Interim report
for H1 2023
2 / 25
Interim report
H1 2023
Guidance for 2023
Green Hydrogen Systems maintains guidance for 2023 as follows:
Business highlights
In the first half of 2023, two A-Series customer orders were
revenue recognised, totalling DKK 14 million in
revenue
Since Q1 2023, delivered electrolysers have been site acceptance tested and are commissioned for commercial
production of green hydrogen at customer sites in Chile, Norway and Denmark
In H1 2023, two orders from international customers of 7.2MW and 0.9MW were signed with targeted delivery
end of 2023 and beginning of 2024
The X-Series prototype has been installed at GreenLab in Skive, Denmark. Commissioning progressing well,
with several component and system tests already done towards targeted commercial launch in Q4 2023
During the first half of 2023, the expansion to a 400 MW electrolyser manufacturing facility in Kolding was
finalised on budget and ahead of schedule. Currently, the expanded facilities of around 18,000 m² in total are
undergoing commissioning and ramp-up
In June 2023, Green Hydrogen Systems announced the initiation of a rights issue comprising up to 104 million
new shares. By July 2023, the rights issue was completed and fully subscribed providing gross pro-ceeds of DKK
469 million to the Company
In addition to the capital raise, Green Hydrogen Systems has drawn on term loans from two major share-holders
with a total principal amount of DKK 250 million
Medium-term targets announced with targeted revenue of more than DKK 1,200 million and positive EBITDA in
2026
Revenue (DKK)
120 to 160
million
EBITDA (DKK)
-280 to -240
million
CAPEX (DKK)
270 to 300
million
The revenue guidance range reflects the uncertainty of the exact timing of the electrolysers fulfilling revenue recogni-
tion criteria within the 2023 calendar year. Assembly, test and delivery of the A-Series electrolysers can be impacted
by supply chain and quality challenges as described in section “Delivery and revenue recognition of A-Series electrolysers”
which may postpone delivery of orders expected as part of the revenue assumptions for 2023.
Furthermore, the guidance for 2023 may be negatively impacted by e.g., other supply chain disruptions, increasing
component and raw material costs, general inflation, delays in product assembly etc.
3 / 25
Conference call details
In connection with this announcement, Green
Hydrogen Systems will host a conference call.
The conference call will be held on
22 August 2023 at 10:00 AM CET.
Please visit investor.greenhydrogen.dk to access
the presentation used for the meeting.
Link to the webcast
DK: +45 89 87 50 45
International dial-in:
+44 20 3936 2999
Participant access code: 454587
Investors:
Jens Holm Binger,
Head of Investor Relations,
+45 6065 6525, jhb@greenhydrogen.dk
Media:
Jesper Buhl,
Head of Public Affairs and Media Relations,
+45 5351 5295, jbu@greenhydrogen.dk
For more information please contact:
“In the first half of 2023, we continued our product and
project deliveries. In recent months, delivered electroly-
sers have been site acceptance tested and are commis-
sioned for commercial production of green hydrogen at
customer sites in Chile, Norway and Denmark. These
are important milestones in the roll-out of the first
wave of electrolysers for green hydrogen production.
During Q2 2023, we experienced certain supply chain
and product quality challenges influencing our produc-
tion and delivery plan. These challenges are gradually
resolved with new component arrivals allowing for an
acceleration in customer deliveries from Q3 2023,
following a Q2 with no revenue recognition.
We continue to have a good dialogue with existing
and potentially new customers for both our A-Series
and X-Series and rest comfortable that new orders and
sales will pick up. The maturation of the first X-Series
prototype is progressing well, with several component
and system tests done.
In July we completed a capital raise and we were very
pleased with the result and see it as strong support
from both existing and new investors.
The gross proceeds from the rights issue
and the term loans provide the capital
and the financial flexibility to continue
executing our growth strategy.”
Sebastian Koks
Andreassen,
CEO of Green Hydrogen
Systems comments:
4 / 25
DKK ‘000 H1 2023 H1 2022 2022
Customer orders
Order backlog (MW) 20 13 13
Profit/loss
Revenue 14,713 489 10,422
Operating profit/loss, EBIT (195,493) (147,333) (282,967)
Net financials (6,784) (2,969) (4,849)
Net profit/loss for the period (199,527) (147,552) (282,316)
Balance sheet
Balance sheet total 1,761,668 1,360,730 1,549,982
Equity 659,287 998,942 862,056
Cash flows
Operating activities (87,747) (134,192) (283,869)
Investing activities (147,689) (247,865) (377,290)
Hereof investments in property, plant and equipment (90,206) (94,470) (167,049)
Financing activities 276,588 176,032 489,574
Net cash flow for the period 41,152 (206,025) (171,584)
Employees
Average number of employees 292 224 242
Key ratios
Solvency ratio (%) 37% 73% 56%
Return on invested capital (%) (13)% (10)% (20)%
Return on equity (%) (24)% (16)% (28)%
Other performance measures
EBITDA (161,641) (131,809)
(2
49,174)
EBITDA margin (1,099)% (26,972)%
(2
,391)%
Intangible CAPEX (65,498) (61,343) (128,573)
Tangible CAPEX (90,206) (94,470) (167,049)
Total CAPEX (155,704) (155,813) (295,622)
Net working capital 25,775 5,539 (37,690)
Free cash flow (235,436) (382,057) (661,158)
Cash and cash equivalents* 205,228 646,309 340,382
FTE end of period 307 241 276
The financial ratios have been calculated in accordance with the recommendations of the Association of Danish
Financial Analysts.
* Including financial assets (listed bonds) that easily can be converted into cash with a repurchase agreement (repo) less related borrowings.
