Integrated annual report
2023
Climate change is a severe threat to humanity,
to our planet and our ecosystems. Our decades
of experience, innovative mindset and strong
values-based culture allows 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.
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
We use the following input …
Production capacity
We are present with production
facilities in eight locations across three
continents ready to serve everyone with
ambitions for a sustainable planet.
Innovation capital
We use our extensive engineering
and technological knowledge and
capabilities to innovate and improve
zero-emission technologies for
tomorrow.
Workforce
Our workforce of more than 650
employees contributes significantly to
ensuring the quality and safety of our
products and are the cornerstone of our
current and future success.
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 for a
sustainable planet together with them.
Financial capital
Backed by world-class strategic
investors, such as specialist investors
Mitsui & Co., and Hy24, contributing to
a robust financial foundation for long-
term growth.
Natural capital
We must optimize the use of our
resources, integrating sustainability
into all our business decisions.
Our business model and sustainable value creation
Sustainable value creation depends on
identifying and understanding the impact
we have on the planet and how the planet
impacts us.
For Hexagon Purus, sustainable value creation
relies on six general input factors: production
capacity, innovation capital, workforce,
relationships and business partners, financial
capital and natural capital.
These input factors are further transformed
and enhanced by our business model,
generating value for our stakeholders
and optimizing the use and impact of
our input factors.
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
… to work for a sustainable planet …
HYDROGEN MOBILITY AND INFRASTRUCTURE
• Hydrogen storage cylinders and fuel storage systems
• Hydrogen distribution modules, stationary storage and mobile refueling stations
BATTERY SYSTEMS AND VEHICLE INTEGRATION
• Battery energy storage systems and full
electric vehicle integration
OUR CORE PRODUCTS AND SOLUTIONS TECHNOLOGY OFFERING
Hexagon Purus’ technologies are relevant for a wide range of customer applications across
hydrogen infrastructure and mobility and battery systems and vehicle integration.
Hydrogen
storage systems
Hydrogen
storage cylinders
Battery
systems
Hydrogen fuel
storage systems
Vehicle
integration
HEXAGON PURUS’ COMPLEMENTARY OFFERING
Hexagon Purus’ complementary technology
solutions drive decarbonization across industry
and mobility end-markets.
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
… and create value along the way
Revenue
1 320 MNOK
YoY revenue
growth
37%
Equity ratio
51%
OUR RESULTS
Workforce
653
YoY overall
workforce growth
21%
YoY female
workforce growth
34%
OUR CONTRIBUTIONOUR ORGANISATION
Hydrogen cylinder
technology
> 6
EU Taxonomy
eligible revenue
89%
EU Taxonomy
aligned CapEx
1
99%
Battery systems
technology
> 2
Global manufacturing
footprint
8
locations across
3 continents
Innovation
efforts
> 18%
million miles of on-road practical
experience with our battery system
technology
decades of composite pressure
vessel manu facturing experience
of employees are
dedicated to engineering
and R&D activities
1
See EU Taxonomy Report 2023
Hexagon Purus ASA Annual report 2023
Hexagon Purus in brief
7
Our global reach
7
Purpose, values and behaviors
8
Financial highlights
9
Highlights 2023
10
Objectives for 2024
12
A word from the CEO
13
Our business
15
Executive management
24
From the Board room
26
Board of Directors’ report
26
Corporate governance report
39
Board of Directors
45
Sustainability reporting
47
Sustainability at Hexagon Purus
48
Responsible employer
52
Our contribution through our solutions
63
Minimizing our environmental footprint
67
Product safety and compliance
75
Governance
80
Financial statements
86
Financial statements Group
87
Financial statements Parent Company
136
Auditor’s report
151
Appendix
157
Glossary
157
EU Taxonomy
158
GRI Index
164
Methodology for GHG Accounting
172
Financial calendar
175
Contents
This is Hexagon Purus’ Integrated Annual Report
2023, presenting our financial statements, notes to
the financial statements, and the Board of Directors
report. 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.
This report has been prepared in accordance with
the Global Reporting Initiative (GRI) 2021 Universal
Standards. An overview of the various disclosures we
report on, in addition to any references, comments,
or omissions, can be found in the GRI Index, which
is disclosed in the appendix of this report, and
published separately on www.hexagonpurus.com.
Hexagon Purus has not engaged an independent
third-party to perform external assurance on our
GRI reporting and/or sustainability reporting.
Hexagon Purus ASA Annual report 2023
Hydrogen storage
systems
Hydrogen
storage cylinders
Hydrogen fuel
storage systems
Battery
systems
Vehicle
integration
Engineering centre
Production/assembly site
Sales office/representative
Oslo
Headquarter
Ålesund
Westminster
Weeze
Shijiazhuang
Kelowna
Kassel
Ontario
Dallas
OUR GLOBAL REACH
With a global and strategically located and scalable footprint, Hexagon
Purus is perfectly positioned to play an integral role in driving the
zero-emission transition across industry and mobility end-markets.
HEXAGON PURUS IN BRIEF | OUR GLOBAL REACH
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 IN BRIEF | PURPOSE, VALUES AND BEHAVIORS
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
FINANCIAL HIGHLIGHTS 2023
REVENUE
NOK 1 000
507 718
963 925
1 319 614
202320222021
EBIT
NOK 1 000
202220222021
(
324 874)
(500 594)
(595 258)
EBITDA
NOK 1 000
202320222021
(271 777)
(405 505)
(455 473)
+37%
total revenue
growth from
2022–2023
All figures in NOK 1 000
Revenues and profit 2023 2022 2021
Revenue 1 319 614 963 925 507 718
Operating profit before
depreciation (EBITDA) (445 473) (404 505) (271 777)
Operating profit (EBIT) (595 258) (500 594) (324 874)
Profit before tax
1
(691 310) (440 898) (347 273)
Profit after tax
1
(683 517) (431 518) (345 152)
Capital 31 December
Total assets 3 773 007 2 654 903 2 101 745
Equity 1 919 127 1 687 621 1 415 398
Equity ratio
2
51% 64% 67%
Definition of key figures
1
Before discontinued operations
2
Shareholders´equity as a percentage of total assets
HEXAGON PURUS IN BRIEF | FINANCIAL HIGHLIGHTSHEXAGON PURUS IN BRIEF | FINANCIAL HIGHLIGHTS
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Successfully transferred from Euronext Growth to
the main list of the Oslo Stock Exchange.
Completed two new funding raises, totaling
NOK 2.3 billion in gross proceeds. Secured Mitsui
& Co., and Hy24 as new strategic investors.
Increased the Company’s manufacturing
capacity to deliver on major orders and expected
customer demand by opening four new facilities
in Westminster (Maryland, US), Kelowna
(Canada) and Kassel (Germany) and entered into
a lease agreement for a vehicle integration site in
Dallas (Texas, US).
Entered into two major contracts in North
America for the delivery of complete battery
electric trucks to Hino and Daimler Trucks North
America estimated to be potentially worth more
than USD 2.0 billion.
Highlights 2023
Picture credit: Daimler Truck North America
HEXAGON PURUS IN BRIEF | HIGHLIGHTS 2023HEXAGON PURUS IN BRIEF | HIGHLIGHTS 2023
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Signed a multi-year supply agreement with
Panasonic for the supply of American-produced
battery cells to be used for the Hino and Daimler
programs.
Continued to experience strong demand and
growth within hydrogen infrastructure solutions.
Hexagon Purus signed a multi-year agreement
with a global oil & gas company for delivery of
hydrogen distribution modules and extended a
framework agreement with a leading European
producer of green hydrogen for delivery of
hydrogen distribution modules.
Secured a large order for delivery of hydrogen
fuel storage systems to Solaris, a leading
European bus manufacturer, under the existing
long-term supply agreement. In North America,
Hexagon Purus was also chosen by New Flyer for
the fourth time as partner for the hydrogen bus
market in the region.
Positioned Hexagon Purus Maritime as an
early-mover for zero-emission technology in
the maritime industry with an order from Hvide
Sande Shipyard for a hydrogen fuel storage
system for a training ship.
Picture credit: SkulebasPicture credit: SolarisPicture credit: Panasonic
HEXAGON PURUS IN BRIEF | HIGHLIGHTS 2023HEXAGON PURUS IN BRIEF | HIGHLIGHTS 2023
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
2024 will be an important year of execution for Hexagon Purus. Focus will
be on ramping up the Company’s newly opened facilities and preparing
for serial production as well as continuing to gain ground in the Company’s
pursuit towards EBITDA break-even in 2025. Selective organizational build-
out will continue to enable delivery on customer commitments and to
maintain safe and reliable operations.
Achieve at least 50% revenue growth year-over-year
Deliver significant improvement in EBITDA margin year-over-year
Execute existing customer contracts and secure order backlog for 2025
Ramp up newly opened production facilities
Objectives
for 2024
HEXAGON PURUS IN BRIEF | OBJECTIVES FOR 2024HEXAGON PURUS IN BRIEF | OBJECTIVES FOR 2024
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
A WORD FROM THE CEO
Dear shareholders, clients, partners and colleagues,
In 2020 we set ourselves an ambitious target to reach 4–5 billion NOK in revenue by 2025, and we built a
business plan that would take us there in three stages. As we are moving into the third and final stage
of that plan – the ramp-up and operational execution phase – I am pleased to report that we are still on
track to reach that target. We took substantial steps forward in 2023 towards reaching the 2025 target and
delivering on our purpose to be a driving force for a sustainable planet.
The energy transition is moving forward. I am
encouraged by the positive developments in the
regulatory environment for renewable energy
and clean mobility, both in Europe, North
America and Asia. Similarly, I am encouraged to
see the strong momentum for renewable energy.
In 2023, the world´s renewable energy capacity
grew by 50 per cent, the fastest pace recorded
in the past 20 years. This shows that the COP28
pledge to triple global renewable energy capacity
by 2030 can be achieved.
Nevertheless, the energy transition is going
slower than what the world requires – and
significantly slower than what most people
expected a few years ago. The world is not
on track to meet the targets set out in the
Paris Agreement, and the availability of green
hydrogen is much lower than needed. That has
delayed the inflection point for hydrogen in
many sectors, particularly the heavy-duty mobility
segment, which is a significant source of harmful
greenhouse gas emissions.
However, Hexagon Purus is already today
benefiting from a large existing market
for hydrogen used in industries such as
pharmaceuticals, semiconductors and food.
That hydrogen needs to be transported from
source to site, and our distribution modules
are significantly more cost-efficient than
existing distribution solutions. This gives us the
opportunity to grow with demand that is here
and now – demand which is less impacted by
the delay in the scale-up of green hydrogen
production. With sufficient scale and capacity
utilization in our existing facilities, the hydrogen
infrastructure part of our business is already
running at high single-digit EBITDA margins.
We have been capacity constrained in our
European hydrogen business in 2023, but we
are now close to completing our ambitious
capacity expansion program and enter 2024
with significantly higher capacity to serve our
customers, backed by a strong portfolio of
long-term customer agreements and a solid
“In 2020 we set ourselves an ambitious
target to reach 4–5 billion NOK in revenue
by 2025 … I am pleased to report that we are
still on track to reach that target.”
HEXAGON PURUS IN BRIEF | A WORD FROM THE CEOHEXAGON PURUS IN BRIEF | A WORD FROM THE CEO
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
order book. Since the start of 2023, we have
opened five brand new manufacturing facilities,
and we are in the process of preparing another
two facilities that are scheduled to open later
in 2024. Simultaneously, we have scaled up
our organizational capacity to ensure we have
sufficient competence and capacity to deliver in
our ramp-up phase. I am pleased that we have
been able to continue delivering on our customer
commitments and operational targets in parallel
with executing complex and capital-intensive
construction projects.
As we close out 2023, with the lion’s share of
the investment program completed, we are
now moving into the ramp-up and operational
execution phase. With high utilization of the
newly installed capacity, and increasingly gaining
the benefits of industrial scale, we are confident
that we will achieve solid profitability. We
expect our hydrogen mobility and infrastructure
segment (excluding the China joint venture) to
be EBITDA positive already this year. In addition,
we expect to start deliveries on the two heavy-
duty battery electric truck programs with Hino
and Daimler in North America in the fourth
quarter of 2024, with a significant volume ramp
in 2025. This makes me confident that the target
to breakeven on EBITDA for the Group in 2025 is
well within reach.
Over the past few years, we have successfully
secured a unique market position and delivered
transformational growth quarter-over-quarter
and year-over-year, with revenue in 2023 more
than seven times higher than in 2020. We have a
strong and diversified pool of customers, sizeable
new manufacturing capacity coming online, and
a growing order book. These accomplishments
are rooted in the remarkable integrity and drive
of the people in Hexagon Purus. Steering a
company so rich in competence and passion is a
unique and very rewarding opportunity. Seeing
how the our global team members embrace
challenges, take responsibility, build trust and
work to help each other succeed, fills me with
confidence that we will succeed.
The world has an urgent need for solutions to
address climate change, and I am convinced that
our world-leading technology offering can help
drive us towards a more sustainable planet.
Morten Holum
President & CEO
“We have a strong and
diversified pool of
customers, sizeable
new manufacturing
capacity coming
online, and a growing
order book.”
HEXAGON PURUS IN BRIEF | A WORD FROM THE CEOHEXAGON PURUS IN BRIEF | A WORD FROM THE CEO
Hexagon Purus ASA Annual report 2023
OUR BUSINESS
|
HYDROGEN AND BATTERY STORAGE OFFERING
Core component
and systems
technology offering
Hexagon Purus’ Type 4 hydrogen cylinders and systems
Hexagon Purus’ proprietary battery systems for heavy-duty trucks
Type 4w cylinder Hydrogen fuel
storage systems
Battery systems Power module
(eBTC)
Auxiliary module Vehicle-level
software
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 enable safe and efficient use
of hydrogen and battery electricity in a
variety of zero-emission infrastructure and
mobility applications.
HEXAGON PURUS IN BRIEF | OUR BUSINESS
Hexagon Purus ASA Annual report 2023
OUR BUSINESS
|
HYDROGEN AND BATTERY STORAGE OFFERING
Hydrogen Mobility
and Infrastructure
Transit bus MaritimeRail
Highlighted hydrogen mobility applications
Hydrogen electric
heavy-duty trucking
Highlighted infrastructure applications
Hydrogen distribution Mobile refueling
Hexagon Purus’ core cylinder, hydrogen- and battery 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.
The global push to decarbonize society is spurring strong momentum and
customer demand for Hexagon Purus’ zero-emission technologies and
creates exciting growth opportunities for Hexagon Purus.
HEXAGON PURUS IN BRIEF | OUR BUSINESS
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
OUR BUSINESS
|
VEHICLE INTEGRATION OFFERING
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 Vehicle-level
software
HEXAGON PURUS IN BRIEF | OUR BUSINESSHEXAGON PURUS IN BRIEF | OUR BUSINESS
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Manufacturing footprint
In 2023, Hexagon Purus significantly scaled up its manufacturing capacity to
meet the expected demand for zero-emission technology. The Company now
has a footprint spanning eight locations globally.
Battery systems and vehicle integration Hydrogen Mobility and Infrastructure China Joint-Venture
Ontario USA
Vehicle integration
prototype facility and
service center
Footprint: Approximately
1 100 square meter facility
Products: Field service
for battery and hydrogen
electric trucks
Status: In operation
Kelowna Canada
Engineering center and
automated manufacturing
facility for battery systems
Footprint: Approximately
6 000 square meter facility
Products: Engineering,
battery systems and
electrification components
Status: In ramp-up
Kassel Germany
Hydrogen cylinder
engineering and
manufacturing hub
Footprint: Approximately
22 000 square meter facility
Products: Type 4 high-
pressure hydrogen
cylinders and fuel storage
systems
Status: In ramp-up
Dallas USA
Vehicle integration facility
for heavy-duty trucks
Footprint: Approximately
19 000 square meter facility
Products: Vehicle
integration. Optionality
to add battery systems
manufacturing capabilities
Status: Brownfield facility
Production start: H2 2024
Weeze Germany
Hydrogen infrastructure
systems assembly hub
Footprint: Approximately
20 000 square meter facility
Products: Type 4 high-
pressure hydrogen storage
systems
Status: In operation
/ In ramp-up
Westminster USA
Hydrogen cylinder and
systems manufacturing
facility
Footprint: 5 600 square
meter facility
Products: Type 4 high-
pressure hydrogen
cylinders and fuel storage
systems
Status: In operation
Ålesund Norway
Maritime engineering and
systems assembly facility
Footprint: Approximately
600 square meter facility
Products: Hydrogen fuel
systems for maritime
applications
Status: In operation
Shijiazhuang China
Joint-venture hydrogen
cylinder and systems
manufacturing facility
Footprint: 22 000 square
meter facility
Products: Type 4 high-
pressure hydrogen
cylinders and storage
systems
Status: Construction
completed
HEXAGON PURUS IN BRIEF | OUR BUSINESSHEXAGON PURUS IN BRIEF | OUR BUSINESS
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
INFRASTRUCTURE APPLICATIONS
Hydrogen distribution
COMMERCIAL OUTLOOK AND HIGHLIGHTS 2023
There is a growing need to transport hydrogen, which has
traditionally been transported using steel tube trailers.
Hexagon Purus’ Type 4 distribution modules can carry
three times the amount of hydrogen compared to a steel
tube trailer and have a lower total cost of ownership.
Hexagon Purus’ business for hydrogen infrastructure
solutions is mainly driven by large, multinational customers
like Air Liquide and Linde that deploy Hexagon Purus’
Type 4 hydrogen distribution modules for transportation
of grey hydrogen for industrial purposes to sectors such
as semiconductors, pharmaceuticals and food production.
These are industry verticals where the use of hydrogen,
and hence the need for transportation, is expected to
grow significantly going forward. The other main customer
group for the Company’s hydrogen infrastructure solutions
is emerging green hydrogen producers as well as energy
majors establishing hydrogen refueling infrastructure
networks, predominantly in Europe. The new hydrogen
infrastructure and systems manufacturing hub that
Hexagon Purus recently opened in Weeze, Germany will
more than double (at run-rate) the Company’s production
capacity for hydrogen distribution modules and will
help meet the growing demand expected for hydrogen
infrastructure solutions.
Our hydrogen distribution and mobile refueling systems based on Type 4 high-pressure cylinders offer the
optimal combination of weight and payload resulting in leading total cost of ownership compared to traditional
steel tube trailers for transportation of hydrogen between points of production and consumption. Our solutions
are equally relevant and competitive for all colors of hydrogen – green, blue or grey.
Weeze Germany Kassel Germany
HEXAGON PURUS IN BRIEF | OUR BUSINESSHEXAGON PURUS IN BRIEF | OUR BUSINESS
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
INFRASTRUCTURE APPLICATIONS
Mobile hydrogen refueling
Weeze Germany Kassel Germany
COMMERCIAL OUTLOOK AND HIGHLIGHTS 2023
Currently, hydrogen refueling infrastructure is not
developed sufficiently for the widespread adoption of
hydrogen electric vehicles. Mobile hydrogen refueling
stations address this challenge, providing a flexible option
for customers that are not yet ready to make capital
investments in permanent hydrogen fueling stations.
In addition, these units offer advantages for heavy-duty
vehicles such as construction and harbor machines which
do not have access to permanent refueling stations and
require flexible and transportable refueling options.
These mobile stations can be easily moved and can help
demonstrate the viability of hydrogen as an alternative
fuel to diesel. Near term demand is expected to be mainly
driven by increased adoption of hydrogen transit buses in
Europe with the mobile refueling units located at the bus
depots for convenient and efficient refueling. Increased
adoption of hydrogen heavy-duty trucking and off-road
applications is expected to be the main long-term driver
for the mobile refueling units to support the gradual
scale-up of hydrogen mobility fleets globally.
Hexagon Purus delivers mobile refueling solutions for hydrogen mobility applications. The mobile hydrogen
refueling station is a flexible system enabling lower initial capital costs compared to fixed hydrogen refueling
stations and allowing for gradual build-up of hydrogen mobility fleets. The system can be modified to serve
both on-road and off-road mobility and can be utilized for demonstration purposes.
HEXAGON PURUS IN BRIEF | OUR BUSINESSHEXAGON PURUS IN BRIEF | OUR BUSINESS
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
MOBILITY APPLICATIONS
Heavy-Duty Trucking
COMMERCIAL OUTLOOK AND HIGHLIGHTS 2023
Zero emission heavy-duty trucking plays a substantial role
in reducing emissions within the transportation sector. In
the U.S., both the Environmental Protection Act (EPA) and
California Air Resources Board (CARB) have introduced
proposals and regulations that address the need for
further reductions in emissions in the transportation
sector. In California, the Advanced Clean Trucks regulation
for truck manufacturers and the Advanced Clean Fleets
regulation for fleet owners aim at reducing emissions
and accelerating the adoption of zero-emissions vehicles
(ZEVs) in the transportation sector. To date, seventeen
states have adopted California’s regulation for zero-
emission trucking. While the hydrogen fueled heavy-duty
truck segment is not yet at mass adoption, demand for
battery- and hydrogen electric trucking is expected to
accelerate towards 2030 on the back of strong regulatory
drivers and availability of charging- and refueling
infrastructure. Several OEMs are now developing both
battery and hydrogen electric heavy-duty offerings to meet
future customer demand.
In 2023, Hexagon Purus signed two major agreements for
complete vehicle integration of battery electric utility and
heavy-duty vehicles with Hino Trucks and Daimler Trucks
North America for the North American market.
Hexagon Purus delivers hydrogen storage cylinders and systems for heavy-duty trucking 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
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Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
MOBILITY APPLICATIONS
Transit bus
COMMERCIAL OUTLOOK AND HIGHLIGHTS 2023
While still at an early commercial stage, transit bus is likely
the next hydrogen segment to reach commercial maturity
and is expected to grow strongly in 2024. Demand for
hydrogen storage is increasing due to the EU targeting a
90% emissions reduction for most new trucks and coaches
by 2040 and 100% zero-emission city bus sales by 2030.
Several thousand hydrogen buses are already in operation
with many operators, particularly public ones, planning to
transition their fleets to zero emission. Hydrogen offers
advantages in both hot and cold climates when significant
on-board energy is needed for heating and cooling and
bus fleets do not rely on widespread public refueling
infrastructure. Hexagon Purus has strong positions in both
Europe and North America and more than 15% of our
current order backlog consists of firm purchase orders for
delivery of hydrogen storage systems to fuel-cell electric
bus OEMs such as Solaris, Caetano and New Flyer.
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. Our hydrogen solutions offer
distinct advantages in both hot and cold climates where air conditioning and heating make heavy demands
on batteries.
Westminster USA Kassel Germany
Picture credit: CaetanoBus
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Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
MOBILITY APPLICATIONS
Maritime
COMMERCIAL OUTLOOK AND HIGHLIGHTS 2023
To achieve the International Maritime Organization's
(IMO) net-zero greenhouse gas emissions target by 2050,
clean fuels in the maritime industry must be adopted
at scale. Hydrogen as a fuel offers exciting long-term
decarbonization potential for the maritime segment as it
offers a longer range then battery electric and thus enables
additional and larger vessels to sail with zero emissions.
Hydrogen and battery electric technologies are both
relevant for zero-emission shipping and have different
use cases. Hydrogen technology is most suitable for
inland or coastal cargo vessels, supply and service vessels
for offshore oil & gas, wind farms and fish farming and
passenger ferries servicing predictable point-to-point
routes.
In 2023, Hexagon Purus received an order from Hvide
Sande Shipyard for hydrogen fuel storage system
incorporating Type 4 hydrogen cylinders onboard the
training ship SKULEBAS. This is an important contract not
just to validate our technology but also for training future
mariners in zero emission technologies. Hexagon Purus
Maritime is also constructing a hydrogen fuel storage
system from Moen Marin, the world’s largest supplier of
working boats to the fish farming industry.
Hexagon Purus combines extensive hydrogen storage and maritime expertise to provide a holistic
approach to zero emission maritime solutions. Hexagon Purus is at the forefront of developing innovative
hydrogen storage solutions with its Type 4 high-pressure composite cylinders that are ideal for several
maritime applications. Together with partners, Hexagon Purus can cover major parts of the maritime
hydrogen value chain.
Ålesund Norway
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Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Executive management
Morten Holum Salman Alam Anne Lise Hjelseth Michael Kleschinski
Position President & CEO CFO EVP, People & Culture EVP, Hydrogen Mobility & Infrastructure
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.
Morten has extensive international business
expertise from different industries. Prior to
joining Hexagon, he was CFO and then CEO of
Saferoad Group. He has also held key manage-
ment positions in Norske Skog, Norsk Hydro
and American Airlines. Morten has a BS in
Finance and Psychology from Østfold University
College and the University of Oslo and an MBA
from the University of North Carolina.
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 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
Investment Bank in Oslo. Salman holds a BSc
in Business and Economics from BI Norwegian
Business School and an MSc in Finance from
London Business School.
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 sea-
soned 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 leadership roles within Eli Lilly &
Co. Anne Lise holds a MSc in organic chemistry
from the Norwegian University of Science and
Technology (NTNU)
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.
He has extensive experience with design and
manufacturing of composites. Michael has a
BSc with Honors in Mechanical Engineering
from the University of Glasgow and a Ph.D.
in composite materials from Darmstadt
University.
Number of shares 130 646
1
8 247 41 237 112 000
1
Includes shares owned by related parties
HEXAGON PURUS IN BRIEF | EXECUTIVE MANAGEMENTHEXAGON PURUS IN BRIEF | EXECUTIVE MANAGEMENT
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Executive management cont.
Todd Sloan Dilip Warrier Heiko Chudzick Frank Haeberli
Position EVP, Battery Systems and Vehicle Integration EVP, Strategic Projects EVP, Operations EVP, Asia
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, and is an innovator with 25 years
of experience in the clean commercial vehicle
industry. He holds a Bachelor of Engineering
in Mechanical Engineering.
Dilip Warrier was appointed Executive Vice
President, Strategic Projects in Hexagon
Purus in March 2023. Prior to his current
role, he served as CFO of the Company,
and before that he was VP Finance at Agility
Fuel Solutions. Dilip has also been an equity
research analyst at CIBC World Markets and
Stifel Nicolaus covering clean transportation
and energy storage. He holds an MBA from
Stern School of Business, New York University,
and a Bachelor of Engineering from Mumbai
University.
Heiko Chudzick was appointed Executive
Vice President, Operations in January 2022.
He joined Hexagon Composites in 2018 and
has broad international experience from
several senior positions in the automotive
and steel sector at ThyssenKrupp and Bosch.
Heiko holds a Dipl.-Ing. degree in Mechanical
Engineering with a major in Automotive
Engineering from RWTH Aachen University.
Frank Haeberli was appointed Executive
Vice President, Asia in April 2023. He joined
Hexagon Group 15 years ago. Frank has
held several key management positions in
Hexagon Composites and has extensive
experience and a strong track-record from
international business development projects.
Frank has a BSc, Mechanical Engineering from
Mannheim University of Applied Sciences and
a Bachelor’s degree in Law from the University
of Constance.
Number of shares 69 759 8 559 61 060 60 664
HEXAGON PURUS IN BRIEF | EXECUTIVE MANAGEMENTHEXAGON PURUS IN BRIEF | EXECUTIVE MANAGEMENT
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
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
electricity 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. Business activities are mainly located in Germany, USA,
Canada and China.
FROM THE BOARD ROOM | BOARD OF DIRECTORS’ REPORTFROM THE BOARD ROOM | BOARD OF DIRECTORS’ REPORT
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Key developments of 2023
• Grew revenue by 37 per cent from NOK 964
million to NOK 1 320 million.
• Opened new facilities in Westminster (MD, US),
Kelowna (BC, Canada) and Kassel (Germany)
and entered into a lease agreement for a new
vehicle integration site in Dallas (Texas, US).
• Added Mitsui and Hy24, the world’s largest
clean hydrogen pure-play investor, as new
strategic investors. Raised, through two
convertible bond and one equity private
placements, gross proceeds of approximately
NOK 2.3 billion.
• Successfully transferred from Euronext Growth
on to the main list of the Oslo Stock Exchange.
• Signed several customer agreements for
delivery of hydrogen infrastructure solutions,
representing a significant increase in order
intake.
• Signed multi-year agreements worth poten-
tially more than USD 2 billion with Hino and
Daimler Trucks North America for delivery of
complete battery electric trucks for the North
American market.
• Signed a multi-year agreement with Panasonic
for the supply of American-produced battery
cells.
• Received additional purchase orders from
Solaris under existing long-term supply agree-
ment, for the delivery of hydrogen fuel storage
systems to support Solaris’ roll-out of hydro-
gen fuel-cell electric buses in Europe following
a recent public tender win in Bologna, Italy.
• Selected to work together with Ford Trucks
to deliver a complete hydrogen fuel storage
system for its first fuel cell electric-powered
vehicle (FCEV) F-MAX as part of the Horizon
Europe project ZEFES (Zero Emission Freight
EcoSystem), a pan-European project targeting
decarbonization of long-haul heavy-duty
trucking in Europe.
• Selected by a large European OEM to develop
and deliver the next generation mobile hydro-
gen refueling station for 700 bar commercial
vehicles.
• Strengthened position as an early-mover for
zero-emission technology in the maritime
industry with an order from Hvide Sande
Shipyard for a hydrogen fuel storage system
for a training ship.
Financial results
Profit/loss
In 2023, Hexagon Purus (“the Company” or “the
Group”) generated NOK 1 320 million in revenue,
up 37 per cent compared to the full-year revenue
in 2022. Hydrogen infrastructure solutions contin-
ued to be the main driver of growth, coupled with
increasing activity within mobility applications,
including heavy-duty vehicles and transit bus.
