UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of March 2024
Commission File Number: 001-39789
Fusion Fuel Green PLC
(Translation of registrant’s name into English)
10 Earlsfort Terrace
Dublin 2, D02 T380, Ireland
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
On March 6, 2024, Fusion Fuel Green PLC (“Company”) hosted a live conference call and webcast to discuss the Company’s financial results for the quarter ended December 31, 2023, along with fourth quarter operational highlights. A replay of the webcast, the investor presentation used during the webcast, and a quarterly shareholder update letter from the Company’s executive committee, are each available on the Company’s website, fusion-fuel.eu. The shareholder update letter and investor presentation are also attached as Exhibits 99.1 and 99.2 to this Report on Form 6-K, respectively, and are incorporated by reference herein.
The information furnished in this Report on Form 6-K, including the exhibits related thereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liability of such section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
EXHIBIT INDEX
| Exhibit Number |
Description | |
| 99.1 | Quarterly Update to Shareholders | |
| 99.2 | Investor Presentation |
| 1 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Fusion Fuel Green PLC | |
| (Registrant) | |
| Date: March 6, 2024 | /s/ Frederico Figueira de Chaves |
| Frederico Figueira de Chaves | |
| Chief Executive Officer |
2
Exhibit 99.1
Disclaimer
This presentation includes statements of future events, conditions, expectations, and projections of Fusion Fuel Green plc (the “Company,” "we,” “us” or “our”). 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, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believe,” “predict,” “potential,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, estimates and projections of future performance, which are based on numerous assumptions about sales, margins, competitive factors, industry performance and other factors which cannot be predicted. Such assumptions involve a number of known and unknown risks, uncertainties, and other factors, many of which are outside of the Company’s control, including, among other things: the failure to obtain required regulatory approvals; changes in Portuguese, Spanish, Moroccan, or European green energy plans; the ability to obtain additional capital; field conditions and the ability to increase production capacity; supply chain competition; changes adversely affecting the businesses in which the Company is engaged; management of growth; general economic conditions, including changes in the credit, debit, securities, financial or capital markets; and the impact of any adverse public health developments on the Company’s business and operations. Should one or more of these material risks occur or should the underlying assumptions change or prove incorrect, the actual results of operations are likely to vary from the projections and the variations may be material and adverse.
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.
The Company cautions readers not to place undue reliance upon any forward-looking statements and projections, which speak only as of the date made. The Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based.
Financial Update Presentation
The Company’s consolidated financial data discussed herein is prepared in accordance with International Financial Reporting Standards as adopted by the International Accounting Standards Board (“IFRS”) and is denominated in Euros (“EUR” or “€”). The numbers discussed in this management letter have not been audited and therefore may vary to the final financial results disclosed by the Company as part of its annual report on Form 20-F described below. The unaudited consolidated financial data reflects, in the opinion of management, all adjustments, consisting of normal recurring adjustments, considered necessary for a fair statement of the Company's financial data for the periods indicated. The unaudited consolidated financial data should be regarded in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2022, included in the Company's Annual Report on Form 20-F for the year ended December 31, 2022.
Use of Social Media as a Source of Material News
The Company uses, and will continue to use, its LinkedIn profile, website, press releases, and various social media channels, as additional means of disclosing information to investors, the media, and others interested in the Company. It is possible that certain information that the Company posts on social media or its website, or disseminates in press releases, could be deemed to be material information, and the Company encourages investors, the media and others interested in the Company to review the business and financial information that the Company posts on its social media channels, website, and disseminates in press releases, as such information could be deemed to be material information.
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Dear Shareholders,
The past year was one defined by both challenges and triumphs for our company, largely mirroring the broader landscape of the dynamic green hydrogen industry. Amidst the turbulence, one overarching theme emerged: positioning for long-term, sustainable success. Throughout the year, we achieved several critical milestones that underscore the meaningful progress we have made towards building a best-in-class green hydrogen company. Notably, we celebrated the recognition of our first revenues, forged strategic partnerships and secured two hydrogen offtake contracts. However, perhaps the most significant breakthrough came with the commercialization and initial sales of our HEVO-Chain solution, which will be a catalyst for substantial growth, particularly as we look ahead to 2024 and beyond.
Yet, we would be remiss not to acknowledge the hurdles we encountered along the way. Early in the year, we made the difficult yet necessary decision to revise our 2023 revenue guidance, in recognition of the slower-than-expected development of the green hydrogen value chain and downstream demand (something we recognized early in 2023 when we discontinued the HEVO-Sul project due to regulatory and licensing delays). The challenges we faced were not unique to our company but reflective of the broader industry's struggle to navigate a period of significant transformation and maturation.