Key figures
This announcement contains forward-looking statements. Words such as ‘believe’, ‘expect’, ‘may’, ‘will’, ‘plan’, ‘strate-
gy’, ‘prospect’, ‘foresee’, ‘estimate’, ‘project’, ‘anticipate’, ‘can’, ‘intend’, ‘outlook’, ‘guidance’, ‘target’ and other words and
terms of similar meaning in connection with any discussion of future operating or financial performance identify
forward-looking statements. Statements regarding the future are subject to risks and uncertainties that may result
in considerable deviations from the outlook set forth. Furthermore, some of these expectations are based on assump-
tions regarding future events which may prove incorrect.
Please also refer to the overview of risk factors in the Annual Report 2022 available at greenhydrogen.dk.
Forward-looking statements
5 / 25
Delivery and revenue recognition of A-Series electrolysers
In the first half of 2023, two A-Series customer orders were delivered and revenue recognised totalling
DKK 14 million in revenue. The two deliveries follow successful acceptance tests in close coordination
with customers. Green Hydrogen Systems will continue to support the delivered electrolysers with on-
site maintenance and remote monitoring and support as part of multi-year service agreements.
Since Q1 2023, delivered electrolysers have been site acceptance tested and are inaugurated for
commercial production of green hydrogen at customer sites in Chile, Norway and Denmark.
As previously reported, Green Hydrogen Systems has faced challenges in the supply of certain
components not fulfilling the specified coating quality and thereby causing corrosion. The issues are
gradually resolved with new component arrivals and additional arrivals expected during the coming
months. The component challenges have paused final assembly, test and delivery of containers during
Q2 2023 but are being resumed with recent factory acceptance test of an A90 electrolyser module to
a European customer.
New orders and backlog
During Q1 2023, the competitive position of Green Hydrogen Systems’ modular pressurised alkaline
electrolysers was confirmed by two orders from international customers of 7.2MW and 0.9MW re-
spectively. These orders are expected for delivery and revenue recognition in the second half of 2023
and the first half of 2024. No confirmed new orders were signed during Q2 2023.
By the end of Q2 2023, the order backlog comprises signed customer contracts of approximately 20
MW which is sufficient to meet the revenue guidance for 2023 assuming e.g., timely delivery of the
orders. The technical issues and supply disturbances in relation to the A-Series mentioned above may
challenge delivery of part of the backlog during the second half of 2023 and have also partly impacted
the ability to close new orders for the A-Series in the second quarter of 2023. However, the revenue
guidance range of DKK 120 to 160 million is maintained.
Some projects in the order backlog comprise the first phase of larger projects, and several of the
orders are from customers having made repeat orders. In addition to the established order backlog,
the Company has a continuously growing and diverse pipeline of potential customers and projects
within different application segments and geographies, along with a clear strategy for conversion of
the pipeline to order backlog projects.
X-Series prototype delivered for installation and test
Development of the first X-Series prototype is progressing positively. The X-Series prototype has
been installed at the GreenLab facility in Skive, Denmark. Commissioning is progressing well, with
several component and system tests already done towards targeted commercial launch in Q4
2023. The test programme undergoes a series of interdependent and coordinated phases starting
with basic software tests after the installation and commissioning phase, followed by tests with
gradually increasing pressure up to the targeted perfor-mance values. Assuming that satisfactory test
data is achieved by the end of Q3 2023, the Company aims towards closing the first commercial
orders for X-Series during Q4 2023. In that case, manufac-turing and delivery of first X-Series units to
customers will be targeted for Q3 and Q4 2024. Green Hydrogen Systems is in dialogue with
potential customers for the possibility of partnering on a test site for the second X-Series prototype.
Business highlights
6 / 25
Factory expansion
During the first half of 2023, the expansion of the manufacturing facilities in Kolding was finalised
on budget and ahead of schedule. Currently, the expanded facilities of around 18,000 m² in total are
undergoing commissioning and ramp-up. Once fully upgraded, it is expected to increase the total
potential manufacturing capacity to around 400 MW per year, with a targeted utilisation of 75 MW
in 2024, 150 MW in 2025 and more than 200 MW in 2026. The expanded facilities are expected to
enable scalable serial production of the A-Series and X-Series, as well as increased warehousing area
and improved quality control.
Based on an extrapolation of the current maximum manufacturing capacity, the continuous optimisation
of manufacturing and assembly processes and the planned introduction of the X-Series, the existing man-
ufacturing facilities will support a potential manufacturing capacity of more than 1,000 MW per year.
Capital raise provides strong support for Green Hydrogen Systems’
growth strategy
On 13 June 2023, Green Hydrogen Systems announced the initiation of a rights issue comprising up
to 104,296,612 new shares. By July 2023, the offering was completed and fully subscribed, provid-
ing the Company gross proceeds of DKK 469 million. In addition to the capital raise, Green Hydrogen
Systems has drawn on term loans made available by the major shareholders, APMH Invest A/S and
Arbejdsmarkedets Tillægspension, with a total principal amount of DKK 250 million. The combined gross
proceeds and debt financing totalling DKK 719 million will, in combination with currently available funds
and debt financing, be funding growth investments and the operation of the Company as follows:
1. Continued R&D efforts to further increase the system performance of the A-Series product
platform and development of the X-Series product platform
2. Investments to enable product industrialisation and scale-up of the production facilities
3. Strengthening the balance sheet to fulfil counter guarantees required by customers
4. Expansion of commercial and organisational ramp-up by attracting the needed competencies
The above initiatives will support the realisation of the medium-term targets for 2026, targeting
revenue of more than DKK 1,200 million in 2026.
