Slide 1: Q4 2020
Q4 2020 Jon André Løkke, CEO 18 February, 2021
Slide 2: Forward-looking information
Forward-looking information This Presentation includes and is based, inter alia, on forward-looking Although Nel ASA believes that its expectations and the Presentation information and statements relating to the business, financial are based upon reasonable assumptions, it can give no assurance perf
Slide 3: Agenda
Agenda 1. Q4 highlights 2. Financial review 3. Nel in brief 4. Key technology developments 5. Other developments of the quarter 6. ESG 7. Summary/Outlook 8. Q&A
Slide 4: Highlights
Q4 2020 Highlights Financial results and financing Operations and sales Revenues • PO for 1 H2StationTM by Everfuel, value EUR 1.6 million NOK 229.1 million • PO for 2 H2StationTM units by ZE PAK, value EUR 3.2 million Up 30% from NOK 175.9 million in Q4 2019 • PO for 1.25 MW PEM electrolyser, value
Slide 5: Financial review
TWO Financial review s — nel-
Slide 6: Year-end/Q4 EBITDA
F INANCIAL REV IEW Year-end/Q4 EBITDA • Nel is no longer reporting adjusted EBITDA separately, will be part of overall explanation • Incl. provision for possible NOK 20 million fine in connection with Kjørbo, notice received February 16th • EBITDA negatively impacted by preparations and investments
Slide 7: Financial highlights
F INANCIAL REV IEW Financial highlights (NOK million) 2020 Q4 2019 Q4 2020 2019 2018 Operating revenue 229.1 175.9 651.9 569.7 489.0 Total operating expenses 368.4 238.3 1,066.4 823.3 685.1 EBITDA* -96.2 -41.7 -251.5 -178.1 -131.6 EBIT* -139.3 -62.4 -414.5 -253.6 -196.1 Pre-tax income (loss)** 1,285
Slide 8: Solid backlog
F INANCIAL REV IEW Solid backlog Order backlog by quarter Solid order backlog NOK million • Backlog increased sequentially by ~4.5% in Q4’20 – quarterly fluctuations 1000 to be expected • >90% growth YoY 800 • Strong pipeline across segments and industries 600 400 200 0 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19
Slide 9: Nel in brief
THREE Nel in brief nel
Slide 10: Leading pure play hydrogen technology company with a global footprint
NEL IN BRIEF Leading pure play hydrogen technology company with a global footprint Pure play hydrogen Manufacturing facilities in World’s largest electrolyser Leading manufacturer of technology company listed on Norway, Denmark, and U.S., manufacturer, with >3,500 hydrogen fueling stations, Oslo Sto
Slide 11: The front runner within hydrogen technologies
NEL IN BRIEF The front runner within hydrogen technologies Alkaline and PEM electrolysers Compact hydrogen fueling station Converting water and electricity to hydrogen and oxygen World’s most compact fueling stations, capable of fueling – for industry, mobility, and energy purposes any kind of vehic
Slide 12: Strong field know-how and manufacturing capacity
NEL IN BRIEF Strong field know-how and manufacturing capacity PEM electrolysers Alkaline electrolysers Hydrogen refueling stations Wallingford, USA Notodden/Herøya, Norway Herning, Denmark Systems delivered: 2,700+ Systems delivered: 800+ Stations delivered: 110+ Production capacity: >50 MW/year Pro
Slide 13: Key technology developments
FOUR Key technology developments 13
Slide 14: Scaling up for future large-capacity opportunities
KEY TECHNOLOGY DEVELOPMENTS Scaling up for future large-capacity opportunities • 5 times scale-up of advanced, patented electrolyser cell stack design • 1.25 MW input power • Capacity to make more than 500 kg H2 per day • Based on Nel’s unique competence and experience to design and 5x manufacture d
Slide 15: MC250 and MC500 – new containerized large-scale PEM electrolysers
KEY TECHNOLOGY DEVELOPMENTS MC250 and MC500 – new containerized large-scale PEM electrolysers Nel Hydrogen Electrolyser launched two new containerized large-scale PEM electrolysers • Automated MW-class on-site hydrogen generators • Utilizes a modular containerized design for ease of installation and
Slide 16: New PEM electrolyser launched including new stack
KEY TECHNOLOGY DEVELOPMENTS New PEM electrolyser launched including new stack Large-scale PEM 20 MW plant layout 35 m x 15 m 16
Slide 17: Nel green hydrogen cost target by 2025
KEY TECHNOLOGY DEVELOPMENTS 1.5 $/kg Nel green hydrogen cost target by 2025 Assumptions: Nel analysis based on electricity of 20 $/MWh, >8% cost of capital, cost of land, civil works, installation, commissioning, building water etc., lifetime 20 years incl. O&M cost, at 30 bar Based on large scale (
Slide 18: Capacity expansion at Herøya
ELECTRODE PRODUCTION AT HERØYA Capacity expansion at Herøya Fully automated and designed according to lean manufacturing and industry 4.0 principles Industrial scale production of most efficient electrolysers in the market, at a game-changing cost Large scale production line improvements identified,
Slide 19: Production line 1 – fully automated
ELECTRODE PRODUCTION AT HERØYA Production line 1 – fully automated Digital twin developed to improve start-up process and further developments 19
Slide 20: Other key developments of the quarter
