Hynion : Annual Report 2023

Annual Report

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.

	2	HYNION AS - ANNUAL REPORT 2023

Highlights 2023

YEAR 2023

This year, our main focus has been on the establishment of our next generation hydrogen stations in Sweden. We signed land agreements in Västerås and Jönköping and could break ground in Västerås in the end of the year, thanks to excellent cooperation with the City of Västerås.

Our ambition to make a meaningful impact on reducing reliance on fossil fuels in transportation extends to cooperation with other actors who share our commitment. Hence, we are happy to have accepted an order for a hydrogen refueling station from Hydrogen Elektriske Byggeplasser AS, and to have signed a Letter Of Intent with Boson Energy to provide them with hydrogen refueling stations for their gasification plants for hydrogen production.

SIGNIFICANT EVENTS DURING THE FINANCIAL YEAR

Hynion reorganized for powerful investment in Sweden and Slavica Djuric became acting CEO of Hynion AS, while remaining CEO of Hynion Sverige AB and IR Manager.

Hynion Sverige AB refueled a new hydrogen truck from a leading vehicle man- ufacturer, powered by a hydrogen combustion engine with Westport injection system.

Hynion Sverige signed an attractive land agreements in Västerås, Jönköping and Göteborg for the new, large hydrogen stations under construction by Hynion. Hynion AS received an order for a demo hydrogen refueling station and began cooperation with Hydrogen Elektriske Byggeplasser AS for the establishment. The station will be put in operation in Norway, and the order includes a service contract for five years.

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

Hynion AS and Boson Energy 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.

Hynion Sverige AB was granted building permit for the new construction of a hydrogen refueling station in the Torsvik logistics area in Jönköping.

Hynion's hydrogen refueling station in Porsgrunn was certified. Increased requirements for extra third-party inspections unfortunately takes time.

Max Lennaárd strengthened the organization as the new CEO of Hynion Sverige AB.

Construction of Hynion's hydrogen refueling station in Västerås started. First main work is ground preparations and preparations of container foundations and fire protection walls.

SIGNIFICANT EVENTS AFTER THE FINANCIAL YEAR

The Board has decided to propose Carl Christopher (Chris) Tornblom as acting chairman of the board. Chris will be immediately involved in the group's development before a formal decision at the company's annual general meeting in April.

KEY FINANCIALS

Hynion Group had revenues from hydrogen sales of MNOK 4.63 in 2023 compared to MNOK 4.16 in 2022.

Net profit Hynion group was negative MNOK 32.2 compared to negative MNOK 29.2 in 2022.

The cash balance end of period was MNOK 13.0 compared to MNOK 41.6 in 2022.

HYNION AS - ANNUAL REPORT 2023	3

Letter from the CEO

As we turn the page on another year at Hynion, I'm truly thankful for your support and dedication to making our mission of a greener future a reality. Despite the complexities of the market, we have stood strong, making significant progress in both our organizational structure and infrastructural expansion.

This year was marked by strategic developments that have been crucial in aligning our resources with our long-term goals. Launching the construction of our Västerås hydrogen refueling station highlights our commitment to driving innovation and sustainability forward.

This project is not only a milestone for us, but we're manifesting our vision for a greener future into reality, leading by example in the shift towards sustainable energy.

The building of the large hydrogen refueling stations in Västerås and Jönköping

is really the first start of a professional hydrogen infrastructure network in Sweden. The refueling capacity of each of these stations is larger than the sum of all the hydrogen stations that today are in operation in Sweden, Norway and Denmark.

In parallell to building these new sta- tions, we are maintaining the operation of our present stations in Sweden and Norway. Even if the number of vehicles still is low, we believe it is important to support all the early adopters, who have invested in their first vehicles of the future, super-clean transport. Examples of this are the two refuse trucks of Ren- ova in Göteborg, the two fuel cell buses of X-trafik in Sandviken and many cars, both company and privately owned. We have also had visits to our hydrogen refueling stations in Sweden by prototype and pre-production trucks that are out on road tests, before they are officially presented to the public.

