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Annual report
2025
START READING →
Driving the energy
transition
We are one of the world’s leading
manufacturers of high-pressure composite
cylinders and alternative fuel systems.
Our solutions enable OEMs, fleet owners
and gas distributors to make the switch to
reliable, sustainable and affordable energy.
Over the past three decades, our
technologies have positioned us at the
forefront of the global energy transition.
GO TO CONTENTS →

Hexagon Composites ASA | Annual Report 2025 |

3 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

Contents | In brief | 3 |  | Sustainability statement | 36 |  | Financial statements | 142
Vision and values | 4 |  | General information | 37 |  | Financial statements Group | 143
Hexagon at a glance | 5 |  | Basis for preparation | 38 |  | Financial statements Parent Company | 216
Our markets | 6 |  | Governance | 40 |  | Auditor’s report | 240
Executive Management | 7 |  | Strategy | 46 |  |  |
Board of Directors | 8 |  | Interests and views of stakeholders | 49 |  |  |
|  |  | Material impacts, risks and opportunities | 56 |  |  |
Key highlights 2025 |  |  | Environmental | 63 |  |  |
|  | E1 Climate change | 64 |  | Appendix |
Highlights 2025 | 10 |  | E5 Resource use and circular economy | 81 |
Key figures | 11 |  | EU Taxonomy | 91 |  | Glossary | 245
A word from the CEO | 12 |  |  |  |  |  |
|  |  | Social information | 107 |  |  |
Board’s report |  |  | S1 Own workforce | 108 |  |  |
|  | S2 Workers in the value chain | 117 |  |  |
Board of Director’s report | 15 |  |  |  |  |  |
|  |  | Governance information | 123 |  |  |
|  |  | G1 Business conduct | 124 |  |  |
|  |  | Appendices | 129 |  |  |
|  |  | Auditor’s limited assurance report | 138 |  |  |

4 |  | CONTENTS |  |  | IN BRIEF |  | KEY HIGHLIGHTS 2025 |  | BOARD'S REPORT |  | SUSTAINABILITY STATEMENT |  | FINANCIAL STATEMENTS

Driving energy
transformation
OUR BELIEFS
We have a strong, values-based culture that fuels our
business performance. Our core values - integrity and
drive - support our behavior and our beliefs.
Driven by our vision of Clean Air Everywhere, we believe
that clean air is a right not a privilege, that technology is
no longer the barrier to enabling cleaner energy for all,
and that change is urgent.
We hold ourselves accountable for all our interactions
with our customers, suppliers and owners, our people
and the communities in which we operate.
VISION
PURPOSE
VALUES
Clean Air
Everywhere
Driving Energy
Transformation
Integrity
and Drive

Hexagon Composites ASA | Annual Report 2025 |

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Hexagon at a glance
Ålesund, Norway
Hexagon Composites ASA is headquartered in
Ålesund, Norway and listed on the Oslo Stock
Exchange.
We have a strong presence across North America
and Europe, with 872 employees dedicated to
driving the energy transition - enabling our
customers to reduce their total cost of ownership
and emissions.
Slupsk, Poland
Kelowna, Canada
Oslo, Norway
Lincoln, U.S.
Kassel, Germany
Burscheid, Germany
Rialto, U.S.
Salisbury, U.S.
Denver, U.S.
OUR PEOPLE
OUR CONTRIBUTIONS
In 2025, Hexagon Group’s solutions have enabled
the avoidance of
1 million
872
Headquarters
Offices
Employees1
metric tons of CO2 equivalent emissions2
Manufacturing facility

1 | Headcount | 2 | The Alternative Fuel life-Cycle Environmental and Economic transportation (AFLEET) tool from the Greenhouse gases, Regulated Emissions, and Energy use in Technologies (GREET®) model has been used for estimating emission reductions. For more information see appendix report methodologies and assumptions. |  |

Hexagon Composites ASA | Annual Report 2025 |

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Business
segments
Hexagon has pioneered
composite technologies for
mobility applications, evolving
from a cylinder manufacturer into
a full integrator of solutions and
services that drive the energy
transition across three segments.
MOBILE PIPELINE
Hexagon’s gas distribution solutions are
essential to alternative fuel supply chains.
Our solutions have the largest transport capacity
worldwide and enable the safe transport of
compressed (renewable) natural gas, hydrogen or
other industrial gases.
Mobile Pipeline modules provide energy solutions for
users and industries without stationary pipeline
infrastructure.
FUEL SYSTEMS
Hexagon is one of the leading global
providers of natural gas fuel systems
for commercial vehicles.
Integrating energy storage and fuel delivery
systems into commercial vehicles is one of our
key competences and our systems are installed
on heavy-duty trucks, refuse collection trucks,
buses, delivery trucks and vans.
AFTERMARKET
Hexagon is the only dedicated
aftermarket service provider for
alternative fuel systems in North
America.
Our services assist fleets and operators in
enhanced safety, higher uptime and lower total
cost of ownership and includes parts, installs,
training, cylinder testing and requalification.

Hexagon Composites ASA | Annual Report 2025 |

7 |  | CONTENTS |  |  | IN BRIEF |  | KEY HIGHLIGHTS 2025 |  | BOARD'S REPORT |  | SUSTAINABILITY STATEMENT |  | FINANCIAL STATEMENTS

Executive Management

| PHILIPP SCHRAMM |  | EIRIK LØHRE |  | ERIC BIPPUS |  | BRAD GARNER |  | HANS PETER HAVDAL |  | ASHLEY REMILLARD
Position | Chief Executive Officer | Chief Financial Officer (Interim) | Chief Commercial Officer | Chief Technology Officer |  | EVP Market Expansion |  | EVP Legal & Government Affairs and General Counsel
Experience | Philipp Schramm has served as CEO since January 2025. He has extensive experience from various senior positions at Webasto and PricewaterhouseCoopers, and as CEO and CFO of Brose. |  | Eirik Løhre has served as CFO since November 2025. He joined Hexagon in 2021 and has previously served as EVP Corporate Development. He has broad experience from corporate finance at SEB and Nordea. |  | Eric Bippus has served as CCO since January 2025. He joined Hexagon in 2016 and has decades of global sales and marketing experience in the automotive markets. Prior to joining Hexagon, he served as Executive Vice President of Sales and Marketing for Clean Diesel Technologies Inc.. |  | Brad Garner has served as CTO since October 2025, and as President of Hexagon Agility FleetCare since 2024. He joined Hexagon in 2017 and has decades of experience in the energy sector, having previously served as President of GE Heat Recovery Solutions and COO of IMPCO Technologies. |  | Hans Peter Havdal has served as EVP Market Expansion since October 2025, having served previously as COO and as a board member. Hans Peter has broad international experience in the manufacturing and automotive industries, including at Semcon International, and as CEO of Kongsberg Automotive ASA. |  | Ashley Remillard joined Hexagon in 2019 and has served in her current role since 2023. She has previously practiced law at Nossaman LLP in both transactional and litigation settings, specializing in environmental law.
Education | Ph.D. and Diploma in Business Administration from the Katholische Universitat Eichstatt- Ingolstadt, as well as the equivalent of an executive MBA from Harvard Business School. |  | Bachelor of Science in Finance from the Norwegian School of Business (BI). |  | BA degree in Management from the Walsh College of Accountancy and Business. |  | Associate Degree in Mechanical Engineering from Fanshawe College of Technology. |  | Master of Science in Mechanical Engineering from the Norwegian University of Science and Technology (NTNU). |  | Juris Doctor from the University of Southern California School of Law, and a Bachelor of Arts in Communications from the University of Southern California.
# of shares 31.12.2025 | 0 |  | 37 660 |  | 192 280 |  | 36 892 |  | 3 9001 |  | 47 880

1 Include shares owned by related parties

Hexagon Composites ASA | Annual Report 2025 |

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Board of Directors

| KNUT FLAKK |  | LIV ASTRI HOVEM |  | KO MIZUKAWA |  | EVA SAGEMO
Position | Chair | Deputy Chair | Board member | Board member
Experience | Knut Flakk is the founder of Hexagon Composites ASA and CEO of Flakk Gruppen AS. He has an extensive entrepreneurial track record having established and developed a number of companies both in Norway and internationally. Flakk has been the CEO of the Flakk Group since 1996 and holds an MSc from BI Norwegian Business School and an MBA from London Business School. |  | CEO of DNV’s Accelerator business area. Liv Astri has more than 25 years of experience within management of technical advisory and assurance services in a global setting, primarily within the maritime and oil & gas industries. Liv Astri holds a MSc in Naval Architecture and Offshore Engineering from UC Berkeley, and MSc in Civil Engineering from the Norwegian Technical University. |  | Ko Mizukawa is currently General Manager, Chemicals Business Development & Planning Dept., Chemical Div. in Mitsui & Co. Europe Ltd and is based in the United Kingdom. He brings extensive experience across climate change, energy, hydrogen and advanced composites materials. Mizukawa holds a Master of Engineering from Waseda University, Japan. |  | Eva Sagemo currently holds the position of CFO at TOMRA. Sagemo has extensive experience in auditing and controlling, including as an auditor in BDO, Consolidation & Reporting Manager in Aibel, and Chief Accountant in Fugro. Sagemo holds an Executive Master of Management with specialization in international tax law from BI Norwegian Business School and a Bachelor’s Degree in Audit from Oslo Metropolitan University
Board member since | Chair since 2000 |  | 2020 (Deputy Chair since 2025) |  | May 2025 |  | April 2024
Member of |  |  | Audit & Sustainability Committee |  |  |  | Audit & Sustainability Committee (Chair), Remuneration Committee
Independence | Second largest shareholder in Hexagon |  | Independent board member |  | Represents Mitsui & Co., Hexagon’s largest shareholder |  | Independent board member
Current board positions | Chair of Flakk Gruppen AS, Norwegian Hydrogen AS and Vireon AS. Board member of H-fasader AS, Devold of Norway AS and Geographic Hotels and Adventures AS. |  | Chair of: Dnv Imatis AS, Dnv Inspection Group AS and Dnv Inspection AS |  | Ceva Santé Animale SA, ITC Antwerp NV, Mitsui AgriScience International S.A./N.V. and MAIC EUROPE LTD |  | Akastor ASA
Meeting attendance | 100% |  | 100% |  | 78% |  | 91%
# of shares 31.12.2025 | 22 568 314 Incl. shares owned by related parties |  | - |  | 33 229 096 (Owned by Mitsui & Co) |  | -
Birth year and nationality | 1960, Norwegian |  | 1964, Norwegian |  | 1970, Japanese |  | 1975, Norwegian

Hexagon Composites ASA | Annual Report 2025 |

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Board of Directors cont.

| SAM GABBITA |  | MIMI BERDAL |  | HARALD ARNET
Position | Board member | Board member | Board member
Experience | Sam Gabbita is the co-founder and CEO of Pioneer Clean Fleet Solutions and a co- founder of Qell. Sam has held a variety of positions across financial and managerial functions within the financial services industry and has broad experience from managing sustainability focused investments. He holds a Bachelor of Economics from University of California, and an MBA from The Wharton School at the University of Pennsylvania. |  | Mimi Berdal has extensive experience within corporate strategy development, governance, and M&A. She was previously Partner at the law firm, Arntzen de Besche, and has served, among others, as a legal adviser at Total. Berdal holds a Law degree from the University of Oslo, Norway. |  | Harald Arnet is Senior Adviser and board member at the Datum Group,, where he previously served as CEO. He has more than 35 years of experience in national and international finance, industrial and financial investments. Prior to joining the Datum Group, he held management positions at former Samuel Montague & Co., HSBC and Handelsbanken, where he served as General Manager, Banking and led the Corporate Finance department in Norway. Arnet holds a BSBA from the University of Denver, US.
Board member since | April 2022 |  | May 2025 |  | May 2025
Member of | Remuneration Committee (Chair) |  | Audit & Sustainability Committee |  |
Independence | Independent board member |  | Independent board member |  | Independent board member
Current board positions | Pioneer Clean Fleet Solutions, Inc. |  | Goodtech ASA (Chair), Cavendish Hydrogen ASA, Norsk Titanium AS and Thor Medical ASA |  |
Meeting attendance | 100% |  | 89% |  | 100%
# of shares 31.12.2025 | - |  | - |  | -
Birth year and nationality | 1974, American |  | 1959, Norwegian |  | 1961, Norwegian

Hexagon Composites ASA | Annual Report 2025 |

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10 |  | CONTENTS |  |  | IN BRIEF |  | KEY HIGHLIGHTS 2025 |  | BOARD'S REPORT |  | SUSTAINABILITY STATEMENT |  | FINANCIAL STATEMENTS

Highlights 2025
Strengthened our position in Europe
In October, Hexagon completed the acquisition of SES Composites,
a leading European supplier of high-pressure cylinders and systems
for the storage and distribution of compressed gases. The
acquisition brings complementary capabilities to Hexagon and
further strengthens our position as a trusted partner to European
OEMs in the commercial transportation sector.
All-time high for the refuse segment
Renewable natural gas (RNG) has become one of the most
compelling circular‑economy success stories in the refuse industry.
Leading waste management companies are increasingly
transforming collected waste into clean RNG to power their own fleet
operations.
The growing momentum translated into an all-time high for 2025 –
underscoring Hexagon Agility’s market position and the growing
demand for reliable and low-emission CNG vehicles.
Milestone order to Mexico
Hexagon Agility secured a milestone order with Trayecto, Mexico’s
largest trucking company for its largest CNG fuel systems to 100
heavy-duty trucks. Coupled with Cummins X15N natural gas engine,
this delivers the largest hauling capacity achieved to date by
commercial CNG trucks and marked a milestone for clean trucking
in Mexico.

Hexagon Composites ASA | Annual Report 2025 |

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Key figures
REVENUE MNOK
EBITDA MNOK

REVENUES AND PROFIT | NOK million | 2025 | 2024 | 2023
Revenue | 2 955 | 4 877 | 4 526
Operating profit before depreciation (EBITDA) | 158 | 637 | 366
Operating profit (EBIT) | (150) | 370 | 146
Profit/loss before taxes from continuing operations | (1 232) | (906) | (1 016)
Profit/loss after taxes from continuing operations | (1 159) | (969) | (1 014)
Profit/loss after tax from discontinued | - | 690 | 2 123
Total profit/loss after tax | (1 159) | (279) | 1 109

CAPITAL 31.12 | NOK million | 2025 | 2024 | 2023
Total assets | 5 305 | 7 077 | 6 428
Equity | 2 645 | 3 533 | 3 214
Equity ratio1 | 49.8% | 49.9% | 50.0%

EBIT MNOK
EQUITY RATIO %

PROFITABILITY AND RATE OF RETURN | 2025 | 2024 | 2023
EBITDA margin2 |  | 5.3% | 13.1% | 8.1%
EBIT margin3 |  | (5.1%) | 7.6% | 3.2%
Return on equity4 |  | (37.5%) | (8.2%) | 32.7%
Return on assets5 |  | (18.7%) | (3.9%) | 16.0%

1 Total equity in percentage of total assets
2 Operating profit before depreciation and amortization (EBITDA) in a percentage of revenue
3 Operating profit (EBIT) in a percentage of revenue
4 Profit after tax divided by average total equity
5 Profit after tax divided by average total assets

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A word from the CEO
Navigating headwinds,
whilst positioning for
long-term growth
Dear shareholders,
2025 was a challenging year for Hexagon. The transportation and energy sectors
faced a rare convergence of headwinds: macro-economic uncertainty, tariff
volatility, regulatory ambiguity and deep freight recession in North America.
This impacted Hexagon’s results significantly, most notably our Mobile Pipeline
segment. Coming from a record year in 2024, we exited 2025 with revenues of
Our world‑leading
carbon fiber cylinder
technology continues to
give Hexagon a unique
competitive edge
NOK 3.0 billion (NOK 4.8 billion) and EBITDA of NOK 158 million (637 million).
Adjusted for one-off accounting gains and severance expenses, our EBITDA
was NOK 65 million.
Despite an ever-evolving market and headwinds, we have focused on what we
can control. Throughout the year we have taken significant measures to restore
our profitability, strengthen our strategic foundation and position Hexagon for
long-term growth.

Hexagon Composites ASA | Annual Report 2025 |

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A year defined by financial discipline
The pressures facing our markets required
significant financial discipline across the entire
organization. We have taken decisive steps to
rebalance our cost base, improve operational
efficiency and support liquidity. By year‑end, our
cost and cash optimization program delivered
NOK 200 million in personnel and SG&A costs
savings, alongside material cash flow
improvements in working‑capital and CapEx
reduction. In sum, these actions have lowered our
structural EBITDA breakeven point.
Strengthening our strategic foundation
We delivered meaningful strategic progress in
2025. Acquiring SES Composites strengthened
our European footprint and solidified our
position as the leading supplier of natural‑gas
fuel systems in Europe. We also continued
expanding our presence in key global markets.
The adoption of Type 4 composite cylinders for
natural gas is accelerating across the Middle East
and Latin America, where we continue to see
increased appetite and initial success with our
technologies.
In February 2026, we also broadened our
exposure to adjacent sectors by securing our first
commercial aerospace cylinder order – a
testament to our colleagues, capabilities and
leading composites technology.
Our world‑leading carbon fiber cylinder
technology - proven over decades and applied
across mobility and energy systems - continues to
give Hexagon a unique competitive edge as new
and existing customers convert to natural gas.
Accelerating the adoption of natural gas
Natural gas remains the only commercially ready,
lower‑emission and cost‑effective alternative to
diesel in so many applications, including for
heavy‑duty, long-haul and high energy‑intensive
mobility fleets in North America. This is especially
evident in our Refuse segment which delivered
record revenues for the year.
In 2025, we took meaningful steps to accelerate
natural‑gas adoption in trucking through the
launch of our demo‑truck program and our
industry partnership in Pioneer Clean Fleet
Solutions - initiatives that are generating interest
from fleets and reinforcing the operational and
economic advantages of natural‑gas in long-haul
heavy-duty trucking.
Our people and culture
More than anything, 2025 reinforced the value of
our people. Despite a 25% workforce reduction
and challenging market conditions, our
employees continued to deliver – bringing their
expertise, integrity and drive to work every day.
Their ability to adapt and keep momentum
reflects the very best of Hexagon.
Being a manufacturing company, the safety of
our employees is our top priority. I’m therefore
pleased to see that the efforts made to build a
strong safety culture are now delivering results,
with a 70 % reduction in recordable work-related
incidents in 2025.
We will continue to invest in our people’s
development, safety and inclusion as we build a
workplace where everyone can thrive and uphold
the standards that define The Hexagon Way.
Looking ahead
As we move into 2026, we remain cautiously
optimistic. The structural improvements
implemented in 2025 have strengthened our
foundation and enhanced the resilience of our
business.
Our solutions play a critical role in reducing
emissions and costs across the transportation
sector, while supporting energy security for
countries, communities and industries.
We will continue to maintain financial discipline,
deepen our presence in high‑potential regions
and advance the capabilities of our core
technology. Looking ahead, we are confident in
our ability to support our customers with
practical, scalable solutions that enable the
transition to cleaner, more secure and more
affordable energy sources.
Thank you for your continued trust and support.
Philipp Schramm
CEO, Hexagon Composites

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Board of
Directors’ report

Hexagon Composites ASA | Annual Report 2025 |

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Board of Director’s report
Strategic focus and resilience
through a challenging year
GROUP EBITDA MNOK
GROUP REVENUE MNOK
All subsequent numbers in parentheses refer to comparative figures for the same period last year.
All figures in NOK are rounded to the nearest million. All percentages are rounded to the nearest one percent
.
In 2025, Hexagon Group delivered revenues of NOK 2 955 (4 877) million and a
reported EBITDA of NOK 158 (637) million, resulting in an EBITDA margin of 5%
(13%). Adjusting for severance expenses and a one-off gain related to the
acquisition of SES Composites, EBITDA was NOK 65 million for the full year 2025.
2025 was a challenging year for the Group, where macro-economic uncertainty
combined with a cyclical downturn in our key segments significantly impacted
the performance for the year. As part of a larger cost restructuring program, 25%
of the workforce left the Company in 2025.
The key priority has been navigating headwinds, whilst taking strategic steps to
build a more resilient company.

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Key figures

| NOK million | 2025 | 2024 | 2023
| Fuel Systems |  |  |
| Revenue | 1 848 | 2 287 | 2 294
| EBITDA | 82 | 180 | 106
| EBITDA margin | 4% | 8% | 5%
| Mobile Pipeline |  |  |
| Revenue | 781 | 2 166 | 1 786
| EBITDA | (53) | 429 | 221
| EBITDA margin | (7%) | 20% | 12%
| Aftermarket |  |  |
| Revenue | 433 | 450 | 428
| EBITDA | 28 | 71 | 56
| EBITDA margin | 6% | 16% | 13%
| Corporate entities and eliminations |  |  |
| Revenue | (107) | (26) | 18
| EBITDA | 101 | (43) | (18)
| Hexagon Group |  |  |
| Revenue | 2 955 | 4 877 | 4 526
| EBITDA | 158 | 637 | 366
| EBITDA margin | 5% | 13% | 8%
1 | Corporate entities and eliminations refer to holding- and non-operating entities within the Group and inter-segment eliminations within the Group

Key developments for the Group in 2025
Targeted cost and cash optimization program
well underway
In response to a cyclical market downturn, a
group wide cost and cash optimization program
was launched in September 2025. By year end,
the company had completed:
• 25% reduction in workforce (excluding SES
Composites)
• NOK 200 million reduction in personnel and
SG&A costs
Entering into 2026, the Group expects:
• Additional cost effects to materialize
• Investments limited to NOK 80 million for the
year
The program targeted structural improvements,
positioning the company for stronger operational
efficiency and enhanced competitiveness as the
market recovers.
Strengthening our position in Europe
In October 2025, Hexagon acquired SES
Composites, a leading European manufacturer of
high‑pressure cylinders and systems for
compressed gas storage and distribution, from
Worthington Enterprises. The acquisition further
consolidates Hexagon’s position as the leading
provider of natural gas fuel systems in Europe
and is expected to deliver additional synergies
across production processes and the broader
supply chain.
All-time high revenues to the refuse sector
The refuse sector remains resilient and largely
insulated from the uncertain macro‑economic
environment in North America. Despite a deep
freight recession and weak demand for
heavy‑duty trucks in 2025, demand for CNG fuel
systems in the refuse industry reached an all‑time
high, generating revenues of NOK 800 million.
Key developments for the Group after the
balance sheet date
Acquired remaining shares in Cryoshelter
In January 2026, Hexagon Composites acquired
the remaining 60% shares in Cryoshelter Bio LNG
GmbH for a consideration of EUR 1, plus a
contingent earn-out consideration.
Close down of SES Composites in Poland
On 11 February, Hexagon decided to cease SES
Composites type-3 fuel system business in
Poland. The decision was made to focus solely on
type-4 and utilize Hexagon’s existing type-4
facilities in Kassel, Germany, where significant
operational and financial synergies are expected
from this decision.

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Segment results
Following the sale of Hexagon Ragasco in 2024 and the deconsolidation of Hexagon Purus in 2023,
Hexagon has become a more focused and integrated company within the alternative fuel space.
This was further strengthened through the acquisition of Worthington’s alternative fuels business, SES
Composites in October 2025. The Group is organized into three business segments: 1) Fuel Systems 2)
Mobile Pipeline and 3) Aftermarket - all dedicated to distinct markets and product offerings.
Compared to previous segment reporting until Q1’25, Hexagon Agility is now separated into the three new
segments, while Hexagon Digital Wave is organized under the Aftermarket segment.
In addition to its core business segments, Hexagon had non-controlling interests in three associated
companies - Hexagon Purus, Worthington Cylinders GmbH (heiserTEC) and Cryoshelter BioLNG, all of
which are being accounted for by use of the equity method.

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Segment results for
Fuel Systems
Global provider of alternative fuel systems for commercial vehicles, such
as heavy-duty trucks, refuse trucks and transit buses
Sales and market overview
Macro-economic uncertainty combined with
regulatory uncertainty and deep freight recession
in North America impacted the Fuel Systems
segment in 2025.
Heavy-duty trucks
With the launch of Cummins’ X15N engine,
natural gas trucks are now able to go head-to-
head with diesel on range, performance and
drivability. However, the market downturn in 2025
led many fleet owners to delay investment
decisions, slowing down the adoption of natural
SHARE OF GROUP
REVENUE
gas in heavy-duty trucking. Whilst demand has
REVENUE (NOK million)
REVENUE (NOK million)
EBITDA (NOK million)
been soft for heavy-fuel systems, the natural gas
industry leaders, including Hexagon Agility, have
worked closely with OEMs and fleet owners to
63%
provide solutions that support their piloting
activities and transition to natural gas. Together
with Clean Energy Inc. and Cummins, Hexagon
Agility supported the establishment of Pioneer
Clean Solutions, the first company dedicated to
leasing low-carbon heavy-duty commercial
vehicles in North America.
Transit and refuse
Transit and refuse are public critical functions and
therefore remain more insulated from macro-
economic volatility.
Transit demand remained stable throughout the
year in both North America and Europe, with a
solidified position in Europe due to acquisition of
SES Composites.
In the refuse sector, renewable natural gas
represents one of the strongest circular economy
use cases, as several refuse companies now
convert collected waste into RNG to fuel their
fleets. In North America, 60% of new refuse truck
orders are natural gas and 2025 was a record year
for Hexagon in this segment delivering close to
NOK 800 million in revenues.

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Profit/loss
For the full year 2025, the Fuel Systems segment
reported revenues of NOK 1 848 (2 287) million,
including NOK 97 (0) million from SES
Composites which was acquired in October 2025.
Adjusting for SES Composites, revenues were
NOK 1 751 million, representing a decline of -23%
compared to 2024. The decline was largely
explained by lower volumes towards heavy-duty
trucks due to a soft US freight market,
macroeconomic and regulatory uncertainty, and
lack of major orders from certain key customers.
Revenues within the heavy-duty truck sector
amounted to NOK 503 in 2025, compared to NOK
977 million in 2024. Volumes within the transit bus
sector also declined somewhat during the year
and ended at NOK 487 (605) million. On the
contrary, volumes towards refuse trucks exceeded
the record year of 2024, and saw an increase in
revenues from NOK 656 million in 2024 to NOK
789 million in 2025, exemplifying the resilient
nature of the refuse truck sector.
EBITDA for the Fuel Systems segment in 2025 was
NOK 82 (180) million, translating to an EBITDA
margin of 4% (8%). SES Composites, which was
fully consolidated from October, contributed with
NOK 4 million in EBITDA. Adjusted for SES
Composites, the EBITDA was NOK 77 (180) million.
The EBITDA performance was negatively
impacted by lower volumes and negative product
mix effects from lower share of fuel systems for
heavy-duty truck.

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Segment results for
Mobile Pipeline
Gas distribution systems with the largest transport capacity worldwide for the
safe transport of CNG, RNG, hydrogen and industrial gases
Sales and market overview
Mobile Pipeline exited a record 2024 on both top-
line and bottom-line performance. In 2025,
macro-economic uncertainty and low oil prices
caused operators to focus on improving asset
utilization and delayed spending and investment
decisions in North America – significantly
impacting the demand for Mobile Pipeline in the
region. In EMEAA1, energy security and cost
effective decarbonization are driving the demand
for RNG/CNG, leading to a record year in the
region for Hexagon’s Mobile Pipeline solutions.
Especially in the UK, 2025 has been a turning
SHARE OF GROUP
REVENUE
point for RNG with deliveries of gas distribution
REVENUE (NOK million)
EBITDA (NOK million)
modules to several leading energy companies.
As part of the downturn in the North American
26%
market, Hexagon has worked throughout 2025 to
diversify its geographic exposure in this segment
with initial successes in the Middle East and Latin
America.
Profit/loss
For the full year 2025, the Mobile Pipeline
segment reported revenues of NOK 781 (2 166)
million, a decline of -64% from 2024. 2024 was a
peak year for the Mobile Pipeline segment with
record-high deliveries of gas distribution
modules. The reduced demand in 2025 was a
result of macroeconomic uncertainties and low oil
prices, delaying spending and investment
decisions - leading operators to focus on
improving asset utilization. These factors, coupled
with the high investments undertaken by gas
distributors the past couple of years, has caused
the North American market to be somewhat
oversupplied.
Outside of North America, the Mobile Pipeline
business operated from Kassel, Germany saw an
improvement year over year driven by higher
activity and increased demand from customers in
the Middle East. However, the European business
also saw a significant volume contraction year-
over-year due to limited sales of hydrogen
distribution cylinders to Hexagon Purus
(compared to approximately 407 million in 2024).
EBITDA for the Mobile Pipeline segment in 2025
was NOK -53 (429) million, translating to an
EBITDA margin of -7% (20%). Volume reduction
coupled with price pressure impacted EBITDA
negatively in the year. Cost reductions have been
implemented throughout the year, though not
sufficient to avoid negative EBITDA at these very
reduced volume levels. Residual labor resources
have been transferred to Fuel Systems to
preserve competence, in addition to targeted
cost initiatives.
1 Total equity in percentage of total assets
2 Operating profit before depreciation and amortization (EBITDA) in a percentage of revenue

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Segment results for
Aftermarket
Aftermarket comprises parts, service, support, and fuel systems install for
commercial vehicles from Hexagon Agility FleetCare, and cylinder
requalification offerings from Hexagon Digital Wave.
Sales and market
Hexagon is the only dedicated aftermarket
service provider for alternative fuel systems in
North America.
Requalification of composite gas distribution
trailers (with Modal Acoustic Examination (MAE)
testing) is one of the key drivers in this segment.
These modules require mandatory requalification
every five years, creating a recurring service cycle
closely aligned with historical sales volumes. As
2015 and 2020 were both historically low years for
composite gas distribution trailer sales, 2025 was
SHARE OF GROUP
REVENUE
expected to be a softer year for requalification
REVENUE (NOK million)
EBITDA (NOK million)
activity, with volumes anticipated to recover in
2026.
11%
Aftermarket services related to parts, installs, and
maintenance for heavy‑duty trucks remained
relatively stable through the year, though still
affected by softer market demand and the
ongoing freight recession in North America.
Profit/loss
For the full year 2025, the Aftermarket segment
reported revenues of NOK 433 (450) million,
representing a decline of -4% from 2024. While
the parts, service, support and fuel systems install
business under the brand name Hexagon Agility
FleetCare saw a positive development, the
cylinder requalification business of Hexagon
Digital Wave saw an expected and notable
volume contraction where revenues for Hexagon
Digital Wave ended at NOK 87 (179) million,
representing a decline of 51% on a standalone
basis.
EBITDA for the Aftermarket segment in 2025 was
NOK 28 (71) million, translating to an EBITDA
margin of 6% (16%). Negative EBITDA
contribution from Hexagon Digital Wave coupled
with somewhat reduced margins in Hexagon
Agility’s FleetCare business explain the margin
development year over year.

