Market Newsdesk

 

KEY FIGURES OF DASSAULT AVIATION GROUP

	2020	2019
Order intake	€ 3,463 M   OCEAN support contract 15 Falcon	€ 5,693 M   RAVEL support contract 40 Falcon
Adjusted net sales (*)	€ 5,489 M   13 Rafale Export 34 Falcon	€ 7,341 M   26 Rafale Export 40 Falcon
Backlog as of December 31	€ 15,895 M   62 Rafale of which 28 Rafale France and 34 Rafale Export   34 Falcon	€ 17,798 M   75 Rafale of which 28 Rafale France and 47 Rafale Export   53 Falcon
Adjusted operating income (*)   Adjusted operating margin	€ 261 M   4.8% of net sales	€ 765 M   10.4% of net sales
Research and Development	€ 538 M   9.8% of net sales	€ 527 M   7.2% of net sales
Adjusted net income (*)   Adjusted net margin   Earnings per share	€ 396 M   7.2% of net sales   € 47.6 per share	€ 814 M   11.1% of net sales   € 97.9 per share
Available cash as of December 31	€ 3,441 M	€ 4,585 M
Dividends	€ 103 M       € 12.3 per share	Proposed Feb. 2020: € 212 M             Revised April 2020: € 0 M
Employee profit-sharing and incentives incl. 20% correlated social tax Headcount as of December 31	€ 85 M     12,441	€ 187 M     12,757

       Note: Dassault Aviation recognizes Rafale Export contracts in their entirety (including the Thales and Safran parts).

Main IFRS aggregates (see reconciliation table in the Appendix)

(*) Consolidated net sales	€ 5,492 M	€ 7,371 M
(*) Consolidated operating income	€ 246 M	€ 796 M
(*) Consolidated net income	€ 303 M	€ 713 M

Saint-Cloud, March 5, 2021 – The Board of Directors approved the 2020 accounts at a Board meeting chaired by Mr. Éric Trappier yesterday. The audit procedures have been completed and the audit opinion is in the process of being issued.

 “2020 was an extraordinary year, dominated by the Covid-19 pandemic that plunged the entire world into a health and economic crisis. This crisis allowed Dassault Aviation to demonstrate the relevance of its dual model as well as its resilience ability. Following the initial shock, our organizations have had to adapt by implementing a robust health protocol to ensure the safety of our employees, and “under crisis remote working” for most of them.

In this extraordinary context, we focused on meeting our commitments:

• providing support for the armed forces and Falcon customers,
• completing Rafale Export and Falcon deliveries,
• continuing to develop the Falcon 6X.

In addition, some delays were caused by the necessary changes in work organization (workplace shutdown, “under crisis remote working”, sub-contractor delays, etc.).

The aviation sector has been hit hard by the shutdown of a large part of air traffic. The French government has supported the sector through state-guaranteed loans and a furlough scheme. It has also launched a plan to support and modernize the sector in association with GIFAS.

In 2020, Dassault Aviation:

• received € 6 million of state temporary furlough allowance,
• paid € 1 million to the investment fund out of the € 13 million commitment,
• received € 8 million from CORAC.

In these exceptional circumstances, our shareholders have shown their support by waiving their 2020 dividends due in respect of the 2019 earnings.

As guided, we delivered 13 Rafale Export and continued to explore new Export opportunities. This led to the successful sale to Greece, in January 2021, of 18 Rafale (6 new aircraft and 12 aircraft recently put into service with the French Air and Space Force). Following the sale, France announced the order of a further 12 Rafale to replace those to be delivered to Greece.

We also successfully delivered 34 Falcon (despite the travel restrictions), continued working on the Falcon 6X which completed its virtual rollout in December 2020 and that is expected to enter into service in late 2022 and continued to develop the future Falcon to be announced in the first half of 2021.

The 2020 order intake amounted to EUR 3,463 million, versus EUR 5,693 million in 2019. This year, it included the integrated support contract for the Atlantique 2 (OCEAN) for France and 15 Falcon, including the “Albatros” maritime surveillance aircraft program for the French Navy. In 2019, it chiefly comprised the RAVEL contract and 40 Falcon.