Cost of materials as % of revenue was 59 per cent
for the full-year 2023, compared to 61 per cent
for the full-year 2022. In relative terms, as a % of
revenue, payroll expenses for the full-year 2023
were 47 per cent (46 per cent) and increased on
an absolute basis as a function of the continued
investments in organizational scale-up. Total
operating expenses for the full-year 2023 ended
at NOK 1 765 (1 369) million, leading to an oper-
ating profit before depreciation (EBITDA) of NOK
-445 (-406) million. Depreciation for the full-year
2023 was NOK 150 million, up from NOK 95
million for the full-year 2022 with the increase
driven by a higher balance of depreciable assets
due to the Company’s ongoing capacity expan-
sion program. Operating profit (EBIT) for the
full-year 2023 consequently ended at NOK -595
(-501) million.
Share of income from investments in associ-
ates, which reflects Hexagon Purus’ minority
shareholdings in Cryoshelter LH2 GmbH and
CIMC Hexagon Hydrogen Energy Systems
Ltd., was NOK -13 (52) million for the full-year
2023. Finance income for the full-year 2023 was
NOK 104 (37) million, of which approximately
NOK 56 million relates to foreign exchange
fluctuations and approximately NOK 30 million
relates to interest income on bank deposits.
The remaining approximately NOK 18 million is
related to a revaluation of the Company’s owner-
ship interest in Norwegian Hydrogen AS (“NH2”),
following NH2’s capital raise from Fortescue
in October 2023 that valued NH2 at NOK 750
million. Hexagon Purus has a 12.7 per cent owner-
ship interest in NH2.
Finance costs for the full-year 2023 were NOK 187
(29) million, of which approximately NOK 83
million relates to non-cash interest on the
2023/2028 convertible bond. Approximately
NOK 22 million stems from interest on lease
liabilities and other interest-bearing debt and
the remainder relates to foreign exchange fluc-
tuations. Tax expense for the full-year 2023 was
NOK-8 (-9) million, and net profit after tax ended
at NOK -684 (-432) million.
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Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Cash flow
Net cash flow from operating activities for the
full-year 2023 was NOK -713 (-325) million, of
which NOK -249 (70) million was due to an
increase in net working capital.
Net cash flow from investing activities was NOK
-597 (-338) million for the full-year 2023, of which
NOK 443 (240) million relates to investments
in production equipment and facilities related
to the ongoing capacity expansion program.
Capitalized product development expenditure
was NOK 39 (53) million for the full-year 2023.
Settlement of the deferred consideration and
parts of the contingent consideration related
to the Wystrach acquisition was also made in
2023, amounting to NOK 86 million. Additionally,
during 2023, NOK 29 million was contributed to
CIMC Hexagon Hydrogen Energy Systems Ltd., of
which Hexagon Purus owns 49%. The remaining
cash flow from investing activities for the full-year
2023 mainly relates to funding contributions
to Cryoshelter LH2 GmbH for the ongoing
development work related to developing liquid
hydrogen storage solutions. Interest received
on deposits for the full-year 2023 amounted to
NOK 30 (8) million.
Net cash flow from financing for the full-year
2023 was NOK 1 261 (581) million, mainly driven
by issuance of NOK 500 million (gross) in new
equity and approximately NOK 800 million
(gross) in convertible bonds during 2023. The
majority of the outflow from financing is related
to lease payments, which for the full-year of 2023
amounted to NOK -21 (-10) million. Payments
related to lease liabilities is expected to increase
in 2024 as the new facilities developed under
the capacity expansion program comes online.
Cash interest payments for the full-year 2023
amounted to NOK -21 (-10) million.
Net change in cash and cash equivalents for the
full-year 2023 was NOK -74 (-72) million, and
currency exchange differences on cash was NOK
-25 (10) million. Cash and cash equivalents ended
at NOK 307 (382) million. The cash balance for
the full-year 2023 does not take into account
the approximately NOK 1 000 million (gross)
convertible bond offering that was announced in
December 2023 and issued in February 2024.
Balance sheet
Total assets at year-end 2023 amounted to
NOK 3 773 (2 655) million. The year-over-year
increase in total assets is mainly driven by
increases to property, plant and equipment
to NOK 867 (495) million and right-of-use
assets to NOK 545 (152) million as a result of
the Company’s ongoing capacity expansion
program, combined with an increase in working
capital to cater for a higher activity level. Trade
receivables increased to NOK 275 (229) million at
year-end 2023 and inventory stood at NOK 482
(332) million. The Company’s working capital
position reflects growth throughout 2023, which
is expected to continue into 2024.
Increases in equity and non-current liabilities
in 2023 is mainly driven by issuance of NOK 500
million (gross) in new equity and approximately
NOK 800 million (gross) in convertible bonds in
combination with an increase in lease liabilities
related to production facilities and equipment
as part of the Company’s ongoing capacity
expansion program. At year-end 2023, the
Company had a satisfactory equity ratio of 51 per
cent (64 per cent).
Organization
In the fiscal year of 2023, the workforce
experienced a growth rate exceeding 20%,
bringing the total employee count to 653. When
including agency workers, the workforce totals
688. The female workforce grew by 34%. Crucial
competencies were acquired at all sites. The
company remains steadfast in its commitment
to diversity and inclusion, and will continue its
efforts in this regard.
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 hydro-
gen in a variety of zero-emission mobility and
hydrogen infrastructure applications.
The majority of Hexagon Purus’ revenue in 2023
was driven by its suite of hydrogen infrastruc-
ture solutions, such as hydrogen distribution
modules, stationary storage and mobile refu-
eling units. Hydrogen infrastructure customers
included blue-chip industrial gas companies like
Air Liquide and Linde, and green hydrogen pro-
ducers such as Lhyfe.
There is a growing need to transport hydro-
gen, and Hexagon Purus’ Type 4 distribution
modules are significantly more cost-effective
than existing hydrogen transportation solu-
tions. The Company’s commercial pipeline and
customer dialogues for hydrogen infrastructure
solutions remains strong. For instance, in 2023,
the Company entered into a long-term agree-
ment with a leading global energy company and
extended an existing framework agreement with
a leading European producer of green hydrogen
for delivery of hydrogen distribution systems with
a total combined value of approximately EUR 44
million. Hexagon Purus’ hydrogen distribution
FROM THE BOARD ROOM | BOARD OF DIRECTORS’ REPORTFROM THE BOARD ROOM | BOARD OF DIRECTORS’ REPORT
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
systems will be used to deliver green hydrogen
for mobility and industrial applications in Europe.
Furthermore, in December 2023, Hexagon Purus
received purchase orders for the delivery of
hydrogen distribution systems to a leading player
within the green hydrogen ecosystem, worth
approximately EUR 9.6 million. The distribution
systems will be used to deliver green hydrogen to
industrial applications in Central Europe.
Mobility applications contributed positively to
revenue in 2023, mainly driven by deliveries of
hydrogen cylinders for Nikola’s fuel cell electric
heavy-duty truck and deliveries of hydrogen
storage for transit bus applications to customers
like Solaris and New Flyer. Hexagon Purus was
also recently awarded a purchase order by Ford to
deliver a complete hydrogen fuel storage system
for Ford’s development project on fuel cell elec-
tric heavy-duty trucks for the European market.
The fuel cell electric F-MAX prototype that Ford is
developing will operate as part of a larger fleet of
zero-emission trucks collecting data from real-
world operations as part of the ZEFES project,
a pan-European project specifically targeting
decarbonization of long-haul heavy-duty truck-
ing in Europe.
The Company’s aerospace business continues to
contribute positively, both from a revenue and
profitability perspective. There continues to be
active customer dialogues for development pro-
grams and long-term agreements for on-board
hydrogen storage for commercial aviation and
maritime applications.
Capacity expansion update
In January 2024, Hexagon Purus opened its new
hydrogen infrastructure and systems manu-
facturing hub in Weeze, Germany. Hydrogen
infrastructure is a highly important and profitable
market segment for Hexagon Purus, and this
expansion more than doubles (at run rate) the
Company’s annual production capacity of Type 4
high-pressure hydrogen infrastructure solutions
and is a key enabler for continued profitable
revenue growth in 2024 and 2025.
In addition to the above, the Company has opened
two new hydrogen cylinder manufacturing facilities
in Kassel, Germany (in 2023) and Westminster, US
(in 2023). The ramp-up of the new Kassel facility is
currently ongoing and has taken more time than
expected due to delays in equipment deliveries.
The slower ramp-up has led to delays in certain
customer deliveries, impacting revenue recognition
in the fourth quarter of 2023.
In China, the Company is together with its joint
venture partner CIMC Enric constructing a hydro-
gen cylinder production and systems assembly
facility in Shijiazhuang. The facility construction
has been completed and production equipment
installation is currently taking place.
Battery systems and vehicle integration
Hexagon Purus delivers industry-leading battery
storage systems with complete vehicle integra-
tion for medium- and heavy-duty trucks in North
America. Additionally, the Company has a suite of
IP-protected key components required for heavy-
duty vehicle electrification.
In 2023, Hexagon Purus signed two major agree-
ments for complete vehicle integration of battery
electric utility and heavy-duty vehicles with Hino
Trucks and Daimler Trucks North America for
the North American market, potentially worth
more than USD 2 billion over the course of most
of the current decade. The vehicles will include
Hexagon Purus’ proprietary and IP protected
zero-emission technology, including battery
systems, auxiliary modules, power modules and
vehicle-level software. These contract awards
FROM THE BOARD ROOM | BOARD OF DIRECTORS’ REPORTFROM THE BOARD ROOM | BOARD OF DIRECTORS’ REPORT
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
highlight Hexagon Purus’ unique vehicle integra-
tion capabilities and the Company’s proprietary
product portfolio of key components and tech-
nologies required for electrification of heavy-duty
trucking. It also exemplifies the attractiveness
of Hexagon Purus to OEMs looking to go
zero-emission.
The battery systems and vehicle integration
organization is now actively preparing for
expected start of production for both programs
towards the end of 2024, including engineer-
ing activities, test and validation, and further
scale-up of the organization. The supply chain
for the Company’s electric vehicle integration
activities remains complex and dynamic, and the
Company is engaging in proactive supplier man-
agement to mitigate third-party supply chain risk
to the extent possible.
Capacity expansion update
The engineering hub and automated manu-
facturing facility for battery systems opened
in Kelowna in April 2023, and this facility will
produce the battery systems for the Hino and
Daimler programs. The automated battery
module assembly line is currently in the ramp-up
phase, and the first prototype battery modules
which will be used for validation testing were
produced in Kelowna during the fourth quarter
of 2023. Further equipment installations to the
battery module line will take place during the first
half of 2024 to achieve the desired level of line
integration and automation.
In Dallas, Texas, Hexagon Purus has entered into
a lease agreement for a new brownfield facility
that will accommodate vehicle integration and
assembly for the Hino and Daimler programs.
Facility tenant improvement work will commence
in the first quarter of 2024, and the facility is
expected to open during the second half of 2024.
Share price development and dividends
At the end of 2023 the total number of shares in
Hexagon Purus ASA was 276 797 456 (par value
NOK 0.10). The share price moved between
NOK 35.02 and NOK 8.81 ending the year at
NOK 11.14 and representing a market value of
approximately NOK 3.1 billion. The Board of
Directors does not recommend a dividend for the
year 2023.
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 financial controllers that
perform similar tasks at the subsidiary level.
The Group is exposed to credit risk related to
counterparty default on contractual agreements
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 2023 or 2022. The trade receivables at
the end of the year amounted to NOK 275 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.
Corporate governance
Hexagon Purus ASA’s principles for corporate
governance are subject to annual review and
discussions by the Board of Directors. The
Company follows the Norwegian Code of
Practice for Corporate Governance, last updated
14 October 2021 by the Norwegian Corporate
Governance Board (NUES). Please see more
details in the Hexagon Purus Governance Report
(see page 39).
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Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Risk Management
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 properly 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
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Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Impact management
Seizing opportunities and mitigating risks are
foundational factors to sustainable growth.
However, we must acknowledge the impact our
business operations have on the planet. Our
approach to impact management is similar to risk
management. Hexagon Purus' purpose, values,
strategies and policies guide the daily actions of
our employees, based on Executive Management
decisions and ultimately approved by the Board
of Directors.
For impact management we are also relying
on the first line of defense to work with impact
reductions 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 that
might lead to any of the aforementioned risks.
KPIs and progress on the KPIs will be reported to
the Executive Management and for the Board of
Directors on a regular basis.
Due to the deconsolidation from Hexagon
Composites, Hexagon Purus currently has not
developed a stand-alone sustainability strategy
with separate KPIs measuring and tracking our
impacts and our progress. We will revise our
sustainability strategy in 2024 in combination
with the introduction of CSRD and ESRS, where
we will conduct a double materiality assessment
to properly understand the sustainability impacts
our business has on the environment and the
financial impact from sustainability risks and
opportunities. To further understand our envi-
ronmental impact on a product level we will also
conduct robust Life Cycle Assessments (LCAs) of
our products and solutions.
We will also conduct supplier due diligence and
report according to the Norwegian Transparency
Act. The Act addresses due diligence procedures
on social impacts and human rights in our entire
value chain, our operations, and among our
business partners, and follows the OECD Due
Diligence Guidelines for Responsible Business
Conduct. This is a good preparation for the
upcoming Corporate Sustainability Due Diligence
Directive (CS3D), which broadens the scope of
sustainability due diligence.
FROM THE BOARD ROOM | BOARD OF DIRECTORS’ REPORTFROM THE BOARD ROOM | BOARD OF DIRECTORS’ REPORT
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Risks and opportunities
Recruitment, development and retention RISK DEVELOPMENT Unchanged RISK CATEGORY Operational
WHAT IS THE RISK
Our value creation depends on our workforce, its com-
petence, 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 compe-
tence for production. There is also risk related to our
ability to develop employees as we scale up quickly
and to retain the competence we need over time.
RISK MANAGEMENT
We acknowledge that we are competing with both
local and international companies to attract, develop
and retain the competence we need. We collaborate
with selected schools and universities at our locations
and use social media to communicate with current and
future employees. Our employees’ perception of the
working environment is monitored, and action plans
are made based on their feedback. Our employees
are invited and encouraged to take an active part in
shaping our workplace. A new performance manage-
ment system has been introduced, with emphasis on
employee development and frequent feedback and
connection between leader and employee.
SCENARIO
We cannot attract the competence needed to enable
our growth and value creation. We are losing key
competence externally. Our employees don’t have
sufficient knowledge to contribute. This may lead to
increased costs, more time needed for onboarding of
new employees, lack of ability to scale up and to deliver
to our customers and ultimately generate revenue and
profitability.
PURUS OPPORTUNITIES
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.
Suppliers and sourcing RISK DEVELOPMENT Increasing RISK CATEGORY Operational
WHAT IS THE RISK
Our products and solutions require input materials
which are scarce and highly competitive.
The price of these raw materials is linked to various
factors including developments in the price of oil,
precursor commodities and energy and the prevailing
market balance where supply is dependent on a
limited number of suppliers.
RISK MANAGEMENT
We will, from time to time, consider to enter into long
term supply agreements to hedge both prices and
quantity.
We also work proactively with our suppliers to under-
stand the current and future dynamics of the market
affecting essential raw materials.
With innovation as one of our core capabilities, we also
look at alternative technologies to mitigate current and
future risk.
SCENARIO
Purus cannot access materials critical to our products
and solutions, thus reducing our production capacity
and capability, affecting revenue.
Long term agreements can also add risk, as such
agreements commit Hexagon Purus on material and
components, where actual demand can turn out to
be lower than forecasted, market prices can fall, or
the development could make the committed volumes
technologically less relevant, affecting cost.
PURUS OPPORTUNITIES
We have a good and proactive relationship with our
key suppliers. With long term contracts we are ensuring
that we have the input materials to grow and expand
our production, while at the same time operating with
a stable cost base.
Our proactive approach to our suppliers can also
contribute to innovation, implying efficiency gains and
new methods or even materials we can use as substi-
tutes for scarce and competitive raw materials.
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Geopolitical risk RISK DEVELOPMENT Unchanged RISK CATEGORY Financial
WHAT IS THE RISK
We are exposed to changes in the general macroeco-
nomic situation and development in customer markets
or in markets where we have operations. Sustained
downturn in international trade, either from regula-
tions or from geopolitical events, or lower demand
for our products due to short-term focus on fossil
fuel energy, may negatively affect adoption of electric
hydrogen or battery technology.
Current industry growth is bolstered by regulatory
measures backed by governmental bodies. However,
this landscape may shift due to geopolitical changes.
While we do not depend directly on government
funding or subsidies, such factors can influence the
trajectory of industry development.
RISK MANAGEMENT
We are constantly monitoring the situation in markets
where we either operate in, purchase from, or sell our
products and solutions to.
Our global footprint is still limited to 5 countries,
allowing us to constantly monitor the situation from a
market, supplier, or operational perspective. For areas
we assess as especially prone to high geopolitical risks,
we regularly review likely scenarios to consider the best
way forward.
SCENARIO
Geographies where we either have an operational
or market footprint are inaccessible, either due to
regulations or the overall governance risk profile of the
country.
The implication is that we will have to assess contin-
gency plans for our footprint in relevant markets, which
can lead to direct financial losses or unrealized oppor-
tunities in markets where we have a presence.
PURUS OPPORTUNITIES
Geopolitical and macroeconomic risks are outside of
our direct control. Our strategic investments in the
markets where we operate are based on the market
potential we have identified in these geographies,
primarily due to regulations beneficial to our technolo-
gies or market demand.
We are constantly searching for new markets to further
diversify geopolitical risks, either from operational or
supplier perspectives.
Physical climate change effects RISK DEVELOPMENT Increasing RISK CATEGORY Operational
WHAT IS THE RISK
Our global presence makes us exposed to physical
climate change risks in the geographies we operate in.
We have already experienced the indirect and acute
risks from climate change in our Kelowna site as part of
the large Canadian wildfires in 2023.
Several of our employees and sites are exposed to the
physical risks originating from climate change, wild-
fires and flooding are among the most likely.
RISK MANAGEMENT
We have performed a climate risk assessment on all
our existing sites to understand how climate change
can impact our operations. Based on the risk assess-
ment we can invest in measures that either mitigate
the risks directly or indirectly.
Going forward we are also assessing climate risk as
part of our decision-making process in site selection or
supply chain management, among others.
SCENARIO
The world manages to limit global warming and tem-
perature rise to approx. 2C.
This will increase the likelihood of physical climate
risks, all other things being equal, with more frequent
acute events such as wildfires, flash floods, heatwaves,
and heavy precipitation. These events can be harmful
to our employees and to essential company infrastruc-
ture. It can also impact our supply chains.
PURUS OPPORTUNITIES
While we can only mitigate the risk exposure or reduce
the risk directly on our sites, we can incorporate climate
risk assessments for any future site selections, thus
making us more robust to face any future uncertainty.
We can also invest in the personal safety of our
employees and their safety at work, thus taking care of
our most valued resources – our employees.
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Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Climate transition and technology RISK DEVELOPMENT Unchanged RISK CATEGORY Strategic
WHAT IS THE RISK
Our investments in hydrogen and battery electric tech-
nology expose us to a future where these technologies
might be assessed as impractical or inferior, either due
to regulations, changing market conditions, or innova-
tion and new zero-emission mobility technology.
There is also an inherent risk that the climate transition
is slower than expected, thus affecting our current
growth projections.
RISK MANAGEMENT
While we are confident that our current technology
portfolio answers the current and future demand of
the market, we have also invested in potential alterna-
tives such as liquid hydrogen to mitigate.
We are also working tactically with our most important
customers and targeting key geographies with few
alternatives to battery electric technology or hydrogen
to ensure that we are a key player in the zero-emission
mobility transition.
SCENARIO
Climate transition is slower than previously anticipated
due to lagging regulations or market demand. Our
current growth projections are based on future market
demand, and any deviation will lead to a change in
our projected growth. While we produce premium
zero-emission mobility solutions, we cannot realize the
full potential of our current technology portfolio.
PURUS OPPORTUNITIES
Our premium zero-emission mobility solutions,
combined with a global and strategically located and
scalable footprint, make us perfectly positioned to play
an integral role in driving the zero-emission transition
across industry and mobility end-markets.
Our employees’ capabilities, our technological curios-
ity, and our desire to win the zero-emission mobility
game incentivizes us to bring the best solutions to the
market.
Transparency act
On 1 July 2022, the Norwegian Transparency
Act entered into force and requires Hexagon
Purus to carry out due diligence assessments
related to fundamental human rights and
decent working conditions in its own businesses
and supply chains. The Board is pleased that
no human rights concerns were raised in the
assessments that Hexagon Composites con-
ducted for the Hexagon Group during 2022,
and which at that time included Hexagon Purus.
Due to the deconsolidation event in 2023, a
standalone statement from Hexagon Purus
on the Norwegian Transparency Act for 2023 is
published on our web pages. Hexagon Purus will
complete another assessment during the spring
of 2024, followed by a report and a Transparency
Act Statement for 2023 published subsequently
on our web pages.
Reporting of EU taxonomy
related information
The EU Taxonomy was approved by the
Norwegian Government in December 2021, and
entered into force in Norway on 1 January 2023.
During the year, Hexagon Purus continued
its efforts to interpret and prepare for the EU
Taxonomy by performing technical screening
criteria of all its economic activities for substan-
tial contribution, as well as assessing the “do
no significant harm” (DNSH) criteria and the
minimum safeguards criteria of the same.
2023 is the first year where Hexagon Purus
has published its taxonomy-eligible, taxono-
my-aligned, and non-eligible economic turnover,
CAPEX, and OPEX based on economic activity.
89 percent of Hexagon Purus turnover is assessed
as taxonomy-eligible in 2023. While confident
that Hexagon Purus satisfies the substantial con-
tribution criteria for climate change mitigation,
there is room for improvement in documenting
and verifying that the economic activities do no
significant harm (DNSH) on the other environ-
mental objectives. Where there is any uncertainty
concerning whether or not these criteria have been
satisfied, a conservative approach has been taken.
Documenting and verifying DNSH criteria is part
of the Hexagon Purus CapEx plan (as defined in
the EU Taxonomy Delegated Disclosures Act), thus
allowing current Hexagon Purus taxonomy-eligible
economic activities to become taxonomy-aligned.
With this CapEx plan, 99 percent of CapEx is
taxonomy-aligned. The accounting policy and
disclosures can be found in Hexagon Purus EU
Taxonomy Report 2023 (see page 158).
Directors and Officers insurance
The Board of Directors and management per-
sonnel of Hexagon Purus ASA are covered by the
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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
• Selected by New Flyer for the fourth time as
partner for the hydrogen bus market in North
America with an estimated contract value of
approximately USD 4 million;
• Opened new hydrogen infrastructure and
systems manufacturing hub in Weeze,
Germany, which significantly increases
production capacity for hydrogen infrastructure
solutions and;
• On 20 December 2023, the Group announced
the completion of a private placement of
Convertible Bonds, raising total gross pro-
ceeds of approximately NOK 1 000 million (the
“Convertible Bonds”). The Convertible Bonds
are structured as a 5-year senior unsecured
convertible bond with a 10% fixed interest rate
payable semi-annually in kind (i.e. through
issuance of additional bonds). The conversion
price per common share in the Company
for the Convertible Bonds has been set to
NOK 12.61, which is a 25% premium to the vol-
ume-weighted average price of the Hexagon
Purus share on the Oslo Stock Exchange
over the 45 trading days up to and including
20 December 2023. The raise of the Convertible
Bond was approved at an extraordinary general
meeting on 11 January 2024, and the Convertible
Bond was issued on 1 February 2024.
Regarding global conflicts in 2023
The Russian invasion of Ukraine and other con-
flicts in 2023 have in addition to bringing about a
tragic loss of life, threatened energy security and
presented potential risks to international supply
chains. Hexagon Purus' supply chains have not
been materially affected and the conflicts hve
not significantly affected our financial results and
operations. However, like all global enterprises,
we have not been immune to the pervasive
inflationary pressures that characterized the
economic landscape of 2023.
Outlook
Market development
The clean hydrogen industry is facing headwinds
in terms of higher construction and operating
costs and higher cost of capital on the back
of rising interest rates. This has resulted in a
higher levelized cost of renewable hydrogen,
which has slowed down the development of the
global clean hydrogen industry compared to
previous expectations. However, 1 400 hydrogen
projects have been announced world-wide ,
up more than 35% compared to the number of
projects announced in May 2023. The majority
of these projects have been added in Europe,
and USD 570 billion in direct investments has
been announced in total through 2030 of which
approximately 7% have passed the final invest-
ment decision (FID) stage. Of the 1 400 projects,
more than 70% are expected to be in full or
partial deployment by 2030.
Revenue and profitability
For Hexagon Purus, recent market developments
have resulted in a slower market for hydrogen
mobility than expected a few years ago. This has
been offset by a much stronger market for hydro-
gen infrastructure solutions. Today, Hexagon
Purus’ business for hydrogen infrastructure is
mainly driven by large, multinational customers
like Air Liquide and Linde that deploy Hexagon
Purus’ Type 4 hydrogen distribution modules for
transportation of grey hydrogen for industrial
purposes to sectors such as semiconductors,
pharmaceuticals and food production. These are
industry verticals where the use of hydrogen, and
hence the need for transportation, is expected
to grow significantly going forward. The other
main customer group for the Company’s hydro-
gen infrastructure solutions is emerging green
hydrogen producers as well as energy majors
establishing hydrogen refueling infrastructure
networks, predominantly in Europe. The new
hydrogen infrastructure and systems manufac-
turing hub that Hexagon Purus recently opened
in Weeze, Germany will more than double (at
run-rate) the Company’s production capacity
for hydrogen distribution modules and will help
meet the growing demand expected for hydro-
gen infrastructure solutions. This application is
expected to be the main contributor of revenue
growth to the Group also in 2024.
Hydrogen mobility is expected to contribute pos-
itively to revenue growth in 2024. This is driven
by expectations of increased cylinder deliveries
to heavy-duty hydrogen mobility. Additionally,
more than 15% of the current order backlog of
approximately NOK 1.3 billion consists of firm
purchase orders for delivery of hydrogen storage
systems to fuel-cell electric bus OEMs such as
Solaris, Caetano and New Flyer. The transit bus
segment is thus expected to also contribute
positively to revenue growth in 2024. The delayed
ramp-up of the new state-of-the-art cylinder
facility in Kassel, mainly impacting the delivery
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of heavy-duty cylinders for mobility applications,
are being remedied, and steady-state operation
is expected to commence by the end of the
second quarter of 2024. In China, following the
completion of facility construction, production
equipment is currently being installed and final
equipment deliveries are expected during the
first quarter of 2024. Due to rules and regulations
specific to the Chinese market, the JV will spend
most of 2024 obtaining facility approval, manu-
facturing license and Type 4 cylinder certification.
The external revenue contribution from the
Chinese joint venture is therefore expected to be
limited in 2024.
For the battery systems and vehicle integration
business, 2024 is a ramp-up year with start of
production on the Hino and Daimler programs
expected in the fourth quarter of 2024. This is
expected to contribute positively towards revenue
growth towards the end of 2024, and timing of
firm purchase orders for the Hino and Daimler
programs for execution in 2024 is expected in
the second half of the year. The battery modules
and pack systems will be produced in Hexagon
Purus’ facility in Kelowna, Canada, and the other
electrification components for the programs and
vehicle integration activities will take place in the
Company’s new Dallas, Texas facility.
Hexagon Purus’ order backlog, consisting
of firm customer purchase orders, stood at
approximately NOK 1.3 billion as of year-end
2023, with the vast majority for execution during
2024. The order backlog for execution in 2024
is expected to continue to grow as 2024 pro-
gresses, mainly driven by call-offs from already
secured long-term agreements with the likes of
Air Liquide, Linde, Lhyfe, Solaris, Nikola, Hino
and Daimler. For the full-year 2024, Hexagon
Purus is expecting revenue growth of at least
50% year-over-year. 2025 is also expected to be
a year of significant growth as several long-term
agreements are maturing and in tandem with
higher utilization of the production footprint. The
Company retains its target of NOK 4–5 billion of
revenue in 2025.
Improving profitability and reaching EBITDA
break-even in 2025, combined with prudent and
restrictive capital deployment is of critical impor-
tance to the Company. Several internal initiatives
are underway to underpin and build momentum
towards reaching profitability by 2025, focusing
along three axes:
• Maximizing capacity utilization: Ramp-up and
high utilization of production capacity footprint
and newly installed asset base;
• Operational improvements: Operational excel-
lence with focus on quality, reducing scrap and
inventory management;
• Minimizing capital spend: Complete current
capacity expansion program, including new
Dallas, Texas facility, but limit new investments
beyond already committed investments or
initiated capacity expansion programs. Focus
on optimizing working capital position.
These initiatives, combined with the expected
revenue growth and mix for 2024, are expected to
be gross margin accretive and to further improve
the Company’s gross margins in 2024, compared
to 2023. Additionally, with the revenue growth
expected for 2024 combined with continued cost
consciousness throughout the organization,
benefits of further operating leverage to the
Company’s fixed cost base is also expected in
2024. For instance, the hydrogen infrastructure
and mobility business, Hexagon Purus’ largest
business unit, is expected to reach EBITDA
break-even in 2024 (excluding the Chinese joint
venture). Additionally, initial revenue from the
Hino and Daimler programs in 2024 for the
battery systems and vehicle integration busi-
ness unit will help absorb parts of its cost base.
Management is handling the complex situation
with strong growth and significant ramp-up
activities at several locations in a good and
responsible way. The quality issues associated
with an early-stage and partly immature supply
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chain are not larger than one would expect under
the current circumstances.
Consequently, 2023 was the expected trough
from a Group EBITDA perspective, and significant
improvements to the Group EBITDA margin are
expected in 2024. The Company retains its target
of reaching EBITDA break-even in 2025.
Capital expenditure
The main priority from a capital deployment
perspective is to complete the current capacity
expansion program, including the new vehicle
integration facility in Dallas, Texas, but limit new
investments beyond this. Of the capacity expan-
sion program that was announced at Hexagon
Purus’ Capital Markets Day in April 2022, con-
struction of all facilities is now almost completed.