Despite long-term, structural tailwinds supporting the prospects of the green hydrogen opportunity, our industry has encountered substantial growing pains typical of a new and high-velocity market. What was expected to be an inflection point in the evolution of the hydrogen value chain has instead proven to be one of uneven and inconsistent growth. The infrastructure bottleneck continues to pose a fundamental hurdle in the development of large-scale hydrogen production, and while the policy and regulatory landscape has begun to coalesce, we have not yet seen that translate to a significant acceleration in deployment. In parallel, electrolyzer technology globally has not yet proven that it is ready for deployment at large scale, as evidenced by several project shutdowns in Europe and North America, along with more general questions surrounding electrolyzer reliability, durability, and performance. These factors contributed to a challenging market environment in 2023, although we did see a significantly more active green hydrogen market in Europe over the second half of 2023.
We are confident that these do not represent structural challenges but rather short-term obstacles, ones which offer opportunities for strategic differentiation. We believe that the steps taken throughout 2023 and in early 2024 have significantly strengthened our market positioning and extended our competitive advantage:
| · | Our modular, plug-and-play HEVO-Chain technology positions us as a credible player in the small-to-mid-scale project segment, mitigating some of the underlying concerns facing larger commercial endeavors. |
| · | Our low burn rate means that we are well-equipped to weather periods of slower-than-expected commercial activity than many of our peers, some of whom are only now embarking on cost reduction initiatives. |
| · | Our portfolio of development projects continues to provide considerable value to the company, serving as both a built-in pipeline for technology sale opportunities and a source of vitally important grant funding. This complementary approach not only diversifies our revenue streams but also mitigates risk, providing us with a solid foundation for sustainable growth. |
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| · | Our track record of project delivery and ongoing technical performance, along with our in-house engineering and project development capabilities, positions us as a strong provider of end-to-end green hydrogen solutions. |
Financial Update
Our current capital position, which has been a source of concern for both the Company and our shareholders, can be broken down into three sub-categories:
| · | ATM – during February 2024, and particularly after the European Commission’s acceptance of our HEVO-Portugal project as an Important Project of Common European Interest (‘IPCEI’), we raised net proceeds of $6.4 million through our ATM program at an average sales price of $2.73/share (with $5.9 million raised on February 16 alone at an average sales price of $3.05/share). While we have been reluctant to aggressively utilize the ATM facility in the past, the extraordinary trading volume following the IPCEI announcement allowed us to place shares into the market at meaningfully more attractive terms relative to the short-term bridge financing options that we had been considering at the time. The proceeds from these sales, along with expected operating inflows from grants and client business over the coming months, provide us with some much-welcomed “breathing room” as we look to further strengthen the Company´s capital position. |
| · | Macquarie facility – as previously disclosed, we entered into a Securities Purchase Agreement with a Macquarie Group company as lead investor in November 2023 pursuant to which we may sell up to $20 million of convertible promissory notes to the investor upon the satisfaction of certain conditions. We have agreed with Macquarie upon the size of the first tranche of the facility ($1.15 million) and are working to satisfy the remaining conditions with a goal of completing the first drawdown under the agreement by the end of the first quarter of 2024. |
| · | EGM notice – as you will have seen, we filed a notice for an Extraordinary General Meeting (‘EGM’) of the Company’s shareholders which will take place on March 20, 2024. Under Irish law, the Company must have authority from its shareholders to issue any securities. The Company’s shareholders previously authorized the Company to issue securities of up to 20% of the issued ordinary shares of the Company during any calendar year, equivalent to 2,952,994 shares. The Company has determined that it would be in its best interest to seek approval from shareholders to provide the Company with authority to issue securities above and beyond this 20% cap. The reason we are making this request now is that, while February’s ATM sales have meaningfully extended our runway, we no longer have ample room to maneuver whilst remaining under the 20% threshold. We continue to believe that uncertainty around our capital position is the greatest concern of the market and that resolving the capital constraint will remedy our long-standing valuation disconnect relative to our peers. As we have noted in previous updates, we have been exploring multiple options to further solidify our capital position, which may entail selling securities in excess of this cap. It is imperative that the Company is able to move quickly and decisively in the event of a prospective capital raise or strategic partnership, lest we risk jeopardizing a transaction while we await shareholder approval. As management and the board are amongst the largest holders of Fusion Fuel securities, rest assured that we are sensitive to the dilutive impact any significant financing would have on existing shareholders and are therefore motivated to ensure that any equity offering we consider creates meaningful long-term value for the Company and its shareholders. |
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Guidance
During the fourth quarter of 2023, we recognized revenue of €1.6 million with respect to our project with CSIC, bringing the total revenues for 2023 to €4.1 million. The gap to our revenue guidance is related to delays in being able to deliver product during the fourth quarter, which we had alluded to as part of our third quarter update. Our total client billings for 2023 amounted to €4.7 million. When issuing our 2023 revenue guidance, we had expected to invoice the final phase of our CSIC project, but revenue will instead now be recognized during 2024.