Medium-term targets 2026
In March 2023, medium-term targets for 2026 were announced. The medium-term targets reflect the
expected competitiveness of the Company’s product offering, continued positive development of the
green hydrogen market with an increase in expected demand for electrolysis capacity and the impacts
from the delay in the commercial ramp-up caused by the issues with the A-Series in 2022.
By 2026, the Company targets total revenue of more than DKK 1,200 million from contracts with
customers. In 2025, the Company targets delivery and revenue recognition of 150 MW of electroly-
sis capacity corresponding to revenue of around DKK 1,000 million, including service revenue from
installed electrolysis. Furthermore, the Company targets a positive EBITDA in 2026. The revenue
growth is expected to be the main contributor to the targeted EBITDA development. In addition, the
Company’s cost-out plan is expected to contribute to a gradual improvement in margins.
The Company’s medium-term targets are based on a number of factors, estimates, uncertainties and
assumptions, many of which are outside the Company’s control or influence, and it is likely that one
or more of the assumptions that the Company has relied upon will not prove to be accurate in whole
or in part. The Company has based its assumptions and estimates on information available when the
medium-term targets were prepared.
7 / 25
Market fundamentals
The market for green hydrogen is continuously developing as the world moves from an energy system
built on fossil fuels. During the past 12 months, Green Hydrogen Systems has noted recent industry
trends impacting demand for green hydrogen, such as continued adoption of hydrogen strategies i.e., the
US Inflation Reduction Act (IRA) and EU’s response to the IRA, increased focus on security and reliability
of energy supply, the surge in planned green hydrogen projects and general delays in project rollouts.
The United States adopted the IRA in August 2022. The IRA represents a significant climate legisla-
tion and a large investment in climate and clean energy solutions and is designed to reduce the U.S.
CO2 emissions by 50% in 2030. With provisions aimed at implementing a clean hydrogen production
tax credit of up to USD 3 per kilogram, the IRA is expected to have a profound impact on the develop-
ment of green hydrogen produced from renewables. Scaling up the development of hydrogen infra-
structure and supporting hydrogen investments are also identified as critical areas to support hydro-
gen uptake in the EU.
In early 2023, the EU Green Deal Industrial Plan was presented as a response to IRA with the goal
of enhancing the competitiveness of Europe’s net-zero industry ambition and supporting the fast
transition to climate neutrality. The core of the Green Deal Industrial Plan is to promote the creation
of a more supportive environment for deploying the clean tech manufacturing capacity required to
meet the EU’s ambitious green targets, and it is complementing the already ongoing efforts under the
European Green Deal and REPowerEU. The REPowerEU also caters for independence from fossil fuel
and the security of energy supply in the EU.
The combination of significant political interest and industrial support drives a surge in new green
hydrogen investment plans and project announcements. According to Hydrogen Europe, the total
planned electrolysis capacity of green hydrogen projects announced in Europe is estimated to reach
around 31 GW by 2025 (379 projects), 139 GW by 2030 (628 projects), and 191 GW of electrolyser
installed power by 2040 (644 projects). The capacity of planned projects has increased significantly
over the past two years, with only 9 GW of planned projects estimated in 2020 to be online by 2030,
revealing a more than 15 times increase in planned projects since then. Nonetheless, the industry has
broadly experienced delays in many of the ongoing project rollouts, which have resulted in revised
start days. In 2020 expectation was that 523 MW of capacity would be deployed in 2022, however,
the accumulated actual deployed electrolysis capacity was 162 MW. The most cited reasons for the
delays include regulatory uncertainty, lack of financial incentives, supply chain challenges and offtake
agreements.
8 / 25
Financial performance
Profit & loss
DKK ‘000 H1 2023 H1 2022 Full year 2022
Revenue 14,713 489
1
0,422
Gross profit* (87,198) (57,045)
(113,695)
EBITDA (161,641) (131,809)
(249,174)
Operating profit, EBIT (195,493) (147,333) (282,967)
Net financials (6,784) (2,969)
(
4,849)
Net profit for the period (199,527) (147,552) (282,709)
* Gross profit comprises revenue less direct production costs as well as indirect costs such as salaries, depreciation of production facilities and provisions for onerous
customer contracts
Revenue
In H1 2023, revenue from customer contracts was DKK 14.7 million. This is an increase of DKK 14.2 million com-
pared to H1 2022. Delivery of two customer orders contributed to the revenue increase. Service revenue from the
orders delivered YTD 2023, as well as from orders delivered end of 2022, will be recognised at a later stage when
services are performed.
Due to certain challenges in the supply of certain components not fulfilling the specified coating quality, acceptance
tests for part of the backlog have been paused during the second quarter of 2023. These challenges are currently
being managed in order to resume tests and revenue recognition of the A90 electrolyser in Q3 2023.
Gross profit and EBITDA
In H1 2023, gross profit and EBITDA were DKK -87.2 million and DKK -161.6 million, respectively compared to
DKK –57.0 million and DKK -131.8 million in H1 2022.
In H1 2023, the implementation of modifications to address certain issues in combination with price inflation for
materials and components and additional work required in the assembly and manufacturing process, contributed to
increased costs of DKK 30-40 million (expected at around DKK 80 million full year 2023). The increased cost level
(where of around 50% is one-off costs) led to an adjustment of the EBITDA guidance for 2023 in May 2023. Green
Hydrogen Systems has adopted a profit protection plan providing for expected savings partly covering the increased
costs. Cost-cutting measures in the profit protection plan include postponement of hiring of non-critical resources,
postponement of investments as well as reduction of expenses from sales and administration expenses.
Net financials and net profit
In H1 2023, net financials were DKK -6.8 million compared to DKK 3.0 million in H1 2022. The increase in financial
expenses was due to increase in interest payments related to utilisation of financial assets (triple-A rated Danish
mortgage bonds) through Repurchasing Agreements (REPO).