FIVE Other key developments of the quarter 20
Slide 21: Close cooperation: Everfuel and Nel
KEY DEV ELOPMENTS Close cooperation: Everfuel and Nel Purchase order for hydrogen fueling station for buses • Value in excess of around EUR 1.6 million • Latest generation H2Station™ module to be used for fueling of buses in the Netherlands • To be installed during 2021 Agreement to further developm
Slide 22: Solid Everfuel development following IPO
KEY DEV ELOPMENTS Solid Everfuel development following IPO Strong Everfuel development on Euronext Growth • Everfuel A/S, a Nel minority owned company listed on Euronext Growth October 29 • Raised NOK 290 million in conjunction with the listing • Nel participated with NOK ~9 million, leading to an o
Slide 23: First H2Station order in Poland
KEY DEV ELOPMENTS First H2StationTM order in Poland Purchase order for two H2StationTM solutions for cars and buses • Value of around EUR 3.2 million • Latest generation H2Station™ module to be used for fueling of cars and buses in Poland • To be installed during 2021 23
Slide 24: Purchase order for a 1.25 MW PEM electrolyser from NREL (MC 250)
KEY DEV ELOPMENTS Purchase order for a 1.25 MW PEM electrolyser from NREL (MC 250) Containerized 1.25 MW Proton PEM® electrolyser National Renewable Energy Laboratory (NREL) • For installation in the ARIES research initiative at the NREL campus in Boulder, CO • Collaboration by providing an advanced
Slide 25: Purchase order for a 1.5 MW PEM electrolyser in the US (M 300)
KEY DEV ELOPMENTS Purchase order for a 1.5 MW PEM electrolyser in the US (M 300) Containerized 1.5 MW Proton PEM® electrolyser from a large industrial client in the US • Value of around USD 2.7 million • Scheduled to be installed during 2021 Source: PEM M-series electrolyser from Nel Nel ASA Q2 2020
Slide 26: PEM electrolyser cell stacks to submarines >USD 10 million in 2020
KEY DEV ELOPMENTS PEM electrolyser cell stacks to submarines >USD 10 million in 2020 Purchase order for cell stacks for oxygen production • Nel Hydrogen received purchase order for PEM electrolyser cell stacks from United Technologies' Collins Aerospace Division • USD ~5 million contract value • Wil
Slide 27: Signed letter of intent with Statkraft for green hydrogen project in Norway
KEY DEV ELOPMENTS Signed letter of intent (LoI) with Statkraft for green hydrogen project in Norway Up to 50 MW electrolysis to support fossil free recycling steel production • Statkraft, the largest renewable energy company in Europe partnered up with Celsa Armeringsstål (Celsa), a leading steel pr
Slide 28: Signed an agreement with Iberdrola for a 20 MW green fertilizer project in Spain
KEY DEV ELOPMENTS Signed an agreement with Iberdrola for a 20 MW green fertilizer project in Spain To deliver 20 MW PEM electrolyser solution to Iberdrola • Iberdrola, one of the largest electricity utilities in the world, has together with world-leading fertilizer manufacturer Fertiberia launched a
Slide 29: ESG & 2021 priorities
SIX ESG & 2021 priorities 29
Slide 30: Empowering generations with clean energy
ES G Sustainability at the core VISION Empowering generations with clean energy NOW Setting the stage ESG report 2020 forever In accordance with GRI Standards, for sustainability supplemented by considerations reporting found in TCFD and Euronext, focusing on four of UN’s SDG 30 More information on
Slide 31: Positive outlook for Nel's integration of sustainability
ESG Positive outlook for Nel’s integration of sustainability EU Taxonomy • New EU classification system for sustainable activities enabling scale up of sustainable investments • To be used for certifications and funding • Nel’s business activities are covered by the EU Taxonomy – positive outlook fo
Slide 32: Significant 2021 investments to accommodate scalable multi-billion NOK revenue capacity
S U MMARY & OU TLOOK Significant 2021 investments to accommodate scalable multi-billion NOK revenue capacity Accelerating investments in organization, Continuing development investments in Key markets show strong momentum with technology, and partnerships to maintain alkaline and PEM technologies, a
Slide 33: Summary
SEVEN Summary - nel
Slide 34: Merch store
ME oro Sort by vt Nnberof products] 24 © Nel Start Kit Eva Solo Thermo Mug Thorn Thermo Mug Face Masks 5-Pack Sports Towel Hoodie - Full Zip T-Shirt Dinosaurs - Men T-Shirt Dinosaurs - Ladies Sports towel 100 cot sustainable t-shirt with sl eck Setch fabric. side NOK 65 NOK 650 NOK 210 NOK 210 ”
Slide 35: Our official merch store is now live!
Our official merch store is now live!
Slide 36: 2025: the global leader within hydrogen technologies
S U MMARY & OU TLOOK 2025: the global leader within hydrogen technologies Global presence World-class safety Strong financing Scalability & Cost leadership Preferred partner Technology front-runner 36
Slide 37: Thanks for the ride, dinosaurs. We'll take it from here!
Thanks for the ride, dinosaurs. We’ll take it from here! 37
Slide 38: Q&A
EIGHT Q&A 38
Slide 39: number one by nature
number one by nature