Looking ahead, we are maintaining our revenue guidance of €34 million for 2024. This is based on approximately €7 million of signed contracts and another €27 million of project and technology sales currently in negotiation. In addition, we are seeing an increasing contribution from our Engineering Services group, with approximately €12 million of the targeted €34 million of client bookings forecasted in 2024 to come from Engineering Services and balance of plant equipment supply.
We performed a rigorous review of our cost base during 2023. From cost of materials to general operating costs, we identified savings to be made and are already seeing the benefits of this review with a reduced cost base in 2024. Our SG&A for fiscal 2023 was €5 million lower than what was recorded during fiscal 2022. The main drivers of this decrease compared to 2022 relate to reductions in personnel costs (€1.4 million), impairments related to our Evora project (€3.1 million) and professional fees (€0.5 million). With our revised cost base, we are forecasting SG&A of between €14 - €16 million for fiscal 2024, which would represent a further reduction compared to 2023.
Fourth quarter results:
| · | Customer inflows: €2.14 million was received from clients related to technology sale contracts. |
| · | Grant funding: €2.6 million was received, of which €0.9 million was from our C-14 and €1.7 million from our C-5 grant awards previously approved by the Portuguese Government as part of Component 5 and 14 of their Recovery and Resilience Plan. |
Cash outflows during the fourth quarter of 2023 included investment of €2.1 million in procurement, production, investment in our
Benavente production facility and research & development of our HEVO technologies. This represents a reduction of €1.5 million
compared to the third quarter of 2023.
Our compensation expenses were reduced during the fourth quarter of 2023 as our headcount was lower when compared to previous quarters. We also continued to reduce our other operating expenses during the fourth quarter, with reductions in legal, travel, and consulting fees. Out of the grant income received during the fourth quarter of 2023, we were able to allocate €1.6 million against our personnel costs for 2023.
| 6 |
As noted above, we undertook a thorough review of all components comprising our inventory during the second half of 2023. We recorded a net increase of €6.4 million to the impairment charge as well as an impairment of €3.3 million relating to one of our development projects during the fourth quarter of 2023. These significant impairments relate to specific components manufactured to legacy design for which negotiations with prospective buyers have stalled. Management has therefore decided to impair the full value until such a time that we have further certainty on our ability to sell or even scrap these materials. The recovery value of these components is still to be determined, but at this time we have decided to impair the full value. Since this process started, we have received €0.4 million through the sale or scrapping of these legacy components.
At quarter-end, the value of net assets amounted to €3.9 million, which represents a decrease of €11.6 million on the value at the September 30, 2023, mainly driven by the reduction to inventory, increase to our inventory related provisions and impairment charges. Our cash balance was €1.2 million as of December 31, 2023.
Commercial Update
In the fourth quarter of 2023, we highlighted a significant milestone with the first instance of repeat business following the announcement of two separate 1.25 MW projects for a single client in Portugal. As our technology sales are currently primarily focused on sub-10 MW projects, often starting with a small-scale proof-of-concept, we believe repeat business will be a key driver of scalability in our business moving forward. In fact, many of the opportunities we are currently pursuing, as well as prospects with whom we are engaged in discussions, already contemplate multiple projects in the pipeline. This underscores the pivotal role repeat business will play in our growth strategy moving forward.
Central to the repeat business model is our role as a trusted advisor and partner to our clients, guiding them through every stage of the project lifecycle. Our ability to offer comprehensive support has been instrumental in cultivating strong relationships with many of our clients, a critical asset in a new industry where expertise is scarce. Looking ahead, we expect to build on these initial successes by further strengthening our commercial and engineering areas, with plans to deliver six or seven full green hydrogen plants in 2024.