Net profit was DKK -199.5 million compared to DKK -147.5 million in H1 2022.
9 / 25
Balance sheet and cash flow
DKK ‘000 H1 2023 H1 2022 Full year 2022
Total assets 1,761,668 1,360,730
1,549
,982
Equity 659,287 998,942
86
2,056
Net cash flow 41,152 (206,025)
(
171,584)
Cash and cash equivalents 207,228 646,309
34
0,382
Balance sheet
At the end of H1 2023, total assets were DKK 1,762 million compared to DKK 1,361 million end of H1 2022. This
was mainly driven by an increase in non-current assets where intangible assets and property, plant & equipment have
increased by DKK 129 million and DKK 119 million respectively. The increase in intangible assets reflects the invest-
ments in R&D projects such as development of the A-Series and X-Series as well as other technology improvement
projects. The increase in property, plant and equipment reflects the progress and finalisation of the factory expansion
to 400 MW production capacity and investments in production equipment and test facilities.
Furthermore, inventory has increased by DKK 94 million. Inventory consists of parts, subassemblies and materials as
well as electrolysers delivered to customers sites but not revenue recognised yet.
Equity decreased by DKK 340 million compared to end of H1 2022 mainly as a result of negative net profit for the
period.
Net cash flow and cash balance
In H1 2023, net cash flow was DKK 41 million compared to DKK -206 million in H1 2022. The positive net cash flow
development was mainly driven by utilisation of financial assets (triple-A rated Danish mortgage bonds) through
REPO. Cash flow from operating activities increased by DKK 46 million mainly due to positive change in net working
capital. By the end of H1 2023, cash and cash equivalents were DKK 207 million including cash-like financial assets
less borrowings.
As described in above section ‘Capital raise provides strong support for Green Hydrogen Systems’ growth strategy’, Green
Hydrogen Systems completed a share issue providing gross process of DKK 469 million. In addition, Green Hydrogen
Systems has drawn on a term loan of DKK 250 million. The combined gross proceeds and debt financing totalling
DKK 719 million have been recognised in the balance sheet in July 2023 and are therefore not included in the balance
sheet and cash flow for H1 2023.
10 / 25
Management’s statement
The Executive Management and Board of Directors have today considered and adopted the Interim
Financial Statements for the first six months of 2023 for Green Hydrogen Systems A/S . The financial
report has not been audited or reviewed by the Company’s independent auditors.
The Interim Financial Statements is prepared in accordance with IAS 34, Interim Financial Reporting,
as adopted by the EU and additional requirements in the Danish Financial Statements Act.
In our opinion the Interim Financial Statements give a true and fair view of the financial position at 30
June 2023 of the Company and of the results of the Company operations for the first six months of 2023.
In our opinion, Management’s Review includes a true and fair account of the development in the op-
erations and financial circumstances of the Company, of the results for the period and of the financial
position of the Company as well as a description of the most significant risks and elements of uncer-
tainty facing the Company.
Over and above the disclosures in the interim financial report, no changes in the Company’s most sig-
nificant risks and uncertainties have occurred relative to the disclosures in the annual report for 2022.
Kolding, 22 August 2023
Executive Management
Board of Directors
11 / 25
Statement of profit or loss
DKK ‘000 Notes H1 2023 H1 2022 2022
Revenue from contracts with customers 3 14,713 489 10,422
Production costs (101,911 ) (57,534 ) (124,118 )
Gross profit (87,198 ) (57,045 ) (113,695 )
Research and development costs (37,685 ) (33,600 ) (55,172 )
Sales and distribution costs (20,218 ) (14,111 ) (28,932 )
Administration costs (50,394 ) (42,577 ) (85,168 )
Operating profit (loss) (EBIT) (195,493 ) (147,333 ) (282,967 )
Financial income 4,990 192 289
Financial expenses (11,774 ) (3,161 ) (5,138 )
Profit/(loss) before tax (202,277 ) (150,302 ) (287,816 )
Income tax 5 2,750 2,750 5,500
Profit/(loss) for the period (199,527 ) (147,552 ) (282,316 )
Statement of comprehensive income
DKK ‘000 Notes H1 2023 H1 2022 2022
Profit/(loss) for the period (199,527 ) (147,552 ) (282,316 )
Other comprehensive income
Items that may be reclassified to profit or loss
Changes in the fair value of debt instruments at fair value
through other comprehensive income 6 6,495 (16,704 ) (23,981 )
Other comprehensive income for the period 6,495 (16,704 ) (23,981 )
Total comprehensive income for the period (193,032 ) (164,257 ) (306,296 )
DKK Notes H1 2023 H1 2022 2022
Earnings per share attributable to shareholders (2.40 ) (1.80 ) (3.42 )
Diluted earnings per share attributable to shareholders (2.40 ) (1.80 ) (3.42 )
Income Statement
12 / 25
DKK ‘000 Notes
30 June
2023
30 June
2022
31 December
2022
Intangible assets 6 242,990 113,638 173,962
Property, plant and equipment 369,064 249,578 313,586
Financial assets at fair value through other comprehensive
income 7 448,103 763,410 562,443
Right-of-use assets 12,274 9,290 7,875
