Hynion : Interim Report 1H23

Interim Report

1H 2023

Highlights 1H 2023

Hynion AS

Hynion is a company committed to reducing fossil dependence in the transportation sector mainly across Scandi- navia's largest cities, and main roads. We specialize in constructing, owning, and managing hydrogen refueling stations strategically located in urban hubs.

Leveraging our extensive experience and proprietary technology developed over decades, we also offer turnkey hydrogen station solutions. These solutions are available through project sales to stakeholders or within collaborative partnerships and co-ownership arrange- ments. Our comprehensive packages can encompass certification, operation, and service agreements.

Our overarching ambition is to make a meaningful impact on reducing fossil fuel reliance in transportation. We achieve this goal by working closely with qualified partners who share our vision and commitment to a greener future.

FIRST HALF OF 2023

After the approval of the station in Gothenburg for public refueling in December 2022 Hynion Sverige operates three stations in Sweden, Gothen- burg, Arlanda and Sandviken. In Norway the station at Høvik, Oslo, is still busy, since it is the only public station in operation in the Oslo region. The station in Porsgrunn has been made ready for operation and tested by an independant third-party inspector with good results, and will be opened very soon.

The main focus of the management has been the acceleration of the design work for the new, large stations and the planning and preparations of the sites for the establishment of these stations in Västerås, Jönköping, Gothenburg and Malmö. Hynion has been able to finalize land agreements in three places, and Malmö is under way. Building permits have been filed for Västerås and Jönköping, where the stations shall be ready for operation in January 2024. The building permit for Västerås has been approved.

Hynion is now preparing for other coming projects, hydrogen stations as well as hydrogen production plants. Cooperation with various business partners will be essential for success. Hynion is a growth company and we need financing to follow our business strategy and plans. We constantly evaluate the best finance options for the company and our shareholders.

KEY EVENTS DURING THE PERIOD

Hynion reorganizes for powerful investment in Sweden and Slavica Djuric becomes deputy CEO of Hynion AS, while remaining CEO of Hynion Sverige and IR Manager.

Hynion Sverige becomes member of an innovation cluster for BioGenGas, which is formed and managed by Energigas Sverige for a three year program. Hynion Sweden refuels a new hydrogen truck from a leading vehicle manu- facturer, powered by a hydrogen combustion engine with Westport injection system.

Hynion Sverige signs attractive land agreements in Västerås, Jönköping and Gothenburg for the new, large hydrogen stations under building by Hynion.

IMPORTANT EVENTS AFTER THE PERIOD

Hynion AS receives an order for a demo hydrogen station and begins cooperation with Hydrogen Elektriske Byggeplasser AS for the establishment. The station will be put in operation in Kristiansand, and the order includes a service contract for five years.

Hynion Sverige AB has been granted building permit for the hydrogen station to be built in Västerås.

Hynion AS and Boson Energy has signed a Letter Of Intent regarding cooperation for the joint establishment of Boson gasification plants for hydrogen production from waste co-located with hydrogen refueling stations provided by Hynion.

KEY FINANCIALS DURING THE PERIOD

Hynion Group had revenues from hydrogen sales of MNOK 2.25 in 2023 compared to MNOK 1.68 in first half of 2022.

Net profit Hynion group was negative MNOK 18.0 compared to negative MNOK 15.8 in first half of 2022.

The cash balance end of period was MNOK 31.3 compared to MNOK 21.1 at the end of first half 2022.

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Letter from the CEO

HYNION GROUP

Consolidated Income

Statement

(unaudited)

Amounts in NOK	Note	30.06.2023	30.06.2022	FY 2022
Revenue	1	2 254 109	1 682 098	4 356 290
Other operating income		0	0	16 480

Dear Shareholders,

As we reach the midpoint of 2023, I'm pleased to update you on our progress for the past half-year.

New hydrogen refueling stations

This year began with some challenges with short-term disruptions with gas deliveries and delay of spare parts for our operating hydrogen refueling stations, but we sorted it out and could focus on our projects with establishing our two new stations in Västerås and Jönköping. These stations are designed with a capacity for heavy vehicles and when they are put in operation in January next year, we will have quite a large hydrogen refueling structure in place in Sweden.

Politics and funding in our favor

The EU is pushing hard to get the member states to establish a hydrogen infra- structure. They require a hydrogen refueling station in every major city and every 200 kilometers along core routes by 2030. Several programs are partly funded by the EU, one is the Greater4H program that will constitute a hydrogen corridor with 14 stations in the STRING megaregion. We are excited to be a part of this program as we will get to establish two of these stations, one in Gothenburg and one in Malmö.