Net sales in 2020 amounted to EUR 5,489 million, versus EUR 7,341 million in 2019. This reduction, as planned, is mainly due to a lower number of Rafale Export deliveries (13 vs. 26 in 2019) and Falcon deliveries (34 vs. 40 in 2019).

Operating margin was 4.8%, versus 10.4% in 2019. It is directly affected by:

• the financial impacts due to the health crisis (under-used capacity, cost of health measures, decline in activity at Falcon maintenance centers, etc.). The savings associated with the action plans implemented by the Group have cushioned these impacts,
• the significant level of self-financed R&D, representing 9.8% of net sales, compared with 7.2% in 2019. Despite the crisis, we aimed at keeping our current developments going, particularly the Falcon 6X and the future Falcon,
• less absorption of fixed costs due to the 25% drop in net sales.

2020 adjusted net income, down 51%, stood at EUR 396 million, representing a net margin of 7.2% of net sales, versus 11.1% in 2019. This decrease is mainly due to the lower operating income and the smaller contribution to net income from Thales.

This result leads to a dividend proposal of EUR 103 million (EUR 12.3 per share) for shareholders and to a payment to employees of EUR 85 million, including the correlated social tax, by way of profit-sharing and incentive schemes.

We continued implementing our transformation plan, and particularly the digitalization of the Company. Digitalization is essential for our processes, from design to support, while mastering our data. We also put emphasize on our industrial performance and on modernizing our infrastructures.

Looking ahead, 2021 will still to be dominated by the pandemic and its consequences for public health and economy. In this context, our efforts and strategy will be:

• Export Rafale: perform contracts and continue to explore new business opportunities,
• Falcon: increase sales,
• Falcon 6X: continue development with aiming at its entry into service in late 2022,
• Military developments: pursue the current programs (F4 standard, Archange, Albatros, etc.),
• Preparation of the future: keep to the schedule for the future Falcon,
• New Generation Fighter: obtain the launch of phases 1B and 2,
• Eurodrone: secure a contract,
• 5^th batch of the Rafale France: prepare for the productability contract,
• Aircraft support and availability: maintain the highest standards,
• Energy transition: secure CORAC orders,
• Make in India: continue developing the activities transferred to DRAL.

We plan to deliver 25 Rafale and 25 Falcon. Net sales will increase.”

Éric Trappier, Chairman and Chief Executive Officer of Dassault Aviation.

 

1.     ADJUSTED CONSOLIDATED 2020 RESULTS

(see reconciliation table in the appendix)

1.1      Order intake

2020 order intake was EUR 3,463 million versus EUR 5,693 million in 2019. Export order intake represented 41%.

The change in order intake was as follows, in EUR million:

	2020		2019		2018		2017		2016
Defense	1,546	3,385		2,710		905		8,139
Defense Export	224	769		1,672		353		7,443
Defense France	1,322	2,616		1,038		552		696
Falcon	1,917	2,308		2,314		2,384		1,419
Total order intake	3,463	5,693		5,024		3,289		9,558
% Export	41%	49%		80%		82%		92%

The order intake is composed entirely of firm orders.

Defense programs

In 2020, Defense order intake totaled EUR 1,546 million, compared with EUR 3,385 million in 2019.

The Defense Export share of the intake was EUR 224 million in 2020, compared with EUR 769 million in 2019, a year that saw significant military support.

The Defense France portion amounted to EUR 1,322 million in 2020, compared with EUR 2,616 million in 2019. Order intake includes the 10-year integrated support contract (excluding engines) for the ATL2 with the French Naval Air Force (“OCEAN”), the exercise of complementary options for the F4 standard, and the first study phases for the NGWS (“Next Generation Weapon System”). In 2019, it included the contractualization of the French 10-year integrated support contract for the Rafale (“RAVEL”).

