Hexagon Composites Ord

Good morning everyone. Welcome to Hexagon Composites Q4 2024 presentation. My name is Knut Flack. I'm the chairman and the founder of Hexagon Composites and I'm very pleased to be here today and see all of you. I'd like to just take a quick step back to 2000, when we founded the company and we went public. At that point in time, we had roughly 100 million in sales, so just north of 100 million. During the first 10 years, we managed to get to 1 billion. So we made it ten times, and that was under the leadership of Erik Espeset. Then in 2013, Jon Erik Engeset took charge, and he brought the company from one billion to five billion, roughly. And I'd like to thank you and Erik for his achievements and for his strong contribution over these years. He's done a fantastic job and he finished his duty as a CEO by the end of 2024. So what you see here today is much to his honor. And then we will obviously introduce you to the next CEO. But before I do so, I'd like to mention Just two main reasons why have we succeeded in going from 100 million to 5 billion in 25 years. 50 times the size we were 25 years ago. I think the main thing is that we have stayed true to our core philosophy, which is to make the best possible products, the highest quality products, at the lowest possible cost. That has given us advantages over and above the competition. That has made it possible for us to stay ahead and to make the green shift a reality. The other thing is that we have gathered a group of fantastic people, very talented, strong people from the shop floor and all the way up to the top management. So in that context, I'm very, very pleased to welcome Philip Schramm as the new CEO of Hexagon Composites. Philip has extensive background from the automotive industry, both in Europe and in North America. And I'm certain that Philip will manage to take the company to the next level because we're not going to stop where we are today. We are definitely going to grow and go forward. So the future will tell at what rate, but I'm convinced that Philip is the right person to take charge and to lead the company into the future. So with that, Philip, welcome to Hexagon Composites. I have great expectations, as you can understand. You may not have as sexy voice as I do today, but on the other hand, I think you have the talent and the experience to make the company successful.

Thank you Knut for your kind words and also thank you to the entire board for your trust in me and good morning everyone, good morning. I'm very happy to see you all here in person and also welcome to everyone who is joining us live, dialing in to our Q4 2024 results presentation. I'm As you can imagine, I'm really honored to be here, to step in shoes and, as you said, bring Hexagon to the next level. These are exciting times. Being with Hexagon now slightly over one month, I visited our major sites. I also talked to a lot of our colleagues, got insights from our business unit leaders about the market development, the opportunities, the challenges we face. but also talk to a lot of our customers, what they think about us. And what I can tell you is that Hexagon has extremely talented individuals, we have great technology, and we have a committed client base. This sets up for success. And what I also do see is that we have a very strong heritage. Heritage in multiple dimensions. Heritage in regards to our technology. As Knut, what you said is what brought us here is strong competencies within composites. but also a heritage which dates back, which I learned now, to the start of NASA's moon mission. This is something where we are sometimes a little bit shy to share, but it's something which actually energizes a lot of our colleagues. And really tapping into what we have seen and where we are is really where I want to bring this company forward. And this is... Talking to our customers is something which is important to me. It gives us insights about where we stand and where we can go to. And what I hear is that we are the go-to persons, the go-to experts for lightweight, high-pressure cylinders and power systems in any kind of environment. And we do have a proven track record to deliver our mission successfully. And deliver our mission successfully is, what is our mission? Our mission is to drive the energy transition forward, a sustainable energy transition. And with that, what have we achieved in 2024? With our supplied units, We've enabled the avoidance of 1.84 million metric tons of CO2 equivalents, which we prevented. In other words, it's more than or around 430,000 regular combustion cars off the street with our solutions. And we have done this profitably. This sets us apart from some others out there. With an excellent team, with great technology, with an outstanding client base, we have delivered in Q4 an outstanding result. We have all-time high revenues of 1.5 billion NOC. We have delivered an EBITDA of 257 million. And all of this results in an EBITDA margin of impressive 17%. For this great achievement, I want to congratulate the entire Hexagon Composites family. It was an effort where everyone has chipped in, it was all hands on deck, and we worked together as one team to achieve that. And all business units within Hexagon delivered to that result. Mobile Pipeline, for example, had an outstanding year. Record high volumes, record high volumes or modules delivered and produced in that year. Strong demand from oil and gas, but also from helium and RNG. Our fuel systems business leveraged on its market position in North America. We supplied the most fuel. new power systems for the new X15N engine from Cummins. This sets up for growth, for success, because we prove we are the market leader also with the new engine. And what I can tell you, this engine is real. I had the pleasure two weeks ago to be in one of the trucks talking to the dealers and see what it means. It has the power, it has the torque, it has diesel-like performance, with less emissions and at a better price point. And this is what we see and this is what we hear, and this is setting us up for success. Besides the new engine, we also see high demand with refuse and with other trucking companies. For example, our partnership with UPS and WM is moving forward, or in other words, The leading packaging and document delivering company in the world and one of the most innovative refuse companies in the world are partnering with us and they are relying on our service. This will set us up for new heights to really look forward what we can achieve. But besides also the sales, we have done our job in improving our processes and becoming operational better, improve the performance, and also improving our capacity. We have a new production line for mobile pipeline in Lincoln, Nebraska, which gives us 50% more capacity and output. We have a new assembly line in Rialto, California for install of RNG and CNG fuel systems. And we established at our Salisbury, North Carolina facility a new cylinder winding line. This sets us up for growth. Allow me before I hand over to David, give you some words about what I see and what I heard from you. In contrast to some other companies out there in the space of renewable energy and energy transition, we have done our part and we have delivered at a profitable rate. Some of you have voiced their concern about the current changes in regulation and administrations. But to be honest, I don't see it. And I will come back to that later and get into the details of it. But why I don't see it, before I hand over to David, is actually RNG and CNG are there to stay. They are abundant and available. The technology which we are using is known and proven the price point and the benefit to fleet owners is given. And last but not least, we are delivering a sustainable product which benefits the environment. So it's a true triple bottom line effect which we are delivering. I will come back to this later and now I would like to hand over to David that he can guide you through our Q4 2024 result. David, please.

Thank you, Willem. Okay, so we really should dwell on Q4 2024. It was definitely a record high, both in revenue and EBITDA. And we did a 17% EBITDA margin.