Slide 1: Q2 2019
Q2 2019 Jon André Løkke Chief Executive Officer
Slide 2: Forward-looking information
Forward-looking information Nel ASA Q2 2019 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: Agenda
• Q2 highlights • Nel in brief • The Kjørbo incident • Key developments • Secured location for low-cost electrolyzer manufacturing • Summary/outlook • QA
Slide 4: Q2 highlights
Q2 highlights Nel ASA Q2 2019 Financial results and financing Operations and sales • PO from Shell for additional H2Station® units for heavy duty fueling in • Revenues of NOK 122.5 million in Q2’19, compared to NOK 135.8 California, USD ~7 million million in Q2’18, in line with company outlook: • PO
Slide 5: Financial highlights
Financial highlights Nel ASA Q2 2019 2019 2019 2018 2019 2018 2017 (NOK million) Q2 Adj* Q2 Q2 Q1 Operating revenue 122.5 122.5 135.8 122.4 489.0 302.2 Total operating expenses 213.3 228.7 173.0 174.4 685.1 419.4 EBITDA -26.3 -72.6 -20.6 -34.8 -131.6 -77.4 EBIT -44.4 -90.7 -37.2 -52.0 -196.1 -117.2
Slide 6: Nel in brief
nel: Nel in brief
Slide 7: Nel ASA
Nel ASA Q2 2019 Nel ASA • Pure play hydrogen technology company listed on the Oslo Stock Exchange (NEL.OSE) • Manufacturing facilities in Norway, Denmark and U.S. & global sales network • World’s largest electrolyzer manufacturer, with >3500 units delivered in 80+ countries since 1927 • World leadin
Slide 8: Strong field know-how & manufacturing capacity
Strong field know-how & manufacturing capacity Nel ASA Q2 2019 Wallingford, USA Notodden/Herøya, Norway Herning, Denmark PEM electrolyzers Alkaline electrolyzers Hydrogen refuelling stations 2,700+ systems delivered 800+ systems delivered 50+ stations delivered Production capacity: Production capaci
Slide 9: The Kjørbo Incident
The Kjørbo Incident For more information, see Q&A & full presentation on Kjørbo incident: Q&A: https://nelhydrogen.com/status-and-qa-regarding-the-kjorbo-incident/ Presentation: https://nelhydrogen.com/assets/uploads/2019/06/2019-06-28-Nel-ASA-Kjorbo-press-conference.pdf
Slide 10: The Kjørbo site and incident
The Kjørbo site and incident Nel ASA Q2 2019 Background • Opened 2016 & owned by Uno-X Hydrogen • JV between Uno-X, Nel, and Nippon Gases Norway (formerly Praxair) • Nel H2Station® with on-site hydrogen production from electrolysis • Incident on June 10 2019 after leak from high pressure storage ign
Slide 11: Clear ambition: no accidents at sites with Nel technology
Clear ambition: no accidents at sites with Nel technology Nel ASA Q2 2019 Background All hydrogen solutions from Nel are certified by third parties and comply with all relevant international standards for Europe, including directives below: • Mechanical and Safety Instrumented System IEC61511 • DIRE
Slide 12: Actions to be taken by Nel
Actions to be taken by Nel Nel ASA Q2 2019 Process and actions Inspection/retorquing of verified plug solution 1 • Inspect all high-pressure storage units in Europe • Check/re-torque all plugs Updated routines for assembly of high-pressure storage units 2 • Introduce new safety system/routines (aero
Slide 13: Timeline for various market segments
Timeline for various market segments Nel ASA Q2 2019 Green light given to operators Action Action Action Action Action Station locations Root cause Green light from Nel Check site Update site Component update correction to operators Denmark ✔ COMPLETED USA ✔ ✔ IN PROGRESS Korea ✔ ✔ COMPLETED Europe
Slide 14: Key developments
nel: Key developments
Slide 15: Awarded additional purchase orders for HDV H2Stations from Shell
Awarded additional purchase orders for HDV H2Stations from Shell Nel ASA Q2 2019 Key developments Good traction on HDV applications in the US • Received purchase order for two H2Station® solutions for fueling of heavy-duty vehicles in California from Shell • Order issued under earlier announced fram
Slide 16: Awarded PO for H2Station® from HTEC in Canada
