Slide 1: Q4 2018
Q4 2018 Jon André Løkke Chief Executive Officer
Slide 2: Forward-looking information
Forward-looking information Nel ASA Q4 2018 This Presentation includes and is based, inter alia, on forward-looking expectations will be achieved or that the actual results will be as set information and statements that are subject to risks and uncertainties out in the Presentation. Nel ASA is makin
Slide 3: Q4 highlights Nel in brief & organization Market trends
• Q4 highlights • Nel in brief & organization • Market trends • Segment updates • Summary/Outlook
Slide 4: Q4 highlights
Q4 highlights Nel ASA Q4 2018 Operations and sales Financial results and financing • Participating in consortium to support hydrogen trains from Alstom • Revenues of NOK 124.9 million in Q4’18, up from NOK 115.6 • Awarded a contract by Uno-X Hydrogen to deliver two H2Stations® million in Q4’17, repr
Slide 5: Financial highlights
Financial highlights Nel ASA Q4 2018 2018 2018 2017 2018 2017 (NOK million) Q4 Adj* Q4 Q4 Operating revenue 124.9 124.9 115.6 489.1 302.2 Total operating expenses 185.6 185.6 159.2 685.1 419.4 EBITDA -18.3 -41.9 -23.9 -131.6 -77.4 EBIT -37.1 -60.7 -43.5 -196.1 -117.2 Pre-tax loss -32.1 -55.8 -44.6 -
Slide 6: Nel in brief & organization
nel: Nel in brief & organization
Slide 7: Nel ASA
Nel ASA Nel ASA Q4 2018 • Global, listed pure-play hydrogen company – facilities in Norway, Denmark and the U.S. • Significant foothold in fast-growing markets with several breakthrough contracts • World-leading on hydrogen electrolyzers and fueling equipment – unrivalled performance and track-recor
Slide 8: Evolving the Nel organization, to support next phase of development
Evolving the Nel organization, to support next phase of development Nel ASA Q4 2018 Ramping the organization for growth, cost reductions and future development • Build organization that is capable of taking Nel into the next phase of development, a number of strengthening adjustments • In short, the
Slide 9: Updated organization
Updated organization Nel ASA Q4 2018 Ramping the organization for growth, cost reductions and future development CEO CFO IR/PR/Corp.Comm. Support Corporate Projects BD/Corp.Strategy functions Group Legal Strategic sales/KAM Electrolyser & Group CTO Fueling Divisions with full P/L Sales/aftermarket S
Slide 10: Market trends
nel: Market trends
Slide 11: Hydrogen is expanding its areas of application
Hydrogen is expanding its areas of application Nel ASA Q4 2018 CONVENTIONAL INDUSTRY MOBILITY POWER-TO-X Food Glass Polysilicon Laboratories Chemical Industry Industry Industry Industry Mobility Power-To-X (transportation) (renewable hydrogen) Thermal Chemical vapor Steel Power Industry Life process
Slide 12: Hydrogen is becoming relevant in all forms of mobility
Hydrogen is becoming relevant in all forms of mobility Nel ASA Q4 2018 Hydrogen as preferred future fuel alternative: PASSENGER CAR FAST FERRY − True zero emission from production to use TRAIN − Can beat fossil fuel applications on a TCO- basis − Low weight (compared to e.g. batteries), especially r
Slide 13: Freight activity / heavy duty transport projected to double by 2050
Freight activity / heavy duty transport projected to double by 2050 Nel ASA Q4 2018 Trend supported by external analysts, like Miller, J. & Façanha • Heavy duty vehicles responsible for 47% of CO2 emissions from land-based mobility and ~8% of total global CO2 emissions • Freight activity (ton-km) pr
Slide 14: Diesel is the most resilient petroleum product in Norway
Diesel is the most resilient petroleum product in Norway Nel ASA Q4 2018 Sale of auto diesel has stabilized on a high level despite transition to electrical vehicles 900 800 Other petroleum products 700 Heating oils and heating and lightning 600 kerosene Heavy fuel oil 500 Jet fuel 400 Motor gasolin
Slide 15: Fossil parity on fuel achievable in Norway today
Fossil parity on fuel achievable in Norway today Nel ASA Q4 2018 Centralized production close to power or heat source enables business case • Regional hydrogen production, use of low cost renewable energy • Possible to integrate with central heating and grid balancing services • Parity with taxed di
Slide 16: Hydrogen infrastructure initiative in Norway is currently being expanded
Hydrogen infrastructure initiative in Norway is currently being expanded Nel ASA Q4 2018 Establishing centralized, large scale production sites with local distribution, serving multiple mobility needs Green hydrogen Production: • 8 – 24 tons / day from Hydro/Wind Radius of circle corresponds to ~2.5
Slide 17: Nel is positioned with broad offering within H2 fueling
Nel is positioned with broad offering within H2 fueling Nel ASA Q4 2018 Developing new solutions to strengthen position in heavy duty vehicle segments 17
Slide 18: Decreasing cost of renewable hydrogen opening up new business areas