Most of the production equipment has arrived
at the various facilities, but there has been some
spill-over from 2023, and the remaining pro-
duction equipment is expected to arrive and be
installed during the first half of 2024.
The automated manufacturing facility for battery
systems in Kelowna, Canada, will produce the
battery systems that will be integrated onto
the battery electric vehicles produced for the
Hino and Daimler programs in the new vehicle
integration facility in Dallas, Texas. The remain-
ing production equipment for the automated
battery module production line is expected to
be installed during the first half of 2024. The
new vehicle integration facility in Dallas, Texas, is
already constructed, allowing for a quicker move-
in-date and shorter time to production. Tenant
improvements are required to tailor the facility to
Hexagon Purus’ needs and these improvements,
together with the assembly and integration
equipment and product development required
for delivering on the first phase of the Daimler
and Hino programs, are expected to drive
approximately USD 20m of CAPEX in 2024.
The second pre-payment installment of
USD 6.5m relating to the long-term supply
agreement for battery cells with Panasonic is
expected to be paid during the first quarter
of 2024. The final pre-payments related to the
supply agreement of approximately USD 34.4m
will be made in 2025.
Given expectations of at least 50% year-over-year
revenue growth in 2024, investments in working
capital will remain high, especially for the battery
systems and vehicle integration business which
is moving from small-scale prototyping to serial
production. The Company is working to optimize
its working capital position, including improving
payment terms with customers and suppliers and
keeping strong control of inventory.
The forward-looking statements made above
are, by their nature, subject to significant
risks and uncertainties because they relate
to events and depend on circumstances that
are expected to occur in the future. They are
therefore not guarantees of future performance.
While the statements reflect the current views
and expectations of Hexagon Purus based on
information currently available to it, they are
subject to various assumptions, in addition to
risks and uncertainties that may be outside of
its control. Hexagon Purus cannot provide any
assurance that the assumptions underlying
such forward-looking statements are free from
errors nor accept any responsibility for the future
accuracy of the opinions expressed herein, or
the actual occurrence of the forecasted develop-
ments. Actual results could differ materially from
those expressed or implied in forward-looking
statements. Any forward-looking statements are
based only on conditions as of the date on which
they are made and we are under no obligation to
update or alter such forward-looking statements
whether as a result of new information, future
events or otherwise.
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 profit forecasts for 2023 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 and a
robust equity ratio. The Company is predicting
strong growth in the years to come. This growth
will require further financing and the Board is of
the opinion that such financing will be available,
through equity and/or debt, given the outlook for
the Company and the industries it is operating in.
The parent company
The Parent Company Hexagon Purus ASA
incurred a loss for the year after tax of NOK 50.9
million in 2023. The Board of Directors of
Hexagon Purus ASA propose the loss for the year
is allocated as follows:
(NOK 1 000) 2023
Share premium (50.9)
Total allocation (50.9)
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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 require-
ments 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
companies implement corporate governance
practices that regulate the division of respon-
sibilities between the shareholders, the Board
of Directors and Executive Management more
comprehensively 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 reporting
of Corporate Governance
Hexagon Purus ASA’s principles for corporate
governance are subject to annual review and dis-
cussions by the Board of Directors. The Company
GENERAL
MEETING
CEO
GROUP
EXECUTIVE
TEAM
NOMINATION
COMMITTEE
AUDIT
COMMITTEE
REMUNE
RATION
COMMITTEE
AUDITOR
BOARD
Nomination
Selection
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Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
follows the Norwegian Code of Practice for
Corporate Governance, last updated 14 October
2021 (www.nues.no) by the Norwegian Corporate
Governance Board (NUES).
The Norwegian Code of Practice for Corporate
Governance is based on the “comply or explain”
principle. The company reports no deviations
to the recommendation of the code. Hexagon
Purus’ purpose is to be a driving force for a sus-
tainable planet. Our core values – integrity and
drive – support this purpose and ensure account-
ability for our actions. The Company is committed
to conducting its business in accordance with the
highest ethical standards with no tolerance for
corruption.
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 solutions in the field of clean
fuels, and everything connected therewith,
including investment in other companies.” A
more comprehensive discussion 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
represents a variety of backgrounds. The exec-
utive team showcases solid diversity in age and
backgrounds, with female representation stand-
ing at 13 per cent. Guided by a robust diversity,
equity, and inclusion policy, the Company dili-
gently 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 struc-
ture considered appropriate to the Group’s
objectives, strategies and risk profile. Hexagon
Purus operates in markets with high growth, and
the Company intends to make the necessary
investments to develop its business in these
markets. At the end of 2023 the total number of
shares in Hexagon Purus ASA was 276 797 456
(par value NOK 0.10). The share price moved
between NOK 35.02 and NOK 8.81 ending the
year at NOK 11.14, which represented a market
value of approximately NOK 3.1 billion. Given
the Company’s growth phase, the Board will not
currently prioritize shareholder returns in the
form of dividends. Consequently, the Board of
Directors does not recommend a dividend for the
year 2023.
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 2024, but no later than
30 June 2024, 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.
None of the authorizations have been used as of
the date this document was adopted.
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.
The Company normally conducts transactions in
its own shares through the stock exchange or at
equivalent market rates. If there is limited liquidity
in the Company’s shares, the Company may con-
sider other ways to ensure equal treatment of all
shareholders. Any transactions in own shares will
be carried out in compliance with applicable law.
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Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
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 nomi-
nation committee, are distributed and published
21 days in advance of the meeting date. The
Board will ensure that the Company’s sharehold-
ers can participate in the general meeting, that
the resolutions and supporting information dis-
tributed 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 shareholders as their proxy.
The Company has routines for ensuring that the
shareholders may elect an independent chairper-
son 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.
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
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
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Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
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
comprised of members that are independent
of the Company’s executive personnel, material
business contacts and the major shareholders. In
2023, 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 2023. 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 man-
agement and management of business areas
and subsidiaries. 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 responsibil-
ity 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 consid-
erations 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 annually, the Board assesses strate-
gies and guidelines for risk management. The
Board's 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.
Please see Risk 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 of the Board
The remuneration of the Board of Directors is
approved by the Company’s general meeting
based on a recommendation from the nom-
ination committee, and is intended to reflect
the Board's responsibility, expertise, time com-
mitment 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 additional duties should
be approved by the Board of Directors.
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. Purus has a global presence with facil-
ities in several locations across several continents,
and as such competes for senior management
talent worldwide. 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 adapted to comply with
established local practice and mandatory rules
in the jurisdiction of their employment and the
overall purpose of the remuneration policy. It is
Purus’ policy that base salaries shall reflect the
individual Executive’s position and degree of
responsibility. The size of the total remuneration
shall be in line with market conditions, 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
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Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
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. Generally, there is a cap incorporated into
the Company’s long-term incentive programs.
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 2023.
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 rele-
vant 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 shareholders will be published
on the Company’s website at the same time
as it is sent to shareholders. Hexagon Purus
holds open presentations in connection with its
financial reporting, and these presentations are
broadcasted 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 pro-
vides 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 fea-
tures of a plan for implementing the auditing work.
The auditor holds an annual presentation to the
Board with an opinion on the Company’s account-
ing principles, asset management and internal
control procedures. The Group’s auditor is EY, who
was appointed by the general meeting. The auditor
has no engagements 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 27 to the consolidated
annual financial statements for information about
remuneration to the auditor, including statutory
audit and other services.
FROM THE BOARD ROOM | CORPORATE GOVERNANCE REPORTFROM THE BOARD ROOM | CORPORATE GOVERNANCE REPORT
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
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 2023 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, 18 March 2024
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
FROM THE BOARD ROOM | CORPORATE GOVERNANCE REPORTFROM THE BOARD ROOM | CORPORATE GOVERNANCE REPORT
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Board of Directors
Espen Gundersen Jon Erik Engeset Martha Kold Monclair Hidetomo Araki
Board position Chair of the Board Board member Board member Board member
Experience Espen Gundersen has extensive experience
from executive positions. Until February
2022, he was the CFO and Deputy CEO of
Tomra Systems, where he has held various
positions since 1999. He is currently a full time
non-executive board member and sits on the
board of Scatec ASA, Kitron ASA and Kid ASA.
In addition to being the chair of the Board of
Hexagon Purus, Espen also chairs Hexagon
Purus’ audit and compensation committees.
Espen is a professional accountant and has his
MBA from BI Norwegian Business School.
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. Jon Erik holds an MSc
and MBA from NHH – Norwegian School of
Economics.
Martha Kold Monclair has extensive board
experience from various industries, including
Kongsberg Group and BW LPG, and is cur-
rently a board member of Edda Wind, Reach
Subsea and Ocean GeoLoop. She was the
CEO of Deepwell from 2007–2017 and Steinsvik
from 2018–2020. Martha holds two PhD’s,
one of them specializing in Strategies for
Commercialization of New Technology from
BI. She is also part of Hexagon Purus' audit
committee.
Hidetomo Araki is currently Senior Vice
President, Regional Officer of Chemicals in EMEA
for Mitsui & Co. Ltd. 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 invest-
ment banking. Hidetomo has a BA, Economics
from Keio University and an Executive MSc in
Innovation and Entrepreneurship from HEC
Paris. He is also part of Hexagon Purus' compen-
sation committee.
Number of shares 45 619 199 473
1
4 124
1
1
Includes shares owned by related parties
FROM THE BOARD ROOM | BOARD OF DIRECTORSFROM THE BOARD ROOM | BOARD OF DIRECTORS
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Board of Directors cont.
Susana Quintana-Plaza Liv Fiksdahl Rick Rashilla
Board position Board member Board member Board member
Experience Susana Quintana Plaza is the CEO and founder
of BM2Solar as well as the Chair of the board
of QUADRANTE-Engenharia and a supervisory
board member for Topsoe. She is also a strate-
gic advisor to several private equity and venture
capital funds. 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. Susana holds a BSc and MSc
in Aeronautical and Astronautical Engineering
from the University of Washington and an MBA
from Harvard Business School. From 2018–2019,
Susana was a member of the Board of Directors
of Hexagon Composites ASA.
Liv Fiksdahl is currently Vice President at
Capgemeni Invent Norway. She has extensive
experience from various board positions and
is currently a board member of Posten Norge
and Arion Banki. Liv Fiksdahl has more than 30
years of experience from the banking sector, in
which her primary focus has been transforma-
tion, technology and operations. She has held
several leadership positions, including spending
close to 11 years as Group EVP at DNB Bank
ASA. 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. She is also part of Hexagon
Purus' audit committee.
Rick Rashilla was named SVP Research &
Development in Hexagon in 2020. Prior
to his R&D role, Rick has held several key
management positions in the Group, most
recently as VP Hydrogen Automotive at
Hexagon Purus’ location in Germany. He has
35+ years’ experience in managerial and R&D
positions related to filament wound pressure
vessels and other composites technology from
General Dynamics, Brunswick Defence and
Lincoln Composites. Rick has a BS in Industrial
Management from the University of Cincinnati.
He is also part of Hexagon Purus' compensation
committee.
Number of shares 67 362
FROM THE BOARD ROOM | BOARD OF DIRECTORSFROM THE BOARD ROOM | BOARD OF DIRECTORS
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Sustainability at Hexagon Purus
48
Responsible employer
52
Our contribution through our solutions
63
Minimizing our environmental footprint
67
Product safety and compliance
75
Governance
80
Sustainability
reporting
SUSTAINABILITY REPORTING SUSTAINABILITY REPORTING
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Sustainability at
Hexagon Purus
2023 is the first year where Hexagon Purus includes sustainability
performance in its Annual Report as a stand-alone entity. As such, our
Annual Report 2023 marks a new era of sustainability reporting while also
providing an update on Hexagon Purus’ 2023 development, targets and
measures within sustainability.
This report has been prepared in accordance with
the GRI 2021 Universal Standards. An overview of
the various disclosures we report on, in addition
to any references, comments or omissions, can
be found in the GRI Index. The GRI Index is
disclosed in Appendix II (see page 164) of this
report, in addition to being published on
www.hexagonpurus.com.
Our sustainability reporting describes our com-
pany’s sustainability impact, and how we are
affected and respond to sustainability risks and
opportunities.
Organizational boundaries
Hexagon Purus’ sustainability reporting for
2023 covers the same companies as the finan-
cial reporting, except for the Chinese entities.
From 2024 and onwards, we plan to include all
Hexagon Purus’ subsidiaries and joint ventures
(JVs) in the sustainability reporting. A complete
overview of which subsidiaries are included for
2023, are listed in Note 1 in the Group Financial
Statements. For any future mergers, acquisitions,
or disposals, we will aim to adjust historical
figures to reflect any such events.
Restatements
Since this is Hexagon Purus’ first time reporting
on sustainability as a stand-alone entity, there
are no restatements for 2023. Any future sustain-
ability reporting will be restated explaining the
reason and the effect of the restatements.
External Assurance
With the implementation of the Corporate
Sustainability Reporting Directive (CSRD), it is
required to report on the European Sustainability
Reporting Standards (ESRS) from 2024 and
onwards and external (limited) assurance is man-
datory. Hexagon Purus is therefore committed
to engaging an independent third-party for an
external assurance of our sustainability reporting
from 2024 and onwards.
SUSTAINABILITY REPORTING | SUSTAINABILITY AT HEXAGON PURUSSUSTAINABILITY REPORTING | SUSTAINABILITY AT HEXAGON PURUS
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Material topics and our sustainability priorities
For 2023, the materiality analysis done by
Hexagon Composites before deconsolidation of
Hexagon Purus, is used to address both material
topics and how they relate to our sustainability
priorities.
For 2024, Hexagon Purus will conduct a double
materiality analysis aligned with CSRD, where we
aim to understand and communicate the impacts
in our entire value chain, meanwhile address-
ing short-, medium-, and long-term risks and
opportunities that might have an impact on our
business going forward.
We will throughout this report address the mate-
rial topics by describing: Why the sustainability
topic is material; what policies or commitments
we have established to address the material
topic; any actions we have taken to manage the
topic throughout the year; commenting on pro-
gress for the reporting year; and measures that
will be taken to manage the material topic going
forward.
The Executive Management and the Board of
Directors are ultimately responsible for reviewing
and approving the sustainability information
reported in this document. Due to the decon-
solidation in 2023, the Hexagon Purus Executive
Team and the Hexagon Purus Board of Directors
have not been fully involved in the materiality
analysis. This will change with the introduction of
CSRD.
OUR PRIORITIES 2023 MATERIAL TOPICS
Responsible employer • Occupational health and safety
• Diversity, equity and inclusion
• Workforce development
Our contribution through our solutions • Clean energy solutions
Minimizing our operational
environmental footprint
• Greenhouse gas emissions
• Material waste and circularity
Product safety and compliance • Continuous product safety improvements
Governance • Business ethics and anti-corruption
• Responsible procurement
SUSTAINABILITY REPORTING | SUSTAINABILITY AT HEXAGON PURUSSUSTAINABILITY REPORTING | SUSTAINABILITY AT HEXAGON PURUS
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Impacts in our value chain
Hexagon Purus’ material topics are an integrated part
of our business. The table illustrates where our material
impacts lie in our value chain. We manage and evaluate
these impacts as part of our operational and strategic
planning.
Significant (negative) impact (or risk)
High (negative) impact (or risk)
Positive impact (or opportunity)
Design and
Product
Development
Raw Material
Sourcing
Product
Processing and
Manufacturing
Distribution Use-stage End of life
Our activities
related to
developing our
technology,
products and
solutions
Selection and
engagement with
suppliers on our key
raw materials; carbon
fiber, plastics, metal
parts, etc.
All stages of our
manufacturing
processes and
operational
activities
Transportation
from manufactur-
ing to use-stage
Use of our
mobility and
infrastructure
solutions
Treatment
and circularity
of end-of-life
products
Responsible employer Occupational health and safety
Diversity, equity and inclusion
Workforce development
Contribution through our solutions Clean energy solutions
Minimizing our operational footprint Greenhouse gas emissions
Material waste and circularity
Product safety and compliance Continuous product safety improvements
Governance Business ethics and anti-corruption
Responsible procurement
SUSTAINABILITY REPORTING | SUSTAINABILITY AT HEXAGON PURUSSUSTAINABILITY REPORTING | SUSTAINABILITY AT HEXAGON PURUS
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Stakeholder engagement
KEY TOPICS HOW WE ENGAGE IMPACT ON HEXAGON PURUS
Employees and potential employees
• Workforce development
• Occupational health and safety
• Diversity, equity and inclusion
• Internal communication through
email, Workplace and Intranet
• Local town halls
• Global quarterly updates
• Department meetings
• Employee surveys
• Leadership meetings
• Training
• 1:1s
• Social gatherings
• Career fairs
• Social media
Hexagon Purus’ employees are
fundamental for our sustainable
value creation and to achieve our
business goals and ambitions.
Customers
• Low carbon technology solutions
• Climate action
• Responsible procurement
• Product lifetime
• Governance
• Human rights in supply chain
• Emails
• Meetings
• Presentations
• Site visits
• Conferences
• Industry events
• Customer surveys
Hexagon Purus’ customers have a
direct impact on our business through
the purchase and use of our products.
Collaborating with our customers to
ensure that the overall impact of our value
chain is as low as possible is important
to drive sustainable value creation.
KEY TOPICS HOW WE ENGAGE IMPACT ON HEXAGON PURUS
Investors and Strategic Partners
• Corporate governance
• Compliance
• Ethics and anti-corruption
• EU taxonomy
• Product and solution footprint
• Presentations
• Annual General Meeting
• Meetings and roadshows
• Annual Report
• Website
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.
Suppliers
• Responsible procurement
• Human rights in supply chain
• Anti-corruption and integrity
• Occupational health and safety
• Emails
• Supplier questionnaires
• Social media
• Website and press releases
• Meetings
• Industry events
• Presentations
• Supplier visits and audits
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.
NGOs, governments, regulators
• Anti-corruption and integrity
• Human rights
• Health and safety
• Diversity and inclusion
• Environmental action
• Local community
• Partnerships
• Conferences
• Industry events
• Community events
• Public forums
• Industry associations, advisory
boards and committees
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.
Stakeholders both internally and externally play a crucial role in shaping Hexagon Purus’ operations and we strive for
active and regular engagement and collaboration with them. The key stakeholders involved in our activities include:
SUSTAINABILITY REPORTING | SUSTAINABILITY AT HEXAGON PURUSSUSTAINABILITY REPORTING | SUSTAINABILITY AT HEXAGON PURUS
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Responsible
employer
Why this topic is material for Hexagon Purus
Our people are the cornerstone of our success. Our value creation relies on
our employees and their competence, behaviors and commitment. We are
fortunate to have a team of highly skilled and dedicated employees across
our sites. We will continue to build a safe environment, both physically and
psychologically, that allows people to be at their best.
Occupational health and safety of our employees, workforce development
and diversity, equity, and inclusion are the material topics we have defined
within Responsible Employer.
SUSTAINABILITY REPORTING | RESPONSIBLE EMPLOYERSUSTAINABILITY REPORTING | RESPONSIBLE EMPLOYER
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
How we work to be a responsible employer
Growing from approximately 140 employees in
2020 to more than 650 employees in 2023 illus-
trates the tremendous organizational expansion
we have experienced in the past three years. We
also acknowledge that this is a demanding phase
as we scale up. We invite our colleagues to share
their perspectives to shape our workplace further.
We aim to build the Hexagon Purus culture
together in line with our desired behaviors and
values.
In 2023, our global leaders actively participated
in a comprehensive process to formulate our
desired behaviors.
Work for each other’s success • We invest in each other’s success, working
together towards a common purpose and cele-
brating 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 opportuni-
ties for growth
SUSTAINABILITY REPORTING | RESPONSIBLE EMPLOYERSUSTAINABILITY REPORTING | RESPONSIBLE EMPLOYER
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Occupational health and safety
Health and safety are key priorities at Hexagon
Purus. 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 has the overall respon-
sibility for health and safety at Hexagon Purus.
Top management sets the tone for the rest of
the company and their positive role modelling is
essential to lead, promote, and develop a culture
where everyone works towards a zero-injury work
environment. This is operationalized by each
and every employee and guided by our EHS,
Operations, and People and Culture teams.
Local management is responsible for supply-
ing our employees with proper training and
equipment, ensuring a safe work environment,
and addressing any unsafe behaviors and con-
ditions. Local management is also responsible
for prioritizing health and safety in all operating
decisions. Our employees are responsible for
following our policies and reporting all incidents,
safety breaches and hazards.
All sites follow local EHS regulations and
standards. Currently our tools and routines to
systematically identify hazards and implement
preventive measures are conducted on each
site by qualified local EHS resources. Identifying
work-related hazards that pose a risk of
high-consequence injury is crucial for effective
EHS risk mitigation. At our production sites,
hazard identification and assessment are under-
taken using established methods and processes,
such as workplace inspections, reviewing inci-
dent investigations, consultation with workers,
Job Safety Analysis, and safety data sheets. To
mitigate risks, we aim to prioritize engineering
controls, followed by administrative controls, and
personal protective equipment. Hazard assess-
ment is an ongoing process requiring regular
review and should form part of change manage-
ment. Our employees, or workers whose work is
controlled by us, are asked to remove themselves
from situations that could cause harm, without
fear of reprisals.
Our goal is to implement a global health and
safety management system. We want to provide
a safe and healthy workplace, prevent work-
related injury and illness for all our people, and
aim to continuously improve our performance in
this area.
With our expanding global operations and focus
on safety and quality we also aim to harmonize
our EHS standards across our sites. This requires
input from our employees, both concerning how
we can optimize site-specific implementation
and how relevant EHS information can be com-
municated at the various sites. Input is received
from local and cross-border workshops, reporting
to the nearest leader and online surveys. For
our facility in Kassel, we have a works council
which is engaged as a party to promote workers’
participation and consultation concerning health
and safety, among other topics. Harmonization of
EHS standards also requires accommodation of
SUSTAINABILITY REPORTING | RESPONSIBLE EMPLOYERSUSTAINABILITY REPORTING | RESPONSIBLE EMPLOYER
1
Germany: https://eige.europa.eu/gender-equality-index/2019/domain/work/DE; US: S2403: INDUSTRY BY SEX FOR THE ... - Census Bureau
Table; Canada: Proportion of women and men employed in occupations, annual, inactive (statcan.gc.ca)
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
proper training. We provide regular EHS training,
adapted to local needs and requirements.
The well-being and health of our employees is a
priority for us. We therefore offer access to physi-
cal and mental health services for our employees,
in addition to internal activities to promote
physical activity and a healthy lifestyle through
common activities like company runs, on-site
gym facilities or discounted gym membership,
and dental care. These benefits vary from location
to location depending on local needs, require-
ments and depending on what is offered by local
state health services.
Hexagon Purus requires reporting of any
work-related hazards and hazardous situations
without fear of retribution. It is the duty of all
employees and business partners to report
health and safety incidents, concerns, violations
or potential violation of any applicable law or
Hexagon Purus’ policies and/or procedures. If
internal reporting is being perceived as impossi-
ble, we also have an independent Whistleblowing
channel that complies with national and
international standards and is monitored by an
independent third-party.
Diversity, Equity and Inclusion
Diversity, Equity and Inclusion (DEI) is key to our
ongoing and future success, and we are eager
to increase representation among underrep-
resented 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.
We believe that 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.
Our company consists of people with diverse
backgrounds regarding nationality, culture,
and skillset. Currently we do not have the
desired gender balance in our workforce. Our
ambition is to increase female representation
in the whole organization. The war for talent is
getting tougher and the demand for female
representation among manufacturing companies
is high. Combined with the underrepresentation
of women in science, technology, engineering,
and mathematics (STEM) occupations in our
main production geographies, there are systemic
factors that can explain the current female
underrepresentation.
1
We are all responsible for fostering diversity,
equity and inclusion, and this is highlighted in
our policies and behaviors. We do not tolerate
discrimination against any employee or job
applicant based on non-work-related personal
characteristics, such as race, ethnic, social, or
national origin or background, religious beliefs,
gender, gender identity, status, or expression,
sexual orientation, family or marital status,
age, physical or mental disabilities, medical
conditions, or union membership or activity.
We do, however, reserve the right to protect our
intellectual property, which may bring some
limitations to recruitment, information sharing,
mobility, and/or employment in our global
organization.
Our commitment to the DEI agenda is stated
in our DEI Policy, which can be found on our
website. We measure the employee perception
of DEI matters in our annual employee survey
and implement actions as result of the employee
feedback.
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Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Workforce development
Workforce development is the cornerstone of
unlocking the full potential of our employees,
and our workforce is growing rapidly. In creating
an environment where people can grow and
develop, culture and leadership play pivotal roles.
We have applied a conscious approach to culture
development and involved all senior leaders in
this work.
Performance management and employee devel-
opment are key priorities, and a new concept is
developed for this purpose, called Performance,
Development & Drive (PDD). This program
intends to strengthen the interaction between
employees and leaders and provides a strategic
approach to goal setting. Key focus areas are
frequent, forward-looking feedback, giving
recognition, and focusing on areas for develop-
ment and growth.
Internal communication is another very powerful
tool for building culture. A key priority in 2023
has therefore been to enhance our internal com-
munications and share information about our
purpose, priorities, challenges, and progress.
In 2023, we held our first in-person gathering
for all senior leaders, known as the Extended
Leadership (XL) Meeting, which will be an
annual leadership meeting. During this event,
we collaboratively delved into crucial topics such
as business strategy, culture, leadership, and
sustainability. For many leaders, it was a chance
to meet numerous colleagues face-to-face for
the first time and to further strengthen global
collaboration.
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Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Our results for 2023
Occupational health and safety
In 2023 we have strengthened our EHS team by
hiring new employees with specific responsibili-
ties for EHS, including a new Global EHS Director
to take our initiatives to the next level. We have
also expanded our capacity with new or updated
facilities in all geographies where we have pro-
duction, without any high-consequence injuries
during the construction and commissioning
phase of the new sites. All the sites provide safe
and ergonomic working conditions, ensuring
that well-being and safety among our workers
continue to be a priority.
Based on our results from previous years we
have taken a more active approach to training to
maintain awareness of health and safety. At our
production sites, we work to increase participa-
tion in safety dialogues and encourage sharing
lessons learned. We have also established a
Hexagon Purus EHS committee led by the new
Director of EHS to share learning and best prac-
tice across sites. Our main production facilities
in the US, Canada, and Germany vary in product
and production methods, and therefore we offer
local site-specific training tailored to local needs.
Purus delivered 1.12 million working hours in 2023.
We did experience 12 recordable work-injuries
and 9 lost-time incidents, and no fatalities. The
main types of work-related injuries involved
struck by object, slips and trips, falls, and cut.
We do not monitor sickness absence levels in the
US, as all employees are allocated generic paid
time off (PTO) of 15 days. These days include,
but are not limited to, sickness absence. For
Norway, sickness absence rate is not monitored
sufficiently, the rate is estimated to be below
5%. Systematic tracking of sickness levels for our
global sites where such records are applicable will
be part of the data management effort moving
forward.
OCCUPATIONAL HEALTH AND SAFETY
Indicator 2023 unit
Fatalities 0 number
High-consequence work-related injury 0 number
Recordable work-related injury 12 number
Total recordable incident frequency (TRIF) 10.7 Rate per 1 000 000 hours
Lost time incidents 9 number
Lost time incident frequency (LTIF) 8.0 Rate per 1 000 000 hours
Close call
1
81 number
Hours worked
2
1 125 621 hours
1
Work-related incident where no injury or ill health occurs, but which has the potential to cause these (ISO 45001:2018)
2
Hours worked by Hexagon Purus employees at all sites, except for Weeze where both employees and non-employee workers are
accounted
ABSENCERATE DUE TO ILLNESS
2023
Germany
3
5.9%
Norway Below 5%
Canada 0.007%
3
including unpaid days
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Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Diversity, equity and inclusion
Continuing our efforts from previous years, we
have in 2023 worked across all our geographies
and business areas to increase gender diversity.
Based on our reported figures we still have a
way to go, but we are making good progress. We
have been able to fill 6 new senior leader roles
(directors and above) with female candidates, 5
of them joined in 2023.
In 2023 we also developed our own Diversity,
Equity, and Inclusion Policy with clear expecta-
tions and requirements for all Hexagon Purus
personnel or workers whose work is controlled by
us. This policy will be used as a framework for our
commitment to the DEI agenda going forward.
Workforce development
Within Workforce Development, we have imple-
mented several initiatives in 2023 related to
cultivating our culture, strengthening internal
communication, and offering new opportunities
for training and development.
We have been gearing up to expand the roll out
of a dedicated internal communication platform
for employees in Hexagon Purus, scheduled for
implementation in 2024.
In 2023 we conducted on-site training ses-
sions on our new approach on Performance,
Development and Drive across all locations, with
plans for continued improvement in 2024 through
additional training and system support. We
provide local training on various other subjects,
and this training is tracked and documented
locally. Recognizing the advantages of a global
approach, we have kickstarted a global Learning
Management System (LMS) project to provide
global tracking and detailed reporting. In 2023, the
initial phase involved the pilot implementation of
"LMS365" in Kelowna, Canada. Drawing valuable
insights from this pilot, our objective is to extend
the LMS implementation to all locations in 2024.
We aspire to employ the same system across all
sites, provided it is digitally feasible.
Our employees are clear that they want even
more training and development opportunities,
and this will be a continued focus for 2024.
As part of our ongoing efforts to develop our
culture, we conduct annual surveys to gather
feedback from our employees. We have part-
nered with Great Place to Work to conduct these
surveys. In 2023, we expanded this initiative to
include our location in Weeze for the first time.