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Results from
Investments in associates
Hexagon holds strategic investments in three associated companies: Hexagon
Purus (HPUR.OL), heiserTEC and Cryoshelter. All associates are accounted for
by use of the equity method.
Hexagon Purus - 34.6% ownership
Hexagon Purus is a global leader in key
technologies needed for zero-emission hydrogen
and battery-electric mobility and infrastructure
with production facilities in North America,
Europe and Asia. In 2025, Hexagon Purus
generated revenues of NOK 1 144 (1 876) million
and an EBITDA of NOK -618 (-348) million. The
reduced revenue and widened EBITDA loss were
mainly driven by weaker demand, write-downs
and significant restructuring costs. Profit after tax
for Hexagon Purus for 2025 ended at NOK -1 525
(-1 202). Hexagon’s profit impact from its
investments in Hexagon Purus amounted to NOK
Hexagon Purus
Profit impact (NOK million)
heiserTEC
Profit impact (NOK million)
Cryoshelter
Profit impact (NOK million)
-690 (-763) million.
heiserTEC - 49% ownership
Sustainable Energy Solutions (SES) was
rebranded to heiserTEC in December 2025
following Hexagon’s acquisition of SES
Composites in October. heiserTEC, based in
Kienberg (Austria) continues as a joint venture
with Worthington Enterprises, where Hexagon
holds an ownership of 49%. heiserTec is a leading
European supplier of type-1 steel cylinders for
industrial gases, and development within
Ownership 31.12.2025
34.6%
Ownership 31.12.2025
49%
Ownership 31.12.2025
40%
adjacent industries. In the first nine months of
2025, Hexagon accounted for 49% of the profits/
losses in SES as a whole (including “SES
Composites” and “heiserTEC”). Following the
acquisition of SES Composites in October 2025,
Hexagon accounts for SES Composites as a
consolidated subsidiary, while the profits/losses
from heiserTEC are accounted for by use of the
equity method with a 49% share. Hexagon’s
profit impact from SES and heiserTEC amounted
to NOK -44 (-23) million in 2025
Cryoshelter - 40% ownership
Cryoshelter BioLNG is an Austria-based company
specializing in the development of cryogenic tank
technology for liquified natural gas (LNG). In
2025, the company finalized its inaugural order to
a large global package delivery company but has
no further orders in backlog. Consequently, the
Company has scaled down its operation
substantially and Hexagon continues to carry the
investment at zero. In 2025, Hexagon’s profit
impact from Cryoshelter amounted to NOK -80
(-290) million.
Hexagon acquired the remaining 60% shares in
Cryoshelter Bio LNG in January 2026. The
Company is currently exploring alternatives that
do not involve further investments, including
deploying the technology in a high-potential
market such as India.
See also note 26 for further information about
the associates and the equity method accounting
of the associates.

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Financial statements Group
Group structure
Following the sale of Hexagon Ragasco in 2024
and the divestment of Hexagon Purus in 2023,
Hexagon has become a more focused and
integrated company within the alternative fuel
space. This focused strategy was further
strengthened through the acquisition of
Worthington’s alternative fuels business, SES
Composites in October 2025.
Following an internal reorganization in 2025, the
group is organized into three business segments:
1) Fuel Systems, 2) Mobile Pipeline and 3)
Aftermarket - all dedicated to distinct markets
and product offerings.
The Fuel Systems segment comprises of fuel
systems for commercial vehicles such as heavy-
duty trucks, medium-duty trucks, refuse trucks
and transit buses.
The Mobile Pipeline segment comprises our
Mobile Pipeline® gas distribution solutions for
CNG, RNG, hydrogen and industrial gases.
The Aftermarket segment comprises Hexagon’s
offering for servicing commercial vehicles and
gas distribution trailers (Mobile Pipeline) in the
field, under the brand Hexagon Agility FleetCare,
as well as Hexagon Digital Wave’s cylinder
testing, inspection and requalification offerings.
Compared to previous years’ segment reporting,
Hexagon Agility is now separated into the three
new segments, while Hexagon Digital Wave is
organized under the Aftermarket segment.
In addition to its core business segments,
Hexagon holds non-controlling interests in three
associated companies - Hexagon Purus,
heiserTEC (previously Worthington Cylinders
GmbH) and Cryoshelter BioLNG, all of which are
being accounted for by use of the equity method.
Operating results from continuing operations
For the full year 2025, Hexagon Group reported
revenues of NOK 2 955 (4 877) million, including
NOK 97 million from SES Composites which was
acquired in October 2025.
2025 has been a challenging year across all our
segments caused by an unprecedented uncertain
macro environment. Our customers, especially in
the United States, have, at large, slowed down
their investment programs in response to the
market uncertainty, resulting in a significant
reduction in sales volume. The decline was
particularly related to the Mobile Pipeline
segment and heavy-duty truck within the Fuel
Systems segment - both being highly exposed to
general macro economic fluctuations. On the
other side, refuse truck volumes within the Fuel
Systems segment delivered a record year
supported by high investments in the refuse
sector and its resilience from market uncertainty.
Despite cost savings measures and headcount
reductions during the year, the significant decline
in revenues resulted in a weakened EBITDA.
Reported EBITDA for the year was NOK 158 (637)
million, including one-off gains from the
acquisition of SES Composites of NOK (119)
million, and severance expenses of NOK 27
million. Adjusted for these items, EBITDA for the
year was NOK 65 million, representing an EBITDA
margin of 2%, compared to 13% last year.
Depreciations and amortizations were largely in
line with last year, however - Hexagon recognized
a goodwill impairment related Digital Wave of
NOK 38 million, making total depreciation,
amortization and impairment NOK 307 (267)
million. Reported EBIT for the year ended at NOK
-150 (370). Adjusting for the same one-off items
as mentioned above, EBIT was NOK -243 (370)
million, representing an EBIT margin of -8% (8%).
Profit/loss from continuing operations
Profit/loss before taxes from continuing
operations was NOK -1 232 (-906) million, heavily
impacted by share of losses from associates of
NOK -678 (-521) million and impairment losses
on associates of NOK -135 (-556) million.
Additionally, the Group had a few special
financial items related to fair value adjustment on
the Hexagon Purus total return swap (TRS) of
NOK -54 (-60) million, and fair value adjustment
on the convertible bond investment in Hexagon
Purus of NOK -60 (-42) million. See also note 6
and note 26 for further information of financials

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items and accounting effects of associates
respectively.
Profit/loss from discontinued operations
Profit/loss from discontinued operations is only
relevant for 2024 comparative figures, as
Hexagon Ragasco was a part of the Group until 3
June 2024 when it was sold to Worthington
Enterprises. Total profit/loss from Hexagon
Ragasco, including gain from sale amounted to
NOK 690 million in 2024. See note 5 for further
details.
Total profit after taxes
Considering tax expense on continuing
operations of NOK -73 (63), and adding the
profits/losses from continuing operations with
the profits/losses from discontinued operations,
the total profit after tax was NOK -1 159 (-279)
million for the year.
Financial position
On 31 December 2025, the Group’s balance sheet
amounted to NOK 5 305 (7 077) million. The
decline in total assets during the year is to a large
extent explained by share of losses- and
impairments in associates, causing the carrying
value of Investments in associates to drop from
NOK 1 009 million at 31 December 2024 to NOK
180 million at 31 December 2025. Furthermore,
total assets declined significantly due to a weaker
USD versus NOK as of 31.12.2025 versus 31.12.2024,
causing assets and liabilities in USD-
denominated subsidiaries to shrink substantially
when presented in NOK.
The Group’s total liabilities as of year-end 2025
were NOK 2 661 (3 545) million, of which interest-
bearing liabilities were NOK 1 242 (1 293) million,
and net interest bearing debt was NOK 1 031 (991)
million. Total equity ended at NOK 2 645 (3 533)
million, equating to an equity ratio of 50% (50%).
Cash flow
The reported cash flow statement for the
comparative year (2024) includes cash flows of
Hexagon Ragasco up to and including 3 June
2024. Consequently, the reported cash flow
statement for 2025 is not directly comparable year
over year on a line-by-line basis with the cash
flow statement for 2024. The cash flow statement
is however separated between cash flows from
continuing operations and cash flows from
discontinued operations on the main lines for
operating, investing and financing cash flows
comparability purposes.
Cash generation from continuing operations was
negative in 2025 with net cash flows from
operating activities of NOK -67, compared to
NOK 177 million last year. The weak cash flow
generation was impacted by weak operating
profitability coupled with higher underlying
(excluding currency effects) working capital
levels. This was particularly related to less
prepayments received on account from the
Mobile Pipeline business due to lower order
intake.
Net cash flows from investing activities from
continuing operations were negative by NOK
-220 (-216) of which capital expenditures (from
continuing operations) amounted to NOK -134
(-286) million. Besides investments in operating
assets, the cash flow from investing activities was
also impacted by certain financial investments,
including collateral payments under the Hexagon
Purus total return swap (TRS) of NOK -137 (-137)
million, investments- and loans to associates of
NOK -80 (-879) million, offset by proceeds from
the sale of Hexagon Ragasco of NOK 120 (1 072)
million. Reference is made to the cash flow
statement for further details.
Net cash flow from financing activities from
continuing operations were NOK 196 (209) million,
positively impacted by a share capital increase of
NOK 562 (291) million, increased drawing under
the Group’s non-current debt facility of NOK 150
(0) million, and a net change in current
borrowings of NOK -201 (189) million. Other
financing cash flows were related to interest
payments on interest-bearing liabilities, leasing
payments and a net positive effect in increased
debt facilities. Reference is made to the cash flow
statement for further details
Long-term borrowing and liquidity
The Group’s long-term borrowing is financed
centrally through the parent company Hexagon
Composites ASA with DNB and Danske Bank as
lending banks.
As of 31 December 2024, Hexagon’s financing
facilities with its banking partners, DNB and
Danske Bank, amounted to NOK 2 200 million,
comprising a term loan of NOK 1 100 million, a
multi-currency revolving credit facility (RCF) of
NOK 850 million and a multi-currency overdraft
overdraft of NOK 250 million.
On 30 September 2025, Hexagon Composites
ASA refinanced its debt facilities with DNB and
Danske Bank. The refinanced total facility
amounted to NOK 2 000 million and comprised a
term loan of NOK 1 250 million, two revolving
multi-currency credit facilities (RCF) of NOK 100
million (Tranche 1) and NOK 400 million (Tranche
2), and a multi-currency overdraft facility of NOK
250 million. Of the total facility, NOK 1 600 million
is available for drawdown without incurrence-
based leverage restrictions. The additional NOK
400 million under RCF tranche 2 is available
subject to a leverage ratio (NIBD/EBITDA) below

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2.0x. Effective from January 2027, the total facility
will be reduced by NOK 200 million to NOK 1 800
million through quarterly amortizations of NOK
50 million under RCF tranche 2. The refinanced
facilities mature on 31 December 2027.
As of year-end 2025, total drawings under the
debt facilities amounted to NOK 1 250 (1 301)
million excluding amortized transaction costs of
NOK -8 (-8) million. See also note 20.
At the end of 2025, unused credit facilities were
NOK 350 (899) million and available liquidity was
NOK 561 (1 201) million.
The Company was compliant with all covenant
requirements as of the reporting date, 31
December 2025. There is however a significant
risk that compliance with the leverage covenant
(net interest-bearing debt / EBITDA) upon
reinstatement on 30 September 2026 may
become challenging. See note 34 (Going
concern) to the consolidated financial statements
and separate section regarding going concern in
this Board of Directors report for further
information.
The Parent Company
The headquarter of the ultimate parent company,
Hexagon Composites ASA, is located in Aalesund,
Norway. At the end of 2025, Hexagon Composites
ASA’s corporate administration consisted of 14
(17) employees, responsible for general
administration, finance, strategy, business
development , operations, ESG, investor relations
and communications. In 2025, the Parent
Company Hexagon Composites ASA incurred an
operating profit (EBIT) of NOK -31 (-80) million
and a profit after tax of NOK -1 117 (55) million.
The profit after tax in 2025 is to a large extent
impacted by write down of shares in- and loans
to associates and subsidiaries of NOK -972 (-706)
and fair value adjustments on the total return
swap in Hexagon Purus and the convertible bond
investment in Hexagon Purus of NOK -114 (-117)
million combined.
The Board of Hexagon Composites ASA proposes
that the profit for the year is allocated as follows:

Allocation of profits for the year (MNOK) | 2025
Allocated to dividends | -
Transferred to other equity | (1 117)
Total allocations | (1 117)

Share capital and dividends
Hexagon Composites ASA is listed on the Oslo
Stock Exchange under the ticker “HEX”. At the
end of 2025, Hexagon’s share capital was NOK
25 208 million divided on 252 084 496 shares,
each with a nominal value of NOK 0.10. On 31
December 2025 Hexagon held 544 859 (396 610)
treasury shares. The Company’s market value at
year-end was NOK 2.0 (9.6) billion. For further
investor information, refer to the Investor section
on the Company’s website.
Hexagon Composites ASA did not distribute any
dividends in 2025, and the Board does not
propose any ordinary dividends to be paid based
on the financial statements as of 31.12.2025.
Risk management
Hexagon works systematically to identify and
manage risks. Risk management is executed by
Group management and management in
subsidiaries. The Board’s Audit & Sustainability
Committee reviews the overall risk management
policy and procedures and the Group’s internal
control routines. The Committee functions as a
preparatory and advisory committee for the
Group’s Board and provides support for
exercising its responsibilities relating to risk
management, financial- and non-financial
reporting and information, internal controls and
auditing.
Financial risks
The Group has a centralized finance function with
overall responsibility for accounting, cash
management, capital management, financing
arrangements and management of the Group’s
financial risk factors. In addition, the business
areas have financial controllers that perform
similar tasks on the subsidiary level. The most
significant financial risks for the Group include
interest rate risk, liquidity risk, currency risk and
credit risk. The Group currently uses financial
instruments to hedge risks associated with foreign
currency fluctuations, interest rate risk and credit
risk. See note 25 to the consolidated financial
statements for further information related to
financial risk factors and mitigating actions.
Unexpected events and potential fluctuations in
cash generation from operations could result in
the Group being unable to meet its financial
obligations. To mitigate this risk, the Group
targets a sufficient liquidity position, adequate
level of credit facilities and proactive dialogues
with- and reporting to the lending banks.
At the end of the year, the Group had unused
credit facilities totaling NOK 350 (899) million and
available liquidity of NOK 561 (1 201) million, which
is considered comfortable. However, and as
stated in note 20 and note 34 to the consolidated
financial statements, the Company is exposed to
a leverage covenant which may prove challenging
to comply with upon reinstatement on 30
September 2026.
The Group is exposed to credit risk related to
counterparty default on contractual agreements

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and trade, and other current receivables. The
Group has policies and procedures to ensure that
sales are made to customers with appropriate
credit profiles within defined limits. Actual losses
on outstanding receivables have remained low
and amounted to only NOK -1 million in 2025 and
NOK -2 in 2024. Trade receivables at the end of
the year amounted to NOK 491 (743) million.
The Group is exposed to changes in currency
rates which can have a significant effect on
reported results when presented in NOK, while
the underlying business is largely denominated in
USD and EUR. This currency fluctuation cannot be
hedged. Certain of the Group’s interest-bearing
liabilities have variable interest rates, which
expose the Group to volatility in future interest
payment amounts. The aim of the Group’s
interest rate management is to reduce interest
expenses while keeping this volatility within
acceptable limits. See note 20, note 21 and note
25 for information relating to interest rate
hedging agreements maintained by the Group.
Operational risk
Business risk relates to the risk of loss and
reduced profitability due to changes in the
Group’s competitive position. Factors which can
impact the competitive position include new
players in the industry, pressure on market prices
and future demand and supply factors, including
the price of natural gas and the relative price of
gas compared with diesel. Shortages in key raw
materials can impact the whole industry that the
Company operates in, especially in relation to
high-grade carbon fiber and automotive
batteries and electronic components. Adverse
developments in the regulatory environment of
alternative fuels and general geopolitical
developments are also risks. Depending on
developments, these factors could have an
impact on results and financial positions.
Operational and technological risk
Hexagon currently has a strong position in its
markets. The company uses its expertise to
develop and commercialize new products,
processes and technologies. The company has
protected its products, technologies and
production processes with patents were deemed
appropriate. However, the company is exposed to
competing technologies and processes that
could have a negative effect on competitive
positions and, in turn profitability and financial
position. Hexagon’s Type 4 composite pressure
cylinder technology is industry leading, however,
typically competes with existing type 1 and type 3
technologies, as well as other players with type 4
capabilities. Hexagon operates in markets with
strict standards for quality and delivery.
Deviations from these standards could result in
significant additional costs, lost sales revenues
and damage to the company’s reputation. In
order to mitigate these risks, the company has
procedures and controls in place to identify and
prevent deviations.
Supply chain and raw material risk
The Company relies on a global supply chain for
raw materials and components. Disruptions due
to logistical challenges, supplier insolvency or
supplier production disruptions, import/export
restrictions, and/or geopolitical events may affect
production schedules and cost structures. To
mitigate some of the supply chain and raw
materials risks, and in particular related to pricing
(which is primarily linked to the prevailing market
balance where supply is dependent on a limited
number of manufacturers) and access to carbon
fiber, the Group may from time to time enter into
long-term supply agreements locking in price
and volume. Even though such contracts are
intended to mitigate supply chain risk, it could
also potentially add risk – as such contracts may
commit the Group to purchase material and
components over and above actual demand, and
market prices can fall.
Furthermore and as a general mitigating
measure to other potential raw material
shortages, the Company’s policy requires a
minimum of two suppliers for the purchase of
critical raw materials and components.
Market risk
The aftermath of the covid pandemic has caused
increased market risk, especially related to
unpredictable supply chains and inflation levels
worldwide and a following increase of interest
rates to combat the heightened inflation levels.
In 2025, the Group had largely neutralized the
inflationary effects of inflation of input cost
prices, but higher interest rates weighed down
profits. Hexagon’s management are closely
monitoring the macroeconomic development,
recessionary trends, inflation rates and interest
rates in all areas where Hexagon operates and
will implement necessary countermeasures if and
when such measures become necessary.
Corporate governance
Hexagon Composites ASA’s principles for
corporate governance are subject to annual
review and discussions by the Board of Directors.
The Company follow the Norwegian Code of
Practice for Corporate Governance, last revised 28
August 2025 by the Norwegian Corporate
Governance Board (NUES). The Board of
Directors have appointed two sub-committees:
The Audit & Sustainability Committee, governed
by the Norwegian Public Limited Liability
Companies Act and separate instruction adopted
by the Board of Directors, and the Remuneration
Committee governed by a separate instruction
adopted by the Board. The Board’s corporate

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governance report is available in a separate
section in this annual report, see Corporate
Governance report and the Company’s website
under the Investor section.
The Board of Directors and management
personnel of Hexagon Composites ASA is
covered by the Company’s Directors & Officers
liability insurance. The insurance covers personal
legal liabilities including defense and legal costs
of the directors and officers of the parent
company and all controlled subsidiaries globally.
Coverage also extends to personnel serving at
the Company’s request or direction on the
boards of joint or non-controlled entities.
Environment, social and governance (ESG)
Hexagon strives to conduct its business in an
economically, socially, and environmentally
responsible manner. Hexagon has prepared its
sustainability statement in line with the
requirements in the Corporate Sustainability
Reporting Directive (CSRD) for 2025. The CSRD
report, including the reporting of EU Taxonomy
related information, can be found in the
Sustainability statement in a separate section of
this annual report. Although the Sustainability
statement is presented in a separate section, it is
an inherent part of the Board of Directors’ report.
Transparency Act reporting
The Norwegian Transparency Act from 1 July 2022
requires Hexagon to carry out due diligence
assessments related to fundamental human
rights and decent working conditions in its own
businesses and supply chains. There were no
findings of violations of human rights or decent
working conditions within the supply chain of
Hexagon in 2025. For further details, please refer
to the Transparency Act Statement on Hexagon’s
website under the Sustainability section.
Our workforce
Hexagon has 872 permanent employees
worldwide, with the majority working in
manufacturing roles. In a fast-paced, male-
dominated manufacturing industry, keeping
employees safe, engaged and valued are critical
to maintain healthy retention rates, attract new
talents, improve diversity and secure long-term
sustainable growth. The Company has several
processes in place to mitigate potential negative
impacts on its own workforce.
Health & Safety
Sickness absence levels in Norway and Germany
for continuing operations were respectively 0.0%
(0.0%) and 8.0% (6.5%) in 2025. In North America,
sickness absence was not recorded as employees
are allocated generic paid time off (PTO) of 15
days – which includes but is not limited to
sickness absence.
No occupational diseases were recorded across
the Group, and significant progress was achieved
in health and safety, with recordable work‑related
incidents decreasing from 25 in 2024 to 7 in 2025.
For complete information, see Own workforce in
the Sustainability statement.
Environment
Climate change represents some level of physical
risk to Hexagon in terms of severe climate events
that could damage business facilities or disrupt
supply chains. As part of the Group’s work with
the CSRD and EU Taxonomy requirements, a
physical climate risk and vulnerability assessment
were performed for all operational sites. Based
on the assessment, Hexagon identified extreme
wind and tornados in the US as events that may
cause significant damage or disruptions The
general level of risk and potential impact from
physical climate change for Hexagon is, however,
considered relatively low. Refer to Note 32 –
Climate risk, as well as the Sustainability
statement for 2025 for further details.
Research & development
In order to maintain a leading position within its
markets, the Group invests in technological and
process development. Several research &
development (R&D) projects are carried out in
cooperation with major customers. The Group’s
continuing operations expensed R&D costs
amounting to NOK 14 (19) million in 2025 and
capitalized technology development of NOK 28 (20)
million in 2025. The Group’s continuing operations
did not receive any government contributions in
2025 nor in 2024.
Outlook
Hexagon remains focused on optimizing its cost
structure, maintaining capital discipline and
ensuring sound financial management, setting
the foundation for stronger performance as the
market continues to recover.
The Company remains cautiously optimistic
about 2026. Market softness is expected to
continue with gradual improvements and normal
seasonality contributing to a back-end loaded
year.
Hexagon’s core technology is key to solving
global energy challenges, including energy
security, energy reliability, emissions reductions,
and, most importantly, lowering the total cost-of-
ownership for energy and mobility companies.
In North America, natural gas-powered heavy-
duty trucks currently represent our largest growth

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opportunity – natural gas is the only alternative
fuel ready for mass adoption in that segment.
The Board remains confident in the Company’s
resilience and as the market normalizes, Hexagon
is in pole position to capture long-term profitable
growth.
Going concern
With reference of the Norwegian Accounting Act
§ 2-2 (8), the Board confirms the the financial
statements have been prepared on the basis of
the going concern assumption. In making this
assessment, the Board has considered the
Company’s financial position, liquidity forecasts,
and expected developments for at least 12
months after the date of approval of the annual
report.
The Company’s current financing arrangements
include a leverage covenant based on net debt to
EBITDA, which will be reinstated on 30
September 2026. See also note 20 to the
consolidated financial statements. Based on
current projections, significant uncertainty exists
regarding the Company’s ability to comply with
this covenant upon reinstatement. Should the
Company not be able to meet this covenant, the
loans may become repayable on demand.
Management and the Board are currently in
dialogue with the Company’s lending banks
regarding an extension of the covenant waiver
period. No formal agreement has been reached
as of the date of the annual report. In parallel, the
Company is evaluating a range of measures to
support compliance with its financing
arrangements and optimize its capital structure.
These measures include initiatives to improve
operating performance through continued cost
reductions, potential divestments and evaluation
of refinancing alternatives, which may include
new debt or equity financing.
The events and conditions described above
indicate that material uncertainty exists that may
cast significant doubt on the Company’s ability to
continue as a going concern under the prevailing
financial arrangements. Nevertheless,
Management and the Board conclude that the
going concern basis of preparation is
appropriate, based on the information currently
available and the measures being undertaken.
Subsequent events
Cryoshelter acquisition January 2026
On 9 January 2026, Hexagon Composites ASA
acquired the remaining 60% shares in
Cryoshelter Bio LNG GmbH for a consideration of
one (1) euro, coupled with a contingent earn-out
consideration. Hexagon plans to deploy
Cryoshelter’s technology and production line in
India during 2026, with the intention of
enhancing the value of the investment in that
market over time.
Decision to close down SES Composites’
facilities in Poland in February 2026
On 11 February, Hexagon informed the
employees and stakeholders of SES Composites’
type-3 fuel systems business in Slupsk (Poland)
that Hexagon plans to close down the business
and integrate the business into Hexagon’s
existing type-4 fuel systems business in Kassel
(German), where significant operational and
financial synergies are expected from this
decision. The legal entity, Hexagon Agility Poland
S.p. z.o.o, will undergo a voluntary liquidation
with the aim to liquidate the company within
2026. Liquidation of the company was formally
opened on 25 February 2026. Due to this decision,
and because the type-3 business represented a
separate and distinct major line of business in
Hexagon prior to close down, the business will in
2026 be treated and presented as discontinued
operations. While this decision does not affect
the stated figures in the 2025 group accounts in
this report, the 2025 figures related to Hexagon
Agility Poland will in the 2026 group accounts be
re-presented and presented as discontinued
operations.
There have been no other significant events after
the balance sheet date that have not already
been disclosed in this report.

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Oslo, 15 April 2026
The Board of Directors of Hexagon Composites ASA

Knut Flakk | Liv Astri Hovem | Ko Mizukawa
Chair | Deputy chair | Board member
Mimi Berdal | Eva Sagemo | Sam Gabbita
Board member | Board member | Board member
Harald Arnet |  | Philipp Schramm
Board member |  | Chief Executive Officer

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Corporate
Governance
CREATING VALUE FOR OUR STAKEHOLDERS
Hexagon Composites ASA (“Hexagon” or the “Company”) is committed to follow
the Norwegian Code of Practice for Corporate Governance. We aim to secure a
clear division of roles and responsibilities between shareholders, the board of
directors and Executive Team to ensure good corporate management. We believe
that this contributes to the greatest possible value creation for all interest groups
and strengthens the trust in the Company among shareholders, in the capital
markets and with other key stakeholders.
The Company is subject to reporting requirements for corporate governance under the Accounting Act
section 3-3b (available at www.lovdata.no) as well as Oslo Børs’ “Oslo rule book II - Issuer Rules” section 4.4
(available at Oslo Børs’ website, www.euronext.com).

