e.g. Renewable Energy Certificate or Guarantees of Origin for our Scope 2 GHG market-based emissions.
Low
Scope 3 Category 1
Purchased goods
and services
Supplier- or product specific information is not available for purchased goods and services, mainly due to missing information on product level cradle-to-gate GHG data.
For many product groups, data on the physical quantity of the purchased good or service is also missing. Average-spend based method is applied to estimate the emissions
with the company’s spend data during the reporting period.
With spend data, emissions are calculated using the US Environmentally-Extended Input-Output (USEEIO) model, which is publicly available and released by US EPA. The
version in use for this calculation is USEEIO v2.0.1-411 .6 adjusted for changes in price levels.
USEEIO v2.0.1-411 refers to economic activities and industry environmental impacts in the US and is most relevant for US entities. Our largest economic and environmental
footprint is outside of the US, implying increased level of measurement uncertainty in these calculations.
Input to the calculations are a combination of the following:
1) Spend-based figures for our main production facilities for direct materials. For Weeze, Kelowna and Westminster, top 10 suppliers based on spend represents the sample. For
Kassel, where direct material costs are highest, we extended the sample to include more suppliers. These suppliers were mapped against the most relevant product categories
and industrial activity.
2) Spend-based figures for all facilities for sales, general, and administrative expenses (SG&A), mapped against the most representative product categories and industrial
activities.
Spend-based method relies on secondary (e.g. industry average) emission factors, which is considered less representative than product- or supplier-specific data.
The uncertainty of this category is therefore high.
High
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Scope Method description
Level of measurement
uncertainty
Scope 3 Category 2
Capital goods
Supplier- or product-specific information is not available, average spend-based method is applied to estimate the emissions with the company’s capital expenditures
during the reporting period. The referenced emission factors are based on 2021 data for average purchases for each category in Norway, with update from 2024, from
the Norwegian Agency for Public and Financial Management (DFØ).
7
Emissions from capital goods include spend-based method relies on secondary (e.g., industry
average) emission factors, which is considered less representative than product- or supplier-specific data. The uncertainty of this category is therefore high.
High
Category 3
Fuel- and energy-related
activities not included in
Scope 1 or Scope 2
Under this category, the upstream emission of purchased fuels and purchased electricity are relevant to Hexagon Purus. The emissions are estimated
using the amount of fuel and electricity and the corresponding well-to-tank emission factors from DEFRA and Carbon Footprint.
9
Low
Category 4
Upstream transportation
and distribution
This category is not estimated for 2024 and represents an omission from ESRS. Current systems and processes do not capture activity data from
upstream transportation and distribution. Spend-based data currently do not separate between mode of transportation. We will in 2025 initiate a
project to collect spend-based data disaggregated on mode of transportation, or, if possible, activity data directly from our suppliers.
High
Category 5
Waste generated in operations
Waste-type-specific method is applied. Emissions from disposal activities for waste sent to landfill, incineration, and recycled are calculated by multiplying the
quantity of waste treated and the emission factors from DEFRA, except for scrap cylinders, scrap carbon fiber, and chemical containing hazardous waste.
For scrap cylinders and scrap carbon fiber recycling, the emission factor reported by the JEC Group
9
is adopted with the assumption that the ultimate product
of both recycling activities would be recycled carbon fiber. Estimating the emissions from the hazardous chemical waste relies on ecoinvent v3.9.
Emissions data directly from waste treatment companies is currently not available. Using waste-type-specific method with the emission
factors from DEFRA means a large degree of generalization. Certain characteristics of waste treatment activities and regional or country
differences may be overlooked in this calculation. Hence, the uncertainty of this category’s emission estimation is high.
High
Category 6
Business travel
Only the emissions arising from business air travel are accounted for in this category in 2024. Distance-based method is applied. For the travels
undertaken by the employees based in Norway and Germany, the emissions are calculated by multiplying the passenger-kilometers traveled and
the DEFRA emission factors capturing non-CO
2
radiative forcing. For the U.S., Canada, and China, the data is currently insufficient to apply either
distance- or spend-based method. Emissions originating from business travel for facilities located in these countries are estimated by calculating
passenger-kilometers travelled per employee for Norway and Germany, multiplied by number of employees for the respective countries.
Conversion factors account for differences between domestic, continental, and inter-continental flights. For simplicity
the differences among business and economy classes are not considered due to data limitations.
Low
Category 7
Employee commuting
A commuting survey was conducted for all our locations early 2025 to capture data about work location, commuting distance to work, main mode of transportation,
and percentage of remote working. The distance-based method can therefore be applied to estimate emissions from employee commuting. The survey allowed
input of multiple modes of transportation, thus increasing the granularity of data. Calculations include emissions originating from remote working.
Emission factors used for each mode of transportation is from DEFRA.
N = 354, implying a response rate of 41.7%. Estimates based on this response rate are projected on the remaining
population for each location, adding to the level of measurement uncertainty.
Low
Category 8
Upstream leased assets
Not applicable. -
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SUSTAINABILITY STATEMENTS | ENVIRONMENTSUSTAINABILITY STATEMENTS | ENVIRONMENT
Scope Method description
Level of measurement
uncertainty
Scope 3
Category 9
Downstream transportation
and distribution
This category is not estimated for 2024 and represents an omission from ESRS. Current systems and processes do not capture activity data from upstream
transportation and distribution. Spend-based data currently do not separate between mode of transportation. We will in 2025 initiate a project to collect spend-
based data disaggregated on mode of transportation, or, if possible, activity data directly from our downstream transportation and distribution partners.
-
Category 10
Processing of sold products
This category is not estimated for 2024 and represents an omission from ESRS. Current systems and processes do not capture activity data
from processing of sold products. We will in 2026 initiate a project to assess whether emissions from processing of sold products can be
significant to our Scope 3 GHG emissions, and then collaborate with relevant intermediaries to collect site-specific data.
-
Category 11
Use of sold products
This category is not estimated for 2024 and represents an omission from ESRS. While emissions originating from the use of our
sold products should be insignificant in our Scope 3 GHG reporting based on our zero-tailpipe carbon emission technologies,
we will nevertheless assess the significance level of emissions originating from use of sold products in 2026.
-
Category 12
End-of-life treatment of
sold products
This category is not estimated for 2024 and represents an omission from ESRS. End-of-life treatment for our products and solutions is expected to
improve from an environmental perspective throughout the estimated lifetime of our products and solutions, implying that the end-of-life treatment as
of 2024 does not necessarily represent end-of-life treatment when our products and solutions reach this stage. We will assess the significance of emis-
sions originating from end-of-life treatment in 2026.
-
Category 13
Downstream leased assets
Not applicable. -
Category 14
Franchises
Not applicable. -
Category 15
Investment
A combination of average-data method and investment specific method is used. For the investment in Norwegian Hydrogen AS and Cryoshelter LH2
GmbH, the average-data method is used, with the following input factors: investment share in the respective companies; most recent available revenue
figures; spend-based factors from EXIOBASE 3, specific to countries and industries.
For the investment in CIMC-Hexagon Hydrogen Energy Systems Ltd, the investment-specific method was used. Estimates are made by collecting rel-
evant activity data for Scope 1 and 2, e.g. emissions originating from consumption of natural gas and electricity respectively, and multiplying this with
Hexagon Purus’ share in the company.
High
1
UK Government, “Greenhouse Gas Reporting: Conversion Factors 2024,” July 8, 2024, https://www.gov.uk/government/publications/
greenhouse-gas-reporting-conversion-factors-2024.
2
U.S. Environmental Protection Agency, “GHG Emission Factors Hub,” 2024, https://www.epa.gov/climateleadership/ghg-emission-factors-hub.
3
Noregs vassdrags- og energidirektorat, “Hvor Kommer Strømmen Fra?,” February 20, 2025, https://www.nve.no/energi/energisystem/
kraftproduksjon/hvor-kommer-stroemmen-fra/.
4
Environment and Climate Change Canada, “Emission Factors and Reference Values Version 2.0,” May 2024, https://www.canada.ca/en/
environment-climate-change/services/climate-change/pricing-pollution-how-it-will-work/output-based-pricing-system/federal-green-
house-gas-offset-system/emission-factors-reference-values.html#toc7.
5
Noregs vassdrags- og energidirektorat, “Varedeklarasjon for Strømleverandører,” January 10, 2024, https://www.nve.no/energi/virkemidler/
opprinnelsesgarantier-og-varedeklarasjon-for-stroemleverandoerer/varedeklarasjon-for-stroemleverandoerer/.
6
Wesley W. Ingwersen et al., “USEEIO v2.0, The US Environmentally-Extended Input-Output Model v2.0,” Scientific Data 9, no. 1 (May 3, 2022):
194, https://doi.org/10.1038/s41597-022-01293-7.
7
the Norwegian Agency for Public and Financial Management (DFØ), “Utslippsfaktorer for Statlige Innkjøp,” 2022, https://dfo.no/
nokkeltall-og-statistikk/innkjop-i-offentlig-sektor/utslippsfaktorer-statlige-innkjop.
8
Carbon Footprint Ltd, “International Electricity Factors,” International Electricity Factors, 2024, https://www.carbonfootprint.com/docs/2024_07_
international_electricity_factors_1.xlsx.
9
JEC Group, “Thermolysis Launches Fully Recyclable Products Using Recycled Carbon Fibre at JEC World 2024,” 2024, https://www.jeccomposites.
com/news/spotted-by-jec/thermolysis-launches-fully-recyclable-products-using-recycled-carbon-fibre-continuing-to-promote-the-car-
bon-fibre-industry-towards-a-circular-economy/?news_type=announcement,business,process-manufacturing,product-technology&end_
use_application=aerospace,automotive-road-transportation,other-composites-end-use-areas,sports-leisure-recreation&tax_product=car-
bon-fiber,recycling&exceptionaltags=jec-world-2024,sustainability.
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SUSTAINABILITY STATEMENTS | ENVIRONMENTSUSTAINABILITY STATEMENTS | ENVIRONMENT
Energy
Our approach
The speed of the energy transition is impacted
by a balancing act between accommodating
for current and future needs. Shifting from
fossil fuel sources to renewable energy requires
investments in technologies and infrastructure
producing, supporting, and converting renewa-
ble energy. At the same time, we must optimize
the use of the current energy mix to ensure a just
energy transition, which will include fossil fuels in
the foreseeable future.
This balancing act also affects us. Our main input
materials and components, such as carbon fiber,
batteries, aluminum, and steel, are energy-inten-
sive both in the extraction and in the processing
of raw materials. Increased demand for our zero
in-use emission solutions will therefore also
increase energy demand from our suppliers, thus
increasing energy consumption in our upstream
value chain, all else equal.
Increased demand for our products and solu-
tions will also affect energy demand in our
downstream value chain. Our battery-electric
mobility solutions rely on electrical energy,
while our hydrogen infrastructure and mobility
applications support the use of hydrogen as
a fuel source, the production of which is also
energy-intensive.
Both our suppliers and our customers are there-
fore affected by changes in energy prices. Higher
energy prices increase our expenses for impor-
tant materials and components, and will at the
same time also increase cost of ownership for our
customers. We mitigate some of our upstream
risks with longer-term, strategic agreements with
our most important suppliers, thus reducing our
exposure to volatile energy prices.
For the solar PV installed in Kassel and Weeze, we
will primarily use the generated energy for our
own consumption and production. Kassel is the
only facility that used solar PV in 2024. We also
provide electricity to the grid whenever energy
consumption is lower than the energy produced.
Most of our facilities have been upgraded the
past two years, where energy efficiency has been
a priority for the design and planning of the sites.
Our global Environmental, Health and Safety
(EHS) policy also promotes the use of renewable
energy and energy conservation wherever feasi-
ble in our own operations.
Our actions
Actions this year
• Achieved ISO 14001 certifications in in Kassel
and Weeze, where intended outcome is to
continuously improve our environmental man-
agement system
• Increased use of renewable energy from the
solar PV in our Kassel facility
Planned actions
• Go online with the solar PV installed in our
Weeze facility in 2025 to reduce reliance on
external energy sources and to increase use of
renewables
Targets
Energy optimization will always be a key priority
for Hexagon Purus. In addition to lowering the
environmental footprint of our operations, it is
also directly linked to our costs. As our capacity
expansion program was mostly completed this
year, we are now focusing on lowering our energy
intensity and achieving higher output in terms of
production and revenue per unit energy used.
2024 will act as the baseline year for the calcu-
lated energy intensity ratio, measured as total
energy consumption per net revenue. While total
energy consumption will increase as we go from
scale-up to mass production, we should also reap
the benefits of more streamlined and efficient
operations. We have therefore not set any quan-
tifiable energy-related targets for 2025 or any
future period as of the publication of this report.
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RESULTS
|
ESRS E15 ENERGY CONSUMPTION AND MIX
Fuel and energy consumption
2024
(MWh) Total
Coal and coal products -
Crude oil and petroleum products 190
Natural gas 3 269
Other fossil sources -
Purchased/acquired energy from fossil sources 4 496
Electricity 4 496
Heat (district heating) -
Steam -
Cooling -
Fossil sources 7 956
Nuclear 549
Nuclear sources 549
Biomass -
Biofuels -
Biogas -
Green hydrogen -
Purchased/acquired energy from renewable sources 4 127
Electricity 4 086
Heat (district heating) 41
Steam -
Cooling -
Consumption of self-generated non-fuel renewable
energy 35
Renewable sources 4 162
2024
(MWh) Total
Total fuel and energy consumption 12 666
Share of fossil sources in total energy
consumption (%) 63%
Share of nuclear sources in total energy
consumption (%) 4%
Share of renewable sources in total energy
consumption (%) 33%
Energy intensity based on net revenue
Group Unit
Total fuel and energy consumption 12 666 MWh
Net revenue 1 875 839 tNOK
Energy intensity 0.00068% MWh/NOK
Net revenue is reconciled with Total revenue in our Income
Statement.
§ - Accounting policies
Hexagon Purus generates electricity from renewable sources on
one of our facilities (solar PV). The energy consumed from this
generation is reported under consumption of self-generated non-
fuel renewable energy, thus avoiding double-counting.
All of Hexagon Purus’ activities are in high climate impact sectors
as defined in Commission Delegated Regulation (EU) 2022/1288. As
such, both total energy and fuel consumption and revenue figures
include all consolidated entities. The denominator in the energy
intensity calculation is equivalent to “Total revenue” in our Group
Income Statement, found on page 121, and in Note 4 Operating
Segments and Note 5 Revenue from contracts with customers in
the Group Financial Statements.
Estimates
To allocate the share between purchased/acquired/energy from
fossil sources, nuclear sources, and renewable sources, the grid mix
in the respective countries has been used.
Energy from natural gas has been converted to MWh using suitable
conversion factors, following Annex II of the Fifth Assessment IPCC
report.
Level of measurement uncertainty: Low
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Climate scenario impacts
Operating in the zero-emission technology sector with production facilities
in five different countries across three continents makes us exposed and
vulnerable to climate change risks and opportunities.
Since our strategy and business model are directly
linked to the opportunities in the energy transition
from fossil fuels to renewables, we also face equiv-
alent risks in case the transition happens slower
than initially expected. Climate-related transition
risks and opportunities are therefore an integrated
aspect of our business. We regularly monitor
changes in regulatory development, innovation
and new technology, and consumer preferences
in the markets where we operate, ultimately
affecting the applicability of our products and
solutions.
A slower energy transition will also increase
physical climate change risks, where rising tem-
peratures contribute to increased frequency of
acute events, such as hurricanes and floods, and
chronic effects, such as changes in annual rainfall,
frequency of heatwaves, and water availability.
In 2023 a third-party conducted a physical
climate change risk assessment of our production
facilities in Germany, Canada, and the US. Our
facilities in Dallas (U.S.), Shijiazhuang (China),
and Norway were not part of this assessment.
These facilities will be included when we reassess
physical climate change risks for our production
facilities. The scope of the risk assessment was
limited to our own physical assets. We have not
assessed the climate risk exposure of our supply
chain and our most critical input factors such as
carbon fiber, steel, aluminum, or batteries.
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Our exposure to climate-related natural hazards
has been evaluated for present-day conditions
and 2030 and 2050, using Shared Socioeconomic
Pathways (SSP) from IPPC’s Sixth Assessment
Report on climate change from 2021. SSPs are
used to derive GHG scenarios with different
climate policies. The pathways used in this
assessment are SSP1-2.6 (Paris-aligned below
2°C warming by 2100), and SSP3-7.0 (reasonable
worst-case scenario) where the former estimates
a temperature increase of 1.8°C and the latter a
temperature increase of 3.6°C in 2100.
The climate hazards in the table to the right were
included in the screening.
RISK TYPE TEMPERATURE WIND WATER SOLID MASS
Chronic
Change in temperature patterns Changing wind patterns Changing precipitation patterns Coastal erosion
Heat stress Hydrological variability Soil degradation
Temperature variability Ocean acidification Soil erosion
Permafrost
thawing
Saline intrusion Solifluction
Sea level rise
Water stress
Acute
Heatwave Extreme wind Drought Avalanche
Cold wave
Dust and
sandstorms
Extreme precipitation Landslide
Wildfire Tornado River flooding Subsidence
Thunderstorm Coastal flooding
Denotes hazards found to be negligible sites in scope of risk assessment
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SUSTAINABILITY STATEMENTS | ENVIRONMENTSUSTAINABILITY STATEMENTS | ENVIRONMENT
The climate risk exposure assessment has been
performed in three time periods: Present (2020),
near-term (2030), and long-term (2050). These
time horizons deviate from the ones defined by
ESRS for short-, medium- and long-term, but
align with near-term and long-term milestones
set in the Paris Agreement for emissions reduc-
tions and aligns with the requirements in the EU
Taxonomy stating that the assessment should be
performed using the highest available resolution,
state-of-the-art climate projections across the
existing range of future scenarios, consistent with
the expected lifetime of the activity, including, at
least, 10 to 30 year climate projections scenarios
for major investments for activities with lifespans
exceeding 10 years.
In the table we have summarized all the findings
from the climate risk assessment. Risks are only
indicated for facilities with existing risk exposure
assessed as “High” or above, irrespective of
whether risk exposure is expected to change over
the years, or with existing risk exposure assessed
as “Low” or above, where the risk exposure is
likely to change.
RISKS KASSEL KELOWNA ONTARIO WEEZE WESTMINSTER
Flooding River flood
High
Extreme
precipitation
Low Low High Low High
Flash flooding
terrain
Yes Yes Yes
Wildfire Wildfire
High Very high
Wind/storm Extreme wind
Medium High Medium
Thunderstorm
Low Low Low
Heat Heat stress
Medium
Heat wave
Low Medium High Medium Low
Dry Water stress
High Medium Very high High
Drought
High Medium Very high High
Cold Ice storm
High
Heavy snowfall
Medium High High
Cold wave
Low Medium High Medium Low
Arrow pointing up represents (likely) increasing exposure over time Arrow pointing down represents (likely) decreasing exposure over time
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Based on the findings from this analysis, our
facilities in Ontario, Weeze, and Westminster are
the most exposed to acute and chronic climate
change risks in the future.
While wildfires are already posing risks to our
facility Ontario, the risk is expected to increase in
the future. For Weeze, the common risk denom-
inator is water, where the climate risk exposure
to river flooding, water stress, and droughts is
already high and expected to increase going
forward.
Our climate risk assessment is limited to hazard
screening and the assessment of exposure of
climate-related hazards in the present and the
future for the facilities listed above. As such we
have not yet evaluated the potential financial
implications originating from physical climate
risks in each scenario. Going forward we must
perform a climate risk assessment for the
remaining Hexagon Purus facilities, in addition
to assessing vulnerability of the identified expo-
sures and building adaptive actions to increase
resilience, if relevant. This quantitative physical
climate risk assessment should be supported by a
climate transition risk assessment.
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EU Taxonomy Reporting
Accounting policies
Taxonomy-eligible turnover (revenue)
Taxonomy-eligible turnover is the revenue
associated with taxonomy-eligible economic
activities, as a proportion of Hexagon Purus total
revenue. The turnover nominator comprises
turnover from either taxonomy-eligible activities
or taxonomy-aligned activities, while the turnover
denominator includes turnover from both eligible
and aligned activities, as well as turnover from
non-eligible activities.
Hexagon Purus recognizes revenue in compli-
ance with IFRS 15. For further information about
our revenue accounting principles, please see
significant accounting policies in the Group
financial statements.
We have an overview of revenue per applica-
tion for taxonomy-eligible turnover, ensuring
appropriate allocation between the various
economic activities and avoiding double count-
ing in the allocation of turnover. The sum of
taxonomy-aligned revenue, taxonomy-eligible
revenue, and taxonomy non-eligible revenue can
be reconciled with Total revenue in our Group
Income statement.
Taxonomy-eligible CAPEX
Taxonomy-eligible CAPEX is the capital expend-
iture related to assets or processes associated
with taxonomy-eligible economic activities as a
proportion of our total CAPEX accounted for are
based on IAS 16 (paragraph 73e (i) and (iii), IAS
38 (paragraph 118e (i), and IFRS 16 (paragraph
53h)). The CAPEX nominator comprises CAPEX
from either taxonomy-eligible activities or
taxonomy-aligned activities, while the CAPEX
denominator includes CAPEX from both eligible
and aligned activities, as well as turnover from
non-eligible activities.
Some of our facilities manufacture products
and solutions for multiple taxonomy-eligible
activities. It is therefore necessary to separate
capital expenditure for each taxonomy-eligible
activity. For these facilities we will allocate capital
expenditure between these activities based
on proportion of revenue per application, thus
avoiding double counting. The sum of taxono-
my-aligned CAPEX, taxonomy-eligible CAPEX,
and taxonomy non-eligible CAPEX can be recon-
ciled with the sum of Additions this year at cost
price in Note 7 Property, plant and equipment,
Net additions this year at cost price in Note 8
Intangible assets, and Additions this year at cost
price in Note 10 Leases.
The table below demonstrates the quantitative
breakdown at the economic activity level of the
figures included in the CAPEX reporting.
More information about Hexagon Purus CAPEX
alignment and eligibility is explained in the
sections Taxonomy-eligible activities, Taxonomy-
aligned activities and Substantial contribution.
Taxonomy-eligible OpEx
Taxonomy-eligible OPEX is the operating
expenditure related to non-capitalized costs
related to research and development, build-
ing renovation measures, short-term leases,
maintenance and repair and any other direct
expenditures relating to day-to-day servicing
of assets of PPE associated with taxonomy-eli-
gible economic activities. The OPEX nominator
comprises OPEX from either taxonomy-eligible
activities or taxonomy-aligned activities, while
the OPEX denominator includes OPEX from both
eligible and aligned activities, as well as OPEX
from non-eligible activities.
Activity PPE (tNOK)
Intangibles
(tNOK) RoU (tNOK)
3.2 Manufacture of equipment for the production and use of
hydrogen 42 490 614 5 501
3.3 Manufacture of low carbon tech-nologies for transport 1 470 3 087 0
3.4 Manufacture of batteries 196 081 31 048 4 427
3.6 Manufacture of other low carbon technologies 6 820 921
3.18 Manufacture of automotive and mobility components 223 562 38 709 318 317
3.19 Manufacture of rail rolling stock constituents 202 52 261
Non-eligible activities 17 057 8 270 25 434
Total 487 683 81 779 67 008
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SUSTAINABILITY STATEMENTS | ENVIRONMENTSUSTAINABILITY STATEMENTS | ENVIRONMENT
Some of our facilities manufacture products
and solutions for multiple taxonomy-eligible
activities. It is therefore necessary to separate
operational expenditure for each taxonomy-el-
igible activity. For these facilities we will allocate
operational expenditure between these activities
based on proportion of revenue per application,
thus avoiding double counting.
The table below demonstrates the quantitative
breakdown at the economic activity level of the
figures included in the OPEX reporting.
Activity
Plant/equipment
maintenance and repair
(tNOK)
Engineering and
technical product
(tNOK)
3.2 Manufacture of equipment for the production and use
of hydrogen 5 556 7 636
3.3 Manufacture of low carbon tech-nologies for transport 0 0
3.4 Manufacture of batteries 6 683 10 455
3.6 Manufacture of other low carbon technologies 777 899
3.18 Manufacture of automotive and mobility components 16 880 38 612
3.19 Manufacture of rail rolling stock constituents 83 199
Non-eligible activities 1 031 758
Total 29 979 58 360
Hexagon Purus has a conservative approach
for both taxonomy-aligned and eligible OPEX
figures, only including OPEX related to non-capi-
talized costs research and development.
Taxonomy non-eligible KPIs
Turnover, CAPEX, and OPEX associated with
non-eligible activities (not included in the
Delegated Acts) have been determined.
Hexagon Purus has a conservative approach
for taxonomy non-eligible KPIs, not including
turnover, CAPEX, and/or OPEX where there
might be uncertainties related to eligibility
and/or alignment. In cases where we identify
incidents requiring historical restatement, these
restatements will be addressed in a separate
section.
Non-eligible activities are either classified as
Aerospace or Other where the former is not
defined in the EU Taxonomy and the latter
represents the conservative approach.
Restatements
We are continuously working to improve our
financial reporting to disaggregate the various
revenue streams originating from each of our
facilities. With future deliveries of battery-electric
trucks to the Hino program, revenue generation
from facilities with operations in Dallas, Kelowna,
and Ontario will be separated between activity
3.4 Manufacture of batteries and activity 3.6
Manufacture of low carbon technologies for
transport going forward. We expect this change
to be reflected in the Annual Report 2025, when
revenue from the Hino program is expected to
represent a higher share of total revenue from
the battery-electric vehicle integration segment
of our business.
Hexagon Purus’ taxonomy-aligned figures for
CAPEX and OPEX for 2023 were based on a
plan to expand taxonomy-aligned economic
activities or to allow taxonomy-eligible activities
to become taxonomy-aligned under conditions
specified in the Delegated Act (where turnover is
eligible but not aligned). Following the reduction
of capacity costs and overall cost reduction for
Hexagon Purus going forward, this plan has been
postponed in the foreseeable future.
As such, prior year’s taxonomy-aligned CAPEX
and OPEX figures have been updated in the EU
Taxonomy Reporting for 2024 and are now stated
as taxonomy-eligible CAPEX and OPEX for 2023.