GPTW RESULTS
2023
2022
50
60
70
80
90
100
Credibility Respect Fairness Pride Camaraderie
%
%
%
%
%
%
%
%
%
%
Credibility
Respect
Fairness
Pride
Camaraderie
Collaboration
Equity
Caring
Caring
Equity
Collaboration
+10%
63%
69%
59%
61%
60%
65%
+3%
+8%
CARING, EQUITY AND COLLABORATION
2023
2022
Figure 1 - Scores per Main dimensions
In 2022, we identified Caring, Equity
and Collaboration as key categories for
improvement. We are pleased to see
positive progress in all these areas. The
category Caring shows in particular great
progress, see figure below.
Even though Equity and Collaboration
have improved, we still see that these
are among our lowest scores – and will
continue to be areas of focus.
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Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
A total of 491 employees, equivalent to 77% of
our workforce at the time, took part in the 2023
survey. The overall score for our survey was 74%,
implying that Hexagon Purus employees agree
with a total of 74% of all the statements from the
survey. Our scores were above the certification
threshold at all locations, meaning that we have
achieved Great Place to Work certification in all
countries where we operate.
Following the 2022 survey, we organized focus
groups at all production sites and involved our
team members in generating action plans with
initiatives to address the feedback. These activi-
ties were reported to the executive management.
These initiatives triggered both local and global
improvements. We take pride in the substantial
progress made since the 2022 survey.
improvement on the statement “This is a
psychologically and emotionally healthy
place to work”
We have taken several initiatives in this
area, such as leadership training and
support from an external health counselor.
The goal of our company's efforts in this
area is to devise solutions that promote
overall well-being, boost motivation,
and nurture sustained avenues for
growth. In Kassel, we have engaged an
external health counselor that ensures
a confidential and off-site environment
where our employees can seek help and
guidance. In Canada and the US, we have
implemented an Employee and Family
Assistance Program with similar objectives.
The health of our employees is of utmost
importance to us, encompassing both
physical and mental well-being.
OUR STATEMENTS WITH THE LARGEST IMPROVEMENT
2023
2022
People celebrate special events around here
Our facilities contribute to a good working enviroment
This is a psychologically and emotionally healthy place to work
I feel good about the ways we contribute to the community
Taking everything into account, I would say this is a great place to work
+26%
+9%
+17%
+11%
53%
79%
58%
75%
54%
65%
76%
85%
72%
80%
11%
improvement on the statement “Our
facilities contribute to a good working
environment”
In 2023 we opened three new facilities - in
Kelowna (Canada), Westminster (US), and
Kassel (Germany). This represented a big
improvement in the day-to-day working
conditions for all our employees in these
locations. We were happy to see a 17%
improvement on “Our facilities contribute
to a good working environment”. In
the beginning of 2024, we are looking
forward to further improving the working
conditions for our employees at our new
facilities in Weeze (Germany) and in China.
17%
+8%
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Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
In 2023 we developed a crisis preparedness and
response protocol to ensure that we are well
prepared to manage any emerging issues and
crises which could threaten our people, assets,
and reputation. In the summer of 2023, Kelowna
(Canada) faced severe wildfires, prompting the
evacuation of our premises to ensure the safety
of our employees. All employees received full
compensation during this period. Employees
were strongly advised to prioritize safety
measures for themselves, their families, and
the community. The company offered support,
including assistance with housing, food, or any
other essential needs arising from the situation.
Thankfully, all employees managed through the
challenges safely.
At the end of 2023, Hexagon Purus had 653
employees globally, of which 647 were employed
on a permanent basis. Approximately 50% of our
people in 2023 were working within Operations.
The remaining were employed in engineering
and technology, finance, people & culture, pro-
curement, IT, quality, and client facing roles such
as sales and marketing. In addition, Hexagon
Purus had 35 agency workers in its workforce.
HEAD COUNT OF PERMANENT, TEMPORARY AND AGENCY WORKERS, YEAREND 2023
Employee category Norway Germany US Canada
Total per
employee
category
Permanent 26 487 53 81 647
Temporary 1 4 0 1 6
Agency worker 1 34 0 0 35
Total per country 28 525 53 82 688
HEAD COUNT OF FULLTIME AND PARTTIME EMPLOYEES BY GENDER AND REGION, YEAREND 2023
Employee category Gender Norway Germany US Canada Total
Full-time employees Female 12 52 5 16 85
Male 15 401 47 66 529
Female % 44% 11% 10% 20% 14%
Part-time employees Female - 21 - - 21
Male - 17 1 - 18
Female % - 55% - - 54%
GOVERNANCE BODY
Age group (%)
Rank
Gender
(% female) <30y 30y – 50y >50y
Executive Management – Level 1 13% 0% 38% 63%
Directors and above
4
– Level 2 16% 2% 76% 22%
Staff and production workers – Level 3 16% 26% 54% 19%
All employees 16% 24% 56% 20%
4
Career level from M5 and above, excluding executive management.
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Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Management Evaluation
The safety and well-being of our employees is
our top priority. We are not satisfied with this
year’s EHS performance figures. The number of
work-related injuries indicates that we still have
significant room for improvement. At the same
time, we are pleased to see that some sites have
improved their local health and safety measures.
We are also concerned about the close calls,
which are alerts of unmanaged hazards or unsafe
behaviors we must address.
This demonstrates that we must implement
several initiatives in the years going forward to
fulfill our ambitions of world-class manufactur-
ing, with safety and product quality as integral
contributions to our business growth. We are
happy with the state of our new facilities, provid-
ing safe and ergonomic working conditions.
We also acknowledge that our workforce could be
more diverse on various demographic indicators.
We are happy to see that we have recruited more
female workers across all levels of the organi-
zation, even though we still have a way to go to
achieve the gender balance we want on all levels.
We are also satisfied to see significant improve-
ments on key topics in the Great Place to Work
Survey, and that we saw improvement on all
focus areas from 2022. This is an indication that
previous years’ initiatives have been successful
and that employees feel heard when issues are
raised.
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 and delivery plans. We will intensify our
efforts with regards to workforce development in
2024.
Currently we manually track learning within our
company, fully trusting learning experts on all our
sites to do the training of our employees. We aim
to strengthen our competence mapping and are
implementing a learning management system
to strengthen and harmonize our competence
development and tracking.
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Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
GOING FORWARD
The following are our most important initiatives for 2024:
Occupational Health and Safety
• Intensifying safety leadership: we will
strengthen safety standards and practices
within the organization through mandatory
training, clear communication, and active
management participation.
• Rolling out specific EHS programs globally
and harmonizing the EHS function with the
new Global EHS Director.
• Implementing EHS software across our sites:
We will select, customize, and implement
an appropriate EHS software solution to
streamline processes, manage data, and
facilitate compliance.
• Developing, implementing, and preparing for
ISO certifications in 2024
• Including ISO 14001 and 45001 certifications in
Kassel and Weeze as targets within the bonus
program for leaders.
Diversity, equity and inclusion
• Ensuring we further increase recruitment
of underrepresented groups: Intensifying
training specifically for sourcing and selection
skills – including awareness of diversity
aspects in the recruitment process.
• Evaluating local diversity initiatives and
sharing learning across sites.
Workforce Development
• Further strengthening and amplifying internal
communication, including the expansion of
existing internal communication tools, and
introducing new direct global channels, such
as global town halls, to enhance the sharing
of our strategic direction, priorities, and
achievements.
• Developing and introducing Purus
development program, including
development program for leaders.
• Utilizing and further strengthening our
performance management platform
(Performance, Development and Drive). We
aim to improve system support and conduct
more feedback training.
• Further developing the onboarding process
and the employment journey.
• Conducting local and global succession
planning and talent management reviews.
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Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Our contribution
through our solutions
Why this topic is material for Hexagon Purus
2023 was the hottest year ever recorded.
5
It has also been a year where the
physical effects from climate change have been highly present and visible,
from hazardous wildfires in Canada, heat waves in Europe, to heavy rain
and flash floods in Asia. Increasing greenhouse gas (GHG) emissions, rising
temperatures, and dangerous feedback loops are all contributors to these
climate change effects. We need smart and scalable solutions and products
to turn the tide. We believe our technologies and capabilities can play an
integral role in combating climate change, and this is why we exist.
The introduction of national and multinational
climate investment programs, such as the
Inflation Reduction Act (IRA) and Horizon Europe,
combined with a global energy crisis where
energy security is a key driver, contribute to the
current momentum for renewable infrastructure
and mobility solutions. We are proud of our role
as global leaders in key technologies needed
for hydrogen infrastructure and zero emission
mobility, and work with most mobility segments
for transportation and mobility to contribute to
lower GHG emissions. This is how our contribu-
tion through our solutions can play an important
part in solving one of the most challenging and
complex problems of our time.
5
European Commission Copernicus Climate Change Service, “Copernicus: November 2023 – Remarkable Year Continues,
with Warmest Boreal Autumn. 2023 Will Be the Warmest Year on Record,” December 6, 2023, https://climate.copernicus.eu/
copernicus-november-2023-remarkable-year-continues-warmest-boreal-autumn-2023-will-be-warmest-year.
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Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
How we work with our contribution through our solutions
Transportation and mobility are amongst the
largest contributors to GHG emissions, currently
responsible for 23% of global energy-related CO
2
emissions.
6
At Hexagon Purus we develop both
hydrogen and battery electric storage solutions
which offer zero-emission alternatives to fossil
fuels in the mobility sector, working in close
collaboration with customers to identify, develop
and manufacture products that are right for them
and their different use cases.
Our cylinders can be found in multiple mobility
segments we are operating in, ranging from
aerospace, distribution, infrastructure, marine,
automotive, construction, railway to snow groom-
ers, while our battery packs are used mostly in
medium- and heavy-duty vehicles.
Our hydrogen infrastructure solutions can also
play a role in decarbonizing industry. Several
industries use hydrogen today in their manu-
facturing processes including pharmaceuticals,
semiconductors and food processing. Today,
this hydrogen is mostly grey, but as the energy
transition evolves – more green hydrogen will
be available. Hydrogen has traditionally been
transported using steel tube trailers but our
technology using Type 4 cylinders has the advan-
tage that hydrogen can be stored at much higher
pressure, with less weight. With triple the storage
capacity of steel cylinders, it means running one
trip instead of three, significantly reducing travel
for customers.
More than 18% of our employees are dedicated
to engineering and R&D efforts to continuously
improve the quality, safety, and environmental
impact of our products and solutions. We work
in close collaboration with our customers and
everything we produce originates from our
scientific and engineering expertise and our
customers’ needs.
To fully understand our contribution through
our solutions we have initiated a Life Cycle
Assessment (LCA) program for our product
portfolio. While we firmly believe that we can help
mitigate the effects of climate change through
our solutions, we must prove this with the sci-
entific and engineering approach that we are
known for. We currently work to fully understand
the environmental impact of our products and
solutions to measure and report avoided GHG
emissions in the future.
LCAs will provide information about the envi-
ronmental impact from our solutions from a life
cycle perspective. One aspect of our product
portfolio is its extensive lifetime, represented
by our distribution modules, stationary storage,
mobile refueling stations, cylinders, and battery
systems. For instance, a typical lifetime for
our cylinders is 20 years before they need to
be recertified and repurposed for continuous
operations at appropriate pressure levels. This
enables extended use of the cylinders having the
most beneficial impact on the life cycle environ-
mental aspects. We acknowledge that there are
challenges in handling our cylinders and battery
packs when they reach end-of-life, and due to
this we are collaborating with external companies
with expertise within recycling and downcycling
to identify the best methods for handling these
obsolete products.
More information about how our products enter
the circular economy, and how our focus on
safety and quality play an important part in our
circular mindset, can be found in the chapters
related to Material waste and circularity (see
page 68) and Product safety and compliance (see
page 75) respectively.
6
Intergovernmental Panel On Climate Change (IPCC), ed., Climate Change 2022 - Mitigation of Climate Change: Working Group III Contribution
to the Sixth Assessment Report of the Intergovernmental Panel on Climate Change, 1
st
ed. (Cambridge University Press, 2023),
https://doi.org/10.1017/9781009157926.
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Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Our results for 2023
We have experienced tremendous growth in sales
of our products and solutions in 2023 compared
to 2022, indicating that there is strong demand
for hydrogen infrastructure and zero emission
mobility solutions. We will measure our impact
and progress by calculating avoided emissions
when we have LCAs of sufficient quality.
In 2023 we initiated our LCA program, with the
intention of understanding and communicating
the environmental impacts of our products. LCA
will give more information about the impact of
our products than just GHG emissions. Important
impact categories such as ozone depletion, water
use, and terrestrial ecotoxicity are all considered
in an LCA.
Providing insights to the role our solutions play in
a decarbonized future is also something we have
been working with in 2023. We have increased our
efforts in internal and external R&D projects and
non-governmental organizations to educate and
advocate our solutions to potential customers
and regulators. We are participating in a Horizon
Europe program concerning hydrogen storage
and distribution and have also been granted
support from Innovation Norway to build a full-
scale model of a maritime hydrogen fuel system,
showcasing solutions available for zero-emission
shipping.
SUSTAINABILITY REPORTING | OUR CONTRIBUTION THROUGH OUR SOLUTIONSSUSTAINABILITY REPORTING | OUR CONTRIBUTION THROUGH OUR SOLUTIONS
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Management Evaluation
We know that our products and solutions reduce
tailpipe GHG emissions relative to other current
alternatives. Our revenue growth is an acknowl-
edgement of our solutions being perceived as
more innovative and environmentally friendly
than other current technologies.
All our segments have experienced growth since
2022. We are currently scaling up our capacity
to meet current and future market demands,
including our order backlog. In 2023 we have built
additional capacity for even higher contribution
through our solutions in Kelowna, Kassel, and
Westminster, and expansion in Weeze. We have
also announced a lease agreement for a vehicle
integration facility in Dallas. We expect that our
joint venture in China is operating in 2024, also
contributing to our future capacity.
GOING FORWARD
We have defined the following initiatives as
important for 2024:
• Applying for funds and participating in
research projects related to how our solu-
tions can contribute positively to the planet
• Completing LCAs for our Type 4 cylinder and
initiating LCAs of our distribution system and
possibly for battery packs and systems
• Working on requalification programs to
repurpose products that have reached their
end-of-life.
SUSTAINABILITY REPORTING | OUR CONTRIBUTION THROUGH OUR SOLUTIONSSUSTAINABILITY REPORTING | OUR CONTRIBUTION THROUGH OUR SOLUTIONS
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Minimizing our
environmental footprint
Why this topic is material for Hexagon Purus
Our products and solutions are key technology enablers in the transition
towards zero-emission mobility. Hexagon Purus’ cylinders, hydrogen
storage and distribution systems, and fuel cell and battery electric
systems, are all contributing to lower in-use emissions for our customers.
We are proud of our contribution in addressing hard-to-abate industries
and contributing towards a more sustainable fuel and energy mix in the
mobility sector.
We must also acknowledge our own environmen-
tal footprint. Our products require materials with
substantial embedded emissions, environmental
impacts on air, water, or soil, or with limited or
costly applications in a circular economy. We all
have a role to play in understanding and mini-
mizing impacts by reducing material waste and
encouraging circularity, and at the same time
ensuring that we are minimizing our own carbon
footprint to accelerate the transition to net zero.
Driving decarbonization across infrastructure and
mobility applications for the benefit of our planet
is our North Star. Our employees are inspired by
our purpose to be a driving force for a sustaina-
ble planet. We feel privileged to build solutions
for a cleaner tomorrow.
SUSTAINABILITY REPORTING | MINIMIZING OUR ENVIRONMENTAL FOOTPRINTSUSTAINABILITY REPORTING | MINIMIZING OUR ENVIRONMENTAL FOOTPRINT
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
How we work to minimize our environmental footprint
Minimizing our environmental footprint will be increasingly important as we continue to grow our business.
Balancing the necessary growth to contributing to the zero-emission mobility economy while working to reduce our
carbon footprint and waste is a conundrum we are working to solve.
Establishing a baseline of the current state
of our impact is integral to setting clear
environmental targets and objectives. 2023 is
the first year where Hexagon Purus operates as
a stand-alone entity, and while we have some
data to understand our historical environmental
footprint, we will improve our data collection and
analyzing capabilities to fully understand the
impact we have.
Material waste and circularity
We are committed to protecting the environment
by operating in an environmentally responsible
manner, promoting zero waste and zero impact.
Our approach is described in our EHS policy.
Management is responsible for driving envi-
ronmental consciousness, focusing on efficient
design, operational excellence, and procurement
choices to reduce waste and energy consump-
tion, thus also reducing emissions.
We engage with our employees to foster environ-
mental awareness and encourage our employees
to participate and suggest improvements in our
operations and our surroundings.
Our products and solutions generate waste both
upstream and downstream in our value chain.
Materials end up as scrap during production,
distribution, and testing. Our production port-
folio produces a relatively diverse waste mix.
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 are committed to conserving
natural resources and reducing our environ-
mental footprint by applying principles from the
waste hierarchy.
9
We prioritize preventing and
minimizing use of energy and materials where
possible. This is beneficial for the environment
and has a positive impact on our bottom line.
Our manufacturing sites are implementing
recycling programs to minimize waste to landfill
and are in close dialogue with waste handling
companies to ensure we follow and comply
with environmental regulations and make
improvements. We also have a particular focus on
hazardous waste, which requires specialized con-
tractors for safe disposal. We adhere to any local
or national environmental laws and regulations
and expect that our specialized waste handling
contractors do the same.
Greenhouse gas emissions
2023 is the first year Hexagon Purus will report
GHG emissions on a stand-alone basis. We are
building on Hexagon Composites’ legacy from
previous years and have made efforts to further
align our reporting with the GHG Protocol. We
are reporting our GHG emissions in accordance
with the GHG Protocol, focusing on direct (scope
1) GHG emissions, energy indirect (scope 2) GHG
emissions, and other indirect (scope 3) GHG emis-
sions. Scope 3 emissions are emissions generated
in the upstream and downstream part of the value
chain, and this is also where the largest portion of
our sustainability footprint is generated.
9
European Commission, “Waste Framework Directive,” n.d., https://environment.ec.europa.eu/topics/waste-and-recycling/waste-framework-directive_en.
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We are still working to improve data collection
and calculation methodologies to measure our
GHG emissions as accurately as possible. This is a
prerequisite to establish a baseline and set targets
for GHG emission reductions going forward.
Ultimately our ambition is to align our GHG emis-
sion pathway with the “well below 2C” scenario,
following the goals in the 2015 Paris Agreement.
Considering the updated projections from the
IPCC Sixth Assessment Report,
10
this is a realistic
ambition based on our business plan.
To fulfil this ambition, we need to understand the
sustainability footprint of our products and solu-
tions. We are using life cycle assessments
11
(LCAs)
to analyze the impact our products and solutions
with a variety of environmental indicators, includ-
ing global warming potential measured in CO
2
equivalents (CO
2
e), throughout our products’
lifetimes. The LCA results will help us to work
strategically with our suppliers, increase our own
production efficiency, and provide useful infor-
mation to our customers about the sustainability
impacts of the products they are purchasing.
We are continuously working on optimizing our
supply chain, design and engineering, materi-
als and processes to lower our environmental
footprint. When our products and solutions are
ready to move from research levels to production,
we collaborate with our strategic suppliers to
understand the potential and actual GHG emis-
sions from sourcing of purchased goods and raw
materials. These steps contribute to a significant
share of our upstream GHG emissions and will
indicate to us where we can reduce emissions
further.
Direct emissions originate from our own facilities,
where we transform purchased goods and raw
materials to our own products and solutions.
These processes require energy in the form of
purchased electricity and/or stationary combus-
tion and are associated with indirect (scope 2)
and direct (scope 1) energy emissions respec-
tively. To fully understand our potential to reduce
consumption of energy, and thus also GHG
LIFE CYCLE ASSESSMENT
Life cycle assessment is a methodology
for measuring, attributing, and
assessing the environmental impacts
of a product, process, or service
over the course of its life cycle
stages. (ISO 14040:2006)
10
Intergovernmental Panel On Climate Change, Climate Change 2021 – The Physical Science Basis: Working Group I
Contribution to the Sixth Assessment Report of the Intergovernmental Panel on Climate Change, 1
st
ed. (Cambridge
University Press, 2023), https://doi.org/10.1017/9781009157896.
11
International Organization for Standardization, “ISO 14040 Environmental Management - Life Cycle Assessment
- Principles and Framework,” 2006.
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emissions, we are working to improve our current
data collection processes and to increase the
percentage of renewable sources in our energy
consumption at our sites. We are also working to
optimize our processes from a cost perspective,
which has positive sustainability impacts. A con-
crete example is optimizing resource efficiency
for our carbon fiber, which will enable us to use
more of the purchased carbon fiber and mini-
mize waste and emissions originating from waste
handling.
When our products leave the factory gates and
go to our customers, all subsequent emissions
originate from the downstream part of our value
chain. This is also where our solutions contribute
to zero-tailpipe emissions, thus reducing in-use
scope 3 GHG emissions. We do, however, have
a potential upside on the end-of-life of our
cylinders. We are currently running several R&D
projects aimed at finding ways to repurpose or
increase the recyclability of our products and will
keep our current and future customers updated
on relevant findings.
Understanding the sustainability footprint of
our products and solutions from a life-cycle
perspective is integral to making the right
strategic decisions, and will influence our R&D
efforts, our procurement strategy, and interac-
tions with current and future customers going
forward. Currently the focus is reducing upstream
greenhouse gas emissions from our products,
emphasizing the importance of investing in R&D
and collaborating with our suppliers.
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Our results for 2023
Material waste and circularity
In 2023, we sourced 2 005 metric tons of key
materials to produce our products, of which
0% were made from renewable materials. This
year our focus has been to increase operational
excellence and efficiency, with an indirect focus
on waste reduction and waste management.
We have not initiated new waste programs in
2023 for any of our sites, but rather worked to
improve on our current waste management and
accompanying data. Ensuring that waste figures
are correct and complete is essential to establish
baselines and set targets for waste reduction over
the coming years.
An important part of waste management is to
ensure that operational controls are in place to
limit or avoid waste in the first place. We focus
on our inventory management to ensure that we
are not overstocking supplies. Inventory man-
agement contributes to reducing the amount of
excess raw materials in stock and the number of
hazardous materials, thus reducing the amount
of waste generated. This is an example where
inventory management, cost exercises, and
sustainability impact go hand in hand. We are
also working on manufacturing control plans for
all our sites to reduce the amount of scrap that
could end up in landfills.
Process improvements also contribute to waste
reduction. In one of our cylinder production sites,
we expect to bring down the resin waste and
overall resin consumption by transitioning from
manual resin mixing to an automated mixing
system. Through better process design with
advanced equipment, not only is the material
efficiency elevated but it also limits employees’
exposure to chemicals during operation.
Prioritizing recycling is also an important aspect
when handling production scraps and waste,
especially for composite materials whose recy-
clability is typically more challenging. In North
America we have been working with a qualified
specialized company to recycle scrapped com-
posites materials including carbon fiber. In
Europe our scrap cylinders are sent to a recycler
where the composite materials are transformed
as input materials for other products. We con-
tinue to seek better solutions for treating and
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recycling production scraps and to explore ways to
increase the circularity of our materials.
We are exploring waste from an operational per-
spective as a part of our LCA initiatives, where we can
understand the environmental effects of production
waste. We piloted our first LCA on one of our cylin-
ders in 2023. Our LCAs will also explore second-life
and circularity measures for our products. After our
cylinders exceed their average lifetime, we aim to
retest, document remaining useful life, quality, and
durability, so that they either could be used for their
originally intended pressure levels, or used for differ-
ent applications requiring lower pressure levels. All
these efforts can contribute to extending the original
lifetime.We are exploring the same opportunities for
our batteries.
For reporting purposes, we have changed our waste
composition reporting to harmonize across all sites
and geographies, in addition to highlighting certain
materials where we produce substantial amounts of
waste. This should give a better overview of our total
levels of hazardous, non-hazardous and general
waste and how it is treated. We expect the amount
of waste to increase, primarily due to the anticipated
higher production levels. While we should always
have increased capacity and production levels in mind
when we are looking at waste figures, we will also do
our best to reduce our absolute waste figures.
WASTE BY DISPOSAL METHOD
13
Metric tons
WASTE MANAGEMENT
WASTE TYPE
Metric tons
BREAKDOWN OF WASTETORECYCLE
Metric tons
7
Carbon fiber
recycled
22
Plastic
recycled
539
Metal
recycled
194
Other mixed
waste recycled
761
recycled
35
9
7
27
2023
Non-hazardous waste
12
833
Hazardous waste 5
Total 838
12
Non-hazardous waste includes waste from both
industrial operations and employee activities
13
Waste data is provided by our local EHS team members.
Waste data of Kassel included operational activities from
July to December 2023 due to site relocation.
Numbers are round up to the nearest integer.
Landfill
Incineration
Recycle
Disposal method unknown
Other disposal method by
professional waste contractor
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Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Greenhouse gas emissions
Total GHG emissions from our activities are
29 605 tCO
2
e in 2023. This comprises scope 1
emissions, location-based scope 2 emissions,
and scope 3 emissions (See Appendix III (see
page 172) for methodology).
Although the categories included in this
year’s GHG accounting are limited while we
are improving our data consolidation and
calculations, the figures show that our GHG
emissions are predominantly scope 3 (94%). This
is expected to still hold when we complete a
full GHG accounting in 2024. The key materials
we source, such as carbon fiber, metals, and
batteries, are relatively carbon intensive. As we
anticipate higher production activity across all our
business areas, any increase in demand for these
materials will largely affect our absolute scope
3 emissions. This substantiates the importance
of working closely with suppliers to reduce our
upstream GHG emissions. We will therefore also
evaluate and assess our scope 3 emissions using
physical intensity figures, aiming to reduce scope
3 emissions per unit sold. In addition to the input
materials, the capital goods also have a large
share of our scope 3 emissions in 2023 as a result
of the building new facilities and expansion of
production capacity.
Scope 1 and 2 represent about 6% of our
total GHG emissions in 2023. All our new and
upgraded facilities in the US, Canada, Germany,
and China are built with energy efficiency as a
priority for the design and planning of the sites.
This should contribute to a reduction of scope
1 and 2 emissions per unit produced and to an
absolute reduction of scope 1 and 2 emissions,
even though the latter is largely dependent on
customer demand and the energy mix in all our
locations.
Our newly opened manufacturing facilities
in Kassel and Weeze are equipped with solar
panels. We are investigating installing solar
panels also at our site in Kelowna. For these two
sites in Germany, we purchase guarantees of
origin (GOs). GOs are instruments issued by
energy providers that can be used to reduce our
market-based GHG emissions. Our GOs are
purchased from Energie Steiermark Business
GmbH.
14
In 2023 we have piloted our first LCA to under-
stand the environmental impact of one of our
Type 4 cylinders. We will continue to build our
LCA portfolio for our remaining products and
solutions to establish the baseline environmental
impact of our products. These baselines will
enable us to build an environmental product
strategy by working together with our R&D teams,
our suppliers, our production workers, and our
customers, aiming to reduce the GHG emission
intensity, among other sustainability initiatives.
ENERGY CONSUMPTION
15
(GJ) 2023
Non-renewable fuel consumption 6 491
Renewable fuel consumption -
Electricity purchased for consumption 19 348
Heating purchased for consumption 142
Cooling purchased for consumption -
Steam purchased for consumption -
Electricity sold 513
Heating sold -
Cooling sold -
Steam sold -
Total energy consumption within the organization 25 468
GREENHOUSE GAS EMISSIONS
Scope (tCO
2
e) 2023
Scope 1 (direct emissions) 207
Scope 2 (indirect emissions from electricity – location based) 1 640
Scope 2 (market-based) 379
Scope 3 27 758
Purchased Goods and Services (Category 1)
16
14 559
Capital Goods (Category 2) 11 982
Fuel- and Energy-related Activities (Category 3) 560
Waste generated in Operations (Category 5) 51
Business Travel (Category 6) 606
Total GHG Emissions
17
29 605
14
AIB code: 35XESTEIEC
15
Energy related to electricity-based cooling consumption is included in electricity use in own operations. 1 kWh = 0 0036 GJ.
Conversion sources can be listed based on relevance. Energy used in Kassel cover the period from July to December 2023
16
Only the key purchased input materials are accounted for.
17
Scope 2 market-based not included in total.
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Management Evaluation
Clever and innovative ideas for climate change
mitigation are essential to address one of the
most complex problems of our time. We are
proud to deliver products and solutions targeting
nearly a quarter of of global GHG emissions. We
are also responsible for looking at our own envi-
ronmental footprint.
Our scope 3 GHG emissions primarily origi-
nate from purchased goods and services and
capital goods. Higher demand for our products
and solutions implies higher emissions from
purchased goods and services. Our products,
especially Type 4 cylinders, require energy
intensive input materials. We therefore expect
absolute scope 3 figures to increase going
forward. We are, however, working closely with
our suppliers to reduce our GHG emissions per
unit.
We are aware that our upgraded or newly con-
structed five facilities in 2023 add significantly
to the emissions originating from capital goods.
Capital goods fluctuate naturally, and we expect
our 2024 figures to be significantly lower. We are
proud that we have installed renewable energy
sources at many of our facilities, and we are
looking forward to seeing the effects in our scope
2 GHG emissions.
We also acknowledge that our current scope 3
GHG accounting is not complete. Going forward
we will systematically track all our emissions to
understand how we can build a credible GHG
emission pathway with the “well below 2C”
scenario in line with the Paris Agreement, and
what decarbonization levers we can pull.
Through LCA, we will gain a comprehensive view
of our environmental impacts, which will inform
our effort and the strategies of our environmental
initiatives to avoid potential problem shifting.
Another key aspect of minimizing our own
environmental footprint is to optimize material
efficiency and waste management. We know
that we can do more to improve the current
waste levels and circularity measures and that
reducing waste from operations will save us costs,
providing additional incentives to initiate waste
programs.