As we have previously noted, our in-house engineering capability has proven to be a valuable and complementary addition to our portfolio. This is an offering that emerged largely out of necessity – there simply was not enough hydrogen-specific engineering expertise in the market, so we had to develop it ourselves, cutting our teeth at our demonstration project in Evora and at our pioneering solar-to-hydrogen refueling project for Exolum in Madrid. These experiences served as our training ground, allowing us to hone our skills and solidify our position as an early leader in the field.
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As a result, Engineering already represents a material revenue stream for the Company and a potential driver of significant growth by showcasing our ability to provide end-to-end solutions. We expect our engineering services to generate approximately €2 million in equipment sales and approximately €10 million in balance of plant sales. Given the scarcity of expertise in this space, we believe our unique ability to offer a full suite of services – project advisory, engineering support, procurement, construction, commissioning and O&M – positions us as a trusted partner in the industry. Finally, by using our engineering services to support new players as they navigate the complexities of green hydrogen plant development, we aim to cultivate enduring client relationships that will contribute to our long-term success.
In February 2024 we were notified that our Sines Hydrogen Valley project was one of 33 projects designated as an “Important Project of Common European Interest” as part of the Hy2Infra program, the third in a series of hydrogen IPCEIs published to date. This prestigious recognition underscores the significant contribution our project is poised to make towards Portugal’s hydrogen ambition, as well as its potential to catalyze growth within the broader Portuguese economy. It also affirms the project’s role in advancing the cross-European vision for an integrated and vibrant green hydrogen economy.
This was a process that we kicked off in the first half of 2020, beginning with a submission to the Portuguese government. Following a lengthy due diligence process administered by the government, the project was selected and submitted for consideration to the European Commission. Over the course of nearly two years, our teams diligently responded to inquiries and provided clarification; however, throughout this period, we refrained from extensively discussing the project due to its enormous scale, recognizing the potential distortion it could introduce to our business plan. Suffice it to say, we are thrilled that our effort was rewarded, and the project merits were validated.
The HEVO-Portugal project – along with its IPCEI designation – is what we have considered as Phase III (530 MW) of our overall Sines project portfolio of 630 MW. The other projects include our C-14 project of 10 MW and the C-5 project of 90 MW, which have already been awarded a combined €32 million through the two related components of Portugal´s Resilience & Recovery plan. This is a truly ambitious project, one which includes in its scope the production of green ammonia and the export of a portion of that output to the Netherlands. While Fusion Fuel is the lead developer of the project, given its size and complexity, it will be executed alongside multiple strategic partners. Despite the IPCEI designation, there are still many items to be worked on, all of which will take considerable time and attention. The quantum and allocation of project investment across the various stakeholders will only be determined when the project reaches FID, a milestone which will take many months to complete. It is reasonable to expect this project to advance into the construction phase in 2026 and only be completed and commissioned in 2028/29.
Still, the IPCEI designation carries with it several immediate benefits for our project and the Company more broadly. For example, it grants us the ability to engage in bilateral agreements with local governments for financial support for the HEVO-Portugal project, along with potential financing and advisory support from the European Investment Bank. In the new and emerging green hydrogen economy, the ability to secure financing for large-scale projects is a rare commodity and a critical condition to ensure economic viability. We have already advanced this project from a concept to a desirable asset with several key pieces on the board, and this designation provides our Sines Hydrogen Valley with a significant tailwind. As the lead developer, we will continue to mature the project and look to create value every step of the way; however, given its size and scope, we must also continue to evaluate the optimal use of capital at each stage.
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The IPCEI project is a transformative development for Fusion Fuel, one which we expect will drive enormous value for the Company, not only in terms of future revenues, but also as we engage with counterparts who represent potential long-term, strategic partners. The meticulous due diligence process by the European Commission and the successful recognition of this cornerstone project has already been seen as a major credibility milestone for the Company in discussions with third parties. We expect this to continue as we progress with the development projects in our portfolio and deliver on multiple initiatives across Southern Europe in 2024.
Conclusion
After four years of diligent effort and anticipation surrounding the IPCEI decision, we must acknowledge that it certainly feels like a “before and after” moment for our Company. The approval of this project is a true game-changer for Fusion Fuel and the entire green hydrogen industry in Portugal. Coupled with the remarkable surge in market momentum we have experienced in projects emerging from conceptual design to concrete engineering and planning phases, we find ourselves emboldened and with a renewed determination to propel Fusion Fuel forward in the global green hydrogen movement.
