Hi, and welcome to Hexagon Purus' Q3 2026 presentation. My name is Mathias Meidell, and I will be moderating from the studio in Oslo.

As usual, I'm also joined by Group CEO, Morten Holum, and Group CFO, Salman Alam. The agenda for today includes the highlights from the quarter, company update, the financials, and the outlook.

We will end the presentation with a Q&A session, please feel free to enter your question via the function on your screen. With that, I'll pass the word over to you, Morten, who will take us through the highlights of the quarter.

Thank you, Mathias. Good morning, everyone.

Thanks for tuning in to our webcast this morning. Key developments in the second quarter: Number one, revenue remained broadly stable compared to last quarter.

Number two, cost base has been substantially reduced. The annualized cost base in Q3 is around 50% lower than in 2024, which shows that the targeted cost cuts have been delivered.

Finally, number three, the order book visibility for 2027 has improved and is now more or less in line with where we were at this point last year. Let's look at it in a bit more detail.

Starting with revenue on the left, revenue in the third quarter was 150 million NOK. We had a positive working capital true-up of 7 million NOK related to the US divestment.

Excluding that, underlying revenue in Q3 was 143 million NOK, which is down 20% year-over-year on a comparable basis. We had expected higher revenue in Q3, but had some deliveries pushed into Q4 partly related to customer scheduling and partly related to supply chain.

EBITDA on the right was -83 million NOK in Q3 compared to -116 million NOK in Q3 last year. This is somewhat better than last year despite 20% lower revenue, which is mainly driven by the substantial reduction in fixed costs.

Looking at revenue composition, the revenue mix shifted a bit in the third quarter. Largest revenue share in Q3 was hydrogen infrastructure with almost 30% of the total.

This is still our largest product area, but we had significantly higher share of revenue coming from battery mobility in Q3 this year, 24% of total revenue up from 7% in Q3 last year. The year-over-year revenue bridge is putting things on a like-for-like basis by excluding the effects of the divested US business.

With that exclusion, revenue in Q3 was 20% lower than last year. Hydrogen infrastructure down 45%, which is a pure volume effect, and hydrogen mobility was also down by 44%, where lower volume in transit bus was only partly offset by higher volume in rail applications.

We delivered the storage systems to Stadler's hydrogen train in California now in Q3. On the positive side, we had strong revenue growth in battery mobility following deliveries of eight vehicles to Hino in Q3, and we expect activity to remain high also in Q4.

We have truck deliveries to Hino and deliveries of hydrogen storage systems and battery systems to Toyota North America. In other applications, there were limited changes.

A bit lower activity from industrial gas and a bit higher revenue from maritime. The order book remains broadly stable from last quarter, but the visibility for 2027 has improved.

Hydrogen infrastructure accounts for largest share of the order book, 55%, while hydrogen mobility accounts for 17%. We have good visibility for battery mobility for the remainder of 2026, but limited visibility going into 2027.

With an increased number of trucks now in customer demo programs and good feedback from customers, we're working on converting that interest into firm orders. As of Q3 '26, around 58% of the order book is for execution this year, which means we're going to have a busy quarter now in Q4, and we're also encouraged by the strong order intake for hydrogen distribution in the quarter.

As you can see on the right-hand side, 40% of the order book is for delivery in '27 compared to 15% in Q2. The order book for next year increased by almost 3x in the quarter.

The current order book will be executed on a lower cost base than the comparable quarters in 2025. The levels we're at now is not too far away from supporting positive EBITDA operations.

With good execution, the anticipated revenue in Q4 provides an opportunity to approach underlying EBITDA break-even at group level for the first time. We have made substantial changes to the size and the cost of our operations since the beginning of '25, and most of the intended structural measures are now complete.

The annualized cost base in Q3 has been cut by approximately 50% compared to 2024. This has been done partly by reducing the group's workforce by around 50%, partly by cutting other OPEX spend, and partly by undertaking structural measures, such as the US business divestment and reducing our exposure to the China JV.

These initiatives will enable us to reach EBITDA and cash break-even at significantly lower revenue. We have recalibrated the company operations to match the current market conditions.

