Slide 1: Fourth quarter and full year 2023 results presentation
Fourth quarter and full year 2023 results presentation 28 February 2024
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. Q4 2023 highlights 3. Commercial developments 4. Strategy update 5. Summary 6. Q&A 3
Slide 4: 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 >140 Nor
Slide 5: 2. Q4 2023 highlights
2. Q4 2023 highlights nel:
Slide 6: Quarterly highlights
Q4 2023 Quarterly highlights Financial results and financing Key developments in Q4 2023 Revenues and income • One containerized PEM order signed NOK 534 million • Received a cancellation from HyCC • Received a significantly reduced notice of fines related to the Kjørbo incident EBITDA Sale of Everf
Slide 7: Group Financials
Q4 2023 Group Financials Q4 2023 Q4 2022 FY 2023 FY 2022 • Financial performance in Q4’23 and 2023 in general represents a (NOK million) Total revenue and income 534 414 1 773 994 significant improvement vs. 2022 EBITDA -106 -216 -474 -780 • Strong revenue growth and better execution translated into
Slide 8: ~80% revenue growth (NOK ~800m)
~50 pp ~80% revenue NOK ~3.4 bn in EBITDA margin growth cash reserves improvement (NOK ~800m) entering 2024 (NOK ~300m) 8
Slide 9: Segment Financials – Electrolyser division
Q4 2023 Segment Financials – Electrolyser division Electrolyser division (NOK million) • 91% YoY growth in 2023 1,427 • NOK 145m YoY EBITDA REVENUES improvement in 2023 • -3% EBITDA margin in AWE 749 466 • -24% EBITDA margin in PEM 299 327 338 • 2023 EBITDA was impacted by 2018 2019 2020 2021 2022 2
Slide 10: Segment Financials – Fueling division
Q4 2023 Segment Financials – Fueling division Fueling division (NOK million) • 41% YoY growth in 2023 • NOK 150m YoY EBITDA REVENUES 346 improvement in 2023 314 332 242 245 • Reduced warranty and 191 quality cost • Leaner organisation • Improved margins on delivered 2018 2019 2020 2021 2022 2023 sys
Slide 11: 3. Commercial developments
3. Commercial developments 11
Slide 12: Order intake and backlog
COMMERCIAL DEVELOPMENTS Order intake and backlog ORDER INTAKE ORDER BACKLOG (NOK million) (NOK million) 982 2 913 2 965 1 000 3 000 2 854 2 613 900 2 458 775 2 500 800 2 103 700 580 2 000 600 1 439 500 418 428 1 500 1 230 1 289 400 352 1 014 283 1 000 300 236 183 200 139 500 100 0 0 Q3 Q4 Q1 Q2 Q3 Q
Slide 13: Expected follow-up orders on signed contracts
COMMERCIAL DEVELOPMENTS Expected follow-up orders on signed contracts • About 400 MW of current backlog is related to “stack only” purchase orders • Nel will also deliver balance of stack equipment, not included in the order backlog for these orders • The expected follow-up orders for stack only con
Slide 14: Sales pipeline development
COMMERCIAL DEVELOPMENTS Sales pipeline development • The top 20 sales leads have an average size of about 450 MW and a median of about 200 MW • Sales pipeline examples: – Ongoing paid FEED study with Samsung Engineering for a GW system in Asia – Ongoing paid FEED study with undisclosed customer for
Slide 15: 10 MW order from Samsung C&T
COMMERCIAL DEVELOPMENTS - S U BSEQUENT 10 MW order from Samsung C&T • Client: Samsung C&T • Size: 10 MW • Value: EUR ~5 million • Location: South Korea • This is the clients first off-grid green hydrogen production project • Samsung C&T will do the EPC work internally • Samsung C&T has a significant
Slide 16: Renewed relationship with Nikola
COMMERCIAL DEVELOPMENTS - S U BSEQUENT Renewed relationship with Nikola • Cancelled the old supply agreement from 2018 • Will enter into a new supply agreement for 110 stacks (275MW) • Not a firm order, and thus not in the order backlog • Aligned with Nel’s preferred scope of supply (Stacks + BoS) •
Slide 17: Partnering up with Fortescue on its Phoenix Hydrogen Hub
COMMERCIAL DEVELOPMENTS - S U BSEQUENT Partnering up with Fortescue on its Phoenix Hydrogen Hub • Client: Fortescue • Scope: • BoS equipment for a 80 MW electrolyser system • Updated warrantees and guarantees for already delivered stacks • Value: USD 11 million • Fortescue have taken over Phoenix Hy
Slide 18: 4. Strategy update