GOING FORWARD
We have defined the following initiatives as
important for 2024:
• Establishing a complete GHG inventory to
set a baseline and starting to build a GHG
emission reduction pathway for the short-,
medium-, and long-term
• Initiating waste reduction programs and
recycling activities at all sites
• Initiating environmental management
systems to track and follow up on important
environmental KPIs.
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Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Product safety
and compliance
Why this topic is material for Hexagon Purus
The quality and safety of our products and solutions represent our license
to operate and are essential to our business model and future growth.
Our customers trust our ability to provide safe and reliable products. All
our products and solutions are therefore tested according to appropriate
internal, local, national, industry, and international requirements and
associated procedures prior to being shipped to the customer, built into
fuel systems, or installed on vehicles at our own facilities.
We acknowledge the inherent risk factors
throughout the entire value chain when oper-
ating with high-pressure cylinders, fuel storage
systems, and distribution systems for hydrogen,
in addition to battery electric vehicle systems. We
must ensure that when our products leave our
factory gates, we have done everything we can to
ensure the safety of all stakeholders in the down-
stream part of our value chain, from customers to
local communities. This is why product safety and
compliance are cornerstones of our success.
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Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
How we work with product safety and compliance
Our product portfolio can generally be split into two: Hydrogen Mobility
& Infrastructure, and Battery Systems and Vehicle Integration. 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.
The safety of people operating our products, such
as drivers, passengers, and potential bystanders
is of the utmost importance for both us and our
customers. We must therefore ensure the safety
of our products in the use stage. It is therefore
crucial that everyone involved with our products,
from raw material sourcing to end-of-life treat-
ment, understands the specific risks associated
with our products and solutions.
Our integrated business model and cross-func-
tional teams enable us to share suggested
improvements and detailed knowledge across
our business units to improve performance
and safety for Hexagon Purus as a whole. Our
people take pride in the safety of our products
and possess specialized technical knowledge to
identify and address safety factors in the design,
engineering, manufacturing, and customer
applications. All Hexagon Purus employees are
responsible for doing their part to ensure the
safety and quality of our products.
Safety considerations are an integral part of
our product development process, and they are
systematically addressed at every stage, particu-
larly during design review procedures. We adhere
to the most rigorous automotive methodologies,
utilizing tools like Advanced Product Quality
Planning (APQP) and Design Failure Modes and
Effects Analysis (DFMEA). Each design or design
improvement undergoes peer review, allowing
for multiple iterations and accommodating
multi-disciplinary input. To continuously assess
potential and existing concerns, we hold routine
product segment reviews and safety-focused
roundtable sessions. Every identified issue is
tracked, along with its associated corrective
measures. We closely monitor all warranty claims
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Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
to gather valuable user feedback regarding
product performance.
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.
Our commitment goes beyond meeting the
regulatory requirements; our design and devel-
opment processes encompass the validation of
customer and industry specifications, along with
rigorous, carefully controlled testing that pushes
our products to their limits. We even go above
and beyond regulatory standards by conducting
tests such as vehicle crash testing, rollover, and
durability testing, exceeding 1 million miles. Once
the validation testing is successfully completed,
our products and solutions receive the necessary
certifications for operation.
We also offer training courses for our customers
and end-users to ensure the safe handling of our
products. Proper operation, regular maintenance,
diagnostics, and repair procedures are all critical
elements to ensure that our products are treated
properly to deliver the safety and quality we
promise when our solutions leave our factory gates.
We conduct assessments on products that have
exceeded their initial expected lifespan to gain
insights into aging effects and the remaining
performance capabilities. This valuable informa-
tion can be used for the continuous development
of our products' safety and quality. We inherit a
legacy of more than 40 years of experience and
active involvement in developing safety codes
and standards, especially within the commercial
pressure cylinder industry. Our contributions
extend to leadership roles within standards com-
mittees and active participation in evaluations
and reviews, further emphasizing our commit-
ment to safety and quality in this field.
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Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Our results for 2023
We continue our rigorous testing regime for all our existing and new products, and value the importance these
testing measures have on our reputation as a reliable and safe supplier of hydrogen infrastructure and zero-
emissions mobility solutions.
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
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. We comply with UN ECE
Regulation No.100 which addresses the safety
requirements specific to electric powertrain of
road vehicles including rechargeable battery
systems. Suppliers that are critical to the part
functionality are onboarded through a produc-
tion part approval process (PPAP). Through this
process, we verify a supplier’s ability to reliably
and repeatedly produce a part or components
for mass production. Parts are always inspected
before, during and after a production run.
Our facility in Kelowna received ISO 9001 certifi-
cation in 2023. We are proud that we received a
flawless result in the audit, as the auditor identified
no major non-conformances. They acknowledged
several best practices (risk management, strategic
planning, maintenance, departmental collabora-
tion etc.), demonstrating that our commitment to
quality management goes well beyond the scope
of the certification itself.
On July 19 2023, a fire at a hydrogen refueling
station in the city of Bakersfield in California was
reported where a New Flyer bus operated by
Golden Empire Transit District was refueling. Our
hydrogen cylinders were on board the bus. The
investigations by appropriate authorities found
no evidence of damage or rupture to our hydro-
gen cylinders. No one was reported injured, and
the damage was limited to the single hydrogen
bus and the dispenser of the refueling unit.
Even though our cylinders were intact, and the
cause of the fire originated from other sources,
the incident indicates how important it is for us
to work with safety proactively. Such a proactive
approach will also contribute to any potential
or actual damage limitations in case there is an
event in the future where the safety and quality
of our products are questioned.
PERCENTAGE OF SIGNIFICANT PRODUCT AND
SOLUTIONS WHERE SAFETY IS ASSESSED
Product categories 2023
Hydrogen high-pressure Type 4 cylinder Yes
Hydrogen fuel storage system Yes
Hydrogen distribution system Yes
Battery electric and fuel cell electric
system Yes
Full vehicle integration Yes
% of products and solutions where
safety impacts are assessed 100%
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Management Evaluation
We will never compromise 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 cus-
tomers with the right set of tools to operate our
products safely and in the way they are intended.
The number of certified products and solutions
has increased compared to last year. This is a
development we are satisfied with. Third-party
opinions are essential to communicate the safety
and quality of our products to customers and
other stakeholders. Our ambition is to increase
any such certifications going forward.
Our product portfolio consists of technology
with high requirements for safety and quality.
We emphasize the responsibility and importance
we put on all our employees to ensure that the
risk is kept as low as possible. The incident at
the hydrogen refueling station in Bakersfield in
California is an important reminder for us about
this responsibility. We are first and foremost
happy that no one was injured and that damage
to the surroundings was limited. The incident
also demonstrates that our cylinders are robust
and can withstand similar incidents. Our rigorous
and extreme testing environments contribute to
ensuring that our battery and hydrogen technol-
ogies are robust and reliable.
GOING FORWARD
We have defined the following initiatives as
important for 2024:
• Continuing external/third party certifications
for our products and solutions
• Developing a training strategy for our
customers
• Further increasing research and develop-
ment initiatives related to our hydrogen and
battery solutions
• Following closely the changes and modifi-
cations within codes and regulations – to
continue being ahead and compliant with all
necessary codes and regulations in respec-
tive segments
• Continuing to improve our products and
processes to minimize variations and
increasing robustness within existing codes
and standards
SUSTAINABILITY REPORTING | PRODUCT SAFETY AND COMPLIANCESUSTAINABILITY REPORTING | PRODUCT SAFETY AND COMPLIANCE
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Governance
Why this topic is material for Hexagon Purus
Professional business conduct and solid governance structures are
fundamental to our license to operate. Hexagon Purus originates from a
proud industrial history 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.
Business ethics and anti-corruption and responsible procurement are
therefore material topics for Hexagon Purus. Managing our impacts across
these topics requires good corporate governance.
How we work with governance
Operating as a stand-alone entity since June
2023, we continue to be a company where good
corporate governance is at the core of our work.
We communicate our commitment to
governance through our purpose and values,
combined with responsible business conduct
and company policies, guiding us in how to act
in accordance with our governing principles.
We trust all our internal stakeholders to act
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Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
with integrity and in compliance with laws and
regulations, including our internal policies, and
strongly encourage all external stakeholders to
do the same. 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 few Hexagon Group policies post decon-
solidation, where it is applicable. Our Code
of Conduct, which is the overarching guiding
governance document, helps us navigate situ-
ations and dilemmas that may arise during our
business operations. The Code of Conduct sets
clear guidelines and principles on behavior in
important governance areas, including human
and labor rights, anti-corruption and bribery,
sanctions and export controls, data privacy,
among others.
Business growth and sustainable value creation
relies on collaborative and transparent rela-
tionships with our business partners, suppliers,
and other third parties. We continuously work
to ensure that all our third parties share our
commitment to responsible business. Our
requirements and expectations concerning busi-
ness partners, suppliers, and other third parties
can be found in our Supplier and Business
Partner Code of Conduct.
SUSTAINABILITY REPORTING | GOVERNANCESUSTAINABILITY REPORTING | GOVERNANCE
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Business ethics and anti-corruption
Conducting business in a responsible manner
is an inherent part of Hexagon Purus’ organiza-
tional culture. Our values are Integrity and Drive,
where the former signals our desire to operate
with the highest ethical standards.
At Hexagon Purus we have no tolerance for
corruption, and we work to proactively and con-
tinuously improve our procedures to prevent any
form of corruption. We conduct corruption risk
assessments at regional levels and we also assess
corruption from a contract-specific level.
Our Anti-Corruption Policy supplements our
existing Code of Conduct. The anti-corruption
policy can be found on our website.
Sanctions and export controls
Economic sanctions and trade controls impose
restrictions on dealings involving certain coun-
tries and parties, as well as on import and export
of certain goods and technology. Hexagon
Purus is committed to complying with applica-
ble sanctions laws at all times. We also seek to
ensure that our exports are in compliance with
applicable export control regulations. Given the
geopolitical landscape, Hexagon Purus is mindful
of the inherent risk of becoming unintentionally
involved in circumvention of applicable sanctions
and export control laws. Risk based due diligence
of counterparties and documentation of end use
of our products is therefore paramount.
Responsible procurement
Acknowledging integrity and drive in our entire
value chain is essential to the impact we have in
the transition to a zero-emission mobility economy.
We comply with human and labor rights in our own
operations and encourage our business partners
and suppliers to do the same. We are aware that
certain materials we use in our products can be
sourced from high-risk countries, implying that
our procurement process might have an adverse
impact on social, environmental, or governance
aspects. We engage in these questions with a
HUMAN RIGHTS AND DECENT WORKING CONDITIONS
Human and labor rights are an integral part of business ethics and how we want to operate.
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. Purus’
Human Rights and Decent Working Conditions Policy is aligned with all internationally
recognized standards, covenants, and conventions, aiming to prevent, address, and remedy
any human rights abuses committed in our operations. This Policy can be found on our
website.
As part of managing our supply chain impacts from responsible procurement, we are
committed to actively conducting human rights due diligence in accordance with the
Norwegian Transparency Act, following the OECD Guidelines for Multinational Enterprises
and OCED Due Diligence Guidance for Responsible Business Conduct. Our Transparency
Act Statement and our process for due diligence can be found on our website. In 2023 we
have solely assessed human rights but will expand our scope in line with the upcoming
implementation of the Corporate Sustainability Due Diligence Directive (CS3D).
SUSTAINABILITY REPORTING | GOVERNANCESUSTAINABILITY REPORTING | GOVERNANCE
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
collaborative mindset, but with a determined
stance.
Our business relationships are governed by our
Supplier and Business Partner Code of Conduct,
which includes specific provisions related to
human rights and working conditions, anti-
bribery and corruption, sanctions and export
control and other topics pertaining to compliance
and sustainability. The Supplier and Business
Code of Conduct also encourages and requires
actions on environmental and responsible
business objectives. It has been, and will continue
to be, explicitly included in contractual terms and
conditions with our business partners.
We aim to monitor our suppliers and business
partners and their performance against the inter-
national best practices through direct dialogues,
desktop research as well as supplier audits when
deemed required. While the focus traditionally
has been on quality and quality management,
we also reserve the right to require suppliers to
provide evidence of compliance with sustaina-
bility objectives as described in the Supplier and
Business Partner Code of Conduct.
WHISTLEBLOWING
Whistleblowing is an important method for uncovering illegal conditions and unwanted
business culture within Hexagon Purus. Whistleblowing allows Hexagon Purus to rectify
problems and prevent the problems from growing. Internal and external stakeholders are
able to voice their concerns about Hexagon Purus, our business partners, and suppliers.
We constantly work to maintain a transparent business climate, embracing open dialogue
and encouraging our stakeholders to speak up without fear of retaliation. While we always
encourage our stakeholders to escalate to the closest point of contact and to speak up,
we also have a whistleblowing channel managed by an independent third-party where
anyone may report concerns, misconduct or suspected misconduct, or potential and
factual violation of any applicable law or our policies
SUSTAINABILITY REPORTING | GOVERNANCESUSTAINABILITY REPORTING | GOVERNANCE
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Our results for 2023
Business ethics and anti-corruption
This year we have developed policies related to
the DE&I agenda, anti-corruption, human rights
and working conditions, our own Supplier and
Business Partner Code of Conduct, whistle-
blowing, social media, and information sharing,
acknowledging that we have operations across
three continents. All policies have a sponsor from
the Executive Team and is made available to all
employees.
We have also been developing our enterprise risk
management system to further understand and
monitor how financial, operational, governance,
macroeconomic, and sustainability risks and
opportunities can influence our company. Our
enterprise risk management system also entails
risk areas addressed by our company policies
such as information sharing and anti-corruption.
We have established a “whistleblowing channel”
through an independent third party. While
we encourage our stakeholders to speak up
and voice their opinion without using the
whistleblowing channel, stakeholders can report
violations or potential violation of any applicable
law or Hexagon Purus’s policies and/or proce-
dures through the whistleblowing channel.”
More information about business ethics, risk,
and risk management for 2023 can be found
in our chapter about risk management (see
page 31) and in the Board of Directors’ report
(see page 26).
Responsible procurement
In 2023, our key focus has been to establish
processes and systems to further understand
how human and labor rights are addressed in our
own operations, among our business partners,
and our suppliers. We developed our own policy
on Human Rights and Working Conditions, to
build awareness about these topics among our
employees and ensure that our employees and
stakeholders understand our commitment.
This year we also prepared to conduct our first
stand-alone human rights risk assessment in
accordance with the Norwegian Transparency Act,
enabling us to understand our impact on human
rights in our own operations and in our supply
chain with a methodological and structured
approach.
Our battery systems and vehicle integration
business in North America has started a supplier
assessment program integrating environmental
and social criteria from supplier qualification to
evaluation and selection stage. This sets out good
practice and the implementation experiences
are shared with the remaining business areas
and sites, while we initiate the first steps of a
global sustainable supply chain program, where
sustainability assessments will not be done
retrospectively, but proactively together with our
suppliers and business partners.
Reported concerns
We are consistently striving to enhance our
work environment and promote collaboration.
As people come together to work, conflicts
naturally arise. Our goal is to cultivate a healthy
culture where feedback is exchanged openly,
and disagreements are resolved constructively in
the workplace. In 2023, the People and Culture
departments at all sites have been involved in
employee relations matters related to conflicts or
concerns and in most cases, it has been possible
to find good solutions. We have handled 6 whis-
tle-blowing matters, all pertaining to the working
environment. All cases have been investigated;
action is taken where appropriate.
NUMBER OF NEW SUPPLIERS THAT WERE SCREENED USING SOCIAL AND ENVIRONMENTAL CRITERIA
Topic 2023
Number of new suppliers screened using social and environmental criteria 50
SUSTAINABILITY REPORTING | GOVERNANCESUSTAINABILITY REPORTING | GOVERNANCE
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Management Evaluation
We have made good progress during the last six
months of 2023 after the deconsolidation. We will
continue to revise company policies and further
improve roll-out and implementation.
Developing our working environment and culture
will continue to be a top priority, we want to cul-
tivate a healthy workplace culture characterized
by open feedback and constructive resolution of
disagreements. The Great Place to Work survey
results show that we have made good progress
in many ways. We also acknowledge that there
is room for improvement, and we value the
openness and honesty demonstrated by our
employees in how we can improve.
We acknowledge that we have a long way to go to
ensure that social and environmental criteria are
used as part of the supplier screening process.
Supplier collaboration and screening is one area
we must prioritize going forward, and we need to
make sure supppliers’ environmental and social
performance and human rights risks are moni-
tored and addressed where needed. Establishing
the foundations of a sustainable supply chain
management program will address these topics.
GOING FORWARD
We have defined the following initiatives as
important for 2024:
• Completing and rolling out Hexagon Purus
specific policies
• Human Rights Due Diligence conducted by
external advisor
• Implementing a global Learning
Management System to strengthen the
distribution and implementation of new and
updated policies
• Developing a Hexagon Purus specific Code
of Conduct
• Continuing to develop our sustainable supply
chain program, including sustainability criteria
in the screening and monitoring process
SUSTAINABILITY REPORTING | GOVERNANCESUSTAINABILITY REPORTING | GOVERNANCE
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Financial statements Group
Income statement Group
87
Statement of comprehensive income
88
Financial position of the Group
89
Cash flow statement Group
91
Statement of changes in equity
93
Notes
94
Note 1 Corporate information
94
Note 2 Basis of preparation and other significant
accounting policies
95
Note 3 Estimation uncertainty and significant judgments
103
Note 4 Operating segments
104
Note 5 Revenue from contracts with customers
105
Note 6 Payroll costs and number of employees
106
Note 7 Property, plant and equipment
107
Note 8 Intangible assets
108
Note 9 Leases
109
Note 10 Investments in associates
111
Note 11 Non-current financial assets and other non-current
assets
114
Note 12 Inventories
114
Note 13 Trade receivables
115
Note 14 Other current assets
116
Note 15 Bank deposits, cash and cash equivalents
116
Note 16 Net financial items
116
Note 17 Financial assets and financial liabilities
117
Note 18 Financial risk management
119
Note 19 Short term provisions
122
Note 20 Pensions
123
Note 21 Share capital and share premium
124
Note 22 Share-based payment
125
Note 23 Earnings per share
126
Note 24 Interest-bearing liabilities
128
Note 25 Short-term interest-bearing loans
129
Note 26 Other current liabilities
129
Note 27 Related parties disclosure
130
Note 28 Income tax
132
Note 29 Government grants
134
Note 30 Purchasing commitments
135
Note 31 Events after the balance sheet date
135
Financial statements Parent Company
Income statement – Parent Company
136
Balance sheet – Parent Company
137
Cash flow statement – Parent Company
139
Notes – Parent Company
140
Note 1 Accounting principles
140
Note 2 Intra-group transactions and balances
141
Note 3 Payroll, number of employees, remuneration, loans to employees etc.
142
Note 4 Share-based payment
144
Note 5 Pensions and benefit obligations
145
Note 6 Net financial items
145
Note 7 Tax
146
Note 8 Shares in subsidiaries and associates
146
Note 9 Non-current loans
147
Note 10 Bank deposits
147
Note 11 Share capital and shareholder information
148
Note 12 Financial market risk
149
Note 13 Events after the balance sheet date
149
Note 14 Equity
150
Auditor’s report
151
Financial statements
FINANCIAL STATEMENTS FINANCIAL STATEMENTS FINANCIAL STATEMENTS
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Income statement Group
1 JANUARY
–
31 DECEMBER
(NOK 1 000) Note 2023 | 2022 | ||
Revenue from contracts with customers | 4, 5 | ||
| Rental income | 5 | ||
| Other operating revenue | 4, 5 | ||
Total revenue | |||
| Cost of materials | 12 | ||
| Payroll and social security expenses | 6, 20, 22, 27 | ||
| Other operating expenses | 9, 13, 19 | ||
Total operating expenses before depreciation | |||
| Operating profit before depreciation (EBITDA) | 4 | ( | ( |
| Depreciation, amortization and impairment | 7, 8, 9 | ||
Operating profit (EBIT) | ( | ( | |
| Profit/loss from investments in associates | 10 | ( | |
| Finance income | 16, 17 | ||
| Finance costs | 16, 24 | ||
Profit/loss before tax | ( | ( | |
| Tax | 28 | ( | ( |
Profit/loss after tax | ( | ( |
(NOK 1 000) | Note | 2023 | 2022 |
| Attributable to: | |||
| Equity holders of the parent | 21, 23 | ( | ( |
Non-Controlling interests | ( | ||
| Earnings per share | |||
| Ordinary (NOK) | 23 | ( | ( |
| Diluted (NOK) | 23 | ( | ( |
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Statement of comprehensive income
(NOK 1 000) | Note | 2023 | 2022 |
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 | |||
Net total of items that will be reclassified through profit and loss in subsequent periods | |||
Total comprehensive income, net of tax | ( | ( | |
| Attributable to: | |||
Equity holders of the parent | ( | ( | |
Non-controlling interests | ( |
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Financial position of the Group
(NOK 1 000) | Note | 31 Dec 2023 | 31 Dec 2022 |
| ASSETS | |||
| Property, plant and equipment | 7 | ||
| Right-of-use assets | 9 | ||
| Intangible assets | 8 | ||
| Investment in associates | 10 | ||
| Non-current financial assets | 11, 17 | ||
| Non current assets | 11 | ||
Total non-current assets | |||
| Inventories | 12 | ||
| Trade receivables | 13, 17 | ||
| Contract assets | 5, 13, 17 | ||
| Other current assets | 14 | ||
| Cash and short-term deposits | 15, 17 | ||
Total current assets | |||
Total assets |
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
(NOK 1 000) | Note | 31 Dec 2023 | 31 Dec 2022 |
| EQUITY AND LIABILITIES | |||
| Issued capital | 21 | ||
| Share premium | 21 | ||
Other equity | |||
Equity attributable to holders of the parent | |||
Non-controlling interests | |||
Total equity | |||
Interest-bearing loans and borrowings | 17, 18, 24 | ||
| Lease liabilities | 9, 24 | ||
| Other non-current financial liabilities | 17 | ||
| Net employee defined benefit liabilities | 20 | ||
| Deferred tax liabilities | 28 | ||
Total non-current liabilities | |||
| Trade and other payables | 17 | ||
| Contract liabilities | 5 | ||
| Interest-bearing loans and borrowings | 17, 18, 24, 25 | ||
| Lease liabilities, short term | 9, 24, 25 | ||
| Income tax payable | 28 | ||
| Other current financial liabilities | 17 | ||
| Other current liabilities | 26 | ||
| Provisions | 19 | ||
Total current liabilities | |||
Total liabilities | |||
Total equity and liabilities |
Oslo, Norway, 18 March 2024
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
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Cash flow statement Group
(NOK 1 000) | Note | 2023 | 2022 |
| 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 | 9 | ||
| Amortization and impairment of intangible assets | 8 | ||
| Share-based payment expense | 22 | ||
| Share of net profit of associates | 10 | ( | |
| Movements in pensions | 20 | ( | |
| Working capital adjustments | |||
| Change in trade receivables and contract assets | 13 | ( | ( |
| Change in inventories | 12 | ( | ( |
| Change in trade and other payables, contract liabilities | 26 | ( | |
| Change in other accrual accounting entries | 11, 25 | ( | |
| Other adjustments to reconcile to operating cash flow | |||
| Interest received | 16 | ( | ( |
| Interest paid | 16 | ||
| Income tax paid (-refunded) for the period | 28 | ( | ( |
Net cash flow from operating activities | ( | ( |
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
(NOK 1 000) | Note | 2023 | 2022 |
| 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 | 10 | ( | ( |
| Interest received | 16 | ||
Loans to associated companies | ( | ( | |
Net cash flow used in investing activities | ( | ( | |
| CASH FLOW FROM FINANCING ACTIVITIES | |||
| Proceeds from loans | 24 | ||
| Repayment of loans | 24 | ( | ( |
| Interest payments | 16 | ( | ( |
| Repayment of principal portion of lease liabilities | 9, 24 | ( | ( |
| Interest on lease liabilities | 9, 24 | ( | ( |
| Proceeds from new equity | 21 | ||
| Transaction costs of issue of shares | 21 | ( | ( |
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 | 15 | ||
Cash & cash equivalents outgoing balance |
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
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 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 | ||||||||
As of 1 January 2022 | ||||||||
Profit for the period | ( | ( | ( | |||||
Other comprehensive income | ( | |||||||
Total comprehensive income | ( | ( | ( | |||||
| Share-based payments | 22 | |||||||
Share capital increase | ||||||||
Share capital increase in subsidiary | ||||||||
Transaction cost | ( | ( | ( | |||||
As of 31 December 2022 |
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Notes
Note 1 Corporate information
Group, is a public limited liability company with its
registered office in Norway
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 | Aalesund | 100% | 100% |
Hexagon Purus HK Holding AS | Norway | Aalesund | 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% |
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
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FINANCIAL STATEMENTS FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
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Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
the incoterms in the contract. There are several
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
(NOK 1 000) | 2023 | 2022 |
| Purus | ||
Revenues from contracts with customers | 1 311 811 | 958 636 |
Rental income | 957 | 1 255 |
Other operating revenue | 6 847 | 4 034 |
Total revenue | 1 319 614 | 963 925 |
Segment operating profit before depreciation (EBITDA) | (445 473) | (405 505) |
Segment operating profit (EBIT) | (595 258) | (500 594) |
Segment assets | 3 773 007 | 2 654 903 |
Segment liabilities | 1 853 880 | 967 282 |
(NOK 1 000) | 2023 | 2022 |
| Geographical regions | ||
Norway | 4 161 | - |
Europe, excluding Norway | 1 090 261 | 754 677 |
North America | 196 700 | 172 955 |
Latin America & the Caribbeans | - | 836 |
Asia | 9 520 | 34 872 |
Australia/Oceania | 3 499 | 585 |
Others | 15 474 | - |
Total | 1 319 614 | 963 925 |
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
(NOK 1 000) | 2023 | 2022 |
| Geographical regions | ||
Norway | 145 404 | 135 540 |
Europe, excluding Norway | 1 572 144 | 1 050 578 |
North America | 439 207 | 250 309 |
Asia | 96 892 | 13 517 |
Total external | 2 253 649 | 1 449 944 |
| Property, plant | Intangible | Property, plant | Intangible | |
| and equipment | assets | and equipment | assets | |
| (NOK 1 000) | 2023 | 2023 | 2022 | 2022 |
| Geographical regions | ||||
Norway | 503 | 31 967 | - | 47 665 |
Europe, excluding Norway | 254 154 | - | 148 359 | 1 187 |
North America | 78 072 | 1 111 | 81 200 | 727 |
Asia | 109 914 | 6 550 | 10 471 | 3 046 |
Total | 442 643 | 39 628 | 240 030 | 52 625 |
(NOK 1 000) | 2023 | 2022 |
Sale of cylinders and systems | 1 194 698 | 810 359 |
Sale of services and funded development | 61 131 | 143 395 |
Other revenues | 6 847 | 4 034 |
Contracts with customers at a point in time | 1 262 675 | 957 788 |
| Sale of cylinders and systems | ||
Sale of services and funded development | 55 981 | 4 882 |
Contracts with customers over time | 55 981 | 4 882 |
Revenue from contracts with customers | 1 318 657 | 962 670 |
Rental income | 957 | 1 255 |
Other revenue | 957 | 1 255 |
Total revenue | 1 319 613 | 963 925 |
| Type of goods or service | ||
Sale of cylinders and systems | 1 194 698 | 810 359 |
Sale of services and funded development | 117 112 | 148 277 |
Other revenues | 6 847 | 4 034 |
Rental income | 957 | 1 255 |
Total revenue from contracts with customers | 1 319 613 | 963 925 |
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
(NOK 1 000) | 2023 | 2022 |
Trade receivable | 274 974 | 228 930 |
Contracts assets (accrued revenue) | 11 168 | 9 488 |
Contract liabilities | 196 327 | 212 792 |
(NOK 1 000) | Note | 2023 | 2022 |
Salaries/fees | 516 752 | 344 648 | |
Contractors/hired personnel | 19 934 | 37 516 | |
Board remuneration | 2 668 | 2 658 | |
Share-based payments | 24 368 | 15 776 | |
| Bonuses and incentive programs | 22 | 27 179 | 25 807 |
| Pension expense, defined-benefit plans | 20 | 109 | (686) |
| Pension expense, defined-contribution plans | 20 | 9 031 | 6 798 |
Other personnel related expenses | 13 622 | 11 201 | |
Other social security costs | 24 681 | 18 941 | |
Capitalized personnel costs (development projects) | (16 908) | (19 164) | |
Payroll costs | 621 436 | 443 496 | |
Average number of full-time equivalents: | 638 | 527 | |
Canada | 82 | 69 | |
China | 17 | 11 | |
Norway | 29 | 18 | |
Germany | 457 | 372 | |
USA | 53 | 57 | |
Total number of full-time equivalents | 638 | 527 |
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
| 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 deprecations | (45 863) | (152 774) | - | (198 637) |
Opening balance book value | 98 633 | 157 073 | 239 284 | 494 990 |
Additions this year at cost price | 12 414 | 211 586 | 189 540 | 413 540 |
Transfers from assets under construction | - | 117 969 | (117 969) | - |
Deprecations this year | (10 841) | (50 430) | - | (61 272) |
Impairments this year | - | - | - | - |
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 |
| Buildings and | Machinery | Assets | ||
| real estate | and | under | ||
| (NOK 1 000) | properties | equipment | construction | 2022 total |
| Fixed assets | ||||
Opening balance at cost price | 138 110 | 212 849 | 81 604 | 432 563 |
Opening balance accumulated deprecations | (38 253) | (126 605) | - | (164 858) |
Opening balance book value | 99 857 | 86 245 | 81 604 | 267 705 |
Additions this year at cost price | 1 033 | 65 813 | 173 185 | 240 030 |
Transfers from assets under construction | - | 25 226 | (25 226) | - |
Deprecations this year | (7 610) | (26 020) | - | (33 630) |
Impairments this year | - | (149) | - | (149) |
Translation differences | 5 353 | 8 765 | 9 721 | 23 839 |
Disposals | - | (2 806) | - | (2 806) |
Closing balance 31.12.2022 | 98 633 | 157 073 | 239 284 | 494 990 |
Closing balance at cost price | 144 496 | 309 847 | 239 284 | 693 627 |
Closing balance accumulated depreciations | (45 863) | (152 774) | - | (198 637) |
Useful life | 10–20 years | 3–15 years | ||
| Depreciation method | Straight-line | Straight-line |
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
| 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 |
Net additions this year at cost price | 38 948 | 680 | 39 628 | ||
Amortizations this year | (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 |
| Technology | |||||
| and | Patents and | Customer | |||
| (NOK 1 000) | development | licenses | relationships | Goodwill | 2022 total |
| Intangible assets | |||||
Opening balance at cost price | 152 180 | 12 318 | 173 313 | 497 587 | 835 398 |
Opening balance accumulated amortization | (10 951) | (4 546) | (67 606) | - | (83 104) |
Opening balance booked value | 141 228 | 7 772 | 105 707 | 497 587 | 752 294 |
Net additions this year at cost price | 51 331 | 1 294 | 52 625 | ||
Amortization this year | (14 820) | (2 923) | (19 163) | (36 906) | |
Translation differences | 3 276 | 437 | 4 773 | 26 154 | 34 640 |
Disposals | - | ||||
Closing balance 31.12.2022 | 181 015 | 6 581 | 91 316 | 523 741 | 802 654 |
Closing balance at cost price | 206 787 | 14 050 | 178 086 | 523 741 | 922 664 |
Closing balance accumulated amortization | (25 772) | (7 469) | (86 770) | - | (120 010) |
Useful life | 5–20 years | 6–17 years | 7–9 years | Indefinite | |
Amortization method | Straight-line Straight-line Straight-line | None |
(NOK 1 000) | 2023 | 2022 |
Purus | 559 941 | 523 741 |
Total goodwill | 559 941 | 523 741 |
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
| 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 this year at cost price | 425 017 | 6 796 | 5 618 | 437 431 |
Deprecations this year | (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 | Linear |
| Fixtures, | ||||
| Land and | Machinery and | fittings, | ||
| (NOK 1 000) | buildings | equipment | vehicles | 2022 total |
| 2022 | ||||
Opening balance at cost price | 69 225 | 19 134 | 3 468 | 91 827 |
Opening balance accumulated deprecations | (36 262) | (906) | (2 440) | (39 608) |
Opening balance 1 January | 32 963 | 18 228 | 1 028 | 52 219 |
Additions this year at cost price | 118 929 | 1 505 | 2 038 | 122 472 |
Derecognition | (2 520) | - | - | (2 520) |
Deprecations this year | (18 387) | (4 937) | (1 079) | (24 404) |
Translation differences | 3 327 | 1 094 | 113 | 4 533 |
Closing balance 31 December | 134 311 | 15 890 | 2 099 | 152 300 |
Depreciation method | Linear | Linear | Linear | Linear |
Useful life | 3–10 years | 2–7 years | 2–5 years |
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
(NOK 1 000) | 2023 | 2022 |
| Summary of lease liabilities | ||
Opening balance 1 January | 154 710 | 53 079 |
New lease liabilities recognized in the year | 437 431 | 122 472 |
Derecognition | - | (2 547) |
Cash payments for the principal portion of the lease liability | (29 537) | (23 656) |
Cash payments for the interest portion of the lease liability | (22 261) | (2 471) |
Interest expense on lease liabilities | 22 261 | 2 471 |
Currency exchange differences | (4 536) | 5 362 |
Lease liabilities 31 December | 558 068 | 154 710 |
| hereof: | ||
Current lease liabilitiies | 39 930 | 22 230 |
Non-current lease liabilities | 518 138 | 132 479 |
Total lease liabilities 31 December | 558 068 | 154 710 |
(NOK 1 000) | 2023 | 2022 |
| Lease liability cash flow (excl interests) | ||
Less than a month | 2 230 | 1 851 |
1–3 months | 5 789 | 3 715 |
3–12 months | 31 912 | 16 665 |
Less than 1 year | 39 930 | 22 230 |
1–5 years | 172 969 | 85 087 |
More than 5 years | 345 169 | 47 392 |
Total discounted lease liabilities 31 December | 558 068 | 154 710 |
(NOK 1 000) | 2023 | 2022 |
| Lease interest expense cash flow | ||
Less than a month | 3 227 | 1 021 |
1–3 months | 6 434 | 2 015 |
3–12 months | 28 032 | 8 684 |
Less than 1 year | 37 693 | 11 720 |
1–5 years | 120 958 | 33 111 |
More than 5 years | 90 230 | 13 448 |
Total lease interests following periods | 248 880 | 58 280 |
(NOK 1 000) | 2023 | 2022 |
| Undiscounted cash outflow | ||
Less than a month | 5 457 | 2 871 |
1–3 months | 12 222 | 5 730 |
3–12 months | 59 944 | 25 348 |
Less than 1 year | 77 623 | 33 950 |
1–5 years | 293 927 | 118 199 |
More than 5 years | 435 398 | 60 841 |
Total undiscounted lease liabilities 31 December | 806 948 | 212 989 |
(NOK 1 1000) | 2023 | 2022 |
| Summary of cash outflows leases | ||
Cash payment for leases | 51 798 | 26 127 |
Variable payments | 12 055 | 8 508 |
Cash payments related to short term leases and leases of low value | 333 | 259 |
Total cash outflow for leases | 64 186 | 34 894 |
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
| Ownership | Ownership | ||||
| Business | share | share | Accounting | ||
| Country | segment | 31.12.2022 | 31.12.2023 | method | |
| Companies | Equity method/ | ||||
| Norwegian Hydrogen AS | Norway | Hexagon Purus | 14.0% | 12.7% | Fair value 1 |
| Cryoshelter LH2 GmbH | Austria | Hexagon Purus | 40.0% | 40.0% | Equity method |
| CIMC Hexagon Hydrogen | |||||
| Energy Systems Ltd. | Hong Kong | Hexagon Purus | 49.0% | 49.0% | Equity method |
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
| CIMC Hexagon Hydrogen | ||||||||
Norwegian Hydrogen AS | Cryoshelter LH2 GmbH | Energy Systems | Total | |||||
(NOK 1000) | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 |
Share of profit after tax | - | (2 845) | (8 330) | (2 439) | (4 172) | (5 988) | (12 503) | (11 272) |
PPA amortizations associated companies | - | - | - | - | - | - | - | - |
Gain on loss of significant influence | - | 63 159 | - | - | - | - | - | 63 159 |
Total profit/loss from investments in associated companies as per 31.12 | - | 60 314 | (8 330) | (2 439) | (4 172) | (5 988) | (12 503) | 51 887 |
| CIMC Hexagon Hydrogen | ||||||||
Norwegian Hydrogen AS | Cryoshelter LH2 GmbH | Energy Systems | Total | |||||
(NOK 1000) | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 |
| Companies | ||||||||
Carrying value as at 01.01 | - | 7 024 | 31 258 | - | 1 771 | - | 33 029 | 7 024 |
Purchase of shares | - | - | - | 33 738 | - | - | - | 33 738 |
Share capital contribution | - | - | - | - | 29 305 | 7 743 | 29 305 | 7 743 |
Share of profit after tax incl. PPA amortizations | - | (2 845) | (8 330) | (2 439) | (4 172) | (5 988) | (12 503) | (11 272) |
Dividends | - | - | - | - | - | - | ||
Sale of shares | - | - | - | - | - | - | - | - |
Derecognition - loss of significant influence | - | (4 179) | - | - | - | - | - | (4 179) |
Currency translation effects | - | - | 134 | (41) | 178 | 16 | 312 | (25) |
Carrying value as per 31.12 | - | - | 23 062 | 31 258 | 27 082 | 1 771 | 50 143 | 33 029 |
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
| Cryoshelter | |
| (NOK 1 1000) | LH2 GmbH |
Non-current assets | 203 |
Current assets | 5 150 |
Non-current liabilities | 3 946 |
Current liabilities | 2 951 |
Equity as per 01.08.2022 | (1 543) |
Hexagon's share of equity (40%) | (617) |
| Intangible assets (technology) | 19 702 |
Goodwill | 14 654 |
Hexagon's carrying value of the investment | 33 738 |
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
(NOK 1 000) 2023 | 2022 | |
| Loans (as lender) | 34 249 | 13 193 |
| Other shares | 95 403 | 67 339 |
Other non-current assets | 33 767 | 2 499 |
Total other non-current assets | 163 419 | 83 030 |
Note 12 Inventories
(NOK 1 000) 2023 | 2022 | |
Raw materials and consumables | 265 378 | 195 047 |
Work in progress | 88 931 | 107 224 |
Finished goods | 127 387 | 29 947 |
Total inventories | 481 695 | 332 218 |
Provision for obsolete inventory in balance sheet | 24 584 | 16 711 |
Carrying amount of holdings used as pledged assets | - | - |
Provisions for obsolete inventory in balance sheet, are presented net at each category of inventory.