Earlier this month, we launched HyCarrierr, our next generation distribution system for multimodal hydrogen transportation. HyCarrier builds on a strong legacy of more than 650 hydrogen distribution modules already in the field and several decades of experience with safe and secure transportation of compressed gases.

The HyCarrier marks an important step in future-proofing Hexagon Purus' hydrogen distribution offering, and we look forward to start delivering this new module to our customers, and the first units are planned to be shipped in April next year. HyCarrier features a modular setup with optimized cylinder dimensions and system design that allows for higher payload with approximately 40% less cylinders on board compared to the existing distribution system.

It's a higher payload system with capacity up to 1.3 tons of hydrogen at 380-bar working pressure, and that reduces the total cost of ownership for our customers. Compared to the existing system, the HyCarrier allows for lower material input without compromising on system capabilities and safety level.

The new cylinder design also increases the periodic inspection interval from 5 to 10 years, which reduces operational downtime and inspection costs over the system lifetime. The next-gen module also features a modular design with standardized components to simplify repairs and spare parts supply.

Finally, it's of course designed with integrated safety features building on our in-field experience from more than 650 units that we have manufactured and put into the field. This confirms our leadership position in this space and further strengthens our competitiveness.

Those were the main points for Q3. Overall, I think we had expected a higher revenue quarter, but with some deliveries pushed beyond the quarter end, we expect to make that up now in Q4, which will be a very busy quarter.

With that, I'll hand it over to our CFO to go through the financials. Salman?

Thank you. Thank you, Morten, and good morning, everyone.

Taking a step back, the the third quarter was broadly stable in terms of activity compared with the second quarter, [clears throat] and somewhat below what we had planned for for reasons Morten just described. Revenue amounted to 150 million with somewhat of a different mix than in recent quarters.

There was lower activity in hydrogen infrastructure and transit bus, but that was to some extent offset by higher activity in in battery mobility. We ended the quarter with 220 million in cash and an order backlog of 508 million.

As Morten touched on as well, the total backlog is broadly unchanged from the second quarter, but its composition has has shifted, the portion of delivery in 2027 increased significantly during the quarter. From a financial perspective, the the main feature of the quarter is the lower cost base, which is now more clearly visible in the P&L, which we'll look at in a moment.

Moving on to the P&L, [clears throat] revenue was down 40% compared from the same quarter to the same quarter last year, but that comparison quarter still includes the divested US business and the China joint venture, which was deconsolidated in the first quarter of this year. Together, they contributed 74 million of revenue in the third quarter last year.

Therefore, excluding that effect and the 7 million working capital true-up from the US sale recognized this quarter, the like-for-like decline was 20%. The underlying picture is somewhat different than than in recent quarters.

Hydrogen infrastructure and transit bus were lower while battery mobility and rail applications were were higher as we delivered made customer deliveries in the quarter. Year to date, reported revenue is NOK 701 million, up 4%.

That figure includes about 141 million of extraordinary gain from the two transactions that we announced in the first quarter. On a like-for-like basis, excluding those gains and divested revenue, year-to-date revenue is 506 million versus 515 million last year.

Bro- broadly stable revenue development year-over-year year to date, but delivered on a considerably smaller structural footprint. [clears throat] On costs, cost of materials was 84 million or 56% of revenue, which is unchanged from the second quarter of this year and up from 47% last year.

The ratio cost of materials ratio this quarter was impacted by high materials cost on the Hino truck deliveries in the BVI segment, which was mai- mainly built from higher-cost legacy inventory, and by a 5 million inventory write-down that we did in the hydro HMI segment. Payroll was 90 million against 187 million last year and 109 million underlying in the second quarter.

This is the first quarter that mostly reflects the payroll effect of the head count reductions that we've implemented to date. Other operating expenses were 59 million against 62 million last year, and includes approximately 6 million in strategic and consultancy costs related to the ongoing restructuring.

Total operating expenses therefore ended at 233 million against 368 million last year, which is a reduction of just over a third. EBITDA was -83 million against -116 million last year, which is an improvement of 33 million despite around 100 million of less revenue, and an improvement from the -102 million in the in the second quarter.

