Financial Highlights (Q1 2023) - Revenues reached €582 thousand, marking the first quarter with recognized revenue, stemming from a technology sale of 62 HEVO-Solar units[9, 74] - Cost of goods sold amounted to €(1,120) thousand[9] - Operating expenses totaled €(5,975) thousand, a decrease of €1.78 million compared to the previous quarter[9, 74] - Operating loss was €(7,368) thousand[9] - Pre-tax loss amounted to €(2,598) thousand[9] - Fair value movement of warrants resulted in a gain of €4,975 thousand[9] Assets and Liabilities (Q1 2023) - Property, plant, and equipment totaled €23,736 thousand[10] - Total non-current assets amounted to €29,021 thousand[10] - Total current assets reached €38,349 thousand[10] - Total liabilities amounted to €37,355 thousand[10] - Cash and cash equivalents stood at €5,759 thousand[10] Key Developments and Projects - Awarded €3.6 million in grant funding for a 1 MW green hydrogen mobility project with GALP[8] - Awarded €3.3 million grant from H2 Pioneros Program for 2.4 MW green hydrogen project in Spain[64] - Signed Terms of Acceptance for €10 million grant from PRR Component 14[34] - The company has a project pipeline of approximately 500 MW, estimating revenues of approximately €550 million[80]

Market Dynamics - The hydrogen production industry is an emerging market, and widespread market acceptance of green hydrogen production is uncertain[40]. - The company faces significant competition and has a limited operating history, which may adversely affect its financial condition and operating results[19][36]. - The company faces significant competition from larger multinational companies with greater resources, which could impact its market position[48]. - The alternative energy industry is highly competitive, and the company must keep pace with technology developments to maintain market share[129]. - The company is expanding its business in Europe, the Middle East, North Africa (MENA), and the United States[191]. Financial Risks - The company may need additional capital in the future to meet financial obligations and pursue business objectives, which may not be available on favorable terms[37]. - The company may experience substantial dilution if additional capital is raised through equity securities, which could affect existing shareholders[39]. - A small number of major customers account for the majority of Fusion Fuel's revenues, creating risks related to order fluctuations and payment delays[49]. - The company’s ability to generate revenues is substantially dependent on entering into hydrogen purchase and technology sale agreements with third parties[22]. - The company anticipates fluctuations in operating results and cash flow, which may lead to short-term liquidity issues[104]. Operational Challenges - The performance of HEVO based products may be affected by field conditions and other external factors, potentially harming business and financial results[22]. - The company may face supply chain competition, which could result in insufficient inventory and negatively affect operations[22]. - Manufacturing disruptions at the company's facilities or those of key partners could delay product production, harming reputation and revenue[66]. - The company is dependent on a limited number of suppliers for raw materials, and any disruptions could lead to increased costs and delays in product delivery[68]. - The company relies heavily on information technology networks and systems to manage various business processes, including communication and compliance with regulatory requirements[125]. Regulatory and Compliance Issues - The company is subject to extensive government regulations that can negatively impact its financial condition and operational results[133]. - The company faces risks related to compliance with complex U.S. and foreign laws, which could result in fines and penalties[134]. - Compliance with environmental laws and regulations could impose substantial costs and cause delays in delivery and installation of units[80]. - The company faces uncertainty regarding compliance with evolving environmental laws and regulations, which could materially affect its business and financial condition[81]. - The company may need to seek amendments to existing regulations or develop new regulations to operate its HEVO product in certain jurisdictions, which could expose it to litigation[84]. Growth Strategy - The company’s growth strategy includes operating in more territories, indicating an aggressive market expansion plan[23]. - The company plans to develop a $180 million, 75 MW solar-to-green hydrogen facility in Bakersfield, California, targeting commissioning in 2027[201]. - The company is focused on research and development, commercialization of new products, and expanding sales and marketing capabilities[6]. - The company has identified material weaknesses in its internal control over financial reporting, which could hinder accurate financial reporting and investor confidence[95]. - The company is in the process of establishing its own assembly lines and production plants over the next 3 to 5 years, which is critical for scaling its business[52]. Project and Technology Development - Fusion Fuel's sales cycle typically ranges from 12 to 24 months, with installation times between 3 to 9 months or more depending on project requirements[42][43]. - The HEVO-Solar system is designed to produce green hydrogen with a reduced size, allowing for thermal and electrical integration directly in the cell[190]. - The technology developed by Fusion Fuel Portugal has been validated by an independent study from Lisbon's Instituto Superior de Técnico, highlighting its compact and integrated electrolyzer system[190]. - The company provides performance warranties for its Hydrogen Generators covering efficiency and output for the first five years, with potential costs for warranty claims based on actual performance versus expected performance[61]. - The company faces risks related to construction, utility interconnection, and potential cost overruns, which could impact financial results due to the installment payment structure for unit sales[62]. Market Expansion and Funding - The Portuguese government allocated €40 million in direct grants for the POSEUR program, with Fusion Fuel approved for €4.3 million for the HEVO-Sul project[199]. - The HEVO-Industria project in Sines received a €10 million grant, marking the largest single-project grant award under the Portuguese Recovery and Resilience Plan[200]. - A joint agreement with Duferco Energia SpA aims to develop a 1.25 MW pilot project in Sicily, producing an estimated 46 tonnes of green hydrogen annually, with development planned for 2024[206]. - A technology sale agreement with KEME Energy for a 1.2 MW green hydrogen facility received €1.4 million in funding from Portugal's POSEUR programme[207]. - The company purchased a 14,000m² factory in Benavente, Portugal for €5.0 million, with renovations completed in Q1 2022[195]. Shareholder and Market Considerations - The issuance of additional Class A Ordinary Shares or other equity securities may dilute existing shareholders' ownership interests and depress market prices[165]. - If Parent is classified as a passive foreign investment company (PFIC), U.S. investors may face adverse federal income tax consequences[160]. - The market price of Class A Ordinary Shares may decline if significant resales occur, leading to increased volatility[161]. - The trading price of Class A Ordinary Shares may be volatile due to external factors such as public health emergencies and political turmoil[168]. - The rights of shareholders under Irish law may not be as clearly established as in some jurisdictions in the United States, potentially affecting shareholder actions[158].