Looking forward, we are ready to build upon these solid foundations with strategic initiatives aimed at enhancing our market position and contributing to a greener future. Together, we are forging a path that will not only benefit our shareholders but also our community and the environment. We will enter into new, exciting cooperations for this development in the near future.

Thank you for your trust and support. I am confident that, with our collective efforts, the best is yet to come.

Warm regards,

Slavica Djuric

CEO Hynion AS

	4	HYNION AS - ANNUAL REPORT 2023

HYNION AS - ANNUAL REPORT 2023

The Board of

Directors' Report 2023

OPERATIONS AND LOCATIONS	On July 13. 2022 Hynion Sverige AB was	The parent company's capital invest-
Hynion AS is a company that designs,	approved for a grant of SEK 61 400 000	ments during 2023 amounted to NOK
builds, and operate hydrogen fuel sta-	from the Swedish Energy Agency to build	15 257.
tions with and without associated pro-	two large hydrogen refueling stations,
duction plants. One main business area	one in Västerås and one in Jönköping.	The Group's liquidity reserve as of 31.
is sales of hydrogen fuel to vehicles and	These stations will be completed in the	12.2023 amounted to NOK 13 046 944.
the other is marketing and sales of turn-	fall of 2024.	Of this, NOK 817 734 is deposits for
key hydrogen refueling stations. Hynion		future obligations. Total assets at year-
will develop the station network and	COMMENTS RELATED TO	end amounted to NOK 35 778 970, com-
production facilities in the countries it is	THE FINANCIAL STATEMENTS	pared to NOK 70 072 511 last year.
established. Currently Hynion operates	The Group's revenues from hydrogen
four hydrogen stations, one in Norway	sales increased 11.43 % from NOK	The parent company's liquidity reserve
and three in Sweden.	4 156 290 last year to NOK 4 631 466	as of 31.12.2023 amounted to NOK
	in 2023. Net result in 2023 was negative	1 639 264. Of this, NOK 655 654 is depos-
The Group includes, in addition to	32 220 076, as last year, negative NOK	its for future obligations. Total assets at
Hynion AS, the following subsidiaries:	29 192 405. Building a position with	year-end amounted to NOK 52 979 879,
Hynion Sverige AB and H-of-C AS.	investment in assets and employing per-	compared to NOK 72 419 684 last year.
	sonnel are the main cost drivers in 2023
The refueling stations in Norway are located	and cost level was as expected.	TREASURY STOCK
at Høvik in Bærum, just outside Oslo, and		The company holds no Treasury stock.
Herøya in Porsgrunn. The Porsgrunn sta-	The parent company's revenues from
tion is not yet opened for the public. The	hydrogen sales decreased by 2 %	FUTURE CHALLENGES
refueling stations in Sweden are located in	from NOK 3 996 199 last year to NOK	The hydrogen fuel market is expected to
Göteborg, Stockholm (Arlanda) and Sand-	3 914 756 in 2023. Net result in 2023	grow substantially over the next years.
viken. Hynion AS and Hynion Sverige AB	was negative 20 854 137, as last year,	EU and other authorities are targeting
are selling hydrogen fuel directly to the	negative NOK 21 014 261. Maintaining	a transport sector with zero emissions
customers at the stations.	operations at the Høvik station, recon-	over the next two decades, and hydro-
	structing, as well as development of the	gen can play a vital role in this trans-
The subsidiary H-of-C is currently a spe-	subsidiary Hynion Sverige AB have been	formation. Some car manufacturers
cial purpose company that will be used	Hynion AS' main cost in 2023.	like Toyota and Hyundai have delivered
for ownership and operation of a new		hydrogen cars in the market for several
technology production plant. There will	The Group's capital investments during	years, while others are developing tech-
be a need for funding before the plant	2023 amounted to NOK 1 053 025. These	nology and making the cars ready for
can be built. So far, investments have	investments increased the Group's	the future market. New EU legislation for
been made in drawings and small-scale	capacity and possibility to increase	vehicle emissions is expected in 2025,
testing. The project is expensed in the	hydrogen sales volumes in 2024. Public	making hydrogen fuel an even more
accounts in 2023 in the form of a write-	grants have been settled against acti-	attractive option. Truck manufacturers
down of the previously carried value. The	vated purchases in the amount of SEK	are developing models and announce
write-down has been made out of cau-	19 612 040 in 2023. For further informa-	they will come to the market with hydro-
tion, as the project has been put on hold.	tion, read note 17 in the annual report.	gen models in a few years' time.

