Nel Asa · OSL:NEL
Nel Asa — Q1 2021 Earnings Presentation
34 slides from Nel Asa's earnings presentation, May 4, 2021
Slide 1: Q1 2021
Q1 2021 Jon André Løkke, CEO 4 May 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 are information and statements relating to the business, financial performance based upon reasonable assumptions, it can give no as
Slide 3: Agenda
Agenda • Nel in brief • Q1 highlights & financial review • Delivering on partnership strategy • Other key developments • Summary / Outlook • Q&A
Slide 4: Leading pure play hydrogen technology company with a global footprint
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 Stock Exchange a
Slide 5: Strong field know-how and manufacturing capacity
Strong field know-how and manufacturing capacity PEM electrolysers Alkaline electrolysers Hydrogen refueling stations Wallingford, USA Herøya, Norway Herning, Denmark Systems delivered: 2,700+ Systems delivered: 800+ Stations delivered: 110+ Production capacity: >50 MW/year (room to expand) Producti
Slide 6: Nel is the largest electrolyser manufacturer worldwide
Nel is the largest electrolyser manufacturer worldwide The world’s largest electrolyser manufacturers Ranked by revenues Nel electrolyser Company 2 Company 3 Company 4 Company 5 Company 6 Company 7 6 Source: Company websites, 2019 annual reports and market intelligence
Slide 7: Strengthening the organization through strategic changes to Nel group management
Strengthening the organization through strategic changes to Nel group management • Accelerating investments in organization, technology, and partnerships to maintain leading position in a growing market • Strengthening the organization with >100 new employees in 2021 Caroline Duyckaerts Jørn Rosenlu
Slide 8: Q1 highlights & financial review
Q1 highlights & financial review 8
Slide 9: Q1 highlights
Q1 highlights Financial results and financing Key developments • Launch of 1.5 USD/kg target for green renewable hydrogen Revenues • Approval of 20 MW electrolyser contract for Everfuel NOK 157 million • Awarded Iberdrola contract for 20 MW green fertilizer project Up 24% from NOK 127 million in Q1
Slide 10: Financial highlights
F INANCIAL REV IEW Financial highlights (NOK million) 2021 Q1 2020 Q1 2020 2019 2018 Operating revenue 156.9 126.5 651.9 569.7 489.0 Total operating expenses 255.0 213.4 1 066.4 823.3 685.1 EBITDA -74.3 -64.6 -251.5 -178.1 -131.6 EBIT -98.2 -86.9 -414.5 -253.6 -196.1 Pre-tax income (loss)* -579.9 -5
Slide 11: Q1 EBITDA and operating earnings
F INANCIAL REV IEW Q1 EBITDA and operating earnings • EBITDA negatively 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 12: Solid backlog
F INANCIAL REV IEW Solid backlog Order backlog by quarter Solid order backlog NOK million • Backlog increased sequentially by ~11% in Q1 2021 1000 • 83% growth YoY 800 • Strong pipeline across segments and industries 600 • Order intake is expected to vary between quarters as order size increases 400
Slide 13: Delivering on partnership strategy
Delivering on partnership strategy 13
Slide 14: Demonstrating our position as a preferred partner
PARTNERSHIP S TRATEGY Demonstrating our position as a preferred partner • A firm partnership strategy remains Global presence World-class safety key to success as hydrogen projects are growing in size and complexity • Long-term commitment to trusted partners across the value chain, with specialist c
Slide 15: Nel green hydrogen cost target by 2025
$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 15
Slide 16: Capacity expansion at Herøya on track
Capacity 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 improvements identified, name plate capacity o
Slide 17: Standardization to improve cost and reduce delivery-time
Standardization to improve cost and reduce delivery-time Building independent All main components as skids All hydrogen safety Safe work zones standards imbedded and walkways Pre-fabricated pipe rack Stacks arriving on skids preassembled 17
Slide 18: Strategic EPC partners enables complete large-scale solutions globally
PARTNERSHIP S TRATEGY Strategic EPC partners enables complete large-scale solutions globally • Benefit from joint development over time and common targets Nel scope EPC scope and KPIs • Building execution muscle • Standardized turn-key solutions Electrolyser system design Civil works, building • Sin
Slide 19: Partnership with Wood to develop and execute large-scale, complex hydrogen projects
PARTNERSHIP S TRATEGY Partnership with Wood to develop and execute large-scale, complex hydrogen projects • Global footprint with offices in 60 countries and 40,000 employees worldwide • A global leader in consulting and engineering across the energy industry • Providing consulting, projects, and op
Slide 20: Partnership with Aibel to develop and execute large-scale, complex hydrogen projects
PARTNERSHIP S TRATEGY Partnership with Aibel to develop and execute large-scale, complex hydrogen projects • Leading service company within the oil, gas, and offshore wind industries • 4 000 employees located in Norway and Southeast Asia • Operates yards in Haugesund and Thailand for prefabrication
Slide 21: Partnerships with major EPC companies Aibel and Wood
PARTNERSHIP S TRATEGY 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
Slide 22: Establishing partnerships to deliver across the entire green hydrogen value chain
PARTNERSHIP S TRATEGY Establishing partnerships to deliver across the entire green hydrogen value chain Electricity production Hydrogen production H2StationTM Fuel Cell Electric Vehicle Solar Wind Industrial applications Power-to-X Electrolysers Facilitate optimal direct Deliver outside Nel scope (E
Slide 23: Joining forces with Haldor Topsøe for end-to-end green ammonia and methanol solutions
PARTNERSHIP S TRATEGY Joining forces with Haldor Topsøe for delivery of end- to-end green ammonia and methanol solutions • Signed MoU with intent to offer customers end-to-end green ammonia and methanol solutions • Delivery of complete solutions to customers, based on demonstrated technologies avail
Slide 24: Collaboration with First Solar to develop integrated PV-hydrogen power plants
PARTNERSHIP S TRATEGY 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 hydro
Slide 25: Other key developments
Other key developments nel°
Slide 26: Approval of 20 MW electrolyser contract for Everfuel A/S
KEY DEV ELOPMENTS Approval of 20 MW electrolyser contract for green hydrogen production for Everfuel A/S • Nel awarded a 20 MW electrolyser contract for the green hydrogen production facility adjacent to the Federica refinery • The facility will have a production capacity of up to 8 tonnes per day,
Slide 27: Signed agreement with Iberdrola for the supply of 20 MW PEM
KEY DEV ELOPMENTS Signed agreement with Iberdrola for the supply of 20 MW PEM to support green fertilizer project in Spain • Iberdrola, one of the largest electricity utilities in the world, has, together with world-leading fertilizer manufacturer Fertiberia, launched a project to establish the larg
Slide 28: Order for four additional H2Stations modules from Iwatani
KEY DEV ELOPMENTS Order for four additional H2StationsTM modules from Iwatani • Purchase order for four additional H2StationTM modules • Value in excess of NOK 40 million • For fueling of light-duty vehicles in California • Additional order to the 14 H2StationTM modules ordered from Iwatani in 2020
Slide 29: 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 purchase order 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 hydro
Slide 30: Summary and outlook
Summary and outlook nel°
Slide 31: Sustainability at the core
S U MMARY AND OU TLOOK Sustainability at the core Vision: Empowering generations with clean energy forever EU Taxonomy – Positive outlook for Nel’s integration of sustainability • Nel’s business activities deemed to be “substantially contributing to climate change mitigation” and therefore classifie
Slide 32: 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 33: 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 34: Q&A
nel: — QRA - ~ number one by nature