Income tax receivables 2,750 2,750 0
Deposits 652 923 908
Total non-current assets 1,075,833 1,139,589 1,058,773
Inventories 191,450 97,785 170,004
Trade receivables 28,209 7,514 10,861
Income tax receivables 5 5,500 5,500 5,500
Prepayments 19,186 2,940 10,510
Other receivables 12,364 46,504 16,393
Financial assets at fair value through other comprehensive
income 7 292,633 0 182,600
Cash and cash equivalents 136,492 60,899 95,340
Total current assets 685,835 221,141 491,209
Total assets 1,761,668 1,360,730 1,549,982
DKK ‘000 Notes
30 June
2023
30 June
2022
31 December
2022
Share capital 8 83,437 81,987 83,166
Share premium 1,742,521 1,740,789 1,742,521
Reserve for development costs 184,162 83,926 131,608
Reserve for financial assets at fair value through other
comprehensive income (19,657 ) (18,875 ) (26,152 )
Accumulated deficit (1,331,177 ) (888,885 ) (1,069,088 )
Total equity 659,287 998,942 862,056
Borrowings 9 112,027 0 0
Lease liabilities 7,873 4,545 4,560
Total non-current liabilities 119,900 4,545 4,560
Borrowings 9 676,264 178,000 500,000
Trade payables 69,308 67,707 65,127
Lease liabilities 4,492 4,362 3,440
Contract liabilities 101,232 37,968 41,428
Deferred income 35,203 32,930 33,297
Provisions 24,088 13,677 14,944
Other payables 71,894 22,599 25,131
Total current liabilities 982,481 357,243 683,366
Total liabilities 1,102,381 361,788 687,927
Total equity and liabilities 1,761,668 1,360,730 1,549,982
Balance sheet
13 / 25
DKK ‘000 Notes
Share
capital
Share
premium
Reserve
for devel-
opment
costs
Reserve for
financial
assets at
fair value
through
other com-
prehensive
income
Accu-
mulated
deficit
Total
equity
Equity at 1 January 2022 81,987 1,740,789 43,189 (2,171 ) (691,953 ) 1,171,842
Loss for the period 0 0 40,737 0 (188,289 ) (147,552 )
Other comprehensive
income 0 0 0 (16,704 ) 0 (16,704 )
Total comprehensive
income for the period 0 0 40,737 (16,704 ) (188,289 ) (164,257 )
Transactions with owners
in their capacity as owners
Prepaid exercise of
warrants, cash 0 0 0 0 296 296
Share-based payments 4 0 0 0 0 (8,939 ) (8,939 )
Total transactions with
owners 0 0 0 0 (8,643 ) (8,643 )
Equity at 30 June2022 81,987 1,740,789 83,926 (18,875 ) (888,885 ) 998,942
Equity at 1 January 2023 83,166 1,742,521 131,608 (26,152 ) (1,069,088 ) 862,056
Loss for the period 0 0 52,554 0 (252,081 ) (199,527 )
Other comprehensive
income 0 0 0 6,495 0 6,495
Total comprehensive
income for the period 0 0 52,554 6,495 (252,081 ) (193,032 )
Transactions with owners
in their capacity as owners
Capital increase, cash 7 271 0 0 0 0 271
Share-based payments 4 0 0 0 0 (10,008 ) (10,008 )
Total transactions with
owners 271 0 0 0 (10,008 ) (9,736 )
Equity at 30 June 2023 83,437 1,742,521 184,162 (19,657 ) (1,331,177 ) 659,287
Statement of changes in equity
14 / 25
DKK ‘000 Notes H1 2023 H1 2022 2022
Loss for the period (199,527 ) (147,552 ) (282,316 )
Changes in net working capital 42,051 (37,638 ) (71,226 )
Adjustments 73,727 50,537 64,884
Interests received 7,195 2,392 3,977
Interests paid (11,194 ) (1,930 ) (4,688 )
Income taxes paid/received 0 0 5,500
Net cash flow from operating activities (87,747 ) (134,192 ) (283,869 )
Payment for property, plant and equipment (65,498 ) (94,470 ) (167,049 )
Payment for development costs (90,206 ) (61,343 ) (128,573 )
Payment for financial assets at fair value through other
comprehensive income 6 0 (103,367 ) (103,367 )
Sale of financial assets at fair value through other compre-
hensive income 6 8,015 11,316 21,699
Net cash flow from investing activities (147,689 ) (247,865 ) (377,290 )
Principal elements of lease payments (2,688 ) (2,264 ) (4,547 )
Proceeds from borrowings 8 288,291 178,000 500,000
Proceeds from share issues 271 0 2,911
Warrants exercised (prepayment) 0 296 0
Cash settlement, RSU program (9,286 ) 0 (8,790 )
Cash flow from financing activities 276,588 176,032 489,574
Net cash flow for the period 41,152 (206,025 ) (171,584 )
Cash and cash equivalents, beginning of the period 95,340 266,924 266,924
Cash and cash equivalents at end of the period 136,492 60,899 95,340
Cash flow statement
15 / 25
Notes
1. Accounting policies 16
2. Critical accounting estimates and judgements 17
3. Revenue from contracts with customers 18
4. Share-based payment plans 18
5. Tax on profit for the period 19
6. Intangible assets 19
7. Financial assets at fair value through other comprehensive income 20
8. Share capital 21
9. Borrowings 22
10. Fair value measurement of financial instruments 23
11. Commitments and contingent liabilities 24
12. Assets pledged as security 24
13. Events after the balance sheet date 25
16 / 25
Notes
1. Accounting policies
This condensed interim financial report for the first half
year of 2023 is presented in accordance with IAS 34
Interim Financial Reporting as endorsed by the EU and
additional Danish disclsoure requirements regarding
interim reporting by listed companies. The interim re-
port does not include all the notes of the type normally
included in an annual financial report. Accordingly, this
report is to be read in conjunction with the IFRS finan-
cial statements for the year ended 31 December 2022.
Apart from below mentioned changes, the accounting
policies are consistent with those of the previous finan-
cial year and corresponding interim reporting period.