5

Hynion is planning an expansion of the station network in Scandinavia and other countries where opportunities for a faster market build-up will be present. Hynion will work in national and EU-projects like H2truck and String to take advantage of collaborations that can trigger the development and secure off-take of hydrogen fuel. Hynion will continue to build alliances with partners contributing to developing the hydrogen fuel market.

FINANCIAL RISK

OVERALL VIEW ON OBJECTIVES AND STRATEGY

The company need to finance the investments in new stations over the next few years. Hynion was listed at the Oslo Stock Exchange, Euronext growth in April 2021 to secure better access to capital. New capital was raised in December 2022. The compa- ny's current strategy is to use this financial instrument for short term expansion.

MARKET RISK

The main market risk is that the market will not build as fast as expected. Hynion will through collaboration within proj- ects, partners and authorities and other stakeholders seek to minimize risk for establishment of the hydrogen stations.

CREDIT RISK

The risk for loss on receivables from the sale of hydrogen in 2024 for Hynion AS is low. Almost every customer in 2024 pay directly with credit cards. Hynion AS had to take some major losses in 2023 and therefor stopped the possibility of filling hydrogen on credit.

LIQUIDITY RISK

The Group's liquidity is considered suf- ficient, and new investments will be aligned with current capital and new capital increases from investors. To finance the completion of the Hydrogen filling stations under constructions in Sweden and release of the final portion the public subsidiaries granted, ref note 17, the company will facilitate further debt and equity financing.

GOING CONCERN

In accordance with the Accounting Act

• 3-3a,we confirm that the financial statements have been prepared under the assumption of going concern. This assumption is based on profit forecasts for the year 2023+1 and the Group's long-term strategic forecasts. The Group's economic and financial position is sound.

ALLOCATION OF NET LOSS

The Board of Directors has proposed the net loss of the group NOK 32 219 419 to be covered by share premium reserve.

THE WORKING ENVIRONMENT AND THE EMPLOYEES

The employees have stayed healthy and there has been very limited leave of absence due to illness. No incidences or reporting of work-related accidents resulting in significant material damage or personal injury occurred during the year. The working environment is considered to be good, and efforts for improvements are made on an ongoing basis.

EQUAL OPPORTUNITIES AND DISCRIMINATION

The group employs six persons by year- end 2023, whereof one woman. The CEO of Hynion Sverige AB and the acting CEO of Hynion AS is held by a woman.

ENVIRONMENTAL REPORT

Hynions business does not produce any harmful emissions and are by its nature a business that is fully dedicated to reducing emissions through its product hydrogen fuel. Using hydrogen fuel in vehicles produces only water emis- sion, which is not harmful for the envi- ronment. The hydrogen Hynion uses is produced from water and renewable electricity, also not creating any emis- sions. At the stations, Hynion are buying certified green electricity for operating machines, heat, and lights.

The only emissions from Hynions business are the transport of hydrogen from the production plant to the stations with diesel trucks. These trucks will be replaced with hydrogen fueled trucks as soon as theses become available. How- ever, these emissions are very small compared to the savings that is achieved from use of hydrogen fuel from Hynion.

INSURANCE FOR BOARD MEMBERS AND GENERAL MANAGER

Hynion has an insurance policy from Tryg Forsikring for the board and general manager. Total sum insured NOK 1 000 000.

HØVIK, February 28, 2024.
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.)

	6	HYNION AS - ANNUAL REPORT 2023

Statement of the Board and CEO

The Board and CEO have today considered and approved the Directors' Report and Annual Financial Statements for Hynion AS as of December 31, 2023 (Annual Report 2023).

Consolidated Financial Statements have been prepared in accordance with the Accounting Act (Norway) and generally accepted accounting principles.