Awarded PO for H2Station® from HTEC in Canada Nel ASA Q2 2019 Key developments Nel’s first H2Station® to be delivered in the Canadian market • On May 3rd awarded a PO for a H2Station® fueling station from (Hydrogen Technology & Energy Corporation) • First H2Station® from Nel in Canada, opening up a
Slide 17: Received additional purchase orders for H2Stations in Korea & invests in HyNet
Received additional purchase orders for H2Stations in Korea & invests in HyNet Nel ASA Q2 2019 Key developments Breakthrough for the Nel hydrogen fueling solutions in the Korean market • National target in Korea of 310 hydrogen stations by 2022 • Nel Korea has received following purchase orders in 2
Slide 18: Establishes consortium to deploy H2-buses & closes agreements on Everfuel
Establishes consortium to deploy 600 H2-buses & closes agreements on Everfuel Nel ASA Q2 2019 Key developments Hydrogen industry leaders establishing consortium to commercialize hydrogen buses in Europe • Nel, Hexagon Composites, Ballard Power Systems, Ryse Hydrogen, Everfuel and Wrightbus are part
Slide 19: Receives contract for H2Station® solution for hydrogen buses in London
Receives contract for H2Station® solution for hydrogen buses in London Nel ASA Q2 2019 Key developments Delivering next generation, high capacity H2Station® for HDV applications • Received ~2.5 MEUR contract for a bus H2Station® solution from Transport for London (TfL) • New H2Station® solution redu
Slide 20: Nel and Nikola proposed for USD 2 million award
Nel and Nikola proposed for USD 2 million award Nel ASA Q2 2019 Key developments Nel and Nikola = Hydrogen @Scale • Selected by the Department of Energy (DOE) on a proposed 2 MUSD funding for continued development of the hydrogen station technology together with Nikola • Target to further develop th
Slide 21: Received purchase order for a 4.5 MW electrolyzer from HYBRIT
Received purchase order for a 4.5 MW electrolyzer from HYBRIT Nel ASA Q2 2019 Key developments HYBRIT aims to develop fossil free steel production for the future • 4.5 MW alkaline electrolyzer solution will be used in a pilot plant for fossil free steel production • Hybrit Development AB (HYBRIT) is
Slide 22: Signs collaboration agreement with Yara on green fertilizer project
Signs collaboration agreement with Yara on green fertilizer project Nel ASA Q2 2019 Key developments Landmark project on green fertilizer initiated • Project for developing next generation green (renewable) ammonia and fertilizer production supported by the PILOT-E program • Nel role in project: dev
Slide 23: Secured location for low-cost electrolyzer manufacturing
Secured location for low-cost electrolyzer manufacturing
Slide 24: Secured location for low-cost alkaline electrolyzer manufacturing at Herøya
Secured location for low-cost alkaline electrolyzer manufacturing at Herøya Nel ASA Q2 2019 Key developments Alkaline electrolyzer manufacturing plant with possibility to grow beyond 1 GW/year • Herøya secured as location for manufacturing: OSLO • Industrial park w/state-of-the-art infrastructure al
Slide 25: Herøya – existing facilities have potential for >1 GW/year capacity
Herøya – existing facilities have potential for >1 GW/year capacity Nel ASA Q2 2019 Key developments Examining opportunities for more advanced production lines – potential to increase significantly beyond 1 GW/year The new manufacturing facilities are located in Herøya Industrial Park, in a 15,000m2
Slide 26: Summary/Outlook
nel: Summary/Outlook
Slide 27: Creating a rapidly growing billion NOK company
Creating a rapidly growing billion NOK company Nel ASA Q2 2019 Levering on the arising opportunities within energy storage and hydrogen fueling Global presence Leading safety Strong financing Leading technology Preferred partner Cost leadership 27
Slide 28: Outlook
Outlook Nel ASA Q2 2019 • 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 • Continued development of state-of-the art safety solutions and processes • Development of x10 electrolyzer factory
Slide 29: number one by nature
nel: number one by nature