Fusion Fuel Green PLC (NASDAQ:HTOO) Q4 2022 Earnings Conference Call February 28, 2023 10:00 AM ET Company Participants Ben Schwarz – Head-Investor Relations Frederico Chaves – Co-Head, Board and Executive Committee Member and Chief Financial Officer Zachary Steele – Co-Head, Executive Committee Member and Co-President Conference Call Participants Ben Schwarz Hello, everyone. And welcome to Fusion Fuel Green’s Fourth Quarter 2022 Investor Update. My name is Ben Schwarz and I’m Head of Investor Relations at ...

ALL RIGHTS BELONG TO FUSION-FUEL The forward-looking statements and projections herein should not be regarded as a representation or prediction that the Company will achieve or is likely to achieve any particular results. This Presentation does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation to purchase any equity, debt or other financial instruments of Fusion Fuel. Use of Social Media as a Source of Material News The Company uses, and will continue to use, its Linked ...

[FORM 6-K Filing Information](index=1&type=section&id=FORM%206-K%20Filing%20Information) Fusion Fuel Green PLC filed a Form 6-K report as a foreign private issuer, with registration number 005-91913, opting to file annual reports on Form 20-F [General Information](index=1&type=section&id=General%20Information) Fusion Fuel Green PLC, as a foreign private issuer, submitted a Form 6-K report and opts to file annual reports on Form 20-F - Fusion Fuel Green PLC, a foreign private issuer, submitted a Form 6-K report and opts to file annual reports on Form 20-F[1](index=1&type=chunk)[2](index=2&type=chunk)[3](index=3&type=chunk) [Application of Home Country Practice Rules](index=2&type=section&id=Home%20Country%20Practice%20Rules) The company, as a foreign private issuer, opts to follow Irish corporate governance practices instead of Nasdaq listing rules for shareholder approval of certain securities issuances - The company opts to follow Irish corporate governance practices instead of Nasdaq Listing Rules 5635(c) and 5635(d)(2) regarding shareholder approval for certain securities issuances[6](index=6&type=chunk)[7](index=7&type=chunk) - Irish law and generally accepted business practices do not require shareholder approval for such transactions, thus the company does not require shareholder approval[7](index=7&type=chunk) [Business and Operational Updates](index=2&type=section&id=Business%20and%20Operational%20Updates) The company actively expands strategic collaborations, advances production and technology, secures project funding, and enters new markets in the green hydrogen sector [Strategic Partnerships and Collaborations](index=2&type=section&id=Strategic%20Partnerships%20and%20Collaborations) The company is actively expanding strategic collaborations in green hydrogen, including a MoU with Toshiba ESS, successful commissioning of H2Évora with Ballard, and a commercial agreement with Duferco Energia SpA - A Memorandum of Understanding was signed with Toshiba ESS to evaluate the use of Toshiba ESS's Membrane Electrode Assemblies (MEAs) in HEVO micro-electrolyzers and explore sales of the company's PEM electrolyzers in Australia and other countries[8](index=8&type=chunk) - The H2Évora plant, Portugal's first solar-to-green hydrogen facility and fully integrated hydrogen generation demonstration project, was successfully commissioned with Ballard Power Systems[9](index=9&type=chunk) - A commercial agreement was reached with Duferco Energia SpA to jointly develop green hydrogen ecosystems in Italy, with the first project being a 1.25 MW green hydrogen pilot project in Giammoro, Sicily[9](index=9&type=chunk) [Production and Technology Development](index=2&type=section&id=Production%20and%20Technology%20Development) The company completed its HEVO production line in Portugal, exceeding HEVO-Solar system performance, and launched the HEVO-Chain system for the centralized electrolyzer market - In June 2022, the company completed the installation of its HEVO production line at the Benavente factory in Portugal, with electrolyzer production capacity expected to reach **100 MW in 2023** and approximately **500 MW in 2025**[8](index=8&type=chunk) - A performance audit by TUV SUD showed that the overall performance of the HEVO-Solar technology system (solar-to-hydrogen) exceeded product datasheet specifications by **over 15%**[8](index=8&type=chunk) - On November 23, 2022, the company launched the HEVO-Chain system, entering the centralized electrolyzer market, which consists of 16 interconnected HEVO micro-electrolyzers with an 11.2 kW electrolysis capacity, expected for commercial use in the second half of 2024[13](index=13&type=chunk) [Project Developments and Grant Funding](index=3&type=section&id=Project%20Developments%20and%20Grant%20Funding) The company secured significant grants and contracts for green hydrogen projects in Portugal and Spain, including a €36 million grant for the Sines Green Hydrogen Valley Alliance Project Developments and Grant Funding | Project Name | Location | Grant/Contract Amount | Description | | :--- | :--- | :--- | :--- | | Sines Green Hydrogen Valley Alliance (H2 HEVO-SINES) | Sines, Portugal | €36 million (of which €22.5 million allocated to H2 HEVO-SINES project, €3.5 million for R&D) | 75 MW electrolysis capacity, Final Investment Decision (FID) expected in 2024 | | 6.6MW HEVO-Industria | Sines, Portugal | €10 million | €25 million total investment, 300 HEVO-Solar units, FID expected in H1 2023 | | Gedisol Energiá Project | Andalucía, Spain | €5 million contract | 144 HEVO-Solar units, 3.2 MW, expected annual production of 200 tons of green hydrogen | | KEME Energy Project | Sines, Portugal | €2 million contract | 62 HEVO-Solar units, 1.2 MW | | H2 Pioneros Project (four projects) | Spain | Up to €12.9 million grant | Expected to generate €31.7 million in revenue, of which €16.4 million from company technology sales, totaling 423 HEVO-Solar units (10.5 MW electrolysis capacity) | [Market Entry and Expansion](index=4&type=section&id=Market%20Entry%20and%20Expansion) The company entered the US market through a joint venture with Electus Energy to develop a 75 MW green hydrogen project in California, focusing on mobility and logistics - An exclusive joint venture agreement was signed with Electus Energy to develop a **75 MW, $180 million** green hydrogen project in Bakersfield, California, with