Falcon programs

In 2020, 15 Falcon orders were recorded, compared with 40 in 2019. Order intake totaled EUR 1,917 million, versus EUR 2,308 million in 2019. This includes the “AVSIMAR” contract with France, for the development and acquisition of 7 Falcon 2000 LXS Albatros for maritime surveillance aircraft and associated support.

1.2      Adjusted net sales

Net sales for 2020 were EUR 5,489 million versus EUR 7,341 million in 2019. Export net sales represented 89%.

The change in net sales was as follows, in EURmillion:

	2020		2019		2018		2017		2016
Defense	3,263	5,148		2,485		1,875		1,244
Defense Export	2,699	4,261		1,419		1,402		719
Defense France	564	887		1,066		473		525
Falcon	2,226	2,193		2,599		3,001		2,342
Total adjusted  net sales	5,489	7,341		5,084		4,876		3,586
% Export	89%	88%		78%		89%		83%

Defense programs

As forecast, 13 Rafale Export were delivered in 2020, versus 26 Rafale in 2019. For the record, on February 27, 2020, we published a guidance of 13 Rafale deliveries. After having suspended this guidance on April 1 due to the Covid-19 crisis, on July 23, 2020, we confirmed the guidance of 13 Rafale deliveries.

Defense
net sales in 2020 were EUR 3,263 million versus EUR 5,148 million in 2019.

The Defense Export share was EUR 2,699 million versus EUR 4,261 million in 2019. This decrease was mainly due to a lower number of Rafale deliveries.

The Defense France share was EUR 564 million versus EUR 887 million in 2019. In accordance with the French Military Procurement Law, 2020 net sales for Defense France do not include any deliveries of the Rafale. However, they do include Rafale support services under the RAVEL contract. For the record, 2019 saw the delivery of developments for the upgrade of the ATL2 combat system and delivery of the first two upgraded aircraft to the French Navy.

Falcon programs

There were 34 Falcon delivered in 2020 (while 30 were guided), versus 40 in 2019. For the record, on February 27, 2020, we published a guidance of 40 Falcon deliveries. After having suspended this guidance on April 1 due to the Covid-19 crisis, on July 23, 2020, we published a new guidance of 30 Falcon deliveries.

Falcon
net sales in 2020 totaled EUR 2,226 million, versus EUR 2,193 million in 2019. Net sales are stable, despite a lower number of deliveries of new aircraft, offset by an increase in the number of pre-owned aircraft delivered.

****

The “book-to-bill ratio” (order intake/net sales) is 0.63 for 2020.

1.3      Backlog

The
consolidated order backlog as of December 31, 2020 was EUR 15,895 million versus EUR 17,798 million as of December 31, 2019. It consisted of:

• the Defense Export backlog, which was EUR 8,249 million versus EUR 10,725 million as of December 31, 2019. This consisted mainly of 34 Rafale, versus 47 Rafale as of December 31, 2019,
• the France Defense backlog, which was EUR 5,499 million, compared to EUR 4,740 million as of December 31, 2019. This included 28 Rafale (as of December 31, 2019), the RAVEL support contract for the Rafale, the OCEAN support contract for the ATL2, the Rafale F4 standard and the first study phases for the NGWS,
• the Falcon backlog (including the Albatros and Archange mission aircraft), which was EUR 2,147 million, compared with EUR 2,333 million as of December 31, 2019. It includes 34 Falcon, versus 53 as of December 31, 2019.

1.4      Adjusted results

Operating income

Adjusted operating income for 2020 was EUR 261 million, compared with EUR 765 million in 2019.

Operating margin was 4.8%, versus 10.4% in 2019. It is directly affected by:

• the financial impacts due to the health crisis (under-used capacity, cost of health measures, decline in activity at Falcon maintenance centers, etc.). The savings associated with the action plans implemented by the Group have cushioned these impacts,
• the significant level of self-financed R&D, representing 9.8% of net sales, compared with 7.2% in 2019. Despite the crisis, we aimed at keeping our current developments going, particularly the Falcon 6X and the future Falcon,
• less absorption of fixed costs due to the 25% drop in net sales.