GLOSSARY
CCM: Climate Change Mitigation
Y: Yes (taxonomy-eligible and taxonomy-
aligned with relevant environmental
objective)
N: No (taxonomy-eligible but not
taxonomy-aligned activity with the
relevant environmental objective)
N/EL: Not eligible (taxonomy-non-
eligible activity for the relevant
environmental objective)
E: Enabling
T: Transitional Revenue
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SUSTAINABILITY STATEMENTS | ENVIRONMENTSUSTAINABILITY STATEMENTS | ENVIRONMENT
Taxonomy-aligned turnover
Substantial Contribution Criteria DNSH criteria (“Does Not Significantly Harm”)
Economic Activities (1)
Code
(2)
Turnover
2024
(tNOK) (3)
Proportion
of Turnover,
year 2024
(%)(4)
Climate
Change
Mitigation
(5)
Climate
Change
Adaptation
(6)
Water
(7)
Pollution
(8)
Circular
Economy
(9)
Biodiversity
(10)
Climate
Change
Mitigation (
11)
Climate
Change
Adaptation
(12)
Water
(13)
Pollution
(14)
Circular
Economy
(15)
Biodiversity
(16)
Minimum
Safeguards
(17)
Proportion of
Taxonomy-
aligned or
-eligible
turnover,
2023 (18)
Category
enabling
activity
(E) (19)
Category
transitional
activity
(T) (20)
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Manufacture of equipment for the production and use of hydrogen CCM 3.2 - 0% Y N N/EL N/EL N/EL N/EL n.a N Y N N N N 0% E
Manufacture of low carbon technologies for transport CCM 3.3 - 0% Y N N/EL N/EL N/EL N/EL n.a N Y N N N N 0% E
Manufacture of batteries CCM 3.4 - 0% Y N/EL N/EL N/EL N/EL N/EL n.a N Y N N N N 0% E
Manufacture of other low carbon technologies CCM 3.6 - 0% N N N/EL N/EL N/EL N/EL n.a N Y N N N N 0% E
Manufacture of automotive and mobility components CCM 3.18 - 0% Y N N/EL N/EL N/EL N/EL n.a N Y N N N N 0% E
Manufacture of rail rolling stock constituents CCM 3.19 - 0% Y N N/EL N/EL N/EL N/EL n.a N Y N N N N 0% E
Turnover of environmentally sustainable activities (Taxonomy-aligned) (A.1) - 0% 0% 0% - - - - n.a N Y N N N N 0% E -
Of which enabling - 0% 0% 0% - - - - n.a N Y N N N N 0% E -
Of which transitional - 0% - - - - - - - - - - - - - - - -
A.2. Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
Manufacture of equipment for the production and use of hydrogen CCM 3.2 1 057 848 56.4% E E N/EL N/EL N/EL N/EL - - - - - - - 56.9% - -
Manufacture of low carbon technologies for transport CCM 3.3 2 228 0.1% E E N/EL N/EL N/EL N/EL - - - - - - - 1.1% - -
Manufacture of batteries CCM 3.4 91 583 4.9% E N/EL N/EL N/EL N/EL N/EL - - - - - - - 2.3% - -
Manufacture of other low carbon technologies CCM 3.6 175 108 9.3% E E N/EL N/EL N/EL N/EL - - - - - - - 14.3% - -
Manufacture of automotive and mobility components CCM 3.18 467 557 24.9% E E N/EL N/EL N/EL N/EL - - - - - - - 12.8% - -
Manufacture of rail rolling stock constituents CCM 3.19 2 408 0.1% E E N/EL N/EL N/EL N/EL - - - - - - - 2.0% - -
Turnover of Taxonomy-eligible but not environmentally
sustainable activities (not Taxonomy-aligned activities) (A.2) 1 796 733 95.8% 95.8% 0% - - - - - - - - - - - 89.5% - -
A. Turnover of Taxonomy-eligible activities (A.1+A.2) 1 796 733 95.8% 95.8% 0% - - - - -
- - - - - - 89.5% - -
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy non-eligible activities 79 106 4.2%
TOTAL 1 875 839 100.0%
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Taxonomy-aligned CapEx
Substantial Contribution Criteria DNSH criteria (“Does Not Significantly Harm”)
Economic Activities (1)
Code
(2)
CapEx 2024
(tNOK) (3)
Proportion
of CapEx,
year 2024
(%)(4)
Climate
Change
Mitigation
(5)
Climate
Change
Adaptation
(6)
Water
(7)
Pollution
(8)
Circular
Economy
(9)
Biodiversity
(10)
Climate
Change
Mitigation (
11)
Climate
Change
Adaptation
(12)
Water
(13)
Pollution
(14)
Circular
Economy
(15)
Biodiversity
(16)
Minimum
Safeguards
(17)
Proportion of
Taxonomy-
aligned or
-eligible
CapEx,
2023 (18)
Category
enabling
activity
(E) (19)
Category
transitional
activity
(T) (20)
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Manufacture of equipment for the production and use of hydrogen CCM 3.2 - 0% Y N N/EL N/EL N/EL N/EL n.a N Y N N N N 0% E
Manufacture of low carbon technologies for transport CCM 3.3 - 0% Y N N/EL N/EL N/EL N/EL n.a N Y N N N N 0% E
Manufacture of batteries CCM 3.4 - 0% Y N/EL N/EL N/EL N/EL N/EL n.a N Y N N N N 0% E
Manufacture of other low carbon technologies CCM 3.6 - 0% N N N/EL N/EL N/EL N/EL n.a N Y N N N N 0% E
Manufacture of automotive and mobility components CCM 3.18 - 0% Y N N/EL N/EL N/EL N/EL n.a N Y N N N N 0% E
Manufacture of rail rolling stock constituents CCM 3.19 - 0% Y N N/EL N/EL N/EL N/EL n.a N Y N N N N 0% E
CapEx of environmentally sustainable activities (Taxonomy-aligned) (A.1) - 0% 0% 0% - - - - n.a N Y N N N N 0% E -
Of which enabling - 0% 0% 0% - - - - n.a N Y N N N N 0% E -
Of which transitional - 0% - - - - - - - - - - - - - - - -
A.2. Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
Manufacture of equipment for the production and use of hydrogen CCM 3.2 48 605 7.6% E E N/EL N/EL N/EL N/EL - - - - - - - 23.1% - -
Manufacture of low carbon technologies for transport CCM 3.3 4 556 0.7% E E N/EL N/EL N/EL N/EL - - - - - - - 0.1% - -
Manufacture of batteries CCM 3.4 231 556 36.4% E N/EL N/EL N/EL N/EL N/EL - - - - - - - 11.2% - -
Manufacture of other low carbon technologies CCM 3.6 7 742 1.2% E E N/EL N/EL N/EL N/EL - - - - - - - 0.0% - -
Manufacture of automotive and mobility components CCM 3.18 318 317 50.0% E E N/EL N/EL N/EL N/EL - - - - - - - 64.6% - -
Manufacture of rail rolling stock constituents CCM 3.19 261 0.0% E E N/EL N/EL N/EL N/EL - - - - - - - 0.0% - -
CapEx of Taxonomy-eligible but not environmentally sustainable
activities (not Taxonomy-aligned activities) (A.2) 611 037 96.0% 96.0% 0% - - - - - - - - - - - 99.1% - -
A. CapEx of Taxonomy-eligible activities (A.1+A.2) 611 037 96.0% 96.0% 0% - - - - -
- - - - - - 99.1% - -
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
CapEx of Taxonomy non-eligible activities 25 434 4.0%
TOTAL 636 470 100.0%
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SUSTAINABILITY STATEMENTS | ENVIRONMENTSUSTAINABILITY STATEMENTS | ENVIRONMENT
Taxonomy-aligned OpEx
Substantial Contribution Criteria DNSH criteria (“Does Not Significantly Harm”)
Economic Activities (1)
Code
(2)
OpEx 2024
(tNOK) (3)
Proportion
of OpEx,
year 2024
(%)(4)
Climate
Change
Mitigation
(5)
Climate
Change
Adaptation
(6)
Water
(7)
Pollution
(8)
Circular
Economy
(9)
Biodiversity
(10)
Climate
Change
Mitigation (
11)
Climate
Change
Adaptation
(12)
Water
(13)
Pollution
(14)
Circular
Economy
(15)
Biodiversity
(16)
Minimum
Safeguards
(17)
Proportion of
Taxonomy-
aligned or
-eligible
OpEx,
2023 (18)
Category
enabling
activity
(E) (19)
Category
transitional
activity
(T) (20)
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Manufacture of equipment for the production and use of hydrogen CCM 3.2 - 0% Y N N/EL N/EL N/EL N/EL n.a N Y N N N N 0% E
Manufacture of low carbon technologies for transport CCM 3.3 - 0% Y N N/EL N/EL N/EL N/EL n.a N Y N N N N 0% E
Manufacture of batteries CCM 3.4 - 0% Y N/EL N/EL N/EL N/EL N/EL n.a N Y N N N N 0% E
Manufacture of other low carbon technologies CCM 3.6 - 0% N N N/EL N/EL N/EL N/EL n.a N Y N N N N 0% E
Manufacture of automotive and mobility components CCM 3.18 - 0% Y N N/EL N/EL N/EL N/EL n.a N Y N N N N 0% E
Manufacture of rail rolling stock constituents CCM 3.19 - 0% Y N N/EL N/EL N/EL N/EL n.a N Y N N N N 0% E
OpEx of environmentally sustainable activities (Taxonomy-aligned) (A.1) - 0% 0% 0% - - - - n.a N Y N N N N 0% E -
Of which enabling - 0% 0% 0% - - - - n.a N Y N N N N 0% E -
Of which transitional - 0% - - - - - - - - - - - - - - - -
A.2. Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
Manufacture of equipment for the production and use of hydrogen CCM 3.2 13 192 15.4% E E N/EL N/EL N/EL N/EL - - - - - - - 8.6% - -
Manufacture of low carbon technologies for transport CCM 3.3 - 0.0% E E N/EL N/EL N/EL N/EL - - - - - - - 0.0% - -
Manufacture of batteries CCM 3.4 13 602 15.9% E N/EL N/EL N/EL N/EL N/EL - - - - - - - 2.1% - -
Manufacture of other low carbon technologies CCM 3.6 1 676 2.0% E E N/EL N/EL N/EL N/EL - - - - - - - 6.0% - -
Manufacture of automotive and mobility components CCM 3.18 55 384 64.8% E E N/EL N/EL N/EL N/EL - - - - - - - 82.5% - -
Manufacture of rail rolling stock constituents CCM 3.19 282 0.3% E E N/EL N/EL N/EL N/EL - - - - - - - 0.0% - -
OpEx of Taxonomy-eligible but not environmentally sustainable
activities (not Taxonomy-aligned activities) (A.2) 84 137 98.4% 98.4% 0% - - - - - - - - - - - 99.2% - -
A. OpEx of Taxonomy-eligible activities (A.1+A.2) 84 137 98.4% 98.4% 0% - - - - - -
- - - - - 99.2% - -
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
OpEx of Taxonomy non-eligible activities 1 346 1.6%
TOTAL 85 483 100.0%
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Nuclear energy related activities
1. The undertaking carries out, funds or has exposures to research, development,
demonstration and deployment of innovative electricity generation facilities that
produce energy from nuclear processes with minimal waste from the fuel cycle.
NO
2. The undertaking carries out, funds or has exposures to construction and safe operation
of new nuclear installations to produce electricity or process heat, including for the
purposes of district heating or industrial processes such as hydrogen production,
as well as their safety upgrades, using best available technologies.
NO
3. The undertaking carries out, funds or has exposures to construction and safe operation
of new nuclear installations to produce electricity or process heat, including for the
purposes of district heating or industrial processes such as hydrogen production,
as well as their safety upgrades, using best available technologies.
NO
Fossil gas related activities
4. The undertaking carries out, funds or has exposures to construction or operation of
electricity generation facilities that produce electricity using fossil gaseous fuels.
NO
5. The undertaking carries out, funds or has exposures to construction, refurbishment, and
operation of combined heat/cool and power generation facilities using fossil gaseous fuels.
NO
6. The undertaking carries out, funds or has exposures to construction, refurbishment and
operation of heat generation facilities that produce heat/cool using fossil gaseous fuels.
NO
Taxonomy-eligible activities
Hexagon Purus has identified taxonomy-eligible
activities by screening the economic activities in
the Climate Delegated Act, the Complementary
Climate Delegated Act, the Environmental
Delegated Act, and the amendments to the
Climate Delegated Act. In total six activities in the
Climate Delegated Act have been identified as
eligible for Hexagon Purus:
• 3.2 Manufacture of equipment for the produc-
tion and use of hydrogen
• 3.3 Manufacture of low carbon technologies for
transport
• 3.4 Manufacture of batteries
• 3.6 Manufacture of other low carbon
technologies
• 3.18 Manufacture of automotive and mobility
components
• 3.19 Manufacture of rail rolling stock
constituents
Taxonomy-aligned activities
For an economic activity to qualify as a sustaina-
ble economic activity (taxonomy-aligned) certain
requirements must be met. The activity must:
• Substantially contribute to one or more of
the six environmental objectives (Climate
change mitigation; climate change adaptation;
water; pollution; circular economy; and/or
biodiversity)
• Not do any significant harm (DNSH) to the
other five objectives
• Comply with minimum safeguards covering
social and governance standards
• Comply with the technical screening criteria
(TSC) for the environmental objectives
Taxonomy-alignment of Hexagon Purus’ eligible
activities has been assessed against Annex I of
the Climate Delegated Act. The technical screen-
ing criteria has been assessed per activity, while
the minimum safeguards have been assessed on
Group level.
Substantial contribution
Climate change mitigation
Hexagon Purus has assessed whether any of our
taxonomy-eligible activities fulfil the substantial
contribution criteria to climate change mitiga-
tion. While climate change adaptation could be
applicable for activity 3.2, 3.3, 3.4, and 3.6, it is
not applicable for activity 3.18 and 3.19. We have
therefore not assessed the substantial contri-
bution criteria for other environmental targets,
including climate change adaptation.
For activity 3.2 Manufacture of equipment for the
production and use of hydrogen, the production
of the hydrogen distribution modules, hydrogen
ground storage solutions, and hydrogen refuelers
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SUSTAINABILITY STATEMENTS | ENVIRONMENTSUSTAINABILITY STATEMENTS | ENVIRONMENT
have been included. The relevant criteria for
substantial contribution for activity 3.2 is that the
economic activity manufactures equipment for
the use of hydrogen. Our facilities in Weeze and
Kassel manufacture equipment for the produc-
tion and use of hydrogen.
For activity 3.3 Manufacture of low carbon tech-
nologies for transport, the upgrading of water
transport vessels and revenue related to the
maritime business of Hexagon Purus has been
included. The relevant criteria for substantial
contribution for activity 3.3 depends on the type
of vessel. As such future alignment must be
assessed per vessel.
For activity 3.4 Manufacture of batteries, the
assembly of battery packs has been included.
The relevant criteria for substantial contribution
for activity 3.4 is that the economic activity man-
ufactures battery packs that result in substantial
GHG emission reductions in transport, stationary
and off-grid energy storage and other industrial
applications. This activity is primarily performed
in the Kelowna facility.
For activity 3.6 Manufacture of other low carbon
technologies, the manufacturing of industrial
gas distribution and ground storage solutions
have been included. While our industrial gas and
ground storage solutions are currently used for
a variety of gases, including hydrogen, the tech-
nology supports activities aimed at substantial
GHG emission reductions in several sectors. As
such future alignment must be assessed per
customer’s application. The relevant criteria for
substantial contribution for activity 3.6 is that the
economic activity manufactures technologies
aimed at and demonstrate substantial life-cycle
GHG emission savings compared to the best
performing alternative technology/product/
solution available on the market, using quantified
life-cycle GHG emission savings verified by and
independent third-party. We have yet to perform
a life-cycle analysis demonstrating substantial
life-cycle GHG emission savings compared to
best alternative technologies. This activity is
primarily performed in Weeze.
For activity 3.18 Manufacture of automotive and
mobility components, the manufacturing of the
type 4-cylinders designated for vehicles and
vehicle integration facility for battery-electric
heavy-duty trucks have been included. The
relevant criteria for substantial contribution for
activity 3.18 is that the manufacturing of compo-
nents is essential for delivering and improving
the environmental performance of various vehi-
cles where tailpipe CO
2
emissions of the vehicles
are zero. This activity is primarily performed in
Dallas, Kassel, Shijiazhuang, and Westminster.
For activity 3.19 Manufacture of rolling stock
constituents, the manufacturing of products,
equipment, and systems related to rail constit-
uents has been included. The relevant criteria
for substantial contribution for activity 3.19 is
that the manufacturing of products, equipment,
and systems are essential to the environmental
performance, operation, and functioning over the
lifetime of trains, passenger coaches, and wagons
where tailpipe CO
2
emissions are zero. This activ-
ity is primarily performed in Kassel, Weeze, and
Westminster.
Do no significant harm
Climate change adaptation
We have assessed and documented how our
assets are resilient toward various current and
future chronic and acute climate hazards for all
operational sites apart from Ålesund, Dallas,
and Shijiazhuang, see Climate scenario impacts
(page 69-72). We have yet to conclude that
our assets are resilient and able to withstand
projected climate changes during the assets’
lifetime, complying with Criteria I (c) in Appendix
A to Annex I of the Climate Delegated Act.
Sustainable use and protection of
water and marine resources
We have assessed whether our activities lead to
environmental degradation risks related to pre-
serving water quality and avoiding water stress.
Our current operations on our current locations
require insignificant water use relative to the
identified water quality and water stress, using
both a 2030 and 2050 scenario. For operational
activities that require some water usage, we rely
on closed-loop water systems.
Transition to a circular economy
All our economic activities assess the availability
of and, where feasible and applicable, adopt
techniques that support
a. design for high durability, recyclability, easy
disassembly and adaptability of products
manufactured
b. waste management prioritizing recycling
over disposal in the manufacturing process
c. For a) reuse and use of secondary raw
materials, and re-used components in
products manufactured and d) information
on and traceability of substances of concern
throughout the life-cycle of the manufac-
tured products we are yet to assess and/or
adopt techniques that support the above.
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SUSTAINABILITY STATEMENTS | ENVIRONMENTSUSTAINABILITY STATEMENTS | ENVIRONMENT
Pollution prevention and control
While we are obligated to follow all regulations
listed in Appendix C to Annex I of the Climate
Delegated Act, we are currently compiling the
relevant documentation to ensure that potential
pollution impacts are avoided, mitigated, and
addressed appropriately, and that pollution
requirements are integrated into our envi-
ronmental permit conditions in line with the
regulations listed in Appendix C to Annex I of the
Climate Delegated Act. As such we cannot con-
clude that we do no significant harm for pollution
prevention and control.
Protection and restoration of bio-
diversity and ecosystems
Our facilities in Kassel, Kelowna, Weeze, and
Ålesund are located within 50-kilometer prox-
imity of biodiversity-sensitive areas (including
the Natura 2000 network of protected areas,
UNESCO World Heritage sites and Key
Biodiversity Areas, as well as other known
protected areas). With these areas in the prox-
imity of our operations, we are yet to conclude
that our relative operational footprint and its
impact requires us to implement any mitigation
procedures.
Minimum safeguards
Our Human Rights and Working Conditions
Policy sets out our commitment to respect
human rights. The policy lives up to the
UN Guiding Principles on Business and
Human Rights, and the OECD Guidelines for
Multinational Enterprises, including the princi-
ples in the Declaration of the International Labor
Organization on Fundamental Principles and
Rights at Work (ILO) and the International Bill of
Human Rights throughout our own operations
and in our supply chain.
We conducted our first human rights risk
screening in 2024, in line with the Norwegian
Transparency Act and using the aforementioned
OECD Guidelines, and identified that we are
exposed to salient human rights issues in our
supply chain.
We will explore our identified human rights risks
and further operationalize our supply chain due
diligence processes in 2025. We can therefore
not conclude that we are compliant with the
minimum social safeguards as of 2024.
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SUSTAINABILITY STATEMENTS | ENVIRONMENTSUSTAINABILITY STATEMENTS | ENVIRONMENT
ESRS E5 | Resource use and circular economy
IRO OVERVIEW
SUBTOPIC IRO VALUE CHAIN DESCRIPTION IRO DEVELOPMENT
Resource inflows, including resource use
Resource-intensive materials
and components
Negative impact Upstream Our products and solutions require material and components causing environmental burden by using energy and natural
and industrial resources. Carbon fiber, steel, aluminum, and batteries are all crucial materials and components for our
business, and are all energy- and resource-intensive.
Increase – medium timeframe
Increase – long-term timeframe
Use of virgin materials Negative impact Own operations Use of recycled materials is not yet feasible due to quality constraints. None of our materials and components are currently
from recycled sources, which contributes to resource use and depletion.
Increase – medium timeframe
Increase – long-term timeframe
Material efficiency in operations Negative impact Own operations The material efficiency in our production processes has a direct effect and impact on resource use. Increase – medium timeframe
Increase – long-term timeframe
Lack of circularity measures and design Risk Own operations Very few feasible solutions exist today to properly recycle composite materials and batteries, which makes designing and
implementing circularity measures very difficult. Lack of circularity measures and design may make our products less
favorable.
Increase – medium timeframe
Stable – long-term timeframe
Resource outflows related to products and services
Lack of circularity measures and design Negative impact Downstream Composite materials and batteries are very difficult to recycle, especially end-of-life products. Treatment often involves
energy-intensive and/or chemical processes.
Increase – medium timeframe
Increase – long-term timeframe
Resource-efficient products Positive impact Downstream Our Type 4 cylinders are lighter than alternatives, thus providing better energy efficiency. Increase – medium timeframe
Increase – long-term timeframe
Waste
Waste handling requiring
energy and resources
Own operations Own operations Waste generated from our production activities are incinerated, chemically or physically treated, sent to landfill, or recycled
(when possible). These waste disposal activities require energy and resources, leading to environmental impacts.
Increase – medium timeframe
Increase – long-term timeframe
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SUSTAINABILITY STATEMENTS | ENVIRONMENTSUSTAINABILITY STATEMENTS | ENVIRONMENT
Hexagon Purus’ cylinders, hydrogen storage and
distribution systems, and fuel cell and battery
electric systems are key technology enablers in
the transition towards zero-emission mobility.
We also acknowledge that our products require
materials and components with substantial
embedded emissions and environmental
impact, and the challenge of treating end-of-life
products given the feasible solutions today.
We are responsible for the environmental burden
associated with our activities throughout our
value chain. We all have a role to play in under-
standing and minimizing impacts by reducing
material waste and encouraging circularity in our
entire value chain. This would rely on our con-
tinuous operational improvement, engineering
innovation, and close collaborations with key
suppliers and customers.
A screening of our assets and activities at business
unit level was conducted as part of the identifica-
tion of our impacts, risks and opportunities related
to resource use and circular economy, utilizing the
knowledge and experience from selective internal
representatives and the feedback from the stake-
holder interviews. Direct consultation with affected
communities have not been conducted.
Our approach
Guided by our EHS policy, we are committed to
minimizing resource use for our products and
solutions where feasible in our own operations.
The production of the composite material, metal
parts and components required for our Type 4
cylinders and battery systems is both resource-
and energy-intensive. When our products reach
end-of-life, the nature of materials used, such as
composite material and substances contained,
makes it difficult to recycle or dispose in an
environmentally friendly and efficient manner. This
means responsible and effective design and use of
materials and components in the manufacturing
activities is crucial to minimizing our environmental
impact as we continue to grow our business.
Resource inflow
We are still at the early stage of integrating circu-
lar design in our product development. For our
Type 4 cylinders, we are increasingly working on
using material with higher mechanical specifi-
cations, combined with experience on exploiting
higher material utilization. This leads to reduced
material consumption, processing time, product
weight and waste. Currently none of our materi-
als are from secondary (recycled) sources. We try
to source our materials with a focus on lowering
the environmental footprint where possible,
although some material groups have limited
Hydrogen and Mobility Infrastructure
INFLOW OUTFLOW
Battery and Vehicle Integration
Hydrogen
storage systems
Distribution
modules
Hydrogen
storage cylinders
Plastics
Carbon
fiber
Resin
Steel
Aluminium
Batteries
Copper
Electronic
components
Battery
packs
Truck
assembly
Auxilliary/
accessory drive
Power
distribution
Waste from
production
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SUSTAINABILITY STATEMENTS | ENVIRONMENTSUSTAINABILITY STATEMENTS | ENVIRONMENT
possibilities for alternatives. At the design and
engineering stage, the data sampled during
testing and the use of Finite Element Analysis
model response allow us to achieve more optimal
safety design with more efficient material usage.
For our battery packs, we are identifying
opportunities to eliminate existing parts while
maintaining functionality through our design.
We are also investigating pack remanufacturing
solutions in collaboration with a third-party.
For our battery systems, we strive to utilize mate-
rials with high recyclability, such as aluminum
and copper, where ever possible. As our product
designs mature and stabilize, we will be looking
into removing product weight. In addition, we
are also looking into localized supply as much as
feasible for our entire supply chain, including our
battery cells with our Panasonic agreement. For our
battery packs and systems, the focus has been on
engineering and designing our products so that
they will last the entire life of our target application.
Resource outflow - product
Our products and solutions do not generate waste
during the use-stage. However, the handling of
our end-of-life products is technically challenging
due to the material types and compositions. While
we are exploring better end-of-life treatment
solutions, we also work to identify ways of enabling
extended use of our products.
Our Type 4 high-pressure cylinders are light and
have high durability. A typical lifetime for our
cylinders is at least 15 years or more, depending
on the application and standards. Development
of integrated sensors will allow us to have full
track of the usage and handling of the cylinders
during their first life. All cylinders that have been
used within the specifications can be re-qualified
for lower pressure levels for recommissioning in
new application with an approved history and
specified lifespan. This can be repeated until
maximum pressure levels are too low for effi-
cient use, potentially giving a cylinder multiple
decades of extended life.
Cylinders reaching end-of-life after repurposing
can be recycled through qualified state-of-
the-art technologies. Once these technologies
pass the required tests in the coming years, the
regained carbon fiber material is envisaged to be
reused as new secondary structural parts, which
could be used in our storage and distribution
system when qualified.
Resource outflow - waste
Process optimization is one of the keys to
reducing waste generated from manufacturing
activities. Improved production processes will
elevate material efficiency and increase precision
on waste monitoring, allowing a more precise
assessment to identify areas of improvement.
Materials such as carbon fiber, metal, resin, and
plastic are significant contributors to the total
waste generated from our production, in addition
to general waste from our employee activities.
All our production sites identify opportunities
to conserve natural resources and reduce our
environmental footprint by prioritizing directing
waste to recycle where possible. We also have
a particular focus on hazardous waste, which
requires specialized contractors for safe disposal.
We adhere to any local or national environmental
laws and regulations and expect that our special-
ized waste handling contractors do the same.
In North America we work with a specialized
company to recycle scrapped composites mate-
rials. In Europe our scrap cylinders are sent to a
recycler.
Battery packs and our electric powertrain com-
ponents can be recycled at end of life. We will
be looking into second life applications in the
upcoming years to prolong the usage phase of
our products before recycling.
Our actions
Actions this year
• Our battery systems and vehicle integration
operations have designed returnable packag-
ing to ship our battery packs from Kelowna to
Dallas, commencing in 2025.
Planned actions
• We plan to install a mill baler in our Kelowna
facility for recyclable cardboard package
to minimize waste volume and outgoing
transportation.
• We plan to map out waste hotspots in our
facilities, making sure that we direct waste
reduction initiatives to materials with the most
environmental and/or financial impact
Targets
Understanding our material flows and waste
profiles is fundamental for establishing actionable
and measurable targets in relation to circularity
and waste minimization. We plan to focus on com-
pleting material and waste inventory and analysis
for 2024 - 2025, which will serve as a foundation for
us to set meaningful targets on resource use and
circular economy in the future. This aligns with a
key sustainability priority for 2025, where meas-
uring waste from production will give us insights
into how we can save costs while simultaneously
reduce our environmental footprint.
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ESRS E55 RESOURCE OUTFLOWS
Waste type Total Unit
Total waste generated 1 605.94 tonne
Total non-hazardous waste diverted from disposal 1 193.88 tonne
Non-hazardous waste diverted from disposal due to preparation for reuse - tonne
Non-hazardous waste diverted from disposal due to recycling 1 193.88 tonne
Non-hazardous waste diverted from disposal due to other recovery options - tonne
Total hazardous waste diverted from disposal 0.37 tonne
Hazardous waste diverted from disposal due to preparation for reuse - tonne
Hazardous waste diverted from disposal due to recycling 0.37 tonne
Hazardous waste diverted from disposal due to other recovery options - tonne
Total non-hazardous waste directed to disposal 324.44 tonne
Non-hazardous waste directed to disposal by incineration 166.12 tonne
Non-hazardous waste directed to disposal by landfill 158.32 tonne
Non-hazardous waste directed to disposal by other disposal operations - tonne
Total hazardous waste directed to disposal 87.25 tonne
Hazardous waste directed to disposal by incineration 7.08 tonne
Hazardous waste directed to disposal by landfill - tonne
Hazardous waste directed to disposal by other disposal operations 80.17 tonne
Total amount of non-recycled waste 411.69 tonne
Percentage of non-recycled waste 25.6% %
For non-hazardous waste, the main materials present in the waste are general metal, liners, plastic, and wood. For hazardous waste, the main
materials present in the waste are abrasives, resin, and solvents.
§ - Accounting policies
Waste is handled in accordance with national
legislations, and will therefore differ between
the various entities in the Group. We use a
conservative approach when reporting treat-
ment types, and always assume that waste is
directed to landfill unless otherwise specified
from the waste management companies.
Estimates
Where figures from local entities are reported
in e.g. cubic feet, gallons, etc., they are con-
verted to tonnes using suitable conversion
factors.
Level of measurement uncertainty: Low
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Social
ESRS S1 | Own Workforce
86
Working conditions
88
Equal treatment and opportunities for all
90
ESRS S2 | Workers in the value chain
97
Working conditions
98
Human rights due diligence
100
ESRS S4 | Consumers and end-users
102
Information-related impacts for consumers and/or end-users
103
Personal safety of consumers and end-users
105
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ESRS S1 | Own Workforce
IRO OVERVIEW
SUBTOPIC IRO VALUE CHAIN DESCRIPTION IRO DEVELOPMENT
Working conditions
Working time and work-life balance Negative impact Own operations The Company is in a scale-up phase. We are growing fast and establishing processes and routines along the way. This can
be a demanding period with regards to working time, where people might need to work many hours or at inconvenient
times. This can have a negative impact on people’s well-being, safety, and productivity.
Stable – medium timeframe
Stable – long-term timeframe
Health and safety Negative impact Own operations Our employees are exposed to hazards in our production environment, such as metal works and work in heights. This may
lead to risk of injury or damage to health of our workers. Our health and safety management is put in place to mitigate risks.
Stable – medium timeframe
Stable – long-term timeframe
Secure employment Positive impact Own operations Some of our facilities are in rural small communities, where we are among the larger employers in the area. Increase – medium timeframe
Increase – long-term timeframe
Adequate wages Positive impact Own operations The Company competes for competence and talents on all our sites. This competition affects the terms and conditions for
our employees positively.
Increase – medium timeframe
Increase – long-term timeframe
Freedom of association the existence of
works councils and the information consul-
tation and participation rights of workers
Positive impact Own operations The Company impacts its interaction with its employees and works council. Stable – medium timeframe
Increase – long-term timeframe
Equal treatment and opportunities for all
Training and skills development Positive impact Own operations We are a competence-based company, making sure that our people are continuously developing their skills. This
contributes to the quality of our employees and thus our products and solutions.
Increase – medium timeframe
Increase – long-term timeframe
Diversity Positive impact Own operations We have an impact on all employees working in our company. We also influence the society by actively recruiting,
developing and retaining a diverse workforce. Our policies and practices impact equal treatment and opportunities for all.
Increase – medium timeframe
Increase – long-term timeframe
Recruitment, development and retention Opportunity Own operations Employee safety, development and well-being are crucial factors for our success. We see talent attraction, development, and
retention as opportunities and the foundation to enable successful scale up and delivery on commitments to customers.
Increase – medium timeframe
Increase – long-term timeframe
Recruitment, development and retention Risk Own operations Our value creation depends on our workforce, its competence, commitment, and output. We need to be able to attract,
develop and retain the competence needed to deliver on our ambitious growth plans. There is risk related to our ability to
attract certain engineering competence as well as enough capacity and competence for production
Increase – medium timeframe
Increase – long-term timeframe
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Our people are the driving force behind our success and our value
creation relies on them and their competence, behaviors and
commitment. We are fortunate to have a global team of highly skilled
and dedicated employees across our sites. We remain committed to
fostering a safe environment, both physically and psychologically,
that allows people to be at their best.
Combining substantial growth in number of
employees and facilities the past years and at
the same time establishing new processes and
procedures, requires significant efforts from our
employees. While extensive growth can be excit-
ing, we also acknowledge the related challenges
like unpredictability, high workload, and steep
learning curves. As a responsible employer, we
are also aware that potential negative impacts
may be systematically present given the nature
of our own operations. We are working hard to
continue building robust processes and further
develop new or update policies to address our
impacts, risks and opportunities.
We believe that shaping our workplace and
further building our culture is best done in
collaboration, across sites and countries, with
leaders and employees, guided by our values and
desired behaviors.