an annual production of up to **9,300 tons of green hydrogen**, FID expected in early 2024, and commissioning in H1 2025[13](index=13&type=chunk) - The Bakersfield project is a cornerstone of the company's US commercial strategy, focusing on opportunities in hydrogen mobility and logistics[13](index=13&type=chunk) [Capital Raising Activities](index=3&type=section&id=Capital%20Raising%20Activities) The company entered an At-the-Market (ATM) sales agreement to potentially issue up to $30 million in Class A ordinary shares, having already raised over $3.6 million - The company entered an At-the-Market (ATM) issuance sales agreement on June 6, 2022, with B. Riley Securities, Inc. and others, potentially allowing for the issuance of up to **$30 million** in Class A ordinary shares[9](index=9&type=chunk) Capital Raising Activities | Period | Shares Sold | Net Proceeds | | :--- | :--- | :--- | | July 11 to November 14, 2022 | 681,926 | $3,685,792 | [Financial Information (Unaudited Interim Condensed Consolidated Financial Statements)](index=4&type=section&id=Financial%20Information%20(Unaudited%20Interim%20Condensed%20Consolidated%20Financial%20Statements)) The company's unaudited interim condensed consolidated financial statements show a decrease in total assets and net equity, alongside a significant increase in comprehensive loss for the nine months ended September 30, 2022 [Condensed Consolidated Statements of Financial Position (Balance Sheet)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Financial%20Position%20(Balance%20Sheet)) As of September 30, 2022, total assets decreased to €60.08 million, primarily due to a significant reduction in current assets, while total liabilities slightly decreased Condensed Consolidated Statements of Financial Position (Unaudited) | Indicator | September 30, 2022 (€'000) | December 31, 2021 (€'000) | Change (€'000) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Non-current assets | 33,548 | 21,958 | 11,590 | 52.78% | | Current assets | 26,536 | 47,291 | (20,755) | -43.89% | | **Total Assets** | **60,084** | **69,249** | **(9,165)** | **-13.24%** | | Non-current liabilities | 904 | 411 | 493 | 119.95% | | Current liabilities | 15,419 | 19,326 | (3,907) | -20.22% | | **Total Liabilities** | **16,323** | **19,737** | **(3,414)** | **-17.30%** | | **Net Equity** | **43,761** | **49,512** | **(5,751)** | **-11.61%** | [Condensed Consolidated Statements of Profit or Loss and Other Comprehensive Income (Income Statement)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income%20(Income%20Statement)) For the nine months ended September 30, 2022, the company reported a total comprehensive loss of €10.56 million, significantly wider than the prior year, driven by increased administrative and equity-settled share-based payment expenses Condensed Consolidated Statements of Profit or Loss and Other Comprehensive Income (Unaudited) | Indicator | Nine Months Ended September 30, 2022 (€'000) | Nine Months Ended September 30, 2021 (€'000) | Change (€'000) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Revenue | — | — | — | — | | Cost of sales | (1,172) | — | (1,172) | N/A | | Gross loss | (1,172) | — | (1,172) | N/A | | Administrative expenses | (11,572) | (4,920) | (6,652) | 135.20% | | Equity-settled share-based payment expenses | (2,633) | (14,688) | 12,055 | -82.07% | | Operating loss | (16,086) | (19,608) | 3,522 | -17.96% | | Net finance income | 6,084 | 18,026 | (11,942) | -66.25% | | Share of loss from equity-accounted investments | (522) | — | (522) | N/A | | Loss before tax | (10,524) | (1,582) | (8,942) | 565.23% | | Income tax expense | (34) | — | (34) | N/A | | **Total Comprehensive Loss** | **(10,558)** | **(1,582)** | **(8,976)** | **567.38%** | | Basic and diluted loss per share | (0.80) | (0.12) | (0.68) | 566.67% | [Condensed Consolidated Statement of Changes in Equity](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) As of September 30, 2022, total equity decreased to €43.76 million, primarily due to a €10.56 million comprehensive loss for the period, partially offset by increases in share premium and share-based payment reserves Condensed Consolidated Statement of Changes in Equity (Unaudited) | Indicator | September 30, 2022 (€'000) | December 31, 2021 (€'000) | Change (€'000) | | :--- | :--- | :--- | :--- | | Share capital | 2 | 2 | 0 | | Share premium | 215,651 | 213,477 | 2,174 | | Share-based payment reserve | 3,096 | 463 | 2,633 | | Retained earnings | (174,988) | (164,430) | (10,558) | | **Total Equity** | **43,761** | **49,512** | **(5,751)** | - The total comprehensive loss for the period was **€10,558 thousand**, leading to a reduction in retained earnings[17](index=17&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended September 30, 2022, the company experienced a net cash outflow from operating activities of €23.36 million, with a net cash inflow from investing activities of €17.28 million, resulting in a lower cash balance Condensed Consolidated Statements of Cash Flows (Unaudited) | Cash Flow Activity | Nine Months Ended September 30, 2022 (€'000) | Nine Months Ended September 30, 2021 (€'000) | Change (€'000) | | :--- | :--- | :--- | :--- | | Net cash flow from operating activities | (23,360) | (15,624) | (7,736) | | Net cash flow from investing activities | 17,280 | (43,966) | 61,246 | | Net cash flow from financing activities | 1,872 | 9,823 | (7,951) | | Net (decrease)/increase in cash and cash equivalents | (4,208) | (49,767) | 45,559 | | Cash and cash equivalents at end of period | 3,610 | 7,875 | (4,265) | - Cash flow from investing activities shifted from a net outflow of **€43,966 thousand in 2021** to a net inflow of **€17,280 thousand in 2022**, primarily due to the realization of financial assets[18](index=18&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes provide details on the company's mission, accounting policies, significant estimates, and going concern considerations, highlighting its focus on green hydrogen production and liquidity management [Summary of Significant Accounting Policies](index=9&type=section&id=Summary%20of%20Significant%20Accounting%20Policies) The company, focused on zero-carbon green hydrogen production, prepares financial statements under IAS 34 and IFRS in Euros, using significant management estimates and addressing going concern uncertainties - The Group's mission