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
(NOK 1 000) 2023 | 2022 | |
Trade receivables | 277 961 | 230 895 |
Provisions for loss | (2 987) | (1 965) |
Trade receivables after provision for losses | 274 974 | 228 930 |
Carrying amount of trade receivables used as pledged assets | - | - |
| Trade receivables | |||||||
| 30–60 | 60–90 | ||||||
| Contract | <30 days | days | days | >90days | |||
assets | Not due | past due | past due | past due | past due | Total | |
| 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 |
| 2022 | |||||||
Expected credit loss rate | - | 0.4% | - | 7.3% | - | 8.3% | |
Carrying amount at default | 9488 | 180 357 | 33 531 | 7 595 | 1 494 | 7 916 | 230 895 |
Expected credit loss | (751) | (557) | (657) | (1 965) | |||
Net carrying amount | 9 488 | 179 607 | 33 531 | 7 038 | 1 494 | 7 260 | 228 930 |
(NOK 1 000) 2023 | 2022 | |
Opening balance 1 January | 1 965 | 1 736 |
Provision for losses for the year | 911 | 652 |
Actual losses during the year | - | (442) |
Translation differences | 111 | 20 |
Closing balance 31 December | 2 988 | 1 965 |
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
(NOK 1 000) 2023 | 2022 | |
Other debtors | 27 226 | 17 634 |
Prepaid expenses | 148 781 | 50 712 |
Prepayment to suppliers | 27 629 | 61 188 |
Entitlement to VAT sand sales tax | 20 878 | 480 |
Entitlement to income tax refund | 45 | 1 816 |
Other | 5 915 | 4 730 |
Total other current assets | 230 474 | 136 560 |
(NOK 1 000) 2023 | 2022 | |
Cash at bank and in hand | 307 485 | 381 705 |
Undrawn Group overdraft facility | 8 430 | 15 771 |
| Restricted funds included in cash & cash equivalents | 5 357 | 1 482 |
(NOK 1 000) 2023 | 2022 | |
Interest income | 29 564 | 8 111 |
Foreign exchange items | 56 181 | 29 245 |
Other finance income | 17 928 | - |
Total finance income | 103 673 | 37 356 |
Loss on exchange items | 81 491 | 16 634 |
Cost of interest on loans etc. | 83 373 | 10 141 |
Cost of interest on lease liabilities | 22 261 | 2 471 |
Other finance expense | 98 | 303 |
Total finance expense | 187 223 | 29 548 |
Net financial items | (83 550) | 7 808 |
| Other financial income includes NOK 18 million in revaluation gain of the Company’s ownership interest in |
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
(NOK 1 000) 2023 | 2022 | |
| Financial assets at amortized costs | ||
Trade receivables | 274 974 | 228 930 |
Other non-current financial assets | 34 249 | 13 193 |
Other current financial assets | 38 394 | 24 660 |
| Financial assets at fair value | ||
Other non-current financial assets | 95 403 | 67 339 |
Total | 443 019 | 334 121 |
Total current | 313 368 | 253 590 |
Total non-current | 129 651 | 80 531 |
(NOK 1 000) 2023 | 2022 | |
| Financial liabilities at amortized cost | ||
Trade and other payables | 220 457 | 255 712 |
Non-current interest bearing loans and borrowings | 596 482 | 39 358 |
Other current financial liabilities | - | 45 777 |
Current interest bearing loans and borrowings | 2 317 | 4 673 |
| Financial liabilities at fair value | ||
Other non-current financial liabilities (Contingent liabilities) | - | 39 789 |
Other current financial liabilities (Contingent liabilities) | 42 539 | 29 275 |
Total | 861 796 | 414 584 |
Total current | 265 313 | 335 437 |
Total non-current | 596 482 | 79 147 |
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
2023 | 2022 | ||||
(NOK 1 000) | Level | Book value | Fair value | Book value | Fair value |
| Financial assets | |||||
Other non-current financial assets | 3 | 95 403 | 95 403 | 67 339 | 67 339 |
Other non current assets | 2 | 34 249 | 34 249 | 13 193 | 13 193 |
Other current financial assets | 2 | 38 394 | 38 394 | 24 660 | 24 660 |
Total financial assets | 168 045 | 168 045 | 105 191 | 105 191 | |
Total current | 38 394 | 38 394 | 24 660 | 24 660 | |
Total non-current | 129 651 | 129 651 | 80 531 | 80 531 | |
| Financial liabilities | |||||
Interest bearing loans and borrowings | 2 | 598 799 | 598 799 | 44 030 | 39 028 |
Other non-current financial liabilities | 3 | - | - | 39 789 | 39 789 |
Other current financial liabilities | 3 | 42 539 | 42 539 | 75 051 | 75 051 |
Total financial liabilities | 641 339 | 641 339 | 158 870 | 153 868 | |
Total current | 44 856 | 44 856 | 79 723 | 74 721 | |
Total non-current | 596 482 | 596 482 | 79 147 | 79 147 |
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Note 18 Financial risk management
The Group’s principal financial liabilities, is com-
prised of interest bearing loans and borrowings,
and trade payables and other payables. The main
purpose of these financial liabilities is to finance the
Group’s operation. The Group’s principal financial
assets include trade receivables, cash and cash
equivalents that derive directly from its operations.
The Group is exposed to interest rate risk, liquidity
risk, currency risk and credit risk. The Group’s man-
agement regularly evaluates these risks and defines
guidelines on appropriate financial risk governance
framework for the Group. Procedures for risk man-
agement are adopted by the board and carried out
by the chief financial officer in close cooperation
with the subsidiaries.
The Group may use financial instruments under its
strategy to hedge risks associated with interest rate
and foreign currency fluctuations. The Group is not
using any such instruments for the time being.
2023 | 2022 | |
Loan from related party | na | 5.2% |
Loan from financial institutions | 1.56% - 7.50% | 1.56% - 7.50% |
Convertible bond | 6% | na |
Leases | 2.50% - 10.50% | 2.50% - 10.50% |
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
| 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) | |
2023 | +100 | (212) | - |
(100) | 212 | - | |
2022 | +100 | (440) | - |
(100) | 440 | - |
| Less than | 3–12 | |||||
1 month | 1–3 months | months | 1–5 years | 5 years+ | Total | |
Repayment of bank loans | 193 | 579 | 1 545 | 11 720 | 13 126 | 27 163 |
Interest on bank loans | 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 | 206 070 | 58 929 | 111 021 | 1 384 420 | 449 653 | 2 210 092 |
| Less than | 3–12 | |||||
1 month | 1–3 months | months | 1–5 years | 5 years+ | Total | |
Repayment of bank loans | 389 | 1168 | 3 115 | 14 202 | 25 156 | 44 030 |
Interest on loans | 75 | 226 | 604 | 3 304 | 3 953 | 8 162 |
Leases | 1 851 | 3 715 | 16 665 | 85 087 | 47 392 | 154 710 |
Interest on leases | 1 021 | 2 015 | 8 684 | 33 111 | 13 448 | 58 280 |
Other non-current financial liabilities | 39 789 | 39 789 | ||||
Other current financial liabilities | 75 052 | 75 052 | ||||
Trade payables | 200 380 | 46 008 | 6 676 | 2 366 | 283 | 255 712 |
Total | 203 716 | 53 133 | 110 794 | 177 860 | 90 232 | 635 735 |
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
| Movement of NOK | Effect on profit/ loss | ||
| against USD | before tax | Effect on OCI pre tax | |
2023 | +10% | (19 789) | - |
(10%) | 19 789 | - | |
2022 | +10% | (19 246) | - |
(10%) | 19 246 | - |
| Movement of NOK | Effect on profit/ loss | ||
| against EUR | before tax | Effect on OCI pre tax | |
2023 | +10% | (38 277) | - |
(10%) | 38 277 | - | |
2022 | +10% | (27 123) | - |
(10%) | 27 123 | - |
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Note 19 Short term provisions
(NOK 1 000) 2023 | 2022 | |
Balance 1 January | 38 227 | 12 882 |
Translation differences | 2 278 | - |
Provisions for the year | 28 195 | 28 480 |
Provisions used (and reversed) during the year | (3 765) | (5 954) |
Warranty provision, other changes | 847 | 2 819 |
Balance 31 December | 65 782 | 38 227 |
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) our 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
thereby be expected to be related to activity and new contracts.
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Note 20 Pensions
Pension plans in Hexagon Purus Group
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.
Our subsidiaries in the USA offer defined contribution plans subject to USA statutory requirements. The defined
contribution plans cover full-time employees and employer contributions range up to 6 per cent 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
comprehensive income. There are two active and four retired employees in the pension plan. The pension liability
is calculated by an actuary. The net pension liability is presented below. Based on the limited participation and
liability, the plan is considered of low significance.
Summary of pension cost
(NOK 1 000) | 2023 | 2022 |
Defined contribution pension plan | 8 762 | 6 566 |
Defined benefit pension plan | 109 | (453) |
Total | 8 870 | 6 113 |
Pension related assets and liabilities
(NOK 1 000) 2023 | 2022 | |
Pension liabilities | 1 717 | 1 439 |
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
2023 | 2022 | |
Ordinary shares of NOK 0.10 (2023/2022) | 276 797 456 | 258 278 937 |
Total number of shares | 276 797 456 | 258 278 937 |
Number of shares | Share capital (NOK 1 000) | Share premium (NOK 1 000) | ||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |
| Ordinary shares | ||||||
Issued and paid 1 January | 258 278 937 | 233 536 669 | 25 828 | 23 354 | 1 542 880 | 1 383 817 |
Issued new share capital | 18 518 519 | 24 742 268 | 1 852 | 2 474 | 497 976 | 597 526 |
Transaction cost | (25 846) | (6 134) | ||||
| Other changes | ||||||
Issued and paid, end of period | 276 797 456 | 258 278 937 | 27 680 | 25 828 | 2 015 010 | 1 975 208 |
Transferred to share premium | (672 703) | (432 328) | ||||
Net total | 1 342 308 | 1 542 880 |
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
| Number of | ||
shares | Shareholding | |
HEXAGON COMPOSITES ASA | 106 303 905 | 38.40% |
CLEARSTREAM BANKING S.A. | 37 583 055 | 13.58% |
MITSUI & CO LTD | 20 934 815 | 7.56% |
FLAKK COMPOSITES AS | 10 268 728 | 3.71% |
MP PENSJON PK | 8 589 094 | 3.10% |
The Bank of New York Mellon SA/NV | 5 469 001 | 1.98% |
Citibank Europe plc | 5 418 303 | 1.96% |
DNB Markets Aksjehandel/-analyse | 5 089 052 | 1.84% |
Deutsche Bank Aktiengesellschaft | 4 542 152 | 1.64% |
DANSKE BANK | 3 579 483 | 1.29% |
J.P. MORGAN SECURITIES PLC | 3 308 845 | 1.20% |
BRØDR. BØCKMANN AS | 2 688 996 | 0.97% |
Nordnet Bank AB | 2 088 067 | 0.75% |
The Bank of New York Mellon SA/NV | 2 057 142 | 0.74% |
BNP Paribas | 2 005 485 | 0.72% |
VERDIPAPIRFONDET STOREBRAND NORGE | 1 982 538 | 0.72% |
NØDINGEN AS | 1 727 673 | 0.62% |
UBS Switzerland AG | 1 602 336 | 0.58% |
BNP Paribas | 1 479 814 | 0.53% |
CACEIS Investor Services Bank S.A. | 1 431 472 | 0.52% |
Total 20 largest shareholders | 228 149 956 | 82.42% |
Remainder | 48 647 500 | 17.58% |
Total | 276 797 456 | 100.00% |
Note 22 Share-based payment
Programs
As of 31 December 2023, 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.
One of the three PSU programs is an executive management investment program awarded at the time of the
Company’s listing on Euronext Growth in 2020. Each eligible employee will at vesting date be entitled to up to
three new shares in the Company per share invested, provided he or she is still employed in the Company at such
date. The entitlement depends on fulfilment of three criteria, one per matching share.
The two other PSU programs give eligible employees the right to receive up to twice the number of Hexagon
Purus shares as corresponds to the number of PSUs vested on grant date, subject to satisfaction of the applicable
vesting conditions and share price development.
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 24.8 million full year in 2023 (NOK 15.8 million as of 31 December 2022). The unamortized fair
value of all outstanding RSUs and PSUs as of 31 December 2023 is estimated to be NOK 42.3 million (NOK 38.0
million).
There are no cash settlement obligations.
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Performance share units’ programs (PSUs)
Issued 2020 | Issued 2022 | Issued 2023 | |
Opening balance, number of instruments | 421 242 | 958 686 | - |
Grants | - | - | 1 724 946 |
Lapsed/cancelled | - | - | (87 123) |
Closing balance | 421 242 | 958 686 | 1 637 823 |
Fair value – at grant date (NOK) | 20.83 | 33.99 | 22.57 |
Vesting period | 3 years | 3 years | 3 years |
Expiry | Q1 2024 | Q1 2025 | Q1 2026 |
Restricted share units’ programs (RSUs)
Issued 2020 | Issued 2022 | Issued 2023 | |
Opening balance, number of instruments | 695 621 | 85260 | - |
Grants | 91 000 | - | 117 090 |
Lapsed/cancelled | (47 500) | (12 180) | (7 806) |
Closing balance | 739 121 | 73 080 | 109 284 |
Fair value – at grant date (NOK) | 27.30 | 27.76 | 22.04 |
Vesting period | 3 years | 3 years | 3 years |
Expiry | Q1 2024 | Q1 2025 | Q1 2026 |
Note 23 Earnings per share
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
(NOK 1 000) Note 2023 | 2022 | ||
| Profit/loss for the year flowing to holders of ordinary shares | |||
Profit/loss for the year | (672 703) | (431 518) | |
| Weighted average number of shares outstanding 31 December | |||
| Ordinary shares issued 1 January | 23 | 258 278 937 | 233 536 669 |
| Own shares | |||
Issued new shares | 18 518 519 | 24 742 268 | |
Outstanding number of shares 31 December | 276 797 456 | 258 278 937 | |
Weighted average number of shares outstanding 31 December 1 | 276 797 456 | 258 278 937 | |
Profit/loss per share | (2.43) | (1.67) | |
| Diluted number of shares outstanding 31 December | |||
| Ordinary shares issued 1 January | 23 | 258 278 937 | 233 536 669 |
| Own shares | |||
Issued new shares | 18 518 519 | 24 742 268 | |
| Effect of employee options issued | |||
Outstanding shares 31 December adjusted for dilution effects | 276 797 456 | 258 278 937 | |
| Weighted average number of shares outstanding 31 December | |||
adjusted for dilution effects | 276 797 456 | 258 278 937 | |
Diluted profit/loss per share | (2.43) | (1.67) |
1
Weighted average number of shares 31 December represented by closing balance 31 December
There are 3 924 236 instruments (including contingently issuable shares), consisting of 906 485 RSUs and 3 017 751
PSUs, that could potentially dilute basic earnings per share in the future.
The subscribers in the Convertible Bond Private Placement issued in March 2023, will receive 100 million
non-transferrable warrants and 4.5 million non-transferrable additional warrants. All warrants will be issued
irrespectively of whether the full amount of the Convertible Bonds are subscribed. The warrants will be allocated
pro rata among the Convertible Bonds subscribers based on their Convertible Bonds allocation amount.
These are not included in the calculation of diluted earnings per share because they are antidilutive for the
periods presented.
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
(NOK 1 000) 2023 | 2022 | |
Opening balance | 44 030 | 55 761 |
Exchange difference | 5 344 | |
Repayment of loans | (20 000) | (11 731) |
Transaction cost and accrued interest | 62 834 | - |
Proceeds from new loans | 506 591 | - |
Closing balance 31 December | 598 799 | 44 030 |
| Amount | Amortized | Carrying | ||||
| Principal | Transaction | at initial | Accumulated | transaction | amount | |
| (NOK 1 000) | amount | costs | recognition | interests | costs | 31.12.2023 |
Liability component | 521 648 | (15 057) | 506 591 | 61 225 | 1 609 | 569 425 |
Equity component | 278 352 | (8 034) | 270 318 | - | - | 270 318 |
Total | 800 000 | (23 091) | 776 909 | 61 225 | 1 609 | 839 743 |
| Interest rate | |||||
conditions | Currency | Maturity | 2023 | 2022 | |
| Secured loans | |||||
Volksbank an der Niers eG | 1.55% | EUR | 30.09.2036 | 3 089 | 6 575 |
Deutsche Bank AG | 1.96% | EUR | 30.03.2037 | - | 12 983 |
Deutsche Bank AG | 2.88% | EUR | 30.06.2033 | 16 781 | 15 090 |
Deutsche Bank AG | 1.79% | EUR | 30.11.2025 | 7 292 | 4 710 |
Total non-current liabilities, not including 1 st year’s instalments | 27 163 | 39 358 |
(NOK 1 000) 2024 | 2025 | 2026 | 2027 | 2028 | Thereafter | |
| Repayments | ||||||
structure for non-current lia- bilities (1 st year as current) | 2 317 | 2 930 | 2 930 | 2 930 | 2 930 | 13 126 |
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Reconciliation for liabilities arising from financing activities
(NOK 1 000)
| Financial | Lease | ||
| liabilities | liabilities | Total | |
Liabilities 1 January 2023 | 158 871 | 154 710 | 313 581 |
| 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 | ||
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 | 1 136 573 |
Liabilities 1 January 2022 | 164 867 | 53 079 | 217 946 |
| Financing activities with cash settlement | |||
Repayment of loans and liabilities | (11 731) | - | (11 731) |
Repayment of lease liabilities | - | (23 656) | (23 656) |
Proceeds from loans and liabilities | - | - | - |
| Financing activities without cash settlement | |||
Additions from purchase of companies | - | - | - |
Deferred payment and contingent liabilities | - | - | - |
New lease liabilities | - | 122 472 | 122 472 |
Exchange differences | 5 735 | 5 362 | 11 096 |
Other transactions without cash settlement | (2 547) | (2 547) | |
Balance 31 December 2022 | 158 871 | 154 710 | 313 581 |
(NOK 1 000) 2023 | 2022 | |
| Short term loan | ||
| Secured current interest-bearing liabilities | ||
Overdraft facility | - | - |
1 st year’s instalments, non-current interest-bearing liabilities | 2 317 | 4 673 |
Total | 2 317 | 4 673 |
1 st year’s instalments, lease liabilities | 39 930 | 22 230 |
(NOK 1 000) 2023 | 2022 | |
Public duties payable | 7 996 | 679 |
Accrued expenses and other current liabilities | 73 274 | 70 976 |
Other current liabilities | 50 442 | 25 043 |
Total | 131 712 | 96 699 |
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Note 27 Related parties disclosure
The Income statement includes the following amounts resulting from
transactions with Hexagon Composites ASA Group
(NOK 1 000) | 2023 | 2022 |
Sales revenue | 42 311 | 42 610 |
Cost of materials | 583 943 | 215 048 |
Other operating expenses | 39 461 | 65 608 |
Interest expenses from related parties | 1 525 | 118 |
The balance sheet includes the following amounts resulting from
transactions with Hexagon Composites ASA Group
(NOK 1 000) 2023 | 2022 | |
Trade receivables | 10 442 | 42 760 |
Trade payables | 157 908 | 83 607 |
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
| Value of | Total | |||||
| Salaries | Benefits | Paid pension | vested | remuneration | ||
| NOK 1 000 | and fees | Bonuses 1 | in kind | premium | instruments | 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 |
| Value of | Total | |||||
| Salaries | Benefits | Paid pension | vested | remuneration | ||
| NOK 1 000 | and fees | Bonuses 1 | in kind | premium | instruments | 2022 |
| Executive | ||||||
management | 18 775 | 9 802 | 338 | 1 363 | 8 513 | 38 791 |
Board of directors | 2 478 | 2 478 | ||||
Total remuneration | 21 253 | 9 802 | 338 | 1 363 | 8 513 | 41 269 |
2023 | 2022 | |
Espen Gundersen (Chairman) 1 | 45 619 | 20 619 |
Jon Erik Engeset 2 | 199 473 | 60 518 |
Rick Rashilla | 67 362 | 54 587 |
Knut Flakk 3 | na | 4 781 061 |
Karen Romer 5 | na | 2 334 |
Martha Kold Bakkevig | 4 124 | 4 124 |
Jannicke Hilland 3 | na | 10 309 |
Liv Fiksdahl 4 | - | na |
Susana Quintana-Plaza 4 | - | na |
Hidetomo Araki 4 | - | na |
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
2023 | 2022 | |
Morten Holum - President and CEO | 130 646 | 115 708 |
Salman Alam - CFO | 8 247 | 8 247 |
Dilip Warrier - EVP Strategic Projects | 8 559 | - |
Michael Kleschinski - EVP Light duty, Distribution & Cylinders | 112 000 | 71 065 |
Todd Sloan - EVP Systems | 69 759 | 45 787 |
Anne Lise Hjelseth - EVP People & Culture | 41 237 | 41 237 |
Heiko Chudzick - EVP Operations | 61 060 | 20 619 |
Frank Häberli - SVP Asia | 60 664 | 60 664 |
(NOK 1 000) 2023 | 2022 | |
Statutory audit and auditing-related services | 5 390 | 3 854 |
Other attestation services | 95 | - |
Tax advice | 1 295 | 1 543 |
Other non-auditing services | - | 17 |
Total | 6 780 | 5 414 |
(NOK 1 000) | 2023 | 2022 |
Income tax payable in the income statement | 1 770 | 122 |
Change in deferred tax in income statement | (6 063) | (6 688) |
Foreign exchange translation effects on tax expense | (3 501) | (2 815) |
Tax expense | (7 793) | (9 380) |
Income tax payable in the balance sheet | 509 | 3 290 |
Prepaid tax abroad in the balance sheet | 33 | 8 |
Settled tax not paid | (509) | (3 173) |
FX translation effects | 29 | (3) |
Other effects | 1 708 | (3) |
Total income tax payable in the income statement | 1 770 | 122 |
Nominal tax rates in Norway | 22% | 22% |
Profit before tax | (691 310) | (440 898) |
Tax based on nominal tax rate in Norway | (152 088) | (96 998) |
Varying foreign tax rates vs. Norwegian tax rate | (29 231) | (19 839) |
Other non-taxable income and non-taxable expenses | (168) | 4 633 |
Deferred tax asset not recognized in statement of financial position | 171 086 | 114 341 |
Other differences relating to foreign subsidiaries | (384) | (305) |
Share of profit/loss from associates | 2 992 | (11 213) |
Tax expense from prior periods | - | - |
Tax expense in income statement | (7 793) | (9 380) |
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Balance sheet | Change in deferred tax in income statement | |||
(NOK 1 000) | 2023 | 2022 | 2023 | 2022 |
| Deferred tax asset | ||||
Loss carried forward | (346 959) | (216 049) | (130 910) | (73 000) |
Property, plant & equipment | 9 012 | - | 9 012 | - |
Intangible assets | 12 | - | 12 | - |
Inventories | (6 429) | (8 246) | 1 817 | (7 731) |
Trade receivables | (163) | - | (163) | - |
Provisions for liabilities/other current liabilities | (7 547) | (7 419) | (128) | (4 137) |
Other | (8 143) | (5 085) | (2 088) | (1 122) |
Deferred tax asset– gross | (360 217) | (236 799) | (122 448) | (85 990) |
Reduction of tax assets due to uncertainty | 360 217 | 232 208 | 128 010 | 83 588 |
Deferred tax assets - net carrying amount | - | (4 591) | 5 562 | (2 401) |
| Deferred tax liabilities | ||||
Property, plant & equipment | 756 | 4 039 | (3 283) | 2 133 |
Intangible assets | 38 052 | 44 090 | (6 038) | (6 395) |
Trade receivables | - | 737 | (737) | (2) |
Pensions (overfunded) | - | - | - | (18) |
Provisions for liabilities/other current liabilities | (298) | 1 268 | (1 567) | (4) |
Deferred tax liabilities – gross | 38 510 | 50 134 | (11 624) | (4 285) |
Net recognized deferred tax liabilities/assets (-) | 38 510 | 45 543 | (6 063) | (6 688) |
| Carrying amounts | ||||
Deferred tax asset | - | - | - | - |
Deferred tax liabilities | 38 510 | 45 543 | - | - |
Net recognized deferred tax assets/ deferred tax liabilities | 38 510 | 45 543 | - | - |
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
(NOK 1 000) 2023 | 2022 | |
Actuarial gains/losses, pensions | - | - |
Derivatives | - | - |
Total | - | - |
Note 29 Government grants
(NOK 1 000) | 2023 | 2022 |
| Governmental grants related to income | ||
Governmental grants presented as income | - | 1 602 |
Governmental grants reducing R&D personnel cost | - | 336 |
Governmental grants presented as general cost reduction | 8 247 | 493 |
Total governmental grants related to income | 8 247 | 2 431 |
Grant total governmental grants received | 8 247 | 2 431 |
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
(NOK 1 000) 2023 | 2022 | |
First year | 262 135 | - |
Second year | 349 931 | - |
Thereafter | - | - |
Total | 612 066 | - |
(NOK 1 000) 2023 | 2022 | |
First year | 98 650 | 93 342 |
Second year | - | - |
Thereafter | - | 415 |
Total | 98 650 | 93 757 |
(NOK 1 000) 2023 | 2022 | |
First year | 78 313 | 33 950 |
Second year | 83 384 | 40 746 |
Thereafter | 645 251 | 138 293 |
Total | 806 948 | 212 989 |
Note 31 Events after the balance sheet date
Opened new hydrogen infrastructure and systems manufacturing hub in Weeze, Germany, which significantly
increases production capacity for hydrogen infrastructure solutions. The manufacturing hub opened in January
2024.