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Hexagon will comply with the Code of Practice
established by the Norwegian Corporate
Governance Board (NUES). The latest version of
the Code of Practice is available at www.nues.no.
The principal purpose of the Corporate
Governance Code is to ensure (i) that listed
companies implement corporate governance
practices that regulates the division of
responsibilities between the shareholders, the
board of directors and Executive Team more
comprehensively than the legislation requires,
and (ii) effective management and control over
activities with the aim of securing the greatest
possible value creation over time in the best
interest of shareholders, employees and other
stakeholders.
1. Implementation and reporting of
Corporate Governance
Hexagon Composites ASA’s principles for
corporate governance are subject to annual
review and discussions by the board of directors.
The Company shall comply with the Code of
Practice established by the Norwegian Corporate
Governance Board (NUES), last revised 28 August
2025. Unless otherwise indicated in the text
below, there are no deviations to the Norwegian
Code of Practice for Corporate Governance.
Hexagon’s vision is clean air everywhere and our
purpose is to drive energy transformation. Our
values – integrity and drive – support this mission
and ensure accountability for our actions. The
Company is committed to conducting its
business in accordance with the highest ethical
standards with no tolerance for corruption.
2. Business
Hexagon delivers safe and innovative solutions
for a cleaner energy future. Our solutions enable
storage, transportation, and conversion to clean
energy in a wide range of mobility and industrial
applications. The scope and objectives of our
business are defined in the Company’s articles of
association §3: “The objectives of the Company
are in the development, production, marketing
and sale of goods and services related to
composites or other areas, and activities that are
related thereto, and participation in companies
within similar business areas.“ A more
comprehensive discussion and analysis of our
business activities, strategic priorities and
operating results are included in the annual
report and on the Company’s website
www.hexagongroup.com.
The board has defined clear objectives, strategies
and risk profiles for the Company’s business
activities such that the Company creates value for
shareholders in a sustainable manner. When
carrying out this work, the board of directors
takes into account financial, social and
environmental considerations. These objectives,
strategies and risk profiles are subject to annual
review by the board.
Sustainability, including social responsibility, is an
integral part of Hexagon’s corporate governance
process. Formal guidelines for corporate
sustainability have been approved by the board
and integrated into the internal control protocols
for sustainability reporting that have been
Good corporate
governance will
contribute to the
greatest possible value
creation over time for all
interest groups.
established and integrated into the Group’s
management systems.
3. Equity and dividends
Hexagon’s capital structure is considered to be at
a level appropriate to the Group’s objectives,
strategies and risk profile. Hexagon’s main
objective is to focus on high-growth areas, and
the Company intends to make the necessary
investments to develop its business in these
markets. At 31 December 2025, the Company’s
equity was NOK 2 645 million, equivalent to 50%
of total assets. Authorization to the board for
capital transactions is normally restricted to
defined objectives and time limitations that do
not exceed the next ordinary general meeting.
This applies to the issuance of new shares as well
as the purchase of own shares. The board is
currently and until the General Meeting of 2026,

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but no later than 30 June 2026, authorized to
acquire own shares on one or more occasions, up
to a total nominal value not exceeding 10% of the
share capital at any given time. The power of
attorney may be used for the following purposes:
1. For share-based remuneration and share
incentive programs for employees,
2. For the purpose of subsequent deletion of
shares by reduction of the registered share
capital, or
3. For general corporate purposes
Authorizations for increases in share capital
relating to multiple purposes are considered
separately. The board was from the General
Meeting 2025 and until the General Meeting of
2026, but no later than 30 June 2026, authorized
to increase the share capital by up to NOK 4 201
408 (representing 20% of the existing share
capital) in one or several share issuances. The
authorization may be used for general corporate
purposes, including in connection with
investments, mergers and acquisitions. In
September 2025, the authorization was used to
increase the share capital by NOK 4 201 408.
Hexagon’s main objective is to provide
competitive returns to shareholders primarily
through increasing the intrinsic value of our
business. Any future dividend payments are
dependent on financial performance and
investment requirements.
4. Equal treatment of shareholders
Hexagon has one class of shares with equal
rights, and the policy is to comply with the equal
treatment principles of applicable law in capital
transactions. In the event where circumstances
require deviation from the main rule of equal
treatment of shareholders, subsequent measures
will be implemented to reduce the impact of such
deviation, unless the impact is justifiable.
Reasons for any deviation from equal treatment
of all shareholders in capital transactions will be
included in the stock exchange announcement
made in connection with the transaction. The
Company normally conducts transactions in its
own shares through the stock exchange or at
equivalent market rates. If there is limited
liquidity in the Company’s shares, the Company
may consider other ways to ensure equal
treatment of all shareholders. Any transactions in
own shares will be carried out in compliance with
applicable law. The Company’s guidelines related
to transactions with related parties are described
under item 9.
5. Shares and negotiability
All shares in Hexagon are freely negotiable shares
with full voting rights. No form of transfer or
voting restrictions have been stipulated in the
articles of association.
6. General meetings
Hexagon has well-established procedures for
publicly announcing and issuing information
regarding the general meeting, and all relevant
information is published through newsweb.no,
and the Company’s website. Notice of the
general meeting and supporting documents,
including the recommendations from the
nomination committee, are distributed and
published 21 days in advance of the meeting
date. The board will ensure that the Company’s
shareholders can participate and vote in the
general meeting, that the resolutions and
supporting information distributed are
sufficiently detailed, comprehensive and specific
to allow shareholders to form a view on all
matters to be considered at the meeting, and
that any deadline for shareholders to give notice
of their intention to attend the meeting is set as
close to the date of the meeting as per applicable
regulations. Normally, shareholders will be able
to vote on each individual matter, including
individual candidates nominated for election to
the Company’s corporate bodies. Hexagon will
aim to prepare and facilitate the use of proxy
forms that allow for separate voting instructions
to be given for each item on the agenda and
should nominate a person who will be available
to vote on behalf of shareholders as their proxy if
advance voting is not available.
Deviations from the Norwegian Code of Practice
for Corporate Governance: In connection with the
annual general meeting for 2025, the general
meeting was chaired by Knut Flakk. The
Company’s practice reflects its fundamental view
that the general meeting should be chaired by a
person with deep knowledge of the matters
presented for consideration at the meeting.
7. Nomination committee
The Company’s nomination committee’s
requirements are stipulated in the articles of
association. The nomination committee’s main
responsibility is to evaluate the work and
expertise profile of the board of directors and to
propose suitable candidates for the board and
the Nomination Committee, and remuneration
for the members of these bodies. Proposals for
candidates, including the reasons for selection
and other relevant information are distributed
with other documentation related to the annual
general meeting. The nomination committee is
currently comprised of three members. The
composition of the Committee is intended to
reflect the interests of all shareholders in general,
and all members are independent of the
Company’s executive personnel, material
business contacts and the Company’s major
shareholders. Members are elected at the annual
general meeting, and shareholders who wish to

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contact the Nomination Committee can email
ir@hexagongroup.com with their request.
The current members of the nomination
committee are:
• Walter Hafslo Qvam (Chair) - elected until 2026
• Ingebret G. Hisdal – elected until 2027
• Elisabeth Tørstad – elected until 2026
8. Board of directors: composition and
independence
The board is composed of individuals with
sufficient competence and expertise, capacity
and diversity to enable independent evaluations
of the Group’s operations in the common
interests of all shareholders and to ensure its
effectiveness as a governing body. The
composition of the board ensures that it can
operate independently of any special interests.
Five of the shareholder-elected board members
are independent of the Company’s executive
personnel, material business contacts and the
Company’s major shareholders. The board does
not include any members of the Company’s
Executive Team.
The general meeting elects the Chair of the
board. The term of office for members of the
board is no longer than two years at a time and
board members may be re-elected. The board of
directors currently has 43% female representation
while the sub-committees have 100% and 50%
female representation.
The annual report and Hexagon’s website
provide information about the expertise of the
board of directors, information on their record of
attendance at board meetings, as well as
identifying which members are considered
independent. Members of the board are
encouraged to own shares in the Company.
9.The work of the board of directors
The board of directors works with the Chief
Executive Officer (CEO), Chief Financial Officer
(CFO) and external auditors to ensure that the
Group is managed in accordance with its
corporate objectives, values and ethical
guidelines. The board has an annual plan with
particular emphasis on objectives, strategy and
implementation. The board performs a self-
evaluation annually and discusses relevant
improvements and implementation of any
organizational practices with the administration.
The evaluation is also shared with the nomination
committee.
Clear guidelines require board members and the
Executive Team to notify the board of any
significant direct or indirect interest in
transactions executed by the Company. These
guidelines are incorporated into the board’s
instructions and instructions for the CEO. These
instructions state how agreements with related
parties are handled, including whether an
independent valuation must be obtained. Any
such transactions will be described in the
consolidated financial statements – transactions
with related parties.
The board shall ensure that members of the
board and Executive Team make the Company
aware of any material interests that they may
have in items to be considered by the board. In
the event that the board Chair has been actively
engaged in such interests, the Chair will recuse
himself and the Deputy Chair will assume
responsibility for the matter in question.
The Company’s Audit & Sustainability Committee
is governed by the Norwegian Public Limited
Liability Companies Act as well as a separate
instruction adopted by the board of directors. The
board’s Audit & Sustainability Committee is
comprised of members that are independent of
the Company’s executive personnel, material
business contacts and the major shareholders. In
2025, the Audit & Sustainability Committee held
eight meetings with 100% attendance from The
Committee’s members. The Audit & Sustainability
Committee comprised of the independent board
members Eva Sagemo (Chair), Liv Astri Hovem
and Mimi Berdal.
The Remuneration Committee is governed by a
separate instruction adopted by the board of
directors. The Committee is independent of the
Company’s executive personnel, material
business contacts and the major shareholders
and is currently composed as follows: Sam
Gabbita (Chair) and Eva Sagemo.
10. Risk management and internal controls
Hexagon works systematically to identify and
manage the specific risks facing its business. Risk
management is executed by the Executive Team
and management of business units and
subsidiaries. The corporate finance department is
responsible for ensuring that the Group has an
adequate system of internal controls, including
controls over financial and non- financial
reporting. The department reports to the CFO
and has overall responsibility for ensuring
compliance with the Group’s accounting
principles, financial and non-financial controls.
Hexagon believes that its overall strategy,
management principles and organizational
structure provide a good control environment.
The Group’s ethical guidelines include
considerations related to the Company’s
stakeholders in value creation and contribute to a
culture and values that support this environment.

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The board ensures that the Group has good
internal controls and appropriate systems for risk
management in relation to the scope and type of
business operation. This includes ensuring that
the Group’s risk management and internal
controls are adequate and systematic and that
processes are established in accordance with laws
and regulations, articles of association,
instructions as well as external and internal
guidelines and policies. The board regularly and
systematically assesses strategies and guidelines
for risk management. The board’s Audit &
Sustainability Committee reviews the overall risk
management policy and procedures and the
Group’s internal control routines. The Committee
functions as a preparator and advisory committee
for the Group’s board and provides support for
exercising its responsibilities relating to risk
management, financial and non-financial
reporting, financial information and auditing.
Please see the Risk Management section of the
board of directors’ report for further information
on the Group’s main risks.
In addition to the quarterly and annual risk
assessment, the management presents quarterly
financial statements that will inform the board
and shareholders on current business
performance, including risk reports. These reports
are subject to review at the quarterly board
meetings.
The financial and sustainability reporting process
Hexagon recognizes the importance of robust
financial and sustainability reporting processes.
To ensure accuracy, transparency, and
compliance, an internal control system that
addresses the organization and execution of the
financial and sustainability reporting has been
established. Each entity of the organization has
its own finance function and reports to the
business segment and/or the Group on a
monthly basis. The Group finance function is
consolidating the numbers for each period. For
sustainability reporting, all the sites and offices
report several metrics covering people,
environment, health and safety on a monthly
basis. These data are consolidated in internal
systems and used in the monthly internal
reporting. The Group ESG function is collecting
and consolidating additional data on quarterly
and half-year basis.
The CFO plays a pivotal role in owning and
overseeing the financial and sustainability
reporting processes. The CFO sets the tone for
the reporting, ensuring alignment with
organizational goals. The role owns the reporting
processes, including accuracy, timeliness, and
adherence to regulations. In addition, the role
assesses financial and non-financial risks,
implements controls, and monitors compliance.
The Audit & Sustainability Committee
complements the CFO’s efforts by providing
independent oversight. The Committee reviews
financial and sustainability statements, ensures
compliance, and approves significant
transactions. It interacts with external auditors,
ensuring independence and effectiveness. By
adhering to these principles, leveraging the
expertise of the CFO’s organization, and
benefiting from the Audit & Sustainability
Committee’s oversight, high standards of
financial and non-financial reporting and
governance are maintained. The board receives
reporting from the management and the Audit &
Sustainability Committee on a regular basis.
These reports cover financial performance, risk
assessments, and adherence to accounting
standards. In addition to the regular reports, the
board receives ad hoc reports as needed.
The financial reporting processes result in
releasing quarterly and annual reports
accompanied by quarterly investor presentations,
all in accordance with the Group’s financial
calendar. The sustainability reporting process
results in the sustainability statement, integrated
in the annual report.
11. Remuneration of the board
The remuneration of the board of directors is
approved by the Company’s general meeting
and should reflect the board’s responsibility,
expertise, time commitment and the complexity
of the Company’s activities. The approved
remuneration applies for the period from the
date of the annual general meeting and up to the
date of the next annual general meeting. Further
information about the remuneration to the
individual Board members is provided in the
Remuneration report 2025. The report is available
on Hexagon’s website under the investor section.
All fees are fixed and are not linked to the
Company’s performance. Board members are not
eligible for share option programs. Reference is
also made to the Company’s Remuneration
Report for further details on remuneration of the
board of directors.
Members of the board of directors and/or
companies with which they are associated should
not take on specific assignments for the
Company in addition to their appointment as a
member of the board. If they do nonetheless take
on such assignments this should be disclosed to
the full board. The remuneration for such
additional duties should be approved by the
board of directors.

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12. Salary and other remuneration for
executive personnel
The board has established guidelines on salary
and other remuneration for the Executive Team.
Reference is made to the Guidelines for
remuneration of executive personnel approved
by the annual general meeting in 2025.
Hexagon’s arrangements in respect of salary and
other remuneration are considered to ensure that
the Executive Team and shareholders have
convergent interests. The Executive Team’s
remuneration is based on Company- and
individual performance, and both the methods
and the amounts are intended to promote
commercial strategy, long-term interests and
financial viability for the Company. Hexagon
believes that this can be achieved through the
prudent use of performance share units and/or
other equivalent financial instruments and/or
bonus schemes. Both the Executive Team’s
collective short-term and long-term incentive
plans are subject to proportionate salary or
absolute value “on award” limits respectively. All
long-term incentive plans contain variable
performance parameters which influence the
ultimate value of the award at vesting/
completion. The Company shall ensure that both
the remuneration policy and the remuneration
report are approved and made available on the
Company’s website in accordance with statutory
legislation. For further details on remuneration of
the Executive Team, refer to the Remuneration
report for 2025.
13. Information and communication
The Group follows the Oslo Stock Exchange’s
recommendations for reporting investor
information. The Group’s information policy is
based on openness and equal treatment of all
shareholders and participants in the securities
market. Hexagon’s policy is to provide all
shareholders with accurate, consistent, relevant
and timely information. Efforts are being directed
towards developing disclosures on major value
drivers and risk factors. The Company believes it
is important that employees, shareholders and
investors have equal opportunities to monitor the
Company’s performance and receive sufficient
information to value Hexagon correctly. The
Group seeks to communicate information about
its products and markets to its stakeholders,
while ensuring equal access to all relevant
information provided.
All stock exchange releases, financial reports and
presentations, other public presentations and
press releases are made available on the
Company’s website www.hexagongroup.com
together with other relevant information. All
information distributed to the Company’s
shareholders will be published on the Company’s
website at the same time as it is sent to the
shareholders. In connection with its financial
reporting, Hexagon is broadcasting its
presentation via webcast with the opportunity for
stakeholders to ask questions in a dedicated Q&A
session.
14. Take-overs
The board acknowledges that it should not
prevent or obstruct offers for purchase of the
Company’s business operations or shares.
Agreements that restrict the possibility of
obtaining other offers for the Company’s shares
should only be entered into when clearly justified
as being in the joint interests of the Company
and its shareholders. Agreements between the
Company and an offerer that are important to
the market’s assessment of the offer are made
public before or at the same time as notice is
given that an offer will be made.
15. Auditor
Each year, the Company’s external auditor
provides an annual written confirmation of their
independence and objectivity. The auditor
attends board meetings that address the annual
accounts and presents to the Audit &
Sustainability Committee the main features of a
plan for implementing the auditing work. The
auditor gives an annual presentation to the board
with an opinion on the Company’s accounting
principles, asset management and internal
control procedures. The Group’s auditor until
completion of full year 2025 reporting are EY. PwC
is being proposed as the Company’s new auditor
to the General Meeting 2026. The auditor have
no engagements with the Company that could
impair their independence, and the board,
through the Audit & Sustainability Committee,
has established guidelines in respect of the use
of the auditor for services other than the audit.
See note 28 to the consolidated financial
statements for information about remuneration
to the auditor, including statutory audit and other
services.

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Sustainability
statement

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General information

In this chapter |
Basis for preparation | 3 8
Sustainability governance | 40
Strategy, business model and value chain | 46
Interests and views of stakeholders | 49
Material assessment process | 52

ESRS 2 General disclosures

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GENERAL INFORMATION
Basis for preparation
ESRS 2 BP-1 General basis for preparation of the sustainability statement
This sustainability statement covers the period from 1
January to 31 December 2025. The report has been
prepared on a consolidated basis with our 2025
financial statement and is prepared and presented in
accordance with the Norwegian Accounting Act
(section 2-3). Data from the SES Composites
business where Hexagon acquired the remaining 51%
in fourth quarter 2025, has been included for the time
they have been consolidated in the financial
statements if material to the sustainability reporting.
The report includes Hexagon’s own operations as well as our
upstream and downstream value chains. Detailed information on
how Hexagon’s policies, actions, targets, and metrics apply to our
value chain are provided in the sections related to the topical
standards.
No information related to intellectual property, know-how, or
innovation results has been excluded from this sustainability
statement.
ESRS 2 BP-2 Disclosures in relation to specific circumstances
Changes in the preparation or presentation
of sustainability information
Before the 2024 reporting year, our sustainability reports were
prepared in accordance with the Global Reporting Initiative (GRI)
standards. From 2024, our reporting is in accordance with the
Corporate Sustainability Reporting Directive (CSRD) and the
European Sustainability Reporting Standards (ESRS). Hexagon
Ragasco is not consolidated in the sustainability statement for 2025
as the company was sold to Worthington Enterprises 3 June 2024.
Restatement of certain 2024 figures
The following 2024 figures have been restated in the 2025
sustainability statement due to improvements in data quality and/or
changes in calculation methodology. The restatements are further
explained under each standard:
E1-5
• Fuel consumption from natural gas
• Consumption of purchased or acquired electricity, heat, steam,
and cooling from fossil sources
• Consumption from nuclear sources
• Consumption of purchased or acquired electricity, heat, steam,
and cooling from renewable sources
• Energy intensity per net revenue
E1-6
• Scope 3, Category 11 Use of sold products
• Percentage of contractual instruments, Scope 2 GHG emissions
E5-4
• The absolute weight of secondary reused or recycled components,
secondary intermediary products and secondary materials used to
manufacture the undertaking’s products and services (including
packaging)
• Percentage of secondary reused or recycled components,
secondary intermediary products and secondary materials
S1-14
• Lost Time Incident Frequency
S1-16
• Remuneration ratio

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Time horizon
In preparing the sustainability statement, Hexagon has defined the
following time intervals in accordance with ESRS2 AR 6.4:
• Short-term: Less than 1 year
• Medium-term: 1 to 5 years
• Long-term: More than 5 years
Value chain estimation
When preparing this report and collecting data for metrics, we
mainly used primary data. However, in some cases, such as Scope 3,
resource inflows and outflows, estimations and industry averages
have been utilized. The calculation basis for sustainability metrics is
described in the accompanying notes for each metric. This includes
whether the metrics are directly measured or estimated using
sources such as third-party data or sector averages. Detailed
information on key estimates and assumptions is presented with the
respective quantitative ESG data tables in E1-5, E1-6, E5-4 and E5-5.
Hexagon has made a reasonable effort to collect and estimate the
data, even when utilizing indirect sources, to ensure a
comprehensive view of the impacts across our value chain. Despite
some limitations, we consider the accuracy of our metrics to be
reliable. Going forward, we aim to minimize the use of estimations,
average data, and spend-based methods while increasing the
reliance on supplier-specific data as it becomes available. We have
omitted voluntary data points and applied the transitional provisions
outlined in ESRS Appendix C for phasing-in disclosures, as well as
using the extended phase-in provisions from the Quick fix directive
for E1-9, E5-6, S1-7, S1-13 and S1-14 § 88 d and e.
Disclosures stemming from other legislation or other
sustainability reporting standards
The report contains information in accordance with the Norwegian
Transparency Act. These disclosures are clearly made throughout the
report. The report is also Hexagon’s annual communication on
progress to the UN Global Compact.

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GENERAL INFORMATION
Sustainability governance
ESRS 2 GOV-1 The role of the administrative management and supervisory bodies
Hexagon’s ESG organization is integrated into the Company’s central functions
and operational structure, with ultimate responsibility for sustainability resting
with the Board of Directors. The Board reviews and approves Hexagon’s
sustainability statement as part of the annual report, oversees the Company’s
sustainability performance, and ensures governance practices align with the
Norwegian Code of Practice for Corporate Governance (revised 28 August 2025)
– see further details in Hexagon’s Corporate Governance Report on page 30 of
this report, or on our website.

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ESG organization
The Board of Directors
The Board consists of seven members with extensive
Board of Directors
international experience and expertise spanning the
finance sector and a range of global industrial companies.
Its composition provides both the capacity and diversity
needed to ensure independent evaluations of the
Audit & Sustainability Committee
Group’s operations in the best interests of all
shareholders, while maintaining effectiveness as a
governing body. The Board is structured to operate
independently of any special interests. Five of the
shareholder-elected members, representing 71%— are
Group Executive Team
independent of the Company’s executive management,
material business relationships, and major shareholders.
The Board currently has 43% female representation.
Among its two sub-committees, the Audit & Sustainability
Committee is fully female (100%), and the Remuneration
ESG Steering Committee
Committee has 50% female representation. The Board
does not include any executive members.
EVP Legal &
Government Affairs
EVP Market
Expansion
SVP Systems
Engineering
Group Finance
Group ESG &
Compliance (Chair)
Representation of employees or other workers
Hexagon Composites ASA has less than 30 employees.
According to the Norwegian Limited Liability Companies
Act, the employees may not require formal representation
in the Company’s Board of Directors. However, the
Projects and execution
ESG compliance and reporting
administration is represented by the CEO and CFO in all
board meetings and these executives are responsible for
representing the Company’s employees, including all
Net zero impact projects
Environment
VP ESG & Corp.
compliance
Social
Sr. Director
Communications
Governance
EVP Legal & Government
Affairs
consolidated entities and other workers as part of their
group wide positions and responsibilities.

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Hexagon’s ESG organization
Our ESG organization is supported by the Executive Team and the
CEO. The highest decision-making responsibility for sustainability is
with the company’s Board of Directors and sustainability is included
in the Board’s annual strategy process, half year reporting, as well as
the quarterly reporting to the Board’s Audit & Sustainability
Committee (A&S Committee). The A&S Committee is mandated by
the Board to maintain regular oversight of impacts, risks and
opportunities, development of annual ESG performance indicators
as well as tracking of progress towards key targets. The A&S
Committee also reviewed and supported the Administration’s
approach and assessment of impacts, risks and financial materiality
of the sustainability matters.
In 2024, Hexagon established an ESG Steering Committee, chaired
by the CFO. After the appointment of an Interim CFO in November
2025, the VP ESG & Corporate Compliance took over as Chair. The
Committee comprises five senior leaders representing Finance,
Operations, Engineering, Legal & Government Affairs, and ESG &
Compliance. Acting on behalf of the Executive Team, the Committee
is mandated to make decisions related to sustainability
management, budgeting, and ESG strategy execution. This includes
resource allocation, alignment with business priorities, and oversight
of target-setting for material impacts, risks, and opportunities.
In addition, the ESG Steering Committee serves as the governing
body for major sustainability initiatives, monitors progress toward
ESG objectives on a quarterly basis, and ensures accountability for
achieving the Company’s Science Based Targets and its roadmap to
Net Zero. The Committee reports regularly to the Executive Team
through scheduled executive meetings.
The team made significant progress in further establishing and
driving our ESG initiatives in 2025, including delivering the
company’s first CSRD compliant sustainability statement. The
leaders of Hexagon’s Environmental, Social and Governance efforts
established concrete action plans and targets for the work and
priorities within their areas including milestones throughout the
year. The net zero impact project coordinator is the Sustainability
lead in the largest business area, working in close cooperation with
the various project owners. The main owner of the projects is the
COO and progress is being reported quarterly to the ESG Steering
Committee.
In Hexagon, the leaders of the Environmental, Social and
Governance efforts are all working in cross functional leadership
roles that partner with the business units to improve Hexagon’s ESG
efforts and drive innovative solutions that support our material
topics and net zero commitment. The production sites have
dedicated resources and cross functional teams, including the
Environmental team (E-team) which support the development of the
relevant strategies and targets and implement them in local
operations. The E-team is driving several environmental initiatives
and projects to support Hexagon’s near-term and net zero emission
reduction targets, as well as ensuring best practices sharing across
sites and driving our sustainability culture.
Hexagon have dedicated controls and procedures in place to
manage the impacts, risks, and opportunities. These include ESG risk
assessments with related mitigation plans, and various monitoring
activities as described in our Internal Control Protocol for non-
financial reporting. The ESG team works integrated with the Finance
team and the VP ESG is working closely with the Company’s main
functions to ensure that these controls are integrated. In addition,
the key functions: Procurement, Engineering and Operations are
reporting to the COO who until 1 October was a member of the ESG
Steering Committee and has supported the oversight of integrating
controls and procedures across the Company.
The Chair of the Audit & Sustainability Committee holds overall
responsibility for integrated sustainability reporting in a large
publicly listed company and serves as a key resource on
sustainability matters for the Board. The Executive Team brings a
broad range of expertise essential for assessing material impacts,
risks, and opportunities, including experience in automotive
manufacturing, operations and engineering, finance, mergers and
acquisitions, commercial, strategy, and environmental law and
government affairs.
To support this work, the Executive Team relies on the ESG Steering
Committee and its dedicated Projects & Execution Team, which
includes the E-Team and Compliance & Reporting sub-teams. These
groups comprise global and regional resources from multiple
locations and possess deep experience across engineering
disciplines, quality management, operations, health and safety,
human resources, sustainability, finance, ESG reporting, and
compliance. In addition, Hexagon engages reputable external
consultants on various ESG topics, ensuring access to specialized
expertise when needed. Both the ESG Steering Committee and the
A&S Committee have been kept up to date on the ongoing changes
to CSRD/ESRS reporting requirements.

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ESRS 2 GOV-2 Information provided to and sustainability matters addressed by
the business’s administrative, management and supervisory bodies
The A&S Committee and Executive Team are informed quarterly by
the VP ESG about material Impacts, Risks and Opportunities, the
implementation of due diligence, and the results and effectiveness
of related policies, actions, metrics, and targets. These presentations
are reviewed during scheduled meetings, ensuring comprehensive
oversight and informed decision-making. The full Board are
presented with a summary from the A&S Committees quarterly
review, as well as an annual presentation of relevant ESG topics
according to the Board’s annual plan.
Impacts, risks, and opportunities are integrated into the business
strategy discussions, major transactions, and risk management
processes. The consideration of various sustainability matters such as
health & safety, working conditions, GHG reduction commitments or
programs, and environmental risks are part of our due diligence
process when assessing investment opportunities including
prospective acquisitions. These considerations involve analysis that
assesses trade-offs associated with various impacts, risks, and
opportunities to make informed decisions aligned with sustainability
objectives.
During 2025, the main IROs addressed by governance bodies were
related to climate risk, energy usage, GHG reductions and targets,
and how we work with suppliers on their sustainability targets,
corruption and bribery, health and safety, human rights due
diligence, workforce development and training.
ESRS 2 GOV-3 Integration of sustainability-related performance in incentive
schemes
Hexagon’s Guidelines for remuneration of the executive
management is prepared by the Board of Directors in accordance
with the Norwegian Public Limited Liability Companies Act Section
6-16a and related regulations. It is required by Norwegian law for the
guidelines to be considered and approved by the General Meeting
upon any material changes and at least every fourth year. The
Company’s Guidelines for remuneration of the executive
management and the Board of directors were approved by the
General Meeting in May 2025 and are available on Hexagon’s
website.
The components and total package of remuneration strive to
support Hexagons’ competitiveness as an employer in all locations.
Remuneration for Executives has been designed to comply with
established local practice and mandatory rules in the jurisdiction of
their employment, taking into account, to the extent possible, the
overall purpose of the remuneration policy.
Elements of Executive remuneration in Hexagon
The remuneration for Executives in Hexagon are described in detail
in Hexagon’s Remuneration Report for 2025 and the Remuneration
Guidelines for Executives and the Board, both available on
Hexagon’s website.
Remuneration includes all benefits a person receives by virtue of
their position as an Executive in Hexagon. This includes, in principle:
a. fixed salary,
b. bonuses,
c. allotment of shares, warrants, options and other forms of
remuneration related to shares or the development of the share
price in the company,
d. pension schemes, early retirement schemes and
e. all forms of other variable elements in the remuneration, or special
benefits that are in addition to the fixed salary.
In 2025 Bonuses, or variable cash salary for Executives, were based
on a set of predetermined and measurable performance criteria,
reflecting the key drivers for pursuing Hexagon’s business strategy,
long-term interests, and sustainable business practices. The
performance criteria consisted of performance indicators both for
Hexagon’s and business areas’ overall and for individuals’
performance. In 2025, variable cash salaries were based 50%-70% on
financial parameters related to EBITDA, and 30%-50% on operational
and ESG-related parameters. Specific sustainability related targets
for 2025 included retention and detailed roadmaps for scope 1&2-,
and scope 3 emissions to model specific actions toward 2033 and
2050 to meet net-zero SBTi targets. See the 2025 Remuneration
report for further details on executive remuneration.
Sustainability-related performance metrics are included in the
Guidelines for remuneration under the description of variable cash
salary, i.e., cash bonuses: Performance indicators may include
financial and non-financial performance parameters. Non-financial
parameters may include a range of strategic objectives including
ESG targets. For further details, see Guidelines for remuneration of
executive management 2025 on Hexagon’s website. Climate related
considerations were in 2025 not factored into the remuneration of
executive management.

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GENERAL INFORMATION
Core elements of
Due Diligence
ESRS2 GOV-4 Statement on due diligence
The table shows a mapping of how Hexagon
incorporates the core elements of due diligence
and identifies where they are presented in this
Sustainability Statement.

