Slide 1: Q4 2019
Q4 2019 Jon André Løkke Chief Executive Officer
Slide 2: Forward-looking information
Forward-looking information Nel ASA Q4 2019 This Presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. These statements and this Presentation are based on current expectatio
Slide 3: Agenda
1. Q4 highlights 2. Financial review 3. Nel in brief 4. Key Nel developments 5. Industry development 6. Nel investment program and Herøya update 7. Summary/outlook 8. Q&A 3
Slide 4: Q4 highlights
Q4 highlights Nel ASA Q4 2019 Financial results and financing Operations and sales • Nel announced a trading update 21 January 2020 with preliminary • PO for H2Station® hydrogen fueling stations key financial figures • Two in Korea, ~3 MEUR • Revenues of 176 MNOK in Q4’19, compared to 125 MNOK in •
Slide 5: Financial review
nel: Financial review
Slide 6: Financial highlights
Financial highlights Nel ASA Q4 2019 2019 2019 2018 2019 2019 2018 (NOK million) Q4 Adj* Q4 Q4 Q3 Operating revenue 175.9 175.9 124.9 148.9 569.7 489.0 Total operating expenses 239.3 239.3 185.6 197.3 824.3 685.1 EBITDA -26.8 -42.7 -41.9 -28.9 -179.1 -131.6 EBIT -47.5 -63.4 -60.7 -48.4 -254.6 -196.1
Slide 7: Strong cash position of ~ NOK 1.3 billion
Strong cash position of ~ NOK 1.3 billion Nel ASA Q4 2019 Raised NOK 846 million in gross proceeds in January 2020 Cash position (NOK million) • Nel targets to have a strong financial position to 1600 execute on the strategic plans 1400 • January 2020 issue was 2.5x oversubscribed 1200 towards inter
Slide 8: Nel in brief
nel: Nel in brief
Slide 9: Nel ASA
Nel ASA Nel ASA Q4 2019 • Pure play hydrogen technology company listed on Oslo Stock Exchange (NEL.OSE) w/~24,000 shareholders • Manufacturing facilities in Norway, Denmark, and U.S., and a global sales network • World’s largest electrolyser manufacturer, >3 500 units delivered in 80+ countries sinc
Slide 10: Strong field know-how & manufacturing capacity
Strong field know-how & manufacturing capacity Nel ASA Q4 2019 Wallingford, USA Notodden/Herøya, Norway Herning, Denmark PEM electrolysers Alkaline electrolysers Hydrogen refuelling stations 2 700+ systems delivered 800+ systems delivered 50+ stations delivered Production capacity: Production capaci
Slide 11: Key Nel developments
nel: Key Nel developments
Slide 12: Received purchase order for multiple H2Station units
Received purchase order for multiple H2Station® units Nel ASA Q4 2019 Key Nel developments Diverse and solid project backlog and pipeline • OrangeGas, Dutch alternative fuels supplier, will open several stations in the Netherland, ~3 MEUR • PO for two H2Station® units in Europe, ~2 MEUR • Customer t
Slide 13: Summary of H2Station purchase orders received in 2019 in Korea
Summary of H2Station® purchase orders received in 2019 in Korea Nel ASA Q4 2019 Key Nel developments Breakthrough year for hydrogen fueling solutions from Nel in the Korean market • Nel Korea received the following purchase orders in 2019: • 2 H2Station® from Gangwon Technopark (Q1-19, ~2.8 MEUR) •
Slide 14: Contract for delivery of 3.5 MW alkaline electrolyser to ENGIE
Contract for delivery of 3.5 MW alkaline electrolyser to ENGIE Nel ASA Q4 2019 Key Nel developments Hydrogen will contribute to reduce carbon footprint of the mining industry • Nel to deliver a 3.5 MW alkaline electrolyser to utility company ENGIE, aim to become world leader in “zero-carbon transiti
Slide 15: Received purchase order for a containerized PEM electrolyser in the US
Received purchase order for a containerized PEM electrolyser in the US Nel ASA Q4 2019 Key Nel developments Delivering a containerized 1 MW PEM electrolyser for buses in Illinois • Received purchase order for a 1 MW containerized Proton PEM® electrolyser from Trillium Transportation Fuels, LLC • Wil
Slide 16: Signed strategic collaboration agreement with Kvaerner
Signed strategic collaboration agreement with Kvaerner Nel ASA Q4 2019 Key Nel developments Projects and standardization for large scale hydrogen production plants • Kvaerner has extensive experience from large projects all over the world • Supports larger projects with increased complexity • Contri
Slide 17: Industry developments
nel: Industry develooments
Slide 18: Strong tailwind for hydrogen solutions
Strong tailwind for hydrogen solutions Nel ASA Q4 2019 Industry developments 1 Hydrogen as the Hyundai reveals Heavy-Duty Selected announcements: STRONG preferred future fuel Truck concepts – plan to deliver MOMENTUM alternative – facilitates 1,600 trucks to Switzerland WITHIN true zero emission fro
Slide 19: Green hydrogen is on top of the agenda