On 20 December 2023, the Group announced the completion of a private placement of Convertible Bonds,
raising total gross proceeds of approximately NOK 1 000 million (the “Convertible Bonds”). The Convertible
Bonds are structured as a 5-year senior unsecured convertible bond with a 10 per cent fixed interest rate payable
semi-annually in kind (i.e. through issuance of additional bonds). The conversion price per common share
in the Company for the Convertible Bonds has been set to NOK 12.61, which is a 25 per cent premium to the
volume-weighted average price of the Hexagon Purus share on the Oslo Stock Exchange over the 45 trading
days up to and including 20 December 2023. The subscribers of the Convertible Bonds will receive 270 000 000
non-transferrable Warrants (the “Warrants”) and 14 000 000 non-transferrable additional Warrants (the
“Additional Warrants”). The Warrants and Additional Warrants will be allocated pro-rata among the subscribers of
the Convertible Bonds based on their respective allocations The raise of the Convertible Bond was approved on
an extraordinary general meeting on 11 January 2024, and the Convertible Bond was issued on 1 February 2024.
In February 2024, the Company provisionally awarded up to 1 040 000 Restricted Share Units (“RSUs”) and
1 940 000 Performance Share Units (“PSUs”) which may result in an award of 4 920 000 shares to executive man-
agement and other leading employees of the Group under the 2024 Long-Term Incentive Program. The purpose
of the program is to align the interests of the participants with those of the Company’s shareholders. Please refer
to stock exchange release from 13 February for more details.
There have not been any other significant events after the balance sheet date that have not been previously
disclosed in this report.
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUPFINANCIAL STATEMENTS | FINANCIAL STATEMENTS GROUP
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Income statement – Parent Company
HEXAGON PURUS ASA
(NOK 1 000) Note 2023 2022
Revenue 2 156 855 158 606
Other revenue 960 1 844
Total operating income 157 815 160 450
Payroll & social security expenses
3, 4, 5 98 165 92 577
Depreciation 557 513
Other operating expenses
4 71 613 102 810
Total operating expenses 170 335 195 899
Operating profit (EBIT) (12 520) (35 450)
Finance income
6 123 859 54 105
Finance expense
6 162 202 27 375
Profit/loss on ordinary activities before tax (50 864) (8 719)
Tax
7 - -
Profit/loss on ordinary activities (50 864) (8 719)
Profit/loss for the year (50 864) (8 719)
Share premium (50 864) (8 719)
Total transferred (50 864) (8 719)
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | FINANCIAL STATEMENTS PARENT COMPANYFINANCIAL STATEMENTS | FINANCIAL STATEMENTS PARENT COMPANY
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Balance sheet – Parent Company
HEXAGON PURUS ASA
(NOK 1 000) Note 31 Dec 2023 31 Dec 2022
ASSETS
Financial assets
Property, plant & equipment 754 1 312
Investments in subsidiaries
8 3 075 258 2 087 651
Investments in shares
8 54 755 44 618
Non-current receivables group companies
9 321 413 230 540
Non-current receivables associated companies 34 249 12 541
Other non-current assets - 2 348
Total non-current assets 3 486 429 2 379 010
Current assets receivables
Trade receivables
2 - 33
Other receivables group
2 95 414 16 975
Other receivables
2 1 029 490
Bank deposits, cash and cash equivalents
10 432 579 333 483
Total current assets 529 023 350 981
Total assets 4 015 452 2 729 992
(NOK 1 000) Note 31 Dec 2023 31 Dec 2022
EQUITY AND LIABILITIES EQUITY
Paid-in capital
Share capital 27 680 25 828
Share premium
11 3 070 568 2 649 302
Other paid-in capital 318 524 23 839
Total paid-in capital 3 416 772 2 698 968
Total equity
14 3 416 772 2 698 968
LIABILITIES
Non-current liabilities
Interest-bearing loans and borrowings
4 568 744 -
Total other non-current liabilities
4 568 744 -
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | FINANCIAL STATEMENTS PARENT COMPANYFINANCIAL STATEMENTS | FINANCIAL STATEMENTS PARENT COMPANY
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
(NOK 1 000) Note 31 Dec 2023 31 Dec 2022
Current LIABILITIES
Trade payables 1 906 3 620
Trade payables to group companies
2 3 270 7 366
Public duties payable 7 002 3 651
Other current liabilities 17 758 16 387
Total non current liabilities 29 936 31 023
Total liabilities 598 680 31 023
Total equity and liabilities 4 015 452 2 729 992
Oslo, Norway, 18 March 2024
The Board of Directors of Hexagon Purus ASA
Jon Erik Engeset
Chairman of the Board
Espen Gundersen
Board Member
Martha Kold Monclair
Board Member
Rick Rashilla
Board Member
Karen Romer
Board Member
Morten Holum
President & CEO
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | FINANCIAL STATEMENTS PARENT COMPANYFINANCIAL STATEMENTS | FINANCIAL STATEMENTS PARENT COMPANY
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Cash flow statement – Parent Company
HEXAGON PURUS ASA
(NOK 1 000) Note 2023 2022
Cash flow from operating activities
Profit before tax (50 864) (8 719)
Tax paid for the period - -
Depreciation 557 513
Share-based payment expense
4 24 368 15776
Change in receivables (78 406) (8 740)
Changes in payables (5 809) 5 389
Changes in other current items 45 592 13 206
Net cash flow from operating activities (64 562) 17 424
Cash flow from investment activities
Purchase of property, plant & equipment and intangible assets - (98)
Investments in subsidiaries
8 (987 607) (565 282)
Investments in associated companies
8 (10 136) (33 738)
Loans to subsidiaries
2 (90 873) (38 535)
Loans to associates (21 707) (12 541)
Net cash flow from investing activities (1 110 324) (650 194)
(NOK 1 000) Note 2023 2022
Cash flow from financing activities
Changes in long term loans
2 800 000 -
Proceeds from issues of shares 500 000 600 000
Transaction costs (26 018) (6 134)
Net change in bank overdraft - -
Net cash flow from financing activities 1 273 982 593 866
Net change in cash & cash equivalents
10 99 096 (38 904)
Cash & cash equivalents at beginning of period 333 483 372 387
Cash & cash equivalents at end of period 432 579 333 483
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | FINANCIAL STATEMENTS PARENT COMPANYFINANCIAL STATEMENTS | FINANCIAL STATEMENTS PARENT COMPANY
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Notes – Parent Company
HEXAGON PURUS ASA
Note 1 Accounting principles
The annual accounts have been prepared in
accordance with the provisions of the Norwegian
Accounting Act and generally accepted accounting
principles in Norway.
Sales revenue
Revenue from services is recognized as services are
rendered.
Classification and valuation
of balance sheet items
Current assets and liabilities include items due for
payment within one year of the date of acquisition.
Other items are classified as non-current assets/
liabilities.
Current assets are valued at the lower of cost
of acquisition and fair value. Current liabilities
are recognized at nominal value on the date of
commencement.
Non-current assets are measured at the cost of
acquisition but are written down to fair value if
impairment is identified which is not considered
to be of a temporary nature. Non-current liabilities
are recognized at nominal value on the date of
commencement. Costs associated with non-current
liabilities are amortized over the duration of the loan
using the effective interest method.
Receivables
Trade and other receivables are recognized in the
balance sheet at their nominal value, following
deductions for provisions for expected losses.
Provisions for losses are made on the basis of the
individual claims.
Assets and liabilities in foreign currency
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.
Property, plant and equipment
Property, plant and equipment is recognized and
depreciated over the asset’s expected useful life.
Direct maintenance of property, plant and equip-
ment is recognized under operating expenses as it
is incurred, while overheads or improvement costs
are added to the cost price of the asset and depreci-
ated in pace with the asset’s own depreciation. If the
recoverable amount of the asset is lower than it’s
carrying amount, this is written down to its recover-
able amount. The recoverable amount is the higher
of net realizable value and value in use. Value in use
is the present value of future cash flows the asset
will generate.
Financial instruments
In addition to traditional financial instruments
such as trade receivables, trade payables and
interest-bearing liabilities, the Company also uses
forward exchange contracts to limit the Company’s
currency exposure. The effects of these instruments
are recognized as they arise.
Shares
All shares are valued at cost in the company
accounts.
Share-based payment
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 corre-
sponding increase in other paid-in capital, over the
period in which the performance 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.
Pension expenses
Pension premiums relating to defined contribution
plans are recognized as an expense as they are
incurred.
Tax
Tax expense in the income statement includes
income tax payable for the period and changes in
deferred tax. Deferred tax is calculated at 22 per
cent based on the temporary differences between
accounting and fiscal values and loss carryforwards
at the end of the financial year.
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | FINANCIAL STATEMENTS PARENT COMPANYFINANCIAL STATEMENTS | FINANCIAL STATEMENTS PARENT COMPANY
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
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 liabilities are deducted from the balance and
via amortization. Borrowing costs are expensed as
they arise.
Cash flow statement
The cash flow statement has been prepared using
the indirect method. Cash & cash equivalents
include cash and bank deposits.
Use of estimates
Preparation of the annual financial statements in
accordance with good accounting practice requires
the use of estimates and assumptions by manage-
ment 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 quantifi-
able, are expensed as incurred.
Note 2 Intra-group transactions and balances
(NOK 1 000) 2023 2022
Income
Administrative services to subsidiaries 156 855 158 606
Total 156 855 158 606
Receivables and loans - -
Loans to group companies 321 413 230 540
Trade receivables 95 414 16 975
Total 416 827 247 515
Liabilities
Liabilities to group companies - current 3 270 7 366
Total 3 270 7 366
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | FINANCIAL STATEMENTS PARENT COMPANYFINANCIAL STATEMENTS | FINANCIAL STATEMENTS PARENT COMPANY
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Note 3 Payroll, number of employees, remuneration, loans to employees etc.
Payroll costs
(NOK 1 000) 2023 2022
Wages/salaries and fees 24 763 16 827
Share-pased payments/bonuses 35 268 28 292
Employer’s contribution 7 822 5091
Contracted personnel 25 143 37723
Board remuneration 2 548 2533
Pension expense 2 347 1716
Other contributions 274 395
Total 98 165 92 577
There were 19 (12 in 2022) employees in the Company during the financial year. Some key personnel are con-
tracted from subsidiaries in the Group and presented here as contracted personnel.
(NOK 1 000)
Salaries
and fees Paid bonus
Natural
combtribu-
tions
Paid pension
premium
Value of
vested
instruments
Total
remuneration
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
2022
Executive management 18 775 9 802 338 1 363 8 513 38 791
Board of Directors 2 478 2 478
Total remuneration 21 253 9 802 338 1 363 8 513 41 269
The Chairman of the Board has no agreement relating to termination benefits. In his employment agree-
ment, the Group President has a period of notice of 6 months. He has an agreement for up to 12 months’
severance pay. The management of the Group have a target-based bonus agreement. For further details, see
Remuneration Report for Hexagon Purus ASA.
Group management participate in the Company’s general pension arrangements, which are described in note
“Pensions”.
No loans have been made, or security provided for loans, to any member of Group management, the Board or
other elected standing committees.
Group management participate in the Company's share based incentive scheme, which are described in note 4,
Share- based Payment. As of 31.12.2023 the Group President holds 131 (115) thousand shares, has 370 (234) thou-
sand provisional performance share units (PSUs) outstanding, and 73 (73) thousand restricted share units (RSUs)
outstanding.
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | FINANCIAL STATEMENTS PARENT COMPANYFINANCIAL STATEMENTS | FINANCIAL STATEMENTS PARENT COMPANY
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Shares owned by board members or related parties
2023 2022
Espen Gundersen (Chairman)
1
45 619 20 619
Jon Erik Engeset
2
199 473 60 518
Rick Rashilla 67 362 54 587
Knut Flakk
3
na 4 781 061
Karen Romer
5
na 2 334
Martha Kold Bakkevig 4 124 4 124
Jannicke Hilland
3
na 10 309
Liv Fiksdahl
4
- na
Susana Quintana-Plaza
4
- na
Hidetomo Araki
4
- na
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 Mach 2023
4
Board member from 25 May 2023
5
Board member until 25 May 2023
Shares held by key management personnel
2023 2022
Morten Holum - President and CEO 130 646 115 708
Salman Alam - CFO 8 247 8 247
Dilip Warrier - EVP Strategic Projects 8 559 -
Michael Kleschinski - EVP Light duty, Distribution & Cylinders 112 000 71 065
Todd Sloan - EVP Systems 69 759 45 787
Anne Lise Hjelseth - EVP People & Culture 41 237 41 237
Heiko Chudzick - EVP Operations 61 060 20 619
Frank Häberli - SVP Asia 60 664 60 664
Expensed auditors’ fees and comprised of the following services (not including VAT)
(NOK 1 000) 2023 2022
Statutory audit and auditing-related services 1 691 1 626
Other attestation services - -
Tax advice - -
Other non-auditing services 1 289 1 501
Total 2 980 3 127
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | FINANCIAL STATEMENTS PARENT COMPANYFINANCIAL STATEMENTS | FINANCIAL STATEMENTS PARENT COMPANY
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Note 4 Share-based payment
Programs
As of 31 December 2023, 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.
One of the three PSU programs is an executive
management investment program awarded at the
time of the Company’s listing on Euronext Growth
in 2020. Each eligible employee will at vesting
date be entitled to up to three new shares in the
Company per share invested, at no consideration,
provided he or she is still employed in the Company
at such date. The entitlement depends on fulfilment
of three criteria, one per matching share.
The two other PSU programs give eligible employ-
ees the right to receive up to twice the number
of Hexagon Purus shares as corresponds to the
number of PSUs vested on grant date, subject to
satisfaction of the applicable vesting conditions and
share price development.
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 24.8 million full
year in 2023 (NOK 15.8 million as of 31 December
2022). The unamortized fair value of all outstanding
RSUs and PSUs as of 31 December 2023 is estimated
to be NOK 42.3 million (NOK 38.0 million).
There are no cash settlement obligations.
Performance share units’ programs (PSUs)
Issued 2020 Issued 2022 Issued 2023
Opening balance, number of instruments 421 242 958 686 -
Grants - - 1 724 946
Lapsed/cancelled - - (87 123)
Closing balance 421 242 958 686 1 637 823
Fair value – at grant date (NOK) 20.83 33.99 22.57
Expiry Q1 2024 Q1 2025 Q1 2026
Restricted share units’ programs (RSUs)
Issued 2020 Issued 2022 Issued 2023
Opening balance, number of instruments 695 621 85 260 -
Grants 91 000 - 117 090
Lapsed/cancelled (47 500) (12 180) (7 806)
Closing balance 739 121 73 080 109 284
Fair value – at grant date (NOK) 27.30 27.76 22.04
Vesting period 3 years 3 years 3 years
Expiry Q1 2024 Q1 2025 Q1 2026
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | FINANCIAL STATEMENTS PARENT COMPANYFINANCIAL STATEMENTS | FINANCIAL STATEMENTS PARENT COMPANY
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Note 5 Pensions and benefit obligations
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 19 (12) employees.
The defined contribution pension plan’s contribution rates is 7 per cent 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 2 347 thousand (NOK 1 716 thousand) , excluding employer’s contributions.
Note 6 Net financial items
Finance income
(NOK 1 000) 2023 2022
Interest income from group companies 25 022 15 153
Other interest income 30 858 7 660
Other finance income (currency gains) 67 978 31 293
Total finance income 123 859 54 105
Finance expense
(NOK 1 000) 2023 2022
Interest expenses to group companies - -
Other interest expenses 69 953 4 155
Currency losses 88 093 22 214
Other finance expense 4 155 1 006
Total finance expense 162 202 27 375
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | FINANCIAL STATEMENTS PARENT COMPANYFINANCIAL STATEMENTS | FINANCIAL STATEMENTS PARENT COMPANY
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Note 7 Tax
Tax expense for the year consists of
(NOK 1 000) 2023 2022
Income tax payable - -
Change in deferred tax - -
Total tax expense - -
Calculation of tax base for the year
(NOK 1 000) 2023 2022
Profit before tax (50 864) (8 719)
Permanent differences 24 700 36 308
Change in temporary differences (5 000) 1 449
Change in loss carryforwards 31 164 (29 037)
Tax base for the year - -
Overview of temporary differences
(NOK 1 000) 2023 2022
Receivables
Non-current assets (307) (15)
Provisions 2 087 (3 205)
Pensions
Loss carryforwards (135 680) (104 516)
Deferred tax asset not recognised in statement of financial position 133 900 107 736
Total - -
Deferred tax 22% - -
Note 8 Shares in subsidiaries and associates
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% 30
Hexagon Purus Maritime AS Ålesund, Norway 100% 100% 29 000
Hexgon Purus Germany Holding Gmbh Herford, Germany 100% 100% 1 972 315
Hexagon Purus NA Holding Inc. USA 100% 100% 935 883
Total 3 075 258
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 30 29 000 1 972 315 935 883
Equity at 31 December 2023 70 370 (9 602) 8 890 693 638 984 301
Profit 2023 (12 035) (8 753) (10 388) (378 067) -
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | FINANCIAL STATEMENTS PARENT COMPANYFINANCIAL STATEMENTS | FINANCIAL STATEMENTS PARENT COMPANY
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Joint ventures and associates
(NOK 1 000)
Registered
office
Ownership
share
Voting
share
Carrying
amount
Norwegian Hydrogen AS Norway 12.7% 12.7% 21 016
Cryoshelter LH2 GmbH Dobl-Zwaring, Austria 40% 40% 33 738
On 1 August 2022, Hexagon Purus made a EUR 3.4 (NOK 34) 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.
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 31.12.2023 (29 049)
Profit 2023 (20 826)
Note 9 Non-current loans
(NOK 1 000) 2023 2022
Due for payment after 1 year - -
Loans to group companies 304 785 230 540
Loans to associated companies
1
32 427 12 541
Total 337 212 243 081
1
Loan to Cryoshelter LH2 GmbH
Note 10 Bank deposits
(NOK 1 000) 2023 2022
Restricted tax withholdings 3 208 1 244
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | FINANCIAL STATEMENTS PARENT COMPANYFINANCIAL STATEMENTS | FINANCIAL STATEMENTS PARENT COMPANY
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Note 11 Share capital and shareholder information
Share capital consists of
(Amounts in NOK) Number Nominal
Carrying
amount
A shares 276 797 456 0.10 27 679 746
The Company's share capital consists of one class of shares and is fully paid-up.
20 Largest shareholders as of 31 December 2023
Number of shares Shareholding
HEXAGON COMPOSITES ASA 106 303 905 38.40%
CLEARSTREAM BANKING S.A. 37 583 055 13.58%
MITSUI & CO LTD 20 934 815 7.56%
FLAKK COMPOSITES AS 10 268 728 3.71%
MP PENSJON PK 8 589 094 3.10%
The Bank of New York Mellon SA/NV 5 469 001 1.98%
Citibank Europe plc 5 418 303 1.96%
DNB Markets Aksjehandel/-analyse 5 089 052 1.84%
Deutsche Bank Aktiengesellschaft 4 542 152 1.64%
DANSKE BANK 3 579 483 1.29%
J.P. MORGAN SECURITIES PLC 3 308 845 1.20%
BRØDR. BØCKMANN AS 2 688 996 0.97%
Nordnet Bank AB 2 088 067 0.75%
The Bank of New York Mellon SA/NV 2 057 142 0.74%
BNP Paribas 2 005 485 0.72%
VERDIPAPIRFONDET STOREBRAND NORGE 1 982 538 0.72%
NØDINGEN AS 1 727 673 0.62%
UBS Switzerland AG 1 602 336 0.58%
BNP Paribas 1 479 814 0.53%
CACEIS Investor Services Bank S.A. 1 431 472 0.52%
Total 20 largest shareholders 228 149 956 82.42%
Remainder 48 647 500 17.58%
Total 276 797 456 100.00%
The total number of shareholders as of 31.12.2023 was 6 598 of whom 267 were foreign shareholders. The number
of shares held by foreign shareholders was 113 127 230 or 40.8 per cent.
The Board proposes to the general assembly that there will be no dividend to be paid for the fiscal year 2023.
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | FINANCIAL STATEMENTS PARENT COMPANYFINANCIAL STATEMENTS | FINANCIAL STATEMENTS PARENT COMPANY
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Note 12 Financial market risk
The Company’s international activities expose it to currency risk and interest risk. Derivative financial instruments
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 Conpany 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 18 of the consolidated financial statements.
Note 13 Events after the balance sheet date
Opened new hydrogen infrastructure and systems manufacturing hub in Weeze, Germany, which significantly
increases production capacity for hydrogen infrastructure solutions. The manufacturing hub opened in January
2024.
On 20 December 2023, the Group announced the completion of a private placement of Convertible Bonds,
raising total gross proceeds of approximately NOK 1 000 million (the “Convertible Bonds”). The Convertible
Bonds are structured as a 5-year senior unsecured convertible bond with a 10 per cent fixed interest rate payable
semi-annually in kind (i.e. through issuance of additional bonds). The conversion price per common share in
the Company for the Convertible Bonds has been set to NOK 12.61, which is a 25 per cent premium to the vol-
ume-weighted average price of the Hexagon Purus share on the Oslo Stock Exchange over the 45 trading days
up to and including 20 December 2023. The raise of the Convertible Bond was approved on an extraordinary
general meeting on 11 January 2024, and the Convertible Bond was issued on 1 February 2024.
There have not been any other significant events after the balance sheet date that have not been previously
disclosed in this report.
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | FINANCIAL STATEMENTS PARENT COMPANYFINANCIAL STATEMENTS | FINANCIAL STATEMENTS PARENT COMPANY
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Note 14 Equity
(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
(NOK 1 000)
Issued
capital
Share
premium
Other paid
in capital
Total
equity
Equity as of 01.01.2022 23 353 2 066 629 8 063 2 098 046
Profit/loss for the year (8 719) (8 719)
Share-based payments 15 776 15 776
Share capital increase 2 474 597 526 600 000
Transaction costs (6 134) (6 134)
Equity at 31.12.2022 25 827 2 649 302 23 839 2 698 969
On 15 February 2022 related to a private placement the company issued 24 742 268 new shares at a price per share
of NOK 24.25. The Company raised approximately NOK 600 million in gross proceeds.
On 1 March 2023, the Company issued 18 518 519 new shares in a private placement at the price of 27.00 per share.
The Company raised approximately NOK 500 million in gross proceeds.
In March 2023, Hexagon Purus ASA issued a 5-year unsecured convertible bond of NOK 800 000 000 with 6 per
cent fixed interest rate 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. The convertible bond is a compound financial instrument which
contains an equity component and a debt component. Upon initial recognition, the debt component is calcu-
lated 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 of the debt component of NOK 521.648 million. The equity component
equals the residual difference between the fair value of the convertible bond at issuance of NOK 800.000 million
and the fair value of the debt component and amounts thus to NOK 278.352 million. Transaction costs related to
the bond issue amounted to NOK 23.091 million and have been capitalized pro rata between the debt and equity
component.
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | FINANCIAL STATEMENTS PARENT COMPANYFINANCIAL STATEMENTS | FINANCIAL STATEMENTS PARENT COMPANY
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Statsautoriserte revisorer
Ernst & Young AS
Stortorvet 7, 0155 Oslo
Postboks 1156 Sentrum, 0107 Oslo
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Medlemmer av Den norske Revisorforening
A member firm of Ernst & Young Global Limited
INDEPENDENT AUDITOR'S REPORT
To the Annual Shareholders' Meeting of Hexagon Purus ASA
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 and the consolidated
financial statements of the Company and its subsidiaries (the Group). The financial statements of the Company comprise the balance sheet as at 31
December 2023 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. The consolidated financial statements of the Group comprise the statement of financial position as at 31 December 2023, 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 legal requirements,
the financial statements give a true and fair view of the financial position of the Company as at 31 December 2023 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,
the consolidated financial statements give a true and fair view of the financial position of the Group as at 31 December 2023 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
Professional Accountants (including International Independence Standards) (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.
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | AUDITOR’S REPORTFINANCIAL STATEMENTS | AUDITOR’S REPORT
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
2
Independent auditor's report - Hexagon Purus ASA 2023
A member firm of Ernst & Young Global Limited
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 six 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 2023. 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. For each matter below, our description of how our audit addressed the matter is provided in that context.
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the financial statements section of our report, including in relation to
these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the
financial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit
opinion on the financial statements.
Goodwill - Impairment assessment
Basis for the key audit matter
Hexagon Purus reported goodwill of NOK 560 million as of 31 December
2023, approximately 15% of total assets. The goodwill relates to a single
cash generating unit and is subject to annual impairment testing. Estimating
the recoverable amount requires management judgement including estimates
of future sales, margins, growth rates, working capital, capital expenditures
and discount rates. Management’s annual impairment assessment is a key
audit matter because the assessment requires significant judgment and
includes estimation uncertainties.