The foreign exchange hedging rate was 1.18 $/€ in 2020, as in 2019.

Financial income

2020 adjusted financial income was EUR -34 million compared to EUR -52 million in 2019. In 2020, the impact associated with the financing component recorded under long-term military contracts was less significant due to deliveries of the Rafale Export. Financial income for 2020 was also positively impacted by the reduction in financial expenses following the repayment of borrowings in late 2019 and early 2020.

Net income

Adjusted net income for 2020 was down 51% at EUR 396 million, compared with EUR 814 million in 2019. Thales’ contribution to the Group’s net income was EUR 231 million, versus EUR 346 million in 2019.

As a result, adjusted net margin was 7.2% in 2020, as against 11.1% in 2019. This decrease is mainly due to the fall in operating income and the smaller contribution to net income from Thales (4.2% of net sales in 2020, versus 4.7% in 2019).

Net income per share for 2020 was EUR 47.6, compared with EUR 97.9 in 2019.

2.     Financial structure

2.1      Available cash

The Group uses a specific indicator called “Available cash”, which reflects the amount of total cash available to the Group, net of financial debts. It includes the following balance sheet items: cash and cash equivalents, current financial assets (at market value) and financial debt; it excludes lease liabilities recognized following the application of IFRS 16.

The Group’s available cash stands at EUR 3,441 million, EUR 1,144 million less than at December 31, 2019. The decrease is primarily due to the additional working capital requirement (resulting from the reduction in advances and progress payments received under export contracts following deliveries), and to the significant investments made during the period (including the purchase of land and buildings previously leased). These items are partially offset by operating cash flows generated during the year. In 2020, no dividends were paid to shareholders.

2.2      Balance sheet (IFRS Data)

Total equity stood at EUR 4,560 million as of December 31, 2020, versus EUR 4,446 million as of December 31, 2019.

Borrowings and financial debt totaled EUR 270 million as of December 31, 2020, against EUR 558 million as of December 31, 2019. EUR 250 million of bank borrowings were repaid in early 2020. Borrowings and financial debt mostly consist of locked-in employees’ profit-sharing funds, for EUR 123 million, and lease liabilities recognized following the implementation of IFRS 16, for EUR 147 million.

Inventories and work-in-progress rose slightly to EUR 3,382 million as of December 31, 2020, compared with EUR 3,368 million as of December 31, 2019. The increase in Defense France inventories and work-in-progress was offset by the decrease in Defense Export inventories and work-in-progress, following the delivery of services under the Rafale Export contracts and the reduction in pre-owned Falcon inventory.

Advances and progress payments received on orders, net of advances and progress payments paid, fell by EUR 649 million as of December 31, 2020. This was mainly due to the reduction in progress payments following delivery of the Rafale Export during the period.

Derivative financial instruments had a market value of EUR 81 million as of December 31, 2020, compared with EUR -71 million as of December 31, 2019. This increase is essentially due to the change in the US dollar exchange rate between December 31, 2020 and December 31, 2019 (1.2271 $/€ versus 1.1234 $/€).

3.     Dividends and profit-sharing/incentives

The Board of Directors decided to propose to the Annual General Meeting a dividend distribution, in 2021, of EUR12.3 per share, corresponding to a total of EUR 103 million, i.e., a payout of 26%.

For 2020, the Group will pay EUR 85 million in employee profit-sharing and incentives, including 20% correlated social tax, whereas the application of the legal formula would have resulted in a EUR 2 million payment.

4.     SPLIT of the PAR value OF THE SHARE

To align the share value with peers of the industry, to allow a better accessibility to individual investors, and to promote the liquidity of the stock, the Board of Directors decided to submit for the approval of the Annual General Meeting of May 11, 2021 a ten-for-one stock split, reducing the par value of Dassault Aviation shares from EUR 8 to EUR 0.80. This split would occur during the second half of 2021.

This Financial Press Release may contain forward-looking statements which represent objectives and cannot be construed as forecasts regarding the Company’s results or any other performance indicator. The actual results may differ significantly from the forward-looking statements due to various risks and uncertainties, as described in the Directors’ report.