Challenges with supply and price

When the hydrogen infrastructure grows, so does the need for hydrogen production. Unfortunately, we see a lack of corresponding investment and public funding of hydrogen production plants and we risk a hydrogen shortage. Parallel to this, there is also need for a more cost-efficient production, since the hydrogen price today is dependent on the electricity price, which we all now is increased and frequently changing. To ensure a consistent hydrogen sup- ply, we are actively seeking funding for hydrogen production and forging partnerships with emerging producers.

New exciting opportunities

Opportunities have presented them- selves, which have led us to revise our business model to also include sales of hydrogen refueling stations to other hydrogen infrastructure opera- tors. We are also open to cooperation agreements or joint ventures for both hydrogen stations and hydrogen production plants to broaden the reach of hydrogen infrastructure. One example is our partnership with Hydrogen Elek- triske Byggeplasser. They have ordered a hydrogen refueling station to start a small-scale test fleet for their hydrogen

vehicles and machinery. Another example is our parthership with Boson Energy (LOI signed after the period), a cooperation that means that we together will gain control over both cost and production of hydrogen. Boson Energy gasify non-recyclable waste and then convert the resulting syngas into hydrogen. In order to be able to distribute the hydrogen to vehicles, one or more hydrogen refueling stations need to be integrated with each gasification plant.

Still the leading hydrogen retailer in Scandinavia

We are all very proud to be the leading hydrogen retailer in Scandinavia and we aim to remain an important contributor to the transition to zero-emission traffic.

Finally, I want to thank you for your support and interest in our company and hope you are as excited as I am to follow the building progress of our new stations in Västerås and Jönköping in the coming months.

Slavica Djuric

CEO Hynion

Total operating income		2 254 109	1 682 098	4 372 770
Cost of materials		-3 986 850	-3 055 525	-7 987 063
Staff costs	2, 3, 4, 5	-8 253 105	-5 356 368	-11 387 540
Depreciation of fixed assets	6, 7	-920 708	-794 417	-1 750 050
Write-down on fixed assets	6, 7	0	-504 000	-808 000
Other operating expenses	8, 9, 10	-7 323 354	-7 804 599	-11 506 939
Sum operating expenses		-20 484 017	-17 514 909	-33 439 591
Result of operations		-18 229 908	-15 832 811	-29 066 821
Other interest income		225	191	826
Other financial income		677 133	30 865	503 860
Total financial income		677 358	31 056	504 686
Other interest charge		-2 736	-662	-83
Other financial expense		-402 757	-42 536	-630 188
Total financial expenses		-405 493	-43 198	-630 270
Net financial items		271 865	-12 142	-125 584
Operating result before tax		-17 958 043	-15 844 953	-29 192 405
Tax on extraordinary result	11	0	0	0
Results of the period/year		-17 958 043	-15 844 953	-29 192 405
Transfers
Transfers to/from reserves		-17 958 043	-15 844 953	-29 192 405
Total transfers		-17 958 043	-15 844 953	-29 192 405

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HYNION GROUP

Consolidated Statement

of Financial Position

30. June 2023 (unaudited)

Amounts in NOK	Note	30.06.2023	30.06.2022	31.12.2022
ASSETS
Fixed assets
Intangible fixed assets
Concessions, patents, licenses	7	145 149	202 874	168 239
Total intangible fixed assets		145 149	202 874	168 239
Tangible fixed assets
Property under construction	6	2 217 114	0	2 217 114
Fixtures and fittings, tools	6, 16	19 817 781	20 489 017	22 389 554
Total tangible fixed assets		22 034 895	20 489 017	24 606 667
Financial fixed assets
Investments in subsidiaries	12	0	0	0
Other receivables		158 624	154 304	151 248
Total financial fixed assets		158 624	154 304	151 248
Total fixed assets		22 338 668	20 846 195	24 926 154
Current assets
Inventories		155 083	71 107	123 929
Total inventories		155 083	71 107	123 929
Receivables
Trade debtors		469 865	607 984	1 374 125
Other debtors		2 254 393	1 290 134	2 031 054
Total receivables		2 724 258	1 898 119	3 405 179
Bank and deposits	13	31 289 480	21 091 526	41 617 248
Total bank and deposits		31 289 480	21 091 526	41 617 248
Total current assets		34 168 821	23 060 752	45 146 356
TOTAL ASSETS		56 507 489	43 906 947	70 072 511

HYNION GROUP

Consolidated Statement

of Financial Position

30. June 2023 (unaudited)

Amounts in NOK	Note	30.06.2023	30.06.2022	31.12.2022
EQUITY AND LIABILITIES
Equity
Paid in capital
Share capital	14, 15	535 208	279 205	530 490
Share premium reserve	15	39 196 809	40 500 498	55 171 273
Total paid in capital		39 732 017	40 779 703	55 701 763
Retained earnings
Total equity	15	39 732 017	40 779 703	55 701 763
Liabilities
Other long-term liabilities
Other long-term liabilities	6	150 000	150 000	150 000
Total other long-term liabilities		150 000	150 000	150 000
Total long-term liabilities		150 000	150 000	150 000
Current liabilities
Trade creditors		1 765 869	1 414 599	2 062 617
Public duties payable		1 398 844	795 285	781 225
Other short-term liabilities	16	13 460 759	767 360	11 376 905
Total current liabilities		16 625 472	2 977 244	14 220 748
Total liabilities		16 775 472	3 127 244	14 370 748
TOTAL EQUITY AND LIABILITIES		56 507 489	43 906 947	70 072 511

