Slide 1: Second quarter 2023 results presentation
Second quarter 2023 results presentation 18 July 2023
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, estimates and projections information and statements relating to the business, financial performance are based upon reasonable assumptions, it can give
Slide 3: Agenda
Agenda 1. Nel in brief 2. Q2 2023 highlights 3. Commercial developments 4. Summary 5. Q&A 3
Slide 4: This is Nel
This is Nel Leading pure play hydrogen technology company with a global presence, specializing in electrolyser technology and hydrogen fueling equipment We unlock the potential of renewables and enable global decarbonization 4
Slide 5: Leading pure play hydrogen technology company with a global footprint
NEL IN BRIEF Leading pure play hydrogen technology company with a global footprint Listed on the Oslo Stock Exchange Leading electrolyser manufacturer, Leading manufacturer of Manufacturing facilities in (NEL.OSE) since 2014 with >3 500 units delivered in 80+ hydrogen fueling stations, with >120 Nor
Slide 6: 2. Q2 2023 highlights
2. Q2 2023 highlights nel:
Slide 7: Q2 2023 Highlights
Q2 2023 Highlights Financial results and financing Key developments in Q2 2023 Revenues and income • Completed US site selection process, selected Michigan for the next Gigafactory NOK 475 million • USD 24 million contract for 16 fueling stations in California, US EBITDA NOK -138 million Subsequent
Slide 8: Financial highlights
Q2 2023 Financial highlights NOK million Q2 2023 Q2 2022 YTD 2023 YTD 2022 Revenue and income 475 183 834 396 EBITDA -138 -197 -258 -350 EBITDA margin -29% -108% -31% -88% EBIT -194 -241 -368 -428 Pre-tax income (loss) -345 -277 -539 -195 Net income (loss) -342 -275 -535 -191 Net cash flow from oper
Slide 9: Segment Financials
Q2 2023 Segment Financials Electrolyser division Q2 Q2 Change YTD’23 YTD’22 Change Fueling division Q2 Q2 Change YTD’23 YTD’22 Change (NOK million) 2023 2022 (NOK million) 2023 2022 Revenue and income 391 129 202% 669 289 132% Revenue and income 84 54 56% 165 108 53% EBITDA -47 -83 -81 -143 EBITDA -
Slide 10: Order intake and backlog
Q2 2023 Order intake and backlog Order intake Order backlog NOK million 982 NOK million 2 965 2 913 1 000 3 000 2 613 900 775 2 500 800 2 103 700 580 2 000 600 1 439 500 418 428 1 500 1 230 1 289 400 1 085 1 078 1 014 263 283 1 000 300 236 200 147 139 500 100 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2
Slide 11: 3. Commercial developments
3. Commercial developments 11
Slide 12: Capacity expansion plans in progress
COMMERCIAL DEVELOPMENTS Capacity expansion plans in progress Construction of Line 2 at Herøya Construction of a 500 MW to be completed April 2024 PEM line to be completed by (potentially up to 2 GW) 2025 Planning to build the next Prepare for new gigafactory in Michigan, US GW site (up to 4 GW). No
Slide 13: Record size fueling contract signed
COMMERCIAL DEVELOPMENTS Record size fueling contract signed • Client: Undisclosed US energy company • Size: 16 fueling modules • Value: USD 24 million, including the already announced USD 7 million capacity reservation fee • Fueling stations to be deployed in California, US • Improved risk profile a
Slide 14: Two containerized PEM solutions (M-series) sold
COMMERCIAL DEVELOPMENTS Two containerized PEM solutions (M-series) sold • Total order intake in Q2’23 more than USD 7 million from these two contracts • Demand for smaller units appears to pick up especially in the US • Full scope electrolyser setup • modular concept • quick to market • easy install
Slide 15: Contract for 20 MW of electrolyser equipment in France
COMMERCIAL DEVELOPMENTS - S U BSEQUENT Contract for 20 MW of electrolyser equipment in France • Client: Hyd’Occ • Size: 20 MW • Value: EUR 9 million • The French renewable energy producer, Qair, is the main shareholder. The local government, is also an owner • Will supply renewable hydrogen to local
Slide 16: Contract for 40 MW of electrolyser equipment in Portugal
COMMERCIAL DEVELOPMENTS - S U BSEQUENT Contract for 40 MW of electrolyser equipment in Portugal • Client: Bondalti • Size: 40 MW • Value: EUR 11 million • Bondalti is the largest company in the Portuguese chemical industry • The electrolyser will cater for the client’s own hydrogen demand for chemic
Slide 17: Receives additional funding for accelerating advanced PEM electrolyser stack development
COMMERCIAL DEVELOPMENTS - S U BSEQUENT Receives additional funding for accelerating advanced PEM electrolyser stack development • Funding from: US DoD, ERDC- CERL • Amount: USD 5.6 million • Aim to accelerate PEM electrolyser development to reduce operating and capital costs • More than USD 11 milli
Slide 18: Continuing to take industry leadership positions
COMMERCIAL DEVELOPMENTS - S U BSEQUENT Continuing to take industry leadership positions • Olivia Breese, CEO Power-2-X Ørsted, will take the position as Chair, and Håkon Volldal, CEO of Nel, as Vice-Chair • While progress has been made in establishing a predictable European legislative framework, ac
Slide 19: 4. Summary
«. Summary nel:
Slide 20: Larger projects take longer time to mature
S U MMARY AND OU TLOOK Larger projects take longer time to mature • Smaller products are becoming more standardised and faster to market • Large-scale projects have higher complexity • Infrastructure • Technology mix • Off-take agreements • Financing/funding • Increased overall risk for the project
Slide 21: Well positioned for large-scale market leadership
S U MMARY AND OU TLOOK Well positioned for large-scale market leadership With increased size, complexity and risk, the need for competence and experience increases accordingly Nel’s value proposition: • Unrivalled track record - Decades of experience - Large installed base • Technology leadership -
Slide 22: Second quarter 2023 summary
Second quarter 2023 summary Significant revenue growth and Record size fueling contract signed Line two at Herøya on track → 1 GW positive margin development during the quarter, electrolyser Wallingford expansion on track → 500 MW order intake up 25% y/y Concluded on Michigan for the US Gigafactory
Slide 23: number one by nature
number one by nature.