is to produce zero-carbon hydrogen to enable a sustainable and affordable clean energy future[20](index=20&type=chunk) - As of September 30, 2022, the Group's cash and cash equivalents were **€3.6 million**, with accumulated losses of **€174.99 million**, raising significant doubt about its ability to continue as a going concern[28](index=28&type=chunk) - Management expects that anticipated grants, a sale and leaseback of production facilities (estimated net inflow of **€7.5 million to €8.5 million**), and a working capital credit line (approximately **€2.5 million**) will provide sufficient liquidity for at least one year of operations[29](index=29&type=chunk) [Business Activity and Mission](index=9&type=section&id=Business%20Activity%20and%20Mission) Fusion Fuel Green PLC, incorporated in Ireland, is dedicated to producing zero-carbon green hydrogen through internal components and R&D for sustainable clean energy - Fusion Fuel Green PLC, incorporated in Ireland on April 3, 2020, is dedicated to producing zero-carbon green hydrogen, achieving sustainable clean energy through internal components and R&D experience[19](index=19&type=chunk)[20](index=20&type=chunk) [Basis of Presentation and Estimates](index=9&type=section&id=Basis%20of%20Presentation%20and%20Estimates) Unaudited condensed consolidated financial statements are prepared under IAS 34 and IFRS in Euros, involving significant management estimates for derivatives, share-based payments, and intangible assets - The unaudited condensed consolidated financial statements are prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" (IAS 34) and comply with International Financial Reporting Standards (IFRS), with the Euro as the functional and presentation currency[22](index=22&type=chunk) - The preparation of financial statements involves significant management estimates and judgments in areas such as derivative valuation, share-based payment award valuation, and intangible asset valuation[24](index=24&type=chunk) [Going Concern](index=10&type=section&id=Going%20Concern) The company's cash position and accumulated losses raise significant doubt about its ability to continue as a going concern, but management plans to secure liquidity through grants, asset sales, and credit lines - As of September 30, 2022, the Group's cash and cash equivalents were **€3.6 million**, and accumulated losses were **€174.99 million**, which constitute a material uncertainty regarding the Group's ability to continue as a going concern[28](index=28&type=chunk) - Management plans to mitigate going concern doubts through anticipated grants, a sale and leaseback of production facilities (expected net inflow of **€7.5 million to €8.5 million**), and a working capital credit line (approximately **€2.5 million**), and is also in financing discussions with third parties[29](index=29&type=chunk)[30](index=30&type=chunk) [Share-based Payments](index=11&type=section&id=Share-based%20Payments) The company granted RSUs, share options, and incentive shares under its 2021 equity incentive plan, resulting in €2.63 million in expenses for the nine months ended September 30, 2022 Share-based Payment Expenses (Thousand Euros) | Item | 2022 | 2021 | | :--- | :--- | :--- | | 2020 Earn-out Payment | — | 4,730 | | RSUs | 412 | — | | Incentive Shares | — | 166 | | Options | 2,221 | — | | **Total Share-based Payment Expenses** | **2,633** | **4,896** | - As of September 30, 2022, unamortized RSU compensation expense was **€0.47 million**, expected to be recognized over the next **1.9 years**; unamortized employee and director share option compensation expense was **€9.01 million**, expected to be recognized over the next **2.92 years**[35](index=35&type=chunk)[40](index=40&type=chunk) [Taxation](index=13&type=section&id=Taxation) The company incurred tax losses for the nine-month periods in 2022 and 2021, with €3.6 million in unrecognised deferred tax assets due to uncertainty of future taxable profits - The company generated no revenue and recorded a loss before tax for the nine-month periods in both 2022 and 2021[45](index=45&type=chunk) Unrecognized Deferred Tax Assets (Thousand Euros) | Date | Amount | | :--- | :--- | | September 30, 2022 | 3,600 | | December 31, 2021 | 1,700 | - Unrecognized deferred tax assets primarily result from tax losses incurred, but these assets have not been recognized due to the uncertainty of future taxable profits[47](index=47&type=chunk) [Intangible Assets](index=14&type=section&id=Intangible%20Assets) As of September 30, 2022, net book value of intangible assets increased to €5.28 million, primarily from product development projects and intellectual property, with amortization commencing for some costs Intangible Assets Net Book Value (Thousand Euros) | Item | September 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Product development in progress | 3,322 | 1,918 | | Intellectual property and patent registrations | 1,911 | 1,911 | | Software | 48 | 18 | | **Total** | **5,281** | **3,847** | - For the nine months ended September 30, 2022, additions to intangible assets amounted to **€1.445 million**, primarily for HEVO technology development[48](index=48&type=chunk) - Amortization of certain product development costs commenced in the fourth quarter of 2022, with an amortization period of **3 to 5 years**[49](index=49&type=chunk) [Property, Plant and Equipment](index=15&type=section&id=Property,%20Plant%20and%20Equipment) Net book value of property, plant, and equipment significantly increased to €28.27 million as of September 30, 2022, driven by construction in progress for hydrogen plants and production facilities Property, Plant and Equipment Net Book Value (Thousand Euros) | Item | September 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Construction in progress | 26,261 | 17,161 | | Office and other equipment | 645 | 157 | | Right-of-use assets | 1,361 | 793 | | **Total** | **28,267** | **18,111** | - Construction in progress costs are primarily related to the Évora hydrogen plant, HEVO-Sul project, and Benavente production facility construction[51](index=51&type=chunk) - The company received an **€0.8 million** government grant related to the Benavente production facility, which has been offset against the asset's carrying value using the net presentation method under IAS 20[52](index=52&type=chunk) [Financial Assets at Fair Value Through