CORE ELEMENTS OF DUE DILIGENCE |  | PARAGRAPHS IN THE SUSTAINABILITY STATEMENT |  | Does the disclosure relate to people and/or the environment?
a) | Embedding due diligence in governance, strategy and business model |  | ESRS 2 GOV-2 |  |  | People and environment
| ESRS 2 GOV-3 |  |  | People and environment
| ESRS 2 GOV-3; E1 |  |  | Environment
| ESRS 2 SBM-3 |  |  | People and environment
| ESRS 2 SBM-3; E1 |  |  | Environment
| ESRS 2 SBM-3; S1 |  |  | People
| ESRS 2 SBM-3; S2 |  |  | People
b) | Engaging with affected stakeholders in all key steps of the due diligence |  | ESRS 2 GOV-2 |  |  | People and environment
| ESRS 2 SBM-2 |  |  | People and environment
| ESRS 2 IRO-1 |  |  | People and environment
| ESRS 2 MDR-P; E1-2 |  |  | Environment
| ESRS 2 MDR-P; E5-1 |  |  | Environment
| ESRS 2 MDR-P; S1-1 |  |  | People
| ESRS 2 MDR-P; S2-1 |  |  | People
| ESRS 2 MDR-P; G1-1 |  |  | People and environment
| S1-2 |  |  | People
| S2-2 |  |  | People
c) | Identifying and assessing adverse impacts |  | ESRS 2 IRO-1 |  |  | People and environment
| ESRS 2 SBM-3 |  |  | People and environment
| ESRS 2 SBM-3; E1 |  |  | Environment
| ESRS 2 SBM-3; S1 |  |  | People
| ESRS 2 SMB-3; S2 |  |  | People
d) | Taking actions to address those adverse impacts |  | ESRS 2 MDR-A; E1-3 |  |  | Environment
| ESRS 2 MDR-A; E5-2 |  |  | Environment
| ESRS 2 MDR-A; S1-4 |  |  | People
| ESRS 2 MDR-A; S2-4 |  |  | People
| G1 |  |  | People and environment

CORE ELEMENTS OF DUE DILIGENCE |  | PARAGRAPHS IN THE SUSTAINABILITY STATEMENT |  | Does the disclosure relate to people and/or the environment?
e) | Tracking the effectiveness of these efforts and communicating |  | ESRS 2 MDR-T;E1-4 |  |  | Environment
| ESRS 2 MDR-T;E5-3 |  |  | Environment
| ESRS 2 MDR-T;S1-5 |  |  | People
| ESRS 2 MDR-T;S2-5 |  |  | People
| ESRS 2 MDR-M: G1-5 |  |  | People and environment
| ESRS 2 MDR-M: E1-5, E1-6 |  |  | Environment
| ESRS 2 MDR-M: E5-4, E5-5 |  |  | Environment
| ESRS 2 MDR-M; S1-6 |  |  | People
| ESRS 2 MDR-M; S1-9 |  |  | People
| ESRS 2 MDR-M; S1-14 |  |  | People
| ESRS 2 MDR-M; S1-16 |  |  | People
| ESRS 2 MDR-M; S1-17 |  |  | People

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Sustainability risk management
GOV-5 Risk management and internal controls over sustainability reporting
Hexagon is exposed to risks associated with
incomplete or inconsistent reporting of
sustainability data, and recognizes that
inaccuracies in sustainability reporting can arise
from manual human error or inaccuracy of data.
The risk assessment is updated annually, and the
highest risks in 2025 are at medium level and
related to health and safety metrics, resource
inflows and scope 3 GHG accounting. To mitigate
these risks, we have established robust internal
controls and processes designed to ensure the
integrity and reliability of our ESG disclosures. For
2025, the implemented controls are mainly
training, and review controls such as monthly
reviews, internal audits and periodic
reconciliations.
As part of our risk management framework, we
conduct an annual risk assessment covering all
key sustainability reporting processes. This
assessment identifies, analyzes, and evaluates
potential risks that could impact the accuracy of
ESG data. Findings are documented and
reported to the ESG Steering Committee and the
Audit & Sustainability Committee at least once a
year, including details on identified risks, their
potential impact and likelihood, and
corresponding mitigation strategies. In addition
to the annual review, continuous monitoring and
reporting mechanisms are in place to promptly
address emerging risks.
Internal training, regular assessments, and
process reviews play a critical role in maintaining
data integrity and ensuring that all ESG claims
and communications are accurate and credible.
Hexagon also performs an internal audit of
numerical data in the sustainability statement at
least annually. Our control framework includes
measures to prevent and detect ESG-related
fraud, such as greenwashing.
To further safeguard data quality, we implement
regular data reconciliation procedures to verify
accuracy and completeness. Any identified errors
are promptly reported and corrected.

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GENERAL INFORMATION
Strategy, business
model and value chain
ESRS 2 SBM-1 Strategy, business model and value chain
Sustainability for Hexagon means generating positive social and environmental
impact and business value through our products and solutions, while at the same
time ensuring that sustainability considerations are embedded throughout our
products, operations and ways of working.
Business model
The production of high-pressure Type 4
composite cylinders is at the core of what we do.
But we have evolved over three decades from a
cylinder manufacturer into a full integrator of
alternative fuel and gas distribution solutions.
Our portfolio of companies offers the full
spectrum of alternative fuel mobility solutions,
including high-pressure tanks and fuel systems
for renewable and compressed natural gas (RNG
and CNG), liquid and bio-liquid natural gas (LNG
and bio-LNG), as well as hydrogen and battery
electric. These solutions enable customers to
make the switch to alternative fuels within two
market segments: commercial vehicles and gas
distribution.
Commercial vehicles
Hexagon is one of the leading global providers of
alternative fuel solutions for commercial vehicles.
Our expertise is key to integrating energy storage
and fuel systems into medium and heavy-duty
trucks, transit, refuse, aerospace and maritime
vehicles. We work with our customers and
partners, global leading OEMs, dealers and fleet
owners, to support and enable their adoption of
low-carbon transportation solutions. Our
solutions are engineered for high performance,
durability, and uncompromised safety, making us
an attractive supplier to fleets looking to displace
diesel vehicles in their decarbonization efforts.
Gas distribution
Hexagon’s high-pressure gas distribution
solutions are essential to alternative fuel supply
chains. Our composite gas distribution solutions
have the largest transport capacity for
compressed gases worldwide- enabling the safe
transport of various gases to users lacking
pipeline infrastructure. This capability is vital for
bringing alternative fuels to the pipeline or
directly to end customers across industries.
Hexagon’s gas distribution business generated
NOK 781 million in revenue in 2025. As the
modules can be used for all types of gases,
Hexagon estimates that approximately 30% of
the revenues from this business were from
transportation of non-fossil gases.

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Strategic focus and future outlook
As we move forward, Hexagon Composites
remains committed to driving the energy
transition and supporting our customers in their
journey towards sustainability. Our strategic
focus on high-pressure industrial gases and
alternative fuels positions us well to capitalize on
the growing demand for clean energy solutions.
Our solutions largely leverage Type 4 composite
technology. While our solutions represent a
sustainable alternative, with a proven lifetime of
20+ years, we acknowledge that one of the main
challenges ahead is that there are currently no
sustainable end-of-life handling solutions for
composite cylinders. Hexagon is actively working
on developing improved recycling applications
and we believe that, through global efforts and
partnerships, new recycling methods can be
commercialized worldwide within the next
decade.
We recognize the importance of our position as
an industry leader and are working with
stakeholders across and beyond our industry to
ensure the safety, sustainability and success of
our products and operations. We will continue to
invest in research and development to enhance
our product offerings and explore new
opportunities in emerging markets.
Headquartered in Norway, Hexagon has 872
employees across Europe and North America. The
total revenue in 2025 was NOK 2 955 million.
Our goal is to be at the forefront of the energy
transition, providing innovative solutions that
support our customers’ decarbonization targets.
At the end of December 2025, our solutions are in
operation in over 100 000 commercial vehicles
and 2 200 gas distribution modules.
>100 000
COMMERCIAL VEHICLES
2 200
GAS DISTRIBUTION MODULES

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Value chain

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GENERAL INFORMATION
Interests and views of stakeholders
ESRS 2 SBM-2 Interests and views of stakeholders
Hexagon Composites’ stakeholders are integral to our sustainability journey.
Engaging transparently and effectively is essential to achieving our sustainability
goals and our Group’s mission of driving energy transformation.
Stakeholder engagement
Multiple teams across our business are responsible for engaging with key stakeholder groups, these
include our ESG Steering Committee, Executive Management team, HR team, Sales team, Finance team,
and employees across our business. We ensure that the views and interests of affected stakeholders
regarding our sustainability-related impacts are regularly communicated to our ESG Steering Committee,
at a minimum half-yearly through committee meetings.
We prioritize fostering open dialogue and building trust to ensure that our actions align with the
expectations and needs of our diverse stakeholder groups. This engagement not only informs our strategic
direction but also strengthens our business model, ensuring that we remain responsive and adaptive to the
evolving alternative fuels landscape that we operate in. This is even more important in a year, such as 2025,
with such significant industry and macro-economic uncertainty.

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The table below summarizes how we engage with our key stakeholders, the purpose and key topics of those engagements and their outcomes. The insights gained from these engagements inform our due diligence
processes and double materiality assessment. The interests and views of our stakeholders are integrated into the DMA, detailed in the IRO-1 subchapter.
Engagement with the stakeholders ensured the continuity of the strategy in 2025.

| Stakeholder |  |  | Purpose |  | Key Topics | Engagement | Outcome
| Employees and potential employees |  |  | To cultivate a healthy and committed workforce, and empower our people and their expertise |  | • Workforce development • Occupational health and safety • Work-life balance • Diversity and inclusion • Local community relations | • Townhalls • Strategy updates • Employee feedback and engagement surveys • Workplace social media and intranet • Community volunteer events • Celebrations for milestones and achievements (for example: safety, quality, production) • Training and skills development • Grievance system | • Launch of Talent Development Cycle program • Internal policy updates • Refreshed well-being initiatives • Views informed strategic priorities and must-win-battles
| Customers |  |  | To enhance product quality, service efficiency, and practices that ensure customer needs and long-term satisfaction |  | • Product quality • Service efficiency • Sustainability practices • Product lifetime • Responsible procurement • Human rights in our supply chain | • Emails and meetings • Site visits • Conferences and industry events • Websites • Reports and presentations • Press releases • Customer satisfaction surveys and scorecards | • Product/service improvements Development and launch of new products and offerings • Joint projects on product innovation and lifecycle assessments • Advising and delivering alternative fuel solutions
| Owners, analysts, investors and financial community |  |  | To provide transparent and timely information on financial performance and sustainability practices, ensuring informed investment decisions and fostering trust |  | • Financial performance • EU taxonomy • External ESG ratings • Responsible procurement • Anti-corruption and integrity • Corporate Governance and compliance • ESG risk management | • Financial presentations & stock exchange releases • Annual General Meeting • Sustainability and annual report • Meetings, conferences, and roadshows • Website | • Successful and oversubscribed capital raise • Deliver transparent sustainability performance through comprehensive GHG emissions disclosure (Scopes 1–3), validated ESG ratings and assurance, and robust governance aligned with CSRD and ESRS requirements. • Responses to investor queries

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| Stakeholder |  |  | Purpose |  | Key Topics | Engagement | Outcome
| Partners and suppliers |  |  | To share best practice, ensure responsible procurement, and uphold integrity and human rights in our supply chain |  | • EcoVadis scorecard Responsible procurement • Human rights in our supply chain • Anti-corruption and integrity • Sustainability sourcing | • Supplier questionnaires • Quarterly Business Reviews (QBRs) with top suppliers • Supplier visits and audits • Workshops • Meetings and industry events | • Expanded supplier sustainability program with more rigorous assessments • Ecovadis sustainability scorecards • Monthly supplier performance scorecards • ESG workshops with partners and suppliers • Adherence to Hexagon Composites’ business conduct standards • Continued periodic training exercises to promote and ensure employee engagement • Expanded due diligence process further into supply chain
| National/ international regulators, NGOs and governments |  |  | To ensure regulatory compliance, promote environmental and safety standards, and foster collaboration for sustainable development |  | • Regulatory compliance • Environmental impact • Safety standards • Responsible procurement • Anti-corruption and integrity • Human rights in our supply chain • Local community relations • Technology-neutral laws and regulations | • Partnerships • Conferences • Community and industry events • Public forums • Direct consultations • Industry initiatives • Committees and industry advisory boards • Legislators, policy makers and regulators | • Ensuring compliance with regulation in the markets in which we operate • Continued periodic training exercises Develop and promote adoption of best in classing industry standards on safety • Improved transparency in reporting • Traction with policy makers and stakeholders about advantages of vehicles running on CO2 neutral fuels • Engagement with legislators on tax incentives to promote economic parity among clean fuel technologies Work on a stakeholder report which provides an analysis of the availability of sustainable feedstocks for renewable fuels use in transport

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GENERAL INFORMATION
Material assessment process
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model
In 2025, Hexagon updated its double Materiality Assessment (DMA). The process
involved engaging with stakeholders, including employees, suppliers, and financial
market, to identify Hexagon’s key sustainability impacts, financial risks and
opportunities.
Engagement methods included meetings, workshops as well as additional research. The identified material
impacts, risks, and opportunities from the assessment are detailed alongside the topical ESRS E1 Climate
change, E5 Circular Economy, S1 Own workforce, S2 Workers in the value chain, and G1 Business conduct
within this sustainability statement. From the DMA update, the material topical standards remain
unchanged from our 2024 sustainability statement. However, the overall number of material IROs has been
reduced from 30 in 2024 to 19 in 2025. This reduction reflects an increased understanding and maturity of
our materiality process. Changes to material IROs have occurred across each topical standard, excluding S2
Workers in the Value Chain, and the material IRO related to G1 Business Conduct has also changed. Please
refer to the relevant topical standards throughout this sustainability statement for detailed explanations of
each IRO.
Climate change risks and opportunities
In addition to Double Materiality Assessment a Physical Climate Risk Assessment was conducted in 2023.
Physical climate risks can greatly impact businesses, communities, and individuals, including financial
losses, reduced competitiveness, and increased vulnerability. Consequently, they are crucial factors to
consider in decision-making and risk management, especially in relation to climate change. The Climate
risk assessment process involved four key stages:
1. Hazard screening: Initial screening to
eliminate certain hazards from further
detailed analysis.
2. Climate risk assessment: Evaluating the
exposure of Hexagon’s operations to climate-
related natural hazards.
3. Vulnerability assessment: Analyzing the
potential consequences of identified
exposures.
4. Adaptive actions: Managing material risks.
The analysis focused on Hexagon’s production
and manufacturing sites in Europe and North
America, specifically examining physical climate
risks. In the first phase, several climate-related
natural hazards were identified as the greatest
threats to Hexagon’s sites, including extreme
precipitation and flash flooding; water stress and
drought, and extreme heat. The second stage of
the analysis highlighted two specific hazards at
Hexagon’s US sites: tornados in Lincoln and
extreme wind in Salisbury. Hazards were
identified through surveys, desktop research, and
workshops, considering high emission scenarios.
Although Hexagon’s Physical Climate Risk
Assessment did not initially include the value
chain, we have evaluated the climate risk of our
main carbon fiber supplier using supplier specific
data. Our medium-term objective is to enhance
the climate risk assessment and extend it to
encompass the entire value chain.
Following the Commission’s Quick-Fix regulation,
Hexagon has chosen to omit anticipated financial
effects related to its material risks and
opportunities. As none of Hexagon’s material
risks and opportunities have occurred during the
reporting period, we consider there to be no
current financial effects related to any of our
material risks or opportunities. Over the next
reporting year, we will enhance our processes
while assessing the resilience of our business
model and evaluating the financial effects of our
material risks and opportunities.

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ESRS 2 IRO-1 Description of the processes to identify and assess material impacts, risks and opportunities
Introduction
The identification and assessment of impacts,
risks and opportunities (IROs) are critical
components of Hexagon’s sustainability strategy.
By understanding and addressing these impacts,
risks, and opportunities, the company can
enhance its sustainability performance and
ensure long-term resilience.
A systematic review of the Company’s original
DMA was undertaken during the second and
third quarter 2025 to evaluate the accuracy and
continued relevance of the previously identified
IROs, in light of organizational changes during
the reporting period, and feedback from the
internal stakeholders. This review was further
supported by analysis of additional Company
documents from the relevant reporting period.
Both material and non-material IROs were
reassessed to determine whether adjustments
were warranted. Particular focus was placed on:
• IROs previously assessed as material;
• IROs initially assessed as non-material but
considered to be becoming material over the
short- to medium-term; and
• IROs explicitly linked to the operations and
value chain of the divested Hexagon Ragasco
business segment.
From the original DMA Review the IROs eligible
for reassessment were identified, and the list of
omitted sub-topics was reconfirmed as being
unchanged from the previous assessment.
DMA scoring update
The DMA scoring update was applied to the list of
eligible IROs identified during the DMA review.
For each relevant impact, risk, and opportunity,
the individual scoring parameters were reviewed
and, where necessary, adjusted to reflect
organizational changes and external factors. The
full scoring methodology remains unchanged
from the previous assessment and is
documented below. Thresholds applied in 2024
remain unchanged for the impact materiality
assessment. However, when assessing financial
materiality, thresholds may change slightly year
on year, as financial performance data from the
previous reporting period is used to ensure that
risks and opportunities are assessed against
relevant financial information. In addition,
scoring rationales and IRO descriptions were
reviewed and updated where appropriate, the
updated list of IROs was signed off by Hexagon
Composites Executive Management.
Original DMA Process (2024)
Identification process
The identification of IROs was guided by the
sustainability matters outlined in ESRS 1. IROs
were characterized by their nature (positive or
negative), their status (actual or potential), and
their positioning within either own operations or
business relationships (upstream or
downstream). The process involved a detailed
examination of Hexagon’s value chain, which
includes:
• Upstream Value Chain: Raw materials, Tier 2/3
suppliers, Tier 1 suppliers.
• Own Operations: Manufacturing, development,
and operation.
• Downstream Value Chain: Sales, distribution,
decommissioning, and end-of-life.

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Characteristics of Impacts, Risks and
Opportunities (IROs)
IROs were characterized based on their nature
(positive/negative) and their status (actual/
potential). Additionally, a time horizon was
assigned to each IRO to indicate when its effects
might manifest:
• Short-term: Less than 1 year.
• Medium-term: 1 to 5 years.
• Long-term: More than 5 years.
Assessment methodology
The assessment of IROs was conducted using a
dual approach:
1. Impact Materiality: Evaluating the severity of
Hexagon Composites’ impact on people and
nature, considering factors such as scale,
scope, irremediability, and likelihood.
2. Financial Materiality: Assessing the financial
implications of identified risks and
opportunities, focusing on the financial
magnitude and likelihood of these risks
materializing.
The DMA process identified several key IROs
across Hexagon’s value chain. These IROs were
assessed for their materiality based on the
following criteria:
• Scale: The gravity of the impact.
• Scope: The extent and geographical reach of
the impact.
• Irremediability: The potential for reversing the
impact.
• Likelihood: The probability of the impact
occurring.
Identified IROs were considered material if they
scored above the established materiality
thresholds, applicable to either impact, or
financial materiality. If the IRO scored above the
threshold, the related sustainability matter was
considered material. The materiality thresholds
were based on Hexagon’s enterprise risks
management system and aligned with the ESRS
guidelines giving precedence to severity over
likelihood and lowering the materiality threshold
for impacts connected to human rights.
Materiality determination
IROs were deemed material if they had
significant impact or financial implications. The
materiality thresholds were established based on
Hexagon’s enterprise risk management system,
with adjustments made for human rights-related
impacts in line with ESRS guidelines.
The financial risks from the DMA are integrated
into the overall risk management framework, and
regular DMA updates will continue to enhance
Hexagon’s risk management process.
Internal controls and documentation
All assessments and findings were documented
in an IRO Workbook, which was quality-assured
by third-party experts and approved by Hexagon.
The contents of the workbook were transferred to
a digital solution for ongoing monitoring and
audit purposes.

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The DMA process included the following steps
1. Mobilization
The initial step focused on preparing the
groundwork for the DMA. Key activities included
identification and onboarding of internal experts,
calibration of IRO workbook and an employee
survey.
2. Initial materiality assessment
The purpose of the second step was to develop
and calibrate a long list of sustainability matters,
identify IROs for assessment, and complete an
initial assessment. Key activities included
developing and calibrating a sector-agnostic
long list of ESRS sustainability matters and initial
assessment by internal experts.
During this process, connections between impacts
and dependencies, as well as the risks and
opportunities arising from them, were carefully
considered. This ensured that the comprehensive
list accurately reflects the organization’s
sustainability context and potential material topics.
3. Calibration of internal assessment
The third step involved reviewing the initial
assessment results and making necessary
adjustments. Key activities included workshops
with internal experts and updates and
adjustments.
4. Stakeholder engagement
The purpose of this step was to consult with and
get independent input from impacted parties
and users of the information.
5. Executive sign-off
The findings and the process of the DMA were
presented to Hexagon Composites’ Executive
Team. Executive sign-off ensured that the
Executive Team was informed and approved the
findings.
6. Finalization and documentation
The final step involved completing the project
and handing over the documentation to
Hexagon Composites. Key activities included
documentation and the digital solution that will
ensure and support the ongoing monitoring and
auditing process.
Process for identifying climate
related physical risks
Climate related physical risks
In the second half of 2023, Hexagon performed a
physical climate risk assessment covering all its
manufacturing sites in Europe and North America
to identify and assess climate-related physical
risks in its own operations.
Based on medium-term (2030) calibrated hazard
probabilities and associated financial impacts,
tornado and extreme wind risks were identified as
material at two manufacturing sites in the United
States. Under the high-warming scenario,
tornado risk is expected to increase towards 2050,
while extreme wind risk is expected to remain
broadly unchanged. No assets or activities were
identified as incompatible with a transition to a
climate-neutral economy.
Where material physical risks were identified,
climate adaptation measures are required under
the EU Taxonomy. Hexagon has existing health
and safety controls in place and expects to
finalize and implement site-specific adaptation
measures during 2026.
A greenhouse gas emission source screening was
conducted in parallel to support the identification
of climate-related impacts in line with ESRS E1-6
and was refined through the double materiality
assessment.
The Audit & Sustainability Committee is informed
quarterly on material impacts, risks, and
opportunities. The double materiality assessment
is reviewed annually and approved by the
Executive Team as well as discussed with the
Audit & Sustainability Committee and presented
to the full Board of Directors.

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Material impacts, risks and
opportunities
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model
The identified material impacts, risks, and opportunities from the assessment
are detailed alongside the topical ESRS E1 Climate change, E5 Circular
Economy, S1 Own workforce, S2 Workers in the value chain, and G1 Business
conduct within this sustainability statement.
The following table describes the identified material impacts, risks and opportunities and their
interaction with strategy and business model across our value chain.

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|  |  |  |  | Value chain direction |  |  |  | Value chain position |  |  |  | Time horizon |
E1 Climate change |  |  |  |  |  |  |  |  |  |  |  |  |  |
Climate change mitigation |  |  |  |  |  |  |  |  |  |  |  |  |  |
Growing market demand for alternative fuel solutions |  | Potential opportunity |  |  | Downstream |  |  |  | Sales |  |  |  | Medium-term |
Hexagon Composites produces cylinders for CNG/RNG that allow clients to replace fossil fuel with non/low-carbon fuels. This could therefore reduce the emission with clients, and Hexagon Composites thus has an indirect positive impact on climate change mitigation. |  |  |  |  |  |  |  |  |  |
Direct and indirect CO2 emissions (scope 1 and 2) |  | Actual negative impact |  |  | Own activities |  |  |  | All own activities |  |  |  | Short-term |
Hexagon’s use of fossil fuels in our manufacturing operations has an actual negative impact on the environment through direct CO₂ emissions (scope 1) totaling 2 507 tCO2eq during 2025. Hexagon also has an actual negative impact on the environment through indirect CO₂ emissions (scope 2) from purchased electricity, steam, heating and cooling used in our own operations. This is subject to the type of energy used as fossil fuels contribute to climate change and thus have a negative effect on the environment. In 2025, our market-based CO₂ emissions from scope 2 totaled 2 271 tCO₂eq. |  |  |  |  |  |  |  |  |  |
Indirect CO2 emissions upstream and downstream activities (scope 3) |  | Actual negative impact |  |  | Upstream |  |  |  | Tier 1 suppliers |  |  |  | Short-term |
Hexagon has an actual indirect negative impact on the environment through CO2 emissions in its upstream value chain and downstream value chain, which totaled 150 099 tCO₂eq in 2025. Purchased goods and services in our upstream value chain were the main contributor with 95 021 tCO₂eq. The second-largest contributor was emissions from equity investments, primarily driven by our investments in Hexagon Purus and Worthington SES, which totaled 25 138 tCO₂eq, followed by emissions from the use of sold products in our downstream value chain, which totaled 14 580 tCO₂eq in 2025. |  |  |  |  |  |  |  |  |  |
Client emissions reduction |  | Potential positive impact |  |  | Downstream |  |  |  | Sales |  |  |  | Short-term |
Hexagon produces cylinders and fuel systems for CNG/RNG vehicles that enable clients to replace fossil fuels with lower- or negative-carbon fuels. This can reduce our customers’ CO₂ emissions, and Hexagon thus has a potential indirect positive impact on climate change mitigation. |  |  |  |  |  |  |  |  |  |
Climate change adaptation |  | Potential physical risk |  |  | Own activities |  |  |  | Operations |  |  |  | Long-term |
Tornados and extreme winds. |  |  |  |  |  |  |  |  |  |
Lincoln, NE is one of the most tornado-prone areas of the USA. A direct hit from a major tornado is a catastrophic event. Extreme wind, particularly from tropical cyclones in the Eastern US, is also a regularly occurring natural hazard. |  |  |  |  |  |  |  |  |  |

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|  |  |  |  | Value chain direction |  |  |  | Value chain position |  |  |  | Time horizon |
E1 Climate change |  |  |  |  |  |  |  |  |  |  |  |  |  |
Energy |  |  |  |  |  |  |  |  |  |  |  |  |  |
Energy consumption |  | Actual negative impact |  |  | Own activities |  |  |  | Operations |  |  |  | Short-term |
Hexagon Composites has an actual direct negative impact on the environment through our energy consumption. Most energy consumption is directly linked to our operational and manufacturing activities. Energy consumption is considered to have a negative impact on the environment as energy production and consumption can cause air pollution, water pollution and stress, thermal pollution and solid waste disposal. This ultimately contributes to global warming and climate change. |  |  |  |  |  |  |  |  |  |
E5 Circular economy |  |  |  |  |  |  |  |  |  |  |  |  |  |
Resource inflows, including resource use |  |  |  |  |  |  |  |  |  |  |  |  |  |
Raw material in products |  | Actual negative impact |  |  | Upstream |  |  |  | Raw materials |  |  |  | Short-term |
Hexagon Composites has a direct and actual negative impact on circular economy through the raw materials used in our products. Most of the raw materials used are non-renewable, including carbon fiber, glass fiber, plastics, aluminum, stainless steel, and binding materials. Hexagon Composites' input materials used in 2025 had an estimated recycled content of 19% by weight. |  |  |  |  |  |  |  |  |  |
Resource outflows |  |  |  |  |  |  |  |  |  |  |  |  |  |
Product life extension |  | Potential positive impact |  |  | Downstream |  |  |  | End-of-life |  |  |  | Long-term |
Digital Wave’s requalification solution has a potential positive impact on the environment as it requalifies cylinders using Modal Acoustic Emission (MAE), allowing cylinder life extension. With extended life, Digital Wave can directly reduce the waste or pollution from the disposal of cylinders. |  |  |  |  |  |  |  |  |  |
Material recyclability |  | Potential negative impact |  |  | Downstream |  |  |  | End-of-life |  |  |  | Long-term |
Hexagon Composites has a potential negative impact on the environment directly through possible significant waste created at the end of life of our products. While the metal components of our products are readily recyclable, recycling options for carbon fiber composites are few and limited in capacity. Hexagon Composites is thus unable to ensure our products are recycled at end of life, resulting in landfill waste. |  |  |  |  |  |  |  |  |  |

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|  |  |  |  | Value chain direction |  |  |  | Value chain position |  |  |  | Time horizon |
Waste |  |  |  |  |  |  |  |  |  |  |  |  |  |
Direct hazardous and non-hazardous waste generation |  | Actual negative impact |  |  | Own activities |  |  |  | Manu- facturing |  |  |  | Medium-term |
Hexagon Composites has a direct and actual impact on the natural environment through generation of hazardous and non-hazardous waste in our operations, which can contribute to climate change through emissions and pollution of soil and water. Hazardous waste has been identified using Hexagon Composites' own assessment and guidance from local regulations at sites and includes acetone, paint, mold release rags, varnish, glue, aerosol cans, toner cartridges, used oil, oil filters and absorbents, and e-waste such as bulbs, fluorescent tubes, batteries and EL cables. Non-hazardous waste includes scrap produced during production, distribution and testing, including materials such as carbon fiber, cardboard, paper, plastic, wood, metal, glass, food waste and all other waste not classified by Article 57 of Regulation (EC) 1907/2006 (REACH). |  |  |  |  |  |  |  |  |  |
Indirect hazardous waste generation |  | Actual negative impact |  |  | Upstream |  |  |  | Entire upstream supply chain |  |  |  | Medium-term |
Hexagon Composites has an indirect and actual impact on the natural environment through hazardous waste generation that occurs in our upstream and downstream activities. This can cause pollution of air, soil, and water, and inflict harm on biodiversity. |  |  |  |  |  |  |  |  |  |

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|  |  |  |  | Value chain direction |  |  |  | Value chain position |  |  |  | Time horizon |
S1 Own workforce |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equal treatment and opportunities for all |  |  |  |  |  |  |  |  |  |  |  |  |  |
Diversity in own operations |  | Potential negative impact |  |  | Own activities |  |  |  | All own activities |  |  |  | Short-term |
Hexagon has an actual and direct impact on its own workforce related to diversity and non-discrimination in its own operations. Lack of diversity (age, race, nationality, gender identity, sexual orientation, religion, political belief, etc.) in the workplace can increase the risk of discrimination and may lead to failure to receive a variety of inputs and opinions in company decisions overall. |  |  |  |  |  |  |  |  |  |
Workforce training in own operations |  | Actual negative impact |  |  | Own activities |  |  |  | All own activities |  |  |  | Short-term |
Hexagon has an actual and direct impact on its own workforce related to training and skills development in its own operations. Receiving insufficient training (both initial training and upskilling) can result in workers not performing their job sufficiently while also increasing the likelihood of a related health and safety incident. |  |  |  |  |  |  |  |  |  |
Working conditions |  |  |  |  |  |  |  |  |  |  |  |  |  |
Health and safety in own operations |  | Actual negative impact |  |  | Own activities |  |  |  | All own activities |  |  |  | Short-term |
Hexagon has a direct and actual impact on its own workforce related to health and safety in all stages of manufacturing processes and operational activities (complex machinery and industrial processes, rapidly moving equipment, heat, caustic chemicals, and pressurized gas which can cause potential negative impact on people and society if not managed well). |  |  |  |  |  |  |  |  |  |