-. Strategy update nel:
Slide 19: Nel's electrolyser strategy
S TRATEGY U PDATE Nel’s electrolyser strategy Nel aims to capture >20% of the market outside China by: • Targeting large-scale projects and rapidly scaling manufacturing capacity in line with market demand (BIGGER) • Offering the best technology at a competitive and market enabling price (BETTER) •
Slide 20: BIGGER
S TRATEGY U PDATE 2023 at a glance: Electrolyser division BIGGER • Production output more than doubled driven by yield improvements and line optimizations • Expansion in Norway on track with 1 GW AWE production capacity from Q2 2024 • US expansion on track with 500 MW PEM production capacity from 20
Slide 21: BETTER
S TRATEGY U PDATE 2023 at a glance: Electrolyser division BETTER • Product cost reduced and efficiency increased of atmospheric AWE electrolysers • Next-generation pressurized AWE solution progressed according to plan with very promising test results from Norway • Feasibility of super-aggressive nex
Slide 22: FOCUSED
S TRATEGY U PDATE 2023 at a glance: Electrolyser division FOCUSED • All contracts signed after summer of 2022 now aligned with Nel’s preferred scope of supply: stack + balance of stack • Partnership agreements signed with leading EPC companies to ensure global delivery capabilities for balance of pl
Slide 23: Nel's Fueling strategy
S TRATEGY U PDATE Nel’s Fueling strategy Nel aims to capture >15% of the high- capacity HRS market outside China by: • Offering a station concept tailored to the needs of heavy-duty vehicles (BIGGER) • Capitalizing on insights derived from the light- duty market to standardize products and derisk th
Slide 24: BIGGER
S TRATEGY U PDATE 2023 at a glance: Fueling division BIGGER • Development of high-capacity station for heavy duty transportation initiated • Very positive market/customer feedback on design approach and targeted performance metrics • Product expected to be commercialised in 2025 (combination of exis
Slide 25: BETTER
S TRATEGY U PDATE 2023 at a glance: Fueling division BETTER • Increased uptime for station modules installed in the field (despite more fillings) • Significant reduction in warranty/quality cost per station during the year across all key product platforms 25
Slide 26: FOCUSED
S TRATEGY U PDATE 2023 at a glance: Fueling division FOCUSED • Old products phased out and existing products further standardized • Decision to develop compression, cooling, and control system in-house and source remaining parts externally • Development agreement signed with world- leading company f
Slide 27: On the note of becoming more «FOCUSED»…
On the note of becoming more «FOCUSED»… 27
Slide 28: Exploring a spin-off and separate listing of the Fueling division
CORPORATE DEV ELOPMENT Exploring a spin-off and separate listing of the Fueling division • There are few synergies between the Electrolyser and Fueling divisions • With reference to the Q4’22 report, Nel has for some time considered strategic actions for its Fueling division Electrolyser Fueling • C
Slide 29: The potential new Fueling Co.
CORPORATE DEV ELOPMENT The potential new Fueling Co. • A pure-play hydrogen fueling technology company with ~250 employees • Headquartered in Herning, Denmark, and listed on the Oslo Stock Exchange • Full attention from a new and dedicated Board, the management team, and the organization • A more ta
Slide 30: The potential new Nel ASA
CORPORATE DEV ELOPMENT SETT INN BILDER FRA NOEN The potential new Nel ASA AV DE KULE ANLEGGENE VÅRE! • A lean, 100% focused electrolyser technology company with ~425 employees • Uniquely positioned as a market leader in the only two commercially proven technologies • Products proven in the field for
Slide 31: 5. Summary
5. Summary nel:
Slide 32: 2023 in review
2023 in review ~30% YoY revenue increase in Q4, NOK 87m YoY EBITDA improvement in Q4, NOK 3.4bn in cash reserves entering 2024, ~80% growth for the full year NOK ~300m for the full year no near-term need to raise additional cash Production output more than doubled, Substantial cost and efficiency im
Slide 33: number one by nature.
number one by nature.