Work for each
other’s success
• We invest in each other’s success, working together towards a common
purpose and celebrating our wins as a team
Take
responsibility
• We take initiative, proactively seek solutions and follow through
• We champion safety and quality, caring for people and the planet
Build trust and
be inclusive
• We act with integrity and transparency
• We embrace diversity of individuals, ideas, and perspectives
Embrace challenges
and failures
• We adapt to change and embrace challenges with a positive mindset
• We learn from failures and use them as opportunities for growth
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Working conditions
Our approach
The safety of our people is our highest priority.
This is especially important for employees who
are exposed to hazards in our production envi-
ronment, such as metal processing and work at
height. Our health and safety standards aim to
prevent hazards and incidents for all our employ-
ees and parties working on behalf of Hexagon
Purus, and for everyone inside our premises.
Everyone working for or representing Hexagon
Purus must follow our policy on Environment,
Health and Safety (EHS).
Our senior management team has the overall
responsibility for safety and sets the tone for the
rest of the company. The role modelling of top
management is essential to lead, promote, and
develop a culture where everyone works towards
a zero-injury work environment. This is opera-
tionalized by every employee and guided by our
EHS, Operations, and People & Culture teams.
All sites follow local EHS regulations and stand-
ards, where we have had site specific guidelines.
Our goal is to continue implementing global
health and safety management systems in
accordance with ISO 45001, and we have certified
our locations in Kassel and Weeze. To mitigate
any fear of retribution when reporting, we have
a conscious approach to implementing an
open reporting culture and practice. To align
our priorities across our sites we have launched
common Golden Safety Rules. We are encourag-
ing reporting of both near misses and incidents.
We deliberately avoid having targets for incidents
and near misses, although reduction is a long-
term goal.
Hexagon Purus requires reporting of any
work-related hazards and unsafe situations. It is
the duty of all employees and business partners
to report health and safety incidents, concerns,
violations, or potential violations of any appli-
cable law or Hexagon Purus’ policies and/or
procedures.
Our Whistleblowing Policies support the pro-
tection of the whistleblower. The local People &
Culture teams track and monitor reported con-
cerns at each site, the numbers are consolidated
annually at corporate level. With most employees
based in Germany, the majority of our employ-
ees are supported by a works council, which
represent an additional channel for reporting
concerns, helping to ensure the effectiveness
of our communication pathways. There is also
established other ways to report concerns which
also includes an external whistleblowing channel
that complies with national and international
standards and is monitored and managed by
an external party. This external whistleblowing
channel is also open to any external grievances.
Standard approach for handling concerns is
to seek external legal advice locally, unless it is
obvious how to address the concern. Each case
is unique and complex, requiring individual
process, assessment and remedy. If the company
has caused or contributed to a significant
negative impact on our workforce, it is handled
according to relevant legislation. For more
information, see chapter ESRS G1-1 Protection of
whistleblowers.
Our commitment to human rights and decent
working conditions for our own workforce can
be found in our Human Rights and Working
Conditions Policy. This policy also covers sup-
pliers, business partners, and communities
affected by our business activities. Here we state,
among others, our aspirations for working hours,
benefits, and wages, employee development,
and freedom of association and collective
bargaining.
We actively support employees’ rights to rep-
resentation and participation in decision-making
processes. In 2024, employees in Weeze ini-
tiated the formation of a works council, and
we provided support throughout the process.
With an already established works council in
Kassel, we have seen the benefits of structured
collaboration. We already built a similar working
relationship with the newly formed works
council in Weeze and will continue to improve
the working conditions together with the works
councils at both sites. Employees are raising
concerns through the works councils, and the
works councils liaise with the management on a
regular basis. The works councils meets with our
People and Culture team on a weekly basis and
the management team monthly.
Listening to our employees is a key priority. In
addition to having established works councils,
our ambition is to conduct the Great Place to
Work (GPTW) survey annually, to gather struc-
tured feedback and measure progress within
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organizational development. Our most recent
survey took place in November 2023 where we
had a participation rate of 77%; however, due to
operational demands, we did not conduct the
survey in 2024. We remained committed to gath-
ering employee feedback by organizing GPTW
focus groups at all manufacturing sites, providing
an open platform for all employees to participate.
Our employees are also encouraged to voice
their opinions through dialogue with their
leaders, and forums such as Q&A sessions in local
and global townhalls.
Also contributing to the working conditions
among our employees is our local presence.
Some of our facilities are in small communities,
where we are among the larger employers in the
area. We recognize the importance of giving back
to the communities where our employees work
and live, which we believe contributes positively
to our employees’ mental well-being. Some
examples of initiatives we are doing: organizing
blood-donations on site, and organizing group
volunteering activities such as river clean-ups,
assisting local seniors with winter garden prepa-
rations and coordinating food donations.
Hexagon Purus pays all employees and workers
at least the minimum legal wage and aims to
exceed this. In geographies where minimum
legal wage has not been set through legislation
or binding collective agreements, we commit to
paying living wage. Our compensation approach
follows our global policy and local regulations.
compensation policy. In 2024, we completed
annual salary reviews for positions at our main
sites, based on levels, salary groups and market
conditions.
Our actions
Actions this year
• Reduction of full-time working hours in Weeze
from 40 to 37.5 hours for non-exempt employ-
ees to further improve working conditions and
align with local industry standards.
• In 2024, employees in Weeze initiated the
formation of a works council, and we provided
support throughout the process.
• Golden Safety Rules introduced globally at all
sites, to improve the safety of our employees
and ensure a unified approach to safety. These
rules were communicated through multiple
channels, including digital screens, our internal
communication platform, and other targeted
outreach initiatives.
• Implemented a global safety alert mechanism
to share incidents and lessons learned across
all locations
• We established and implemented a global
process for health and safety reporting to
ensure consistent tracking and better risk
management across all sites, in line with our
commitment to a safe work environment.
• Certified according to ISO 45001 in Kassel and
Weeze
• We introduced a company pension scheme
(Betriebliche Krankenversicherung) and intro-
duced “The Allianz Langzeitkonto” in Weeze,
allowing employees to accumulate overtime
hours for additional vacation time—enhancing
flexibility and improving working conditions.
Planned actions
• In 2025, we will continue to strengthen our
safety culture and leadership through senior
leader safety walks and integrating health and
safety topics in leadership meetings
• From 2025, initiate regular review and anal-
ysis of near misses and unsafe conditions or
behaviors
• Implement a learning management system
(Learn365), to expand and improve tracking
of health and safety training from 2025 and
onwards
• Further expand training and development
of leaders in 2025, e.g. feedback training - to
continue improve the interaction between
employees and leaders and continue strength-
ening our working environment in general.
• We will continue to monitor the perception of
our employees through Great Place to Work
survey (or similar) to understand the effective-
ness of our initiatives
Targets
The introduction of Golden Safety Rules, and
our ISO 45001 certifications in Kassel and Weeze
mark our continued efforts on health and safety.
We acknowledge that fostering health and safety
awareness must be a daily practice and a gradual
cultural shift requiring long-term dedication.
For 2025, the target is to increase the number
of reported near-misses, to make sure that we
further raise awareness and build a positive and
open safety culture in the organization.
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Equal treatment and opportunities for all
Our approach
As a competence-based organization, we see
training and skills development as integral to our
success. The overarching goal of our People and
Culture department is to Attract, Develop, and
Retain the talent and expertise required to deliver
on the ambitious Hexagon Purus business plan.
In order to get direct feedback, suggestions and
prioritize actions to address material impacts, we
utilize the Great Place to Work focus groups at
our local sites (see more in previous chapter).
In 2024, we made important progress in
expanding training opportunities for our
employees and laying the groundwork for
future development, by purchasing a learning
management system for the whole organization.
We have also continued utilizing our performance
management platform, Performance,
Development and Drive.
Diversity, Equity and Inclusion (DEI) is important
for Hexagon Purus, which we see as a key
part of the ESRS topic “equal treatment and
opportunities for all”. We are eager to increase
representation among underrepresented groups
and strengthen a culture of inclusion. We are
committed to fostering an environment where
our people can be their authentic selves, guided
by our values of Integrity and Drive.
For us, diverse organizations produce better
results and outcomes, and diversity includes
many factors in addition to gender, such as
age, social and cultural background, sexual
orientation, religion, nationality etc. We have an
impact on all employees working in our company.
We also influence society by actively recruiting,
developing and retaining a diverse workforce.
Our commitment to DEI is stated in our
Diversity, Equity, and Inclusion Policy and sets
clear expectations and requirements for all
Hexagon Purus personnel or workers whose
work is controlled by us. This has been put into
practice through various initiatives and processes
throughout 2024. Our DEI policy influences how
we attract, grow, and retain talent across our
organization.
Currently we do not have the desired gender
balance in our workforce, and will continue to
focus on increasing female representation in the
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whole organization. The competition for talent
is getting tougher and the demand for female
representation among manufacturing companies
is high.
Our actions
Actions this year
• We continued the learning management
system (LMS) pilot at our BVI sites and con-
ducted proof-of-concept testing to ensure it
meets the needs of all locations. Based on the
results, we have chosen this system for a global
rollout.
• To further enhance the positive impact on
our employees' development and retention,
we have improved onboarding processes and
strengthened internal communication chan-
nels, e.g. by introducing global town halls and
updated local intranet pages.
• The recruitment process has been enhanced,
with improvements in internal recruitment and
the adoption of an Applicant Tracking System
in Weeze
• We strengthened our focus on diversity in
recruitment, hired and onboarded several
women in new leadership positions, and
launched local inclusive initiatives like anti-bul-
lying and harassment training.
Planned actions
• We have a conscious approach to building our
culture – as this is a fundament for both deliv-
ering on our commitments to customers and
to develop and retain our people. To reinforce
the behaviors that we want our leaders to
encompass, we will continue with targeted
initiatives– such as ongoing internal communi-
cation initiatives and leadership development.
• Roll out our LMS to all remaining sites, and
re-launch a new and improved LMS – making
training and development more accessible to
our employees.
• Further improve our performance manage-
ment platform, Performance, Development
and Drive. For 2025 we aim to improve system
support and conduct more feedback training
for our leaders.
Targets
Learning and development is a key focus area
for us in 2025. To further enhance training and
development, we see the introduction of our LMS
as a key milestone. This will give us the ability to
track training hours per employee. Our goal is
that the majority of our employees globally have
utilized our LMS during 2025. We have not yet set
specific targets, as 2025 will be used to establish
our baseline.
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RESULTS
ESRS S16 CHARACTERISTICS OF THE UNDERTAKING'S EMPLOYEES
1) Employees by contract type and gender
Headcount Total Unit
Number of permanent employees 822 #
of these male 683 #
of these female 139 #
of these gender unspecified - #
Number of temporary employees 26 #
of these male 21 #
of these female 5 #
of these gender unspecified - #
2) Part-time and full-time employees per gender
Headcount Total Unit
Number of permanent employees 807 #
of these male 686 #
of these female 121 #
of these gender unspecified - #
Number of temporary employees 41 #
of these male 17 #
of these female 24 #
of these gender unspecified - #
Total number of employees per site 848 #
Hexagon Purus does not have any non-guaranteed hours employees in 2024, and as such this is not
applicable.
Turnover
Headcount Total Unit
Number of employees who have left the Company in 2024 100 #
Employee turnover rate 13 %
For headcount by country: Norway (25), Germany (582), Canada (102), US (86), China (53).
§ - Accounting policies
The numbers in this S1 chapter represent headcount as of December 31 2024. Our payroll systems at each
location serve as the primary source of information. The data has therefore been collected at the local level
and consolidated globally.
Our workforce is composed of a diverse range of professions, reflecting the complexity of our operations.
A significant portion of our employees work in production. Additionally, our workforce consist of functions
such as Engineering, R&D, Finance, People & Culture, Sales & Marketing, and IT.
When reporting data for S1 we generally do not use estimates, unless otherwise specified in the respective
reporting requirements.
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ESRS S17 CHARACTERISTICS OF NONEMPLOYEES IN THE UNDERTAKING'S OWN WORKFORCE
Non-employees
Headcount Total Unit
Number of non-employees 20 #
of these male 20 #
of these female - #
of these gender unspecified - #
ESRS S19 DIVERSITY METRICS
Headcount Company
Rank <30y 30y-50y >50y Total Unit
Executive Management - 2 3 5 #
of these male - 2 2 4 #
of these female - - 1 1 #
of these gender unspecified - - - - #
Directors (M5) and above - 38 14 52 #
of these male - 25 13 38 #
of these female - 13 1 14 #
of these gender unspecified - - - - #
Staff 205 418 168 791 #
of these male 161 352 147 660 #
of these female 44 65 21 130 #
of these gender unspecified - - - - #
Headcount
Rank Total Unit
Executive Management
of these male 80% %
of these female 20% %
of these gender unspecified 0% %
§ - Accounting policies
The majority of our non-employees are agency workers, brought in to provide extra capacity during busy
periods, and they are paid by their agencies. The numbers represent headcount as of December 31 2024.
Our local time recording systems serve as the primary source of information about our non-employees.
The data has been consolidated globally in preparation for this report.
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ESRS S110 ADEQUATE WAGES
Headcount Total Unit
Number of employees who are paid an adequate wage 848 #
Percentage of employees who are paid an adequate wage 100% #
The majority of our non-employees are agency workers. More than 90% of our non-employees are based
in Germany, where agencies must offer wages equal to those of our employees, regulated by law. In the
US and Canada, agencies are required to follow local labor laws and regulations. To further promote ethical
employment standards, we will start distributing our Supplier and Business Partner Code of Conduct to all
agencies we work with.
ESRS S111 SOCIAL PROTECTION
Headcount Total Unit
Number of employees covered by social protection 848 #
Percentage of employees covered by social protection 100% %
To our knowledge the non-employees are covered by social protection.
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ESRS S114 HEALTH AND SAFETY METRICS
Employees
Headcount Total Unit
Number of people covered by the H&S management system 848 #
Percentage of people covered by the H&S management system 100% %
No. of hours worked 1 216 462 #
Number of fatalities - #
Number of recordable work-related injuries 29 #
Rate of recordable work-related injuries (TRIF) 24 %
Number of recordable work-related ill health - #
Number of lost days 479 #
Non-employees
Headcount Total Unit
Number of people covered by the H&S management system 20 #
Percentage of people covered by the H&S management system 100% %
Number of hours worked 51 984 #
Number of fatalities - #
Number of recordable work-related injuries 1 #
Rate of recordable work-related injuries (TRIF) 26 %
Number of recordable work-related ill health - #
Number of lost days 3 #
§ - Accounting policies
When computing the rate of work-related injuries, the respective number of cases is divided by the number of
total hours worked by people in its own workforce and multiplied by 1 000 000. In the table above we are report-
ing recordable work-related injuries, meaning any injuries occurring when our employees are doing their work.
We are still working to improve the recording of the incidents of our non-employees.
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ESRS S115 WORKLIFE BALANCE METRICS
Family-related leave
Headcount Total Unit
Number of employees entitled to take family-related leave 848 #
of these male 704 #
of these female 144 #
of these gender unspecified - #
Percentage of employees entitled to take family-related leave 100% %
Number of entitled employees that took family-related leave 30 #
of these male 19 #
of these female 11 #
of these gender unspecified - #
Percentage of entitled employees that took family-related leave, male
3% %
Percentage of entitled employees that took family-related leave, female
8% %
Percentage of entitled employees that took family-related leave, gender unpsecified
0% %
ESRS S117 INCIDENTS, COMPLAINTS AND SEVERE HUMAN RIGHTS IMPACTS
Total Unit
Number of reported working environment related complaints,
such as allegations of discrimination and harassment 7 #
The total amount of fines, penalties, and compensation for damages 0 $
The list above is extensive. All cases have been investigated; action was taken where appropriate. There has
been 0 (zero) severe human rights incidents reported. The local People & Culture teams track and monitor
reported concerns at each site, the numbers are consolidated annually at corporate level.
§ - Accounting policies
Family-related leave includes maternity, paternity, and parental leave but excludes short-term absences
due to sick children. The data has been collected from local payroll and HR systems and consolidated at a
global level. No estimates were used in the preparation of this data.
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ESRS S2 | Workers in the value chain
IRO OVERVIEW
SUBTOPIC IRO VALUE CHAIN DESCRIPTION IRO DEVELOPMENT
Working conditions
Health and safety Negative impact Upstream Workers are exposed to a variety of risks such as heat, chemicals, and hazardous materials.
We have an impact through our Supplier and Business Partner Code of Conduct
Stable – medium timeframe
Increase – long-term timeframe
Forced and child labor Negative impact Upstream We have suppliers that are supplying products and solutions where materials such as cobalt and steel are integral.
This metal extraction might be happening in areas where there is high probability of forced and/or child labor.
Increase – medium timeframe
Increase – long-term timeframe
Availability of competence
for our suppliers
Risk Upstream We are currently primarily relying on single-source suppliers, where there is a risk that low availability of
sufficient competence can affect available volume or quality of parts and materials that we need, thus
affecting our ability to deliver products and solutions meeting customer demands and expectations.
Increase – medium timeframe
Increase – long-term timeframe
Acknowledging integrity and drive in our entire value chain is
essential to the impact we have in the transition to zero-emission
mobility. As a manufacturing company where raw materials
and components such as batteries and steel are integral to our
business, we are aware of the potential impact we might have
in our supply chain. This is why human and labor rights are an
important part of how we want to operate.
Compliance with our own standards and
applicable regulations is important to secure
the quality of our products and the future of
our business. We continuously work to protect
human and labor rights throughout our own
operations, among our business partners, and
our value chain, especially among our suppliers.
Hexagon Purus’ current approach to managing
our impact, risk and opportunities associated
with value chain workers is solely based on the
generic nature of manufacturing industries.
Given the long and complex supply chain of
our materials and components, we are still in
the early process of understanding the workers
in the value chain. Mapping the value chain
workers against the industries and geographies
and identifying potential environmental and
social risks that vulnerable groups, if any, may be
exposed to, would strengthen our future impact
management.
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Working conditions
Our approach
We have a responsibility to ensure the quality and
safety of our product and solutions throughout
the value chain. This responsibility begins with
the sourcing of materials and components used
in our product portfolio. We can only manufac-
ture products and solutions with the desired
quality if our suppliers are equipped with the
appropriate management systems, workforce,
and the same dedication to quality and safety
as we have. This is also why we work proactively
with our suppliers to collaborate on these topics.
Information about workers in the downstream
part of our value chain and how we work with
impacts, risks, and opportunities for this stake-
holder group can be found in the chapter ESRS
S4 Consumers and end-users (page 102).
Our expectations for our suppliers are described
in our Supplier and Business Partner Code of
Conduct (“Supplier CoC”). This Supplier CoC
sets out our approach to supplier due diligence,
and our expectations concerning business
ethics, human rights and working conditions,
occupational health and safety, environment, and
management systems for our suppliers and busi-
ness partners. The Supplier CoC also describes
our approach to managing non-compliance.
Formal procedures to communicate and monitor
the implementation of the Supplier CoC have not
yet been established in 2024.
The Code is supported by our Human Rights and
Working Conditions Policy, which emphasizes our
human rights policy commitments relevant to
our own workforce and the workers in our value
chain. The current Human Rights and Working
Conditions Policy refers to the Norwegian
Transparency Act, the International Covenant on
Economic, Social and Cultural Rights (ICESCR),
the International Covenant on Civil and Political
Rights of 1966 (ICCPR), and the ILO core con-
ventions. These policies, both in isolation and
in combination, address trafficking in human
beings, forced or compulsory labor, and child
labor. Not all elements from the United Nations
Guiding Principles on Business and Human
Rights (UNGPs) are included in the current policy.
As a part of our management system processes,
we perform on-site supplier audits with particular
attention to quality. Currently we do not yet have
a general process to engage proactively with
workers in the value chain, nor its legitimate
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representatives or credible proxies, focusing on
sustainability and EHS topics. As we gain more
information and knowledge from our suppliers
and value chain in the future, we also expect
these engagement processes, together with our
Supplier CoC and Human Rights and Working
Conditions Policy, to be further developed and/
or updated.
Workers in the value chain can use Hexagon
Purus’ external whistleblowing channel to raise
concerns or needs. This channel, managed
by an external party, is publicly accessible on
our website and open for external grievances.
Currently, the mechanisms cannot guarantee
users to use channels anonymously. Information
about the protection against retaliation of indi-
viduals who files an external grievance can be
found in the Business conduct chapter (page 111).
Through this channel and through this process,
we have not received any reports concerning
non-respect of the UNGP, the ILO conventions,
nor the OECD Guidelines for Multinational
Enterprises that involve value chain workers in
2024. Should we receive any such reports, our
frameworks and processes will be rigorously
assessed to ensure that any such incidents will
not occur again. With no reports of non-respect
we have not yet had a chance to review the
effectiveness of the channels, or assess whether
remedy provided can be effective.
For more information about our processes and
progress to address and engage with workers
in the value chain, we have elaborated our due
diligence practices concerning human rights in a
separate part of this chapter (page 100-101).
Our actions
Actions this year
• We launched our first human rights due dili-
gence report following the requirements of the
Norwegian Transparency Act, using an external
advisor to support us in the human rights due
diligence risk screening. This assessment pro-
vided a high-level understanding of potential
human rights risk in our upstream value chain
and own operations and informed our focused
areas for the next assessment in 2025 as well
as improvement. See Human Rights Due
Diligence on page 100-101 for more informa-
tion about the forementioned due diligence
process and findings.
• We updated our Supplier CoC to further
emphasize our commitment to human rights
and working conditions. This revision commu-
nicates higher expectations to our suppliers
and business partners, and aims to foster our
business relationships.
Planned actions
• Building on the updated Supplier CoC, we plan
to further harmonize our supplier audits in
2026, leveraging our internal quality, sustaina-
bility and EHS capabilities. This harmonization
aims to promote collaboration with our
upstream suppliers and increase both quality
and efficiency in our communication and
engagement with suppliers. This would help us
identify, mitigate or prevent potential impact
on human rights and social risk in the supply
chain. For this purpose, a supplier manage-
ment group with representatives from each
business unit and/or facility has been formed.
Targets
We plan to seek closer collaboration with suppliers
of our main materials and components. These
suppliers also represent materials and geogra-
phies where salient human rights issues can be
most prevalent.
This collaboration can be presented in various
ways. In 2025 we will incorporate sustainability
inquiries in supplier qualification processes and
self-assessments, perform remote or on-site
audit of selected suppliers with a particular focus
on sustainability topics including human rights.
Sustainability assessments will also be incorpo-
rated in our procurement activities. These activities
would allow us to engage directly and indirectly
with workers in our supply chain. Quantifiable
targets for engagement with workers in the value
chain have not yet been set in 2024. From 2025, we
will measure and monitor the number of environ-
mental and social due diligence on suppliers and
business partners. These due diligence activities
and engagement with value chain workers will
inform and guide us in establishing meaningful
and actionable targets going forward.
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Human rights due diligence
Understanding the risks and impacts on the
environment and human rights and decent
working conditions and where these lie in our
value chain is the preliminary action in the due
diligence system. The form of due diligence and
the level of review detail are determined based
on any known geographical and industry risks
associated with environmental and human rights
and decent working conditions, the saliency of
such risks, the scale of potential business impact,
and strategic importance of suppliers.
While Hexagon Purus is in the process of
establishing and systemizing its human rights
due diligence and management procedures,
we follow the OECD Due Diligence Guidance
for Responsible Business Conduct (“the
Guidance”). In accordance with the Guidance,
Hexagon Purus conducted in 2024 its first human
rights and working conditions due diligence to
identify and evaluate whether impacts or risks
to human rights and workers conditions exist
in the Hexagon Purus Group and in relation
to its supply chain and business partners. This
exercise will be performed annually to comply
with the Norwegian Transparency Act. For any
risks identified, we evaluate what actions could
be taken to mitigate such risks and assess any
residual risks. Going forward we will also assess
the necessity of environmental due diligence,
which follows the same methodology as human
rights and working conditions due diligence.
Communication of how our impacts are
addressed is found in this Annual Report and
in our Transparency Act Statement. We also
continuously work to address the potential risks
identified and comply with the following steps
from the Guidance:
1. Embedding responsible business conduct
into policies and management systems
Hexagon Purus’ Board of Directors is responsible
for ensuring that sustainability, including
human rights and decent working conditions,
is an integral part of Hexagon Purus’s
corporate governance process. The executive
management is responsible for establishing
and implementing policies and procedures in
line with the applicable standards and Hexagon
Purus’ commitment. Continuous involvement
and oversight of the Board of Directors and the
executive management strengthens Hexagon
Purus’ work with human rights in our own
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operations as well as in relation to our business
partners, particularly our supply chain.
2. Identifying and assessing adverse impacts
in operations, supply chains, and business
relationships
We conducted our first human rights due dili-
gence process during the first half of 2024, and
published a report prior to June 30, which is
in line with the reporting requirements of the
Norwegian Transparency Act. The supply chain
human rights risks were reviewed and evaluated
based on contextual information of the main
procurement streams, the regions or countries
from which key materials or components are
sourced, and the locations of our own facilities.
The forementioned geographies span across
continents as we operate a global business, so
do our value chains. Internationally recognized
human rights indices and databases were refer-
enced to perform the assessment.
Our high-level assessment indicated that the
main risks related to Hexagon Purus Group’s
supply chain lie in the procurement of batteries
and the purchase of steel.
3. Ceasing, preventing or mitigating adverse
impacts
Hexagon Purus strives to proactively collaborate
with business partners, suppliers, and communities
to ensure appropriate and proportional actions and
measures. In the absence of necessary effort taken
by our business partners or suppliers to mitigate
adverse impacts on human rights and decent
working conditions that was identified, we may reas
-
sess or consider ceasing the business relationships.
No actual adverse impact has been identified
or reported in 2024. A formalized process with
allocated resources and ownership will need to be
established to mitigate and prevent any potential
adverse impacts in the future.
Our battery supplier is a member of the
Responsible Minerals Initiative and is committed
to conducting human rights due diligence based
on the United Nations’ Guiding Principles on
Business and Human Rights and OECD Due
Diligence Guidance for Responsible Business
Conduct. Our supplier reports that it systemati-
cally addresses issues that have been identified
(none of these issues related to forced labour or
child/juvenile labour events in 2023). The key risks
related to the procurement of batteries are thus
related to sub-suppliers to our supplier. Hexagon
Purus is currently a small customer of the battery
supplier and thus has limited visibility and influ-
ence on such risks.
Steel parts and components are mainly procured
by our business unit in Germany from various
European companies. Some of our primary
suppliers are involved in the steel and metal
processing industries.
The contextual human rights and working con-
ditions due diligence performed in 2024 has not
identified anything that would indicate actual
adverse impacts in our supply chain. The risks
identified in 2024 will guide our focus towards our
focus on the battery and steel suppliers in 2025.
Tracking implementation and results
For each update of our compliance with the
Norwegian Transparency Act, we will publish
planned measures and actions to improve our
understanding of human rights and working
conditions impacts and risks and to ensure that
any adverse impacts, if identified, are dealt with
accordingly. Although mechanisms to track the
effectiveness of the measures and actions are yet
to be established, the implementation progress
and results of these measures will naturally be
reviewed and published as part of our Norwegian
Transparency Act Statement.
In 2024 the planned improvement measures and
actions include:
• Updating the Group's third-party risk man-
agement framework, including improving and
streamlining procurement management
• Dialogue with and audits of selected suppliers
• Implementing an adequate governance
structure and mapping of key risks related to
human rights and decent working conditions
for joint venture operations in China
• Raising human rights awareness of all employ-
ees through the internal learning management
system
• Review and revision of policies and procedures
related to human rights and decent working
conditions (to the extent deemed necessary)
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ESRS S4 | Consumers and end-users
IRO OVERVIEW
SUBTOPIC IRO VALUE CHAIN DESCRIPTION IRO DEVELOPMENT
Information-related impacts for consumers and/or end-users
Access to quality information Positive impact Downstream We are responsible for providing the necessary and correct information and relevant trainings to ensure that customers
choose the appropriate products or solution, and that the products are used safely as they are designed for.
Stable – medium timeframe
Stable – long-term timeframe
Personal safety of consumers and end-users
Health and safety Positive impact Downstream Hexagon Purus set product quality as a top priority, and by providing safe products to end-users, we ensure safe
operations for end-users
Stable – medium timeframe
Stable – long-term timeframe
Product safety risk for own
products and solutions
Risk Downstream If a major accident occurs, due to issues with our products and solutions, we can be financially liable for the damaged
caused. Any such accidents will also damage our reputation in the market.
Increase – medium timeframe
Increase – long-term timeframe
Product safety in the hydrogen industry Risk Downstream The hydrogen industry is rapidly evolving with many newcomers. If a major accident occurs within the industry, the public
might re-assess the safety when using products and solutions involving hydrogen.
Increase – medium timeframe
Increase – long-term timeframe
We acknowledge the inherent risk factors throughout the entire value
chain when operating with high-pressure cylinders, fuel storage systems,
and distribution systems for hydrogen, in addition to battery electric
vehicles. The quality and safety of our products and solutions are
essential to our business model and future growth.
Our customers trust our ability to provide safe
and reliable products. We must ensure that
when products leave our factory, we have done
everything we can to ensure the safety of all
stakeholders in the downstream part of our value
chain, minimizing the risks of safety incidents. We
sell business-to-business, but the end-users of
our products and solutions are vehicle and vessel
operators and, where relevant, passengers. All
our products and solutions are therefore tested
according to appropriate internal, local, national,
industrial, and international requirements and
standards before being shipped to the customer,
built into fuel systems, or installed on vehicles.
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Information-related impacts for
consumers and/or end-users
Our approach
The safety of people operating our products, such
as drivers, operators, passengers, and potential
bystanders is of the utmost importance for both
us and our customers. It is therefore essential
that everyone involved with our products and
solutions, all the way from raw material sourcing
to end-of-life treatment, understands the specific
risks associated with our products and solutions.