To the best of our knowledge:

The Annual Financial Statements for 2023 for the parent company and Group have been prepared in accordance with applicable accounting standards.

The Information in the Annual Financial Statements gives a true and fair view of the assets, liabilities, financial position and overall results as of December 31, 2023.

The Directors' Report gives a true and fair view of:

• The development, result and position of the Group and parent company.
• The principal risks and uncertainties faced by the Group and the company.

HØVIK, February 28, 2024.
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.)

HYNION AS - ANNUAL REPORT 2023	7

	8	HYNION AS - ANNUAL REPORT 2023

Consolidated

Income Statement

Parent Company				Group
2023	2022	Amounts in NOK	Note	2023	2022
3 914 756	3 996 199	Revenue	1		4 631 467	4 156 290
245	216 480	Other operating income			245	216 480
3 915 001	4 212 679	Total operating income			4 631 712	4 372 770
-5 568 152	-7 594 511	Cost of materials			-6 640 004	-7 987 063
-7 071 122	-7 014 872	Staff costs	2,3,4,5		-12 946 806	-11 387 540
-1 420 628	-1 368 051	Depreciation of fixed assets	6,7		-1 867 168	-1 750 050
-3 827 114	-808 000	Write-down on fixed assets	6		-3 827 114	-808 000
-7 706 587	-8 263 182	Other operating expenses	8,9,10		-11 766 203	-11 506 939
-25 593 602	-25 048 615	Total operating expenses			-37 047 294	-33 439 592
-21 678 601	-20 835 936	Result of operations			-32 415 582	-29 066 822
175 788	826	Other interest income			5 838	826
663 836	405 913	Other financial income			663 836	503 860
839 624	406 739	Total financial income			669 674	504 686
-457	-83	Other interest charge			-14 027	-83
-14 703	-584 982	Other financial expense			-460 141	-630 187
-15 160	-585 064	Total financial expenses			-474 168	-630 270
824 464	-178 325	Net financial items			195 506	-125 584
-20 854 137	-21 014 261	Operating result before tax			-32 220 076	-29 192 405
		Tax on extraordinary result	11
-20 854 137	-21 014 261	Results of the period/year			-32 220 076	-29 192 405
-20 854 137	-21 014 261	Transfers to/from reserves			-32 220 076	-29 192 405
-20 854 137	-21 014 261	Total transfers			-32 220 076	-29 192 405

HYNION AS - ANNUAL REPORT 2023	9

Consolidated Statement

of Financial Position

as of 31 December

Parent Company				Group
2023	2022	Amounts in NOK	Note	2023	2022
		ASSETS
		Fixed assets
		Intangible fixed assets
122 059	168 239	Concessions, patents, licenses	7		122 059	168 239
122 059	168 239	Total intangible fixed assets			122 059	168 239
		Tangible fixed assets
0	2 217 113	Property under construction	6		0	2 217 114
7 156 606	10 125 797	Property, plant and equipment	6		16 888 091	22 389 553
7 156 606	12 342 910	Total tangible fixed assets			16 888 091	24 606 667
		Financial fixed assets
39 888 894	39 888 894	Investments in subsidiaries	12
0	0	Other receivables	13		162 080	151 248
39 888 894	39 888 894	Total financial fixed assets			162 080	151 248
47 167 559	52 400 043	Total fixed assets			17 172 230	24 926 154
		Current assets
75 208	87 318	Inventories			1 785 789	123 929
75 208	87 318	Total inventories			1 785 789	123 929
		Receivables
2 139 844	1 620 584	Trade debtors			2 599 939	1 374 125
218 828	1 414 338	Other debtors			1 174 067	2 031 054
1 739 174	11 636 940	Group debtors	14		0	0
4 097 847	14 671 862	Total receivables			3 774 006	3 405 179
1 639 264	5 260 460	Bank and deposits	6,13		13 046 944	41 617 248
1 639 264	5 260 460	Total bank and deposits			13 046 944	41 617 248
5 812 319	20 019 640	Total current assets			18 606 740	45 146 356
52 979 879	72 419 684	TOTAL ASSETS			35 778 970	70 072 511

	10	HYNION AS - ANNUAL REPORT 2023