For a full description of the accounting policies applied,
reference is made to note 1 in the Company’s financial
statements for 2022.
New format for presentation of income statement
In connection with preparation of the interim financial
report for the first half of 2023 Managment has chosen
to change the format for presenting the income state-
ment. For the H1 2023 interim period and going forward
expenses will be classified by their function. For previous
reporting periods, the Company presented expenses
on the basis by their nature. Management believes that
a classification of expenses by function better reflects
the Company’s activities and is also in alignment with
how the analysis of expenses is presented in the internal
management reporting. Thus, it is Management’s view
that an income statement presenting the Company’s ex-
penses by function provides more reliable information.
Comparative figures for the H1 2022 interim period and
full year 2022 have been reclassified accordingly. The
change of format for classifying expenses did not have
any impact on the result for the periods presented.
The expenses are classified by their function as follows:
Production costs
Production costs, comprise the costs incurred to achieve
revenue for the year. Costs consist of raw materials,
consumables, direct labour costs, warranty costs, trans-
portation costs and indirect costs such as salaries as well
as depreciation of production facilities, equipment and
relevant right-of-use assets. Furthermore, provisions for
onerous customer contracts are included in production
costs.
Reseach and development costs
Research and development costs primarily comprise
employee costs, internal and external costs related to in-
novation and new technologies, direct and indirect costs
related to rework due to design changes and upgrades,
as well as amortisation and depreciation on capitalised
development costs.
Sales and distribution costs
Sales and distribution costs comprise costs incurred for
the sale and distribution of products, etc. sold during the
year. Also included are costs relating to employees and
depreciation.
Administration costs
Administration costs comprise costs incurred during the
year for management and administration of the Compa-
ny and includes costs for administrative staff, manage-
ment, IT, office premises, office costs, and depreciation.
New and amended accounting standards
A number of amended standards became applicable for
the current reporting period. As of 1 January 2023, the
Company has implemented all amended standards and
interpretations as adopted by the EU and applicable
for the 2023 financial year. This includes the changes
to IAS 1 on disclsoures on accounting policies, IAS 8 on
definition of accounting estimates and IAS on deferred
tax. The Company did not have to change its accounting
policies or make retrospective adjustments as a result of
adopting these amended standards.
Further, the IASB has issued several new standards and
amendments not yet in effect or endorsed by the EU
and therefore not relevant for the preparation of the
H1 2023 interim financial report. None of these new
or amended standards are currently expected to have
any significant impact on the financial statements of the
Company in the reporting periods in which they become
mandatory or in future periods.
17 / 25
Notes
2. Critical accounting estimates and judgements
The preparation of financial statements requires the use
of accounting estimates which, by definition, will seldom
equal the actual results. Management also needs to ex-
ercise judgement in applying the Company’s accounting
policies.
The judgments, estimates and the related assumptions
made are based on historical experience and other
factors that Management considers to be reliable, but
which by their very nature are associated with uncer-
tainty and unpredictability. These assumptions may
prove incomplete or incorrect, and unexpected events or
circumstances may arise. Estimates and judgements are
continually evaluated.
Primary financial statement line items in which more
significant accounting estimates and judgements are
applied are listed in note 2 Critical accounting estimates
and judgements of the financial statements for 2022.
Valuation of inventories and onerous contracts
As at 31 December 2022, a write-down of inventory
amounting to DKK 26,493 thousand was recognised
due to expected negative margins on electrolysers
under construction and late delivery rebates related to
some of these electrolysers. As these onerous contracts
related to units under construction dedicated to fulfill
specific customer contracts, a write-down of inventories
was recognised. Assumptions and estimates relating to
a write-down of inventory are based on Management’s
expectations to materials and labour in determining the
costs to complete the construction and timing of the
delivery of these units. Management has accordingly
revised its estimate during 2023, whereby the write-
down of inventories has been increased by DKK 27,418
thousand. The write-down has been recognised in pro-
duction costs. Thus, as at 30 June 2023 the write-down
in inventories amounts to DKK 53,911 thousand.
At 31 December 2022, Management has in addition
recongised a provision related to onerous customer
contracts of DKK 10,476 thousand where the unavoid-
able costs of fulfilling the obligations under the contract
exceed the contract amount. The separate provision is
only recognised in excess of any write-down made on
dedicated electrolysers included in inventory as de-
scribed above. As at 30 June 2023 the total provision
related to onerous customer contracts amounts to DKK
21,226 thousand.
When determining whether a contract is loss-making,
the Company includes costs that are incremental such
as costs for material and labour as well as an allocation
of costs directly related to contract activities.
Impairment of capitalized development costs
The Company continues to undertake internal devel-
opment projects for the advancement of electrolysers
and electrodes. As part of preparing the interim finan-
cial statements as of 30 June 2023, Management has
assessed whehter there are any indicatations that either
completed development projects or development proj-
ects in progress may be impaired. Despite the current
macro-economic environment with higher inflation and
increasing interest rates, Managment finds in continu-
ance with the description in note 2 to the financial state-
metns for 2022 that the development projects proceed
as expected and with no indication that the capitalised
costs have over-run their operational and commercial
value. Thus, no impairment tests have been made for the
first six months of 2023.
18 / 25
3. Revenue from contracts with customers
The following table displays revenue by product offering:
DKK ‘000 H1 2023 H1 2022
Product revenue 14,262 280
Service and other revenue 451 209
Total revenue by product offering 14,713 489
Revenue recognised at a point in time 14,579 280
Revenue recognised over time 134 209
Total revenue by revenue recognition 14,713 5,172
4. Share-based payment plans
As described in details in note 7 in the Company’s finan-
cial statements for 2022, the Company operates various
share-based payment plans for the Executive Manage-
ment and key employees.