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|  |  |  |  | Value chain direction |  |  |  | Value chain position |  |  |  | Time horizon |
S2 Workers in the value chain |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other work related rights |  |  |  |  |  |  |  |  |  |  |  |  |  |
Child labor in the supply chain |  | Potential negative impact |  |  | Upstream |  |  |  | Entire upstream value chain |  |  |  | Short-term |
Hexagon has a potential indirect impact on child labor through its value chain as some raw minerals identified to child labor abuses in certain jurisdictions. For example aluminum and nickel in Indonesia, fibre glass in China. |  |  |  |  |  |  |  |  |  |
Forced labor in the supply chain |  | Potential negative impact |  |  | Upstream |  |  |  | Entire upstream value chain |  |  |  | Short-term |
Hexagon has a potential indirect impact on forced labor through its value chain, as some raw minerals are linked to forced labor abuses and economic exploitation in certain jurisdictions. For example, aluminum and nickel in Indonesia, fibre glass in China. |  |  |  |  |  |  |  |  |  |
Working conditions |  |  |  |  |  |  |  |  |  |  |  |  |  |
Inadequate wages in the supply chain |  | Potential negative impact |  |  | Upstream |  |  |  | Entire upstream value chain |  |  |  | Short-term |
Hexagon has a potential indirect impact on their mineral value chain. Workers in the upstream supply chain, specifically mining, receive low pay and are exposed to dangerous work. Such workers live in geographical locations where their income is below living wage. |  |  |  |  |  |  |  |  |  |
Use of temporary contracts in the supply chain (Social protections) |  | Potential negative impact |  |  | Upstream |  |  |  | Entire upstream value chain |  |  |  | Short-term |
Hexagon potentially indirectly impacts workers in the value chain related to using temporary contracts. Some suppliers within the manufacturing stages of the supply chain may have temporary workers and contractors, which may lead to the risk of losing their jobs and lack of other work benefits and security. |  |  |  |  |  |  |  |  |  |

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|  |  |  |  | Value chain direction |  |  |  | Value chain position |  |  |  | Time horizon |
G1 Business conduct |  |  |  |  |  |  |  |  |  |  |  |  |  |
Social and environmental harm caused by illegal business behavior |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Risk |  |  | Own activities |  |  |  | Entire value chain |  |  |  | Short-term |
Incidents of unethical business behavior such as corruption and bribery can cause legal and reputational repercussions. This may lead to increased cost due to legal procedures and/or fines, and lost opportunities. |  |  |  |  |  |  |  |  |  |

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Environmental
information

In this chapter |
E1 Climate change | 64
E5 Resource use and circular economy | 81
Statement on EU Taxonomy for sustainable economic activities | 91

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Environmental Information
ESRS 2 SBM-3 Material impacts, risks and opportunities and
their interaction with strategy and business model
E1 Climate change

|  |  |  | Value chain direction |  | Value chain position |  | Time horizon
Climate change mitigation |  |  |  |  |  |  |  |
Growing market demand for alternative fuel solutions |  | Potential opportunity |  | Downstream |  | Sales |  | Medium-term
Direct and indirect CO2 emissions (scope 1 and 2) |  | Actual negative impact |  | Own activities |  | All own activities |  | Short-term
Indirect CO2 emissions from upstream and downstream activities (scope 3) |  | Actual negative impact |  | Upstream |  | Tier 1 suppliers |  | Short-term
Client emissions reduction |  | Potential positive impact |  | Downstream |  | Sales |  | Short-term
Climate change adaptation |  |  |  |  |  |  |  |
Tornados and extreme winds |  | Potential physical risk |  | Own activities |  | Operations |  | Long-term
Energy |  |  |  |  |  |  |  |
Energy consumption |  | Actual negative impact |  | Own activities |  | Operations |  | Short-term

Impact, risk, and opportunity management
Climate change impacts
The materiality assessment outlined in ESRS IRO-2 identified the
following material climate change mitigation and energy impacts.
Further details are available under ESRS 2 SBM-3. We are mitigating
our material climate change impacts by following the action plans
outlined in our emissions roadmaps.
Climate change mitigation
Direct and indirect CO2 emissions (scope 1 and 2)
Hexagon’s use of fossil fuels in our manufacturing operations has an
actual negative impact on the environment through direct CO₂
emissions (scope 1) totaling 2 507 tCO2eq during 2025. Hexagon also
has an actual negative impact on the environment through indirect
CO₂ emissions (scope 2) from purchased electricity, steam, heating
and cooling used in our own operations. This is subject to the type of
energy used as fossil fuels contribute to climate change and thus
have a negative effect on the environment. In 2025, our market-
based CO₂ emissions from scope 2 totaled 2 271 tCO₂eq.
Indirect CO2 emissions from upstream and downstream activities
(scope 3)
Hexagon has an actual indirect negative impact on the environment
through CO2 emissions in its upstream value chain and downstream
value chain, which totaled 150 711 tCO₂eq in 2025. Purchased goods
and services in our upstream value chain were the main contributor
with 95 021 tCO₂eq. The second-largest contributor was emissions

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from equity investments, primarily driven by our investments in
Hexagon Purus and Worthington SES, which totaled 25 750 tCO₂eq,
followed by emissions from the use of sold products in our
downstream value chain, which totaled 14 580 tCO₂eq in 2025. See
section E1-3 for descriptions of our decarbonization levers and
actions to address this matter.
Client emissions reduction
Hexagon produces cylinders and fuel systems for CNG/RNG vehicles
that enable clients to replace fossil fuel with lower- or negative-
carbon fuels 1. This can reduce our customers’ CO₂ emissions, and
Hexagon thus has a potential indirect positive impact on climate
change mitigation.
Energy
Energy consumption
Hexagon Composites has an actual direct negative impact on the
environment through our energy consumption. Most energy
consumption is directly linked to our operational and manufacturing
activities. Energy consumption is considered to have a negative
impact on the environment as energy production and consumption
can cause air pollution, water pollution and stress, thermal pollution
and solid waste disposal. This ultimately contributes to global
warming and climate change.
Climate change risks
Climate change adaptation
Tornados and extreme winds
The risks associated with adaptation to climate change are linked to
extreme weather events such as tornadoes and strong winds that
pose a physical risk to two of the manufacturing facilities in North
America.
Climate change opportunities
Climate change mitigation
Growing market demand for alternative fuel solutions
Hexagon’s primary climate change mitigation opportunity lies in our
core value proposition of providing low-carbon emission solutions,
which may experience increasing market demand from clients
seeking to reduce their emissions. This growing demand has the
potential to drive higher revenue for the company.
1 Decarbonizing the road ahead with RNG

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E1-1
Transition plan for
climate change mitigation
Hexagon provides alternative fuel systems and
solutions to commercial vehicles and gas distribution
companies around the world. Trucking is considered
a hard-to-abate sector contributing an estimated 4%
of the world’s greenhouse gas emissions, nearly
equivalent to the emissions from both aviation and
shipping combined. The essence of Hexagon’s
business model is to enable fleet owners and
transportation companies to make the switch from
diesel to low-carbon solutions. From the point of
deployment, our solutions have a mitigating impact
on CO2 emissions, benefiting both people and
planet.
Hexagon recognizes that the materials used in our solutions have a
negative impact on the environment through their associated
greenhouse gas emissions from manufacturing, transport, and end-
of-life. We engage our supply base to find ways of improving our
carbon footprint without compromising on the safety of our
solutions. We acknowledge that emissions must be reduced
throughout the value chain to further strengthen our business
model and limit negative environmental impacts. Hexagon
continues to evaluate available methods of composite recycling to
minimize the potential negative environmental effects at our
products’ end of life.
In line with our vision of Clean Air Everywhere and the 1.5-degree
trajectory, Hexagon has defined science-based emissions reduction
targets for scope 1, 2 and 3, and has committed to achieving net-zero
emissions by 2050 as approved by our executive management and
Board of Directors in 2022. Our CO2 emissions reduction targets were
validated by the Science-Based Target initiative in July 2024. See E1-4
for further details about our targets. We do not currently have a
transition plan in place but will target the development of a full
transition plan in accordance with the ESRS for climate change
mitigation, including calculation of OpEx, CapEx and other financial
resources required to implement the plan, in the future.
Hexagon has established detailed roadmaps to achieve our net-zero
targets across all three emissions scopes by 2050 with related action
plans. For scopes 1 and 2, we plan to use decarbonization levers of
energy efficiency, use of renewables and transport fuel switching.
Reducing scope 3, which makes up most of our emissions, will
require close collaboration with our key suppliers. We continue to
use the business sustainability ratings platform EcoVadis to support
structured evaluations and follow-up of our upstream suppliers’
decarbonization efforts. Most of our scope 3 emissions are
generated by key raw materials and other purchased goods and
services that are used in the manufacturing of our products. Thus,
the quantity and type of materials and energy inputs used to build
our products is the main driver of our scope 3 emissions, and we will
use green engineering principles to help us minimize these. Section
E1-3 contains further information on the main levers and actions
planned to support our targets.
Hexagon is not excluded from Paris-aligned benchmarks.
Resilience of strategy and business model
Although Hexagon does not yet have a formal resilience plan to
address the identified risks, the company has allocated resources to
assess facility vulnerabilities and determine necessary infrastructure
upgrades to mitigate physical risks. These efforts were informed by a
physical climate risk assessment conducted in alignment with the EU
Taxonomy’s Do No Significant Harm criteria. To manage transition
risks, Hexagon actively participates in lobbying and initiatives that
promote technological parity, including renewable natural gas2. The
company primarily collaborates with trade associations to influence
policies and regulations that could significantly impact its business.
Through these efforts, Hexagon advocates for policies that support
its purpose, mission and vision.
Hexagon had planned to conduct a comprehensive resilience
analysis in 2025 covering its operations, upstream suppliers and
downstream value chain addressing all material physical and
transition risks. However, this analysis was deprioritized in 2025 due
to personnel resource constraints.
2 Renewable Natural Gas | US EPA

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E1-2
Policies related to climate change mitigation and adaptation
Hexagon’s Environmental, Health and Safety (EHS) Policy defines
our approach to providing safe and healthy working conditions for
our employees, contractors, visitors and anyone who may be affected
by our business operations as well as protecting the natural world by
managing the business in an environmentally responsible manner.
The EHS Policy outlines Hexagon’s responsibilities and expectations
on environment, health and safety, and guides us in evaluation of
material impacts and potential risks and opportunities related to
environmental topics, which are listed under section E1-1.
Our EHS Policy does not specifically refer to climate change
mitigation or adaptation. However, Hexagon has committed to net-
zero emissions by 2050 through our science-based emission
reductions targets (see section E1-4 for details), and our
management commitments include the following:
• Sustain a Zero Impact Environmental Culture and realize our vision
of Clean Air Everywhere through innovative products and
responsible business practices, from sourcing to end-of-life
management, to protect the environment and prevent pollution
• Advance a Zero Impact Sustainable Energy Culture, by making
efficient design, operational and procurement choices to reduce
energy consumption and carbon emissions.
• Drive a Zero Waste Operations Culture to create an ongoing
competitive advantage as a world-class manufacturer.
This policy applies to all employees and is available to all employees
on the company’s intranet and to external stakeholders on
Hexagon’s website. The ESG Steering Committee is responsible for
the EHS Policy, including an annual review which is communicated
to the Executive Team and the Audit & Sustainability Committee. The
local management teams handle implementing and following up
the policy at Hexagon’s sites.
All of Hexagon’s production facilities in North America and Germany
are certified according to the Environmental Management system
ISO 14001. This management system ensures local alignment with
Hexagon Composites’ strategic objectives, compliance with
applicable laws and regulations, drives continual improvement and
enables a systematic approach to our work on environmental and
climate-related topics under our EHS Policy at all our production
sites. Hexagon strives to use renewable energy in our operations and
ensure energy efficiency as well in line with the ISO 50001 Energy
Management standard to which our three North American
production facilities are certified. Hexagon performs regular internal
and external audits to maintain our certifications.
In addition, Hexagon has a Supplier Code of Conduct, which
outlines our expectations for our suppliers regarding environmental
performance, resource efficiency and energy consumption. We ask
that they actively seek to reduce their environmental footprint as well
as ensure efficient and optimized use and consumption of natural
resources with a focus on conservation and recycling practices in
production and maintenance processes. This policy applies to all
Hexagon’s suppliers and is available to them as well as to external
stakeholders on Hexagon’s website. The COO is responsible for the
Supplier Code of Conduct, while the VP Supply Chain and his team
manage the operational follow-up. The Supplier Code of Conduct is
reviewed as needed at a minimum of every three years.
E1-3
Actions and resources in relation to climate change policies
Hexagon is dedicating time and resources to increasing our ability to
adapt to and mitigate climate change.
Climate change adaptation actions
In 2023 and 2024, physical climate risk and vulnerability assessments
were performed for all of Hexagon’s production sites (for further
details, see ESRS 2, IRO-1). The assessment found that two of the
manufacturing sites in the US were exposed to physical climate risk
in the form of extreme wind and tornados. To reduce this risk,
climate adaptation plans are being developed for these sites and will
be implemented within five years in line with the compliance
requirements in the EU Taxonomy regulation.
Our ongoing and planned initiatives relating to optimizing energy
use and sourcing renewable energy will also increase our ability to
adapt to climate change by minimizing our energy consumption and
decreasing our reliance on the grid. Please see the Energy efficiency
and use of renewables section for more details.
Climate change mitigation actions
Hexagon has near-term (target year 2033) and long-term (target
year 2050) science-based emissions reduction targets for scope 1, 2
and 3 emissions as described in section E1-4. In 2025, Hexagon
developed detailed roadmaps with related action plans for our
emissions reduction efforts across all emissions scopes until 2050.
The roadmaps, one for combined scope 1 and 2 emissions and one
for scope 3 emissions, employ a diverse decarbonization approach to
mitigate climate change. The strategies used underpin our current
and future actions and plans to reduce our carbon footprint. Starting

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in 2025, separate CapEx and OpEx budgets have been allocated to
fund the emissions reduction projects.
The following decarbonization levers represent Hexagon’s efforts in
2025, as well as planned actions to achieve our science-based targets
and support our management commitment of sustaining a Zero
Impact Environmental Culture to protect the environment and
prevent pollution.
Energy efficiency and use of renewables
Hexagon is working on a variety of energy-related efforts across our
operations, including energy efficiency projects and transitioning to
low- or zero-carbon fuels. To maintain the ISO 50001 Energy
Management certifications obtained at our US production sites in
2024, we have set annual targets to track and reduce energy use by
at least 2% of the baseline year energy use each year. We are
evaluating how to best phase out our use of fossil fuel-based energy
inputs, including by replacing all propane-powered forklifts at US
production sites with electric forklifts by 2033 and replacing all
propane-burning ovens at our Kassel, Germany site with electric
ovens by 2050.
In 2025, Hexagon had several energy efficiency improvements
planned as part of the ISO 50001 recertification process to reduce
energy consumption and greenhouse gas emissions, and to further
adapt the operations to climate change. The projects completed in
2025 are projected to reduce 160 metric tCO2eq annually and
included implementing lighting schedules, HVAC reduction and
controls, and operational efficiency improvements. Further energy
projects are also planned for 2026, including submetering and LED
lighting installation, air compressor, HVAC and lighting schedule
optimization, and cure oven temperature specification.
Transport fuel switching is another one of our levers for scope 1 and 2
emissions reduction. In 2025, a first CNG-powered FleetCare vehicle
was placed in service. We will continue to look for opportunities to
convert more of these vehicles to CNG for additional savings.
Hexagon has also been focused on beginning to source renewable
energy in our operations. We have been purchasing renewable
energy certificates (RECs) our Kassel and Lincoln sites since 2023 and
at our Centennial site since the start of 2025 for an estimated
market-based emissions reduction of about 5,200 tCO2eq annually.
We continue to investigate options for long-term REC purchase or
alternative sourcing of renewable energy for all our sites, including
installation or sourcing of renewable electricity and renewable
natural gas as it becomes available. In 2025, an in-depth analysis of a
potential solar system purchase in Salisbury was performed. This
included a vendor search, impact analysis and budgetary review with
quotes received. The solar project was postponed until 2026, when
we will reevaluate the purchase. We are also establishing dialogue
with and expecting our energy providers to achieve their planned
decarbonization goals.
Product eco-design
Hexagon considers the environmental aspects of our products
during the R&D stage of product development. In 2025, we
continued to integrate eco-design principles for new products into
our advanced product quality planning process, which is part of our
management system. The principles cover potential impacts on
materials, energy consumption and waste, and are also part of our
project manager training and the project approval template that is
mandatory for all new projects. In 2025, we completed an internal
Life Cycle Assessment (LCA) for our highest running Mobile Pipeline
product to add to our third party-verified LCA for the highest-
running vehicle system, the ProCab 175. These LCAs will support our
emissions reduction quantifications and design evaluation choices
based on GHG impact analysis of the various materials and
components included, to ensure we are designing with both as little
material as possible, and the most sustainably produced materials
available. By applying these principles, we implemented projects to
reduce the amount of carbon fiber, resin and metals in our products,
reducing their GHG footprints. In 2026, we will continue to research
opportunities to reduce the GHG footprint of other key materials
identified through LCAs.
World-class manufacturing (WCM) and waste reduction initiatives
Our WCM program continues to drive improvement to our
production processes to reduce scrap toward our long-term goal of
zero waste to landfill. This goal will directly decrease the emissions
associated with the end-of-life treatment of our waste, as well as the
emissions from replacement materials for scrapped parts. We have
established annual waste audits at all production sites to generate
plans for further waste reduction and improvements to our waste
handling practices, as well as ideas on how to work with our supply
chain on more eco-friendly packaging. See section E5-2 for more
information on our waste reduction actions.

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We continue to partner
with carbon fiber
suppliers to drive
emissions reductions
for our most significant
raw material.
Supply chain decarbonization
Scope 3 emissions are Hexagon’s largest emissions category, and we
depend heavily on our collaborations with suppliers to achieve our
emissions reduction goals. This dependence may lead to challenges
in achieving scope 3 reduction targets according to plan as these
emissions are indirect and require significant efforts from Hexagon’s
suppliers.
In 2025, we continued our work using the upstream supply chain
sustainability evaluation platform EcoVadis in cooperation with our
suppliers to evaluate their sustainability program maturity. Moving
forward, we will continue the dialogue that has been established,
including sharing carbon metrics and assigning specific corrective
actions and targets to further develop our suppliers’ sustainability
policies and practices. We will further be collecting GHG and product
carbon footprint data from larger suppliers, focusing on direct
material suppliers.
We will also continue to partner with key suppliers to drive emissions
reductions for our most significant raw materials and further
formalize collaborations on common sustainability projects such as
reviewing the viability of bio-based feedstock inputs, supporting the
conversion to green energy, and identifying new technical solutions
that enable more efficient, less consumption-based results. To
enhance our partnerships and drive execution of these projects in
support of our stated targets, we have established formal quarterly
meetings with key suppliers.
To affect our downstream supply chain, we developed a system total
lifecycle guide in 2025 that outlines proper end-of-life handling for
our products and encourages refurbishment, repurposing and
recycling where possible to minimize emissions associated with end-
of-life. The lifecycle guide will be presented to customers and
partners and will be available on our website.
The expected GHG emissions reductions of each of our
decarbonization efforts are included in the detailed scope 3
roadmap we developed in 2025. This roadmap also includes near-
and long-term action plans to achieve our science-based emission
reduction targets for 2033 and net-zero by 2050.
Capital Expenditure (CapEx) and Operational Expenditure (OpEx)
In 2025, we committed to investing in specific sustainability projects to
support our near-term science-based emissions reduction targets.
Approximately NOK 8.7 million were classified towards CapEx directly
contributing to the achievement of our sustainability targets, while the
main portion of OpEx have been working hours within engineering
and operations which were classified as salary costs in 2025. This
included investments in energy efficiency and use of renewables,
product eco-design and WCM and waste reduction initiatives.
For 2026, we have shifted our focus to OpEx-based spend and
human capital and thus have no budgeted CapEx related to the
action plans supporting our emissions reductions at various sites
across Hexagon. However, as the main part of the OpEx is related to
working hours on projects described under decarbonization levers, it
is currently challenging to accurately report on OpEx. We are still on
track to meet our long-term objectives despite this and plan to begin
budgeting CapEx to reduce our emissions again in future years.
Reconciliation with KPIs and regulatory requirements
The amounts allocated for CapEx in 2025 were consistent with our
sustainability KPIs.
Resource allocation and implementation dependency
The successful implementation of these actions is contingent upon
the sustained availability and strategic allocation of resources in
Hexagon, including financial investments and technological
innovation, as well as collaboration with our partners and suppliers.
We are committed to the transparent management of these
resources to optimize our impact on climate change mitigation and
adaptation.

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Performance, targets & metrics
E1-4
Targets related to climate change mitigation and adaptation
As part of our net-zero roadmap and in line with the 1.5-degree
trajectory, Hexagon is committed to reducing our direct emissions by
2033 and working with partners and suppliers to be net-zero across
our value chain by 2050. We submitted our first science-based
targets in December 2023 and received validation from the Science
Based Targets initiative (SBTi) in July 2024. Our commitment includes
our material impacts which are direct and indirect CO₂ emissions in
our own operations (scope 1 and 2), as well as indirect CO₂ emissions
(scope 3) both upstream and downstream supply chain. Scope 3
covers all categories in the GHG Protocol except for categories 8, 9,
10, 13 and 14, which were assessed together with external
sustainability consultants and considered not applicable to Hexagon.
For further details on the accounting principles used for our GHG
emissions, refer to section E1-6.
Hexagon’s climate targets
Our climate targets have been defined based on externally available
guidance including relevant manuals from the GHG Protocol and
SBTi and best practices from external consultants’ experiences. The
targets are overseen by the ESG Steering Committee and are owned
by relevant functions such as Procurement, Engineering, Operations
and their local production site teams. The process of setting the
climate targets involved internal resources and external sustainability
consultants; no other external stakeholders were involved. Hexagon
acknowledges that a range of factors might influence the
achievement of our climate targets, such as continued and
successful collaboration with key suppliers, changes in regulatory
frameworks, availability of renewable energy and advancements in
technology. Significant changes in demand or sales volumes may
also influence our ability to reduce our emissions.
Near-term targets
By 2033, Hexagon commits to reducing 54.6% of our absolute scope 1
and market-based scope 2 greenhouse gas emissions, 61% of our
scope 3 GHG emissions per cubic meter of container volume sold,
and 54.6% of absolute scope 3 GHG emissions from the use of sold
products for sold fossil fuels from our base year of 2022. The targets
cover the entirety of our gross scope 1 and 2 emissions. The 2022
baseline values are 11 817 tCO₂eq for scopes 1 and 2 and 210 448
tCO2eq for scope 3. Hexagon considers the baseline year to be
representative of the business except for scope 3, category 15 -
Equity Investments, where the size of such investments increased
significantly in 2024. The emissions baseline will be updated in 2026
to better reflect recent significant changes within the Group and will
be reassessed going forward at a minimum of every five years.
Long-term targets
By 2050, Hexagon commits to reducing 90% of our absolute scope 1
and market-based scope 2 greenhouse gas emissions, 97% of scope
3 GHG emissions per cubic meter of container volume sold and 90%
of absolute scope 3 GHG emissions from use of sold products for
sold fossil fuels from our base year of 2022. These science-based
emissions reduction targets support our management commitments
to sustain a Zero Impact Environmental Culture, advance a Zero
Impact Sustainable Energy Culture and drive a Zero Waste
Operations Culture as described in our EHS policy outlined in
section E1-2. We will achieve our targets through the decarbonization
levers in section E1-3 and other initiatives which will be further
developed along with our transition plan. To ensure consistency, our
reduction targets are set using the same boundaries as our GHG
inventory detailed in section E1-6, following the GHG Protocol and
operational control approach.
Performance
In 2025, Hexagon’s scope 1 and 2 emissions accounted for 3% of our
total GHG emissions (up from 2% in 2024), with purchased electricity
and stationary combustion as the largest categories. Hexagon
targeted an overall reduction of 15% from the 2022 baseline for our
scope 1 and 2 emissions in 2025 and achieved a reduction of 60% in
scope 1 and scope 2 market-based emissions from 2022. The energy
management projects described under section E1-3 are planned to
contribute a reduction of at least 0.5% annually at our US production
facilities moving forward.
Hexagon’s scope 1 and 2 emissions are estimated monthly as utility
use numbers at each of our locations globally are entered into our
EHS Power App reporting system and converted to emissions using

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appropriate emission factors (for section E1-6 Accounting policies,
see page 78). The annual emissions are formally calculated at each
year end in our GHG accounting process (reference section E1-6)
and input to our Excel roadmap of past and projected future
emissions for performance evaluation. We compare actual and
projected emissions against a linear baseline of -5% emissions each
year until 2033 and -2.1% each year from 2033-2050 to ensure
progress is continuing at an acceptable pace. The climate change
actions described under section E1-3 have associated emission
reduction targets to measure and track their effectiveness. The
measurable targets set for 2026 to support our near- and long-term
climate targets will be assessed at half year and year end to measure
the effectiveness to help meet our EHS policy objectives.
GHG emissions targets and decarbonization levers
In 2025, we created two comprehensive roadmaps to plan to meet
our net-zero SBTi targets. Our roadmaps— one for scope 1 and 2
emissions and one for scope 3 emissions— were built with cross-
functional input from our engineering, operations, quality and
supply chain teams. The roadmaps incorporate actual data from 2022
until 2025 from our EHS Power App reporting and GHG accounting,
which is then extrapolated to estimate our future resource use and
associated emissions based on our five-year business plan, our
suppliers' emissions plans and general industry research. These
roadmaps are live models that will be continually adjusted and
improved as new information becomes available. See section E5-3
for our targets regarding further development of these roadmaps.
Once the baseline roadmaps were constructed, we overlaid specific
actions for each decarbonization lever detailed in section E1-3 and
associated emissions reductions on a timeline to help us achieve our
goals. These actions include energy efficiency projects, adoption of
renewable energy and fuel switching for scope 1 and scope 2, and
supplier partnerships, freight optimization and engineering
initiatives to reduce raw materials required for our products for
scope 3. The contributions from the various decarbonization levers
are illustrated and summarized in further detail in the following
illustration and tables. The total quantitative contribution to 2050
emission levers is estimated to be 214 770 tCO₂eq.

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Scope 1 and 2 emissions roadmap
*The intensity metric is a calculated ratio of total Scope 3 emissions divided by the
1000 liters (1 m3) of water volume contained by all of the cylinders sold in the year.
Scope 3 emissions roadmap*

Emissions reduction targets | Base year 2022 | 2030 | 2033 | 2050
Scope 1 & 2 (absolute value, market-based, tCO2eq) | 11 817 | 7 126 | 5 365 | 1 182
Scope 1 & 2 (%) |  | 40% | 55% | 90%
Scope 3 (intensity* reduction target, tCO2eq/m3 sold) | 4.1 | 2.3 | 1.6 | 0.1
Scope 3 (intensity reduction target %) |  | 44% | 61% | 97%
Scope 3 (associated absolute value, tCO2eq) | 210 448 | 117 086 | 82 075 | 6 313
Scope 3 (associated absolute value %) |  | 44% | 61% | 97%
Source: Science Based Targets |  |  |  |

Decarbonization lever | Contribution to 2050 emissions reduction (%) | Contribution to 2050 emissions reduction (tCO2eq)
Energy efficiency and use of renewables | 2% | 4 295
Product eco-design | 22% | 47 249
Low-carbon alternatives for key materials | 23% | 49 397
Supply chain decarbonization | 47% | 100 942
Waste reduction and efficiencies in capital, freight, travel and end-of-life management | 6% | 12 886

GHG emissions (tCO2eq)
222 265
124 176
87 392
7 495
Base year
(2022)
2030
target
2033
target
2050
target
*Excluding Category 15 - Investments emissions

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E1-5
Energy consumption and mix
Hexagon uses electricity, natural gas, propane and remote heat in our operations.
Diesel and gasoline are also used to power company cars. Our accounting policy
details the assumptions, method and data sources used to tabulate our energy
consumption and mix.

| Unit | Hexagon Ragasco 2024 | Hexagon 20241 | Hexagon 2025
Fuel consumption from coal and coal products | MWh | 0 | 0 | 0
Fuel consumption from crude oil and petroleum products | MWh | 32 | 343 | 339
Fuel consumption from natural gas | MWh | 48 | 12 941 | 12 318
Fuel consumption from other fossil sources | MWh | 0 | 0 | 0
Consumption of purchased or acquired electricity, heat, steam, and cooling from fossil sources | MWh | 0 | 3 146 | 3 069
Total fossil energy consumption | MWh | 80 | 16 429 | 15 726
Share of fossil sources in total energy consumption | % | 0% | 54% | 55%
Consumption from nuclear sources | MWh | 0 | 1 761 | 1 504
Share of consumption from nuclear sources in total energy consumption | % | —% | 6% | 5%
Fuel consumption for renewable sources, including biomass (also comprising industrial and municipal waste of biologic origin, biogas, renewable hydrogen, etc) | MWh | 0 | 0 | 0
Consumption of purchased or acquired electricity, heat, steam and cooling from renewable sources | MWh | 4 192 | 12 440 | 11 592
The consumption of self-generated non-fuel renewable energy | MWh | 0 | 0 | 0
Total renewable energy consumption | MWh | 4 192 | 12 440 | 11 592
Share of renewable sources in total energy consumption | % | 98% | 41% | 40%
Total energy consumption | MWh | 4 272 | 30 630 | 28 822

Energy intensity per net revenue |  |
| 2024 | 2025 | % N / N-1
Total energy consumption from activities in high climate impact sectors per net revenue from activities in high climate impact sectors (MWh/NOK million) | 6.28 | 9.75 | 55%
* See the financial statement (page 143) for revenue details. * All Hexagon’s activities are classified under high climate impact sectors. |  |  |

2024 restatement
Our Hexagon 2024 energy use quantities have been restated due to an error
discovered in the data processing.

