Green Hydrogen Systems (GREENH) Investor Update summary

Market outlook and challenges

• Hydrogen market and electrolyzer outlook have been downgraded due to industry-wide cost increases, technological challenges, and offtake difficulties.

• Global electrolyzer capacity expectations have been significantly reduced, with the EU lowering its 2030 target from 10 million to 2 million tons.

• Despite the downturn, large projects are still reaching final investment decisions, and 2 million tons by 2030 remains a significant market opportunity.

Strategic initiatives and restructuring

• Initiated a major cost-out and restructuring program targeting up to 50% reduction in X-Series product costs and 40-50% reduction in fixed costs by 2026.

• Restructuring will impact approximately 100 employees and incur one-off costs of DKK 100-150 million in 2024 and Q1 2025.

• Focus will shift exclusively to the X-Series, with A-Series backlog completed by Q1 2025 and continued service for delivered units.

Financial guidance and capital needs

• 2024 revenue guidance lowered to DKK 105-145 million, EBITDA (including restructuring) guided at -DKK 400 to -DKK 300 million, and CapEx reduced to DKK 130-160 million.

• Two capital raises of at least DKK 300 million each are planned, with the first needed by October 2024 to avoid breaching lender covenants.

• Without new funding, capital reserves will be depleted in H1 2025; constructive talks are ongoing with major shareholders and lenders.