Notes
Performance Share Units
Under the Long-Term Incentive plan introduced in 2022,
the Company has in 2023 granted additional Performance
Share Units (PSUs) free of charge to the participants.
The PSUs will in accordance with the terms of the pro-
gram be vesting over a three-year period and is subject
to fulfillment of predetermined revenue targets.
Number of PSUs
DKK ‘000 H1 2023 H1 2022
Outstanding at 1 January 2023 97 0
Granted during the period 187 93
Forfeited during the period (20 ) 0
Outstanding at 30 June 2023 264 93
Weighted average fair value of PSUs granted during the period (DKK per PSU) 31,74 27,71
The fair value corresponds to the grant date fair value of
the Company’s share.
Total share-based payment expense recognised in the
income statement for the period relates to:
DKK ‘000 H1 2023 H1 2022
RSU program 1,565 1,759
PSU programs (630) 375
Total expense for equity settled programs 935 2,134
Cash settled (1,656) (1,980)
Total share-based payment expense (721) 154
19 / 25
4. Share-based payment plans (continued)
In acccordance with the requirements in IFRS 2 Share-
base Payment, Management revises on an on-going
basis its estimate of the number of PSUs expected to
vest. As Management considers the performance target
for the 2022 grant unlikely to be met, no share-based
payment expense should be recognised for that grant.
Consequently, all associated expenses previously rec-
ognised have been reversed during H1 2023.
The RSU program granted to the Company’s CEO was
settled in June 2023. As a part of the RSU program was
5. Tax on profit for the period
Current tax on losses for the periods are originating
from the tax credit scheme for research and develop-
6. Intangible assets
In the first half of 2023 the Company has continued its
investments in continuous advancement and optimisa-
tion of the A-Series, improving design, documentation
and product reliability as well as the stack efficiency and
Notes
offered to be settled in cash, it was reclassified from be-
ing equity-setteld to be cash-setteld for which a liability
of DKK 10,943 thousand were recognised with a corre-
sponding entry to equity. The liability was subsequently
remeasured at fair value giving rise to an adjustment of
DKK 1,656 thousand, which was recognised as admin-
istrative costs. In connection with the settlement of the
RSU program 271,329 new shares were issued, cf. note
7 (share capital).
ment costs, under which the tax value of accumulated
tax losses up to DKK 25 million are paid to the Company.
development and commercialisation of the upcoming
X-Series platform. The total amount invested in develop-
ment projects in H1 2023 is DKK 87 million.
The amount recognised in equity for the period comprise of:
DKK ‘000 H1 2023 H1 2022
Setting up liability from reclassifying program to be cash settled (10,943) (11,073)
Total share-based payment expense for equity-settled programs 935 2,134
Total amount recognised in equity for the period (10,008) (8,938)
20 / 25
7. Financial assets at fair value through other comprehensive income
Notes
DKK ‘000 H1 2023 H1 2022
31 December
2022
Cost at January 1 776,133 694,465 694,465
Additions for the period 0 103,367 103,367
Disposals for the period (8,015) (11,316) (21,699)
Cost at end of period 768,118 786,517 776,133
Accrued interest January 1 (4,939) (800) (800)
Accrued for the period (2,785) (3,431) (4,139)
Accrued interest (7,725) (4,231) (4,939)
Fair value adjustment at January 1 (26,152) (2,171) (2,171)
Fair value adjustment for the period 6,495 (16,704) (23,981)
Fair value adjustment at end of period (19,657) (18,875) (26,152)
Net book value at end of period 740,736 763,410 745,042
Financial assets at fair value through other comprehensive income
Non-current assets 448,103 763,410 562,443
Current assets 292,633 0 182,600
Financial assets at fair value through other comprehensive income at
end of period 740,736 763,410 745,042
DKK ‘000 H1 2023 H1 2022
31 December
2022
Listed bonds
Gains / losses recognised in other comprehensive income 6,495 (16,704) (23,981)
Interest expense from investments held at fair value
through other comprehensive income recognised in the
income statement (580) (1,231) (1,290)
Listed bonds at end of period 5,914 (17,935) (25,271)
During the period, the following gains and losses were
recognised in the income statement and other compre-
hensive income related to the Company’s financial asset
at fair value through other comprehensive income:
Information about the fair value measurement of the
listed bonds is provided in note 9.
21 / 25
8. Share capital
Notes
The share capital comprise:
30 June 2023 30 June 2022 31 December 2022
Number of
A shares
Nominal
value (DKK)
Number of
A shares
Nominal
value (DKK)
Number of
shares
Nominal
value (DKK)
Opening balance 83,166 83,166 81,987 81,987 81,987 81,987
Capital increase, cash 271 271 0 0 1,179 1,179
Share capital (fully paid) 83,437 83,437 81,987 81,987 83,166 83,166
All shares have nominal value of DKK 1. All shares issued
are fully paid. Each share carry one vote.
22 / 25
Notes
9. Borrowings
The Company’s borrowings consist of the following:
DKK ‘000
30 June
2023
30 June
2022
31 December
2022
Secured borrowings (repo) 672,000 178,000 500,000
Mortgage loans 116,291 0 0
Total borrowings 788,291 178,000 500,000
Current 676,264 178,000 500,000
Non-current 112,027 0 0
Total borrowings 788,291 178,000 500,000
At 30 June 2023, the Company’s borrowings relating to
the repurchase agreement (repo) involving the Compa-
ny’s holdings of listed bonds amount to DKK 672 million
(2022: DKK 500 million). The secured borrowings in
the repo are denominated in DKK and carry a variable
interest rate (repo rate). Generally the borrowings have
a maturity of 1 month, which though may be up to 12
months. Thus, the secured borrowings are all classified
as current liabilities in the balance sheet.