Profit or Loss](index=16&type=section&id=Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) As of September 30, 2022, the company disposed of all financial assets at fair value through profit or loss, resulting in a zero balance compared to €27.45 million at year-end 2021 Financial Assets at Fair Value Through Profit or Loss (Thousand Euros) | Date | Amount | | :--- | :--- | | December 31, 2021 | 27,453 | | September 30, 2022 | — | - The company disposed of all such financial assets during the nine months ended September 30, 2022, resulting in a zero balance at period-end[53](index=53&type=chunk) [Prepayments and Other Receivables](index=16&type=section&id=Prepayments%20and%20Other%20Receivables) Total prepayments and other receivables increased to €10.87 million as of September 30, 2022, primarily due to higher VAT recoverable and a new grant receivable Prepayments and Other Receivables (Thousand Euros) | Item | September 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Prepayments | 2,808 | 4,575 | | VAT recoverable | 6,574 | 3,564 | | Grant receivable | 803 | — | | Other receivables | 688 | 333 | | **Total** | **10,873** | **8,472** | - VAT recoverable increased from **€3.564 million at year-end 2021** to **€6.574 million as of September 30, 2022**[54](index=54&type=chunk) [Trade and Other Payables](index=16&type=section&id=Trade%20and%20Other%20Payables) Total trade and other payables increased to €3.42 million as of September 30, 2022, mainly driven by an increase in trade payables Trade and Other Payables (Thousand Euros) | Item | September 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Trade payables | 1,865 | 1,029 | | Amounts due to related parties | 752 | 801 | | Lease liabilities – current | 470 | 389 | | Payroll taxes | 295 | 149 | | Other | 34 | 509 | | **Total** | **3,416** | **2,877** | - Trade payables increased from **€1.029 million at year-end 2021** to **€1.865 million as of September 30, 2022**[55](index=55&type=chunk) [Inventory / Provisions for Onerous Contracts](index=17&type=section&id=Inventory%20/%20Provisions%20for%20Onerous%20Contracts) The company recognized a €1.17 million impairment for inventory and a €0.71 million provision for onerous contracts related to the Exolum project, totaling €1.88 million in expenses - The Exolum project is expected to incur a loss, and the company has recognized an impairment of **€1.17 million** for related inventory, which is included in the cost of sales[57](index=57&type=chunk) - The company recognized a provision for onerous contracts of **€0.71 million**, which excludes amounts related to general equipment warranties or performance guarantees[61](index=61&type=chunk) - As of September 30, 2022, the Exolum project recorded total expenses of **€1.88 million**, reflecting the company's best estimate of the total expected contract loss[61](index=61&type=chunk) [Warrants](index=17&type=section&id=Warrants) Warrants are classified as derivative liabilities and measured at fair value through profit or loss due to fixed USD exercise prices and the company's Euro functional currency, with 8,869,633 warrants outstanding at €9.74 million fair value - Warrants are classified as derivative liabilities and measured at fair value through profit or loss due to their fixed exercise price in USD and the company's Euro functional currency[62](index=62&type=chunk) Warrants Quantity and Fair Value (Thousand Euros) | Date | Warrants Quantity | Fair Value (€'000) | | :--- | :--- | :--- | | December 31, 2021 | 8,869,633 | 15,271 | | September 30, 2022 | 8,869,633 | 9,736 | - The fair value of tradable warrants is determined based on Nasdaq market prices (ticker HTOOW)[64](index=64&type=chunk) [Financial Instruments and Risk Management](index=18&type=section&id=Financial%20Instruments%20and%20Risk%20Management) The company manages credit, liquidity, and market risks through a non-speculative framework, using a three-level fair value hierarchy for financial instruments and addressing foreign exchange exposure - The Group faces credit risk, liquidity risk, and market risk, and has a risk management framework in place to manage these risks in a non-speculative manner[67](index=67&type=chunk) - The fair value of financial instruments is determined using a three-level hierarchy, with tradable warrants using Level 1 inputs (quoted prices in active markets)[69](index=69&type=chunk)[71](index=71&type=chunk) - The company's functional currency is the Euro, and foreign exchange risk primarily arises from non-Euro denominated income or expenses; as of September 30, 2022, the company held cash balances of approximately **$2.1 million** and **€1.1 million**[77](index=77&type=chunk) [Loss per Ordinary Share](index=20&type=section&id=Loss%20per%20Ordinary%20Share) For the nine months ended September 30, 2022 and 2021, basic and diluted loss per ordinary share remained at €0.80 and €0.12 respectively, as potential dilutive securities were anti-dilutive due to the company's loss position Loss per Ordinary Share | Indicator | 2022 | 2021 | | :--- | :--- | :--- | | Basic loss per share | (0.80) | (0.12) | | Diluted loss per share | (0.80) | (0.12) | | Weighted average number of ordinary shares for loss per share (basic) | 13,189,385 | 13,123,723 | - Due to the company's loss position, potential dilutive securities such as warrants, RSUs, incentive shares, and share options are considered anti-dilutive, resulting in diluted loss per share being the same as basic loss per share[81](index=81&type=chunk) [Commitments and Contingencies](index=21&type=section&id=Commitments%20and%20Contingencies) As of September 30, 2022, the company has minimum commitments of approximately €2.52 million under an agreement with MagP and an undrawn participation loan of €0.8 million to Fusion Fuel Spain S.L - As of September 30, 2022, the company has minimum commitments of approximately **€2.52 million** under an agreement with related party MagP until the contract expires on March 31, 2023[82](index=82&type=chunk) - Of the **€2 million** participation loan provided by the company to Fusion Fuel Spain S.L., **€0.5 million** (including expenses paid on behalf) had been drawn as of September 30, 2022, with **€0.8 million** remaining undrawn[83](index=83&type=chunk) [Subsequent Events](index=21&type=section&id=Subsequent%20Events) No significant subsequent events requiring disclosure or