Recognizing that the green hydrogen market will evolve incrementally rather than through straight line growth, we are confident in our ability to navigate these stages successfully. With our differentiated electrolyzer solution, world-class green hydrogen engineering expertise, strategic project portfolio and broad tech sales pipeline, we are confident Fusion Fuel is poised for accelerated growth. As we look to the future, we eagerly anticipate seizing the opportunities that lie ahead, solidifying our position as a driving force in the green hydrogen landscape.
Yours Sincerely,
| 9 |
Key Developments in 2023
| § | Entered into green hydrogen offtake agreements with Dourogas and Hydrogen Ventures |
| § | Entered into partnership agreements with Toyota Material Handling España, Duferco Energia, and Elemental Clean Fuels |
| § | Awarded ~€17 million in project grant funding |
| § | Commercialized turnkey, modular HEVO-Chain solution for a global leader in the building materials industry |
| § | Headcount has reduced by ~30% from highest point in 1Q23; operating costs have reduced 22% year over year |
| § | Published inaugural ESG Report |
| § | Recognized first revenues; cumulatively booked €4 million in 2023 |
Subsequent Events
| § | Received notification of IPCEI approval from European Commission for 630 MW HEVO-Portugal Project |
| § | Raised ~€6 million from at-the-market program to strengthen capital position |
| § | Awarded €1.015 million grant from European Commission as part of H2tALENT consortium |
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Key Figures1
| Key Financial results / metrics (€’000) | 4Q 2023 | 3Q 2023 |
| Profit/loss | ||
| Revenues | 1,637 | 2,507 |
| Cost of goods sold | (10,769) | (3,178) |
| SG&A | (2,107) | (4,682) |
| Pre-tax loss | (12,269) | (4,043) |
| Balance sheet | ||
| Non-current assets | 32,966 | 36,760 |
| Cash balance | 1,161 | 1,025 |
| Inventory | 3,786 | 11,924 |
| Trade payables | 12,946 | 13,428 |
| Equity | 3,868 | 15,441 |
| Employees | ||
| Headcount at end of period (FTE) | 124 | 142 |
| Production staff : Non-production staff | 53 : 71 | 52 : 90 |
| Grants | ||
| Grants Approved | 61,015 | 60,000 |
| Grant Payments Received to date | 11,353 | 8,803 |
1 Please refer to our more detailed investor presentation for further detail on our financial results for the fourth quarter of 2023.
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2024 Guidance
1 As noted previously, revenue recognition does not always follow sales/inflows so the revenue recognized may not equate to sales made.
Projections are based on the financial and business model of Fusion Fuel, constitute “forward-looking statements”, and involve a number of risks, uncertainties or other assumptions that may cause actual results or performance to be materially different. See disclosures and disclaimers at the start of this presentation.
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Executive Offices Ireland Fusion Fuel Green Plc. The Victorians 15 - 18 Earlsfort Terrace Saint Kevin's - Dublin 2 Ireland contact@fusion-fuel.eu
Portugal Fusion Fuel Portugal Rua da Fábrica, S/N, Sabugo 2715-376 Almargem do Bispo Portugal contact@fusion-fuel.eu
Shareholder Inquiries Information about the firm, including all quarterly earnings releases and financial filings with the U.S. Securities and Exchange Commission, can be accessed via our Web site at www.fusion-fuel.eu
Shareholder inquiries can also be directed to Investor Relations via email at ir@fusion-fuel.eu
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Transfer Agent and Registrar for Ordinary Shares Questions from registered shareholders of Fusion Fuel Green Plc. regarding lost or stolen stock certificates, dividends, changes of address, and other issues related to registered share ownership should be addressed to:
Continental Stock Transfer & Trust Company 1 State Street New York, NY 10004 Attn: Ana Gois |
14
Exhibit 99.2
ALL RIG HT S BELONG TO FUSION - FUEL 4Q 2023 PRESENTATION