Green hydrogen is on top of the agenda Nel ASA Q4 2019 Industry developments Strong attention from several of the world’s largest industry- and energy companies • Large industry- and energy companies have engaged in Recent investments by gas heavyweights illustrate the green hydrogen projects recent
Slide 20: European Green Deal
European Green Deal Nel ASA Q4 2019 Industry developments Europe sees hydrogen in a pivotal role – stepping up efforts • The European Commission recently presented the European Green Deal, outlining the main policy initiatives for reaching net-zero global warming emissions by 2050 • Hydrogen is key
Slide 21: ASKO starts operations of hydrogen delivery trucks
ASKO starts operations of hydrogen delivery trucks Nel ASA Q4 2019 Industry developments Hydrogen is key to ASKO´s zero emission target • ASKO has collaborated with vehicle manufacturer Scania and independent research organization SINTEF • Hydrogen trucks will take groceries from the Trondheim wareh
Slide 22: World's first liquid hydrogen carrier ship launched
World’s first liquid hydrogen carrier ship launched Nel ASA Q4 2019 Industry developments Japan taking a leading role on ocean transport of hydrogen • On December 11th Kawasaki Heavy Industries launced “Suiso Frontier”, world’s first liquid hydrogen carrier • Capacity of 1250 m3 LH2 (~100 tons) • Wi
Slide 23: Nikola announces NASDAQ-listing through merger with VectoIQ
Nikola announces NASDAQ-listing through merger with VectolQ Nel ASA Q4 2019 Industry developments Nikola secures additional financing and targets listing under the ticker “NKLA” • March 3rd Nikola announced a merger with VectoIQ Acquisition Corp. (NASDAQ: VTIQ), a publicly-traded special purpose acq
Slide 24: Nel investment program and Herøya update
Nel investment program and Herøya update
Slide 25: Increasingly important to be a financially strong counterpart
Increasingly important to be a financially strong counterpart Nel ASA Q4 2019 Nel investment program and Herøya update Larger projects set higher financial demands • Nel is experiencing increased number of inquiries for larger scale projects • For larger projects a strong balance sheet and financial
Slide 26: Nel will accelerate investments in technology and organization
Nel will accelerate investments in technology and organization Nel ASA Q4 2019 Nel investment program and Herøya update • Development of pressurized electrolysers continues, both for alkaline and PEM, with need Increase investment in for continued innovation alongside cost reductions to maintain lea
Slide 27: Full scale pilot line installation and organization ramp-up are key priorities in 2020
Full scale pilot line installation and organization ramp-up are key priorities in 2020 Nel ASA Q4 2019 Nel investment program and Herøya update Automated and high efficiency electrolyzer production line • Manufacturing improvement potential higher than initially expected • Thorough systematic approa
Slide 28: Electrolyser manufacturing plant expansion at Herøya, Norway
Electrolyser manufacturing plan expansion at Herøya, Norway Nel ASA Q4 2019 Nel investment program and Herøya update Alkaline electrolyser manufacturing plant with possibility to grow beyond 1 GW/year The new manufacturing facilities are located in Herøya Industrial Park, in a 15,000m2 building in o
Slide 29: Summary/Outlook
nel: Summary/Outlook
Slide 30: Creating a rapidly growing billion NOK company
Creating a rapidly growing billion NOK company Nel ASA Q4 2019 Levering on the arising opportunities within energy storage and hydrogen fueling Global presence World-class safety Strong financing Cost leadership Preferred partner Technology front-runner 30
Slide 31: Outlook
Outlook Nel ASA Q4 2019 Q4 2019 The H2 market expected to grow Increasing adoption of industrial Strong momentum within mobility significantly and renewable hydrogen applications with huge – especially within HDV, H2 as hydrogen on a trajectory to overall potential preferred future fuel alternative
Slide 32: Welcome to Capital Markets Day 2020
Welcome to Capital Markets Day 2020 Nel ASA Q4 2019 June 2020 (exact date to be announced), Haakon VIIs gate 2 Technology deep dive Strategy and BD Guest speakers 32
Slide 33: number one by nature
nel: number one by nature
Slide 34: Q&A
nel: Q&A
Slide 35: Top 20 / IR analytics
IR analytics Nel ASA Q4 2019 Market Cap Investor base Shares NOK (billion) >24 000 investors YTD March 4, 2020 ~15 +32% Top 20 investors own Daily average turnover ~50% of shares (million) of the shares ~55 Financial calendar Analyst coverage May 7, 2020, Q1 2020 • Jonas Meyer – SB1 August 26, 2020,