Slide 1: Q2 2021
Q2 2021 Jon André Løkke, CEO 19 August 2021
Slide 2: Forward-looking information
Forward-looking information This Presentation includes and is based, inter alia, on forward- Although Nel ASA believes that its expectations, estimates and looking information and statements relating to the business, projections are based upon reasonable assumptions, it can give no financial perform
Slide 3: Agenda
Agenda • Nel in brief • Q2 highlights & financial review • Herøya capacity expansion • Key developments • Hydrogen developments in Europe • Summary / Outlook • Q&A 3
Slide 4: Leading pure play hydrogen technology company with a global footprint
THIS IS NEL 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 Stoc
Slide 5: Strong field know-how and manufacturing capacity
THIS IS NEL 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 Prod
Slide 6: Nel is the largest electrolyser manufacturer worldwide
THIS IS NEL Nel is the largest electrolyser manufacturer worldwide The world’s largest electrolyser manufacturers Ranked by 2020 revenues Nel electrolyser Company 2 Company 3 Company 4 Company 5 Company 6 Company 7 Source: Company websites, 2020 annual reports, estimates and market intelligence
Slide 7: Q2 highlights & financial review
Q2 highlights & financial review 7
Slide 8: Highlights
Q2 2021 Highlights Key developments • PO from HTEC for one H2StationTM hydrogen fueling station to operate in Financial results and financing Quebec, Canada Revenues • Frame agreements with EPC companies Wood and Aibel to develop and NOK 164 million execute large scale, complex hydrogen projects Up
Slide 9: Financial highlights
Q2 2021 Financial highlights (NOK million) 2021 Q2 2020 Q2 2020 2019 2018 Operating revenue 163.7 148.6 651.9 569.7 489.0 Total operating expenses 312.8 220.6 1 066.4 823.3 685.1 EBITDA -120.3 -48.7 -251.5 -178.1 -131.6 EBIT -149.1 -72.0 -414.5 -253.6 -196.1 Pre-tax income (loss)* -314.1 596.3 1 245
Slide 10: Negative effect on Q2 EBITDA & earnings
Q2 2021 Negative effect on Q2 EBITDA & earnings • EBITDA significantly impacted by preparations and investments for the future: • Projects are getting larger, continue to recruit to be able to deliver on what is coming • Across the entire organization; in particular, within project execution • Ramp-
Slide 11: Solid backlog
Q2 2021 Solid backlog Order backlog by quarter Solid order backlog NOK million 1000 • Backlog flat from last quarter, up slightly vs. Q2 2020 800 • Strong pipeline across segments and industries 600 • Order intake is expected to vary 400 between quarters as order size increases 200 0 Q2'19 Q3'19 Q4'
Slide 12: Herøya capacity expansion
Herøya capacity expansion 12
Slide 13: Nel green hydrogen cost target of $1.50/kg by 2025
HERØYA CAPACITY EXPANSION $1.50/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 13
Slide 14: Game-changing expansion at Herøya on track
HERØYA CAPACITY EXPANSION Game-changing expansion at Herøya on track 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, name plate cap
Slide 15: Capacity expansion – on time and on budget
HERØYA CAPACITY EXPANSION Capacity expansion – on time and on budget Production start and ramp-up on time for Q3: • 45.000 manhours completed • HSE: Zero Total Recordable Incidents (TRI) • Installation completed to plan • Factory Acceptance Tests (FAT) completed to plan • Operations team on schedule
Slide 16: Herøya expansion on track – virtual tour
HERØYA CAPACITY EXPANSION Herøya expansion on track – virtual tour 16
Slide 17: Key developments
Key developments nel:
Slide 18: Purchase order for 2 MW PEM electrolyser from H2 Energy
KEY DEV ELOPMENTS Purchase order for 2 MW PEM electrolyser from H2 Energy • Nel received PO for a 2 MW fully containerized MC400 electrolyser from H2Energy • The electrolyser is the second system to be delivered as part of the green hydrogen infrastructure network that is supplying hydrogen to the f
Slide 19: Purchase order for 1.25MW containerized PEM electrolyser in the US