CONTACTS

Corporate Communication

Stéphane Fort – Tel. +33 (0)1 47 11 86 90 – [email protected]

Investor Relations

Armelle Gary – Tel. +33 (0)1 47 11 84 24 – [email protected]

dassault-aviation.com

 

APPENDIX

Definition of alternative performance indicators

To reflect the Group’s actual economic performance, and for monitoring and comparability reasons, the Group presents an adjusted income statement with the following elements:

• gains and losses resulting from the exercise of hedging instruments which do not qualify for hedge accounting under IFRS standards. This income, presented as financial income in the consolidated financial statements, is reclassified as net sales and thus as operating income in the adjusted income statement,
• the valuation of foreign exchange derivatives which do not qualify for hedge accounting, by neutralizing the change in fair value of these instruments (the Group considering that gains or losses on hedging should only impact income as commercial flows occur), with the exception of derivatives allocated to hedge balance-sheet positions whose change in fair value is presented as operating income,
• amortization of assets valued as part of the purchase price allocation (business combinations), known as “PPA”,
• adjustments made by Thales in its financial reporting.

The Group also presents the “available cash” indicator which reflects the amount of the Group’s total liquidities, net of financial debt. It covers the following balance sheet items:

• cash and cash equivalents,
• other current financial assets (essentially available-for-sale marketable securities at their market value),
• financial debt, except for lease liabilities recorded following the application of IFRS 16 “Leases”.

Only consolidated financial statements are audited by statutory auditors. Adjusted financial data are subject to the verification procedures applicable to all information provided in the annual report.

 

Impact of ajustements

The impact in 2020 of adjustments to income statement aggregates is presented below:

(in EUR thousands)	2020 consolidated income statement	Foreign exchange derivatives		PPA	Adjustments applied by Thales		2020 adjusted income statement
		Foreign exchange gain/loss	Change in fair value
Net sales	5,491,592	-873	-1,608			5,489,111
Operating income	246,163	-873	11,488	4,221			260,999
Net financial income/expense	12,216	873	-46,811				-33,722
Share in net income of equity associates	121,282			2,852	111,924		236,058
Income tax	-76,902		9,992	-802			-67,712
Net income	302,759	0	-25,331	6,271	111,924		395,623
Group share of net income	302,759	0	-25,331	6,271	111,924		395,623
Group share of net income per share (in euros)	36.4							47.6

The impact in 2019 of adjustments to income statement aggregates is presented below:

(in EUR thousands)		2019 consolidated income statement		Foreign exchange derivatives		PPA	Adjustments applied by Thales		2019 adjusted income statement
				Foreign exchange gain/loss	Change in fair value
Net sales			7,370,616	-28,520	-1,578			7,340,518
Operating income	796,252			-28,520	-3,272	1,036			765,496
Net financial income/expense	-95,625			28,520	14,858				-52,247
Share in net income of equity associates	258,673					22,228	69,947		350,848
Income tax	-246,578				-3,211	-273			-250,062
Net income	712,722			0	8,375	22,991	69,947		814,035
Group share of net income	712,704			0	8,375	22,991	69,947		814,017
Group share of net income per share (in euros)			85.7						97.9

 

 

 

 

 

Attachment

• Dassault Aviation Financial Release – Full year results 2020

VANCOUVER, British Columbia, March 05, 2021 (GLOBE NEWSWIRE) — BC Craft Supply Co. Ltd. (the “Company” or “BC Craft”) (CSE: CRFT) (OTC:CRFTF) (FSE:ZZD1) announces that further to the news release issued on January 18, 2021, it has entered into a definitive agreement dated March 4, 2021 (the “Definitive Agreement”), to acquire 100% of the issued and outstanding shares of Ava Pathways Inc. (“Ava Pathways”), from arm’s length parties (the “Acquisition”).