Metric | Unit | Original 2024 figure | Revised 2024 figure | % Change
Fuel consumption from natural gas | MWh | 126 809 | 12 941 | -90%
Consumption of purchased or acquired electricity, heat, steam, and cooling from fossil sources | MWh | 33 348 | 3 146 | -91%
Consumption from nuclear sources | MWh | 18 662 | 1 761 | -91%
Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources | MWh | 119 228 | 12 440 | -90%
Energy intensity per net revenue | MWh/NOK million | 61.18 | 6.28 | -90%

1Excluding Hexagon Ragasco

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Disclosure Requirement | Accounting Policy
Energy consumption and mix | Energy consumption data is sourced from provider invoices monthly.
Estimates are included in Q4 2025 data as some invoices arrived after the data was compiled. In these cases, the previous month’s energy quantity was used as preliminary data. All our sites and business areas, including Digital Wave and SES Composites, report this data through our internal EHS Power App reporting system.
| E1-5 02 Fuel consumption from crude oil and petroleum products
| Hexagon’s fuel consumption from crude oil and petroleum products includes diesel and gasoline used to power fleet vehicles. Fuel consumption was estimated based on the annual mileage and average fuel economy of each vehicle.
| E1-5 03 Fuel consumption from natural gas
| Natural gas is used for building heating and ovens. Propane, which is used to power forklifts and ovens, was also included in this category. Fuel consumption from natural gas is based on natural gas and propane provider monthly invoices at each site.
| E1-5 05 Consumption of purchased or acquired electricity, heat, steam, and cooling from fossil sources (market-based)
| Our purchased electricity includes a percentage of fossil-derived electricity in the electricity mix, the compositions of which were obtained from each provider. Electricity use is based on provider invoices.
| E1-5 06 Total energy consumption from fossil sources
| The total energy consumption from fossil sources was calculated as the sum of fuel consumption from crude oil and petroleum products, fuel consumption from natural gas and consumption of purchased or acquired electricity, heat, steam and cooling from fossil sources.

Disclosure Requirement | Accounting Policy
| E1-5 07 Total energy consumption from nuclear sources
| Hexagon has no direct nuclear sources of energy, but purchased electricity at some of our sites includes a percentage of nuclear-derived electricity in the electricity mix, the compositions of which were obtained from each provider. Electricity use is based on electric provider invoices.
| E1-5 09 Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources (market-based)
| Purchased electricity at each of Hexagon’s sites includes a percentage of renewably derived electricity, which was obtained from each provider. Renewable energy certificates (RECs) were purchased for electricity at Centennial, Kassel and Lincoln in 2025. Electricity use is based on invoices from the electric company at each site.
| E1-5 11 Total energy consumption from renewable sources
| The total energy consumption from renewable sources is equal to the consumption of purchased or acquired electricity, heat, steam and cooling from renewable sources.
| E1-5 12 Percentage of renewable sources in total energy consumption
| The percentage of renewable sources in total energy consumption was calculated by dividing the total renewable energy consumption by the total energy consumption and converting to a percentage.
| E1-5 13 Total energy consumption related to own operations
| The total energy consumption related to own operations was calculated as the sum of the total fossil energy consumption, consumption from nuclear sources and total renewable energy consumption.

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E1-6
Gross scopes 1, 2, 3 and total GHG emissions
The methodologies, key assumptions and emission factors used to
5%
calculate or measure our GHG emissions are outlined in the
accounting policies on page 78.
Scope 1 emissions
decreased by
Scope 1 and scope 2 emissions
Our absolute scope 1 emissions decreased by 5% to 2 507 tCO₂eq.
Our absolute scope 2 location-based emissions decreased by 7% to
5 293 tCO₂eq, while our market-based scope 2 emissions increased
7%
by 22% to 2 271 tCO₂eq. The increase in market-based emissions was
driven by the addition of the SES Composites site in Slupsk, Poland
Absolute scope 2
location-based
emissions decreased by
for the fourth quarter 2025, as well as increases in the emission
factors for sites not purchasing RECs. Lower activity levels in the
business and our energy efficiency projects in section E1-3
contributed to the decrease in scope 1 and scope 2 location-based
emissions.
43%
Scope 3
Scope 3 emissions account for approximately 97% of Hexagon’s total
Scope 3 emissions
decreased by
emissions. The use of carbon fiber in our products remains the most
significant contributor to our scope 3 footprint. In 2025, emissions
from carbon fiber decreased from the previous year, totaling 43 650
tCO₂eq. Our total scope 3 emissions decreased by 43% compared to
the previous year, primarily due to lower activity in all Hexagon’s
business segments in 2025. In addition, there was a significant
reduction in Category 15 - Investments emissions which was mainly
due to lower business activity in Hexagon Purus.
Data collection
Hexagon has established a robust data collection process, providing
a comprehensive view of our carbon footprint and enabling us to
implement targeted emission reduction strategies. Hexagon’s GHG
accounting is based on data collected from internal systems and
external carbon accounting software. As we currently use the spend-
based method for certain calculations, we acknowledge the risk of
inaccuracy and are actively working to enhance the precision of our
GHG accounting.

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Hexagon Composites GHG Emissions
| Retrospective |  | Milestones and target years
| Base year 2022 | 2023 | 2024 (N-1) | 2025 (N) | %N / N-1 |  | 2030 | 2033 | 2050 | Annual % Target / base year
Scope 1 GHG emissions continuing operations
Gross scope 1 GHG emissions (tCO₂eq) | 3 465 | 2 665 | 2 637 | 2 507 | -5% |  | 2 089 | 1 573 |  | 5%
Percentage of scope 1 GHG emissions from regulated emission trading schemes (%) | 0 | 0 | 0 | 0 |  |  |  |  |  |
Scope 2 GHG emissions continuing operations
Gross location-based scope 2 GHG emissions (tCO₂eq) | 6 694 | 7 657 | 5 701 | 5 293 | -7% |  | 4 036 | 3 039 |  | 5%
Gross market-based scope 2 GHG emissions (tCO₂eq) | 8 352 | 4 445 | 1 863 | 2 271 | 22% |  | 5 036 | 3 792 |  | 5%
Significant scope 3 GHG emissions continuing operations
Total gross indirect (Scope 3) GHG emissions (tCO₂eq) | 210 448 | 213 903 | 266 208 | 150 711 | -43% |  |  |  |  |
1 Purchased goods and services |  |  | 186 016 | 95 021 |  |  |  |  |  |
2 Capital goods |  |  | 6 536 | 6 657 |  |  |  |  |  |
3 Fuel and energy-related Activities (not included in Scope1 or Scope 2) |  |  | 1 936 | 1 742 |  |  |  |  |  |
4 Upstream transportation and distribution |  |  | 6 028 | 4 417 |  |  |  |  |  |
5 Waste generated in operations |  |  | 754 | 584 |  |  |  |  |  |
6 Business traveling |  |  | 1 577 | 1 160 |  |  |  |  |  |
7 Employee commuting |  |  | 1 043 | 755 |  |  |  |  |  |
8 Upstream leased assets |  |  | N/A | N/A |  |  |  |  |  |
9 Downstream transportation |  |  | N/A | N/A |  |  |  |  |  |
10 Processing of sold products |  |  | N/A | N/A |  |  |  |  |  |
11 Use of sold products |  |  | 12 276 | 14 580 |  |  |  |  |  | 5%
12 End-of-life treatment of sold products |  |  | 74 | 46 |  |  |  |  |  |
13 Downstream leased asset |  |  | N/A | N/A |  |  |  |  |  |
14 Franchises |  |  | N/A | N/A |  |  |  |  |  |
15 Investments |  |  | 49 968 | 25 750 |  |  |  |  |  |
Total GHG emissions continuing operations
Total GHG emissions (location-based) (tCO₂e) | 220 607 | 224 221 | 274 545 | 158 510 |  |  |  |  |  |
Total GHG emissions (market-based) (tCO₂e) | 222 265 |  | 270 708 | 155 488 |  |  |  |  |  |
Total GHG emissions discontinuing operations
Total GHG emissions (location-based) (tCO₂e) | 36 203 | 31 143 | 15 381 | 0 |  |  |  |  |  |
Total GHG emissions (market-based) (tCO₂e) |  |  | 17 384 | 0 |  |  |  |  |  |

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GHG intensity per net revenue | 2024 | 2025
Total GHG emissions (location-based) per net revenue (tCO₂eq/NOK million) | 56 | 54
Total GHG emissions (market-based) per net revenue (tCO₂eq/NOK million) | 56 | 53

Quantitative Reconciliation (NOK million) | 2024 | 2025
Net revenue used to calculate GHG intensity | 4 877 | 2 955
Net revenue (other) | 0 | 0
Total net revenue (in financial statements) | 4 877 | 2 955

* See the financial statement (page 143) for revenue details

Quantitative Reconciliation | 2024 | 2025
Biogenic emissions of CO₂ from the combustion or bio-degradation of biomass not included in scope 1 GHG emissions | N/A | N/A
Percentage of contractual instruments, scope 2 GHG emissions | 53% | 66%
Disclosure of types of contractual instruments, scope 2 GHG emissions | Renewable Energy Certificates (REC) | Renewable Energy Certificates (REC)
Percentage of market-based scope 2 GHG emissions linked to purchased electricity bundled with instruments | 53% | 66%
Percentage of contractual instruments used for sale and purchase of energy bundled with attributes about energy generation in relation to Scope 2 GHG emissions | 100% | 100%
Percentage of contractual instruments used for sale and purchase of unbundled energy attribute claims in relation to Scope 2 GHG emissions | —% | —%
Biogenic emissions of CO₂ from combustion or bio-degradation of biomass not included in scope 2 GHG emissions | N/A | N/A
Percentage of GHG scope 3 calculated using primary data | 54% | 39%
Biogenic emissions of CO₂ from combustion or bio-degradation of biomass that occur in value chain not included in scope 3 GHG emissions | N/A | N/A

2024 restatement
The 2024 emissions from use of sold products have been restated to match the updated calculation
method developed in 2025, which utilizes permeation rate and lifespan data for each individual cylinder
sold instead of a blanket assumption across all products to increase the accuracy of this calculation. The
2024 percentage of contractual instruments has also been updated to match the calculation method used
for 2025, based on kWh electricity consumed rather than emissions.

Metric | Unit | Original 2024 figure | Revised 2024 figure | % Change
11 Use of sold products | tCO2eq | 15 558 | 12 276 | -21%
Percentage of contractual instruments, scope 2 GHG emissions | % | 17% | 53% | 212%

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Accounting policies
Hexagon follows the principles and provisions of the GHG Protocol Corporate Accounting and Reporting Standards and our GHG accounting follows the operational control approach. Scope 3 emissions are also reported
based on the GHG Protocol. The emission factors used to calculate scope 1, 2 and 3 emissions are sourced from Hexagon’s carbon accounting software (DEFRA, IEA, Exiobase, EU & DK Input Output Database,
NTMCalc.Advanced and Carbon Data Intelligence) except where supplier- or investment-specific factors are available.

Disclosure Requirement
Scopes 1, 2 and 3 and total GHG emissions
Accounting Policy

Direct GHG emission (scope 1)
Scope 1 emissions cover direct GHG emissions from stationary combustion. Data is collected monthly through an internal data platform.
Indirect GHG emission (scope 2)
Scope 2 emissions cover indirect GHG emissions from the generation of power and heat purchased and consumed by Hexagon. Data is measured in kWh and recorded through an internal data platform. Scope 2 emissions are calculated by multiplying the purchased power volumes by country-specific emission factors, considering any available data on renewable electricity. Location-based emissions are calculated using average emission factors for each country.
Indirect GHG emissions (scope 3)
Hexagon screens its total scope 3 GHG emissions across the 15 categories outlined in the GHG Protocol. Hexagon has identified 10 significant categories for scope 3 emissions, applying the following calculation methods:

Category 1: Purchased goods and services
• Supplier-specific method: Applied for the largest raw-material group (carbon fiber), where a supplier-specific emission factor is available. • Average-data method: Applied to other main raw material groups where purchased volumes are available. Emissions are calculated by multiplying the quantity (kg) of goods by industry-average emission factors. • Spend-based method: For all other purchased goods and services, emissions are calculated by multiplying the economic value by relevant secondary emission factors.
Category 2: Capital goods
Spend-based method: Emissions are calculated by multiplying the economic value of purchased goods by relevant secondary emission factors.
Category 3: Fuel and energy-related activities
Average-data method: Emissions are calculated by applying country- specific emission factors to collected energy consumption data (kWh).
Category 4: Upstream transportation and distribution
Spend-based method: Emissions are calculated by multiplying the economic value of the transportation per transportation type by relevant category-specific emission factors.

Category 5: Waste generated in operations
Waste-type-specific method: Emissions are calculated based on collected weight data in the global EHS data platform. Weight of waste type and treatment method were multiplied by waste treatment- specific emission factors.
Category 6: Business travel
Spend-based method: Emissions are calculated by multiplying the economic value of the business travel by type by relevant category- specific emission factors.
Category 7: Employee commuting
Distance-based method: Available statistics are used to estimate distances traveled and mode of transport by country alongside headcount.
Category 8: Upstream leased assets
This category is excluded as we have only operational leases (short- term or low-value leases are not recognized under IFRS 16).
Category 9: Downstream transportation
These emissions are reported under Category 4.

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Category 10: Processing of sold products
This category is excluded as sold products from the Group are sold directly to end consumers, and there are no intermediate products. There are very limited sources of emissions where systems are installed outside of Hexagon's control.
Category 11: Use of sold products
Direct use-phase emissions: Annual permeation emissions are calculated based on the quantity sold, permeation rate and expected lifespan of each cylinder part number.
Category 12: End-of-life treatment of sold products
Waste-type specific method: Average emission factors for waste disposal and treatment are applied. Total mass of sold products and packaging is sourced from the ERP system, while estimations are used for waste disposal and treatment types. An extra 3% mass sold in 2025 was added to account for packaging and Digital Wave products based on their share of revenue in 2025, and an extra 7% mass sold in 2025 was added to account for SES Composites products based on the number of products sold in the fourth quarter of 2025.
Category 13: Downstream leased assets
This category is excluded as downstream leasing activity is limited to a very small number of containers.
Category 14: Franchises
This category is excluded as the group does not have franchises.

Category 15: Investments
• Investment-specific method: The method is used when scope 1, 2 and 3 emissions data is available from the investee company. This method was used for Hexagon Purus. • Average-data method: When scope 1 and 2 emission data is unavailable, revenue data from the investee company and the sector-specific emission factors are used for emission calculations. This method was used for Cryoshelter, for the first three quarters of 2025 for SES Composites Poland and for the last quarter of the year for Worthington Cylinders GmbH (the remaining joint venture).

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E1-7
GHG removals and GHG mitigation projects
financed through carbon credits
We do not currently use carbon credits, offsets or
external compensation mechanisms to help us
meet our emissions reduction targets. Our
decarbonization strategy is focused on emissions
reductions across scopes 1, 2 and 3 through
projects involving energy efficiency and use of
renewables, product eco-design, world-class
manufacturing, waste reduction and supply chain
decarbonization. We will continue to evaluate the
role of carbon removals and offset mechanisms
as part of our long-term net-zero roadmap,
particularly for addressing residual (less than 10%
of emissions by baseline year for scope 1, scope 2
and absolute scope 3 from use of sold products
for sold fossil fuels, and less than 3% of emissions
per cubic meter of container volume sold of
emissions by baseline year for scope 3) emissions
as allowed by the SBTi where direct reductions
may not be technically feasible.
E1-8
Internal carbon pricing
Hexagon does not currently apply any internal
carbon pricing but may consider it in the future.
E1-9
Anticipated financial effects from material
physical and transition risks and potential
climate-related opportunities
Hexagon is using the phase-in due to the Quick
Fix regulation that extends the phase-in
provision for E1-9 to omit the financial effects
from material physical and transition risks and
potential climate-related opportunities required.

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ESRS 2 SBM-3 Material impacts, risks and opportunities and
their interaction with strategy and business model
ENVIRONMENTAL INFORMATION
E5 – Resource use and

|  |  |  | Value chain direction |  | Value chain position |  | Time horizon
Resource inflows, including resource use |  |  |  |  |  |  |  |
Raw material in products |  | Actual negative impact |  | Upstream |  | Raw materials |  | Short-term
Resource outflows |  |  |  |  |  |  |  |
Product life extension |  | Potential positive impact |  | Downstream |  | End-of-life |  | Long-term
Material recyclability |  | Potential negative impact |  | Downstream |  | End-of-life |  | Long-term
Waste |  |  |  |  |  |  |  |
Direct hazardous and non-hazardous waste generation |  | Actual negative impact |  | Own activities |  | Manufacturing |  | Medium-term
Indirect hazardous waste generation |  | Actual negative impact |  | Upstream |  | Entire upstream supply chain |  | Medium-term

circular economy
Hexagon’s manufacturing processes involve
substances and materials that can potentially cause
harm to the environment if not managed properly.
It is essential for us to understand how our own
consumption affects the planet and focus on what
we can do to minimize our impact.
Impact, risk and opportunity management
Resource use and circular economy impacts
The materiality assessment outlined in ESRS IRO-2 identified the
following material impacts for resource inflows, resource outflows
and waste. Further details are available under ESRS2 SBM-3.
Resource inflows
Raw materials in products
Hexagon Composites has a direct and actual negative impact on
circular economy through the raw materials used in our products.
Most of the raw materials used are non-renewable, including
carbon fiber, glass fiber, plastics, aluminum, stainless steel and
binding materials. Hexagon Composites' input materials used in
2025 had an estimated recycled content of 19% by weight.

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Resource outflows
Product life extension
Digital Wave’s requalification solution has a potential positive impact
on the environment as it requalifies cylinders using Modal Acoustic
Emission (MAE), allowing cylinder life extension. With extended life,
Digital Wave can directly reduce the waste or pollution from the
disposal of cylinders.
Material recyclability
Hexagon Composites has a potential negative impact on the
environment directly through possible significant waste created at
the end of life of our products. While the metal components of our
products are readily recyclable, recycling options for carbon fiber
composites are few and limited in capacity. Hexagon Composites is
thus unable to ensure our products are recycled at end of life,
resulting in landfill waste.
Waste
Direct hazardous and non-hazardous waste generation
Hexagon Composites has a direct and actual impact on the natural
environment through generation of hazardous and non-hazardous
waste in our operations, which can contribute to climate change
through emissions and pollution of soil and water. Hazardous waste
has been identified using Hexagon Composites' own assessment
and guidance from local regulations at sites and includes acetone,
paint, mold release rags, varnish, glue, aerosol cans, toner cartridges,
used oil, oil filters and absorbents, and e-waste such as bulbs,
fluorescent tubes, batteries and EL cables. Non-hazardous waste
includes scrap produced during production, distribution and testing,
including materials such as carbon fiber, cardboard, paper, plastic,
wood, metal, glass, food waste and all other waste not classified by
Article 57 of Regulation (EC) 1907/2006 (REACH).
Indirect hazardous waste generation
Hexagon Composites has an indirect and actual impact on the
natural environment through hazardous waste generation that
occurs in our upstream and downstream activities. This can cause
pollution of air, soil and water, and inflict harm on biodiversity.
Resource use and circular economy risks and opportunities
No material risks or opportunities were identified for resource use
and circular economy topics within Hexagon Composites.
E5-1
Policies related to resource use and circular economy
The management commitments listed in our EHS Policy to guide the
overall function of the company include sustaining a culture of zero
impact on the environment through responsible resource and
energy use, and striving toward zero waste in operations. Our EHS
Policy requires us to make efficient design, operational and
procurement choices to minimize the environmental impact of the
business. Hexagon’s management is responsible for implementing
programs that reduce waste and promote circularity through
continuous improvement and innovation. Part of the promotion of
circularity includes substituting secondary input materials for use in
our products, packaging, and operations where possible. All
employees are expected to minimize waste across all levels of the
waste hierarchy, promote renewable energy use, and conserve
energy and water to optimize our resource inflows and outflows. See
section E1-2 for more details on our EHS Policy.
Our Supplier Code of Conduct requires our upstream supply chain
to strive to reduce the environmental footprint of their operations
through efficient use of natural resources with an emphasis on
improved circularity via recycling. We encourage our suppliers to
continuously reduce the environmental impact of the entire lifecycle
of their products and services, from raw materials and production to
use and end-of-life. Hexagon also expects our suppliers to report to
us ESG data including progress on their transition to renewable
energy, efforts to reduce waste, sustainability policies and product
environmental footprint data, if available.
E5-2
Actions and resources in relation to resource use and circular
economy
Hexagon is pursuing a variety of actions to embody the resource use
and circularity principles in our EHS policy.
Environmental Team (E-Team)
Throughout 2025, Hexagon’s cross-site, cross-functional
Environmental Team (E-Team) continued to drive environmental
initiatives within the company. The team met monthly to report
progress on initiatives, share best practices and knowledge, and set
annual targets. Each team member was responsible for generating
and executing projects with a positive environmental impact on their
site or within their department. These projects fell within the
categories of energy efficiency and use of renewables, waste
reduction, product eco-design, and supply chain decarbonization.
The E-Team was also responsible for developing our detailed
roadmap to net-zero by 2050 to meet our SBTi targets.

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Projects from 2025 related to resource use and circular economy
included initiatives at each of our ISO 50001-certified sites to achieve
energy efficiency improvement (see section E1-3), optimizing
engineering design to reduce metal, carbon fiber, resin and paint
use in our highest-running products, and the waste reduction
initiatives in the following section.
World-class manufacturing (WCM) and waste
All Hexagon Composites production sites have a certified ISO 14001
environmental management system with which to drive
improvements to our waste programs. We also follow principles of
world-class manufacturing to minimize waste in our operations. In
2025, we performed our second round of annual waste audits at our
US production sites. Hexagon Digital Wave created its first site waste
map and completed a waste audit in 2025. These audits help us
generate ideas for waste handling and efficient material use toward
our long-term goal of zero waste to landfill. One such project
initiated in 2025 was the design of a new waste labeling system at
our US production sites to provide consistent labeling and easy-to-
read signage with visuals to improve the ease of waste sorting and
raise the profile of sustainability within our company.
2025 waste reduction initiatives included elimination of metal
brackets at our Rialto, US, site for an estimated reduction of 95 kg
steel and 35 kg aluminum annually. At our Salisbury, US, site, a
project to replace single-use plastic coffee pods with coffee packets
was put in place with a projected reduction of approximately 410 kg
plastic per year. Our Kassel, DE, site implemented key raw material
recycling to achieve 6.5 metric tons of material diverted from the
landfill. In 2025, we also successfully reduced our hazardous waste
generation to move from Large Quantity Generator to Small
Quantity Generator of hazardous waste status at our largest Lincoln,
US, production building thanks to the installation of a parts washer
using a water-based solution to eliminate methylene chloride from
our workflow and stills to recycle acetone used to clean parts.
Engineering
Life cycle assessments (LCAs) are a key part of Hexagon’s strategy to
minimize resource use. In 2025, Hexagon performed an LCA on our
Mobile Pipeline Titan 450 product. Hexagon now has LCAs of the
highest running products in our portfolio to allow for better
understanding of where our product emissions come from.
Principles of eco-design are now incorporated into Hexagon Agility’s
Advanced Product Quality Process (APQP) as of 2025, allowing future
proposed design changes to be evaluated for their impact on the
environment before implementation. Our engineering teams re-
designed our highest running cylinders and systems to require less
carbon fiber, resin and metals. See our engineering target for more
details.
Upstream and downstream supply chain
To promote circularity and conservation of resources in our upstream
supply chain, we use business sustainability ratings platform
EcoVadis to evaluate our suppliers’ sustainability program maturity.
We establish ESG collaboration with our suppliers through this
platform, setting ratings targets and assigning corrective actions to
improve their sustainability practices. To encourage circularity in our
downstream supply chain, we developed a total system lifecycle
guide in 2025 that outlines proper end-of-life handling for our
products and encourages recycling, repurposing and refurbishment
where possible.

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Performance, metrics & targets
E5-3
Targets related to resource use and circular economy
Hexagon has set voluntary targets for 2025 to guide our actions and
use of resources in pursuance of our policies. Our targets cover the
major areas of emphasis for Hexagon including energy efficiency,
zero-waste, green engineering, corporate reporting, and supply
chain sustainability. Our 2025 and 2026 resource management
targets are listed below. We use our targets to assess the
effectiveness of our policies.
Emissions roadmaps
Waste hierarchy layer: Reduce
Progress in 2025: created emissions roadmaps to 2033 and 2025
We achieved the target of expanding our current plans to reduce our
scope 1, 2, and 3 emissions to reach our science-based emissions
reduction targets for 2033 and net-zero by 2050. We created two
comprehensive emissions reduction roadmaps with cross-functional
input from within our company as well as information from our
suppliers and industry research. The roadmaps include emissions
reductions for our planned actions across all three emissions scopes
on a timeline. Responsible resource use is a major component of our
plan; as part of its development, we have planned waste and energy
reduction targets, as well as engineering targets to design with less
material input and with more environmentally friendly materials
through 2050. More information on our roadmaps can be found in
section E1-4.
Target for 2026: continue to develop and update emissions
roadmaps to 2033 and 2050
By the end of 2026, we plan to update our roadmaps with new
supplier plans for the top 76% of materials by emissions and all
energy suppliers, as well as with our most recent energy and
engineering projects and 2025 actual data. We will also begin
estimating the anticipated costs of selected roadmap actions,
including our plans to source circular materials, to allow us to better
understand the financial implications of our roadmaps and plan
accordingly.
Waste audits
Waste hierarchy layer: Reduce, re-use, recycle
Progress in 2025: completed annual waste audits
In 2025, we continued the annual waste audits initiative started in
2024 for our US production sites. We also implemented a scoring
system to track improvements year over year as the program
continues. Each site has generated waste management initiatives
which may include reductions of single-use material, improvement
of waste sorting, and ideas to improve the circularity of our
processes. Our sites saw an average overall waste audit score
increase of 6% from the 2024 scores.
Target for 2026: Drive waste handling improvements through
annual waste audits
Our goal for 2026 is to continue carrying out annual waste audits at
all production sites, using our recently established scoring system to
track progress at each one. Each of our sites will implement at least
one waste-related project, which will help them achieve a targeted
improvement of +2% from their 2025 waste audit scores. We will also
produce, distribute, and implement the new waste labels designed
in 2025 at all sites.
Engineering
Waste hierarchy layer: Reduce
Progress in 2025: understood and reduced the carbon footprint of
our products through green engineering
We achieved our goal of completing a cradle-to-grave LCA on our
Mobile Pipeline product by the end of 2025. We also incorporated
LCAs into our processes to enable circular and eco-design for
responsible resource use. In addition, we achieved three product-
specific engineering goals to reduce the amount of raw material
required by the end of the year in 2025:
• Improve carbon fiber efficiency for our 27x81 and Maximus
cylinders by 4% from the previous generation.
• Decrease the material required to build our generation 4.1 and 5
ProCab systems by 2% of the previous generation system weight.
• Launch the Mobile Pipeline Titan 510 product, which uses 5% less
carbon fiber and resin in each of its cylinders compared to the
previous generation.

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Target for 2026: further reduce the carbon footprint of our products
through green engineering
To continue with our LCA work in 2026, we plan to create an
internally qualified Environmental Product Declaration (EPD) for the
Mobile Pipeline product LCA completed in 2025. We will also use our
LCA models to quantify the emissions impact of our planned design
changes. In 2026, we will seek to further reduce the amount of raw
materials required to build our products through engineering
initiatives including:
• Reduce material used by improving carbon fiber efficiency by 5%
from previous generation on highest-running tank (27x81) by end
of year.
• Design the next generation of our highest-running system
(ProCab) to achieve a total material reduction of 10% by weight of
non-cylinder components from the previous generation when
combined with the 2025 improvements.
• Implement Titan 450 production and track material and emissions
savings.
E5-4
Resource inflows
Hexagon uses a variety of materials to manufacture our products
and maintain the function of our facilities. Key raw materials inputs
for our products include carbon fiber, resins, plastics, steel and
aluminum. The total estimated weight of resource inflows in 2025 for

Metric | Unit | Original 2024 figure | Revised 2024 figure | % Change
The absolute weight of secondary reused or recycled components, secondary intermediary products and secondary materials used to manufacture the undertaking’s products and services (including packaging) | metric tons | 834 | 2 102 | 152%
Percentage of secondary reused or recycled components, secondary intermediary products and secondary materials | % | 6% | 16% | 167%

Hexagon Composites is shown in Table E5-4 31 (a-c). The 2024
recycled components quantities have been restated to include more
accurate assumptions about the recycled content of steel used.
As part of our emissions roadmap, we will evaluate how to reduce
the emissions associated with our resource inflows as the products
and services we buy make up most of our emissions as a company.
This may include sourcing materials with higher recycled content or
that utilize less emissions-intensive feedstocks alongside our
initiatives to design for less material consumption in our products
and reduce scrap. We are also working to streamline data collection
on our resource inflows to improve our GHG emissions accounting
and reduce the assumptions required to calculate the weight of
input materials.
2024 restatement
The Hexagon Composites 2024 absolute weight and percentage of
secondary reused or recycled components used to manufacture our
products have been restated to include an assumed recycled
percentage of steel as well as aluminum from industry research for
better accuracy.

E5-4 31 (a-c) | Unit | Hexagon Ragasco 2024 | Hexagon Composites 2024 | Hexagon Composites 2025
Total weight of products and technical and biological materials used during the reporting period | Metric tons | 2 753 | 13 304 | 9 995
The absolute weight of secondary reused or recycled components, secondary intermediary products and secondary materials used to manufacture the undertaking’s products and services (including packaging) | Metric tons | 0 | 2 102 | 1 912
Percentage of biological materials (and biofuels used for non-energy purposes) | % | —% | —% | —%
Percentage of secondary reused or recycled components, secondary intermediary products and secondary materials | % | —% | 16% | 19%

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Our accounting principles for resource inflows are detailed in the table below.

Disclosure Requirement | Accounting Policy
Resource inflows | Total weight of products and technical and biological materials used during the reporting period
| Hexagon’s resource inflows are tracked using our company enterprise resource planning system. Because not all the line items are measured in terms of weight and manually estimating the missing weights would require many assumptions, it was decided that using a mass balance with the weight of sold products and waste outflows would result in more exact values. The weight of Hexagon Agility’s sold products in 2025 was provided by the production planning department and added to the total weight of waste produced in 2025, which was calculated as described in section E5-5. An additional 3% weight was added to the total weight of sold products to account for the products of Hexagon Digital Wave and packaging, and 12% was added to account for SES Composites according to their respective shares of revenue in 2025.
| Percentage of biological materials (and biofuels used for non-energy purposes)
| No biological materials are used in the manufacture of our products.