We exert our influence and assess the quality of
raw materials and components used in our prod-
ucts and solutions. If these raw materials and
components do not meet our quality standards,
we will look for better and safer alternatives. We
also carry out internal audits of our facilities to
identify potential issues, supporting a rigorous
testing regime for our products and solutions.
We will not send out products from our factories
unless these quality standards are met. Should
we identify anything during these audits or
tests, we will engage in corrective actions. This
approach to product safety is described in our
Product Safety Policy. The intention behind this
policy is to ensure the safety of our customers
and end-users.
Control of ownership is transferred from us to
the customer on delivery of the products and
solutions. At this stage in the value chain, we
are responsible for providing the necessary and
correct information and relevant training to
ensure that customers choose the appropriate
products or solution, and that the products are
used safely as they are designed for. Proactive
collaboration with our customers during the
design, production, and the use stage of our
products is important to increase knowledge
about product safety. This collaborative approach
is not mandated in a group-wide procedure and
is handled case-by-case and facility-by-facility.
We offer training courses for our customers and
end-users to ensure the safe handling of our
products. Proper operation, regular mainte-
nance, diagnostics, and repair procedures are all
critical elements to ensure that our products are
handled properly to deliver the safety and quality
we promise. For infrastructure solutions we
provide service engineers on-site to commission
the first containers together with the customer,
including presentations on how to safely operate
the equipment. For our cylinders and systems we
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provide the customers with information about safe
handling, integration, operation, and services and
inspections, including safety data sheets.
We closely monitor all warranty claims to gather
valuable user feedback regarding product per-
formance. This feedback is also valuable for us to
tailor or update information that would be rele-
vant for our customers and the safety associated
with our products. We have also provided our
customers with feedback templates to inform us
about potential issues. This feedback is reviewed
by the Quality department, who assess the nec-
essary action based on the nature and potential
consequence of the issue. Representatives from
the executive team are always included in this
communication. All issues are closed and con-
cluded with reports shared internally and with the
customer. In case any of the issues should lead to
changes in our production process, these changes
in production processes are also documented.
The process for raising concerns vary case-
by-case, and depends on the severity of the
complaint. As such the timeframe and remedy,
if required, between the cases will vary. The
number of complaints are consolidated on an
aggregated basis, and consists of all types of
smaller and more significant complaints. Going
forward we will calculate and monitor number of
complaints as a ratio of total shipments, which
will indicate the number of complaints relative to
our operational footprint and thus also address
effectiveness of our actions in mitigating any
actual or potential risks arising from impacts and
dependencies on consumers and end-users.
Our actions
Actions this year
• We purchased a Learning Management
System, which will improve facilitation and
quality of existing employee training
• Our facilities in Shijiazhuang and Dallas
received ISO 9001 certifications, communicat-
ing our commitment to quality
• We launched our “World Quality Week”,
including a series of events and engagement
activities, held in November 2024 to raise
quality awareness at our facilities globally
Planned actions
• We plan to further develop safety trainings in
2025 for our customers and intended users
within the hydrogen mobility and infrastructure
business to ensure proper handling of our
products and services
• We plan for ISO 9001 certification in our
Ålesund facility next year. If this is successful,
all our sites will be ISO 9001 certified by the
end of 2025
Targets
We will never compromise on product safety.
Our license to operate with hydrogen storage
and distribution solutions and both fuel cell
and battery electric vehicles demand quality in
everything we do. We focus on product safety
at all stages, from quality of raw materials
through to assembly and ultimately provide our
customers with the right set of tools to operate
our products safely and in the way they are
intended. We have not set any targets related to
information-related impacts for consumers and/
or end-users, as this is an on-going process and
represents our license to operate.
Going forward we will professionalize the training
we give to our customers to further promote the
safety of our products and solutions. Together with
our customers, we always aim to ensure that rele-
vant training must be completed by the intended
users to be allowed to handle our products and
solutions.
While there is currently no quantitative target,
our ultimate goal for product safety is always
zero incidents or complaints. Customers have not
been directly involved in setting any objectives.
The customers’ feedback is, however, relevant to
inform us about how we can improve the quality
of our products and our processes.
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Personal safety of consumers and end-users
Our approach
Our product portfolio can be split into two:
Hydrogen Mobility & Infrastructure (HMI), and
Battery Systems and Vehicle Integration (BVI).
We have the same rigorous and holistic approach
to safety and compliance for our portfolio,
with safety measures tailored and adapted to
the uniqueness of our hydrogen solutions and
battery systems. Our focus on product and
process quality contributes positively to safe
operations for our end-users.
Working with both hydrogen infrastructure and
hydrogen and battery electric mobility solutions,
the personal safety of consumers and end-us-
ers is paramount. Both industries are closely
monitored from a safety perspective and face
substantial existential risks in case there are any
major incidents within the industry. Any incidents,
either in the industries or customers’ application
of our products and solutions, can also have
direct and indirect financial effects for us, from
financial liability or through damaged market
reputation, respectively.
This is also why safety considerations are an
integral part of our product development
process, and they are systematically addressed
at every stage, particularly during design review
procedures. We adhere to the most rigorous
automotive methodologies, utilizing tools like
Advanced Product Quality Planning and Design
Failure Modes and Effects Analysis.
Our products are subject to stringent regula-
tions, and they are required to demonstrate
compliance with global standards through a
combination of actual test results, qualification
based on similarity, and analytical modeling. We
also go beyond regulatory requirements, where
our design and development processes include
tests such as vehicle crash testing, rollover, and
durability testing. Once the validation testing
is successfully completed, our products and
solutions receive the necessary certifications for
operation.
All hydrogen cylinders are designed, tested, and
qualified to strict codes and regulations defined
for the different segments the specific cylinder
is designed for. The quality of our products is
assured through internal test, verification, and
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qualification program, involving the raw material,
process technology and related parameters, as
well as external third-party qualification of the
final cylinder product.
All vehicle sub-assemblies and battery systems
comply with SAE (Society of Automotive
Engineers) standards. Suppliers that are critical
to the part functionality are onboarded through a
production part approval process (PPAP). Through
this process, we verify a supplier’s ability to relia-
bly and repeatedly produce a part or components
for mass production. Parts are always inspected
before, during and after a production run.
For BVI, we conduct assessments in the end-of-
life stage on products that have exceeded their
initial expected lifespan to gain insights into
aging effects and the remaining performance
capabilities, which can be used for continuous
development of the safety of our products and
solutions.
In case of any incidents where our products and
solutions are involved, we provide information
and, if possible, participate in any investigations
and root cause analysis together with our cus-
tomers and relevant authorities. In 2024, there
were no reports about specific material negative
impacts affecting the personal safety of our
consumers and end-users, as we are not aware
of any injuries related to the use of our products.
Should Hexagon Purus be a responsible party
to any incident, necessary action will be taken
based on the nature and potential consequence.
Representatives from the executive management
team are always included in this communication.
In case we need to provide or enable remedy in
any such event, including product liability cases,
the Group prepares an estimate of this remedy
based on experience, professional judgment of
legal counsel, and other assumptions it believes
to be reasonable. This is in line with how we make
provisions for warranties.
Our actions
Actions this year
• Conducted quality audits of selected BVI sup-
pliers, with particular focus on product quality
and safety, to support a zero-vision for serious
incidents involving our products and solutions
and mitigate potential material negative
impacts on our consumers and end-users.
Planned actions
• Completion of UN ECE R100 testing for the
Gen 3 battery pack, which addresses the
safety requirements specific to BVI and to
electric powertrain of road vehicles, including
rechargeable battery systems.
• Plan compliance in 2026 with the new FMVSS
1
305a for BVI before mandated implementation
date (1 September 2029).
Targets
Our product portfolio consists of technology
with high requirements for safety and quality.
We emphasize the responsibility and importance
we put on all ourselves to ensure that the risk
is eliminated or minimized as low as possible.
All our products and solutions delivered are
certified. Third-party verifications are essential to
communicate the safety and quality of our prod-
ucts to customers and other stakeholders. Our
ambition is to maintain any such certifications
going forward.
While quantifiable target related to personal
safety of consumer and end-users has not been
set, we continue to have a zero-vision for serious
incidents involving our products and solutions.
We share the responsibility of our customers and
end-users to meet this vision. We must work pro-
actively with safety, and our proactive approach
will also contribute to limiting any potential or
actual damage in the event where the safety and
quality of our products are questioned in the
future.
1
FMVSS No. 305a Electric-Powered Vehicles: Electric Powertrain Integrity Global Technical Regulation No. 20 Incorporation by Reference
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Governance
ESRS G1 | Business Conduct
108
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ESRS G1 | Business Conduct
IRO OVERVIEW
SUBTOPIC IRO VALUE CHAIN DESCRIPTION IRO DEVELOPMENT
Corporate culture
Corporate culture Positive impact Own operations A conscious approach to people and culture is a critical success factor for reaching the
company's objectives. Our corporate culture contributes positively to this.
Increase – medium timeframe
Increase – long-term timeframe
Protection of whistleblowers
Open and informal channels Positive impact Own operations We believe that transparency and good communication throughout the organization promotes a better
working culture. Reports from our employees and stakeholders are our most important mechanism
to uncovering and understanding when things are not as they should be at Hexagon Purus.
Increase – medium
timeframeStable – long-
term timeframe
Professional business conduct and solid governance structures are
fundamental to our license to operate. Hexagon Purus has a proud
industrial heritage with a strong corporate culture driving business
performance, enabling innovation integrity. Guided by our common
core values of Integrity and Drive, we have dedicated employees
across the Group who are a driving force for a sustainable planet
living out these values.
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Corporate culture
Our approach
We communicate our commitment to govern-
ance through our purpose and values, combined
with responsible business conduct and company
policies, guiding us on how to act in accordance
with our governing principles. We trust all our
internal stakeholders to act with integrity and in
compliance with laws and regulations, as well as
our internal policies. We strongly encourage all
our external stakeholders to do the same. While
we currently do not have a global system for
tracking or monitoring adherence to these poli-
cies proactively, we encourage all our employees
and business partners to disclose information
regarding dishonest, fraudulent or illegal behav-
ior or violations or potential violation of any
applicable law or Hexagon Purus’ policies and/or
procedures. Any such reporting will be treated in
accordance with our Whistleblowing Policy.
The Hexagon Purus Code of Conduct, which is
the overarching guiding governance document,
helps us navigate situations and dilemmas that
may arise during our business operations. The
Code of Conduct sets clear guidelines and princi-
ples on behavior in important governance areas,
including human and labor rights, anti-corruption
and bribery, sanctions and export controls, data
privacy, among others. The Board of Directors has
the ultimate responsibility to ensure that Hexagon
Purus operates in line with the requirements for
ethical business conduct and supervises the man-
agement and business operations of Hexagon
Purus. The CEO is the owner of the Code of
Conduct and responsible for its implementation in
the organization on a day-to-day basis.
Our purpose, values, and policy commitments
are available to all stakeholders via our policy
repository on our web pages. While we have
developed several policies for Hexagon Purus
specifically, we are still utilizing a selection of
Hexagon Group policies post deconsolidation,
where applicable. An overview of our own policies
and the policies we are utilizing from Hexagon
Composites can be found in the Board of
Directors report (page 32).
Conducting business in a responsible manner
is an inherent part of Hexagon Purus’ organ-
izational culture. At Hexagon Purus we have
no tolerance for corruption, and we work to
proactively and continuously improve our man-
agement practice and oversight to prevent any
form of corruption. The Anti-Corruption Policy
supplements our Code of Conduct.
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Together with the creation of Hexagon Purus’
Code of Conduct, we have also purchased a
learning management system (LMS) to improve
and develop our employees. This system will help
to increase knowledge and awareness concern-
ing the Code of Conduct and business ethics.
The system also allows us to tailor training on
business conduct for our organization, including,
but not limited to, the frequency of training
and depth of coverage. While we require all our
employees to undertake training in business
conduct, the potential dilemmas our functions
meet every day might differ. This should also be
reflected in their training. The functions most
exposed to corruption and bribery risks are sales,
procurement, finance, engineering, and senior
management as a result of the nature of their
job. The risk is thus far considered limited.
Our actions
Actions this year
• Developed and published Hexagon Purus
Code of Conduct, laying out the aspirations
and expectations to our employees
• Purchased a learning management system,
establishing the foundation for upskilling our
employees and supporting our desired behav-
iors and corporate culture
Planned actions
• Establish a Hexagon Purus specific Anti-
corruption and Bribery Policy to state our
commitment to responsible business conduct.
• Develop and roll-out training on Code of
Conduct and Supplier and Business Partner
Code of Conduct to increase knowledge in
our organization about desired behaviors and
corporate governance from our employees and
from our suppliers and business partners.
Targets
With the implementation of the learning man-
agement system and the newly developed
Hexagon Purus Code of Conduct, we now have
the tools to communicate our commitment
to business conduct and track our employees’
understanding of proper business conduct in
Hexagon Purus.
Going forward our target is to have 100 per cent
rolling completion rate of Code of Conduct
training. This means that all our active employees
must have completed the Code of Conduct
training at least once a year. To complete training
on Code of Conduct employees must have read
and understood the Code, where employees will
be tested on their understanding in the learning
management system.
The training will be implemented from 2025
and onwards as part of the standard employee
curriculum and as part of the Hexagon Purus
mandatory onboarding process, and will be
updated on an as-needed basis or if there are
changes to the Code of Conduct. This will also
ensure that all employees must have completed
the training prior to partaking any professional
service for Hexagon Purus.
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Protection of whistleblowers
Our approach
As stated in our Code of Conduct and in our
Whistleblowing Policy, we encourage our
employees to speak up about actual and poten-
tial misconduct in the Company. Whistleblowing
is an important method for uncovering illegal
conditions and unwanted business culture within
Hexagon Purus and allows us to rectify problems
and prevent the problems from growing. Both
external and internal stakeholders can report
concerns, either internally or by using an external
whistleblowing channel through Hexagon Purus’
legal representative, Advokatfirmaet Schjødt
AS. Employees are encouraged to report and
resolve matters internally but are always entitled
to external reporting in cases where reporting to
direct management is undesirable or difficult, or
where internal reporting has not been handled
adequately.
The mechanisms for identifying, reporting, and
investigating concerns are described in our
Whistleblowing Policy. The Policy also includes
a non-exhaustive list of potential violations
acting as guidance for the reporting parties.
Notifications will be handled with confidentiality,
ensuring that the whistleblower’s identity and
the information about the content of the report
will only be disclosed on a need-to-know basis,
or as required by applicable law. Whistleblowers
reporting in a responsible way and in good faith
will also be protected against any adverse act or
omission as a consequence of, or a reaction to,
reporting the matter. Hexagon Purus is respon-
sible for ensuring that whistleblowers have a safe
and proper working environment.
To date, all reported whistleblowing concerns
have been about working environment matters.
We are consistently striving to enhance our
work environment and promote collaboration.
As people come together to work, conflicts may
arise. Our goal is to cultivate a healthy culture
where feedback is exchanged openly, and dis-
agreements are resolved constructively in the
workplace.
We have adapted our Whistleblowing Policy
to international and national legislations that
Hexagon Purus is subject to in various locations.
The Whistleblowing Policy is specific to our
German (in accordance with the Directive (EU)
2019/1937), US, Canadian, and Norwegian (fol-
lowing the Norwegian Working Environment Act)
entities. Information about whistleblowing to our
stakeholders is therefore communicated locally.
With our new learning management system we
will also provide training locally.
Our actions
Actions this year
• Monitored and investigated reported
complaints.
Planned actions
• Training for employees and for staff receiving
whistleblowing reports
Targets
We believe that transparency and good commu-
nication throughout the organization promotes
a better working culture. Feedback from our
employees and stakeholders are our most
important mechanism to uncover and under-
stand when things are not as they should be at
Hexagon Purus.
We do not have a quantitative target concerning
reported concerns. Our objective is to ensure
that all reporting concerns are taken seriously
and handled appropriately, and we will disclose
the number of reported concerns resolved in the
financial year 2025.
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ESRS index
DISCLOSURE REQUIREMENT OMISSION COMMENT/REASON FOR OMISSION REFERENCE IN REPORT PAGE
(
S
)
BP-1 General basis for preparation of the sustainability statement Sustainability statement 48-49
BP-2 Disclosures in relation to specific circumstances Sustainability statements 48-49
GOV-1 The role of the administrative, management and supervisory bodies Board of Directors report 31-32, 41-42
GOV-2 Information provided to and sustainability matters addressed by the
undertaking’s administrative, management and supervisory bodies
Board of Directors report 31-32
GOV-3 Integration of sustainability-related performance in incentive schemes Board of Directors report 33
GOV-4 Statement on sustainability due diligence Sustainability statement 100-101
GOV-5 Risk management and internal controls over sustainability reporting Sustainability statement 31-33
SBM-1 Strategy, business model and value chain
(products, markets, customers)
Sustainability statement 11, 46
SBM-1 Strategy, business model and value chain (headcount by country) Sustainability statement 92
SBM-1 Strategy, business model and value chain (breakdown of revenue) Financial statements 134
SBM-2 Interests and views of stakeholders Sustainability statement 55-56
SBM-3 Material impacts, risks and opportunities and their
interaction with strategy and business model
Covered in each of the respective ESRS material topics Sustainability statement
IRO-1 Description of the process to identify and assess
material impacts, risks and opportunities
Sustainability statement 50-54
IRO-2 Disclosure Requirements in ESRS covered by
the undertaking’s Reference in report
This table Sustainability statement 112-116
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DISCLOSURE REQUIREMENT OMISSION COMMENT/REASON FOR OMISSION REFERENCE IN REPORT PAGE
(
S
)
ESRS E1 Climate change
E1-1 Transition plan for climate change mitigation 16-17 We do not have a transition plan. We have not yet decided
whether and, if so, we will adopt a transition plan.
Sustainability statement
SBM-3 Material impacts, risks and opportunities, and their
interaction with strategy and business model
19, AR 7(b), AR 8(b) Our climate risk assessment does not include a resilience analysis of our
strategy and business model in relation to climate change.
Sustainability statement 58
IRO-1 Description of the processes to identify and assess material
climate-related impacts, risks and opportunities
AR 11 (c), AR 12 (c) Our climate risk assessment does not include a resilience analysis of our strategy and business model in
relation to climate change with particular focus on transition risks or risks specific to our supply chain.
Sustainability statement 69-72
E1-2 Policies related to climate change mitigation and adaptation 24-25 We do not have a specific policy in place to manage material impacts, risks, and
opportunities related to climate change mitigation and adaptation.
Sustainability statement 60
E1-3 Actions and resources in relation to climate change policies 28-29, AR 21 We do not present key climate change mitgation actions by decarbonization levers and/or including
nature-based solutions. We do not report the expected GHG emission reductions. The presented
climate change mitigation action do not constitute significant monetary amounts of CapEx and OpEx.
Sustainability statement 61
E1-4 Targets related to climate change mitigation and adaptation 16 (a)-(b), 32, 34
(a)-(b), 34 (e)-(f), AR
25 (a)-(b), AR 30 (c)
We do not have any specific targets related to climate change mitigation and adaptation. Sustainability statement
E1-5 Energy consumption and mix Sustainability statement 68
E1-6 Gross Scopes 1, 2, 3 and total GHG emissions Sustainability statement 62-63
E1-9 Anticipated financial effects from material physical and
transition risks and potential climate-related opportunities
66-69, AR 72 (a)
(b), AR 73 (a)-(b),
AR 76 (b),
Phase-in requirement
ESRS E5 Resource use and circular economy
IRO-1 Description of the processes to identify and assess material
climate-related impacts, risks and opportunities
Sustainability statement 50-54, 82
E5-1 Policies related to resource use and circular economy 14, 15 (a)-(b) We do not have a specific policy in place to manage material impacts, risks, and opportunities
related to resource use and circular economy, addressing the transition away from use
of virgin resources or sustainable sourcing and use of renewable resources.
Sustainability statement 32, 82
E5-2 Actions and resources related to resource use and circular economy 19-20, AR 11-12 We do not have specific actions related to resource use and circular economy. Sustainability statement 83
E5-3 Targets related to resource use and circular economy 23, 24 (a)-(d), 24
(e)-(f), 25, 27
We do not have any specific targets related to resource use and circular economy. Sustainability statement 83
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SUSTAINABILITY STATEMENTS | ESRS INDEXSUSTAINABILITY STATEMENTS | ESRS INDEX
DISCLOSURE REQUIREMENT OMISSION COMMENT/REASON FOR OMISSION REFERENCE IN REPORT PAGE
(
S
)
E5-4 Resource inflows 31 The current internal systems and processes do not fully capture quantity (weight) data of purchased
goods including inflow materials and packaging.
The plan to incorporate weight information in the inventory systems, and the anticipated
timeframes for implementation and reporting will be reviewed and discussed in 2025 or later.
Sustainability statement 82-83
E5-5 Resource outflows Sustainability statement 83-84
E5-6 Anticipated financial effects from resource use and circular
economy-related impacts, risks and opportunities
43 Phase-in requirement
ESRS S1 Own workforce
SBM-2 Interests and views of stakeholders Sustainability statement 55-56
SBM-3 Material impacts, risks and opportunities and their
interaction with strategy and business model
15-16 For the double materiality assessment, we have not directly consulted with the affected stakeholders
such as employees, value chain workers and others. As such the understanding of how people
with particular characteristics, those working in particular contexts, or those undertaking particular
activities may be at greater risk of harm was based on the knowledge of the engaged stakeholders
(described in General - Double materiality assessment - Stakeholder engagement).
Sustainability statement 86
S1-1 Policies related to own workforce 20 (c) We do not have a general approach to providing or enabling remedy for human rights impacts. Sustainability statement 32, 88
S1-2 Processes for engaging with own workforce and
workers’ representatives about impacts
27 (e), 28 We have not assessed the effectiveness of engagement with own workforce in 2024. Sustainability statement 88-89
S1-3 Processes to remediate negative impacts and
channels for own workforce to raise concerns
Sustainability statement 88-89
S1-4 Taking action on material impacts on own workforce, and approaches
to managing material risks and pursuing material opportunities
related to own workforce, and effectiveness of those actions
38 (b) We do not have a general approach to providing or enabling remedy for human
rights impacts. We have not taken action to provide or enable remedy in relation to
an actual material impact in 2024, as no such impacts have been identified.
Sustainability statement 88-91
S1-5 Targets related to managing material negative impacts, advancing
positive impacts, and managing material risks and opportunities
Sustainability statement 89-91
S1-6 Characteristics of the undertaking’s employees Sustainability statement 92
S1-7 Characteristics of non-employees in the undertaking’s own workforce Sustainability statement 93
S1-9 Diversity metrics Sustainability statement 93
S1-10 Adequate wages Sustainability statement 94
S1-11 Social Protection Sustainability statement 94
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(
S
)
S1-13 Training and skills development metrics 83 Phase-in requirement Sustainability statement 91
S1-14 Health and safety metrics Sustainability statement 95
S1-15 Work-life balance metrics Sustainability statement 96
S1-16 Remuneration metrics (pay gap and total remuneration) 97 We have not assessed the gender pay gap, defined as the difference of average pay levels between
female and male employees, expressed as percentage of the average pay level of male employees, in
2024. This will be assessed in 2025 and presented in a context suited to our operations and employment
levels. We have not calculated the annual total remuneration ratio of the highest paid individual to the
median annual total remuneration for all employees (excluding the highest-paid individual). Information
about the executive remuneration can be found in Hexagon Purus Remuneration Report 2024.
Sustainability statement
S1-17 Incidents, complaints and severe human rights impacts Sustainability statement 96
ESRS S2 Workers in the value chain
SBM-2 Interests and views of stakeholders Workers in the value chain have not been assessed as key stakeholders in 2024 Sustainability statement 55-56
SBM-3 Material impacts, risks and opportunities and their
interaction with strategy and business model
For the double materiality assessment, we have not directly consulted with the affected stakeholders
such as employees, value chain workers and others. As such the understanding of how people
with particular characteristics, those working in particular contexts, or those undertaking particular
activities may be at greater risk of harm was based on the knowledge of the engaged stakeholders
(described in General - Double materiality assessment - Stakeholder engagement).
Sustainability statement 97
S2-1 Policies related to value chain workers 17 (b)-(c) We do not have a policy describing our engagement with value chain workers and/
or measures to provide and/or enable remedy for human rights impacts.
Sustainability statement 98
S2-2 Processes for engaging with value chain workers about impacts 22-24 We do not have a process for engaging with value chain workers and their legitimate representatives,
or with credible proxies, material actual and potential positive and/or negative impacts.
Sustainability statement 98-101
S2-3 Processes to remediate negative impacts and channels
for value chain workers to raise concerns
27 (a), 27 (c)-(d), 28 We do not have a process for providing or facilitating remedy for a material negative
impact we have caused or contributed to. While we have a whistleblowing channel
open to our value chain workers, the availability of this channel is not communicated.
We have not received any issues raised and addressed from our value chain workers,
and as such, the trust in, or the effectiveness of the channels, remain unknown.
Sustainability statement 98-101
S2-4 Taking action on material impacts on value chain
workers, and approaches to managing material risks
and pursuing material opportunities related to value
chain workers, and effectiveness of those actions
35 We do not have any actions to avoid causing or contributing to material
negative impacts on value chain workers through its own practices.
Sustainability statement 98-101
S2-5 Targets related to managing material negative impacts, advancing
positive impacts, and managing material risks and opportunities
42 (b)-(c) We do not have any specific targets related to managing material negative impacts, advancing
positive impacts, and managing material risks and opportunities for workers in the value chain.
Sustainability statement 99-101
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DISCLOSURE REQUIREMENT OMISSION COMMENT/REASON FOR OMISSION REFERENCE IN REPORT PAGE
(
S
)
ESRS S4 Consumers and end-users
SBM-2 Interests and views of stakeholders Sustainability statement 55-56
SBM-3 Material impacts, risks and opportunities and their
interaction with strategy and business model
For the double materiality assessment, we have not directly consulted with the affected stakeholders
such as employees, value chain workers and others. As such the understanding of how people
with particular characteristics, those working in particular contexts, or those undertaking particular
activities may be at greater risk of harm was based on the knowledge of the engaged stakeholders
(described in General - Double materiality assessment - Stakeholder engagement).
Sustainability statement 102
S4-1 Policies related to consumers and end-users 16, 17 Our Product Safety Policy does not specify our general approach to respect for the human
rights of consumers and/or end-users, engagement with consumers and/or end-users,
and/or measures to provide and/or enable remedy for human rights impacts.
Sustainability statement 103-106
S4-2 Processes for engaging with consumers and end-users about impacts Sustainability statement 103-106
S4-3 Processes to remediate negative impacts and channels
for consumers and end-users to raise concerns
25 (a) We do not have a general approach to and processes for providing or
contributing to remedy where it has identified that it has caused or contributed
to a material negative impact on consumers and/or end-users.
Sustainability statement 103-106
S4-4 Taking action on material impacts on consumers and end-
users, and approaches to managing material risks and
pursuing material opportunities related to consumers
and end-users, and effectiveness of those actions
31 (d) We do not have a process for tracking and assessing the effectiveness of actions and initiatives directed
towards consumers and end-users in delivering intended outcomes for consumers and/or end-users.
