HEXAGON COMPOSITES ASA
Taking a key role in shaping the Fuel Cell Electric Vehicle (FCEV) industry
Mr. Knut Flakk, Chairman, Hexagon Composites
Swedbank Nordic Energy Summit, Oslo, 17.03.2016
www.hexagon.no
HEXAGON COMPOSITES
• High growth technology company manufacturing composite pressure tanks
for storage of propane, natural gas and hydrogen
• Headquartered in Ålesund, Norway with manufacturing
facilities in Norway, Brazil and the United States
• Operating income of 1,4 billion NOK (2015)
• 428 employees
• Listed on Oslo Stock Exchange (HEX.OL)
with market cap of approx. 3 billion NOK
www.hexagon.no
OUR BUSINESS UNITS
CNG Automotive
LPG Cylinders
www.hexagon.no
Mobile Pipelines™
Hydrogen
HEXAGON’S HYDROGEN STORAGE SOLUTIONS
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HEXAGON’S HYDROGEN STORAGE SOLUTIONS
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FUEL CELL ELECTRIC VEHICLES (FCEVS) HAVE A NUMBER OF
ADVANTAGES OVER BATTERY ELECTRIC VEHICLES (BEVS)
• Longer driving range (600+ km)
• Short fueling time (3-5 minutes)
• Substantially lower weight
• Maintaining high efficiency in cold climate
www.hexagon.no
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FUNDAMENTAL DRIVERS EXPECTED TO DRIVE
STRONG GROWTH FOR FUEL CELL ELECTRIC VEHICLES
Key drivers…
…barriers
Exponential sales growth
Environment
Lower
electricity cost
• Fuelling
infrastructure
• System cost
Variable renewable
energy production
• Durability
Energy security
Source: ACT Q2 2015 Update Report
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HEXAGON IS WELL POSITIONED
ACROSS THE HYDROGEN VALUE CHAIN
• Hydrogen is an essential part of the fuel mix required for the green transition
• Hexagon is currently offering composite Hydrogen tanks for a wide range of applications
• Norway will be an important arena for early advancement
Hexagon Offering
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SIGNIFICANT LIGHT-DUTY VEHICLE MARKET
POTENTIAL EVEN AT LOW ADOPTION RATES
Fuel cell vehicle tank market expected to be 4-16 bn USD in 2025*
* Hexagon Composites analysis
Market size (# of LDVs, million)
x Adoption rate 2025E
= No. of FCVs* (000')
x No. of tanks per FCV*
= no. of H2 fuel tanks (000')1
x Price per H2 fuel tank (USD)
= Market value (USDm)
1LowLow
case
Medium
Medium
case
High
High
case
109
1.0%
1,090
2
2,180
2,000
4,360
109
3.0%
3,270
2
6,540
1,750
11,445
109
5.0%
5,450
2
10,900
1,500
16,350
2
3
Assumptions
• 109 million cars sold in 2025
• ~2 cylinders per vehicle
(conservative)
• Each cylinder cost 1,5002,000 USD. Current market
price is~3,000 USD
* FCV= Fuel Cell Vehicles
16,35
Scenario: Low (1%)
Market value USD bn
Scenario: Medium (3%)
11,45
Scenario: High (5%)
7,68
5,64
0,03
0,03
0,07
0,13
0,14 0,13
0,07 0,10
0,16
17E
18E
19E
0,03 0,07
2016E
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2,77
1,36 1,69
0,67
0,33
1,35
0,79 0,75
0,37 0,42
0,17 0,23
20E
21E
22E
23E
4,36
3,60
2,43
24E
2025E
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SIGNIFICANT LIGHT-DUTY VEHICLE MARKET
POTENTIAL EVEN AT LOW ADOPTION RATES
Fuel cell vehicle tank market expected to be 4-16 bn USD in 2025*
* Hexagon Composites analysis
Market size (# of LDVs, million)
x Adoption rate 2025E
= No. of FCVs* (000')
x No. of tanks per FCV*
= no. of H2 fuel tanks (000')1
x Price per H2 fuel tank (USD)
= Market value (USDm)
1LowLow
case
Medium
Medium
case
High
High
case
109
1.0%
1,090
2
2,180
2,000
4,360
109
3.0%
3,270
2
6,540
1,750
11,445
109
5.0%
5,450
2
10,900
1,500
16,350
2
3
Assumptions
• 109 million cars sold in 2025
• ~2 cylinders per vehicle
(conservative)
• Each cylinder cost 1,5002,000 USD. Current market
price is~3,000 USD
* FCV= Fuel Cell Vehicles
16,35
Scenario: Low (1%)
Market value USD bn
Scenario: Medium (3%)
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11,45
Scenario: High (5%)
7,68
billion
USD
5,64
0,03
0,03
0,07
0,13
0,14 0,13
0,07 0,10
0,16
17E
18E
19E
0,03 0,07
2016E
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2,77
1,36 1,69
0,67
0,33
1,35
0,79 0,75
0,37 0,42
0,17 0,23
20E
21E
22E
23E
4,36
3,60
2,43
24E
2025E
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WILL HEXAGON COMPOSITES SUCCEED?
• World’s leader in filament wound high
pressure composite cylinders
• Unique position in high volume,
automated manufacturing securing
high quality and low cost
• Substantial user of high modulus
carbon fiber (#3 globally after
Boeing and Airbus)
• Strong OEM relationships
www.hexagon.no
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MITSUI & CO INVESTING IN HEXAGON
• 25% ownership
• 666 million NOK in new capital
• Strategic alliance agreement
• Hydrogen
• Automotive
• Mobile Pipeline
www.hexagon.no
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