Our audit response
We assessed the internal controls related to the impairment assessment and
evaluated the appropriateness of the applied valuation methodology. We
evaluated the applied assumptions based on development in the market and
information from internal and external data sources. We compared the cash-
flow projections to board approved budgets and considered the accuracy of
management’s prior year estimates. Furthermore, 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
tested the mathematically accuracy of the impairment model and performed
sensitivity analysis for the key assumptions. Finally, we assessed the
disclosures in note 3 and 8 in the financial statements
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | AUDITOR’S REPORTFINANCIAL STATEMENTS | AUDITOR’S REPORT
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
3
Independent auditor's report - Hexagon Purus ASA 2023
A member firm of Ernst & Young Global Limited
Other information
Other information consists of the information included in the annual report other than the financial statements and our auditor’s report thereon. Management (the
board of directors and the President & CEO) is responsible for the other information. Our opinion on the financial statements does not cover the other information,
and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information, and, in doing so, consider whether the board of
directors’ report, the statement on corporate governance and the statement on corporate social responsibility contain the information required by applicable legal
requirements and whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise
appears to be materially misstated. If, based on the work we have performed, we conclude that the other information is materially inconsistent with the financial
statements, there is a material misstatement in this other information or that the information required by applicable legal requirements is not included in the board
of directors’ report, the statement on corporate governance or the statement on corporate social responsibility, we are required to report that fact.
We have nothing to report in this regard, and in our opinion, the board of directors’ report, the statement on corporate governance and the statement on corporate
social responsibility are consistent with the financial statements and contain the information required by applicable legal requirements.
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.
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.
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | AUDITOR’S REPORTFINANCIAL STATEMENTS | AUDITOR’S REPORT
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
4
Independent auditor's report - Hexagon Purus ASA 2023
A member firm of Ernst & Young Global Limited
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepticism 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.
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.
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | AUDITOR’S REPORTFINANCIAL STATEMENTS | AUDITOR’S REPORT
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
5
Independent auditor's report - Hexagon Purus ASA 2023
A member firm of Ernst & Young Global Limited
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-2023-12-31-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 (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
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.
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | AUDITOR’S REPORTFINANCIAL STATEMENTS | AUDITOR’S REPORT
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
6
Independent auditor's report - Hexagon Purus ASA 2023
A member firm of Ernst & Young Global Limited
Oslo, 19 March 2024
ERNST & YOUNG AS
Erik Søreng
State Authorised Public Accountant (Norway)
FINANCIAL STATEMENTS FINANCIAL STATEMENTS | AUDITOR’S REPORTFINANCIAL STATEMENTS | AUDITOR’S REPORT
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Glossary
AIB Association of Issuing Bodies
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
ESRS European Sustainability Reporting Standards
EuCIA The European Composites Industry Association
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
LTIF Lost time incident frequency
NUES Norwegian Corporate Governance Board
NVE The Norwegian Water Resources and Energy Directorate
PDD Performance, Development and Drive
R&D Research and development
TRIF Total recordable incident frequency
UNFCCC United Nations Framework Convention on Climate
Change
APPENDIX | GLOSSARYAPPENDIX | GLOSSARY
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
APPENDIX I
EU Taxonomy Report 2023
Accounting policies
Taxonomy-eligible turnover (revenue)
Taxonomy-eligible turnover is the revenue associ-
ated 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
Note 2 concerning Basis of preparation and other
significant accounting policies in the Group
financial 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 or
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.
For Hexagon Purus’ taxonomy-aligned CapEx,
the posted figures are part of a plan to expand
Taxonomy-aligned economic activities or to allow
Taxonomy-eligible economic activities to become
Taxonomy-aligned under conditions specified in
the Delegated Act (where turnover is eligible but
not aligned).
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 operational expend-
iture related to non-capitalized costs related to
research and development, building 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-eligible 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.
For Hexagon Purus’ taxonomy-aligned OpEx,
the posted figures are part of a plan to expand
Taxonomy-aligned economic activities or to allow
Taxonomy-eligible economic activities to become
Taxonomy-aligned under conditions specified in
the Delegated Act (where turnover is eligible but
not aligned).
Hexagon Purus has a conservative approach
for both taxonomy-aligned and eligible OpEx
figures in 2023, only including OpEx related to
non-capitalized costs research and develop-
ment. Other relevant OpEx categories will be
explored throughout 2024, and historical figures
will be restated with all relevant OpEx in the EU
Taxonomy Reporting 2024.
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. These
incidents will be explored throughout 2024, and
historical figures will be restated with all relevant
turnover, CapEx, and OpEx in the EU Taxonomy
Reporting 2024.
Non-eligible activities are either classified as
Aerospace or Other, where the former is not
defined in the EU Taxonomy and the latter repre-
sents the conservative approach.
Glossary
CCM: Climate Change Mitigation
Y: Yes (taxonomy-eligible and taxonomy-aligned
with relevant environmental objective)
N: No (taxonomy-eligible but not tax-
onomy-aligned activity with the relevant
environmental objective)
N/EL: Not eligible (taxonomy-non-eligible activity
for the relevant environmental objective)
APPENDIX | EU TAXONOMYAPPENDIX | EU TAXONOMY
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Substantial Contribution Criteria Do No Significant Harm Criteria (DNSH)
Code (2)
Turnover 2023 (3)
Proportion of
turnover (4)
Climate Change
Mitigation (5)
Climate Change
Adaptation (6)
Water (7)
Pollution (8)
Circular
Economy (9)
Biodiversity and
Ecosystems (10)
Climate Change
Mitigation (11)
Climate Change
Adaptation (12)
Water (13)
Pollution (14)
Circular Economy
(15)
Biodiversity and
Ecosystems (16)
Minimum
Safeguards (17)
Aligned proportion
of total turnover
(18)
Economic Activities (1) Number MNOK % % % % % % % Y;N;N/A Y;N;N/A Y;N;N/A Y;N;N/A Y;N;N/A Y;N;N/A Y/N %
A. TAXONOMY-ELIGIBLE ACTIVITIES 89%
A.1 Turnover of environmentally sustainable activities (Taxonomy-aligned)
Manufacture of equipment for the production and use of hydrogen 3.2 - - - - - - - - N/A Y N N Y N N -
Manufacture of low carbon technologies for transport 3.3 - - - - - - - - N/A Y N N Y N N -
Manufacture of batteries 3.4 - - - - - - - - N/A Y N N Y N N -
Manufacture of other low carbon technologies 3.6 - - - - - - - - N/A Y N N Y N N -
Manufacture of automotive and mobility components 3.18 - - - - - - - - N/A Y N N Y N N -
Manufacture of rail rolling stock constituents 3.19 - - - - - - - - N/A Y N N Y N N -
Turnover of environmentally sustainable activities (A.1) - - - - - - - - N/A Y N N Y N N -
A.2 Turnover of taxonomy-eligible but not environmentally sustainable acitivities (not taxonomy-aligned activities)
Manufacture of equipment for the production and use of hydrogen 3.2 751 57%
Manufacture of low carbon technologies for transport 3.3 14 1%
Manufacture of batteries 3.4 31 2%
Manufacture of other low carbon technologies 3.6 189 14%
Manufacture of automotive and mobility components 3.18 169 13%
Manufacture of rail rolling stock constituents 3.19 26 2%
Turnover of taxonomy eligible activities (A.2) 1 181 89%
Total (A.1 + A.2) 1 181 89%
B. TAXONOMY NON-ELIGIBLE ACTIVITIES
Turnover of taxonomy non-eligible activities 139 11%
Total (A+B) 1 320 100%
APPENDIX | EU TAXONOMYAPPENDIX | EU TAXONOMY
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Substantial Contribution Criteria Do No Significant Harm Criteria (DNSH)
Code (2)
CapEx 2023 (3)
Proportion of
CapEx (4)
Climate Change
Mitigation (5)
Climate Change
Adaptation (6)
Water (7)
Pollution (8)
Circular
Economy (9)
Biodiversity and
Ecosystems (10)
Climate Change
Mitigation (11)
Climate Change
Adaptation (12)
Water (13)
Pollution (14)
Circular Economy
(15)
Biodiversity and
Ecosystems (16)
Minimum
Safeguards (17)
Aligned proportion
of CapEx (18)
Economic Activities (1) Number MNOK % % % % % % % Y;N;N/A Y;N;N/A Y;N;N/A Y;N;N/A Y;N;N/A Y;N;N/A Y/N %
A. TAXONOMY-ELIGIBLE ACTIVITIES 99%
A.1. CapEx of environmentally sustainable activities (Taxonomy-aligned)
Manufacture of equipment for the production and use of hydrogen 3.2 105 23% 100% - - - - - N/A Y Y Y Y Y Y 23%
Manufacture of low carbon technologies for transport 3.3 1 - 100% - - - - - N/A Y Y Y Y Y Y -
Manufacture of batteries 3.4 51 11% 100% - - - - - N/A Y Y Y Y Y Y 11%
Manufacture of automotive and mobility components 3.18 293 65% 100% - - - - - N/A Y Y Y Y Y Y 65%
CapEx of environmentally sustainable activities (A.1) 449 99% 99% - - - - - N/A Y Y Y Y Y Y 99%
A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned)
CapEx of Taxonomy-eligible but not environmentally sustainable
activities (not Taxonomy-aligned activities) (A.2) - -
Total (A.1 + A.2) 449 99%
B. TAXONOMY NON-ELIGIBLE ACTIVITIES
CapEx of Taxonomy-non-eligible activities 4 1%
Total (A+B) 453 100%
APPENDIX | EU TAXONOMYAPPENDIX | EU TAXONOMY
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Substantial Contribution Criteria Do No Significant Harm Criteria (DNSH)
Code (2)
OpEx 2023 (3)
Proportion of
OpEx (4)
Climate Change
Mitigation (5)
Climate Change
Adaptation (6)
Water (7)
Pollution (8)
Circular
Economy (9)
Biodiversity and
Ecosystems (10)
Climate Change
Mitigation (11)
Climate Change
Adaptation (12)
Water (13)
Pollution (14)
Circular Economy
(15)
Biodiversity and
Ecosystems (16)
Minimum
Safeguards (17)
Aligned proportion
of total turnover
(18)
Economic Activities (1) Number MNOK % % % % % % % Y;N;N/A Y;N;N/A Y;N;N/A Y;N;N/A Y;N;N/A Y;N;N/A Y/N %
A. TAXONOMY-ELIGIBLE ACTIVITIES 99%
A.1 OpEx of environmentally sustainable activities (Taxonomy-aligned)
Manufacture of batteries 3.4 4 6% 100% - - - - - N/A Y Y Y Y Y Y 6%
Manufacture of automotive and mobility components 3.18 51 73% 100% - - - - - N/A Y Y Y Y Y Y 73%
OpEx of environmentally sustainable activities (A.1) 56 79% 79% - - - - - N/A Y Y Y Y Y Y 79%
A.2 OpEx of taxonomy-eligible but not environmentally sustainable acitivities (not taxonomy-aligned activities)
Manufacture of equipment for the production and use of hydrogen 3.2 6 9%
Manufacture of low carbon technologies for transport 3.3 - -
Manufacture of batteries 3.4 1 2%
Manufacture of automotive and mobility components 3.18 6 9%
OpEx of taxonomy eligible activities (A.2) 14 20%
Total (A.1 + A.2) 69 99%
B. TAXONOMY NON-ELIGIBLE ACTIVITIES
OpEx of taxonomy non-eligible activities 1 1%
Total (A+B) 70 100%
APPENDIX | EU TAXONOMYAPPENDIX | EU TAXONOMY
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
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.
For taxonomy-aligned CapEx and OpEx, the
posted figures are part of a plan to expand
Taxonomy-aligned economic activities or to allow
Taxonomy-eligible economic activities to become
Taxonomy-aligned under conditions specified in
the Delegated Act (where turnover is eligible but
not aligned).
Substantial contribution
Climate change mitigation:
Hexagon Purus has assessed whether any of our
taxonomy-eligible activities fulfil the substantial
contribution criteria to climate change mitigation.
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
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. These activities are primarily
performed in Weeze or in Kassel.
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, and further alignment will be explored
in 2024.
For activity 3.4 Manufacture of batteries, the
manufacturing of battery packs has been
included. The relevant criteria for substantial
contribution for activity 3.4 is that the economic
activity manufactures battery packs hat 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 or Dallas
facilities.
For activity 3.6 Manufacture of other low carbon
technologies, the manufacturing of industrial
gas distribution and ground storage solutions
have been included. The relevant criteria for
substantial contribution for activity 3.6 is that
the technology is 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.
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 has been
included. The relevant criteria for substantial
contribution for activity 3.18 is that the manufac-
turing of components is essential for delivering
and improving the environmental performance
of various vehicles where tailpipe CO
2
emissions
of the vehicles are zero. This activity is primarily
performed in Kassel 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
APPENDIX | EU TAXONOMYAPPENDIX | EU TAXONOMY
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
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 (DNSH)
Climate change adaptation
We have assessed and documented how our
assets are resilient toward various current and
future chronic and acute climate hazards. We
have yet to conclude that our assets are resil-
ient 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 yet to complete environmental impact
assessments (EIAs) for all our sites to ensure that
potential impacts on water and marine resources
are avoided, mitigated, and addressed properly,
complying with the criteria set out in Appendix B
to Annex I of the Climate Delegated Act.
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.
Transition to a circular economy
All our economic activities assess the availability
of and, where feasible, adopts techniques that
support:
a. reuse and use of secondary raw materials,
and re-used components in products
manufactured
b. design for high durability, recyclability, easy
disassembly and adaptability of products
manufactured
c. waste management prioritizing recycling over
disposal in the manufacturing process
d. information on and traceability of substances
of concern throughout the life cycle of the
manufactured products
Protection and restoration of bio-
diversity and ecosystems
We have yet to complete environmental impact
assessments (EIAs) for all our sites to ensure that
potential impacts on biodiversity and ecosystems
are avoided, mitigated, and addressed properly,
complying with the criteria set out in Appendix D
to Annex I of the Climate Delegated Act.
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 are in 2024 conducting human rights due dil-
igence in line with the Norwegian Transparency
Act, using the aforementioned OECD Guidelines,
to assess human rights risks in our own opera-
tions and our supply chain.
APPENDIX | EU TAXONOMYAPPENDIX | EU TAXONOMY
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
APPENDIX II
GRI Index
Hexagon Purus has reported in accordance with the GRI Standards for the period 01.01.2023–31.12.2023.
GRI 1 Used: GRI 1: Foundation 2021
Applicable GRI Sector Standard(s): No sector guidelines apply
GRI § Description Comment Pages in report
Omitted information
& reason
Explanation to
address omission
General Disclosures 2021
2-1 Organizational details Legal name: Hexagon Purus ASA
p. 7
p. 26
2-2 Entities included in the organization’s
sustainability reporting
All fully owned entities, except for the Chinese entities
p. 47
p. 94
2-3 Reporting period, frequency and contact point "Reporting period: 01.01.2023–31.12.2023
Report is published annually together with the financial statements
Publication date: 19 March 2024
Contact point(s):
Mathias Meidell, Director Investor Relations"
p. 173
2-4 Restatements of information No restatements for 2023
p. 48
2-5 External assurance No external assurance for 2023
p. 48
2-6 Activities , value chain and other
business relationships
p. 3–5
p. 15–23
p. 50
2-7 Employees
p. 60 2-7-b) iii Not applicable as we do not have any
non-guaranteed hours employees.
APPENDIX | GRI INDEXAPPENDIX | GRI INDEX
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
GRI § Description Comment Pages in report
Omitted information
& reason
Explanation to
address omission
2-8 Workers who are not employees 2-8 Hexagon Purus currently only tracks data on
agency workers in this category. We seek to further
improve our reporting practices moving forward.
2-9 Governance structure and composition
p. 30–32
p. 45–46
2-9-vi No under-represented group in the
current Board of Directors
2-10 Nomination and selection of
highest governance body
p. 30
p. 39–43
2-11 Chair of highest governance body
p. 30
p. 39–43
p. 45–46
2-11-b) Not applicable as the Chair of the
Board is not a senior executive
2-12 Role of highest governance body in
overseeing the management of impacts
p. 31–32
2-13 Delegation of responsibility for managing impacts
p. 31–32
2-14 Role of highest governance body
in sustainability reporting
p. 49–50
2-15 Conflicts of interest
p. 30
p. 39–43
2-16 Communication of critical concerns
p. 83–84
2-17 Collective knowledge of highest governance body 2-17 Not yet part of Hexagon Purus' processes in 2023
2-18 Evaluation of performance of the
highest governance body
2-18 Not yet part of Hexagon Purus' processes in 2023
APPENDIX | GRI INDEXAPPENDIX | GRI INDEX
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
GRI § Description Comment Pages in report
Omitted information
& reason
Explanation to
address omission
2-19 Remuneration policies Hexagon Purus' Remuneration Guidelines p. 39–43, https://
s3.eu-central-1.
amazonaws.com/
hexagonpurus-
website/
Appendix-3-
Remuneration-
Guidelines.pdf
2-20 Process to determine remuneration Hexagon Purus' Remuneration Guidelines
p. 39–43, https://
s3.eu-central-1.
amazonaws.com/
hexagonpurus-
website/
Appendix-3-
Remuneration-
Guidelines.pdf
2-21 Annual compensation ratio Hexagon Purus' Remuneration Report 2023
https://
hexagonpurus.com
2-22 Statement on sustainable development strategy
p. 3–5
p. 30–35
2-23 Policy commitments Hexagon Purus Human Rights and Decent Working Conditions Policy
Hexagon Purus Supplier and Business Partner Code of Conduct
p. 82–83,
https://
hexagonpurus.
com/about/ethics-
and-compliance
2-24 Embedding policy commitments
p. 31–32 2-24-a) iii;
2-24-a) iv
New policies were updated by year-
end 2023. Both implementation and
training will be executed in 2024.
APPENDIX | GRI INDEXAPPENDIX | GRI INDEX
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
GRI § Description Comment Pages in report
Omitted information
& reason
Explanation to
address omission
2-25 Processes to remediate negative impacts Hexagon Purus Whistleblowing Policy
Hexagon Composites Code of Conduct
p. 83, https://
hexagonpurus.com/
about/ethics-and-
compliance, https://
hexagongroup.
com/sustainability/
esg-resources
2-26 Mechanisms for seeking advice and raising concerns
p. 83, https://
hexagonpurus.
com/about/ethics-
and-compliance
2-27 Compliance with laws and regulations No instances of non-compliance in 2023. This report and Annual report
2-28 Membership of associations Hydrogen Council, H2 council, European Clean Hydrogen Alliance
2-29 Approach to stakeholder engagement
p. 51
2-30 Collective bargaining agreements 2-30 Hexagon Purus does not have collective
bargaining agreements in place.
Material Topics
3-1 Process to determine material topics
p. 49–51
3-2 List of material topics
p. 49–50
APPENDIX | GRI INDEXAPPENDIX | GRI INDEX
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
SPECIFIC DISCLOSURES
GRI § Description Comment Pages in report
Omitted information
& reason
Explanation to
address omission
Responsible employer
3-3 Management of material topics
p. 52
Occupational health and safety
403-1 Occupational health and safety management system
p. 54–55
403-2 Hazard identification, risk assessment,
and incident investigation
p. 54–55, https://
hexagongroup.
com/sustainability/
esg-resources
403-3 Occupational health services
p. 54–55
403-4 Worker participation, consultation, and
communication on occupational health and safety
p. 54–55
403-5 Worker training on occupational health and safety
p. 54–55
403-6 Promotion of worker health
p. 54–55
403-7 Prevention and mitigation of occupational
health and safety impacts directly
linked by business relationships
p. 54–55
403-9 Work related injuries
p. 54–55, p. 57 403-9-c) ii No high-consequence injury in
the reporting period.
APPENDIX | GRI INDEXAPPENDIX | GRI INDEX
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
GRI § Description Comment Pages in report
Omitted information
& reason
Explanation to
address omission
Diversity and inclusion
405-1 Diversity of governance bodies and employees
p. 60 405-1-a) iii;
405-1-b) iii
We seek to improve our reporting in 2024.
Overall score on Great Places To Work survey
questions:
- 86% of respondents feel they are treated fairly
regardless of their age
- 93% of respondents feel they are treated fairly
regardless of their race or ethnic origin
- 91% of respondents feel they are treated fairly
regardless of their gender
- 94% of respondents feel they are treated fairly
regardless of their secual orientation
- 74% of respondents believe that if they are unfairly
treated, a fair hearing will be given if they appeal
p. 58–59
Workforce development
404-2 Programs for upgrading employee skills
and transition assistance programs
p. 56 404-2-b) No such programme in 2023
Our contribution through our solutions
3-3 Management of material topics
p. 63
Clean energy solutions
APPENDIX | GRI INDEXAPPENDIX | GRI INDEX
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
GRI § Description Comment Pages in report
Omitted information
& reason
Explanation to
address omission
Minimizing our environmental footprint
3-3 Management of material topics
p. 67
Greenhouse gas emissions
302-1 Energy consumption within the organization
p. 73
305-1 Direct (Scope 1) GHG emissions
p. 73 305-1-d) Base year not applicable. We expect to
have a complete GHG inventory in 2024 for
both 2023 and 2024, which can ultimately
act as the base year going forward.
305-2 Energy indirect (Scope 2) GHG emissions
p. 73 305-2-d) base year
not applicable.
305-3 Other indirect (Scope 3) GHG emissions
p. 73 305-3-c) not
relevant, 305-3-e)
base year not
applicable.
Material waste and circularity
301-1 Materials used by weight or volume In 2023, we sourced 2 005 metric tons of key materials
to produce our products, of which 0% were made from
renewable materials. Non-renewable materials mainly include
carbon fiber, plastics, resin, metal parts, and batteries.
p. 71 Packaging materials are not yet tracked. We aim to
systematically measure these for future reporting.
301-2 Recycled input materials used Percentage of recycled input materials used
is 0% based on the available data.
p. 71 We aim to systematically measure
these for future reporting.
306-1 Waste generation and significant
waste-related impacts
p. 68
306-2 Management of significant waste-related impacts
p. 68, p. 71–72
306-3 Waste generated
p. 72
APPENDIX | GRI INDEXAPPENDIX | GRI INDEX
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
GRI § Description Comment Pages in report
Omitted information
& reason
Explanation to
address omission
Product safety and compliance
3-3 Management of material topics
p. 75
Continuous product safety improvements
416-1 Assessment of the health and safety impacts
of product and service categories
p. 78
416-2 Incidents of non-compliance concerning the health
and safety impacts of products and services
No known non-compliance with regulations
and/or voluntary codes in 2023.
Governance
3-3 Management of material topics
p. 80
Business ethics and anti-corruption
205-3 Confirmed incidents of corruption and actions taken No known confirmed incidents of corruption in 2023
Responsible procurement
308-1 New suppliers that were screened
using environmental criteria
p. 84 308-1-a) Figures are presented in absolute units due
to data availability. We are in the process of
updating our supplier management program.
308-2 Negative environmental impacts in the
supply chain and actions taken
308-2 We are in the process of updating our
supplier management program.
414-1 New suppliers that were screened using social criteria
p. 84 414-1-a) Figures are presented in absolute units due
to data availability. We are in the process of
updating our supplier management program.
414-2 Negative social impacts in the supply
chain and actions taken
414-2 We are in the process of updating our
supplier management program.
APPENDIX | GRI INDEXAPPENDIX | GRI INDEX
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
APPENDIX III
Methodology for GHG Accounting – Summary Description
The reported metric tons of CO
2
equivalents (tCO
2
e) 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 following table.
Figures are presented with Hexagon Purus operating as a stand-alone entity in 2023. We expect to have a complete GHG inventory in 2024 for both 2023 and 2024,
which can ultimately act as the base year going forward. Consolidation approach follows our financial consolidation approach.
Method description by scope and category
Scope Method description
Scope 1 Direct emissions Emissions are calculated 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. Emissions by the company-leased and -owned vehicles
are excluded due to data availability. No direct biogenic emission is generated in 2023.
Scope 2 Energy indirect emissions The product of the purchased electricity
2
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: AIB
3
(Germany), eGrid
4
(US), UNFCCC
5
(Canada), and the Norwegian Water Resources and Energy Directorate
(NVE)
6
(Norway). Market-based emission factors used: AIB (Germany), Green-e
7
(US), Environment and Climate Change Canada (Canada) and NVE
9
(Norway).
Scope 3 Category 1
Purchased goods and services
For 2023 only the selected key purchased input materials are considered for calculating
emissions of this category due to data limitations. We have taken a conservative approach and
applied an average-data method based on material mass. The materials’ emission factors
are obtained via two sources: EuCIA
1
(carbon fiber and epoxy resin), ecoinvent database v3.9
with references to the IPCC AR5 GWP100 (plastics, metals, battery cell, and solvents etc.)
1
The European Composites Industry Association (EuCIA), “Eco Impact Calculator for Composites v 1.1.1,” October 2023,
https://ecocalculator.eucia.eu.
APPENDIX | METHODOLOGY FOR GHG ACCOUNTINGAPPENDIX | METHODOLOGY FOR GHG ACCOUNTING
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Scope Method description
Category 2
Capital goods
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 2019 data for average purchases for each category in Norway, with update from
2022, from the Norwegian Agency for Public and Financial Management (DFØ).
10
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.
Category 4
Upstream transportation and distribution
This category is not yet estimated for 2023.
Category 5
Waste generated in operations
Waste-type-specific method is applied. Emissions from waste sent to landfill, incinerated, and
recycled are calculated by multiplying the quantity of waste treated and the emission factors
from DEFRA,
11
except for carbon fiber recycling for which a specific conversion factor by Kawajiri
and Kobayashi
12
is adopted. Estimating the emissions from other professional waste treatment
methods relies on ecoinvent v3.9, with references to the IPCC AR5 GWP100. Emissions from
the unknown waste disposal method are approximated by inert waste disposal activities.
Category 6
Business travel
Only the emissions arising from business air travel are accounted for in this category in 2023. A
combination of distance-based and spend-based approach is used. 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
13
emission factors capturing non-CO
2
radiative
forcing. For the U.S. and Canada, the emissions are calculated using the spend-based emission
factors obtained from our Norway travel data. For simplicity the differences among business and
economy classes are not considered due to data limitations.
Category 7
Employee commuting
This category is not yet estimated for 2023.
Category 8
Upstream leased assets
This category is not yet estimated for 2023.
Category 9
Downstream transportation and distribution
This category is not yet estimated for 2023.
Category 10
Processing of sold products
This category is not yet estimated for 2023.
APPENDIX | METHODOLOGY FOR GHG ACCOUNTINGAPPENDIX | METHODOLOGY FOR GHG ACCOUNTING
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
Scope Method description
Category 11
Use of sold products
This category is not yet estimated for 2023.
Category 12
End-of-life treatment of sold products
This category is not yet estimated for 2023.
Category 13
Downstream leased assets
Not applicable.
Category 14
Franchises
Not applicable.
Category 15
Investment
This category is not yet estimated for 2023.
Limitations of data aggregation
The following data is not captured in the GHG account 2023.
• Fuel consumption by company leased and/or owned vehicles;
• Kassel: the fuel consumption and the amount of waste generated from operational activities prior to the site relocation in August 2023; and
• Ontario: fuel consumption data.
1
UK Government, “Government Conversion Factors for Company Reporting of Greenhouse Gas Emissions,” June 2023, https://www.gov.uk/
government/collections/government-conversion-factors-for-company-reporting.
2
Before relocating to the new Kassel site, Hexagon Purus shared the same facility with Hexagon Agility in Kassel from January to July 2023.
The electricity consumption by Hexagon Purus during this period is approximated by assuming 50% share given the integrated premise and
operation activities.
3
AIB, “2021 European Residual Mix - Results of the Calculation of Residual Mixes for the Calendar Year 2021 (Version 1.0, 2022-05-31),” 2022,
https://www.aib-net.org/facts/european-residual-mix/2021.
4
US EPA, “United States EPA eGrid Database 2020 Factors,” January 2022, https://www.epa.gov/egrid/historical-egrid-data.
5
UNFCCC, “National Inventory Submissions 2021,” April 15, 2021, https://unfccc.int/ghg-inventories-annex-i-parties/2021.
6
the Norwegian Water Resources and Energy Directorate (NVE), “Hvor Kommer Strømmen Fra?,” 2022, https://www.nve.no/energi/energisystem/
kraftproduksjon/hvor-kommer-stroemmen-fra/.
7
Green-e, “2022 Green-E® Residual Mix Emissions Rates (2020 Data),” 2022, https://www.green-e.org/2022-residual-mix.
8
Environment and Climate Change Canada, “Canada Emission Factors and Reference Values Version 1.1,” June 2023, 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.
9
NVE, “Varedeklarasjon for Strømleverandører,” 2022, https://www.nve.no/energi/virkemidler/
opprinnelsesgarantier-og-varedeklarasjon-for-stroemleverandoerer/varedeklarasjon-for-stroemleverandoerer/.
10
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#anchorTOC_Bruk_av_dataene_1.
11
UK Government, “Government Conversion Factors for Company Reporting of Greenhouse Gas Emissions.”
12
Kotaro Kawajiri and Michio Kobayashi, “Cradle-to-Gate Life Cycle Assessment of Recycling Processes for Carbon Fibers: A Case Study of Ex-Ante
Life Cycle Assessment for Commercially Feasible Pyrolysis and Solvolysis Approaches,” Journal of Cleaner Production 378 (December 2022):
134581, https://doi.org/10.1016/j.jclepro.2022.134581.
13
UK Government, “Government Conversion Factors for Company Reporting of Greenhouse Gas Emissions.”
APPENDIX | METHODOLOGY FOR GHG ACCOUNTINGAPPENDIX | METHODOLOGY FOR GHG ACCOUNTING
Hexagon Purus ASA Annual report 2023Hexagon Purus ASA Annual report 2023
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 2024
Annual General Meeting
16 April 2024
1
st
quarter 2024
3 May 2024
2
nd
quarter and
half year report 2024
18 July 2024
3
rd
quarter 2024
5 November 2024
4
th
quarter 2024
11 February 2025
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.
APPENDIX | FINANCIAL CALENDAR
artbox.no
hexagonpurus.com