Disclosure Requirement | Accounting Policy
Resource inflows | The absolute weight of secondary reused or recycled components, secondary intermediary products and secondary materials used to manufacture the undertaking’s products and services (including packaging)
| The weight of recycled components used to manufacture our products was calculated based on the percentage of recycled content in Hexagon Agility’s aluminum inputs provided by our supplier at an average of 48%, and average recycled content of steel based on industry research of 65%. No other materials were considered to have recycled content. The estimated total amounts of aluminum and steel used in 2025 were calculated using the percentages of aluminum and steel by weight in a representative product in each of Hexagon Agility’s three product lines and multiplying by the total units of each type of product line sold. It was assumed that all products within each product line have a similar proportion of each key material. The average recycled contents were multiplied by the estimated quantities of aluminum and steel used in 2025 to find the weight of recycled content in our products.
| Percentage of secondary reused or recycled components, secondary intermediary products, and secondary materials
| The weight of recycled components calculated as described previously was divided by the total weight of inflows and converted to a percentage to calculate the percentage of recycled components by weight.

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E5-5
Resource outflows
Our products
Hexagon Agility is a global provider of natural gas fuel systems for
commercial vehicles and gas distribution systems. These systems
allow the use of renewable natural gas (RNG)1, which is a low-carbon
fuel. We design our cylinders and fuel systems to be durable yet
lightweight, minimizing the amount of fuel needed to transport their
weight and maximizing their lifespan.
Hexagon Digital Wave offers innovative cylinder testing and
monitoring technologies to inspect high-pressure cylinders to
requalify them for further use, reducing down-time and inspection
costs while improving inspection accuracy.
As shown in Table E5-5 36(a), Hexagon’s product durability matches
the industry average for each product group where the data is
available. Our cylinders and the fuel systems have an expected
durability of 20 years according to the Natural Gas Vehicle 2 industry
standard for Type 4 cylinders. Mobile Pipeline modules and cylinders
have an expected durability of 15 years in compliance with Hexagon’s
Department of Transportation special permit. However, the designs
can last longer than 15 years and service life may be extended
through recertification testing. Hexagon Digital Wave’s products
have an estimated lifespan of 15 years. Because Digital Wave makes
up most of the market in the product they make, no industry average
data is available for comparison.

E5-5 36 (a) | 2024 | 2025
Expected product durability | Our products (years) | Industry average (years) | Our products (years) | Industry average (years)
Hexagon Agility cylinders | 20 | 20 | 20 | 20
Hexagon Agility systems | 20 | 20 | 20 | 20
Hexagon Agility Mobile Pipeline | 15 | 15 | 15 | 15
Hexagon Digital Wave | 15 | N/A | 15 | N/A
Hexagon Ragasco | 22 | 22 | N/A | N/A
SES Composites | N/A | N/A | 20 | 20

Hexagon Agility’s FleetCare department aids customers in
refurbishing and repairing their products to extend their lifespan.
Our certified pre-owned (CPO) program gives systems a second
useful life. We developed a total lifecycle guide in 2025 to inform
customers of their options at product end of life, from reuse to CPO
to disposal.
Once our products are no longer good candidates for refurbishment,
reuse, or repurposing, recycling is the preferred next step for
applicable product components. The packaging of our products is
also recyclable depending on the product. Table E5-5 36(c) details
the rates of recyclable content in our products and packaging.
All metals were assumed to be recyclable, as were carbon fiber,
electronics, wood, and paper components. Resins and most plastics

E5-5 36 (c) | 2024 | 2025
Rate of recyclable content | Products (%) | Packaging (%) | Products (%) | Packaging (%)
Hexagon Agility cylinders | 56% | —% | 55% | 91%
Hexagon Agility systems | 78% | 100% | 78% | 100%
Hexagon Agility Mobile Pipeline | 71% | N/A | 71% | N/A
Hexagon Digital Wave | 98% | 97% | 98% | 97%
Hexagon Ragasco | —% | 100% | N/A | N/A
SES Composites | N/A | N/A | 82% | 100%

were not assumed to be recyclable as they are usually burned for
fuel during composite recycling via pyrolysis. A representative
Hexagon Agility and SES Composites cylinder system, Mobile
Pipeline unit and Digital Wave system were selected and the
recyclability by weight for each was estimated based on the
products’ bills of material, which were analyzed for recyclability on a
part-level basis.
1 RNG: Life Cycle Analysis, Carbon Intensity and Carbon-Negativity

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E5-5 38 |  |  |  |
(Metric tons) | Hexagon Ragasco 2024 | Hexagon Composites 2024 | Hexagon Composites 2025
Carbon fiber recycled |  | 0 | 120 | 41
Cardboard recycled |  | 13 | 238 | 139
Electronic waste recycled |  | 0 | 2 | 2
Food waste recycled |  | 0 | 0 | 0
Hazardous waste to controlled disposal |  | 0 | 16 | 14
Hazardous waste to energy |  | 23 | 25 | 31
Metal recycled |  | 15 | 221 | 316
Mixed waste recycled |  | 2 | 11 | 38
Other hazardous waste recycled |  | 0 | 29 | 16
Paint recycled |  | 0 | 38 | 22
Paper recycled |  | 0 | 6 | 17
Plastic recycled |  | 62 | 200 | 122
Solid waste to energy |  | 72 | 134 | 52
Solid waste to landfill |  | 4 | 1 248 | 1 000
Wood recycled |  | 13 | 599 | 467
Total waste |  | 205 | 2 889 | 2 277

Our waste
Hexagon’s hazardous and non-hazardous waste outflows are
detailed in Table E5-5 37 (a-d). Direct measurement data from
invoices from our waste handling companies is entered into our EHS
Power App reporting system monthly by EHS representatives at each
site. The 2025 data was exported from this report after year-end and
further categorized and filtered by data type to fit the reporting
requirements.
The materials present in Hexagon’s waste are further broken down in
Table E5-5 38. Landfill waste and recycling are significant waste types
for the manufacturing industry. Hexagon produces a comparatively
large amount of landfill waste due to the resin used to manufacture
Type 4 cylinders, which contaminates other materials and is not
recyclable even when cured. However, we strive to recycle all possible
waste and continue to develop our waste handling program through
waste audits and their associated initiatives.

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E5-5 37 (a-d) |  |  |  |  |  |  |  |  |  |  |  |
|  | Hexagon Ragasco 2024 |  | Hexagon Composites 2024 |  | Hexagon Composites 2025
| Unit | Non-hazardous | Hazardous | Total |  | Non-hazardous | Hazardous | Total |  | Non-hazardous | Hazardous | Total
a. Preparation for reuse | Metric tons | 0 | 0 | 0 |  | 0 | 0 | 0 |  | 0 | 0 | 0
b. Recycling | Metric tons | 106 | 0 | 106 |  | 1 437 | 29 | 1 466 |  | 1 164 | 16 | 1 180
c. Other recovery | Metric tons | 0 | 0 | 0 |  | 0 | 0 | 0 |  | 0 | 0 | 0
A. Total diverted from disposal | Metric tons | 106 | 0 | 106 |  | 1 437 | 29 | 1 466 |  | 1 164 | 16 | 1 180
d. Incineration | Metric tons | 72 | 23 | 95 |  | 134 | 25 | 159 |  | 52 | 31 | 83
e. Landfill | Metric tons | 4 | 0 | 4 |  | 1 248 | 0 | 1 248 |  | 1 000 | 0 | 1 000
f. Other disposal | Metric tons | 0 | 0 | 0 |  | 0 | 16 | 16 |  | 0 | 14 | 14
B. Total directed to disposal | Metric tons | 76 | 23 | 99 |  | 1 382 | 41 | 1 423 |  | 1 052 | 45 | 1 097
Total waste (A. + B.) | Metric tons | 181 | 23 | 205 |  | 2 819 | 70 | 2 889 |  | 2 216 | 61 | 2 277
Non-recycled waste1 | Metric tons | 76 | 23 | 99 |  | 1 382 | 41 | 1 423 |  | 1 052 | 45 | 1 097
% Non-recycled waste | % | 42% | 100% |  |  | 49% | 58% |  |  | 47% | 74% |
1"Non-recycled waste" means any waste not recycled within the meaning of "recycling". "Recycling" means any recovery operation by which waste materials are reprocessed into products, materials or substances whether for the original or other purposes. It includes the reprocessing of organic material but does not include energy recovery and the reprocessing into materials that are to be used as fuels or for backfilling operations

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Disclosure Requirement | Accounting Policy
Resource outflows | The data in this section is sourced from site waste management provider invoices monthly.
| Estimates are included in Q4 2025 data as some invoices arrived after the data was compiled. In these cases, the previous month’s waste quantity was used as preliminary data. This is considered the most accurate estimation method as waste quantities tend to fluctuate relatively little month-to-month. All our sites and business areas, including Digital Wave and SES Composites, report this data through our internal EHS Power App reporting system.
| E5-5_37b – Recycling
| Recycled waste includes recycled wood, metal, plastic, carbon fiber, cardboard, plastic, paint, hazardous waste, mixed waste and electronic waste. Recycling data was sourced from waste management company invoices.
| E5-5_37A – Total diverted from disposal
| Total diverted from disposal is equal to the recycling quantity as Hexagon has no preparation for reuse or other recovery.
| E5-5_37d – Incineration
| Incineration is the total quantity of waste-to-energy from our sites, data for which was sourced from waste management company invoices.

Disclosure Requirement | Accounting Policy
Resource outflows | E5-5_37e – Landfill
| Landfill waste is waste that cannot be recycled or converted to energy, data for which is sourced from waste management company invoices.
| E5-5_37f – Other disposal
| Other disposal is controlled disposal of hazardous waste at our sites, data for which is sourced from waste management company invoices.
| E5-5_37B – Total directed to disposal
| The total directed to disposal is equal to the sum of incineration, landfill and other disposal categories.
| E5-5_37 – Total waste
| Total waste is equal to the sum of total diverted from disposal and total directed to disposal.
| Non-recycled waste
| Non-recycled waste is equal to the total directed to disposal as Hexagon has no preparation for reuse or other recovery.
| % Non-recycled waste
| The % non-recycled waste is equal to non-recycled waste divided by the total waste and converted to a percentage.

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Statement on EU Taxonomy
2025 KPIs
2024 KPIs
for sustainable economic
Revenues
MNOK 2 955
Revenues
MNOK 4 877
activities
Sustainable finance is critical for the transition into a low carbon economy and a
more just society. The EU taxonomy established a classification system with criteria
for which economic activities can be considered sustainable. It is considered an
important tool to channel capital into sustainable economic activities.
The pie charts to the right show the eligible and aligned KPI’s for Revenues, CAPEX
and OPEX for 2025 and 2024 for the Group’s.
Further details can be found in the following sections. The KPIs required by the EU
Taxonomy are included at the end of this report.
CAPEX
MNOK 241
CAPEX
MNOK 508
OPEX
MNOK 62
OPEX
MNOK 75

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Background and objectives
As part of the European Green Deal, the
European Union (EU) has placed the topics of
climate protection, environment and
sustainability at the heart of its political agenda in
order to achieve climate neutrality by the year
2050. To this end, the EU Action Plan on financing
sustainable growth was developed with the aim
to reorient capital flows towards sustainable
investment, to mainstream sustainability in risk
management and to foster transparency and
long-termism in financial and economic activity.
The Action Plan comprises ten measures and
centers around the EU taxonomy (Regulation
(EU) 2020/852 and associated delegated acts).
The EU taxonomy is a classification system for
sustainable economic activities. An economic
activity is considered taxonomy-eligible if it is
listed in the climate- or environmental delegated
acts supplementing article 8 of the EU Taxonomy
Regulation and further can potentially contribute
to realizing at least one of the six environmental
objectives:
• Climate change mitigation
• Climate change adaptation
• Sustainable use and protection of water and
marine resources
• Transition to a circular economy
• Pollution prevention and control
• Protection and restoration of biodiversity and
ecosystems
As per year-end 2025, large, listed companies are
obliged to report on alignment to all of the
environmental objectives.
An activity is only considered environmentally
sustainable, i.e., taxonomy-aligned, if it meets all
three of the following conditions:
• The activity makes a substantial contribution to
one of the environmental objectives by
meeting the screening criteria defined for this
economic activity.
• The activity meets the Do-No-Significant-Harm
(DNSH) criteria defined for this economic
activity. These are designed to prevent
significant harm to one or more of the other
environmental objectives.
• The Group carries out its activities in
compliance with the minimum safeguards,
which apply to all economic activities and relate
primarily to human rights and social and labor
standards.
A taxonomy-eligible economic activity means an
economic activity that is described in the
delegated acts supplementing the Regulation,
irrespective of whether that economic activity
meets any or all of the technical screening criteria
laid down in those delegated acts.
The EU taxonomy regulation entered into force in
Norway on 1 January 2023. Hexagon is required by
the Sustainable Finance Act to report on
taxonomy eligibility and alignment for its
economic activities within the Group. Hexagon
does not include associates and/or joint ventures
in the EU Taxonomy KPIs.
Eligible economic activities
in the Hexagon Group
As one of the leading composite cylinder
technology developer and manufacturer, and
with our purpose of “Driving Energy
Transformation”, we enable the safe delivery of
clean energy and we decarbonize transportation.
The majority of Hexagon’s activities are related to
the production of composite cylinders. To date
we have more than 2 200 Mobile Pipeline
distribution modules in operation, and more than
100 000 commercial vehicles with our fuel systems
installed.
All our products and services were deemed
eligible, while only the activity “Type 4 fuel
systems for commercial vehicles - type 4” were
considered taxonomy-aligned, similar to last year.
SES Composites, which was acquired in October
2025, produces fuel systems for commercial
vehicles with type 3 cylinders, and is referred to as
“Type 3 fuel systems for commercial vehicles -
type 3”. While this business was deemed eligible,
the alignment criteria were not met, and is as
such not considered taxonomy-aligned.
Hexagon’s “Mobile Pipeline distribution
modules” and “Type 4 Composite cylinders”
were, similar to last year, not considered
taxonomy-aligned due to missing externally
verified LCA (life cycle assessment) to meet
substantive contribution requirements.
Furthermore, Hexagon cylinder requalification
activities (branded under Hexagon Digital Wave)
could not be deemed aligned due to additional
documentation needed to fulfill the substantial
contribution criteria and the do-no-significant-
harm criteria.
Type 4 fuel system for commercial vehicles
(CCM 3.3. Manufacture of low carbon
technologies for transport)
Hexagon’s type 4 fuel systems are installed on a
variety of commercial vehicles, ranging from
heavy- to medium duty trucks, refuse trucks and
transit buses. The technical screening criteria
under the economic activity “CCM 3.3.
Manufacture of low carbon technologies for
transport” refers largely to the end-products or
the commercial vehicles themselves. As Hexagon
Agility is a key supplier for the manufacturers of
low carbon transport vehicles, Hexagon has

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considered its fuel systems to be eligible under
this economic activity. Our technical screening
assessment is thus based on the vehicles our
systems are installed on and not the fuel system
itself. Hexagon has four facilities for production
and assembly of type 4 fuel systems, including
Salisbury (North Carolina, US), Rialto (California,
US), Lincoln (Nebraska, USA) and Kassel
(Germany).
To make a substantial contribution to climate
change mitigation within this economic activity,
the heavy and medium duty vehicles our systems
are installed on (i.e., vehicles of categories N2
and N3) needs to be zero-emission heavy-duty
vehicles as defined in Article 3, point (11), of
Regulation (EU) 2019/1242 or ‘low-emission
heavy-duty vehicles’ as defined in Article 3, point
(12) of that Regulation. Furthermore, the transit
buses our systems are installed on (i.e., vehicles
designated as category M3) need to comply with
the latest EURO VI standard, and where such a
standard is not available – the direct CO2
emissions of the vehicles need to be zero.
Type 3 fuel system for commercial vehicles
(CCM 3.3. Manufacture of low carbon
technologies for transport)
Hexagon’s type 3 fuel systems refers to the
activities undertaken by SES Composites, which
was acquired in October 2025. SES Composites
type 3 fuel systems are sold to transit bus
manufacturers in Europe. Similar to type 4 fuel
systems, the technical screening criteria under
the economic activity “CCM 3.3. Manufacture of
low carbon technologies for transport” and refers
largely to the end-products, or the transit buses
themselves. Hexagon has two facilities for
production and assembly of type 3 fuel systems,
including Slupsk (Poland) and Burscheid
(Germany).
To make a substantial contribution to climate
change mitigation within this economic activity,
the transit buses our systems are installed on (i.e.,
vehicles designated as category M3) need to
comply with the latest EURO VI standard, and
where such a standard is not available – the direct
CO2 emissions of the vehicles need to be zero.
Mobile Pipeline distribution solutions and
Type 4 composites cylinders
(CCM 3.6. Manufacture of other low carbon
technologies)
Hexagon’s Mobile Pipeline distribution modules
enable safe transport of renewable natural gas
(RNG), compressed natural gas (CNG) as well as
other gases. Our Mobile Pipeline modules are
outfitted with our cutting-edge lightweight Type
4 composite cylinders certified for transport. With
significantly more capacity and weighing 70% less
than steel tubes, our composite solutions enable
customers to deliver more gas and reduce
transport resulting in low total cost of ownership.
Hexagon has assessed these distribution
solutions to fall within the economic activity
“CCM 3.6. Manufacture of other low carbon
technologies”, which is described as manufacture
of technologies aimed at substantial GHG
emission reductions in other sectors of the
economy, where those technologies are not
covered specifically in other parts of the
Taxonomy.
Hexagon also sells its Type 4 high-pressure
composite cylinders as a stand-alone product to
external customers. The assessment for this
activity is similar to the Mobile Pipeline
distribution solutions.
To make a substantial contribution to climate
change mitigation within this economic activity,
the economic activity manufactures technologies
that are aimed at and demonstrate substantial
life-cycle GHG emission savings compared to the
best performing alternative technology/product/
solution available on the market.
Modal Acoustic Emission (MAE) testing
(CE 4.1 Provision of IT/OT data-driven
solutions)
Hexagon Digital Wave’s MAE testing services
allow testing and qualifying composite cylinders
using high-bandwidth stress waves. MAE testing
works by placing transducers on the surface of a
composite vessel, applying stress to the structure
and recording any ultrasonic stress waves that
propagate from the epicenter of a flaw, which are
ultimately tested analyzed with Hexagon Digital
Wave’s proprietary software. Hexagon has
assessed that Hexagon Digital Wave’s MAE
services fall within the economic activity “CE 4.1.
Provision of IT/OT data-driven solutions” within
the environmental objective “Transition to a
circular economy”. This economic activity covers a
wide variety of software and information
technology or operational technology systems for
among other things – analyzing the operational
performance and condition of a product or
equipment. To make a substantial contribution to
circular economy, and for remote monitoring and

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predictive maintenance systems, at least two of
the following capabilities specified in points (a) to
(d) need to be met in their full scope:
a alerting the user to abnormal sensor values,
and assessing the status of the product,
equipment, or infrastructure, detecting wear
and tear or electrical issues, and drawing
conclusions about the exact nature of
abnormal operating conditions by means of
advanced analytical methods;
b predicting the expected remaining lifetime of a
product, equipment, or infrastructure, and
recommending measures to extend the
remaining lifetime;
c predicting an upcoming product, equipment
or infrastructure failure and recommending
measures to prevent such failure;
d providing recommendations about the highest
value next use cycle, such as reuse, recovering
components through parts harvesting for
remanufacture, or recycling, taking into
consideration a combination of factors
regarding the product’s condition.
Ultrasonic Examination (UE) machines
(CE 4.1 Provision of IT/OT data-driven
solutions)
Hexagon Digital Wave’s UE test equipment makes
it easy for operators to detect even the smallest
defects in metallic cylinders without removing the
valve or product. The UE machines produce an
ultrasonic beam which scans the cylinder for
defects and allows the operator to efficiently
analyze whether there are structural integrity issues
present. Hexagon has assessed that Hexagon
Digital Wave’s UE machines fall within the
economic activity “CE 4.1. Provision of IT/OT data-
driven solutions” within the environmental
objective “Transition to a circular economy”. This
economic activity covers “lifecycle performance
management software supporting the monitoring
and assessment of the circularity performance of
products, equipment, or infrastructures during their
lifecyle”, for which is considered relevant to assess
against for Hexagon Digital Wave’s UE machines.
To make a substantial contribution to the economic
activity for the said lifecycle performance
management software, and for remote monitoring
and predictive maintenance systems, at least one of
the following capabilities specified in points (a) to
(e) need to be met in its full scope:
a supporting the monitoring and assessment of the
circularity performance of a product, equipment
or infrastructure during its lifecycle over time;
b comparing circularity performance against
original circularity design goals, analyzing
deviations and their root causes;
c supporting the planning and documentation
of measures required to prolong the useful life
of the product, equipment or infrastructure,
such as maintenance, retrofit, or other services;
d supporting the impact assessment of such
measures on circularity performance;providing
the user with data required to take decisions
on the future use of the product, equipment,
or infrastructure, such as retrofit, change of
use, decommissioning and recycling,
e providing the user with data required to take
decisions on the future use of the product,
equipment, or infrastructure, such as retrofit,
change of use, decommissioning and recycling.
Nuclear and fossil gas related activities
The following tables show that the Company
does not have exposure to nuclear and fossil gas
related activities:

Nuclear energy related activities
1 | Research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle: | No
2 | Construction and safe operation of new nuclear installations to produce electricity to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best available technologies: | No
3 | Safe operation of existing nuclear installations that produce electricity of process hear, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades: | No

Fossil gas related activities
4 | Construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels: | No
5 | Construction, refurbishment, and operation of combined heat/cool and poser generation facilities using fossil gaseous fuels: | No
6 | Construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels. | No

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Table 1 below shows a summary and overview of eligible products and services and their respective economic activities and environmental objectives.

# | Description of product / service | Taxonomy-eligible economic activity | Environmental objective
1 | Type 4 fuel system for commercial vehicles | CCM 3.3. Manufacture of low carbon technologies for transport | Climate change mitigation
2 | Type 3 fuel systems for commercial vehicles
3 | Mobile Pipeline distribution solutions | CCM 3.6. Manufacture of other low carbon technologies | Climate change mitigation
4 | Type 4 composite cylinders
5 | Modal Acoustic Emission (MAE) testing | CE 4.1. Provision of IT/OT data driven-solutions | Transition to a circular economy
6 | Ultrasonic Examination (UE) machines

Table 1 - Overview of eligible products and services and respective economic activities
Meeting the alignment criteria
for Substantial Contribution and
Do-No-Significant-Harm (DNSH)
Type 4 fuel system for commercial vehicles
(CCM 3.3. Manufacture of low carbon
technologies for transport)
Our type 4 fuel systems for commercial vehicles
are found to meet the substantial contribution
criteria for “3.3 Manufacture of low carbon
technologies for transport” because the heavy-
and medium duty commercial vehicles our fuel
systems are installed on, are considered to meet
the definition of “low-emission heavy-duty
vehicles” as defined in Article 3, point (12) of that
Regulation (EU) 2019/1242. “Low-emission heavy-
duty vehicles” in the said regulation “means a
heavy-duty vehicle, other than a zero-emission
heavy-duty vehicle, with specific CO2 emissions of
less than half of the reference CO2 emissions of
all vehicles in the vehicle sub-group to which the
heavy-duty vehicle belongs, as determined in
accordance with point 2.3.3 of Annex I.” As more
than 90% of all heavy-and medium duty vehicles
today run on diesel, the comparable reference
vehicle sub-group is considered to be diesel-
engine vehicles and their CO2 emissions.
Comparing the on-average negative CO2
emissions from all natural gas vehicles, with CO2
emissions from diesel vehicles, we have assessed
all of our customers’ natural gas vehicles to fit
into the category of “low-emission heavy-duty
vehicles”. As such, our fuel systems are thus
considered to make a substantial contribution
and thus in accordance with the criteria.
Furthermore, fuel systems that are delivered to
transit buses (i.e., vehicles designated as
categories M2 and M3) in Europe are all
considered compliant with the latest EURO VI
standard, and as such are considered to meet the
substantial contribution criteria. For transit buses
delivered to areas where the EURO VI standard is
not applicable, the criterion for substantial
contribution is “zero direct CO2 emissions”. For
fuel systems delivered to the transit bus segment
in these areas, Hexagon has used the same
reasoning as for heavy-duty trucks above where
CO2 emissions are considered negative, and thus
concluded that these vehicles also meet the
substantial contribution criteria.
Hexagon has performed an assessment of all
DNSH criteria at all production sites for fuel
systems in the US and Europe, which will be
further described in the following sections.
For DNSH 2 (Climate change adaptation), a
physical climate risk and vulnerability assessment
has been performed for all of Hexagon
production sites for type 4 fuel systems. The
assessment found that that two of Hexagon’s
manufacturing sites (Salisbury, North Carolina
and Lincoln, Nebraska) were exposed to physical
climate risk being extreme wind and tornados. To
reduce this risk, climate adaptation plans are
under development for the respective sites and
will be implemented within 2028 - in line with the
five year deadline requirement in the regulation.
For DNSH 3 (Sustainable use and protection of
water and marine resources), water risk has been

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assessed through a screening without any
identified risks due to insignificant use of water or
the use of closed-loop water systems in the
production lines.
For DNSH 4 (Transition to a circular economy),
the criteria are considered met because Hexagon
uses secondary raw materials in its
manufacturing process and ensures the highest
possible recycling of internal scrap material into
other products. The products are designed for
high durability, recyclability, and policies are in
place to prioritize recycling over disposal in the
manufacturing process, and integrate Eco Design
principles into Advanced Product Quality
Planning for new products. This work continued
in 2025, and the principles cover potential
impacts on materials, energy consumption, and
waste, and are also part of our project manager
training and the project approval template that is
mandatory for all new projects.
For DNSH 5 (Pollution prevention and control),
the criteria have been challenging to assess. As a
manufacturer, Hexagon uses a wide range of
substances in the production lines. No
constituents that contain persistent pollutants,
mercury and substances that deploy the ozone
layer are being used and all manufacturing sites
comply with national laws and regulations for
handling substances, including the REACH
directive for our European operations. As our
operations in the US are not subject to the EU
directives, we have performed a separate
assessment of the use of substances regulated
under the REACH directive. The assessment
concluded that our relevant US operations
comply with the directive, and as such – the
DNSH criteria are considered met.
For DNSH 6 (Protection and restoration of
biodiversity and ecosystems), Hexagon has
performed a screening to assess whether its
activities/manufacturing sites are listed in Annex II
to the EIA directive, and thus need to perform an
EIA (Environmental Impact Assessment). The
screening did not find our kind of manufacturing
activities mentioned in the Annex, hence an EIA
was not considered required.
Conclusion
The overall assessment concludes that “type 4
fuel systems for commercial vehicles” within the
economic activity “CCM 3.3. Manufacture of low
carbon technologies for transport”, is taxonomy-
aligned when taking into account compliance
with the minimum safeguard’s requirements, see
separate.
Type 3 fuel system for commercial vehicles
(CCM 3.3. Manufacture of low carbon
technologies for transport)
Our type 3 fuel systems for commercial vehicles
are also found to meet the substantial
contribution criteria for “3.3 Manufacture of low
carbon technologies for transport” because the
type 3 fuel systems that are delivered to transit
buses (i.e., vehicles designated as categories M2
and M3) in Europe are all considered compliant
with the latest EURO VI standard, and as such are
considered to meet the substantial contribution
criteria. Hexagon has thus concluded that the
type 3 fuel systems also meet the substantial
contribution criteria.
For the DNSH criteria for type 3 fuel systems,
Hexagon has not performed the necessary
assessments for the sites producing these fuel
systems Consequently, none of the DNSH criteria
can be considered met for this activity. With
Hexagon’s strategy of converting this activity
from type 3 fuel systems to type 4 fuel systems
within 2026, Hexagon will likely not assess the
DNSH criteria in 2026 as the type 3 activity in
Poland will fall into Hexagon’s existing type 4
activity in Kassel (Germany) during 2026.
Conclusion
DNSH criteria not assessed and this activity can
thus not be considered taxonomy-aligned.
Mobile Pipeline distribution solutions and type
4 composites cylinders
(CCM 3.6. Manufacture of other low carbon
technologies)
The substantial contribution criteria for CCM 3.6.
“Manufacture of other low carbon technologies”,
requires a third-party verified life cycle
assessment (LCA) for GHG emissions compared
to the best performing alternative. Hexagon
Agility is currently working on LCAs which will
cover both its Mobile Pipeline distribution
modules and its Type-4 composite cylinders. Until
the LCAs are completed, we are not able to
document the substantial contribution criteria,
but we expect to complete the LCA work during
2026. Hexagon considers it likely that the LCAs
once finalized will demonstrate quantified life-
cycle GHG emission savings.
For the DNSH criteria, separate assessments have
been made for these activities and conclusions
are concurrent with those for “type 4 fuel systems
for commercial vehicles” elaborated in the
previous section.
Conclusion
Substantial contribution cannot be demonstrated,
and these activities are thus not yet considered
taxonomy-aligned.