KEY DEV ELOPMENTS Purchase order for 1.25MW containerized PEM • Nel received PO order for electrolyser in the US 1.25MW containerized electrolyser to be installed at a nuclear power plant in the US • The MC250 will be the first PEM electrolyser at a nuclear plant in the US configured for dynamic dis
Slide 20: Partnership with SFC Energy for integrated electrolyser and H2 fuel cell systems
KEY DEV ELOPMENTS Partnership with SFC Energy for integrated electrolyser and H2 fuel cell systems • Integrated electrolyser and fuel cell systems for decentralized energy generation and storage, based on mature, proven technology from Nel and SFC Energy • Significant contribution to emission reduct
Slide 21: Partnerships with major EPC companies Aibel and Wood
KEY DEV ELOPMENTS Partnerships with major EPC companies Aibel and Wood to strengthen Nel’s global delivery and project execution capabilities • Long-term framework agreements to jointly develop and deliver large scale, renewable hydrogen projects • Strengthen Nel’s global delivery capability and pro
Slide 22: Collaboration with First Solar to develop integrated PV-hydrogen power plants
KEY DEV ELOPMENTS Collaboration with First Solar to develop integrated PV-hydrogen power plants • Collaboration to develop an integrated power plant control and SCADA system • Network architecture to enable optimization of PV-electrolyser hybrid projects • Resulting in lowest total cost of hydrogen
Slide 23: Nel joins initiative with market leaders to develop local hydrogen production
KEY DEV ELOPMENTS Nel joins initiative with market leaders to develop local hydrogen production • Local hydrogen production in Hofors, Sweden • With Ovako, Volvo Group, Hitachi ABB Power Grids Sweden, H2 Green Steel – supported by the Swedish Energy Agency • First plant in the world to heat steel wi
Slide 24: Hydrogen developments in Europe
Hydrogen developments in Europe 24
Slide 25: The IPCEI scheme will be an important accelerator for large-scale hydrogen projects in Europe
HYDROGEN DEVELOPMENTS IN EU ROPE The IPCEI scheme will be an important accelerator for large-scale hydrogen projects in Europe • IPCEIs stablished to accelerate the hydrogen technology & markets in Europe • Promoting cross-boarder R&D and industrial projects of particular importance for European dev
Slide 26: The Fit for 55 Package manifests Europe's leadership in green hydrogen
HYDROGEN DEVELOPMENTS IN EU ROPE The Fit for 55 Package manifests Europe’s leadership in green hydrogen • 3000-page report – hydrogen mentioned ~1000 times • By 2030, half the fossil hydrogen will have to be replaced with renewable hydrogen • Roll-out of hydrogen fueling stations, minimum one statio
Slide 27: Hydrogen Europe continues to take a proactive role in driving the acceleration of hydrogen
HYDROGEN DEVELOPMENTS IN EU ROPE Hydrogen Europe continues to take a proactive role in driving the acceleration of hydrogen in Europe • New Vision & Mission • Vision: Hydrogen Europe is propelling global carbon neutrality by accelerating European hydrogen industry • European hydrogen and fuel cell a
Slide 28: Summary and outlook
Summary and outlook nel:
Slide 29: Reiterating 2021 guidance: Investing to maintain leadership in a growing market
S U MMARY AND OU TLOOK Reiterating 2021 guidance: Investing to maintain leadership in a growing market Accelerating investments in organization, Continuing development investments in Key markets show strong momentum with technology and partnerships to maintain alkaline and PEM technologies, as well
Slide 30: The global leader within hydrogen technologies
S U MMARY AND OU TLOOK The global leader within hydrogen technologies Proven track record and established market leader • Pure play, independent hydrogen technology company • Decades of experience in PEM and alkaline electrolyser platforms • Technology leadership Scalability and cost leadership • Fi
Slide 31: number one by nature
number one by nature —