ALL RIG HT S BELONG TO FUSION - FUEL — Disclaimer This presentation includes statements of future events, conditions, expectations, and projections of Fusion Fuel Green plc (t he “Company”). Such statements are “forward looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Ref orm Act of 1995. The Company’s actual results may differ from its expectations, estimates and projections and, consequently, you should not rely on these forward - looking statemen ts as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “ bel ieve,” “predict,” “potential,” and similar expressions are intended to identify such forward - looking statements. These forward - looking statements include, without limitation, estimate s and projections of future performance, which are based on numerous assumptions about sales, margins, competitive factors, industry performance and other factors whi ch cannot be predicted. Such assumptions involve a number of known and unknown risks, uncertainties, and other factors, many of which are outside of the Company’s con tro l, including, among other things: the failure to obtain required regulatory approvals; changes in Portuguese, Spanish, Moroccan, or European green energy plans; the abilit y t o obtain additional capital; field conditions and the ability to increase production capacity; supply chain competition; changes adversely affecting the businesses in which th e C ompany is engaged; management of growth; general economic conditions, including changes in the credit, debit, securities, financial or capital markets; or any adverse pu blic health developments on the Company’s business and operations. Should one or more of these material risks occur or should the underlying assumptions change or prov e i ncorrect, the actual results of operations are likely to vary from the projections and the variations may be material and adverse. 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. The Company cautions readers not to place undue reliance upon any forward - looking statements and projections, which speak only a s of the date made. The Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward - looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based. Financial Update Presentation The Company’s consolidated financial data is prepared in accordance with International Financial Reporting Standards as adopt ed by the International Accounting Standards Board (“IFRS”) and is denominated in Euros (“EUR” or “€”). The numbers shown in this presentation have not been audited and t her efore may vary to the final financial results disclosed by the company as part of the annual report. The unaudited consolidated financial data reflects, in the opinion of man agement, all adjustments, consisting of normal recurring adjustments, considered necessary for a fair statement of the Company's financial data for the periods indicated. T he unaudited consolidated financial data should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2022 in cluded in the Company's Annual Report on Form 20 - F for the year ended December 31, 2022. Use of Social Media as a Source of Material News The Company uses, and will continue to use, its LinkedIn profile, website, press releases, and various social media channels, as additional means of disclosing information to investors, the media, and others interested in the Company. It is possible that certain information that the Company posts on so cial media or its website, or disseminates in press releases, could be deemed to be material information, and the Company encourages investors, the media and others intere ste d in the Company to review the business and financial information that the Company posts on its social media channels, website, and disseminates in press releases, a s s uch information could be deemed to be material information.
ALL RIG HT S BELONG TO FUSION - FUEL ▪ Focus on Fusion ▪ Industry POV ▪ Q4 Financials & Highlights ▪ Business Update ▪ 2024 Milestones and Priorities ▪ Q&A AGENDA
ALL RIG HT S BELONG TO FUSION - FUEL 01 – FOCUS ON FUSION
ALL RIG HT S BELONG TO FUSION - FUEL 5 Unlocking the energy transition through the design and development of innovative green hydrogen solutions LEADING PURE PLAY HYDROGEN SOLUTIONS COMPANY Differentiated, modular design based on proprietary miniaturized PEM electrolyzer Complementary service proposition : equipment sales, engineering, and project development Decentralized, building - block architecture unlocks unprecedented scalability and reliability Competitive advantage in small - to - midscale segment , closely aligned with current market demand profile De - risked near - term pipeline supported by company - owned project portfolio and €60+ million in grant funding Next - gen electrolyzer production facility located in Portugal, dimensioned for 500 MW of throughput 01 – FOCUS ON FUSION