HØVIK, September 13, 2023.
Lars Henrik Amnell	Markus Håkan Norström	Pål Midtbøen	Kurt Olof Dahlberg	Slavica Djuric
Chair (sign.)	Board member (sign.)	Board member (sign.)	Board member (sign.)	CEO (sign.)

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HYNION GROUP

Consolidated Cash​ Flow

Statement

(unaudited)

Amounts in NOK	30.06.2023	30.06.2022	31.12.2022
Cash flows from operating activities
Profit before tax	-17 958 043	-15 844 952	-29 192 405
Taxes paid in the period	0		0
Depreciation and amortization	920 708	794 417	1 750 050
Write-down	0	504 000	808 000
Change in other long-term receivables	7 376	-1 616	4 672
Change in inventories	-31 695	-25 333	-78 155
Change in trade receivables	904 260	-464 747	-1 230 888
Change in trade payables	-296 748	-1 686 253	-1 038 235
Change in other working capital headings	530 452	4 784 027	3 734 120
Net cash flows from operating activities	-15 923 691	-11 940 457	-25 242 841
Cash flows from investing activities
Investments in plant and equipment	-14 529 422	-7 431 269	-13 133 396
Plant and equipment paid for with grants	16 823 189		0
Net cash flows from investing activities	2 293 767	-7 431 269	-13 133 396
Cash flows from financing activities
Payments for short-term loans	2 701 473	-442 910	10 152 574
Payments of equity	600 683	-33 233	28 901 516
Net cash flows from financing activities	3 302 156	-476 143	39 054 090
Net change in cash and cash equivalents	-10 327 768	-19 847 869	677 853
Cash and cash equivalents at 1 Jan.	41 617 248	40 939 395	40 939 395
Cash and cash equivalents at 30 June	31 289 480	21 091 526	41 617 248

Notes to the

Condensed Consolidated

Financial Statements

CORPORATE INFORMATION

Hynion is a hydrogen fuel company where the main business is to sell hydrogen fuel through hydrogen stations owned by the company. Hynion was incorporated in 2019 and builds on legacy from Norsk Hydro, Statoil and HYOP. The company acquired two stations located in Norway from HYOP in 2019. In 2020, Hynion Sverige AB was established, and the company acquired an additional station in Gothenburg. In 2021 Hynion Sverige AB acquired a station at Stockholm Arlanda, and in February 2022 a station in Sandviken was acquired.

In July 2022 Hynion Sverige AB was granted a grant of 61.4 MSEK from the Swedish Energy Agency to be used as full financing of building two large hydrogen filling stations, one in Västerås and one in Jönköping.

In September 2022 Hynion Sverige AB was granted a grant of 2.4 MEUR (29 MSEK) from the EU to be used as part financing of building two large hydrogen filling stations within the EU program Greater4H, one in Gothenburg and one in Malmö. Hynion plans to expand the network over the next few years- aligned with the market demand.

Hynion´s headquarter is in Oslo, Norway with activities in Norway and Sweden. The shares in the company are traded at Euronext Growth, Oslo under the ticker "HYN". Organization number 922 110 611.

BASIS FOR PREPARATION

The consolidated financial statements on 30. June 2023 incorporates the financial statements of the Company and its subsidiaries which referred to combined as "the Group". The consolidated financial statements of the Group comprise of consolidated statement of income, financial position, cash flow and related notes. The consolidated statements of the Group for the date 30 June 2023 have been prepared in compliance with the Accounting Act and accounting principles generally accepted in Norway (NGAAP). The prepared half-year consolidated accounts are a complete interim account.

PRESENTATION CURRENCY AND FUNCTIONAL CURRENCY

The consolidated financial statements of the Group are expressed in NOK (Norwegian kroner). The functional currency in Hynion Sverige AB (subsidiary) is in SEK /Swedish kroner). The functional currency in the parent company Hynion AS is in NOK.

BASIS OF CONSOLIDATION

The Group's consolidated financial statements comprise the parent company and its subsidiaries as of 30 June 2023. Consolidated entities have been assessed as being controlled by the Group during the reporting period.

The conversion difference is due to difference exchange rate between SEK and NOK in the subsidiary Hynion Sverige AB.

Intercompany transactions, balances and unrealized gains or losses on transactions between Group companies eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.

The group accounts can be handed over at the company's head office in Oslo, Norway.

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