Decreasing cost of renewable hydrogen (and oxygen) opening up new business areas Nel ASA Q4 2018 • Wide variety of existing and new markets METHANOL AMMONIA REFINERY where electrolysis can play a major role – Exchanging fossil hydrogen with renewable hydrogen (f.ex fertilizer) – Exchanging coal with
Slide 19: Nel well positioned with key electrolysis technologies in its portfolio
Nel well positioned with key electrolysis technologies in its portfolio Nel ASA Q4 2018 Targeting further development within all segments to maintain position 19
Slide 20: Segment updates
nel: Segment updates
Slide 21: Nel preferred supplier for hydrogen train opportunity in Germany
Nel preferred supplier for hydrogen train opportunity in Germany Nel ASA Q4 2018 Latest developments Nel chosen as preferred supplier of hydrogen production and fueling equipment for Alstom in Schleswig-Holstein • Centralized hydrogen production and distribution, owned by consortium (showed below) •
Slide 22: Green fertilizer project with Yara
Green fertilizer project with Yara Nel ASA Q4 2018 Latest developments Nel and Yara awarded grant for development of green fertilizer project • Grant from PILOT-E scheme aimed towards developing next generation green (renewable) ammonia and fertilizer production • Target to utilize Nel’s next genera
Slide 23: Joint maritime hydrogen projects awarded public grants
Joint maritime hydrogen projects awarded public grants Nel ASA Q4 2018 Latest developments HYON granted support to develop solutions for zero emission maritime vessels • Four Norwegian hydrogen projects received funding through PILOT-E scheme, HYON is engaged in two of the projects: • Project ZEFF –
Slide 24: Update on Notodden electrolyzer facility expansion
Update on Notodden electrolyzer facility expansion Nel ASA Q4 2018 Latest developments Targeted capacity of 360 MW per year, ~10x current annual production • Detailed planning and pre-engineering done, currently in the process of receiving updated offers from key equipment suppliers • Final design,
Slide 25: Receives H2Station orders from Shell under new framework agreement
Receives H2Station® orders from Shell under new framework agreement Nel ASA Q4 2018 Latest developments Order follow signing of a new framework agreement between Nel and Shell • The two H2Station® units in the Netherlands will be manufactured and installed during 2019 • Total contract value of appro
Slide 26: Received purchase order for two additional H2Stations in Norway
Received purchase order for two additional H2Stations in Norway Nel ASA Q4 2018 Latest developments Extending network of hydrogen fueling stations between major cities in Norway • Awarded a EUR 2 million contract with Uno-X Hydrogen to deliver two additional H2Station® hydrogen fueling stations in N
Slide 27: Received grant for HDV fueling development & entered MoU for HDV standardization
Received grant for HDV fueling development & entered MoU for HDV standardization Nel ASA Q4 2018 Latest developments / Subsequent events Heavy duty fueling technology and standards reaching a mature stage • Awarded R&D grant of EUR 1 million from the Danish Energy Technology Development and Demonstr
Slide 28: Awarded USD >6 million purchase order for HDV H2stations from Shell
Awarded USD >6 million purchase order for HDV H2stations from Shell Nel ASA Q4 2018 Subsequent events • Recently received a PO for a H2Station® solution for fueling of heavy-duty vehicles in California from Shell • Order issued under the recently announced framework agreement between Nel and Shell G
Slide 29: Proposed for funding for two H2Stations in Korea
Proposed for funding for two H2Stations in Korea Nel ASA Q4 2018 Subsequent events Enables Nel to extend and accelerate activities and sales in the region • Nel Korea has received the notice as bid winner of two H2Station® hydrogen fueling station from Gangwon Technopark • Value of proposed station
Slide 30: Awarded PO for PEM electrolyzer and enters a 30 MW framework contract
Awarded PO for PEM electrolyzer and enters a 30 MW framework contract Nel ASA Q4 2018 Subsequent events • Awarded a USD >3 million purchase order for a containerized 2 MW Proton PEM electrolyzer as part of a new 30 MW framework contract from Hydrospider AG, an affiliated company of H2 Energy AG • Re
Slide 31: Summary/Outlook
nel: Summary/Outlook
Slide 32: Creating a rapidly growing billion NOK company
Creating a rapidly growing billion NOK company Nel ASA Q4 2018 Levering on the arising opportunities within energy storage and hydrogen fueling Global presence Technology leadership Strong financials Cost leadership Commercial capabilities Preferred partner 32
Slide 33: Outlook
Outlook Nel ASA Q4 2018 • Ongoing growth initiatives and focus on long term high value orders will have a negative impact on Nel's ability to deliver positive EBITDA in the short term • Continuing work on the x10 factory expansion at Notodden to support deliveries to Nikola and other customers • Lev
Slide 34: Q&A
nel: Q&A
Slide 35: Number one by nature
nel: Number one by nature