ALL RIG HT S BELONG TO FUSION - FUEL 6 01 – INDUSTRY AND MARKET DYNAMICS Momentum building, but slower than expected demand - development contributing to paradigm shift… ▪ Announcement of H2Infra IPCEI provides much - needed catalyst to European market ▪ Capital markets conditions have improved providing sightline to viable equity financing solutions ▪ IRA production tax credit more restrictive than expected, impacting near - term US growth prospects ▪ Commercial activity & order flow have decelerated, putting pressure on liquidity ▪ Heightened investor scrutiny on capital position; emphasis on capital discipline and cost reduction ▪ Strategic pivot away from “growth at all costs” in favor of long - term sustainable growth ▪ Focus on ‘delivery’, showcasing operational credibility and technical reliability Our improved capital position, low burn rate, differentiated tech, and focus on actionable , small - to - midscale projects position us to navigate these headwinds and capitalize on emerging opportunities
ALL RIG HT S BELONG TO FUSION - FUEL 02 – Q4 FINANCIALS & HIGHLIGHTS
ALL RIG HT S BELONG TO FUSION - FUEL Key Developments in 2023 ▪ Entered into green hydrogen offtake agreements with Dourogas and Hydrogen Ventures ▪ Entered into partnership agreements with Toyota Material Handling España, Duferco Energia, and Elemental Clean Fuels ▪ Awarded ~€ 17 million in project grant funding ▪ Commercialized turnkey, modular HEVO - Chain solution for a global leader in the building materials industry ▪ Headcount has reduced by ~ 30 % from highest point in 1 Q 23 ; operating costs have reduced 22 % year on year ▪ Published inaugural ESG Report ▪ Recognized first revenues ; cumulatively booked over € 4 million in 2023 ▪ Received two orders for 1 . 25 MW HEVO - Chain green hydrogen systems to be delivered to projects in Portugal in 2024 ▪ Signed securities purchase agreement with Belike Nominees Pty Ltd . , a Macquarie Group Company Subsequent Events ▪ Received notification of IPCEI approval from European Commission for 630 MW HEVO - Portugal Project ▪ Raised ~ € 6 million from at - the - market program to strengthen capital position ▪ Awarded € 1 . 015 million grant from European Commission as part of H 2 tALENT consortium 8 02 – 2023 HIGHLIGHTS Q4
ALL RIG HT S BELONG TO FUSION - FUEL 3Q 2023 4Q 2023 K ey Financial Results / Metrics (€’000) Profit/loss 2,507 1,637 Revenues (3,178) (10,769) Cost of goods sold (4,682) (2,107) SG&A (4,043) (12,269) Pre - tax loss Balance sheet 36,760 32,966 Non - current assets 1,025 1,161 Cash balance 11,924 3,786 Inventory 13,428 12,946 Trade payables 15,441 3,868 Equity Employees 142 124 Headcount at end of period (FTE) 52 : 90 53 : 71 Production Staff : Non - Production Staff Grants 60,000 61,015 Grants Approved 8,803 11,353 Grant Payments Received to date Key developments in Q 4 2023 Inflows Recognition of revenue related to our CSIC contract . Client inflows of € 0 . 6 million during Q 3 that did not meet the criteria to be recorded as revenues . This revenue will be recognized during 2024 . Inflows from scrapped materials sales of € 0 . 4 million . Grant payments received of € 2 . 6 million during the quarter . Outflows Impairment charges of € 8 . 1 million related to legacy materials . Decrease in SG&A of € 2 . 6 million which included a one - off credit of € 1 . 6 million relating to grant income . Capital No capital amounts raised during Q 4 . Over 5 trading days in February 2024 , we sold 2 , 345 , 452 class A ordinary shares for net proceeds of $ 6 , 398 , 264 at an average sales price of $ 2 . 73 per share through our ATM facility . We paid $ 165 , 878 in commissions to agents as part of these trades . 02 – FINANCIAL DATA (UNAUDITED) 9
ALL RIG HT S BELONG TO FUSION - FUEL 10 02 – FINANCIAL DATA (UNAUDITED) 1 As noted previously, revenue recognition does not always follow sales/inflows so the revenue recognized may not equate to sal es made. Projections are based on the financial and business model of Fusion Fuel, constitute “forward - looking statements”, and involve a number of risks, uncertainties or other assumptions that may cause actual results or performance to be materially different. See disclosures and disclaimers at the start of this presentation. 2023 FULL YEAR RESULTS Revenue of €4.1m First revenues recorded SG&A of €17.6m Reduction of €5m (22%) vs. 2022 Capex of € 4.9 m Reduction of € 5.5 m (53%) vs. 2022 2024 GUIDANCE Total Sales of €34m 1 Contracted Sales of €7.3m 1.7 x increase compared to 2023 Sales in Negotiation of €26.7m Includes project & HEVO - Chain sales SG&A of €14 – 16m 9% - 20% of further savings in 2024 Capex of €8 - 10m Investments in Automation and R&D
ALL RIG HT S BELONG TO FUSION - FUEL 03 – BUSINESS UPDATE