Sustainability statement 104, 106
S4-5 Targets related to managing material negative impacts, advancing
positive impacts, and managing material risks and opportunities
We do not have any specific targets related to managing material negative impacts, advancing positive
impacts, and managing material risks and opportunities for personal safety of consumer and end-users
Sustainability statement 104, 106
ESRS G1 Business conduct
GOV-1 The role of the administrative, supervisory and management bodies Board of Directors report
Sustainability statement
31, 41-42
109
IRO-1 Description of the processes to identify and assess
material impacts, risks and opportunities
Sustainability statement 50-55
G1-1 Business conduct policies and corporate culture Sustainability statement 108-111
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SUSTAINABILITY STATEMENTS | ESRS INDEXSUSTAINABILITY STATEMENTS | ESRS INDEX
ESRS data points from other EU Legislation
Disclosure
Requirement Data point Legislation Page(s)
ESRS 2 GOV-1 21 (d) Board's gender diversity SFDR/BRR 41
ESRS 2 GOV-1 21 (e) Percentage of board members who are independent BRR 41
ESRS 2 GOV-4 30 Statement on due diligence SFDR 100-101
ESRS 2 SBM-1 40 (d) (i) Involvement in activities related to fossil fuel activities SFDR/P3/BRR NR
ESRS 2 SBM-1 40 (d) (ii) Involvement in activities related to chemical production SFDR/BRR NR
ESRS 2 SBM-1 40 (d) (iii) Involvement in activities related to controversial weapons SFDR/BRR NR
ESRS 2 SBM-1 40 (d) (iv) Involvement in activities related to
cultivation and production of tobacco
BRR NR
ESRS E1-1 14 Transition plan to reach climate neutrality by 2050 EUCL O
ESRS E1-1 16 (g) Undertakings excluded from Paris-aligned Benchmarks P3/BRR NR
ESRS E1-4 34 GHG emission reduction targets SFDR/P3/BRR 61
ESRS E1-5 37 Energy consumption and mix SFDR 68
ESRS E1-5 38 Energy consumption from fossil sources disaggregated by sources SFDR 68
ESRS E1-5 40 - 43 Energy intensity associated with activities
in high climate impact sectors
SFDR 68
ESRS E1-6 44 Gross Scope 1, 2, 3 and Total GHG emissions SFDR/P3/BRR 62
ESRS E1-6 53 - 55 Gross GHG emissions intensity SFDR/P3/BRR 63
ESRS E1-6 56 Gross GHG removals and carbon credits EUCL NM
Disclosure
Requirement Data point Legislation Page(s)
ESRS E1-9 66 Exposure of the benchmark portfolio to climate-related physical risks BRR P
ESRS E1-9 66 (a) Disaggregation of monetary amounts
by acute and chronic physical risk
P3 P
ESRS E1-9 66 (c) Location of significant assets at material physical risk P3 P
ESRS E1-9 67 (c) Breakdown of the carrying value of its real
estate assets by energy-efficiency classes
P3 P
ESRS E1-9 69 Degree of exposure of the portfolio to climate-related opportunities BRR P
ESRS E2-4 28 Amount of each pollutant listed in Annex II of the
E-PRTR Regulation emitted to air, water, and soil
SFDR NM
ESRS E3-1 9 Water and marine resources SFDR NM
ESRS E3-1 13 Dedicated policy SFDR NM
ESRS E3-1 14 Sustainable oceans and seas SFDR NM
ESRS E3-4 28 (c) Total water recycled and reused SFDR NM
ESRS E3-4 29 Total water consumption in m
3
per net revenue in own operations SFDR NM
ESRS E4 -
SBM-3 (ESRS 2)
16 (a) Activities negatively affecting biodiversity-sensitive areas SFDR NM
ESRS E4 -
SBM-3 (ESRS 2)
16 (b) Land degradation, desertification, or soil sealing SFDR NM
ESRS E4 -
SBM-3 (ESRS 2)
16 (c) Threatened species SFDR NM
Legislation
SFDR Sustainable Finance Disclosure Regulation
P3 EBA Pillar 3 disclosure requirements
BRR Climate Benchmark Standards Regulation
EUCL EU Climate Law
Other short forms
NR Not relevant
O Omission
NM Not material
P Phase-in
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Disclosure
Requirement Data point Legislation Page(s)
ESRS E4-2 24 (b) Sustainable land/agriculture practices or policies SFDR NM
ESRS E4-2 24 (c) Sustainable oceans/seas practices or policies SFDR NM
ESRS E4-2 24 (d) Policies to address deforestation SFDR NM
ESRS E5-5 37 (d) Non-recycled waste SFDR 84
ESRS E5-5 39 Hazardous waste and radioactive waste SFDR 84
ESRS S1 - SBM-3
(ESRS 2)
14 (f) Risk of incidents of forced labor paragraph 14f) SFDR NR
ESRS S1 - SBM-3
(ESRS 2)
14 (g) Risk of incidents of child labor paragraph 14g) SFDR NR
ESRS S1-1 20 Human rights policy commitments SFDR 88
ESRS S1-1 21 Due diligence policies on issues addressed by
the fundamental ILO Conventions 1 to 8
BRR 100-101
ESRS S1-1 22 Processes and measures for preventing trafficking in human beings SFDR 88
ESRS S1-1 23 Workplace accident prevention policy or management system SFDR 88-89
ESRS S1-3 32 (c) Grievance/complaints handling mechanisms SFDR 88-89
ESRS S1-14 88 (b) Number of fatalities of work-related accidents SFDR/BRR 95
ESRS S1-14 88 (c) Number and rate of work-related accidents SFDR/BRR 95
ESRS S1-14 88 (e) Number of days lost to injuries, accidents, fatalities or illness SFDR 95
ESRS S1-16 97 (a) Unadjusted gender pay gap SFDR/BRR O
ESRS S1-16 97 (b) Excessive CEO pay ratio SFDR O
ESRS S1-17 103 (a) Incidents of discrimination SFDR 96
ESRS S1-17 104 (a) Non-respect of UNGPs on Business and
Human Rights and OECD Guidelines
SFDR 96
Disclosure
Requirement Data point Legislation Page(s)
ESRS S2 -
SBM-3 (ESRS 2)
11 (b) Significant risk of child labour or forced labour in the value chain SFDR/BRR 99
ESRS S2-1 17 Human rights policy commitments SFDR 32, 98-99
ESRS S2-1 18 Policies related to value chain workers SFDR 32, 98-99
ESRS S2-1 19 Non-respect of UNGPs on Business and Human
Rights principles and OECD guidelines
SFDR/BRR 99
ESRS S2-1 19 Due diligence policies on issues addressed by
the fundamental ILO Conventions 1 to 8
SFDR/BRR 100-101
ESRS S2-4 36 Human rights issues and incidents connected to
its upstream and downstream value chain
SFDR 97-101
ESRS S3-1 16 Human rights policy commitments SFDR NM
ESRS S3-1 17 Non-respect of UNGPs on Business and Human
Rights principles and OECD guidelines
SFDR/BRR NM
ESRS S3-4 36 Human rights issues and incidents SFDR NM
ESRS S4-1 16 Policies related to consumers and end-users SFDR 32,
103-104,
ESRS S4-1 17 Non-respect of UNGPs on Business and Human
Rights principles and OECD guidelines
SFDR/BRR NM
ESRS S4-4 35 Human rights issues and incidents SFDR NM
ESRS G1-1 10 (b) United Nations Convention against Corruption SFDR 109-110
ESRS G1-1 10 (d) Protection of whistleblowers SFDR 111
ESRS G1-4 24 (a) Fines for violation of anti-corruption and anti-bribery laws SFDR/BRR NM
ESRS G1-4 24 (b) Standards of anti- corruption and anti- bribery SFDR/BRR NM
Hexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024
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Espen Gundersen
Chair of the Board
Jon Erik Engeset
Board Member
Martha Kold Monclair
Board Member
Hidetomo Araki
Board Member
Susana Quintana-Plaza
Board Member
Liv Fiksdahl
Board Member
Rick Rashilla
Board Member
Morten Holum
President & CEO
Statement from the Board of Directors
and Chief Executive Officer
We confirm to the best of our knowledge that:
• the sustainability statements have been prepared in accordance with sustainability reporting standards
established in accordance with the Accounting Act Section 2-6, and in accordance with rules established
pursuant to Article 8(4) of the Taxonomy Regulation.
Oslo, Norway, 26 March 2025
The Board of Directors of Hexagon Purus ASA
Hexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024
119
SUSTAINABILITY STATEMENTSSUSTAINABILITY STATEMENTS
Income statement Group
121
Statement of comprehensive income
122
Statement of financial position Group
123
Cash flow statement Group
125
Statement of changes in equity
127
Notes
128
Note 1 Corporate information
128
Note 2 Basis of preparation
129
Note 3 Revenue from contracts with customers
130
Note 4 Operating segments
133
Note 5 Payroll costs and number of employees
135
Note 6 Other operating expenses
135
Note 7 Property, plant and equipment
136
Note 8 Intangible assets
137
Note 9 Impairment
139
Note 10 Leases
142
Note 11 Investments in associates
145
Note 12 Non-current financial assets and other
non-current assets
147
Note 13 Inventories
148
Note 14 Trade receivables
148
Note 15 Other current assets
149
Note 16 Bank deposits, cash and cash equivalents
150
Note 17 Net financial items
150
Note 18 Financial assets and financial liabilities
151
Note 19 Financial risk management
154
Note 20 Short term provisions
157
Note 21 Pensions
158
Note 22 Share capital and share premium
158
Note 23 Share-based payment
160
Note 24 Earnings per share
161
Note 25 Interest-bearing liabilities
162
Note 26 Short-term interest-bearing loans
164
Note 27 Other current liabilities
164
Note 28 Related parties disclosure
165
Note 29 Income tax
168
Note 30 Government grants
170
Note 31 Purchasing commitments
171
Note 32 Events after the balance sheet date
171
Income statement – Parent Company
172
Balance sheet – Parent Company
173
Cash flow statement – Parent Company
175
Notes – Parent Company
176
Note 1 Basis of preparation
176
Note 2 Intra-group transactions and balances
176
Note 3 Payroll, number of employees, remuneration, loans to employees etc.
177
Note 4 Share-based payment
179
Note 5 Pensions and benefit obligations
180
Note 6 Other operating expenses
180
Note 7 Net financial items
180
Note 8 Tax
181
Note 9 Shares in subsidiaries and associates
182
Note 10 Non-current receivables
183
Note 11 Bank deposits
183
Note 12 Share capital and shareholder information
184
Note 13 Financial market risk
185
Note 14 Equity
185
Note 15 Events after the balance sheet date
186
Auditor’s report
187
Financial statements
Financial statements Group Financial statements Parent Company
Hexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024
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FINANCIAL STATEMENTS FINANCIAL STATEMENTS
Income statement Group
1 JANUARY
–
31 DECEMBER
(NOK 1 000) | Note | 2024 | 2023 |
Revenue from contracts with customers | 3, 4 | ||
| Other operating revenue | 3, 4 | ||
Total revenue | |||
| Cost of materials | 13 | ||
| Payroll expenses | 5, 21, 23, 28 | ||
| Other operating expenses | 6 | ||
Total operating expenses before depreciation | |||
| Operating profit before depreciation (EBITDA) | 4 | ( | ( |
| Depreciation, amortization and impairment | 7, 8, 10 | ||
Operating profit (EBIT) | ( | ( | |
| Share of profit (loss) from investments in associates | 11 | ( | ( |
| Finance income | 17, 18 | ||
| Finance costs | 17, 25 | ||
Profit/loss before tax | ( | ( | |
| Tax | 29 | ( | ( |
Profit/loss after tax | ( | ( |
(NOK 1 000) | Note | 2024 | 2023 |
| Attributable to: | |||
| Equity holders of the parent | 22, 24 | ( | ( |
Non-Controlling interests | ( | ( | |
| Earnings per share | |||
| Ordinary (NOK) | 24 | ( | ( |
| Diluted (NOK) | 24 | ( | ( |
Hexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024
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FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
Statement of comprehensive income
1 JANUARY
–
31 DECEMBER
(NOK 1 000) | 2024 | 2023 |
Profit/loss after tax | ( | ( |
| OTHER COMPREHENSIVE INCOME: | ||
| Items that will be reclassified through profit or loss in subsequent periods | ||
Exchange differences on translation of foreign operations | ||
Total comprehensive income, net of tax | ( | ( |
| Attributable to: | ||
Equity holders of the parent | ( | ( |
Non-controlling interests | ( | ( |
Hexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024
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FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
Statement of financial position Group
(NOK 1 000) | Note | 31 Dec 2024 | 31 Dec 2023 | |
| ASSETS | ||||
| Property, plant and equipment | 7 | |||
| Right-of-use assets | 10 | |||
| Intangible assets | 8 | |||
| Investment in associates | 11 | |||
| Non-current financial assets | 12,18 | |||
| Other non-current assets | 12 | |||
Total non-current assets | ||||
| Inventories | 13 | |||
| Trade receivables | 14,18 | |||
Contract assets | ||||
| Other current assets | 15 | |||
| Cash and short-term deposits | 16 | |||
Total current assets | ||||
Total assets | ||||
Hexagon Purus ASA | Annual report 2024 4 | 202 |
123123
FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
(NOK 1 000) | Note | 31 Dec 2024 | 31 Dec 2023 |
| EQUITY AND LIABILITIES | |||
| Issued capital | 22 | ||
| Share premium | 22 | ||
Other equity | ( | ||
Equity attributable to holders of the parent | |||
Non-controlling interests | |||
Total equity | |||
| Interest-bearing loans and borrowings | 18,19,25 | ||
| Lease liabilities | 10,25 | ||
| Net employee defined benefit liabilities | 21 | ||
| Deferred tax liabilities | 29 | ||
Total non-current liabilities | |||
| Trade and other payables | 18 | ||
Contract liabilities | |||
| Interest-bearing loans and borrowings | 18,19,25,26 | ||
| Lease liabilities, short term | 10,25,26 | ||
| Income tax payable | 29 | ||
| Other current financial liabilities | 18 | ||
| Other current liabilities | 27 | ||
| Provisions | 20 | ||
Total current liabilities | |||
Total liabilities | |||
Total equity and liabilities |
Oslo, Norway, 26 March 2025
The Board of Directors of Hexagon Purus ASA
Espen Gundersen
Chair of the Board
Jon Erik Engeset
Board Member
Martha Kold Monclair
Board Member
Hidetomo Araki
Board Member
Susana Quintana-Plaza
Board Member
Liv Fiksdahl
Board Member
Rick Rashilla
Board Member
Morten Holum
President & CEO
Hexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024
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FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
Cash flow statement Group
(NOK 1 000) | Note | 2024 | 2023 |
| CASH FLOW FROM OPERATING ACTIVITIES | |||
Profit before tax | ( | ( | |
| Adjustments to reconcile profit before tax to net cash flows | |||
| Depreciation and impairment of property, plant and equipment | 7 | ||
| Depreciation and impairment of right-of-use assets | 10 | ||
| Amortization and impairment of intangible assets | 8 | ||
| Share-based payment expense | 23 | ||
| Share of net profit of associates | 11 | ( | |
| Movements in pensions | 21 | ( | |
| Working capital adjustments | |||
| Change in trade receivables and contract assets | 14 | ( | ( |
| Change in inventories | 13 | ( | ( |
| Change in trade and other payables, contract liabilities | 27 | ( | |
| Change in other accrual accounting entries | 12, 26 | ||
| Other adjustments to reconcile to operating cash flow | |||
| Interest income | 17 | ( | ( |
| Interest expense | 17 | ||
Net cash flow from operating activities | ( | ( | |
| Hexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024 |
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FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
(NOK 1 000) | Note | 2024 | 2023 |
| CASH FLOW FROM INVESTMENT ACTIVITIES | |||
| Purchase of property, plant and equipment | 7 | ( | ( |
| Purchase and development of intangible assets | 8 | ( | ( |
Settlement of contingent consideration of business combination | ( | ( | |
| Investments in associated companies | 11 | ( | ( |
| Interest received | 17 | ||
Loans to associated companies | ( | ( | |
Net cash flow used in investing activities | ( | ( | |
| CASH FLOW FROM FINANCING ACTIVITIES | |||
| Proceeds from loans | 25 | ||
Transaction costs on issue of loans | ( | ( | |
| Repayment of loans | 25 | ( | ( |
| Interest payments | 17 | ( | ( |
| Repayment of principal portion of lease liabilities | 10, 25 | ( | ( |
| Interest on lease liabilities | 10, 25 | ( | ( |
| Proceeds from new equity | 22 | ||
| Transaction costs on issue of equity instruments | 22 | ( | ( |
Proceeds from share capital increase in subsidiary | |||
Net cash flow (used in)/from financing activities | |||
Net decrease/increase in cash and cash equivalents | ( | ||
Net foreign exchange difference | ( | ||
| Cash and cash equivalents at 1 January | 16 | ||
Cash & cash equivalents outgoing balance |
Hexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024
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FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
Statement of changes in equity
| Equity attributable | ||||||||
| Other paid-in | Foreign currency | to holders | Non-controlling | |||||
(NOK 1 000) | Note | Issued capital | Share premium | capital | translation reserve | of the parent | interest | Total equity |
As of 1 January 2024 | ||||||||
Profit for the period | ( | ( | ( | ( | ||||
Other comprehensive income | ||||||||
Total comprehensive income | ( | ( | ( | ( | ||||
| Share-based payments | 22 | |||||||
Share capital increase | ||||||||
Share capital increase in subsidiary | ||||||||
| Equity portion of convertible debt | 24 | |||||||
Transaction cost | ( | ( | ( | ( | ||||
As of 31 December 2024 | ( | |||||||
As of 1 January 2023 | ||||||||
Profit for the period | ( | ( | ( | ( | ||||
Other comprehensive income | ( | |||||||
Total comprehensive income | ( | ( | ( | ( | ||||
| Share-based payments | 22 | |||||||
Share capital increase | ||||||||
Share capital increase in subsidiary | ||||||||
| Equity portion of convertible debt | 24 | |||||||
Transaction cost | ( | ( | ( | ( | ||||
As of 31 December 2023 | ||||||||
| Hexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024 |
127127
FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
Notes
Note 1 Corporate information
Company information
Group, is a public limited liability company with its
registered office in Norway . The company’s head-
quarters is at Haakon VII gate 2, 0161 Oslo, Norway .
Morten Holum is President & CEO of Hexagon
Purus Group and General Manager of Hexagon
Purus ASA.
Company | Home country | Registered office | Ownership | Votes |
Hexagon Technology H2 AS | Norway | Oslo | 100% | 100% |
Hexagon Purus HK Holding AS | Norway | Oslo | 100% | 100% |
Hexagon Purus Maritime AS | Norway | Langevag | 100% | 100% |
Hexagon Purus Germany Holding GmbH | Germany | Herford | 100% | 100% |
Hexagon Purus GmbH | Germany | Kassel | 100% | 100% |
Hexagon Purus Real Estate GmbH | Germany | Kassel | 100% | 100% |
Wystrach GmbH | Germany | Weeze | 100% | 100% |
Wyrent GmbH | Germany | Weeze | 100% | 100% |
xperion E&E US Holding Inc. | USA | Heath, OH | 100% | 100% |
xperion E&E USA LLC | USA | Heath, OH | 100% | 100% |
Hexagon Purus North America Holdings Inc. | USA | Lincoln, NE | 100% | 100% |
Hexagon Purus LLC | USA | Lincoln, NE | 100% | 100% |
Hexagon MasterWorks Inc. | USA | Lincoln, NE | 100% | 100% |
Hexagon Purus Systems USA, LLC | USA | Costa Mesa, CA | 100% | 100% |
Hexagon Purus Systems Canada Ltd | Canada | Vancover | 100% | 100% |
CIMC- Hexagon Hydrogen Energy Technologies Limited | China | Hong Kong | 51% | 51% |
CIMC- Hexagon Hydrogen Energy Technologies (Beijing) Co,, Ltd | China | Beijing | 100% | 100% |
CIMC- Hexagon Hydrogen Energy Technologies (Heibei) Co,, Ltd | China | Heibei | 100% | 100% |
Hexagon Purus (Beijing) Ltd. | China | Beijing | 100% | 100% |
| Associates | ||||
CIMC- Hexagon Hydrogen Energy Systems Limited | China | Hong Kong | 49% | 49% |
Cryoshelter LH2 GmbH | Austria | Dobl-Zwaring | 40% | 40% |
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Hexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024
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Hexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024
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(NOK 1 000) | 2024 | 2023 |
Sale of cylinders and systems | 1 773 589 | 1 194 637 |
Sale of services and funded development | 49 354 | 61 193 |
Contracts with customers at a point in time | 1 822 943 | 1 255 829 |
Sale of cylinders and systems | 20 582 | 55 981 |
Contracts with customers over time | 20 582 | 55 981 |
Total revenue from contracts with customers | 1 843 525 | 1 311 810 |
| Type of goods or service | ||
Sale of cylinders and systems | 1 794 171 | 1 250 618 |
Sale of services and funded development | 49 354 | 61 193 |
Other revenues | 31 256 | 6 846 |
Rental income | 1 059 | 957 |
Total revenue from contracts with customers | 1 875 839 | 1 319 615 |
Hexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024
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(NOK 1 000) | 2024 | 2023 |
Trade receivable | 351 432 | 274 974 |
Contracts assets (accrued revenue) | - | 11 168 |
Contract liabilities | 159 179 | 196 327 |
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2024 | 2023 | |||||||
| Hydrogen | Battery Systems | Hydrogen | Battery Systems | |||||
| Mobility & | & Vehicle | Other and | Mobility & | & Vehicle | Other and | |||
| (NOK 1 000) | Infrastructure | Integration | eliminations | Total | Infrastructure | Integration | eliminations | Total |
Revenues from contracts with customers | 1 780 382 | 68 236 | (5 094) | 1 843 525 | 1 268 493 | 30 817 | 12 501 | 1 311 811 |
Other operating revenue | 2 073 | 29 103 | 1 139 | 32 314 | 6 396 | 9 564 | (8 156) | 7 804 |
Total revenue | 1 782 455 | 97 339 | (3 955) | 1 875 839 | 1 274 889 | 40 381 | 4 345 | 1 319 614 |
EBITDA | (11 856) | (139 129) | (197 376) | (348 361) | (94 047) | (139 719) | (211 706) | (445 472) |
Depreciation & impairment | 389 782 | 44 230 | 128 202 | 562 213 | 124 126 | 21 282 | 4 376 | 149 784 |
EBIT | (401 638) | (183 359) | (325 578) | (910 575) | (218 173) | (161 001) | (216 082) | (595 256) |
Segment assets | 2 692 351 | 933 699 | 1 307 729 | 4 933 780 | 2 462 331 | 616 561 | 694 115 | 3 773 007 |
Segment investments in the period 1 | 131 381 | 217 178 | 128 053 | 476 612 | 310 852 | 50 839 | 87 865 | 449 556 |
Segment liabilities | 910 076 | 451 403 | 1 450 504 | 2 811 984 | 1 341 535 | 281 232 | 231 114 | 1 853 880 |
Hexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024
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(NOK 1 000) | 2024 | 2023 |
| Geographical regions | ||
Norway | 5 501 | 4 161 |
Europe, excluding Norway | 1 531 015 | 1 090 261 |
North America | 328 038 | 196 700 |
Asia | 4 560 | 9 520 |
Australia/Oceania | 3 499 | |
Others | 6 724 | 15 474 |
Total | 1 875 839 | 1 319 614 |
(NOK 1 000) | 2024 | 2023 |
| Geographical regions | ||
Norway | 155 305 | 145 404 |
Europe, excluding Norway | 1 381 104 | 1 572 144 |
North America | 692 024 | 439 207 |
Asia | 216 039 | 96 892 |
Total external | 2 444 472 | 2 253 649 |
| Property, plant | Intangible | Property, plant | Intangible | |
| and equipment | assets | and equipment | assets | |
| (NOK 1 000) | 2024 | 2024 | 2023 | 2023 |
| Geographical regions | ||||
Norway | 1 492 | 17 011 | 503 | 31 967 |
Europe, excluding Norway | 101 219 | 11 884 | 254 154 | - |
North America | 215 607 | 45 195 | 78 072 | 1 111 |
Asia | 169 364 | 7 690 | 109 914 | 6 550 |
Total | 487 683 | 81 779 | 442 643 | 39 628 |
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(NOK 1 000) | Note | 2024 | 2023 |
Salaries/fees | 633 168 | 516 752 | |
Contractors/hired personnel | 23 067 | 19 934 | |
Board remuneration | 2 724 | 2 668 | |
Share-based payments | 31 363 | 24 368 | |
| Bonuses and incentive programs | 22 | 22 227 | 27 179 |
| Pension expense, defined-benefit plans | 20 | 218 | 109 |
| Pension expense, defined-contribution plans | 20 | 11 281 | 9 031 |
Other personnel related expenses | 7 077 | 13 622 | |
Other social security costs | 31 934 | 24 681 | |
Capitalized personnel costs (development projects) | (10 724) | (16 908) | |
Payroll costs | 752 335 | 621 436 | |
| Average number of full-time equivalents | 2024 | 2023 | |
Canada | 97 | 82 | |
China | 36 | 17 | |
Norway | 27 | 29 | |
Germany | 518 | 457 | |
USA | 72 | 53 | |
Total number of full-time equivalents | 749 | 638 |
(NOK 1 000) | 2024 | 2023 |
IT and communication cost | 40 541 | 27 311 |
Operating and maintenance for property, plant and machines | 117 811 | 73 081 |
Professional fees | 150 275 | 123 345 |
Indirect costs of sales | 21 532 | 47 195 |
Travel and living | 29 034 | 29 614 |
Other | 31 099 | 66 264 |
Other operating expeses | 390 292 | 366 810 |
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| Buildings and | Machinery | Assets | ||
| real estate | and | under | ||
| (NOK 1 000) | properties | equipment | construction | 2024 total |
| Fixed assets | ||||
Opening balance at cost price | 161 601 | 643 906 | 321 614 | 1 127 120 |
Opening balance accumulated depreciations | (56 704) | (203 204) | - | (259 909) |
Opening balance book value | 104 897 | 440 701 | 321 614 | 867 212 |
Additions | 33 258 | 211 418 | 243 006 | 487 683 |
Transfers from assets under construction | 83 052 | 63 208 | (146 260) | - |
Depreciations | (8 567) | (84 302) | - | (92 869) |
Impairments | - | (6 021) | (121 337) | (127 358) |
Translation differences | 2 888 | 51 454 | 22 333 | 76 675 |
Disposals | - | (7 556) | (10) | (7 566) |
Closing balance 31.12.2024 | 215 528 | 668 903 | 319 346 | 1 203 777 |
Closing balance at cost price | 280 799 | 962 430 | 440 683 | 1 683 912 |
Closing balance accumulated depreciations | (65 271) | (293 527) | (121 337) | (358 798) |
Useful life | 10-20 years | 3-15 years | ||
Depreciation method | Straight-line Straight-line |
| Buildings and | Machinery | Assets | ||
| real estate | and | under | ||
| (NOK 1 000) | properties | equipment | construction | 2023 total |
| Fixed assets | ||||
Opening balance at cost price | 144 496 | 309 847 | 239 284 | 693 627 |
Opening balance accumulated depreciations | (45 863) | (152 774) | - | (198 637) |
Opening balance book value | 98 633 | 157 073 | 239 284 | 494 990 |
Additions | 12 414 | 211 586 | 189 540 | 413 540 |
Transfers from assets under construction | - | 117 969 | (117 969) | - |
Depreciations | (10 841) | (50 430) | - | (61 272) |
Impairments | - | - | - | - |
Translation differences | 6 853 | 7 379 | 10 759 | 24 991 |
Disposals | (2 162) | (2 876) | - | (5 037) |
Closing balance 31.12.2023 | 104 897 | 440 701 | 321 614 | 867 212 |
Closing balance at cost price | 161 601 | 643 906 | 321 614 | 1 127 120 |
Closing balance accumulated depreciations | (56 704) | (203 204) | - | (259 909) |
Useful life | 10-20 years | 3-15 years | ||
| Depreciation method | Straight-line | Straight-line |
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Hexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024
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| Technology and | Patents and | Customer | |||
| (NOK 1 000) | development | licenses | relationships | Goodwill | 2024 total |
| Intangible assets | |||||
Opening balance at cost price | 251 248 | 15 143 | 184 810 | 559 941 | 1 011 143 |
Opening balance accumulated amortizations | (49 898) | (11 117) | (108 456) | - | (169 471) |
Opening balance book value | 201 350 | 4 026 | 76 354 | 559 941 | 841 671 |
Additions | 75 566 | 6 213 | - | - | 81 779 |
Amortizations | (27 385) | (1 277) | (22 052) | - | (50 714) |
Translation differences | 3 890 | 320 | 3 441 | 26 545 | 34 197 |
Impairment | - | - | (832) | (226 567) | (227 399) |
Closing balance 31.12.2024 | 253 420 | 9 282 | 56 912 | 359 920 | 679 534 |
Closing balance at cost price | 330 704 | 21 676 | 188 252 | 586 486 | 1 127 119 |
Closing balance accumulated amortizations | (77 284) | (12 394) | (131 340) | (226 567) | (447 584) |
Useful life | 5-20 years | 6-17 years | 7-9 years | Indefinite | |
Amortization method | Straight-line Straight-line Straight-line | None |
| Technology and | Patents and | Customer | |||
| (NOK 1 000) | development | licenses | relationships | Goodwill | 2023 total |
| Intangible assets | |||||
Opening balance at cost price | 206 787 | 14 050 | 178 086 | 523 741 | 922 664 |
Opening balance accumulated amortizations | (25 772) | (7 469) | (86 770) | - | (120 010) |
Opening balance book value | 181 015 | 6 581 | 91 316 | 523 741 | 802 654 |
Additions | 38 948 | 680 | - | - | 39 628 |
Amortizations | (24 127) | (2 211) | (21 686) | - | (48 024) |
Translation differences | 5 513 | 413 | 6 724 | 36 200 | 48 851 |
Disposals | - | (1 437) | - | - | (1 437) |
Closing balance 31.12.2023 | 201 350 | 4 026 | 76 354 | 559 941 | 841 671 |
Closing balance at cost price | 251 248 | 15 143 | 184 810 | 559 941 | 1 011 143 |
Closing balance accumulated amortizations | (49 898) | (11 117) | (108 456) | - | (169 471) |
Useful life | 5-20 years | 6-17 years | 7-9 years | Indefinite | |
Amortization method | Straight-line Straight-line Straight-line | None |
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Climate risk
The Group has conducted a physical climate risk assessment for most of the facilities indicating that some of
the facilities will be increasingly exposed to climate risks in the future. The Group will monitor the identified risks
going forward and continue to assess their potential impact on our business operations. For further information
see the Sustainability section. The risk assessment has not had any material financial impact on the impairment
tests for 2024.
Basis for impairment testing
When testing for impairment the assets are grouped in CGUs. The Group CGUs are:
•
HMI Europe
•
HMI North America
•
BVI
•
China Cylinder Production Company (CPC)
The recoverable amount of each CGU is determined using the value-in-use approach, which is based on dis-
counted cash flows. The basis for the estimated cash flows is the Group’s business plan for the period 2025-2029,
on which basis different scenarios (high, base and low) have been derived. The scenarios are derived based on an
assessment of transition to zero emission infrastructure and mobility solutions. As described in the Sustainability
section, the Group’s most significant risk is a delay in this transition. In the scenarios, high case is based on a
transition rate expected at the time of the preparation of the business plan. The base and low cases are based on
different levels of delays in the transition rates. Subsequently, the scenarios have been weighted with 30% for the
high case, 50% for the base case and 20% for low case. The net present value is calculated based on a weighted
average. The cash flow projections relate to the cash generating unit in the current condition which means future
investments not commenced has not been included in the valuation. Therefore, the measured enterprise value
calculated does not fully consider the longer-term growth potential in the various markets the Company is active in.
The calculations of value-in-use are sensitive to several assumptions, the following are assessed as key assump-
tions in the measured value:
•
Revenue growth
1
•
EBITDA margin
•
Discount rate / weighted average cost of capital (WACC)
1
Growth in revenue from 2025 to perpetuity
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2% revenue growth has been applied in the terminal value year for all CGUs. The discount rate calculation is
based on the specific circumstances of the Group and its operating segments and is derived from its weighted
average cost of capital (WACC). The WACC is based on 10-year risk-free interest rates in the market where the
CGU operates, while the same market risk premium, size premium, beta factor and equity ratio have been
applied across markets. The derived pre-tax nominal discount rate is in the range of 13.0% to 15.6%. The recover-
able amount is sensitive to the discount rate used for the DCF model as well as the expected future cash inflows
and the growth rate used for extrapolation purposes.