The improvement in the third quarter itself was held back by some volumes that slipped into the fourth quarter, the mix effects that I just described, and also restructuring-related costs. Year to date, EBITDA improved from -519 million last year to -184 million this year.

When we [clears throat] when we strip out the extraordinary gain, the underlying improvement is roughly 200 million or close to 40%. That's mainly the cost program then flowing through the numbers.

[clears throat] Moving below EBITDA, depreciation was 40 million in the quarter, down from 68 million, reflecting the lower asset base following the divestments that we completed earlier this year. The share of loss from associates was 6 million, which represents our minority interest in the China JV.

Finance income was 32 million, of which around 30 million is currency effects and 2 million is interest on deposits. Finance costs were 144 million, where a large majority is non-cash.

About 74 million is payment-in-kind interest on the two convertible bonds, and around 8 million is interest on lease liabilities and and other debt. The remaining 62 million is is currency effects.

Tax was immaterial as the group is not in a taxable position, and net loss for the quarter was 242 million against 365 million in the same period last year. [clears throat] Moving on to the segments.

As a reminder, HMI is our European hydrogen cylinder and systems business produced out of Kassel and and Wetzlar in Germany, together with our industrial gas activity. With the reductions implemented in Kassel and Wetzlar earlier in the year, now mo- mostly reflected in the numbers, the segment's cost base is more aligned with the demand picture we're currently seeing, and we saw periods of profitable operation at the Kassel facility during the quarter.

HMI revenue was 104 million in the quarter, down 55% as reported. Adjusting for the divested US business, which contributed 65 million in the comparison quarter, revenue declined 38% year-over-year.

Hydrogen infrastructure delivered 41 million of revenue against 75 million last year on lower hydrogen distribution volumes this quarter. A substantial volume of distribution modules is now scheduled for delivery in the latter part of the fourth quarter, especially November and and December.

Hydrogen mobility was 32 million against 94 million last year, with the prior-year figure including the US business. Transit bus accounted for 19 million against 92 million last year, where 57 million when excluding the or 57 million when excluding the divested business.

This is consistent with the muted expectations for bus that we've communicated throughout the year, and and it's in line with broadly in line with expectations. Rail applications contributed 11 million and industrial gas came in at 27 million, which is down 19% year-over-year.

EBITDA was -34 million against -47 million last year. Year to date, the underlying improvement in EBITDA is cost-driven.

The The run rate effect of the workforce reductions in Kassel and Wetzlar is now largely in the numbers, and the lower cost base and improved productivity supported periods of profitable operation at at the Kassel facility during the quarter. [clears throat] Year to date, the underlying improvement in EBITDA is is is cost-driven, and the run rate effect of the workforce reductions in in Kassel and Wetzlar is now largely in the numbers.

Moving on to the next page on on BVI, this is then our battery systems business in in Kelowna and and and and the US in Dallas. [clears throat] The main customer here for this segment is is is Hino.

And [clears throat] in the quarter, we mainly saw delivery of of of battery electric trucks to Hino. The operational focus for this segment remains the same as last quarter, executing on the truck program and the hydrogen and battery systems deliveries to Toyota within the the smaller organization established through the restructuring earlier this year.

Looking at the financials, BVI revenue was 35 million, which is up significantly compared to last year. The quarter comprised delivery of eight battery electric trucks to Hino compared with one truck in the same quarter last year, together with sublease income from the Dallas facility.

Some hydrogen and battery system deliveries to Toyota and and truck deliveries to Hino shifted from the the third to the fourth quarter, which weighed on revenue in the quarter, and adds to the volume scheduled for delivery towards year end. EBITDA was -28 million against -30 million last year, and -75 million year to date against -115 million last year.

The higher revenue did not translate into improved profitability in the quarter as the trucks delivered carried high materials cost from legacy inventory and we needed additional temporary labor to support truck builds in the quarter. Executing the substantial fourth-quarter delivery schedule while controlling production costs and cash requirements is the most important operational item for the BVI segment in the remainder of the of the year.

Moving on to the balance sheet, total assets ended the quarter at 2.6 billion, down from 2.8 billion at the end of the second quarter, which primarily reflects the net loss for the period and a working capital release. Property, plant, and equipment was 589 million, broadly stable on normal depreciation and minimal additions.

