Slide 1: Q3 2019
Q3 2019 Jon André Løkke Chief Executive Officer
Slide 2: Forward-looking information
Forward-looking information Nel ASA Q3 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. Q3 highlights 2. Nel in brief 3. Key developments 4. Capacity expansion 5. Industry updates 6. Summary/outlook 7. Q&A 3
Slide 4: Q3 highlights
Q3 highlights Nel ASA Q3 2019 Financial results and financing Operations and sales • Launched new product, the A1000 alkaline electrolyser • Revenues of NOK 149 million in Q3’19, compared to NOK 116 million in Q3’18 • Closed agreements with Everfuel and signed an exclusive sales and service • All ti
Slide 5: Financial highlights
Financial highlights Nel ASA Q3 2019 2019 2019 2018 2019 2018 2017 (NOK million) Q3 Adj* Q3 Q3 Q2 Operating revenue 148.9 148.9 116.0 122.5 489.0 302.2 Total operating expenses 186.3 197.3 182.2 228.7 685.1 419.4 EBITDA -17.9 -28.9 -53.3 -72.6 -131.6 -77.4 EBIT -37.4 -48.4 -66.3 -90.7 -196.1 -117.2
Slide 6: Nel in brief
nel: Nel in brief
Slide 7: Nel ASA
Nel ASA Q3 2019 Nel ASA • Pure play hydrogen technology company listed on the Oslo Stock Exchange (NEL.OSE) w/~23,000 shareholders • Manufacturing facilities in Norway, Denmark, and U.S., and a global sales network • World’s largest electrolyser manufacturer, with >3 500 units delivered in 80+ count
Slide 8: Strong field know-how & manufacturing capacity
Strong field know-how & manufacturing capacity Nel ASA Q3 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 9: Key developments
nel: Key developments
Slide 10: Received additional purchase orders for H2Stations in Korea & invests in HyNet
Received additional purchase orders for H2Stations in Korea & invests in HyNet Nel ASA Q3 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 11: Establishes consortium to deploy H2-buses & closes agreements on Everfuel
Establishes consortium to deploy 600 H2-buses & closes agreements on Everfuel Nel ASA Q3 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 12: Nel and Nikola proposed for USD 2 million award
Nel and Nikola proposed for USD 2 million award Nel ASA Q3 2019 Key developments Nel and Nikola = Hydrogen @Scale • Selected by the Department of Energy (DOE) on a proposed USD 2 million funding for continued development of the hydrogen station technology together with Nikola • Target to further dev
Slide 13: Signs collaboration agreement with Yara on green fertilizer project
Signs collaboration agreement with Yara on green fertilizer project Nel ASA Q3 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 14: Contract for delivery of a 3.5 MW alkaline electrolyser
Contract for delivery of a 3.5 MW alkaline electrolyser Nel ASA Q3 2019 Key developments Delivering electrolyser to large, international energy company • Scheduled to be installed during 2020 • Contract value of approximately USD 4 million • More information to follow early 2020 The A1000 atmospheri
Slide 15: Capacity expansion
nel: Capacity expansion
Slide 16: Secured ideal location for large scale manufacturing at Herøya
Secured ideal location for large scale manufacturing at Herøya Nel ASA Q3 2019 Capacity expansion Alkaline electrolyser 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 already in pl
Slide 17: Awarded grant for development of more advanced production line at Herøya
Awarded grant for development of more advanced production line at Herøya Nel ASA Q3 2019 Capacity expansion Awarded grant of NOK 9.3 million from Enova for advanced production line • Nel is establishing the world's largest, automated electrolyser production line (initial target of 360 MW/line) • Gra
Slide 18: Industry updates
nel: Industry updates
Slide 19: IVECO and Nikola partnering in the European fuel cell Heavy-Duty Truck market
IVECO and Nikola partnering in the European fuel cell Heavy-Duty Truck market Nel ASA Q3 2019 Key developments CNH new Nikola shareholder following D-round equity raise • CNH invests USD 250 million in D-round • Pre-money valuation of USD 3 billion • IVECO and FPT Industrial, brands of CNH Industria
Slide 20: Strong global Q3 newsflow within hydrogen mobility
Strong global Q3 newsflow within hydrogen mobility Nel ASA Q3 2019 Industry updates Hydrogen as key energy carrier for mobility solutions – Latest initiatives and launches include: CAR CAR • Cars • BMW Hydrogen NEXT • New Toyota Mirai • Bus • CaetanoBus (Portogal) with Toyota technology • VanHool Ex
Slide 21: IEA expects strong growth in hydrogen mobility towards 2030
IEA expects strong growth in hydrogen mobility towards 2030 Nel ASA Q3 2019 Industry updates Number of fuel cell electric vehicles are set to grow by 223x by 2030, stations by >10x • Global numbers of fuel cell electric vehicles (FCEV) expected to 4000 increase from 11 200 at the end of 2018 to 2.5
Slide 22: Major new hydrogen initiatives from the leading car manufacturers
Major new hydrogen initiatives from the leading car manufacturers Nel ASA Q3 2019 Industry updates Hydrogen electric solutions highlighted at Frankfurt and Tokyo motor shows BMW Hydrogen NEXT, to be launched in 2022 Next generation Toyota MIRAI, to be launched in 2020 22
Slide 23: Let's compare apples with apples
Let’s compare apples with apples Nel ASA Q3 2019 Industry updates Due to scaling effects, BEVs and FCEVs will co-exist for a 100% electrification Batteries cheapest <200km range Hydrogen cheapest >200km range Technology price & performance = future best case for both technologies Fuel Cell Electric
Slide 24: IRENA sees hydrogen production as key to renewable energy deployment
IRENA sees hydrogen production as key to renewable energy deployment Nel ASA Q3 2019 Industry updates Demand for renewable H2 can trigger a demand for 4 – 16x current global solar & wind capacity • International Renewable Energy Agency (IRENA) estimates green hydrogen could translate into 5 - 16% of
Slide 25: Summary/Outlook
nel: Summary/Outlook
Slide 26: Creating a rapidly growing billion NOK company
Creating a rapidly growing billion NOK company Nel ASA Q3 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 26
Slide 27: Outlook
Outlook Nel ASA Q3 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 electrolyser factory
Slide 28: number one by nature
nel: number one by nature
Slide 29: Q&A
nel: Q&A
Slide 30: IR analytics
7 November 2019 IR analytics
Slide 31: IR analytics: Top 20
IR analytics Nel ASA Q3 2019 Market Cap Investor base Shares NOK (billion) >23 000 investors YTD November 6, 2019 +75% ~9.9 Top 20 investors own ~50% of the shares Daily average turnover of NOK (million) ~140 Financial calendar Roadshow Analyst coverage March 5, 2020, • Jonas Meyer – SB1 Brussels -