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Modal Acoustic Emission (MAE) testing and
Ultrasonic Examination (UE) machines
(CE 4.1 Provision of IT/OT data-driven
solutions)
Our MAE services and software deploy IT/OT
data-driven solutions through sensors, data
collection and data repository (cloud).
Transducers placed on equipment apply stress to
the structure and record any ultrasonic stress
waves that propagate from the equipment.
Examining the data collected allows the software
to produce predictive models. Any
documentation that we have is very technical
data that is reviewed by engineers to pass or fail a
composite pressure cylinder used in Mobile
Pipeline, Self-Contained Breathing Apparatus
(SCBA), and alternative fuel systems.
Further, we have assessed that our MAE services
have the potential to meet the following two
capabilities listed as requirements in the
substantial contribution criteria:
b. predicting the expected remaining lifetime of a
product, equipment, or infrastructure, and
recommending measures to extend the
remaining lifetime;
c. predicting an upcoming product, equipment or
infrastructure failure and recommending
measures to prevent such failure
With respect to requirement b. - after MAE
inspections, each composite tank is regulatory
eligible for an additional 5 years of service life, at
which point it goes through another MAE
inspection. The MAE inspection validates the
prediction of extended life through detecting and
quantifying fiber fracture and delamination of
the composite microstructure, and the
requirement is therefore considered fulfilled.
With respect to requirement c., - the
predictability of future potential failures needs
further assessments and documentation in 2025
until it can claimed to be fulfilled.
Due to the lack of documentation on the
substantial contribution criteria, specifically
related to letter c. mentioned above, Hexagon
Digital Wave’s MAE testing service is not yet
considered taxonomy-aligned.
Conclusion
Substantial contribution cannot yet be
demonstrated, and this activity is thus not yet
considered taxonomy-aligned.
Ultrasonic Examination (UE) machines
(CE 4.1 Provision of IT/OT data-driven
solutions)
Our UE machines monitor the circulatory
performance of seamless metallic cylinders
during their life cycle, prolonging the useful life
of the product each time it is processed through
our system and software. Tested assets that pass
testing are approved for an additional 5 years in
service, but should they fail they are condemned.
Hexagon has assessed that these features of the
UE machines collectively meet requirement a.
(“supporting the monitoring and assessment of
the circularity performance of a product,
equipment or infrastructure during its lifecycle
over time”) in the substantial contribution
criteria.
Hexagon has furthermore performed an
assessment of all do-no-significant-harm
(DNSH) criteria at its production site in
Centennial (Colorado, US) for its UE machines,
which will be further described in the following
sections
For DNSH 1 (Climate change mitigation), there
are no criteria listed in the EU Taxonomy.
For DNSH 2 (Climate change adaptation), a
physical climate risk and vulnerability assessment
has been performed for Hexagon Digital Wave’s
site. For Digital Wave, no significant climate risks
were identified.
For DNSH 3 (Sustainable use and protection of
water and marine resources), water risk has been
assessed through a screening without any
identified risks due to insignificant use of water
For DNSH 5 (Pollution prevention and control),
the criteria have been challenging to assess. To
meet the requirements, the equipment used to
operate the software meets the requirements laid
down in Directive 2009/125/EC for servers and
data storage products, and the equipment used
does not contain the restricted substances listed
in Annex II to Directive 2011/65/EU, except where
the concentration values by weight in
homogeneous materials do not exceed the
maximum values listed in that Annex. These
assessments and documentation requirements
are yet to be completed and the criteria can
therefore not be considered met for 2025.
For DNSH 6 (Protection and restoration of
biodiversity and ecosystems), there are no criteria
listed in the EU Taxonomy.
Conclusion
All DNSH criteria is not yet fully documented and
completely assessed, and this activity is thus not
yet taxonomy-aligned.

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Meeting the “Minimum safeguards” criteria
For activities to be aligned with the EU Taxonomy,
they must meet the minimum safeguards criteria.
There is currently no legally binding definition of
how to adhere with the minimum safeguards in
relation to human rights and Labor Rights,
bribery and anti-corruption, taxation and fair
competition. As such, we have assessed our
alignment on the report produced by the
Platform on Sustainable Finance titled “Final
Report on Minimum Safeguards” (Report
Published by the EU Platform on sustainable
finance, October 2022). Based on the criteria
defined by this report, we define ourselves as
aligned with the minimum safeguards. The
sections below describe how this has been
assessed.
At Hexagon, we recognize that sustainable
business growth requires a strong commitment
to ethical business conduct, human rights, and
good governance. We respect human rights as
set out in the International Bill of Human Rights
and the ILO Core Conventions. In alignment with
the EU Taxonomy’s minimum safeguards, we
integrate internationally recognized standards,
including the UN Guiding Principles on Business
and Human Rights, the OECD Guidelines for
Multinational Enterprises, and the ILO
Declaration on Fundamental Principles and
Rights at Work.
We are committed to conducting thorough due
diligence to assess, prevent, and mitigate
potential adverse human rights impacts in our
operations and supply chain. Our commitments
are embedded in several key policies, including
our Policy on Human Rights and Working
Conditions, Code of Conduct, and Supplier Code
of Conduct. These policies define our
expectations for responsible business practices
across our operations and supply chain.
Our approach is built on:
• Respect for Human Rights and labor rights –
Ensuring fair treatment, safe working
conditions, and equal opportunities.
• Zero Tolerance for Corruption and bribery –
Upholding integrity in all business dealings and
enforcing anti-bribery policies.
• Fair and Transparent Tax Practices – Meeting all
tax obligations in an open and responsible
manner.
• Commitment to Fair Competition – Promoting
a level playing field and preventing anti-
competitive behavior.
There have been no findings against Hexagon, or
any specific concerns have been raised from
stakeholders related to any of the four areas
above in 2024 or 2025.
Key performance indicators
The EU Taxonomy defines sales revenues, capital
expenditure and operating expenditure as the
key performance indicators that must be
reported on.
Revenues
The definition of turnover in the EU Taxonomy
corresponds to total revenues as reported in the
Group’s IFRS consolidated financial statements,
which amounted to NOK 2 955 million for the
fiscal year 2025. Of this total, NOK 2 922 million,
or 99% of Group revenues, was attributed to
taxonomy-eligible activities. Of the total
taxonomy-eligible revenues, NOK 2 131 million, or
72%, meet the technical screening criteria for
substantial contribution. Taking into account the
DNSH and the minimum safeguards criteria,
NOK 1 984 million, or 67%, of the Group’s total
revenues was also considered taxonomy-aligned.
Of this total, all of Hexagon revenues from its
type 4 fuel systems business are included as
aligned. In the table below, eligible and aligned
revenues are presented for each of our operating
segments. The figures are furthermore discussed
and explained in the following.
The revenue KPI is built up on an entity-by-entity
whereby each entity’s revenue is linked to one
activity in the EU Taxonomy. There is only one
legal entity in the Group which has activities
across more than one activity in the taxonomy.
For this legal entity, revenues are allocated to the
respective activity in the taxonomy is line with
revenues generated, and such that the sum of
revenues allocated to the taxonomy activities and
non-eligible activities never exceeds the entities
total revenues. Furthermore, each entity’s group
internal revenues (if any) is not included in the
calculation build-up as these revenues are and
will be eliminated when consolidating the group
financials. As such, only external revenues (from a
group perspective) is included in the revenue KPI
build for each entity. This effectively avoids any
double counting issues.
Within the EU Taxonomy economic activity “CCM
3.6. Manufacture of other low carbon
technologies”, revenues are allocated between
the two activities, “Type 4 fuel system for
commercial vehicles” and “Type 3 fuel systems
for commercial vehicles”. These revenues also
include the aftermarket revenues within these
activities. Revenues of NOK 2 081 million
generated from these two activities are
considered eligible and contribute substantially
to climate change mitigation as the fuel systems
facilitate the usage of renewable natural gas
(RNG) as fuel source for the vehicles being
assessed in the screening criteria. However,
taking into account that all DNSH criteria and
minimum safeguards were met only for “Type 4

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fuel system for commercial vehicles”, only NOK
1 984 million of the revenues were considered
taxonomy-aligned in 2025. The remaining NOK 97
million in revenues relates to “Type 3 fuel systems
for commercial vehicles” generated from the
newly acquired business, SES Composites.
Within the EU Taxonomy economic activity “CCM
3.6. Manufacture of other low carbon
technologies”, revenues are allocated between
the two activities, “Mobile Pipeline distribution
solutions” and “Type 4 composite cylinders”. All
revenues from these two activities of NOK 760
million were considered eligible, but the activities
did not meet the technical screening criteria to
claim substantial contribution. The technical
screening criteria requires a formal and
documented life cycle assessments (LCA) verified
by an independent third party, which is currently
not yet in place.
As a result, none of the revenues within “CCM
CCM 3.6. Manufacture of other low carbon
technologies”were considered taxonomy-aligned
in 2025. Hexagon is, however, confident that
Hexagon’s Mobile Pipeline modules and Type 4
composite cylinders will become taxonomy-
aligned once the formal requirements and
procedures in the Taxonomy have been properly
documented.
Within the EU Taxonomy economic activity “CE
4.1. Provision of IT/OT data-driven solutions”,
revenues are allocated between the two activities
“Modal Acoustic Emission (MAE) testing” and
Ultrasonic Examination (UE) machines, which are
generated through Hexagon’s subsidiary,
Hexagon Digital Wave.
Hexagon Digital Wave’s product offering has
been allocated to the environmental objective
“Transition to a circular economy”. As none of
Hexagon Digital Wave’s products and services are
considered taxonomy aligned for 2025, NOK 81
million is reported as taxonomy-eligible but not
environmentally sustainable activities.
The tables below show eligible and aligned
revenues for each of our economic activities.

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Revenues 2025

|  | Revenues | Compliance with substantial contribution criteria | Compliance with DNSH criteria | Compliance with minimum safeguards | Taxonomy-aligned revenues
Economic activities |  | NOK million | %1) | NOK million | %1) | Y/N | Y/N | NOK million | %1)
A. TAXONOMY-ELIGIBLE ACTIVITIES |  | 2 922 | 99% | 2 131 | 72% | Y/N | Y | 1 984 | 67%
Climate change mitigation |  | 2 841 | 96% | 2 081 | 70% | Y/N | Y | 1 984 | 67%
CCM 3.3. Manufacture of low carbon technologies for transport |  | 2 081 | 70% | 2 081 | 70% | Y/N | Y | 1 984 | 67%
CCM 3.6. Manufacture of other low carbon technologies |  | 760 | 26% | 0 | 0% | Y | Y | 0 | 0%
Transition to a circular economy |  | 81 | 3% | 50 | 2% | N | Y | 0 | 0%
CE 4.1. Provision of IT/OT data-driven solutions |  | 81 | 3% | 50 | 2% | N | Y | 0 | 0%
B. TAXONOMY NON-ELIGIBLE ACTIVITIES |  | 33 | 1% |  |  |  |  |  |
TOTAL (A + B) |  | 2 955 | 100% |  |  |  |  |  |
1 All percentages relate to the Group’s total revenues

Revenues 2024

|  | Revenues | Compliance with substantial contribution criteria | Compliance with DNSH criteria | Compliance with minimum safeguards | Taxonomy-aligned revenues
Economic activities |  | NOK million | %1) | NOK million | %1) | Y/N | Y/N | NOK million | %1)
A. TAXONOMY-ELIGIBLE ACTIVITIES |  | 4 832 | 99% | 2 570 | 53% | Y/N | Y | 2 499 | 51%
Climate change mitigation |  | 4 661 | 96% | 2 499 | 51% | Y | Y | 2 499 | 51%
3.3. Manufacture of low carbon technologies for transport |  | 2 499 | 51% | 2 499 | 51% | Y | Y | 2 499 | 51%
3.6. Manufacture of other low carbon technologies |  | 2 162 | 44% | 0 | 0% | Y | Y | 0 | 0%
Transition to a circular economy |  | 171 | 3% | 71 | 1% | N | Y | 0 | 0%
4.1. Provision of IT/OT data-driven solutions |  | 171 | 3% | 71 | 1% | N | Y | 0 | 0%
B. TAXONOMY NON-ELIGIBLE ACTIVITIES |  | 45 | 1% |  |  |  |  |  |
TOTAL (A + B) |  | 4 877 | 100% |  |  |  |  |  |
1 All percentages relate to the Group’s total revenues

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Capital expenditure
Capital expenditure for the purposes of the EU
Taxonomy refers to the following items in the
IFRS consolidated financial statements: additions
to property, plant and equipment, additions to
intangible assets and additions to lease right-of-
use assets. These are reported in the notes to the
consolidated financial statements in the notes on
“Property, plant and equipment”, “Intangible
assets”, and “Leases”. Additions from business
combinations, reported under note “Changes in
the Group structure”, are also included, if
relevant. By contrast, additions to goodwill are
not included in the calculation.
In the fiscal year 2025, additions in the Hexagon
Group as defined above amounted to (2024
figures in parenthesis):
• NOK 86 (237) million from property, plant and
equipment,
• NOK 89 (2) million in property, plant and
equipment from first time consolidation of
acquired companies,
• NOK 48 (32) million from intangible assets,
• NOK 4 (16) million in intangibles from first time
consolidation of acquired businesses,
• NOK 15 (239) million from right-of-use assets.
Total capital expenditure to be included in
accordance with the EU Taxonomy therefore
amounted to NOK 241 (508) million.
All capital expenditures within each operating
entity of the Group have been allocated to the
same economic activities as for revenues for each
operating entity. For most operating entities,
capital expenditures are related to one product/
service offering and thus one specific economic
activity. For those operating entities that deliver
products/services covering two or more economic
activities, the capital expenditure has been
allocated pro rata in accordance with the revenue
split within that entity, unless the capital
expenditure could be directly attributed to a
specific product and thus economic activity. This
avoids double counting. Capital expenditure in
non-operating and holding entities have all been
considered non-eligible.
Taxonomy eligible capital expenditure amounted
to NOK 240 million, representing 100% of the
Group’s total capital expenditure in 2025. Of this
amount, Hexagon capital expenditure within its
type 4 and type 3 fuel systems businesses meets
the substantial contribution criteria, totaling NOK
79 million, or 33%. For the same reasons as
explained in the section on revenues above,
capital expenditures within Hexagon’s Mobile
Pipeline business and type 4 composites cylinder
business, and Hexagon Digital Wave’s
requalification activities did not meet the
substantial contribution and all DNSH criteria in
2025.
Taking into account the DNSH criteria and the
minimum safeguards criteria, and for the same
reasons as for revenue alignment, Hexagon’s
capital expenditure within its “Type 4 fuel system
for commercial vehicles” activity of NOK 79
million was deemed taxonomy-aligned. This
represented 33% of total capital expenditure and
was largely related to investments in property,
plant and equipment and some intangible assets,
while right-of-use additions was very limited in
the year.
The tables below show eligible and aligned
capital expenditure for each of our operating
segments and for each economic activity.
Operating expenditure
The operating expenditure reported by us for the
purposes of the EU Taxonomy comprises non-
capitalized research and development costs,
which can be taken from the note on “Intangible
assets”. We also include the expenditure for
short-term leases recognized in our consolidated
financial statements, which can be found in the
note on “Leases”, and expenditure for
maintenance and repairs. For most operating
entities, operating expenditures are related to
one product/service offering and thus one
specific economic activity. For those operating
entities that deliver products/services covering
two or more economic activities, the operating
expenditure has been allocated pro rata in
accordance with the revenue split within that
entity, unless the operating expenditure could be
directly attributed to a specific product and thus
economic activity. This avoids double counting.
The allocation of operating expenditure to the
economic activities followed the same logic as
that described for capital expenditure. Due to
somewhat higher operating expenditures
compared to capital expenditures in non-
operating and holding entities, the portion of
eligible operating expenditures was 93% in 2025,
for a total of NOK 57 million. NOK 39 million, or
63%, meet the substantial contribution criteria,
and NOK 38 million, or 61%, are considered
taxonomy aligned. The explanations for the
results follow the same reasoning as for revenues
and capital expenditures in the above, which is
also depicted in the tables below.

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Capital expenditure 2025

|  | Capital expenditures | Compliance with substantial contribution criteria | Compliance with DNSH criteria | Compliance with minimum safeguards | Taxonomy-aligned capital expenditure
Economic activities |  | NOK million | %1) | NOK million | %1) | Y/N | Y/N | NOK million | %1)
A. TAXONOMY-ELIGIBLE ACTIVITIES |  | 240 | 100% | 85 | 35% | Y/N | Y | 79 | 33%
Climate change mitigation |  | 230 | 95% | 79 | 33% | Y/N | Y | 79 | 33%
3.3. Manufacture of low carbon technologies for transport |  | 173 | 72% | 79 | 33% | Y/N | Y | 79 | 33%
3.6. Manufacture of other low carbon technologies |  | 57 | 24% | 0 | 0% | Y | Y | 0 | 0%
Transition to a circular economy |  | 10 | 4% | 6 | 3% | N | Y | 0 | 0%
4.1. Provision of IT/OT data-driven solutions |  | 10 | 4% | 6 | 3% | N | Y | 0 | 0%
B. TAXONOMY NON-ELIGIBLE ACTIVITIES |  | 1 | 0% |  |  |  |  |  |
TOTAL (A + B) |  | 241 | 100% |  |  |  |  |  |
1 All percentages relate to the Group’s total capital expenditure |  |  |  |  |  |  |  |  |

Capital expenditure 2024

|  | Capital expenditures | Compliance with substantial contribution criteria | Compliance with DNSH criteria | Compliance with minimum safeguards | Taxonomy-aligned capital expenditure
Economic activities |  | NOK million | %1) | NOK million | %1) | Y/N | Y/N | NOK million | %1)
A. TAXONOMY-ELIGIBLE ACTIVITIES |  | 504 | 99% | 335 | 66% | Y/N | Y | 329 | 65%
Climate change mitigation |  | 485 | 96% | 329 | 65% | Y | Y | 329 | 65%
3.3. Manufacture of low carbon technologies for transport |  | 329 | 65% | 329 | 65% | Y | Y | 329 | 65%
3.6. Manufacture of other low carbon technologies |  | 157 | 31% | 0 | 0% | Y | Y | 0 | 0%
Transition to a circular economy |  | 18 | 4% | 6 | 1% | N | Y | 0 | 0%
4.1. Provision of IT/OT data-driven solutions |  | 18 | 4% | 6 | 1% | N | Y | 0 | 0%
B. TAXONOMY NON-ELIGIBLE ACTIVITIES |  | 5 | 1% |  |  |  |  |  |
TOTAL (A + B) |  | 508 | 100% |  |  |  |  |  |
1 All percentages relate to the Group’s total capital expenditure |  |  |  |  |  |  |  |  |

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Operating expenditure 2025

|  | Operating expenditure | Compliance with substantial contribution criteria | Compliance with DNSH criteria | Compliance with minimum safeguards | Taxonomy-aligned operating expenditure
Economic activities |  | NOK million | %1) | NOK million | %1) | Y/N | Y/N | NOK million | %1)
A. TAXONOMY-ELIGIBLE ACTIVITIES |  | 57 | 93% | 39 | 63% | Y/N | Y | 38 | 61%
Climate change mitigation |  | 55 | 90% | 38 | 62% | Y/N | Y | 38 | 61%
3.3. Manufacture of low carbon technologies for transport |  | 38 | 62% | 38 | 62% | Y/N | Y | 38 | 61%
3.6. Manufacture of other low carbon technologies |  | 17 | 28% | 0 | 0% | Y | Y | 0 | 0%
Transition to a circular economy |  | 2 | 3% | 1 | 1% | N | Y | 0 | 0%
4.1. Provision of IT/OT data-driven solutions |  | 2 | 3% | 1 | 1% | N | Y | 0 | 0%
B. TAXONOMY NON-ELIGIBLE ACTIVITIES |  | 5 | 7% |  |  |  |  |  |
TOTAL (A + B) |  | 62 | 100% |  |  |  |  |  |
1 All percentages relate to the Group’s total capital expenditure |  |  |  |  |  |  |  |  |

Operating expenditure 2024

|  | Operating expenditure | Compliance with substantial contribution criteria | Compliance with DNSH criteria | Compliance with minimum safeguards | Taxonomy-aligned operating expenditure
Economic activities |  | NOK million | %1) | NOK million | %1) | Y/N | Y/N | NOK million | %1)
A. TAXONOMY-ELIGIBLE ACTIVITIES |  | 71 | 95% | 43 | 57% | Y/N | Y | 42 | 56%
Climate change mitigation |  | 69 | 92% | 42 | 56% | Y | Y | 42 | 56%
3.3. Manufacture of low carbon technologies for transport |  | 42 | 56% | 42 | 56% | Y | Y | 42 | 56%
3.6. Manufacture of other low carbon technologies |  | 27 | 36% | 0 | 0% | Y | Y | 0 | 0%
Transition to a circular economy |  | 2 | 3% | 1 | 1% | N | Y | 0 | 0%
4.1. Provision of IT/OT data-driven solutions |  | 2 | 3% | 1 | 1% | N | Y | 0 | 0%
B. TAXONOMY NON-ELIGIBLE ACTIVITIES |  | 4 | 5% |  |  |  |  |  |
TOTAL (A + B) |  | 75 | 100% |  |  |  |  |  |
1 All percentages relate to the Group’s total capital expenditure |  |  |  |  |  |  |  |  |

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Tabular presentation of the KPIs in accordance with the EU Taxonomy
Proportion of turnover from products or services associated with Taxonomy- aligned economic activities - disclosure covering year 2025

Financial year N | 2025 | Substantial contribution criteria | DNSH criteria (Does No Significant Harm)(h) |  |  |  |
Economic activities (1) | Code (a) (2) | Turnover MNOK (3) | Proportion of Turnover, year N (4) | Climate change mitigation (5) | Climate change adaption (6) | Water (7) | Pollution (8) | Circular Economy (9) | Biodiversity (10) | Climate change mitigation (11) | Climate change adaption (12) | Water (13) | Pollution (14) | Circular Economy (15) | Biodiversity and ecosystems (16) | Minimum safeguards (17) | Proportion of Taxonomy aligned (A.1.) or eligible (A.2.) turnover, year N-1 (18) | Category (enabling activity or) (19) | Category (transitional activity) (20)
A. TAXONOMY-ELIGIBLE ACTIVITIES |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
A.1 Environmental sustainable activities (Taxonomy-aligned) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Manufacture of low carbon technologies for transport | CCM 3.3 | 1 984 | 67% | Y | N/EL | N/EL | N/EL | N/EL | N/EL | N/A | Y | Y | Y | Y | Y | Y | 51% | E |
Manufacture of other low carbon technologies | CCM 3.6 | - | 0% | Y | N/EL | N/EL | N/EL | N/EL | N/EL | N/A | Y | Y | Y | Y | Y | Y | 0% | E |
Turnover of environmental sustainable activities (Taxonomy-aligned (A.1) |  | 1 984 | 67% | 67% | 0% | 0% | 0% | 0% | 0% | N/A | Y | Y | Y | Y | Y | Y | 51% |  |
Of which enabling |  | 1 984 | 67% | 67% | 0% | 0% | 0% | 0% | 0% | N/A | Y | Y | Y | Y | Y | Y | 51% | E |
Of which transitional |  | - | 0% |  |  |  |  |  |  | N/A | Y | Y | Y | Y | Y | Y | 0% |  | T
A.2 Taxonomy-Eligible but not environmental sustainable activities (not Taxonomy-aligned activities) (g) |  |  |  |  |  |  |  |  |  |
Manufacture of low carbon technologies for transport | CCM 3.3 | 97 | 3% | EL | N/EL | N/EL | N/EL | N/EL | N/EL |  |  |  |  |  |  |  | —% |  |
Manufacture of other low carbon technologies | CCM 3.6 | 760 | 26% | EL | N/EL | N/EL | N/EL | N/EL | N/EL |  |  |  |  |  |  |  | 44% |  |
Provision of IT/OT data-driven solutions | CE 4.1 | 81 | 3% | N/EL | N/EL | N/EL | N/EL | EL | N/EL |  |  |  |  |  |  |  | 3% |  |
Turnover of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2) |  | 938 | 32% | 29% | 0% | 0% | 0% | 3% | 0% |  |  |  |  |  |  |  | 48% |  |
A. Turnover of Taxonomy eligible activities (A.1+A.2) |  | 2 825 | 96% | 93% | 0% | 0% | 0% | 3% | 0% |  |  |  |  |  |  |  | 99% |  |
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Turnover of Taxonomy-non-eligible activities |  | 33 | 1% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
TOTAL |  | 2 955 | 100% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

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Proportion of capital expenditure from products or services associated with Taxonomy-aligned economic activities - disclosure covering year 2025

Financial year N | 2025 | Substantial contribution criteria | DNSH criteria ( Does Not Significantly Harm)(h) |  |  |  |
Economic activites (1) | Code (a) (2) | CapEx MNOK (3) | Proportion of CapEx, year N (4) | Climate change mitigation (5) | Climate change adaption (6) | Water (7) | Pollution (8) | Circular Economy (9) | Biodiversity (10) | Climate change mitigation (11) | Climate change adaption (12) | Water (13) | Pollution (14) | Circular Economy (15) | Biodiversity and ecosystems (16) | Minimum safeguards (17) | Proportion of Taxonomy aligned (A.1.) or eligible (A.2.) CapEx, year N-1 (18) | Category (enabling activity or) (19) | Category (transitional activity) (20)
A. TAXONOMY-ELIGIBLE ACTIVITIES |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
A.1 Environmental sustainable activities (Taxonomy-aligned) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Manufacture of low carbon technologies for transport | CCM 3.3 | 79 | 33% | Y | N/EL | N/EL | N/EL | N/EL | N/EL | N/A | Y | Y | Y | Y | Y | Y | 65% | E |
Manufacture of other low carbon technologies | CCM 3.6 | 0 | 0% | Y | N/EL | N/EL | N/EL | N/EL | N/EL | N/A | Y | Y | Y | Y | Y | Y | 0% | E |
CapEx of environmental sustainable activities (Taxonomy-aligned (A.1) |  | 79 | 33% | 33% | 0% | 0% | 0% | 0% | 0% | N/A | Y | Y | Y | Y | Y | Y | 65% |  |
Of which enabling |  | 79 | 33% | 33% | 0% | 0% | 0% | 0% | 0% | N/A | Y | Y | Y | Y | Y | Y | 65% | E |
Of which transitional |  | 0 | 0% |  |  |  |  |  |  | N/A | Y | Y | Y | Y | Y | Y | 0% |  | T
A.2 Taxonomy-Eligible but not environmental sustainable activities (not Taxonomy-aligned activities) (g) |  |  |  |  |  |  |  |  |  |
Manufacture of low carbon technologies for transport | CCM 3.6 | 94 | 39% | EL | N/EL | N/EL | N/EL | N/EL | N/EL |  |  |  |  |  |  |  | —% |  |
Manufacture of other low carbon technologies | CCM 3.6 | 57 | 24% | EL | N/EL | N/EL | N/EL | N/EL | N/EL |  |  |  |  |  |  |  | 31% |  |
Provision of IT/OT data-driven solutions | CE 4.1 | 10 | 4% | N/EL | N/EL | N/EL | N/EL | EL | N/EL |  |  |  |  |  |  |  | 4% |  |
CapEx of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2) |  | 161 | 67% | 63% | 0% | 0% | 0% | 4% | 0% |  |  |  |  |  |  |  | 34% |  |
A. CapEx of Taxonomy eligible activities (A.1+A.2) |  | 240 | 100% | 95% | 0% | 0% | 0% | 4% | 0% |  |  |  |  |  |  |  | 99% |  |
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
CapEx of Taxonomy-non-eligible activities |  | 1 | —% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
TOTAL |  | 241 | 100% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

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Proportion of operating expenditure from products or services associated with Taxonomy-aligned economic activities - disclosure covering year 2025

Financial year N | 2025 | Substantial contribution criteria | DNSH criteria ( Does Not Significantly Harm)(h) |  |  |  |
Economic activites (1) | Code (a) (2) | OpEx MNOK (3) | Proportion of OpEx, year N (4) | Climate change mitigation (5) | Climate change adaption (6) | Water (7) | Pollution (8) | Circular Economy (9) | Biodiversity (10) | Climate change mitigation (11) | Climate change adaption (12) | Water (13) | Pollution (14) | Circular Economy (15) | Biodiversity and ecosystems (16) | Minimum safeguards (17) | Proportion of Taxonomy aligned (A.1.) or eligible (A.2.) OpEx, year N-1 (18) | Category (enabling activity or) (19) | Category (transitional activity) (20)
A. TAXONOMY-ELIGIBLE ACTIVITIES |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
A.1 Environmental sustainable activities (Taxonomy-aligned) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Manufacture of low carbon technologies for transport | CCM 3.3 | 38 | 61% | Y | N/EL | N/EL | N/EL | N/EL | N/EL | N/A | Y | Y | Y | Y | Y | Y | 56% |  |
Manufacture of other low carbon technologies | CCM 3.6 | 0 | 0% | Y | N/EL | N/EL | N/EL | N/EL | N/EL | N/A | Y | Y | Y | Y | Y | Y | 0% |  |
OpEx of environmental sustainable activities (Taxonomy-aligned (A.1) |  | 38 | 61% | 56% | 0% | 0% | 0% | 0% | 0% | N/A | Y | Y | Y | Y | Y | Y | 56% |  |
Of which enabling |  | 38 | 61% | 61% | 0% | 0% | 0% | 0% | 0% | N/A | Y | Y | Y | Y | Y | Y | 56% | E |
Of which transitional |  | 0 | 0% |  |  |  |  |  |  | N/A | Y | Y | Y | Y | Y | Y | 0% |  | T
A.2 Taxonomy-Eligible but not environmental sustainable activities (not Taxonomy-aligned activities) (g) |  |  |  |  |  |  |  |  |  |
Manufacture of low carbon technologies for transport | CCM 3.3 | 1 | 1% | EL | N/EL | N/EL | N/EL | N/EL | N/EL |  |  |  |  |  |  |  | —% |  |
Manufacture of other low carbon technologies | CCM 3.6 | 17 | 28% | EL | N/EL | N/EL | N/EL | N/EL | N/EL |  |  |  |  |  |  |  | 36% |  |
Provision of IT/OT data-driven solutions | CE 4.1 | 2 | 3% | N/EL | N/EL | N/EL | N/EL | EL | N/EL |  |  |  |  |  |  |  | 3% |  |
OpEx of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2) |  | 20 | 32% | 29% | 0% | 0% | 0% | 3% | 0% |  |  |  |  |  |  |  | 38% |  |
A. OpEx of Taxonomy eligible activities (A.1+A.2) |  | 57 | 93% | 90% | 0% | 0% | 0% | 3% | 0% |  |  |  |  |  |  |  | 94% |  |
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
OpEx of Taxonomy-non-eligible activities |  | 5 | 7% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
TOTAL |  | 62 | 100% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

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