All recognized goodwill in the Group is allocated to HMI Europe. The goodwill is a result of acquisition of mainly
two companies in Germany that are maintained as one operating unit.
Carrying amount of goodwill for the CGU
(NOK 1 000) | 2024 | 2023 |
HMI Europe | 359 920 | 596 142 |
Total goodwill | 359 920 | 596 142 |
Based on the assessment a goodwill impairment of NOK 227 million is recognized in the Company’s accounts for
the fourth quarter of 2024. The present value of the cash flow in the calculations made is, among other things,
sensitive to changes in the discount rate, growth rate, and changes in the EBITDA margin. The sensitivity analysis
uses the economic assumptions referred to above as their starting point. Calculations have been made based
on one of the estimated economic assumptions being changed and in which the other economic assumptions
remain unchanged. The calculations show that an increase in WACC of 0.5 percentage points would increase the
recognized impairment with NOK 112 million, a reduction of EBITDA margin in the terminal value with 1% would
increase the impairment value with NOK 164 million, and a reduction of revenue growth in terminal value year
with 1% increase the impairment value with NOK 153 million.
The Group assesses property, plant, equipment (PPE), and intangible assets for impairment when indicators of
impairment exist. Indicators include a more uncertain near-term market outlook and a market capitalization of
the Group that has fallen below the book value of equity. Impairment tests have been performed on the follow-
ing CGUs:
CGU
(NOK 1 000) | Carrying amount |
HMI Europe | 1 569 920 |
HMI North America | 220 826 |
BVI | 386 937 |
China Cylinder Production Company (CPC) | 222 811 |
HMI Europe
The HMI Europe CGU covers Hexagon Purus’ hydrogen cylinder and systems manufacturing activities in Europe.
The table below shows the sensitivity analysis for the range of +/-2 percentage points in WACC and +/-2 per-
centage points in EBITDA margin in terminal value. The amounts shown are after the impairment of goodwill is
recognized.
| Sensitivity in headroom | |||
(NOK 1 000) | Change in WACC | ||
Percentage point change in EBITDA – margin in terminal value | (2.0%) | 0.0% | 2.0% |
| 2.0% | 1 109 492 | 328 516 | (137 025) |
- | 635 653 | 0 1 | (379 955) |
(2.0%) | 161 814 | (328 516) | (622 885) |
1
Represents headroom in impairment calculation for the CGU after an impairment of NOK 227 million has been recognized. Negative numbers
in the table indicate impairment.
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HMI North America
The HMI North America CGU covers Hexagon Purus’ hydrogen cylinder and systems manufacturing activities in
North America, as well as its aerospace business. The table below shows the sensitivity analysis for the range of
+/-2 percentage points in WACC and +/-2 percentage points in EBITDA margin in terminal value.
| Sensitivity in headroom Change in WACC | ||||
(NOK 1 000) | (2.0%) | 0.0% | 2.0% | |
| Percentage point change in EBITDA | 2.0% | 907 970 | 635 679 | 456 320 |
| – margin in terminal value | - | 800 758 | 556 200 1 | 394 953 |
(2.0%) | 693 546 | 476 720 | 333 587 |
1
Represents headroom in impairment calculation for the CGU. Negative numbers in the table indicate impairment.
BVI
The BVI CGU covers Hexagon Purus’ industry-leading battery storage systems technology and complete vehicle
integration services for medium- and heavy-duty trucks in North America. The table below shows the sensitivity
analysis for the range of +/-2 percentage points in WACC and +/-2 percentage points in EBITDA margin in termi-
nal value.
| Sensitivity in headroom Change in WACC | ||||
(NOK 1 000) | (2.0%) | 0.0% | 2.0% | |
| Percentage point change in EBITDA | 2.0% | 845 816 | 487 608 | 252 980 |
| – margin in terminal value | - | 610 202 | 313 407 1 | 118 478 |
(2.0%) | 375 218 | 139 206 | (16 023) |
1
Represents headroom in impairment calculation for the CGU. Negative numbers in the table indicate impairment
China Cylinder Production Company (CPC)
The China CPC CGU covers Hexagon Purus’ hydrogen cylinder manufacturing activities in China. The table below
shows the sensitivity analysis for the range of +/-2 percentage points in WACC and +/-2 percentage points in
EBITDA margin in terminal value. The amounts shown are after the impairment of NOK 121 million related to
assets under construction is recognized.
| Sensitivity in headroom Change in WACC | ||||
(NOK 1 000) | (2.0%) | 0.0% | 2.0% | |
| Percentage point change in EBITDA | 2.0% | 235 806 | 69 059 | (27 761) |
| – margin terminal in value | - | 134 820 | 0 1 | (78 407) |
(2.0%) | 33 833 | (69 059) | (129 052) |
1
Represents headroom in impairment calculation for the CGU after an impairment of NOK 121 million has been recognized. Negative numbers in
the table indicate impairment.
The Group has identified the following CGU where impairment was considered necessary:
CGU
| Carrying | Carrying | |||
| amount before | Impairment | amount after | ||
(NOK 1 000) | Asset category | impairment | recognized | impairment |
| Property, | ||||
| plant and | ||||
| China Cylinder Production Company (CPC) | equipment | 201 740 | 121 454 | 80 286 |
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Additional sensitivity
The sensitivities in the table below show the change in assumptions that results in zero headroom, all else being
equal. Additional sensitivities for HMI Europe and China CPC have not been included as the headroom in the
evaluation is zero.
(NOK 1 000) | HMI NA | BVI |
Revenue in terminal value year | (42.0%) | (4.1%) |
Revenue growth in the year 2025-2029 | (21.21%) | (15.15%) |
EBITDA margin in terminal year | (6.3%) | (2.7%) |
Change in WACC (PPS) | 14.84% | 3.69% |
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| Fixtures, | ||||
| Land and | Machinery and | fittings, | ||
| (NOK 1 000) | buildings | equipment | vehicles | 2024 total |
| 2024 | ||||
Opening balance at cost price | 609 982 | 28 434 | 11 575 | 649 992 |
Opening balance accumulated deprecations | (88 812) | (10 873) | (5 541) | (105 227) |
Opening balance 1 January | 521 170 | 17 561 | 6 034 | 544 765 |
Additions | 65 814 | - | 1 194 | 67 008 |
Disposal | (28 116) | - | - | (28 116) |
Depreciations | (57 681) | (3 709) | (2 483) | (63 874) |
Translation differences | 40 584 | 516 | 278 | 41 378 |
Closing balance 31 December | 541 771 | 14 367 | 5 024 | 561 162 |
Useful life | 3-10 years | 2-7 years | 2-5 years | |
Depreciation method | Linear | Linear | Linear |
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| Fixtures, | ||||
| Land and | Machinery and | fittings, | ||
| (NOK 1 000) | buildings | equipment | vehicles | 2023 total |
| 2023 | ||||
Opening balance at cost price | 189 794 | 21 401 | 5 843 | 217 038 |
Opening balance accumulated deprecations | (55 483) | (5 788) | (3 467) | (64 738) |
Opening balance 1 January | 134 311 | 15 613 | 2 376 | 152 300 |
Additions | 425 017 | 6 796 | 5 618 | 437 431 |
Depreciations | (33 329) | (5 085) | (2 074) | (40 489) |
Translation differences | (4 829) | 237 | 114 | (4 478) |
Closing balance 31 December | 521 170 | 17 561 | 6 034 | 544 765 |
Useful life | 3-10 years | 2-7 years | 2-5 years | |
Depreciation method | Linear | Linear | Linear |
(NOK 1 000) | 2024 | 2023 |
| Summary of lease liabilities | ||
Opening balance 1 January | 558 068 | 154 710 |
New lease liabilities recognized | 67 008 | 437 431 |
Disposal | (34 782) | - |
Lease payments | (81 872) | (51 798) |
Interest expense on lease liabilities | 38 851 | 22 261 |
Currency exchange differences | 45 563 | (4 536) |
Lease liabilities 31 December | 592 836 | 558 068 |
| hereof: | ||
Current lease liabilities | 49 994 | 39 930 |
Non-current lease liabilities | 542 842 | 518 138 |
Total lease liabilities 31 December | 592 836 | 558 068 |
(NOK 1 000) | 2024 | 2023 |
| Lease liability cash flow (excl interests) | ||
Less than a month | 3 633 | 2 230 |
1-3 months | 8 838 | 5 789 |
3-12 months | 37 522 | 31 912 |
Less than 1 year | 49 994 | 39 930 |
1-5 years | 194 494 | 172 969 |
More than 5 years | 348 349 | 345 169 |
Total discounted lease liabilities 31 December | 592 836 | 558 068 |
(NOK 1 000) | 2024 | 2023 |
| Lease interest expense cash flow | ||
Less than a month | 3 256 | 3 227 |
1-3 months | 6 448 | 6 434 |
3-12 months | 27 872 | 28 032 |
Less than 1 year | 37 576 | 37 693 |
1-5 years | 115 924 | 120 958 |
More than 5 years | 66 874 | 90 230 |
Total lease interests following periods | 220 374 | 248 880 |
(NOK 1 000) | 2024 | 2023 |
| Undiscounted cash outflow | ||
Less than a month | 6 889 | 5 457 |
1-3 months | 15 286 | 12 222 |
3-12 months | 65 394 | 59 944 |
Less than 1 year | 87 570 | 77 623 |
1-5 years | 310 418 | 293 927 |
More than 5 years | 415 222 | 435 398 |
Total undiscounted lease liabilities 31 December | 813 210 | 806 948 |
Hexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024
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FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
(NOK 1 1000) | 2024 | 2023 |
| Summary of cash outflows leases | ||
Cash payment for leases accounted for under IFRS 16 | 81 872 | 51 798 |
Variable lease payments | 25 545 | 12 055 |
Cash payments related to short term leases and leases of low value | 7 455 | 333 |
Total cash outflow for leases | 114 873 | 64 186 |
| Ownership | Ownership | ||||
| Business | share | share | Accounting | ||
| Country | segment | 31.12.2023 | 31.12.2024 | method | |
| Companies | |||||
Cryoshelter LH2 Gmb | Austria | Other | 40.0% | 40.0% | Equity method |
| CIMC Hexagon Hydrogen | |||||
Energy Systems Ltd | Hong Kong | Other | 49.0% | 49.0% | Equity method |
Hexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024
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FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
| CIMC Hexagon Hydrogen | ||||||
| Cryoshelter LH2 GmbH | Energy Systems | Total | ||||
(NOK 1000) | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 |
Share of profit after tax | (22 599) | (8 330) | (13 123) | (4 172) | (35 722) | (12 503) |
PPA amortizations associated companies | - | - | - | - | - | - |
Gain on loss of significant influence | - | - | - | - | - | - |
Total profit/loss from investments in associated companies as per 31.12 | (22 599) | (8 330) | (13 123) | (4 172) | (35 722) | (12 503) |
| CIMC Hexagon Hydrogen | ||||||
| Cryoshelter LH2 GmbH | Energy Systems | Total | ||||
(NOK 1000) | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 |
Carrying value as at 01.01 | 23 062 | 31 258 | 27 082 | 1 771 | 50 144 | 33 029 |
Share capital contribution | - | - | 4 502 | 29 305 | 4 502 | 29 305 |
Share of profit after tax | (22 599) | (8 330) | (13 123) | (4 172) | (35 722) | (12 502) |
Currency translation effects | (463) | 134 | 4 508 | 178 | 4 045 | 312 |
Carrying value as per 31.12 | - | 23 062 | 22 969 | 27 082 | 22 969 | 50 144 |
Hexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024
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FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
(NOK 1 000) | 2024 | 2023 |
Loans (as lender) 1 | 15 000 | 34 249 |
Other shares 2 | 95 403 | 95 403 |
Other non-current assets 3 | 132 150 | 33 767 |
Total other non-current assets | 242 552 | 163 419 |
Hexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024
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FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
Note 13 Inventories
(NOK 1 000) | 2024 | 2023 |
Raw materials and consumables | 418 328 | 265 378 |
Work in progress | 139 784 | 88 931 |
Finished goods | 135 949 | 127 387 |
Total inventories | 694 061 | 481 695 |
Provision for obsolete inventory in balance sheet | 27 882 | 24 584 |
Carrying amount of holdings used as pledged assets | - | - |
Provisions for obsolete inventory in the balance sheet are presented net for each category of inventory.
(NOK 1 000) | 2024 | 2023 |
Trade receivables | 355 399 | 277 961 |
Provisions for loss | (3 967) | (2 987) |
Trade receivables after provision for losses | 351 432 | 274 974 |
Carrying amount of trade receivables used as pledged assets | - | - |
Hexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024
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FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
| Trade receivables | |||||||
| 30–60 | 60–90 | ||||||
| Contract | <30 days | days | days | >90days | |||
assets | Not due | past due | past due | past due | past due | Total | |
| 2024 | |||||||
Expected credit loss rate | - | - | - | 3.2% | 5.2% | 12.2% | |
Gross carrying amount at default | - | 221 619 | 77 315 | 30 782 | 2 230 | 23 453 | 355 399 |
Expected credit loss | - | - | (985) | (115) | (2 867) | (3 967) | |
Net carrying amount | - | 221 619 | 77 315 | 29 797 | 2 115 | 20 586 | 351 432 |
| 2023 | |||||||
Expected credit loss rate | - | - | - | 3.2% | 5.2% | 8.1% | |
Carrying amount at default | 11 168 | 195 624 | 32 009 | 21 041 | 1 718 | 27 569 | 277 961 |
Expected credit loss | (673) | (89) | (2 225) | (2 987) | |||
Net carrying amount | 11 168 | 195 624 | 32 009 | 20 368 | 1 628 | 25 344 | 274 974 |
(NOK 1 000) | 2024 | 2023 |
Opening balance 1 January | 2 988 | 1 965 |
Provision for losses | 1 536 | 911 |
Actual losses | (751) | - |
Translation differences | 195 | 111 |
Closing balance 31 December | 3 967 | 2 987 |
(NOK 1 000) | 2024 | 2023 |
Other debtors | - | 27 226 |
Prepaid expenses | 77 508 | 148 781 |
Prepayment to suppliers | 635 | 27 629 |
Entitlement to VAT and sales tax | 47 998 | 20 878 |
Entitlement to income tax refund | - | 45 |
Other | 24 421 | 5 915 |
Total other current assets | 150 561 | 230 474 |
Hexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024
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FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
(NOK 1 000) | 2024 | 2023 |
Cash at bank and in hand | 1 027 732 | 307 485 |
Undrawn Group overdraft facility | - | 8 430 |
Restricted funds included in cash & cash equivalents 1 | 13 606 | 5 357 |
(NOK 1 000) | 2024 | 2023 |
Interest income | 24 282 | 29 564 |
Foreign exchange items | 75 738 | 56 181 |
Other finance income | 12 | 17 928 |
Total finance income | 100 032 | 103 673 |
Loss on exchange items | 58 932 | 81 491 |
Cost of interest on loans | 210 129 | 83 373 |
Cost of interest on lease liabilities | 38 851 | 22 261 |
Other finance expense | 57 492 | 98 |
Total finance expense | 365 404 | 187 223 |
Net financial items | (265 372) | (83 550) |
Hexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024
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FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
Hexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024
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FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
(NOK 1 000) | 2024 | 2023 |
| Financial assets at amortized costs | ||
Trade receivables | 351 432 | 274 974 |
Other non-current financial assets | 15 000 | 34 249 |
Other current financial assets | - | 38 394 |
| Financial assets at fair value | ||
Investment in Norwegian Hydrogen AS | 95 403 | 95 403 |
Total | 461 835 | 443 019 |
Total current | 351 432 | 313 368 |
Total non-current | 110 403 | 129 651 |
(NOK 1 000) | 2024 | 2023 |
| Financial liabilities at amortized cost | ||
Trade and other payables | 260 153 | 220 457 |
Non-current interest bearing loans and borrowings | 1 569 251 | 596 482 |
Current interest bearing loans and borrowings | 3 346 | 2 317 |
| Financial liabilities at fair value | ||
Other current financial liabilities (Contingent liabilities) | - | 42 539 |
Total | 1 832 750 | 861 796 |
Total current | 263 499 | 265 313 |
Total non-current | 1 569 251 | 596 482 |
Hexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024
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FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
2024 | 2023 | ||||
(NOK 1 000) | Level | Book value | Fair value | Book value | Fair value |
| Financial assets | |||||
Other non-current financial assets | 3 | 95 403 | 95 403 | 95 403 | 95 403 |
Other non-current assets | 2 | 15 000 | 15 000 | 34 249 | 34 249 |
Other current financial assets | 2 | - | - | 38 394 | 38 394 |
Total financial assets | 110 403 | 110 403 | 168 045 | 168 045 | |
Total current | - | - | 38 394 | 38 394 | |
Total non-current | 110 403 | 110 403 | 129 651 | 129 651 | |
| Financial liabilities | |||||
Interest bearing loans and borrowings | 2 | 1 572 597 | 1 572 597 | 598 799 | 598 799 |
Other current financial liabilities | 3 | - | - | 42 539 | 42 539 |
Total financial liabilities | 1 572 597 | 1 572 597 | 641 339 | 641 339 | |
Total current | 3 346 | 3 346 | 44 856 | 44 856 | |
Total non-current | 1 569 251 | 1 569 251 | 596 482 | 596 482 |
Hexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024
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FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
2024 | 2023 | |
Loan from related party | na | 5.2% |
Loan from financial institutions | 1.56% - 2.88% | 1.56% - 7.50% |
Convertible bond | 6% and 10% | 6% |
Leases | 2.50% - 10.50% | 2.50% - 10.50% |
Hexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024
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FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
| Gains or losses on interest rate | |||
| Change in interest rates | Effect on profit/loss before tax | derivatives in comprehensive | |
| in base points | (NOK 1 000) | income before tax (NOK 1 000) | |
2024 | +100 | (222) | - |
(100) | 222 | - | |
2023 | +100 | (212) | - |
(100) | 212 | - |
| Less than | 3–12 | |||||
| (NOK 1 000) | 1 month | 1–3 months | months | 1–5 years | 5 years+ | Total |
Loans from financial institutions | 279 | 836 | 2 230 | 9 646 | 11 757 | 24 748 |
| Interest on loans from financial | ||||||
institutions | 41 | 122 | 325 | 1 715 | 234 | 2 437 |
Leases | 3 633 | 8 838 | 37 522 | 194 494 | 348 349 | 592 836 |
Interest on leases | 3 256 | 6 448 | 27 872 | 115 924 | 66 874 | 220 374 |
Convertible bond | - | - | - | 2 703 946 | - | 2 703 946 |
Trade payables | 188 617 | 57 850 | 13 686 | - | - | 260 153 |
Total | 195 826 | 74 095 | 81 635 | 3 025 725 | 427 213 | 3 804 494 |
| Less than | 3–12 | |||||
| (NOK 1 000) | 1 month | 1–3 months | months | 1–5 years | 5 years+ | Total |
Loans from financial institutions | 193 | 579 | 1 545 | 11 720 | 13 126 | 27 163 |
| Interest on loans from financial | ||||||
institutions | 40 | 119 | 317 | 1 274 | 846 | 2 596 |
Leases | 2 230 | 5 789 | 31 912 | 172 969 | 345 169 | 558 068 |
Interest on leases | 3 227 | 6 434 | 28 032 | 120 958 | 90 230 | 248 880 |
Convertible bond | - | - | - | 1 075 133 | - | 1 075 133 |
Other current financial liabilities | - | - | 42 540 | - | - | 42 540 |
Trade payables | 200 380 | 46 008 | 6 676 | 2 366 | 283 | 255 712 |
Total | 203 716 | 53 133 | 110 794 | 1 384 420 | 449 653 | 2 201 716 |
Hexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024
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FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
| Movement of NOK | Effect on profit/ loss | ||
| (NOK 1 000) | against USD | before tax | Effect on OCI pre tax |
2024 | +10% | (22 754) | - |
(10%) | 22 754 | - | |
2023 | +10% | (19 789) | - |
(10%) | 19 789 | - |
| Movement of NOK | Effect on profit/ loss | ||
| (NOK 1 000) | against EUR | before tax | Effect on OCI pre tax |
2024 | +10% | (53 418) | - |
(10%) | 53 418 | - | |
2023 | +10% | (38 277) | - |
(10%) | 38 277 | - |
Hexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024
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FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
(NOK 1 000) | 2024 | 2023 |
Balance 1 January | 65 782 | 38 227 |
Translation differences | 4 099 | 2 278 |
Provisions for the year | 16 074 | 28 195 |
Provisions used (and reversed) during the year | (9 444) | (3 765) |
Reversals of provision | (6 770) | - |
Warranty provision, other changes | (306) | 847 |
Balance 31 December | 69 435 | 65 782 |
The Group seeks to minimize the level of warranty or other claims from third parties through a diligent focus on
quality. The Group also seeks to consistently recognize any potential impact of unanticipated events. Provisions
are made for both general and, if required, specific warranty claims.
Such provisions are typically based on:
i) historical warranty costs levels for equivalent products and services,
ii) assessment of any ongoing third-party legal disputes or quality related matters in the ordinary course of
business. In such cases, including products liability cases, the Group prepares estimates based on experience,
professional judgment of legal counsel, and other assumptions it believes to be reasonable. The Group also
recognizes an asset if insurance covers all or part of any recorded liability. As additional information becomes
available, potential liability related to pending litigation is reassessed and related estimates are updated, and
iii) a forward view based on the changing levels and complexity of business activities.
The warranty period is mostly one year from delivery with exceptions for individual contract. The provision can
therefore be expected to be related to ongoing activity and new contracts.
Hexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024
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FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
Note 21 Pensions
Pension plans in Hexagon Purus
The Norwegian companies in the Group are legally obliged to have occupational pension arrangements under
the Norwegian Mandatory Occupational Pension Act. The Norwegian pension arrangements satisfy the require-
ments of this act. This arrangement is a defined contribution plan.
The Group’s subsidiaries in the US offers defined contribution plans subject to US statutory requirements. The
defined contribution plans cover full-time employees and employer contributions range up to 6% of defined
compensation subject to employee contributions. For some of the plans, there can also be an additional payment
at the end of the year in accordance with the terms of the defined contribution plan.
In Germany, most employees are not covered by a pension plan. There is a historical defined benefit plan with
a very limited participation. The obligation for the defined benefit pension plans is calculated on a straight-line
basis. Unrealized gains and losses resulting from changes in actuarial assumptions are recognized in other com-
prehensive income. There are six retired employees in the pension plan.
The pension liability is calculated by an actuary. A summary of the Group’s net pension liability is presented
below. Based on the limited participation and liability of the defined benefit pension plans, the plan is considered
of low significance for the Group.
Summary of pension cost
(NOK 1 000) | 2024 | 2023 |
Defined contribution pension plan | 11 281 | 8 762 |
Defined benefit pension plan | 218 | 109 |
Total | 11 499 | 8 870 |
Pension related assets and liabilities
(NOK 1 000) | 2024 | 2023 |
Pension liabilities | 1 696 | 1 717 |
2024 | 2023 | |
Ordinary shares of NOK 0.10 (2024/2023) | 428 486 108 | 276 797 456 |
Total number of shares | 428 486 108 | 276 797 456 |
Hexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024
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FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
| Changes in share capital and share premium | ||||||
Number of shares | Share capital (NOK 1 000) | Share premium (NOK 1 000) | ||||
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |
| Ordinary shares | ||||||
Issued and paid 1 January | 276 797 456 | 258 278 937 | 27 680 | 25 828 | 1 342 308 | 1 542 880 |
Issued new share capital | 151 688 652 | 18 518 519 | 15 169 | 1 852 | 986 000 | 497 976 |
Transaction cost | (31 289) | (25 846) | ||||
Issued and paid, end of period | 428 486 108 | 276 797 456 | 42 849 | 27 680 | 2 297 019 | 2 015 010 |
Transferred to share premium | (672 702) | |||||
Net total | 2 297 019 | 1 342 308 |
Hexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024
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FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
| Number of | ||
shares | Shareholding | |
HEXAGON COMPOSITES ASA | 164 578 833 | 38.4% |
CLEARSTREAM BANKING S.A. | 59 675 053 | 13.9% |
Sumitomo Mitsui Trust Bank (U.S.A) 1 | 58 978 293 | 13.8% |
MP PENSJON PK | 12 804 281 | 3.0% |
The Bank of New York Mellon SA/NV | 11 307 883 | 2.6% |
FLAKK COMPOSITES AS | 10 268 728 | 2.4% |
Citibank Europe plc | 8 209 582 | 1.9% |
DNB Markets Aksjehandel/-analyse | 5 649 355 | 1.3% |
VERDIPAPIRFONDET DELPHI NORGE | 5 156 700 | 1.2% |
Deutsche Bank Aktiengesellschaft | 4 563 809 | 1.1% |
DANSKE BANK | 4 273 616 | 1.0% |
Nordnet Bank AB | 3 451 167 | 0.8% |
The Bank of New York Mellon SA/NV | 3 355 500 | 0.8% |
The Bank of New York Mellon | 3 021 755 | 0.7% |
NØDINGEN AS | 2 460 626 | 0.6% |
VERDIPAPIRFONDET STOREBRAND NORGE | 1 863 019 | 0.4% |
State Street Bank and Trust Comp | 1 861 878 | 0.4% |
Caceis Bank | 1 814 909 | 0.4% |
U.S. Bank National Association | 1 627 070 | 0.4% |
UBS Switzerland AG | 1 450 622 | 0.3% |
Total of 20 largest shareholders | 366 372 629 | 85.5% |
Remainder | 62 113 479 | 14.5% |
Total | 428 486 108 | 100.0% |
Note 23 Share-based payment
Programs
As of 31 December 2024, the Company had four share-based long-term incentive plans outstanding consisting of
performance share units (PSU) and restricted share units (RSU).
Performance share units programs
All PSUs are non-transferable and will vest subject to satisfaction of the applicable vesting conditions. The actual
number of PSUs vested will depend on performance and can vary from zero to the maximum awarded PSUs in
each program.
Restricted share units program
All RSUs are non-transferable and will vest subject to satisfaction of the applicable vesting conditions. The RSUs
are subject to continued employment three years after date of grant, and each participant will at such time
receive such number of Hexagon Purus shares as corresponds to the number of RSUs allocated to them.
The fair value of the RSUs and PSUs are calculated on the grant date, using Black-Scholes and Monte Carlo
simulation, and the cost is recognized over the service period. Cost of the RSU and PSU schemes, including social
security, was NOK 31.4 million full year in 2024 (NOK 24.4 million as of 31 December 2023). The unamortized fair
value of all outstanding RSUs and PSUs as of 31 December 2024 is estimated to be NOK 58.0 million (NOK 42.3
million).
There are no cash settlement obligations.
Hexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024
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FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
Performance share units’ programs (PSUs)
| LTIP 2025 - | ||||
| Issued | ||||
| LTIP 2022 - | LTIP 2023 - | LTIP 2024 - | December | |
| Issued 2022 | Issued 2023 | Issued 2024 | 2024 | |
Opening balance, number of instruments | 988 686 | 1 637 823 | - | - |
Grants | - | - | 1 925 000 | - |
Lapsed/cancelled | (15 000) | (52 000) | - | - |
Closing balance | 973 686 | 1 585 823 | 1 925 000 | - |
Fair value – at grant date (NOK) | 33.99 | 22.57 | 7.74 | - |
Vesting period | 3 years | 3 years | 3 years | - |
Expiry | Q1 2025 | Q1 2026 | Q1 2027 - |
Restricted share units’ programs (RSUs)
| LTIP 2025 - | ||||
| Issued | ||||
| LTIP 2022 - | LTIP 2023 - | LTIP 2024 - | December | |
| Issued 2022 | Issued 2023 | Issued 2024 | 2024 | |
Opening balance, number of instruments | 78 080 | 109 284 | - | - |
Grants | - | - | 960 000 | 4 840 000 |
Lapsed/cancelled | (5 000) | - | - | - |
Closing balance | 73 080 | 109 284 | 960 000 | 4 840 000 |
Fair value – at grant date (NOK) | 27.76 | 22.04 | 7.42 | 5.89 |
Vesting period | 3 years | 3 years | 3 years | 3 years |
Expiry | Q1 2025 | Q1 2026 | Q1 2027 | Q1 2028 |
(NOK 1 000) | Note | 2024 | 2023 |
| Profit/loss for the year flowing to holders of ordinary shares | |||
Profit/loss for the year | (1 109 795) | (672 702) | |
| Weighted average number of shares outstanding 31 December | |||
| Ordinary shares issued 01.01 | 23 | 276 797 456 | 258 278 937 |
Issued new shares | 151 688 652 | 18 518 519 | |
Outstanding number of shares 31.12 | 428 486 108 | 276 797 456 | |
Weighted average number of shares outstanding 31.12 1 | 302 774 819 | 273 804 052 | |
Profit/loss per share | (3.67) | (2.46) | |
| Diluted number of shares outstanding 31 December | |||
| Ordinary shares issued 01.01 | 23 | 276 797 456 | 258 278 937 |
Issued new shares | 151 688 652 | 18 518 519 | |
Outstanding shares 31.12 adjusted for dilution effects | 428 486 108 | 276 797 456 | |
| Weighted average number of shares outstanding | |||
31.12 adjusted for dilution effects | 302 774 819 | 273 804 052 | |
Diluted profit/loss per share | (3.67) | (2.46) |
Hexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024
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FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
Note 25 Interest-bearing liabilities
(NOK 1 000) | 2024 | 2023 |
Opening balance | 598 799 | 44 030 |
Exchange difference | 1 413 | 5 344 |
Repayment of loans | (5 260) | (20 000) |
Transaction cost and accrued interest | 208 548 | 62 834 |
Proceeds from new loans | 769 097 | 506 591 |
Closing balance 31 December | 1 572 597 | 598 799 |
Convertible debt issuance
The Company has two outstanding senior unsecured convertible bonds (2023/2028 and 2024/2029) amounting to
a face value of NOK 1 799 950 million at the respective time of issuance.