amendment to the unaudited condensed consolidated financial statements have occurred since the balance sheet date - No significant events requiring disclosure or amendment to the unaudited condensed consolidated financial statements have occurred since the balance sheet date[84](index=84&type=chunk) [Group Companies](index=21&type=section&id=Group%20Companies) The company's group includes subsidiaries in Portugal, the US, Spain, and Australia, primarily engaged in hydrogen production and operations, with several new subsidiaries established in 2022 Group Companies List | Entity Name | Country of Incorporation | Principal Activity | Group Shareholding as of December 31, 2021 | | :--- | :--- | :--- | :--- | | Fusion Fuel Portugal, S.A. | Portugal | Operating company | 100% | | Fuel Cell Évora, Unipessoal LDA | Portugal | Hydrogen production | 100% | | Fuel Cell Évora I, Unipessoal LDA | Portugal | Hydrogen production | 100% | | Fusion Fuel USA, Inc. | United States | No activity | 100% | | Fusion Fuel Spain, S.L. | Spain | Hydrogen production | 50% | | Fusion Fuel Australia, PTY Ltd | Australia | Hydrogen production | 100% | | Fusion Fuel Australia – Pilot PTY Ltd | Australia | Hydrogen production | 100% | | Hevo Sines, Unipessoal LDA (1) | Portugal | Hydrogen production | N/A | | Hevo Sines II, Unipessoal LDA (2) | Portugal | Hydrogen production | N/A | | Hevo Sines III, Unipessoal LDA (3) | Portugal | Hydrogen production | N/A | - Hevo Sines, Unipessoal LDA, Hevo Sines II, Unipessoal LDA, and Hevo Sines III, Unipessoal LDA are newly established subsidiaries in 2022[85](index=85&type=chunk) [Approval of Financial Statements](index=21&type=section&id=Approval%20of%20Financial%20Statements) The unaudited condensed consolidated financial statements were approved by the Board of Directors on December 13, 2022 - The unaudited condensed consolidated financial statements were approved by the Board of Directors on December 13, 2022[86](index=86&type=chunk) [Management's Discussion and Analysis (MD&A)](index=22&type=section&id=Management's%20Discussion%20and%20Analysis%20(MD%26A)) Fusion Fuel, a holding company, focuses on producing zero-carbon green hydrogen, with a business plan encompassing technology sales, hydrogen plant development, and green hydrogen sales, anticipating significant future capital and operating expenditures [Overview](index=22&type=section&id=Overview) Fusion Fuel, as a holding company, is committed to producing zero-carbon green hydrogen through internal production and collaboration, with a business plan involving technology sales, plant operations, and green hydrogen sales - Fusion Fuel's mission is to produce zero-carbon green hydrogen, achieved through internal production and collaboration with MagP Inovação, S.A[89](index=89&type=chunk) - The business plan includes selling technology to third parties, developing and operating hydrogen plants, and selling green hydrogen[90](index=90&type=chunk) - The company anticipates significant increases in future capital and operating expenditures to support internal manufacturing facility construction, commercialization of HEVO-Solar technology, R&D investments, market expansion, and public company operations[91](index=91&type=chunk)[92](index=92&type=chunk) [Operating Results](index=22&type=section&id=Operating%20Results) For the nine months ended September 30, 2022, the company reported a total comprehensive loss of approximately €10.6 million, primarily influenced by administrative expenses, share-based payments, and Exolum project costs - For the nine months ended September 30, 2022, the company's total comprehensive loss was approximately **€10.6 million**, primarily driven by administrative expenses (**€11.57 million**), equity-settled share-based payment expenses (**€2.63 million**), and Exolum project expenses (**€1.9 million**)[94](index=94&type=chunk) - The Exolum project is expected to result in a loss of **€1.88 million to €2.58 million**, with the company having recognized a **€1.2 million** inventory impairment and a **€0.7 million** provision for onerous contracts[93](index=93&type=chunk) Research and Development Expenses (Thousand Euros) | Period | Amount | | :--- | :--- | | Nine Months Ended September 30, 2022 | 3,040 | | Nine Months Ended September 30, 2021 | 2,290 | [Key Factors Affecting Operating Results](index=24&type=section&id=Key%20Factors%20Affecting%20Operating%20Results) Operating results are influenced by public company costs, the launch of HEVO-Solar, construction of green hydrogen plants, significant grant funding, and market expansion into the US with the HEVO-Chain system - As an SEC-registered public company, the company incurs additional annual expenses due to regulatory requirements and customary practices, including directors' and officers' liability insurance, director fees, and additional accounting, legal, and administrative resources[101](index=101&type=chunk) - The H2Évora plant was officially commissioned in the fourth quarter of 2022, marking the Iberian Peninsula's first integrated green hydrogen production and utilization facility[102](index=102&type=chunk)[103](index=103&type=chunk) - The company secured multiple green hydrogen project grants in Portugal and Spain, including **€36 million** for the Sines Green Hydrogen Valley Alliance and **€12.9 million** for H2 Pioneros, and signed technology sales and collaboration agreements with Gedisol Energiá, KEME Energy, and Duferco Energia SpA[109](index=109&type=chunk)[110](index=110&type=chunk)[112](index=112&type=chunk)[113](index=113&type=chunk)[114](index=114&type=chunk) - The company launched the HEVO-Chain system, entering the centralized electrolyzer market, and partnered with Electus Energy to develop a **75 MW** green hydrogen project in Bakersfield, California, as a cornerstone of its US commercial strategy[115](index=115&type=chunk)[116](index=116&type=chunk) [Critical Accounting Policies and Estimates](index=27&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) The company relies on critical accounting policies and estimates for valuing derivative liabilities (warrants), share-based payment arrangements, and intangible assets (development expenditures) - Warrants are classified as derivative liabilities and measured at fair value through profit or loss due to their fixed exercise price in USD and the company's Euro functional