As further described in the financial statements for
2022, the Company measures the related listed bonds
at fair value through other comprehensive income. At
30 June 2023, the carrying amount of the listed bonds
transferred under the repo amounts to DKK 666 million
(2022: DKK 500 million).
In March 2023, the Company entered into a mortgage
credit financing agreement with Nykredit Realkredit A/S
providing for a DKK 119 million mortgage financing of
the Company’s domicile building located at Nordager
to DKK 116 million (2022: DKK 0 million). The loans are
denominated in DKK and carry both a variable and fixed
interest rate. The loans have a term of 20 years and are
to be repaid in quarterly instalments.
DKK ‘000 Interest rate Maturity
30 June
2023
31 December
2022
Mortgage loan with a 5 year fixed interest 5.74%-5.78% 2042 87,302 0
Mortgage loan with variable interest Cibor 3 + 1.55% 2043 28,990 0
Total mortgage loans 116,292 0
At 30 June 2023, the carrying amount of the assets
pledged as security for the mortage credit financing
agreement amount to DKK 292 million (2022: DKK 0
million).
23 / 25
10. Fair value measurement of financial instruments
Notes
This note provides an update on the judgements and
estimates made by the Company in determining the
fair values of the financial instruments since the 2022
financial statements of the Company. To provide an indi-
cation about the reliability of the inputs used in deter-
mining fair value, the Company has classified its financial
instruments into the three levels prescribed under the
accounting standards.
For financial assets and liabilities of short-term nature,
such as trade receivables and trade payables, the carry-
ing amount approximates their fair value. For borrow-
ings, the fair values are not materially different from
their carrying amounts, since the interest payable on
those borrowings is close to current market rates. At
30 June 2023, the fair value of mortage loans with a
5 year fixed interest rate amounts to DKK 98,289
thousand (2022: 0 DKK) compared to a carrying
amount of DKK 87,302 thousand.
The fair value of financial instruments traded in active
markets is based on quoted market prices at the end of
the reporting period. These instruments are included
in level 1. If one or more of the significant inputs is not
based on observable market data, the instrument is
included in level 3.
Exit-payment derivatives
Financial instruments categorised within level 3
comprise the exit-payment derivatives related to the
loans from Danmarks Grønne Investeringsfond which
privously have been repaid in full. Valuation methods
remain unchanged from the description in note 23 to
the financial statements for 2022 and with no significant
changes in fair values.
DKK ‘000
30 June
2023
30 June
2022
Recurring fair value measurements
Financial assets at fair value through other comprehensive income:
Listed bonds 740,736 763,410
Total financial assets - level 1 740,736 763,410
Financial liabilities measured at fair value
Exit-payment derivatives 3,000 3,000
Total financial liabilities - level 3 3,000 3,000
24 / 25
11. Commitments and contingent liabilities
12. Assets pledged as security
Notes
Guarantees
The Company has provided payment guarantees of DKK
16 million to suppliers in relation to the expansion of its
current facilities in Kolding, Denmark. Cash balances of
9 millions and listed bonds of 7 millions related to these
guarantees are restricted.
The Company has provided counter guarantees of DKK
30 million related to prepayments from customers. Cash
The carrying amounts of assets pledged as security for
current and non-current borrowings are:
On July 2021 the Board of Directors has in line with the
Company’s strategy approved its planned second expan-
sion phase of its current combined manufacturing, R&D,
and office facilities in Kolding, Denmark.
balances of DKK 30 million related to these guarantees
are restricted.
Contingent liabilities
None
Commitments
Capital commitments
The Company has signed agreements amounting to
DKK 168 million in construction of the phase 2 expan-
sion. End of June 2023 there are no further obligations
in relation to the construction agreement.
DKK ‘000
30 June
2023
31 December
2022
Property, plant and equipment 0 16,000
DKK ‘000
30 June
2023
31 December
2022
Non-current
Property, plant and equipment 292,000 0
Financial assets at fair value through other comprehensive income 446,000 317,400
Total current assets pledged as security 738,000 317,400
Current
Financial assets at fair value through other comprehensive income 220,000 182,600
Total non-current assets pledged as security 220,000 182,600
Total assets pledged as security 958,000 500,000
25 / 25
13. Events after the balance sheet date
Notes
Rights issue
On 13 June 2023, the Company initiated a rights issue
at a subscription ratio of 5:4 and a subscription price
of DKK 4.50 per new share. The offering comprised
up to 104,296,612 new shares which are issued with
pre-emptive rights to subscribe for the new share for
the Company’s existing shareholders. On 4 July 2023,
the Company announed that a total of 100,619,454 of
the new shares have been subscribed for by exercise
of the pre-emptive subscription right, and additional
3,677,158 of new shares were subscribed for as a result
of applications for subscription of remaining shares.
The total number of shares subscribed corresponds to
gross proceeds accruing to the Company of approxi-
mately DKK 469 million. The offering was completed on
6 July 2023.
Transaction costs related to the rights issue we will
be recognised in equity approximates in total DKK 40
million.
Term loan agreements
In June 2023, the Company further entered into two
term loan agreements with existing share-holders with a
total principal amount of DKK 250 million. The disburse-
ment of the term loans were conditional on the Company
accepting subscription applications for new shares in the
offering to raise gross proceeds of DKK 250 million or
more. The term loans are secured by way of a DKK 120
million floating charge over certain of the Company’s as-
sets as well as DKK 130 million second priority mortage.
The loans contain various customary provisions and
financial covenants. The loans carry a fixed interest rate
of 15% and are due for full repayment on 30 June 2026,
however with an early prepayment option.