The 2023/2028 convertible bond with an outstanding amount of NOK 800 000 000 was issued in March 2023 and
carries a fixed interest rate of 6 per cent paid semi-annually in kind, through issuance of additional bonds. The
conversion price of the bond is set at NOK 33.75, and the conversion right can be exercised at any time between
the loan issue and the last conversion date, which is set to 16 March 2028, being the date which is 5 years after
the Shareholders’ Meeting that resolved the convertible bond. Mitsui & Co., Ltd. (“Mitsui”), which subscribed
for an amount of NOK 500 000 000 under the 2023/2028 convertible bond, entered into a 2-year lock-up on its
investment in the 2023/2028 convertible bond, under which it may not transfer its bonds during this time period.
Further, Mitsui entered into a 180-day lock-up for shares received upon conversion prior to 3 years from the
disbursement date of the 2023/2028 convertible bond, and a 90-day lock-up for shares received upon conversion
after 3 years from the disbursement date of the 2023/2028 convertible bond. Furthermore, Mitsui has entered
into an additional lock-up in respect of the 2023/2028 convertible bond and the 2024/2029 convertible bond, as
described below.
The 2024/2029 convertible bond with an outstanding amount of NOK 999 950 000 was issued in February 2024
and carries a fixed interest rate of 10 per cent paid semi-annually in kind, through issuance of additional bonds.
The conversion price of the bond is set at NOK 12.61, and the conversion right can be exercised at any time
between the loan issue and the last conversion date, which is set to 11 January 2029, being the date which is 5
years after the Shareholders’ Meeting that resolved the convertible bond. Mitsui, which subscribed for an amount
of NOK 500 000 000 under the 2024/2029 convertible bond, entered into a 2-year lock-up on its investment
in the 2024/2029 convertible bond, under which it may not transfer its bonds during this time period. Further,
Mitsui entered into a 180-day lock-up for shares received upon conversion prior to 3 years from the issue date
of the 2024/2029 convertible bond, and a 90-day lock-up for shares received upon conversion after 3 years from
the issue date of the 2024/2029 convertible bond. Furthermore, Mitsui has entered into an additional lock-up in
respect of the 2023/2028 convertible bond and the 2024/2029 convertible bond, as described below.
On 25 September 2024, the Company signed an agreement with Mitsui where the parties have agreed that
Mitsui shall not use a right to convert to ordinary shares or to dispose of any of its convertible bonds under
the 2023/2028 convertible bond or the 2024/2029 convertible bond, without the written consent of the Board
of Directors of the Company until the earlier of (i) the date on which the Company becomes profitable on a
Profit After Tax (PAT) basis (measured by PAT attributable to equity holders of the parent in the Company’s
group income statement), and (ii) 1 January 2028 for the 2023/2028 convertible bond and 1 January 2029 for the
2024/2029 convertible bond, respectively (together referred to as the “Additional Lock-up”). The Additional
Lock-up applies to Mitsui only, and the rights for other holders of the 2023/2028 convertible bond and 2024/2029
convertible bonds are as per the original convertible loan agreements. The Additional Lock-up shall not apply
in certain events, including the occurrence of a Corporate Transaction Event (as defined in the terms for the
convertible bonds), event of default or tender offer relating to the Company. The terms of the existing lock-up
undertakings provided by Mitsui, as described above, will remain in force.
The convertible bonds are compound financial instruments which contain an equity component and a debt
component. Upon initial recognition, the debt component is calculated as the discounted value of the bond
assuming no conversion with an approximate market interest rate for similar loans without the conversion feature
as the discount rate. For calculation purposes, a 15 per cent discount rate has been applied, yielding a fair value
at initial recognition of the debt component of NOK 521.6 million for the 2023/2028 bond and NOK 790.3 million
for the 2024/2029 bond. The equity component equals the residual difference between the fair value of the
convertible bond at issuance and the fair value of the debt component and amounts thus to NOK 278.4 million
for the 2023/2028 bond and NOK 209.7 million for the 2024/2029 bond. Transaction costs related to the bond
issue amounted to NOK 23.1 million for the 2023/2028 bond and NOK 26.8 million for the 2024/2029 bond and
have been capitalized pro rata between the debt and equity component. See summarized tables related to the
convertible bonds below.
Hexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024
162162
FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
2023/2028 Convertible bond
Convertible bond accounting reconciliation
| Amount | Amortized | Carrying | ||||
| Principal | Transaction | at initial | Accumulated | transaction | amount | |
| (NOK 1 000) | amount | costs | recognition | interests | costs | 31.12.2024 |
Liability component | 521 648 | (15 057) | 506 591 | 151 867 | 4 059 | 662 517 |
Equity component | 278 352 | (8 034) | 270 318 | - | - | 270 318 |
Total | 800 000 | (23 091) | 776 909 | 151 867 | 4 059 | 932 835 |
2024/2029 Convertible bond
Convertible bond accounting reconciliation
| Amount | Amortized | Carrying | ||||
| Principal | Transaction | at initial | Accumulated | transaction | amount | |
| (NOK 1 000) | amount | costs | recognition | interests | costs | 31.12.2024 |
Liability component | 790 290 | (21 193) | 769 097 | 112 369 | 2 939 | 881 466 |
Equity component | 209 660 | (5 622) | 204 037 | - | - | 204 037 |
Total | 999 950 | (26 815) | 973 134 | 112 369 | 2 939 | 1 085 503 |
Wystrach GmbH has three externally secured loans with Volksbank an der Niers eG and Deutsche Bank AG.
The loans have fixed interest rates, and maturity from 30.11.2025 to 30.03.2037. As of period end, there were no
breaches of the financial covenant under the financing agreements. Movements in the year on non-current and
current loans were primarily due to repayments and reclassifications.
Carrying amount
| Interest rate | |||||
| (NOK 1 000) | conditions | Currency | Maturity | 2024 | 2023 |
| Secured loans | |||||
Volksbank an der Niers eG | 1.55% | EUR | 30.09.2036 | 7 052 | 3 089 |
Deutsche Bank AG | 2.88% | EUR | 30.06.2033 | 16 280 | 16 781 |
Deutsche Bank AG | 1.79% | EUR | 30.11.2025 | 1 417 | 7 292 |
Total non-current liabilities, not including 1 st year’s instalments | 24 748 | 27 163 |
As of 31 December 2024
(NOK 1 000) | 2025 | 2026 | 2027 | 2028 | 2029 | Thereafter |
| Repayments | 3 345 | 1 929 | 1 929 | 1 929 | 1 929 | 13 686 |
structure for non-current lia- bilities (1 st year as current) |
Hexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024
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FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
Reconciliation for liabilities arising from financing activities
| Financial | Lease | ||
| (NOK 1 000) | liabilities | liabilities | Total |
Liabilities 1 January 2024 | 641 339 | 558 068 | 1 136 573 |
| Financing activities with cash settlement | |||
Repayment of loans and liabilities | (5 260) | - | (5 260) |
Repayment of lease liabilities | - | (43 022) | (43 022) |
Proceeds from loans and liabilities | 999 950 | - | 999 950 |
| Settlement of contingent consideration of business | |||
combination | (42 539) | - | (42 539) |
| Financing activities without cash settlement | |||
Accrued interest and transaction cost | 181 713 | - | 181 713 |
Equity component bond loan | (204 037) | - | (204 037) |
New lease liabilities | 67 008 | 67 008 | |
Disposals of lease liabilities | - | (34 782) | (34 782) |
Exchange differences | 1 431 | 45 563 | 46 994 |
Balance 31 December 2024 | 1 572 597 | 592 836 | 2 165 433 |
Liabilities 1 January 2023 | 158 871 | 154 710 | 313 580 |
| Financing activities with cash settlement | |||
Repayment of loans and liabilities | (105 693) | - | (105 693) |
Repayment of lease liabilities | - | (29 537) | (29 537) |
Proceeds from loans and liabilities | 776 909 | - | 776 909 |
| Financing activities without cash settlement | |||
Accrued interest and transaction cost | 62 834 | - | 62 834 |
Equity component bond loan | (270 318) | - | (270 318) |
New lease liabilities | 437 431 | 437 431 | |
Exchange differences | 18 736 | (4 536) | 14 200 |
Balance 31 December 2023 | 641 339 | 558 068 | 1 199 407 |
(NOK 1 000) | 2024 | 2023 |
| Secured current interest-bearing liabilities | ||
1 st year’s instalments, non-current interest-bearing liabilities | 3 346 | 2 317 |
Total | 3 346 | 2 317 |
1 st year’s instalments, lease liabilities | 49 994 | 39 930 |
(NOK 1 000) | 2024 | 2023 |
Public duties payable | 18 001 | 7 996 |
Accrued expenses and other current liabilities | 45 041 | 73 274 |
Other current liabilities | 61 569 | 49 900 |
Total | 124 611 | 131 170 |
Hexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024
164164
FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
Note 28 Related parties disclosure
The Income statement includes the following amounts resulting from transactions with Hexagon Composites
ASA Group
The Income statement includes the following amounts resulting from
transactions with Hexagon Composites ASA Group
(NOK 1 000) | 2024 | 2023 |
Sales revenue | 63 074 | 42 311 |
Cost of materials | 468 426 | 583 943 |
Other operating expenses | 54 218 | 39 461 |
Interest expenses from related parties | - | 1 525 |
The balance sheet includes the following amounts resulting from
transactions with Hexagon Composites ASA Group
(NOK 1 000) | 2024 | 2023 |
Trade receivables | 7 143 | 10 442 |
Trade payables | 23 123 | 157 908 |
Hexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024
165165
FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
| Total | ||||||
| Salaries | One-year | Employment | Paid pension | Multi-year | remuneration | |
| NOK 1 000 | and fees | variable 1 | benefits | premium | variable 2 | 2024 |
| Executive | ||||||
management | 21 845 | 11 796 | 643 | 1 310 | 17 213 | 52 806 |
Board of directors | 3 599 | - | - | - | - | 3 599 |
Total remuneration | 25 444 | 11 796 | 643 | 1 310 | 17 213 | 56 405 |
| Total | ||||||
| Salaries | One-year | Employment | Paid pension | Multi-year | remuneration | |
| NOK 1 000 | and fees | variable 1 | benefits | premium | variable 2 | 2023 |
| Executive | ||||||
management | 21 733 | 9 775 | 285 | 1 642 | 12 323 | 45 758 |
Board of directors | 2 548 | - | - | - | - | 2 548 |
Total remuneration | 24 281 | 9 775 | 285 | 1 642 | 12 323 | 48 306 |
2024 | 2023 | |
Espen Gundersen (Chairman) 1 | 45 619 | 45 619 |
Jon Erik Engeset 2 | 301 973 | 199 473 |
Rick Rashilla | 117 362 | 67 362 |
Knut Flakk 3 | na | na |
Karen Romer 5 | na | na |
Martha Kold Bakkevig | 4 124 | 4 124 |
Jannicke Hilland 3 | na | na |
Liv Fiksdahl 4 | - | - |
Susana Quintana-Plaza 4 | 2 334 | - |
Hidetomo Araki 4 | - | - |
Hexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024
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FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
2024 | 2023 | |
Morten Holum - President and CEO | 349 630 | 130 646 |
Salman Alam - CFO | 140 711 | 8 247 |
Dilip Warrier - EVP Strategic Projects 1 | - | 8 559 |
Michael Kleschinski - EVP Light duty, Distribution & Cylinders | 247 025 | 112 000 |
Todd Sloan - EVP Systems | 204 811 | 69 759 |
Anne Lise Hjelseth - EVP People & Culture | 84 715 | 41 237 |
Heiko Chudzick - EVP Operations 2 | 90 045 | 61 060 |
Frank Häberli - SVP Asia 3 | 60 664 | 60 664 |
(NOK 1 000) | 2024 | 2023 |
Statutory audit and auditing-related services | 8 294 | 4 544 |
Attestation services | 160 | 95 |
Tax advice | 225 | 324 |
Total | 8 679 | 4 963 |
Hexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024
167167
FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
(NOK 1 000) | 2024 | 2023 |
Income tax payable in the income statement | - | 1 770 |
Change in deferred tax in income statement | (7 379) | (6 063) |
Foreign exchange translation effects on tax expense | (1 898) | (3 501) |
Tax expense | (9 277) | (7 793) |
Income tax payable in the balance sheet | 346 | 509 |
Prepaid tax abroad in the balance sheet | - | 33 |
Settled tax not paid | (346) | (509) |
FX translation effects | - | 29 |
Other effects | - | 1 708 |
Total income tax payable in the income statement | - | 1 770 |
Nominal tax rates in Norway | 22% | 22% |
Profit before tax | (1 211 669) | (691 308) |
Tax based on nominal tax rate in Norway | (266 567) | (152 088) |
Varying foreign tax rates vs. Norwegian tax rate | (25 426) | (29 231) |
Other non-taxable income and non-taxable expenses | 76 079 | (168) |
Deferred tax asset not recognized in statement of financial position | 185 437 | 171 086 |
Interest deduction limitation | 17 788 | - |
Other differences relating to foreign subsidiaries | 356 | (384) |
Share of profit/loss from associates | 3 057 | 2 992 |
Tax expense from prior periods | - | - |
Tax expense in income statement | (9 277) | (7 793) |
Hexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024
168168
FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
Balance sheet | Change in deferred tax in income statement | |||
(NOK 1 000) | 2024 | 2023 | 2024 | 2023 |
| Deferred tax asset | ||||
Loss carried forward | (524 760) | (346 959) | (177 801) | (130 910) |
Property, plant & equipment | 27 406 | 9 012 | 18 395 | 9 012 |
Intangible assets | 5 765 | 12 | 5 753 | 12 |
Inventories | (9 423) | (6 429) | (2 994) | 1 817 |
Trade receivables | (145) | (163) | 17 | (163) |
Provisions for liabilities/other current liabilities | (9 879) | (7 547) | (2 332) | (128) |
Interest deduction limitation reserve carry forward | (23 760) | (5 352) | (18 408) | - |
Other | (14 907) | (2 791) | (11 146) | (2 088) |
Deferred tax asset– gross | (549 393) | (360 217) | (188 205) | (122 448) |
Reduction of tax assets due to uncertainty | 549 393 | 360 217 | 188 205 | 128 010 |
Deferred tax assets - net carrying amount | - | - | - | 5 562 |
| Deferred tax liabilities | ||||
Property, plant & equipment | 602 | 756 | (154) | (3 283) |
Intangible assets | 30 628 | 38 052 | (7 424) | (6 038) |
Trade receivables | - | - | - | (737) |
Provisions for liabilities/other current liabilities | (99) | (298) | 199 | (1 567) |
Deferred tax liabilities – gross | 31 131 | 38 510 | (7 379) | (11 624) |
Net recognized deferred tax liabilities/assets (-) | 31 131 | 38 510 | (7 379) | (6 063) |
| Carrying amounts | ||||
Deferred tax asset | - | - | ||
Deferred tax liabilities | 31 131 | 38 510 | ||
Net recognized deferred tax assets/ deferred tax liabilities | 31 131 | 38 510 |
Hexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024
169169
FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
(NOK 1 000) | 2024 | 2023 |
Actuarial gains/losses, pensions | - | - |
Derivatives | - | - |
Total | - | - |
(NOK 1 000) | 2024 | 2023 |
| Governmental grants related to income | ||
Governmental grants presented as income | - | - |
Governmental grants reducing R&D personnel cost | 23 902 | - |
Governmental grants presented as general cost reduction | 14 061 | 8 247 |
Total governmental grants related to income | 37 963 | 8 247 |
Investment grants | 23 732 | - |
Grant total governmental grants | 61 695 | 8 247 |
Hexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024
170170
FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
(NOK 1 000) | 2024 | 2023 |
First year | 105 333 | 262 135 |
Second year | 31 455 | 349 931 |
Thereafter | 5 902 | - |
Total | 142 690 | 612 066 |
(NOK 1 000) | 2024 | 2023 |
First year | 65 149 | 98 650 |
Second year | - | - |
Thereafter | - | - |
Total | 65 149 | 98 650 |
(NOK 1 000) | 2024 | 2023 |
First year | 87 570 | 78 313 |
Second year | 82 547 | 83 384 |
Thereafter | 643 094 | 645 251 |
Total | 813 210 | 806 948 |
Note 32 Events after the balance sheet date
There have not been any other significant events after the balance sheet date that have not been previously
disclosed in this report.
Hexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024
171171
FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
Income statement – Parent Company
HEXAGON PURUS ASA
1 JANUARY
–
31 DECEMBER
(NOK 1 000) Note 2024 2023
Revenue 2 100 472 156 855
Other revenue 1 006 960
Total operating income 101 478 157 815
Payroll & social security expenses
3,4,5 70 554 98 165
Depreciation 448 557
Other operating expenses
6 47 195 71 613
Total operating expenses 118 197 170 335
Operating profit (EBIT) (16 719) (12 520)
Finance income
7 153 032 123 859
Finance expense
7,8 2 057 563 162 202
Profit/loss on ordinary activities before tax (1 921 251) (50 864)
Tax
8 - -
Profit/loss on ordinary activities (1 921 251) (50 864)
Profit/loss for the year (1 921 251) (50 864)
Share premium (1 921 251) (50 864)
Total transferred (1 921 251) (50 864)
Hexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024
172172
FINANCIAL STATEMENTS | FINANCIAL STATEMENTS PARENT COMPANYFINANCIAL STATEMENTS | FINANCIAL STATEMENTS PARENT COMPANY
Balance sheet – Parent Company
HEXAGON PURUS ASA
(NOK 1 000) Note 31 Dec 2024 31 Dec 2023
ASSETS
Financial assets
Property, plant & equipment 306 754
Investments in subsidiaries
9 2 475 798 3 075 258
Investments in shares
9 21 016 54 755
Non-current receivables group companies
10 451 278 321 413
Non-current receivables 15 000 34 249
Total non-current assets 2 963 399 3 486 429
Current assets receivables
Other receivables group
2 124 461 95 414
Other receivables
2 928 1 029
Bank deposits, cash and cash equivalents
11 1 181 109 432 579
Total current assets 1 306 498 529 023
Total assets 4 269 897 4 015 452
(NOK 1 000) Note 31 Dec 2024 31 Dec 2023
EQUITY AND LIABILITIES EQUITY
Paid-in capital
Share capital
12 42 849 27 680
Share premium 2 104 029 3 070 568
Other paid-in capital 553 923 318 524
Total paid-in capital 2 700 801 3 416 772
Total equity
14 2 700 801 3 416 772
LIABILITIES
Non-current liabilities
Interest-bearing loans and borrowings 1 546 914 568 744
Total other non-current liabilities 1 546 914 568 744
Hexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024
173173
FINANCIAL STATEMENTS | FINANCIAL STATEMENTS PARENT COMPANYFINANCIAL STATEMENTS | FINANCIAL STATEMENTS PARENT COMPANY
(NOK 1 000) Note 31 Dec 2024 31 Dec 2023
Current liabilities
Trade payables 1 876 1 906
Trade payables to group companies
2 91 3 270
Public duties payable 5 519 7 002
Other current liabilities 14 694 17 758
Total non current liabilities 22 181 29 936
Total liabilities 1 569 096 598 680
Total equity and liabilities 4 269 897 4 015 452
Oslo, Norway, 26 March 2025
The Board of Directors of Hexagon Purus ASA
Espen Gundersen
Chair of the Board
Jon Erik Engeset
Board Member
Martha Kold Monclair
Board Member
Hidetomo Araki
Board Member
Susana Quintana-Plaza
Board Member
Liv Fiksdahl
Board Member
Rick Rashilla
Board Member
Morten Holum
President & CEO
Hexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024
174174
FINANCIAL STATEMENTS | FINANCIAL STATEMENTS PARENT COMPANYFINANCIAL STATEMENTS | FINANCIAL STATEMENTS PARENT COMPANY
Cash flow statement – Parent Company
HEXAGON PURUS ASA
1 JANUARY
–
31 DECEMBER
(NOK 1 000) Note 2024 2023
Cash flow from operating activities
Profit before tax (1 921 251) (50 864)
Depreciation 448 557
Share-based payment expense
4 15 755 24 368
Change in receivables (29 047) (78 406)
Changes in payables (30) (5 809)
Changes in other current items (71 838) 45 592
Imapairment of investment in subsidiaries
9 1 705 947 -
Imapairment of loan and investment in associates 88 891 -
Other financial items 153 478 -
Net cash flow from operating activities (57 645) (64 562)
Cash flow from investment activities
Investments in subsidiaries
9 (1 106 487) (987 607)
Investments in associated companies
9 - (10 136)
Loans to subsidiaries
2 - (90 873)
Loans to associates (30 720) (21 707)
Net cash flow from investing activities (1 137 207) (1 110 324)
(NOK 1 000) Note 2024 2023
Cash flow from financing activities
Changes in long term loans 999 500 800 000
Proceeds from issues of shares 1 001 169 500 000
Transaction costs (57 287) (26 018)
Net change in bank overdraft - -
Net cash flow from financing activities 1 943 383 1 273 982
Net change in cash & cash equivalents
11 748 530 99 096
Cash & cash equivalents at beginning of period 432 579 333 483
Cash & cash equivalents at end of period 1 181 110 432 579
Hexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024
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FINANCIAL STATEMENTS | FINANCIAL STATEMENTS PARENT COMPANYFINANCIAL STATEMENTS | FINANCIAL STATEMENTS PARENT COMPANY
Notes – Parent Company
HEXAGON PURUS ASA
Note 1 Basis of preparation
The annual accounts have been prepared in accordance with the provisions of the Norwegian Accounting Act and
generally accepted accounting principles in Norway.
Use of estimates
Preparation of the annual financial statements in accordance with good accounting practice requires the use of
estimates and assumptions by management which influence the income statement and the valuation of assets
and liabilities, and disclosures on uncertain assets and obligations at the balance sheet date.
Contingent losses which are probable and quantifiable, are expensed as incurred.
.
Note 2 Intra-group transactions and balances
Accounting principles
Receivables
Trade and other receivables are recognized in
the balance sheet at their nominal value, fol-
lowing deductions for provisions for expected
losses. Provisions for losses are made on the
basis of the individual claims.
Interest-bearing loans and borrowing costs
Loans are recognized at the initial amount
received less directly related transaction costs.
In subsequent periods, interest- bearing loans
are measured at amortized cost using the
effective interest method. Profit and loss are
entered in the income statement when liabil-
ities are deducted from the balance and via
amortization. Borrowing costs are expensed as
they arise.
Intra-Group transactions and balances
(NOK 1 000) 2024 2023
Income
Administrative services
to subsidiaries 100 472 156 855
Total 100 472 156 855
Receivables and loans
Loans to group companies 451 278 321 413
Other receivables Group 124 461 95 414
Total 575 739 416 827
Liabilities
Liabilities to group
companies - current 91 3 270
Total 91 3 270
Hexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024
176176
FINANCIAL STATEMENTS | FINANCIAL STATEMENTS PARENT COMPANYFINANCIAL STATEMENTS | FINANCIAL STATEMENTS PARENT COMPANY
Note 3 Payroll, number of employees, remuneration, loans to employees etc.
Payroll costs
(NOK 1 000) 2024 2023
Wages/salaries and fees 27 451 24 763
Share-pased payments/bonuses 22 272 35 268
Employer’s contribution 6 497 7 822
Contracted personnel 6 726 25 143
Board remuneration 2 604 2 548
Pension expense 2 717 2 347
Other contributions 2 288 274
Total 70 554 98 165
There were 20 (19 in 2023) employees in the Company during the financial year. Some key personnel are con-
tracted from subsidiaries in the Group and are presented here as contracted personnel.
(NOK 1 000)
Salaries
and fees
One-year
variable
1
Employment
benefits
Paid pension
premium
Multi-year
variable
2
Total
remuneration
2024
Executive management 21 845 11 796 643 1 310 17 213 52 806
Board of Directors 3 599 - - - - 3 599
Total remuneration 25 444 11 796 643 1 310 17 213 56 405
2023
Executive management 21 733 9 775 285 1 642 12 323 45 758
Board of Directors 2 548 - - - - 2 548
Total remuneration 24 281 9 775 285 1 642 12 323 48 306
1
Bonuses earned in the financial year
2
Calculated value of the instruments at grant date, distributed over the vesting period
The Chair of the Board of Directors has no agreement relating to termination benefits. In his employment
agreement, the Group CEO has a period of notice of 6 months and an agreement for up to 12 months' severance
pay. The executive management of the Group have target-based bonus agreements. For further details, see
Remuneration Report for Hexagon Purus ASA.
Group management participates in the Company's general pension arrangements, which are described in
Note 21 Pensions. The Group CEO participates in the Group's defined contribution plan.
Group management participate in the Company's share-based incentive schemes, which are described in
note 23. As of 31 December 2024 the Group CEO holds 350 (131) thousand shares, has 423 (370) thousand
provisional performance share units (PSUs) outstanding, and 1 400 (73) thousand restricted share units (RSUs)
outstanding. In addition, the Group CEO holds 34 (34) thousand provisional performance share units in Hexagon
Composites ASA. The Group CFO holds 1 060 (60) thousand restricted share units (RSUs), and 315 (165) thousand
provisional performance share units (PSUs) outstanding as per 31 December 2024.
No loans have been made, or security provided for loans, to any member of Group management, the Board of
Directors or other elected standing committees or any of their related parties.
Hexagon Purus ASA | Annual report 2024Hexagon Purus ASA | Annual report 2024
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FINANCIAL STATEMENTS | FINANCIAL STATEMENTS PARENT COMPANYFINANCIAL STATEMENTS | FINANCIAL STATEMENTS PARENT COMPANY
Shares owned by board members or related parties
2024 2023
Espen Gundersen (Chairman)
1
45 619 45 619
Jon Erik Engeset
2
301 973 199 473
Rick Rashilla 117 362 67 362
Knut Flakk
3
na na
Karen Romer
5
na na
Martha Kold Bakkevig 4 124 4 124
Jannicke Hilland
3
na na
Liv Fiksdahl
4
- -
Susana Quintana-Plaza
4
2 334 -
Hidetomo Araki
4
- -
1
Chairman of the board from 25 May 2023, Board member until 25 May 2023
2
Board member from 25 May 2023, Chairmen of the board until 25 May 2023
3
Board member until 16 March 2023
4
Board member from 25 May 2023
5
Board member until 25 May 2023
Shares held by key management personnel
2024 2023
Morten Holum - President and CEO 349 630 130 646
Salman Alam - CFO 140 711 8 247
Dilip Warrier - EVP Strategic Projects
1
- 8 559
Michael Kleschinski - EVP Light duty, Distribution & Cylinders 247 025 112 000
Todd Sloan - EVP Systems 204 811 69 759
Anne Lise Hjelseth - EVP People & Culture 84 715 41 237
Heiko Chudzick - EVP Operations 90 045 61 060
Frank Häberli - SVP Asia 60 664 60 664
1
Dilip Warrier resigned on 1 May 2024.
2
Heiko Chudzick transitioned into a non-executive role during Q4 2024.
3
Frank Häberli entered a non-executive role from 15 August 2024.
Expensed auditors’ fees and comprised of the following services (not including VAT)
(NOK 1 000) 2024 2023
Statutory audit and auditing-related services 4 700 2 858
Attestation services 160 95
Tax advice 141 248
Total 4 647 3 201
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Note 4 Share-based payment
Accounting principles
Share based payment are accounted for in
accordance with NRS 15A, applying IFRS 2
under Norwegian Legislation. The fair value of
share options and PSUs are measured at the
grant date and the cost is recognized, together
with a corresponding increase in other paid-in
capital, over the period in which the perfor-
mance and/or service conditions are fulfilled.
The fair value is calculated using the Black &
Scholes model. The employer’s contribution
is accrued over the period in which the service
conditions are fulfilled, based on the intrinsic
value.
Programs
As of 31 December 2024, the Company had four
share-based long-term incentive plans outstanding
consisting of performance share units (PSU) and
restricted share units (RSU).
Performance share units programs
All PSUs are non-transferable and will vest subject
to satisfaction of the applicable vesting conditions.
The actual number of PSUs vested will depend
on performance and can vary from zero to the
maximum awarded PSUs in each program.
Restricted share units program
All RSUs are non-transferable and will vest subject
to satisfaction of the applicable vesting conditions.
The RSUs are subject to continued employment
three years after date of grant, and each participant
will at such time receive such number of Hexagon
Purus shares as corresponds to the number of RSUs
allocated to them.
The fair value of the RSUs and PSUs are calculated
on the grant date, using Black-Scholes and Monte
Carlo simulation, and the cost is recognized over the
service period. Cost of the RSU and PSU schemes,
including social security, was NOK 31.4 million full
year in 2024 (NOK 24.8 million as of 31 December
2023). The unamortized fair value of all outstanding
RSUs and PSUs as of 31 December 2024 is estimated
to be NOK 58.0 million (NOK 42.3 million).
There are no cash settlement obligations.
Performance share units’ programs (PSUs)
LTIP 2022 -
Issued 2022
LTIP 2023 -
Issued 2023
LTIP 2024 -
Issued 2024
LTIP 2025 -
Issued
December 2024
Opening balance, number of instruments 988 686 1 637 823 - -
Grants - - 1 925 000 -
Lapsed/cancelled (15 000) (52 000) - -
Closing balance 973 686 1 585 823 1 925 000 -
Fair value – at grant date (NOK) 33.99 22.57 7.74 -
Expiry Q1 2025 Q1 2026 Q1 2027 -
Restricted share units’ programs (RSUs)
LTIP 2022 -
Issued 2022
LTIP 2023 -
Issued 2023
LTIP 2024 -
Issued 2024
LTIP 2025 -
Issued
December 2024
Opening balance, number of instruments 78 080 109 284 - -
Grants - - 960 000 4 840 000
Lapsed/cancelled (5 000) - - -
Closing balance 73 080 109 284 960 000 4 840 000
Fair value – at grant date (NOK) 27.76 22.04 7.42 5.89
Vesting period 3 years 3 years 3 years 3 years
Expiry Q1 2025 Q1 2026 Q1 2027 Q1 2028
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Note 5 Pensions and benefit obligations
Accounting principles:
Pension premiums relating to defined contribution plans are recognized as an expense as they are incurred.