currency[123](index=123&type=chunk) - The grant-date fair value of share-based payment arrangements is recognized as an expense over the vesting period, adjusted for expected satisfaction of service and non-market performance conditions[125](index=125&type=chunk) - Development expenditures are capitalized only when criteria such as reliable measurement, technical and commercial feasibility, probable future economic benefits, and sufficient resources to complete and use or sell the asset are met, and are amortized over **3 to 5 years** once in use[127](index=127&type=chunk) [Liquidity and Capital Resources](index=28&type=section&id=Liquidity%20and%20Capital%20Resources) As of September 30, 2022, the company had a cash position of approximately €3.61 million and no external debt, with management planning to secure liquidity through grants, asset sales, and an ATM facility to address going concern doubts Liquidity Overview (Thousand Euros) | Indicator | September 30, 2022 | | :--- | :--- | | Cash position | 3,610 | | Other assets | 56,470 | | Liabilities | 16,320 | | External debt | 0 | - The company has secured nearly **€10 million** in grants for the Benavente industrial production facility, as well as **€10 million** and **€36 million** in grants under the Portuguese Recovery and Resilience Plan, which will be provided on a reimbursement basis[134](index=134&type=chunk)[136](index=136&type=chunk)[137](index=137&type=chunk)[138](index=138&type=chunk) - Through the ATM agreement, the company sold **681,926 Class A ordinary shares** between July 11 and November 14, 2022, generating net proceeds of **$3,685,792**[139](index=139&type=chunk) - Management believes that existing working capital, secured grants, and anticipated project revenues will provide sufficient liquidity for at least one year of operations, but the company still needs to seek additional financing to support operations in 2023 and beyond[140](index=140&type=chunk)[141](index=141&type=chunk) [Research and Development, Patents and Licenses](index=30&type=section&id=Research%20and%20Development,%20Patents%20and%20Licenses) Continuous innovation is crucial in the company's industry, with the R&D team designing next-generation HEVO-Solar products to enhance efficiency and reduce production costs - The company's R&D team has designed the next generation of HEVO-Solar products, aiming to improve efficiency and reduce production costs[142](index=142&type=chunk) - Continuous research and development is a core part of Fusion Fuel's strategy[142](index=142&type=chunk) [Trend Information](index=30&type=section&id=Trend%20Information) The company has identified no significant trends, uncertainties, demands, commitments, or events since the start of fiscal year 2021 that could materially affect its financial performance, liquidity, or capital resources, beyond those in the "Risk Factors" section - Except for the risks described in the "Risk Factors" section of the annual report, the company has not identified any trends, uncertainties, demands, commitments, or events since the beginning of fiscal year 2021 that are reasonably likely to have a material effect on net income, operating income, profitability, liquidity, or capital resources[143](index=143&type=chunk) [Off-Balance Sheet Arrangements](index=30&type=section&id=Off-Balance%20Sheet%20Arrangements) As of September 30, 2022, the company had no off-balance sheet arrangements - As of September 30, 2022, the company had no off-balance sheet arrangements[144](index=144&type=chunk) [Contractual Obligations](index=30&type=section&id=Contractual%20Obligations) Fusion Fuel Portugal has a production agreement with MagP, guaranteeing the supply of CPV solar trackers for HEVO-Solars, with a minimum obligation of approximately €5.04 million - Fusion Fuel Portugal has a production agreement with MagP, where MagP guarantees the supply of all materials and installation services for the CPV solar trackers used in HEVO-Solars annually[145](index=145&type=chunk) - The company's minimum obligation under this contract is approximately **€5.04 million** for the payment of a minimum quantity of trackers[145](index=145&type=chunk) [Cautionary Note Regarding Forward-Looking Statements](index=31&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) This Form 6-K contains forward-looking statements subject to significant risks and uncertainties that could cause actual results to differ materially from expectations [Cautionary Note Regarding Forward-Looking Statements](index=31&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) This Form 6-K contains forward-looking statements that involve significant risks and uncertainties, covering company objectives, growth strategies, future performance, and market conditions - This Form 6-K contains forward-looking statements that involve significant risks and uncertainties, which could cause actual results to differ materially from expectations[149](index=149&type=chunk) - Forward-looking statements cover the company's objectives and growth strategies, future prospects, market acceptance, financial condition, economic and business conditions, government policies, and the impact of the COVID-19 pandemic[150](index=150&type=chunk)[152](index=152&type=chunk) - The company advises investors not to place undue reliance on forward-looking statements and commits to updating or revising them only as required by law[151](index=151&type=chunk) [Signatures](index=32&type=section&id=Signatures) The Form 6-K report for Fusion Fuel Green PLC was signed by Chief Financial Officer Frederico Figueira de Chaves on December 13, 2022 [Signatures](index=32&type=section&id=Signatures) The Form 6-K report for Fusion Fuel Green PLC was signed by Chief Financial Officer Frederico Figueira de Chaves on December 13, 2022 - The Form 6-K report for Fusion Fuel Green PLC was signed by Chief Financial Officer Frederico Figueira de Chaves on December 13, 2022[154](index=154&type=chunk)

Q3 2022 PRESENTATION ALL RIGHTS BELONG TO FUSION-FUEL ALL RIGHTS BELONG TO FUSION-FUEL — Disclaimer This presentation includes statements of future events, conditions, expectations, and projections of Fusion Fuel Green plc (the "Company"). Such statements are "forward looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. The Company's actual results may differ from its expectations, estimates and projections and, consequ ...