Inventory was 360 million, which is down 22 million as we continue to convert inventory into deliveries. Trade receivables were 198 million, up 18 million, mainly reflecting the higher revenue in BVI in the quarter, and cash ended at 220 million.

On the other side of the balance sheet, non-current interest-bearing debts stood at 2 billion, primarily the debt component of the two convertible bonds, which continues to grow mechanically with the payment-in-kind interest accrual. Current liabilities increased to 409 million from 380 383 million, driven by higher trade payables and by contract liabilities, which is mainly customer prepayments.

Total equity was -224 million at quarter end against 41 million at the end of the second quarter and 1.1 billion a year ago. The development reflects the loss for the period, including the accrued interest on the convertible bonds, and the group now is in a negative consolidated equity position.

We are in discussions with the company's stakeholders on a financial restructuring, including measures relating to the two outstanding convertible bonds with the objective of reducing the debt burden and and restoring positive equity. On liquidity, the measures taken over the past 2 years have substantially reduced our funding requirements.

On current forecasts, the group has sufficient liquidity to meet its obligations for at least the next 12 months. Those forecasts are obviously sensitive to volume, delivery timing, margins, customer payments, and order intake, but that's the current assessment.

Net cash flow was -88 million in the quarter, taking cash to 220 million. Operating cash flow was 67 million and consists of the operating loss in the quarter partly offset by a 64 million working capital release.

Cash flow from investing was positive 9 million, where CapEx and capitalized development together was around 4 million, which continues to be deliberately restrained, and we received 10 million from escrow release and working capital true-up related to the US divestiture from earlier this year. Financing and FX absorbed 30 million, which is lease payments of 18 million together with a negative currency effect on cash of 11 million.

With that, I'll hand the word back to Morten for the outlook.

Thank you, Salman. Let's move on to the outlook then and what we expect for the time ahead.

There are four key messages I'd like to give related to the outlook. First one, the overall market situation has not changed significantly during the quarter.

We've seen some positive signals recently, but the hydrogen market remains demanding. Order visibility continues to be a challenge for the industry, but recent data points on growth in clean hydrogen production and investments into a heavy-duty transportation ecosystem in parts of Europe are encouraging.

At the same time, high costs, infrastructure constraints, and policy uncertainty continue to weigh on the speed of market development. Number two, we have materially reduced our cost base, and alongside these cuts, management and the board are working intensively on restructuring the company's balance sheet.

We ended the third quarter with negative consolidated equity, and the current balance sheet position is not sustainable. We are in dialogue with key stakeholders on solutions to address the company's debt burden and establish a sustainable capital structure.

Number three, we enter the fourth quarter with most of the expected revenue covered by firm orders and a substantially lower cost base. The anticipated volumes provide an opportunity to approach underlying EBITDA break-even at group level for the first time, although this of course remains dependent on completing a demanding delivery schedule at expected margins.

Hydrogen distribution deliveries are concentrated in Q4, leaving limited room to absorb delays before year end. The last, number four, while we have done most of the hard work on costs, we now need to turn that into consistent break-even performance and a balance sheet that supports the business.

We will continuously assess the market conditions and adjust our operations, our cost base, and our strategic priorities as required. Our overall priorities remain unchanged.

One is revenue, executing the business that we have in our order book for Q4 and build a stronger order book for 2027. Then, on costs and liquidity, we've come a long way on costs, and that will remain a core focus topic also going forward.

We continue to manage cash carefully to ensure that we maintain sufficient liquidity. On our current plan, we expect to have sufficient liquidity coverage for at least the next 12 months ahead.

Finally, the balance sheet. We're now, as I said, working actively with stakeholders to address the convertible debt and restructuring the balance sheet to establish a stronger financial position for the years ahead.

We're actively and diligently working our way through what is a quite demanding period. We remain focused on what we can control ourselves, managing costs and our internal operation, and then we're driving the financial restructuring process forward together with stakeholders with the aim to improve the capital structure and the balance sheet.

That concludes our presentation for today, and we'll now open it up for Q&A. Mathias?