Pension
The Company is legally obliged to have occupational pension arrangements under the Norwegian Mandatory
Occupational Pension Act. The Company's pension arrangements satisfy the requirements of this Act.
The parent Company’s pension arrangements cover 20 (19) employees.
The defined contribution pension plan's contribution rates is 7% for salaries in the range of up to 7.1 times the
national insurance base rate (G) and 25.1 per cent for salaries in the range 7.1 to 12 G. Contributions for the year
were expensed at NOK 2 717 thousand (NOK 2 347 thousand) , excluding employer’s contributions.
Note 6 Other operating expenses
(NOK 1 000) 2024 2023
Rental of facility 4 153 4 097
Professional fees 20 314 46 098
Travel and living 5 572 5 271
Insurance 6 825 3 900
Other 10 330 12 247
Other operating expeses 47 195 71 613
Note 7 Net financial items
Finance income
(NOK 1 000) 2024 2023
Interest income from group companies 21 591 25 022
Other interest income 42 236 30 858
Other finance income (currency gains) 89 205 67 978
Total finance income 153 032 123 859
Finance expense
(NOK 1 000) 2024 2023
Other interest expenses 208 597 69 953
Currency losses 51 875 88 093
Impairment of investment in subsidiaries 1 705 947 -
Impairment of investment is associate 88 891 -
Other finance expense 2 252 4 155
Total finance expense 2 057 563 162 202
See note 9 for more information related to impairment of shares in subsidiaries.
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Note 8 Tax
Accounting principles
Tax expense in the income statement includes income tax payable for the period and changes in deferred
tax. Deferred tax is calculated at 22% based on the temporary differences between accounting and fiscal
values and loss carry forwards at the end of the financial year.
Tax expense for the year consists of
(NOK 1 000) 2024 2023
Income tax payable - -
Change in deferred tax - -
Total tax expense - -
Calculation of tax base for the year
(NOK 1 000) 2024 2023
Profit before tax (1 921 251) (50 864)
Permanent differences 1 848 630 24 700
Change in temporary differences (12 167) (5 000)
Interest deduction limitation 80 853 -
Change in loss carryforwards 3 934 31 164
Tax base for the year - -
Overview of temporary differences
(NOK 1 000) 2024 2023
Receivables
Non-current assets (543) (307)
Provisions 14 489 2 087
Interest deduction limitation (80 853) -
Loss carryforwards (139 614) (135 680)
Deferred tax asset not recognised in statement of financial position 206 521 133 900
Total - -
Deferred tax 22% - -
The company has an interest deduction limitation reserve carry forward of NOK 80.9 million. This reserve expires
in 10 years.
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Note 9 Shares in subsidiaries and associates
Accounting principles
In the company accounts, the cost method of accounting is used for all shares. All shares are valued at cost,
less accumulated impairment losses, in the company accounts.
Subsidiaries
(NOK 1 000) Registered office
Ownership
share
Voting
share
Carrying
amount
Hexagon Technology H2 AS Ålesund, Norway 100% 100% 138 030
Hexagon Purus HK AS Ålesund, Norway 100% 100% 27 030
Hexagon Purus Maritime AS Ålesund, Norway 100% 100% 37 000
Hexagon Purus Germany Holding GmbH Herford, Germany 100% 100% 1 012 201
Hexagon Purus NA Holding Inc. USA 100% 100% 1 261 537
Hexagon Purus Beijing Beijing, China 100% 100% 29 808
Total 2 475 798
Due to impairment indicators as a more uncertain near-term market outlook and a market capitalization of the
Group that has fallen below the book value of equity, impairment tests have been performed for group assets.
Based on the result of these impairment tests, equity values are calculated for the shares held by Hexagon Purus
ASA. The calculation of equity value resulted in an impairment of the shares in Hexagon Purus Germany Holding
GmbH of NOK 1 455 million and Hexagon Purus NA Holding Inc. of NOK 251 million. See note 9 in the consoli-
dated accounts for information regarding the impairment tests.
Equity and profit/loss as reported in most recent annual accounts of subsidiaries (company)
(NOK 1 000)
Hexagon
Technology H2 AS
Hexagon
Purus HK AS
Hexagon Purus
Maritime AS
Hexgon Purus Germany
Holding Gmbh
Hexagon Purus
NA Holding Inc.
Cost of acquisition 138 030 27 030 37 000 2 466 826 1 512 859
Equity at 31.12.2024 68 900 (845) 3 737 2 495 765 1 705 948
Profit 2024 (1 470) (18 243) (14 556) 2 207 -
Investments in associates and other investments
(NOK 1 000)
Registered
office
Ownership
share
Voting
share
Carrying
amount
Norwegian Hydrogen AS Norway 12.2% 12.2% 21 016
Cryoshelter LH2 GmbH Dobl-Zwaring, Austria 40% 40% -
On 1 August 2022, Hexagon Purus made a EUR 3.4 million investment and acquired 40% of the shares in
Cryoshelter LH2 GmbH, with options to acquire the remaining shares over the next 5-10 years. The said options
do not give rise to any de-facto control and the investment is consequently accounted for by using the equity
method effective from 1 August 2022.
During the fourth quarter of 2024, it was decided to seize the funding to Cryoshelter LH2 GmbH and end
the development of liquid hydrogen storage technology. The company has initiated insolvency proceedings.
Consequently, an impairment charge of NOK 34 million related to the Company’s shareholding in Cryoshelter
and an impairment charge of NOK 55 million related to outstanding debt to Cryoshelter was taken during the
quarter.
Share of equity and profit/loss as reported in most recent annual accounts of associates
NOK 1 000) Cryoshelter LH2 GmbH
Cost of acquisition 33 738
Equity at 31.12.2024 (39 098)
Profit 2024 (22 599)
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Note 10 Non-current receivables
(NOK 1 000) 2024 2023
Due for payment after 1 year
Loans to group companies 451 278 304 785
Loans to associated companies
1
- 32 427
Loan to other investments
2
15 000 -
Total 466 278 337 212
1
Loan to Cryoshelter LH2 GmbH. This loan is written down to zero per 31 December 2024.
2
Loan to Norwegian Hydrogen AS
Note 11 Bank deposits
Accounting principles
The cash flow statement has been prepared using the indirect method. Cash & cash equivalents include
cash and bank deposits.
(NOK 1 000) 2024 2023
Restricted tax withholdings 13 316 3 208
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Note 12 Share capital and shareholder information
Share capital consists of
(Amounts in NOK) Number Nominal
Carrying
amount
A shares 428 486 108 0.10 42 848 611
The Company's share capital consists of one class of shares and is fully paid-up.
20 Largest shareholders as of 31 December 2024
Number of shares Shareholding
HEXAGON COMPOSITES ASA 164 578 833 38.4%
CLEARSTREAM BANKING S.A. 59 675 053 13.9%
Sumitomo Mitsui Trust Bank (U.S.A)1) 58 978 293 13.8%
MP PENSJON PK 12 804 281 3.0%
The Bank of New York Mellon SA/NV 11 307 883 2.6%
FLAKK COMPOSITES AS 10 268 728 2.4%
Citibank Europe plc 8 209 582 1.9%
DNB Markets Aksjehandel/-analyse 5 649 355 1.3%
VERDIPAPIRFONDET DELPHI NORGE 5 156 700 1.2%
Deutsche Bank Aktiengesellschaft 4 563 809 1.1%
DANSKE BANK 4 273 616 1.0%
Nordnet Bank AB 3 451 167 0.8%
The Bank of New York Mellon SA/NV 3 355 500 0.8%
The Bank of New York Mellon 3 021 755 0.7%
NØDINGEN AS 2 460 626 0.6%
VERDIPAPIRFONDET STOREBRAND NORGE 1 863 019 0.4%
State Street Bank and Trust Comp 1 861 878 0.4%
Caceis Bank 1 814 909 0.4%
U.S. Bank National Association 1 627 070 0.4%
UBS Switzerland AG 1 450 622 0.3%
Total 20 largest shareholders 366 372 679 85.5%
Remainder 62 113 479 14.5%
Total 428 486 108 100.00%
The total number of shareholders as of 31 December 2024 was 6 910 of whom 457 were foreign shareholders. The
number of shares held by foreign shareholders was 182 115 531 or 42.5%.
The Board proposes to the general assembly that there will be no dividend to be paid for the fiscal year 2024.
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Note 13 Financial market risk
Accounting Policy
Foreign currency transactions are recognized at the exchange rate prevailing at the transaction date.
Foreign currency monetary items are valued using the exchange rate prevailing at the balance sheet date.
Currency gains/losses on receivables/liabilities are classified as financial items.
The Company's international activities expose it to currency risk and interest risk. Derivative financial instru-
ments are used to minimize these risks under the Group's strategy for interest and currency exposure.
Interest rate risk
Interest rate risk arises in the short and medium term from its financing activities. The convertible bond loan have
fixed interest rates, which means it is not affected by changes in interest rates. The Company has substantial
amounts in bank deposits at year-end. The risk related to this, is considered limited.
Currency risk
Fluctuations in exchange rates represent a financial risk to the Company, both directly and indirectly. The
Company have used currency swaps and borrows in foreign currency to minimize the risk.
Also refer to note 19 of the consolidated financial statements.
Note 14 Equity
(NOK 1 000)
Issued
capital
Share
premium
Other paid
in capital
Total
equity
Equity as of 01.01.2024 27 679 3 070 568 318 524 3 416 772
Profit/loss for the year (1 921 251) (1 921 251)
Share-based payments 31 363 31 363
Share capital increase 15 169 986 000 1 001 169
Equity portion of convertible debt 209 660 209 660
Transaction costs (31 289) (5 622) (36 911)
Equity at 31.12.2024 42 849 2 104 029 553 923 2 700 801
(NOK 1 000)
Issued
capital
Share
premium
Other paid
in capital
Total
equity
Equity as of 01.01.2023 25 827 2 649 302 23 839 2 698 969
Profit/loss for the year (50 864) (50 864)
Share-based payments 24 368 24 368
Share capital increase 1 852 498 148 500 000
Equity portion of convertible debt 278 352 278 352
Transaction costs (26 018) (8 034) (34 052)
Equity at 31.12.2023 27 679 3 070 568 318 524 3 416 772
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On 1 March 2023, the Company announced the issuance of 18 518 519 new shares in a private placement at the
price of NOK 27.00 per share. The Company raised approximately NOK 500 million in gross proceeds.
In the fourth quarter of 2024, the Company issued 145 000 000 new shares in a private placement at the price of
NOK 6.90 per share. The Company raised approximately NOK 1 000 million in gross proceeds.
In connection with the issuance of the 2023/2028 and the 2024/2029 convertible bonds, the Company issued a
total of 370 million warrants and 18.5 million additional warrants. Each warrant represents a right for the sub-
scriber to subscribe for one new ordinary share in the Company if there is a capital increase. The subscription
price per share when exercising the Warrants shall equal the subscription price per share in the relevant capital
increase as the Warrants are exercised in connection with. These warrants are classified as debt instruments with
a fair value of NOK 0 as the subscription price is equal to market value. For the additional warrants the subscrip-
tion price per share shall equal the par value of the Company’s shares at the relevant date. These warrants are
classified as equity instruments combined with the equity portion of the convertible debt. During 2024 5 778 910
additional warrants were exercised.
Note 15 Events after the balance sheet date
There have not been any other significant events after the balance sheet date that have not been previously
disclosed in this report.
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Statsautoriserte revisorer
Ernst & Young AS
Stortorvet 7, 0155 Oslo
Postboks 1156 Sentrum, 0107 Oslo
Foretaksregisteret: NO 976 389 387 MVA
Tlf: +47 24 00 24 00
www.ey.no
Medlemmer av Den norske Revisorforening
A member firm of Ernst & Young Global Limited
To the Annual Shareholder’s Meeting of Hexagon Purus ASA
INDEPENDENT AUDITOR'S REPORT
Report on the audit of the financial statements
Opinion
We have audited the financial statements of Hexagon Purus ASA (the Company) which comprise:
The financial statements of the Company, which comprise the balance sheet as at 31 December 2024 and the income statement and cash flow
statement for the year then ended and notes to the financial statements, including a summary of significant accounting policies, and
The financial statements of the Group, which comprise the statement of financial position as at 31 December 2024, the income statement, statement of
comprehensive income, cash flow statement and statement of changes in equity for the year then ended and notes to the financial statements, including
material accounting policy information.
In our opinion:
the financial statements comply with applicable statutory requirements,
the financial statements give a true and fair view of the financial position of the Company as at 31 December 2024 and its financial performance and cash
flows for the year then ended in accordance with the Norwegian Accounting Act and accounting standards and practices generally accepted in Norway,
and
the consolidated financial statements give a true and fair view of the financial position of the Group as at 31 December 2024 and its financial performance
and cash flows for the year then ended in accordance with IFRS Accounting Standards as adopted by the EU.
Our opinion is consistent with our additional report to the audit committee.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the
Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Company and the Group in accordance with the
requirements of the relevant laws and regulations in Norway and the International Ethics Standards Board for Accountants’ International Code of Ethics for
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2
Independent auditor's report - Hexagon Purus ASA 2024
A member firm of Ernst & Young Global Limited
Professional Accountants (including International Independence Standards) (the IESBA Code), and we have fulfilled our other ethical responsibilities in
accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
To the best of our knowledge and belief, no prohibited non-audit services referred to in the Audit Regulation (537/2014) Article 5.1 have been provided.
We have been the auditor of the Company for seven years from the election by the general meeting of the shareholders in 2018 for the accounting year 2018.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements for 2024. These matters
were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion
on these matters.
Assessment of impairment
Basis for the key audit matter
As of 31 December 2024, the carrying amount of Goodwill amounted to NOK
360 million, while Property, Plant, and Equipment amounted to NOK 1 204
million. These figures represent approximately 7% and 24% of the total
assets, respectively.
The Group conducted impairment testing of Goodwill and cash-generating
units (CGU) with impairment indicators to estimate the recoverable amounts.
As a result, an impairment charge of NOK 227 million was recorded for
goodwill allocated to the CGU HMI Europe, and an impairment charge of
NOK 121 million was recorded for Property, Plant and Equipment in the CGU
China Cylinder Production Company.
Estimating recoverable amounts involve significant estimation uncertainties
and management's judgments, which includes projections of future sales,
EBITDA margins, growth rates, capital expenditures and discount rates.
Management's assessment of impairment was identified as a key audit
matter due to the significant estimates and judgments involved and the
uncertainties associated with these estimates.
Our audit response
We assessed the internal controls related to the impairment assessment and
evaluated the appropriateness of the valuation methodology applied. We
compared future cash flows against board approved budget for 2025 and
2026 and management long term plan for the years 2027 – 2029. We
considered underlying assumptions for expected growth rates and the related
cash flows and examined the accuracy of management's estimates from the
prior year. Additionally, we tested the assumptions for the weighted average
cost of capital against comparable market data and considered
management's adjustments for company-specific factors. We also verified
the mathematical accuracy of the impairment models and conducted
sensitivity analyses for the key assumptions. Finally, we assessed the
disclosures in Note 9 of the financial statements.
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3
Independent auditor's report - Hexagon Purus ASA 2024
A member firm of Ernst & Young Global Limited
Other information
The Board of Directors and the President & CEO (management) is responsible for the information in the Board of Directors’ report and the other information
presented with the financial statements. Other information consists of the information included in the annual report other than the financial statements and our
auditor’s report thereon. Our opinion on the financial statements does not cover the information in the Board of Directors’ report and the other information
presented with the financial statements.
In connection with our audit of the financial statements, our responsibility is to read the information in the Board of Directors’ report and for the other information
presented with the financial statements. The purpose is to consider if there is material inconsistency between the information in the Board of Directors’ report and
the other information presented with the financial statements and the financial statements or our knowledge obtained in the audit, or otherwise the information in
the Board of Directors’ report and for the other information presented with the financial statements otherwise appears to be materially misstated. We are required
to report if there is a material misstatement in the Board of Directors’ report and the other information presented with the financial statements. We have nothing to
report in this regard.
Based on our knowledge obtained in the audit, it is our opinion that the Board of Directors’ report
is consistent with the financial statements and
contains the information required by applicable statutory requirements.
Our statement on the Board of Directors’ report applies correspondingly for the statement on Corporate Governance.
Our statement that the Board of Directors’ report contains the information required by applicable law does not cover the sustainability report, for which a separate
assurance report is issued.
Responsibilities of management for the financial statements
Management is responsible for the preparation of the financial statements of the Company that give a true and fair view in accordance with the Norwegian
Accounting Act and accounting standards and practices generally accepted in Norway, and for the preparation of the consolidated financial statements of the
Group that give a true and fair view in accordance with IFRS Accounting Standards as adopted by the EU. Management is responsible for such internal control as
management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
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Independent auditor's report - Hexagon Purus ASA 2024
A member firm of Ernst & Young Global Limited
In preparing the financial statements, management is responsible for assessing the Company’s and the Group’s ability to continue as a going concern, disclosing,
as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or
the Group, or to cease operations, or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud
or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit
conducted in accordance with ISAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for
the purpose of expressing an opinion on the effectiveness of the Company’s and the Group’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by
management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a
material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s and the Group’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the
financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the
date of our auditor’s report. However, future events or conditions may cause the Company and the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements
represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion
on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely
responsible for our audit opinion.
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Independent auditor's report - Hexagon Purus ASA 2024
A member firm of Ernst & Young Global Limited
We communicate with the board of directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including
any significant deficiencies in internal control that we identify during our audit.
We also provide the audit committee with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate
with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the board of directors, we determine those matters that were of most significance in the audit of the financial statements of
the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on other legal and regulatory requirement
Report on compliance with regulation on European Single Electronic Format (ESEF)
Opinion
As part of the audit of the financial statements of Hexagon Purus ASA we have performed an assurance engagement to obtain reasonable assurance about
whether the financial statements included in the annual report, with the file name hexagonpurusasa-2024-12-31-0-en, have been prepared, in all material
respects, in compliance with the requirements of the Commission Delegated Regulation (EU) 2019/815 on the European Single Electronic Format (the ESEF
Regulation) and regulation pursuant to Section 5-5 of the Norwegian Securities Trading Act, which includes requirements related to the preparation of the annual
report in XHTML format and iXBRL tagging of the consolidated financial statements.
In our opinion, the financial statements, included in the annual report, have been prepared, in all material respects, in compliance with the ESEF Regulation.
Management’s responsibilities
Management is responsible for the preparation of the annual report in compliance with the ESEF Regulation. This responsibility comprises an adequate process
and such internal control as management determines is necessary.
Auditor’s responsibilities
Our responsibility, based on audit evidence obtained, is to express an opinion on whether, in all material respects, the financial statements included in the annual
report have been prepared in accordance with the ESEF Regulation. We conduct our work in accordance with the International Standard for Assurance
Engagements (ISAE) 3000 – “Assurance engagements other than audits or reviews of historical financial information”. The standard requires us to plan and
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perform procedures to obtain reasonable assurance about whether the financial statements included in the annual report have been prepared in accordance with
the ESEF Regulation.
As part of our work, we perform procedures to obtain an understanding of the company’s processes for preparing the financial statements in accordance with the
ESEF Regulation. We test whether the financial statements are presented in XHTML-format. We evaluate the completeness and accuracy of the iXBRL tagging
of the consolidated financial statements and assess management’s use of judgement. Our procedures include reconciliation of the iXBRL tagged data with the
audited financial statements in human-readable format. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Oslo, 27 March 2025
ERNST & YOUNG AS
Erik Søreng
State Authorised Public Accountant (Norway)
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Statsautoriserte revisorer
Ernst & Young AS
Stortorvet 7, 0155 Oslo
Postboks 1156 Sentrum, 0107 Oslo
Foretaksregisteret: NO 976 389 387 MVA
Tlf: +47 24 00 24 00
www.ey.no
Medlemmer av Den norske Revisorforening
A member firm of Ernst & Young Global Limited
To the Annual Shareholder’s Meeting of Hexagon Purus ASA
INDEPENDENT SUSTAINABILITY AUDITOR’S LIMITED ASSURANCE REPORT
Qualified limited assurance conclusion
We have conducted a limited assurance engagement on the consolidated sustainability statement of Hexagon Purus ASA (the “Company”), included in
Sustainability Statement of the Board of Directors’ report (the “Sustainability Statement”), as at 31 December 2024 and for the year then ended.
Based on the procedures we have performed and the evidence we have obtained, except for the possible effects of the matter described in the Basis for qualified
conclusion section of our report, nothing has come to our attention that causes us to believe that the Sustainability Statement is not prepared, in all material
respects, in accordance with the Norwegian Accounting Act section 2-3, including:
• compliance with the European Sustainability Reporting Standards (ESRS), including that the process carried out by the Company to identify the
information reported in the Sustainability Statement (the “Process”) is in accordance with the description set out in disclosure ESRS 2 IRO-1 “Double
materiality assessment”; and
• compliance of the disclosures in “EU Taxonomy Reporting” within the environmental section of the Sustainability Statement with Article 8 of EU
Regulation 2020/852 (the “Taxonomy Regulation”).
Basis for qualified conclusion
The Company has disclosed in section “ESRS index” that it does not have the sufficient data to report on the disclosure requirements under ESRS E5-4.
Consequently, we were unable to obtain sufficient appropriate evidence about the Company’s resource inflow for the year ended 31 December 2024, and we are
as a result not able to give a conclusion in respect of the disclosure requirements under ESRS E5-4.
We conducted our limited assurance engagement in accordance with International Standard on Assurance Engagements (ISAE) 3000 (Revised), Assurance
engagements other than audits or reviews of historical financial information (“ISAE 3000 (Revised)”), issued by the International Auditing and Assurance
Standards Board.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our qualified conclusion. Our responsibilities under this
standard are further described in the Sustainability auditor’s responsibilities section of our report.
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Our independence and quality management
We have complied with the independence and other ethical requirements as required by relevant laws and regulations in Norway and the International Code of
Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA
Code), which is founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behavior.
The firm applies International Standard on Quality Management 1, which requires the firm to design, implement and operate a system of quality management
including policies or procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.
Other matter
The comparative information included in the Sustainability Statement was not subject to an assurance engagement. Our conclusion is not modified in respect of
this matter.
Responsibilities for the Sustainability Statement
The Board of Directors and the Managing Director (management) are responsible for designing and implementing a process to identify the information reported in
the Sustainability Statement in accordance with the ESRS and for disclosing this Process in disclosure ESRS 2 IRO-1 of the Sustainability Statement. This
responsibility includes:
• understanding the context in which the Group’s activities and business relationships take place and developing an understanding of its affected
stakeholders;
• the identification of the actual and potential impacts (both negative and positive) related to sustainability matters, as well as risks and opportunities that
affect, or could reasonably be expected to affect, the Group’s financial position, financial performance, cash flows, access to finance or cost of capital
over the short-, medium-, or long-term;
• the assessment of the materiality of the identified impacts, risks and opportunities related to sustainability matters by selecting and applying appropriate
thresholds; and
• making assumptions that are reasonable in the circumstances.
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Management is further responsible for the preparation of the Sustainability Statement, in accordance with the Norwegian Accounting Act section 2-3, including:
• compliance with the ESRS;
• preparing the disclosures in subsection “EU Taxonomy Reporting” within the environmental section of the Sustainability Statement, in compliance with
the Taxonomy Regulation;
• designing, implementing and maintaining such internal control that management determines is necessary to enable the preparation of the Sustainability
Statement that is free from material misstatement, whether due to fraud or error; and
• the selection and application of appropriate sustainability reporting methods and making assumptions and estimates that are reasonable in the
circumstances.
Inherent limitations in preparing the Sustainability Statement
In reporting forward-looking information in accordance with ESRS, management is required to prepare the forward-looking information on the basis of disclosed
assumptions about events that may occur in the future and possible future actions by the Group. Actual outcomes are likely to be different since anticipated
events frequently do not occur as expected.
Sustainability auditor’s responsibilities
Our responsibility is to plan and perform the assurance engagement to obtain limited assurance about whether the Sustainability Statement is free from material
misstatement, whether due to fraud or error, and to issue a limited assurance report that includes our conclusion. Misstatements can arise from fraud or error and
are considered material if, individually or in the aggregate, they could reasonably be expected to influence decisions of users taken on the basis of the
Sustainability Statement as a whole.
As part of a limited assurance engagement in accordance with ISAE 3000 (Revised) we exercise professional judgement and maintain professional scepticism
throughout the engagement.
Our responsibilities in respect of the Sustainability Statement, in relation to the Process, include:
• Obtaining an understanding of the Process, but not for the purpose of providing a conclusion on the effectiveness of the Process, including the outcome
of the Process;
• Considering whether the information identified addresses the applicable disclosure requirements of the ESRS; and
• Designing and performing procedures to evaluate whether the Process is consistent with the Company’s description of its Process set out in disclosure
ESRS 2 IRO-1.
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Our other responsibilities in respect of the Sustainability Statement include:
• Identifying where material misstatements are likely to arise, whether due to fraud or error; and
• Designing and performing procedures responsive to where material misstatements are likely to arise in the Sustainability Statement. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
Summary of the work performed
A limited assurance engagement involves performing procedures to obtain evidence about the Sustainability Statement. The procedures in a limited assurance
engagement vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement. Consequently, the level of assurance obtained
in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been
performed.
The nature, timing and extent of procedures selected depend on professional judgement, including the identification of disclosures where material misstatements
are likely to arise in the Sustainability Statement, whether due to fraud or error.
In conducting our limited assurance engagement, with respect to the Process, we:
• Obtained an understanding of the Process by:
o performing inquiries to understand the sources of the information used by management (e.g., stakeholder engagement, business plans and
strategy documents); and
o reviewing the Company’s internal documentation of its Process; and
• Evaluated whether the evidence obtained from our procedures with respect to the Process implemented by the Company was consistent with the
description of the Process set out in disclosure ESRS 2 IRO-1.
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In conducting our limited assurance engagement, with respect to the Sustainability Statement, we:
• Obtained an understanding of the Group’s reporting processes relevant to the preparation of its Sustainability Statement by obtaining an understanding of
the Group’s control environment, processes, control activities and information system relevant to the preparation of the Sustainability Statement, but not
for the purpose of providing a conclusion on the effectiveness of the Group’s internal control
• Evaluated whether the information identified by the Process is included in the Sustainability Statement;
• Evaluated whether the structure and the presentation of the Sustainability Statement is in accordance with the ESRS;
• Performed inquires of relevant personnel and analytical procedures on selected information in the Sustainability Statement;
• Performed substantive assurance procedures on selected information in the Sustainability Statement;
• Where applicable, compared disclosures in the Sustainability Statement with the corresponding disclosures in the financial statements and other sections
of the Board of Directors’ report;
• Evaluated the methods, assumptions and data for developing estimates and forward-looking information;
• Obtained an understanding of the Company’s process to identify taxonomy-eligible and taxonomy-aligned economic activities and the corresponding
disclosures in the Sustainability Statement;
• Evaluated whether information about the identified taxonomy-eligible and taxonomy-aligned economic activities is included in the Sustainability
Statement; and
• Performed inquiries of relevant personnel, analytical procedures and substantive procedures on selected taxonomy disclosures included in the
Sustainability Statement.
Oslo, 27 March 2025
ERNST & YOUNG AS
Erik Søreng
State Authorised Public Accountant (Norway) - Sustainability Auditor
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Glossary
CO
2
Carbon Dioxide
CS3D Corporate Sustainability Due Diligence Directive
CSRD Corporate Sustainability Reporting Directive
DEI Diversity, Equity, and Inclusion
DEFRA Department for Environment, Food and Rural Affairs
EHS Environment, Health and Safety
ESG Environmental, Social and Governance
ESRS European Sustainability Reporting Standards
GHG Greenhouse Gas
GO Guarantees of Origin
GRI Global Reporting Initiative
GWP Global Warming Potential
IPCC Intergovernmental Panel on Climate Change
IRA Inflation Reduction Act
ISO International Organization for Standardization
JV Joint Venture
KPI Key Performance Indicator
LCA Life Cycle Assessment
LMS Learning management system
LTIFR Lost time incident frequency rate
NUES Norwegian Corporate Governance Board
NVE The Norwegian Water Resources and Energy Directorate
PDD Performance, Development and Drive
PV Photovoltaics
R&D Research and development
TRIF Total recordable incident frequency
UNFCCC United Nations Framework Convention on Climate
Change
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Hexagon Purus ASA | Annual report 2024
Contact us
IR contact
Mathias Meidell
Director Investor Relations
Phone: +47 90 98 22 42
Address
Hexagon Purus ASA
Haakon VII's gate 2
0161 Oslo
Norway
Phone: +47 70 30 44 50
hexagonpurus.com
Financial calendar 2025
Annual General Meeting
25 April 2025
1
st
quarter 2025
6 May 2025
2
nd
quarter and
half year report 2025
17 July 2025
3
rd
quarter 2025
21 October 2025
4
th
quarter 2025
10 February 2026
Details
Interim report and presentation material will be released at
07:00 CET and made available on www.hexagonpurus.com
and www.newsweb.no
The interim results are presented live at 8:30 am CET.
Hexagon Purus ASA reserves the right to change the dates. All
presentations are broadcasted live and open to all
interested parties.
Two weeks before the presentation of the interim report
Hexagon Purus practice a quiet period where contact with
analysts, investors and media are limited. This is done
to minimize the risk of information leakage and potential
different information in the market.
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