Based in Vancouver, BC, Ava Pathways is an innovative company that is exploring the therapeutic scientific benefits of proprietary formulations, using compounds from mushrooms. Ava Pathways was founded by scientists and researchers focused on neuroplasticity and alternative ways to treat common and debilitating medical conditions such as depression, anxiety, PTSD, and substance use disorder, through the use of psychedelic-based treatments. Similar to craft cannabis, both plant-based treatments require a cultivation supply network to create proprietary strains that produce optimal results for the patient or end-user. Ava Pathways brings exceptional access to tested and standardized naturally-derived and synthetic materials which allows for the production of superior psychoactive and non-psychoactive formulations.

Terms of the Acquisition

Under the terms the Definitive Agreement, BC Craft has acquired all of the ownership interests in Ava Pathways, and Ava Pathways has become a wholly owned subsidiary of BC Craft. As consideration, BC Craft has issued 41,000,000 units (“Units”) of the Company to the shareholders of Ava Pathways on a pro-rata basis, issued at a deemed value of $0.105 per Unit. Each Unit is comprised of one common share (each a “Share”) and one transferable common share purchase warrant (each a “Warrant”) that is exercisable to acquire one additional Share at a price of $0.14 for a period of two years. The Company relied on the take-over bid exemption under Section 2.16 of National Instrument 45-106 – Prospectus Exemptions to issue the Units. In this regard, the Units are not subject to a four month and one day hold period.

Matthew Watters, CEO of BC Craft, stated, “We are thrilled to announce the closing of the Acquisition and look forward to integrating Ava Pathways’ team into a newly formed psychedelic division within BC Craft that will focus on research and development, clinical trials, and product formulation using psilocybin, the active compound found in psychedelic mushrooms. We are elated that BC Craft will explore innovative opportunities to commercialize its psychedelic assets as the legal framework evolves and enthusiastic to be at the forefront of an industry with the potential to benefit millions of people worldwide.”

For further information please contact Matthew Watters, Director, at (604) 687-2038.

About BC Craft Supply Co. Ltd.

Based in Vancouver, British Columbia, BC Craft Supply Co. has aggregated the best legacy-era talent from Canada’s craft cannabis industry, which boasts an international reputation. The team at BC Craft supports the most trusted cannabis cultivators in Canada to transition into their supply chain, bringing with them their unique cultivars and years of experience with the plant. In exchange for support with licensing, compliance and distribution, cultivators will sign on as a BC Craft supplier. This makes BC Craft uniquely positioned to be the premium cannabis brand in Canada.

BC Craft’s subsidiary, Medcann Health Products Ltd., is a Health Canada licensed cultivator and processor with a license to sell medical cannabis products in Canada.

Click here to connect with BC Craft Supply Co. on Instagram, Twitter, LinkedIn and Facebook, and click here to find more information on the Company.

CONTACT

Matthew Watters, Director
Phone: 604-687-2038
Email: [email protected]

Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this press release, which has been prepared by management.

Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this press release, which has been prepared by management.

This news release includes certain “forward-looking statements” under applicable Canadian securities legislation. Forward-looking information in this press release includes statements relating to Ava Pathways ability to provide access to tested and standardized naturally-derived and synthetic materials for the production of superior psychoactive and non-psychoactive formulations and the emerging psychedelic space becoming legal and social acceptable from the broader population. Although the Company believes that the material factors, expectations and assumptions expressed in such forward- looking statements are reasonable based on information available to it on the date such statements were made, no assurances can be given as to future results, levels of activity and achievements and such statements are not guarantees of future performance.

Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The forward-looking information contained in this release is expressly qualified by the foregoing cautionary statements and is made as of the date of this release. Accordingly, readers should not place undue reliance on forward-looking statements. BC Craft disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

DUBLIN, Ireland, March 05, 2021 (GLOBE NEWSWIRE) — Fusion Fuel Green PLC (NASDAQ: HTOO), a green hydrogen technology company, is pleased to announce that it has signed an MoU with BGR Energy Systems Limited (NSE: BGRENERGY), one of India’s leading EPC companies, to develop green hydrogen projects in India. The companies intend to establish an initial demonstrator plant in India in 2021 and thereafter develop larger-scale projects in the region for the supply of hydrogen for the production of green ammonia and bio-ethanol, and as a feedstock for other heavy industrial applications.