ALL RIG HT S BELONG TO FUSION - FUEL 12 After nearly four years of due diligence our Sines Portfolio has been designated as an “Important Project of Common European Interest ” Project will be developed and executed in collaboration with multiple cross - European partners A driver of significant long - term value for Fusion Fuel SINES PROJECT PORTFOLIO Phase I 2024 - 25 10 MW 750 tons of green H 2 tons of green H 2 tons of green H 2 90 MW 9,000 Phase II 2025 - 26 530 MW 52,520 Phase III 2026 - 28 Grant Approved: €10m Portugal ´ s PRR C - 14 Grant Approved: €22m Portugal ´ s PRR C - 5 Financial support from government & European Investment Bank 03 – IPCEI –
ALL RIG HT S BELONG TO FUSION - FUEL WHAT IPCEI DESIGNATION MEANS • “Important Project of Common European Interest” (IPCEI). One of 33 projects selected as part of the H2Infra Program. • Funding negotiations can now start with government stakeholders and the European Investment Bank. • One of Portugal’s most ambitious green hydrogen projects, led by Fusion Fuel with multiple key partners. • Expected to be a significant contributor to Fusion Fuel’s revenue line over its three phases. 1. GREEN HYDROGEN PRODUCTION • Supply of 62,000 tons p.a. of green hydrogen via the Sines H 2 pipe ring • 630 MW of electrolyzer capacity • ~650,000 tons of CO 2 p.a. avoided 2. OFF - TAKE • 62,000 tons of green hydrogen can produce up to 332,565 tons of green ammonia • Project partner is a major player in European green ammonia space 3. EXPORTATION ROUTE • Establishing a route to Northern Europe through the off - taker • Supporting Europe’s energy transition and decarbonization efforts 1 2 3 03 – IPCEI – 13
ALL RIG HT S BELONG TO FUSION - FUEL 14 OFFERING OVERVIEW ADVISORY : CONCEPT & PROPOSAL ▪ Concept design of plant to suit client needs ; identification of main requirements of the installation ENGINEERING : FEL I, II, & III STUDIES ▪ From conceptual to final designs, ready for construction PROCUREMENT ▪ Procurement and sourcing for the full hydrogen plant CONSTRUCTION ▪ Construction planning and supervision (Iberia only) LEGALIZATION ▪ Iberian regulation and legalization process expertise OPERATION & MAINTENANCE ▪ Training and early operation & maintenance support 03 – FUSION FUEL ENGINEERING VALUE TO FUSION FUEL ADDS COMPLEMENTARY REVENUE STREAM ▪ Engineering Services represents a potential driver of significant incremental revenue ; our Engineering offering is expected to generate approximately € 2 m of sales and € 10 m of balance of plant sales in 2024 . DEVELOPS SPECIALIZED EXPERTISE ▪ Very few companies have developed green hydrogen plants from concept to commissioning . With each facility we build, we deepen our institutional knowledge, creating additional value for subsequent projects . SECURES TRUSTED PARTNER ROLE ▪ Supporting new entrants with end - to - end solutions as they navigate the complexities of green hydrogen project development helps us build lasting and sticky client relationships .
ALL RIG HT S BELONG TO FUSION - FUEL 15 Our HEVO - Chain solution is already in production at our Benavente Factory for delivery to projects in 2024 This modular solution is highly scalable and can be customized to client specifications, with HC - Cube modules ranging from 36 to 120 HEVOs per Cube HEVO - CHAIN PRODUCTION HEVO - CHAIN Cube 120 HEVO - CHAIN Cube 48 HEVO - CHAIN modular unit 03 –
ALL RIG HT S BELONG TO FUSION - FUEL 16 03 – Render of HEVO - CHAIN system following installation at client facility We expect to ship our f irst HEVO - Chain to the client, a global provider of sustainable building solutions, during 1Q24. 300 kW HEVO - Chain system, including full plant delivery, balance of system, balance of plant, and related engineering services HEVO - CHAIN DEPLOYMENT
ALL RIG HT S BELONG TO FUSION - FUEL 04 – 2024 MILESTONES
ALL RIG HT S BELONG TO FUSION - FUEL 18 1. Deliver and install several HEVO - Chain systems and plant related engineering services ▪ Successfully deliver and install six to seven full HEVO - Chain systems to European clients, including five full project deliveries 2. Strengthen balance sheet and capital position ▪ Operationalize first tranche of the $ 20 m Macquarie facility ▪ Further strengthen capital position with complementary and strategic sources of capital 3. Broaden the target market for HEVO - Chain ▪ Continue to evolve offering to be suitable for deployment in North American and Australian markets, as well as for larger - scale projects 4. Continue to reduce operational costs and ensure effective resource allocation ▪ Continue to right - size company structure and costs, and make strategic resource allocation changes 5. Pursue strategic commercial and production partnerships ▪ Pursue strategic partnerships across the hydrogen value chain and within key geographies, in particular to effectively deliver the IPCEI project phases 04 – 2024 PRIORITIES & VALUE DRIVERS
ALL RIG HT S BELONG TO FUSION - FUEL Q&A