Financial Data and Key Metrics Changes - The company reported an operating loss of EUR5.5 million for Q3 2022, driven by EUR4.6 million in operating expenses, which increased due to headcount growth and related tax provisions [14][15] - The pretax loss for the quarter was EUR1.6 million, significantly impacted by a non-cash item of EUR3.8 million from the fair value movement of outstanding warrants [16] - Total assets amounted to EUR61 million, with liabilities at approximately EUR15.6 million [17] - The company holds EUR12 million in inventory and EUR3 million in advanced payments to suppliers, which positions it well to transition inventory into revenue [19][20] Business Line Data and Key Metrics Changes - The company has secured two tech sale contracts totaling EUR7 million in Portugal and Spain, and has commenced work on the Exolum tech sale project in Madrid [10][11] - The HEVO-Chain, a new centralized electrolyzer product, was introduced, expected to disrupt the PEM electrolyzer market [13][66] Market Data and Key Metrics Changes - The company is expanding into North America and Italy, with early-stage opportunities in California and Southern Italy, totaling over 75 megawatts of capacity for 2024 and 2025 production [35][55] - The Inflation Reduction Act in the U.S. is seen as a significant driver for growth, providing substantial financial incentives for hydrogen production [48][49] Company Strategy and Development Direction - The company aims to achieve over EUR40 million in gross revenue in 2023 through technology sales and selling existing projects to financial investors [30] - The focus is on derisking the pipeline by ensuring projects have secured land, grants, and customers, with over 50% of the 2023 pipeline already in permitting [31][32] - The company plans to build a mobility backbone and decarbonize industrial applications, particularly in the Sines region of Portugal [43][44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the market opportunity for green hydrogen, citing strong financial incentives in both Europe and North America [81] - The company is optimistic about the timing of its entry into the North American market with the Bakersfield project, which is expected to benefit from the IRA [77][80] Other Important Information - The company has applied for nearly EUR80 million in grants, with EUR30 million already secured for one of its projects [26][27] - The company is actively managing its liquidity position through various tools, including VAT reimbursements and the sale leaseback of properties [21][25] Q&A Session Summary Question: What will be the main source of revenue by 2025 or 2030? - Management indicated that HEVO-Solar will take the bulk initially, but HEVO-Chain is expected to overtake it due to a larger addressable market [84] Question: Are there plans to introduce other products across the hydrogen production chain? - Currently, the focus remains on HEVO-centric products, with potential variations but no new product lines expected in the short term [85][86] Question: Is the H2 Pioneros Program all or nothing for the projects involved? - Each project stands on its own; if one moves forward, the others may not necessarily follow [89] Question: Will Bakersfield be a mix of HEVO-Chain and HEVO-Solar? - The company is evaluating both options and will provide updates as the project progresses [92] Question: How will the Bakersfield project be funded? - A 50-50 joint venture is planned, with discussions ongoing for financing from financial investors [96] Question: How much has been invested in the Benavente facility thus far? - Approximately EUR10.1 million has been invested, with expectations for an additional EUR15 million in 2023 [108] Question: What is the current production capacity and expectations for 2023? - The expected production capacity for 2023 is between 40 to 50 megawatts, contingent on project demand [114]

Financial Data and Key Metrics Changes - The company recorded an operating loss of EUR 4.8 million in Q2 2022, with EUR 4 million attributed to operating expenses, including EUR 1.9 million for personnel costs and EUR 1.3 million for non-recurring professional administration costs [19][20] - The company ended the quarter with EUR 10.6 million in cash and cash equivalents and EUR 63 million in total assets, including EUR 32 million related to property, plant, and equipment [22][23] Business Line Data and Key Metrics Changes - The company has made significant progress in the production of its HEVO electrolyzer, with the Benavente facility being the first to produce electrolyzers at mass scale in Iberia [15] - The company has secured over EUR 40 million in grants, enhancing the competitiveness of its projects [37] Market Data and Key Metrics Changes - The company is focusing on the mobility and industrial decarbonization sectors, with plans to build a mobility backbone throughout Portugal and expand into other strategic markets [34][38] - The company is seeing substantial interest in its technology across the Iberian Peninsula, Italy, Greece, and North America, particularly following the Inflation Reduction Act [41] Company Strategy and Development Direction - The company aims to develop a decentralized and scalable approach to green hydrogen production, allowing customers to start small and grow with market demand [39] - The company is actively pursuing strategic partnerships to enhance its growth trajectory and leverage financial or operational scale [65] Management's Comments on Operating Environment and Future Outlook - Management highlighted the energy crisis in Europe and the Inflation Reduction Act in the U.S. as significant opportunities for the company [4] - The management expressed confidence in the company's unique HEVO-Solar solution and its potential to achieve a competitive advantage in the green hydrogen market [12] Other Important Information - The company filed two additional patents to maintain its technological edge in the market [16] - The company is in the process of securing additional grants and has a robust pipeline of projects under development [28] Q&A Session Summary Question: Can you talk about the approval process for the C-5 grant? - The C-5 grant involves multiple companies, and final approval depends on the completion of discussions with the government [57] Question: What milestones need to be met before invoicing the remaining EUR 3.5 million for Benavente? - The remaining amount is based on a proportion of spent, and reimbursement requests will be submitted as production lines are delivered [58] Question: How quickly can production ramp up if demand increases significantly? - It would take around a year to develop additional production lines, but new solutions may allow for faster scaling [60][61] Question: What does EPC turnkey mean in the context of technology sales? - EPC turnkey refers to technology sales that include support for development, permitting, and construction of the entire project [62] Question: How does the pricing work for HEVO-Solar units? - Pricing varies based on additional equipment required for specific projects, which can drive up overall costs [63] Question: What is the company's strategy regarding partnerships? - The company is in discussions with potential strategic partners to enhance growth and leverage financial resources [65] Question: How does the company plan to finance its projects? - The company is exploring various financing options, including debt financing against grants and receivables [66][70] Question: What is the current status of the Evora project? - The company is awaiting the physical connection to the grid to start producing hydrogen and selling electricity [85]

Second Quarter 2022 Results 8 September 2022 ALL RIGHTS BELONG TO FUSION-FUEL — Disclaimer This presentation includes statements of future events, conditions, expectations, and projections of Fusion Fuel Green plc (the "Company"). Such statements are "forward looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. The Company's actual results may differ from its expectations, estimates and projections and, consequently, yo ...

Fusion Fuel Green PLC (NASDAQ:HTOO) Q1 2022 Earnings Conference Call May 26, 2022 10:00 AM ET Company Participants Ben Schwarz - Head of Investor Relations Frederico Figueira de Chaves - Chief Financial Officer Jeffrey Schwarz - Chairman Zach Steele - Co- President of Americas Conference Call Participants Ben Schwarz Hello, everyone and welcome to the Fusion Fuel Green's First Quarter 2022 Investor Update. My name is Ben Schwarz, I'm Head of Investor Relations at Fusion Fuel. I would first like to remind ev ...