Yes. Thank you, Morten and Salman.

Let's start with the first question [clears throat] to you, Morten. "HyCarrier's first customer delivery is planned for April 2027.

Do you already have firm customer orders or binding commitments for the new system, and what revenue contribution could it realistically make in 2027?"

We already have orders. Part of the order book for 2027 is also containing the HyCarrier solution, and we have a launch customer for that and other customers as well.

Then gradually over time, we expect more and more volume to translate over to the new solution. Particularly for those customers that require the payload and have a lot of capacity that they need to move.

Gradually, we expect more and more volume to move over in that direction.

Thank you. Then another question for you as well, Morten.

"Can you confirm the current status of the type 4 cylinders certification for the Chinese domestic market? What specific steps remain, and do you still expect approval by year end 2026?"

I think we are about 80-90% of the process gone through. It might bleed into Q1, but we are very near the point now where we expect to have certification completed.

Okay. Then, this is for you as well, Morten, "The 2027 order book has increased to approximately 200 million while the total order book has declined to 508.

How much additional firm order intake do you expect to secure for 2027, and when should we see recovery in revenue?"

The position we're at now is roughly where we were last year. It's unusual for us to stand at the end of the third quarter in 1 year and have coverage for all the next year, because the time line from an order to when we actually have to execute and deliver is quite short.

I think, as I said, we're roughly where we were last year, and of course, we're going to work intensively in the coming periods to gradually shore up and firm up more of the order book for 2027.

Thank you. Then on that note, we can take a follow-up question on this topic for you, Salman.

"In the report, you state that the backlog for delivery next year is broadly comparable in terms of the following year backlog at the end of Q3 2025. However, looking at your reported order book at the end of Q3 2025 of NOK 974, 2026 accounted for 40% or NOK 390.

In the current Q3 2026 order book of 508, 2027 accounts for 40% or NOK 203. This suggests that the backlog for execution in the following year was nearly twice as large as the same point last year."

Long one. "Am I missing something here?"

[laughter] I think the order book that's being referred to for last year includes the divested revenue related to the US business which we announced earlier this year. On a like-for-like basis, if you exclude that order backlog, the backlog for execution next year is broadly similar to that of last year.

Good. Thanks.

[clears throat] And then another question for you, Salman, "What do you mean by an opportunity to approach underlying EBITDA break-even at group level? What does approach mean in this sentence?

What does underlying break-even mean, and what do you mean by group level? In other words, does it mean that you will report negative consolidated EBITDA as well in Q4 or less negative than Q3?"

I think it means that there is a real chance to approach underlying EBITDA break-even as we stated in the report, and what that means is that if you look at the underlying operations, there is a real possibility that we can get close to EBITDA break-even. Whether we get fully there or not, that's I think implicitly in the way we state, there is risk to that assumption, and so it can go both ways.

Okay. Another one, this is for you Salman as well, "You have a cost of 6 million in strategic and consultancy costs related to the restructuring.

Does this mean that you've engaged a financial advisor for the financial restructuring? If so, what time line are you working on here?"

I think as mentioned, the balance sheet restructuring is a key priority at this point in time, and we're, of course, supported by the appropriate advisors on that topic.

Okay. Some questions coming in here.

Okay. So, "For you, Salman, with the cash down to 220 million and operating cash flow of -67 million in Q3, how many months of liquidity do you currently have, and is additional capital needed before the convertible bonds mature?"

Yeah. As we stated in the report, on current estimates, we see that we have liquidity to meet our obligations for at least the next 12 months.

I think that gives an indication for the cash runway, and that's the current estimate based on what we know today. Then

another one for you, Salman. "Are you comfortable with the carrying value of your balance sheet on the PPA side or the asset side?

When did you last do an impairment test?"

This is a continuous consideration we have, and we're assessing the balance sheet values on a quarterly basis.

Thank you. I'm just checking if there's any final questions coming in here.

I think that concludes it. Thank you, Morten and Salman.

This wraps up then the question we've had received from the audience today. On behalf of Hexagon Purus, I would like to thank you all for spending time with us this morning, and we look forward to seeing you again soon.

Thank you very much from Oslo.