Fusion Fuel will install a small demonstrator facility for BGR Energy in the region of Cuddalore, Tamil Nadu, India in the second half of 2021 using its market-leading HEVO-SOLAR technology to generate cost-competitive green hydrogen. The companies will then co-develop projects throughout India, leveraging BGR Energy’s extensive client network and existing commercial footprint. The companies will also explore broader areas of potential cooperation given BGR Energy’s broad competencies in the energy, environmental and industrial sectors.

Since its inception, BGR Energy has developed more than 12,000 MW of power plants and Balance of Plant related services in India, and it also has substantial capabilities in the design and manufacture of high-tech equipment, which leaves BGR well-positioned to take the lead in developing green hydrogen production infrastructure in the region.

Hydrogen already plays a critical role in the Indian economy, with roughly 6 million tons of hydrogen consumed annually, primarily in the production of ammonia and methanol, as well as for use in refineries. A recent study from The Energy and Resources Institute estimated that demand could grow to as much as 28 million tons by 2050. Virtually all the hydrogen consumed in India today is grey hydrogen, the production of which emits roughly 9 tons of CO₂ per ton of hydrogen. Enabling cost-effective domestic production of green hydrogen will be critical to reduce the carbon intensity of heavy industry and help India achieve its energy security and emissions targets.

João Wahnon, Fusion Fuel’s Head of Business Development, noted, “We are excited to open up this new market for Fusion Fuel and develop India as a leader of the global hydrogen economy. We could not ask for a better partner in this undertaking than BGR Energy, with its extensive experience developing turnkey solutions in India’s power and industrial sector.”

Arjun Govind Raghupathy, Managing Director of BGR Energy commented, “BGR Energy has long been an innovator in India’s energy and industrial sectors, and we are excited now to be taking these steps to establish a foothold in the burgeoning green hydrogen industry. We look forward to working with Fusion Fuel to scale the development of local green hydrogen production and play a leading role in creating a green hydrogen ecosystem in the region.”

About Fusion Fuel Green plc.

Fusion Fuel Green plc. is an emerging leader in the green hydrogen space, committed to accelerating the energy transition and decarbonizing the global energy system by making zero-emissions green hydrogen commercially viable and accessible. Fusion Fuel has created a revolutionary proprietary electrolyzer solution that allows it to produce hydrogen at highly competitive costs using renewable energy, resulting in zero-carbon emissions. Fusion Fuel’s business lines include the sale of electrolyzer technology to customers interested in building their own green hydrogen capacity, the development of hydrogen plants to be owned and operated by Fusion Fuel and active management of the portfolio of such hydrogen plants as assets, and the sale of green hydrogen as a commodity to end-users through long-term hydrogen purchase agreements. For more information, please visit https://www.fusion-fuel.eu/.

About BGR Energy Systems Limited

BGR Energy Systems Limited is an Indian public limited company incorporated under the provisions of the Companies Act, 1956. Its equity shares are listed on Bombay Stock Exchange (‘BSE’) and National Stock Exchange (‘NSE’). The Company is a manufacturer of capital equipment for Power Plants, Petrochemical Industries, Water Treatment & Desalination Plants, Refineries, Process Industries and undertakes turnkey Balance of Plant (‘BOP’) and Engineering Procurement and Construction (‘EPC’) contracts. The Company has been achieving its objectives through its five business units: Power projects, Electrical projects, Oil and Gas equipment, Environmental engineering and Air Fin Coolers. For more information, please visit http://www.bgrcorp.com.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “could,” “target,” “potential,” “is likely,” “will,” “expect” and similar expressions, as they relate to us, are intended to identify forward-looking statements. The Company has based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Some or all of the results anticipated by these forward-looking statements may not be achieved. Further information on the Company’s risk factors is contained in our filings with the SEC. Any forward-looking statement made by us herein speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

Investor Relations Contact

[email protected]