Nel Asa · OSL:NEL
Nel Asa — Q3 2024 Earnings Presentation
30 slides from Nel Asa's earnings presentation, Oct 16, 2024
Slide 1: Third quarter 2024 results presentation
Third quarter 2024 results presentation 16 October 2024
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, estimates and projections information and statements relating to the business, financial performance are based upon reasonable assumptions, it can give
Slide 3: Agenda
Agenda 1. Nel in brief 2. Q3 2024 highlights 3. Political update 4. Commercial update 5. Technology update 6. Summary and outlook 7. Q&A 3
Slide 4: A fully dedicated electrolyser technology company
NEL IN BRIEF A fully dedicated electrolyser technology company Listed on the Oslo Stock Exchange Leading pure-play electrolyser 1GW of ALK manufacturing capacity ~430 employees (NEL.OSE) since 2014 manufacturer with >3 500 units (Norway) delivered to more than 80 countries 500MW of PEM manufacturing
Slide 5: Nel's value proposition
S U MMARY AND OU TLOOK Nel’s value proposition Unrivalled track record • Decades of experience • Large installed base Technology leadership • Multiple technology platforms (AWE+PEM) • Guaranteed and proven performance • Game-changing next-generation solutions Cost and scale leadership • Front-runner
Slide 6: 2. Q3 2024 highlights
©. Q3 2024 highlights nel:
Slide 7: Quarterly highlights
Q3 2024 Quarterly highlights Financial results and financing Key announcements in Q3 2024 (from continuing operations) Revenue • Follow-on equipment order of more than EUR 7 million for a European project NOK 366 million • Cancellation of Hy Stor Energy’s capacity reservation agreement EBITDA Subseq
Slide 8: Group Financials
Q3 2024 Group Financials (continuing operations) Q3 2024 Q3 2023 YTD 2024 YTD 2023 (NOK million) (restated) (restated) • Revenues positively impacted by Revenue from contracts with customers 366 303 974 938 increased deliveries of Alkaline electrolyser equipment EBITDA -90 -62 -137 -194 • EBITDA dow
Slide 9: Alkaline Electrolyser financials
Q3 2024 Alkaline Electrolyser financials Alkaline Electrolyser Revenue and EBITDA • Solid revenue growth from the (NOK million) Alkaline segment, up 37% q/q and 54% y/y REVENUE 302 254 • Positive underlying quarterly EBITDA 238 187 196 224 220 driven by higher volume and partly offset by higher fixe
Slide 10: PEM Electrolyser financials
Q3 2024 PEM Electrolyser financials PEM Electrolyser Revenue and EBITDA • 40% decrease in revenue y/y due to (NOK million) timing of project revenues and low shipments of small kW-units REVENUE 175 • EBITDA down q/q and y/y due to low 117 108 112 revenues and hence low cost 77 absorption 64 52 • Com
Slide 11: Order intake and backlog
Q3 2024 Order intake and backlog Order intake Order backlog (NOK million) (NOK million) 1 000 3 000 900 2 443 2 500 2 375 2 329 800 2 093 2 115 2 071 700 2 000 1 872 600 500 443 1 500 398 400 338 270 1 000 300 229 200 131 161 500 100 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2023 2024 2023 2024
Slide 12: 3. Political update
>. Political update nel:
Slide 13: EU Hydrogen Bank 2nd auction: Significant steps taken towards a level playing field
POLITICAL U PDATE EU Hydrogen Bank 2nd auction: Significant steps taken towards a level playing field • Mandatory non-price criteria now included - projects must limit the sourcing of electrolyser stacks from China to not more than 25% • With the new terms and conditions, the EU takes significant st
Slide 14: Examples of national programs and auctions in Europe
POLITICAL U PDATE Examples of national programs and auctions in Europe • UK: The government is currently assessing applications to award up to 875 MW of capacity through Hydrogen Allocation Round 2 • The Netherlands: Projects such as PosHydon have received grants from The National Enterprise Agency,
Slide 15: US IRA section 45V: Expect finalized rules by the end of the year
POLITICAL U PDATE US IRA section 45V: Expect finalized rules by the end of the year • US Treasury proposed regulations on the 45V Clean Hydrogen Production Credit early 2024 • Now, after US Treasury received comments on the proposed rules, it is working to include appropriate adjustments and additio
Slide 16: 4. Commercial update
“. Commercial update nel:
Slide 17: Saipem presents solution for large-scale green hydrogen production, utilizing Nel's technology
COMMERCIAL U PDATE Saipem presents solution for large-scale green hydrogen production, utilizing Nel’s technology • Saipem unveiled IVHY 100, a scalable and modular 100 MW green hydrogen solution leveraging Nel’s technology • Part of a wider collaboration where Saipem as an EPC builds complete plant
Slide 18: PosHYdon: Real-life renewable offshore hydrogen production
COMMERCIAL U PDATE PosHYdon: Real-life renewable offshore hydrogen production • Nel’s containerized PEM solution, an MC250, has been transported to Eni’s Q13a-A offshore platform located 13km off the coast of The Netherlands for the PosHYdon project • The system will undergo a rigorous test program
Slide 19: The City of St. Cloud buys Nel electrolyser for wastewater treatment facility
COMMERCIAL U PDATE The City of St. Cloud buys Nel electrolyser for wastewater treatment facility • Client: City of St.Cloud • Size: 1.25 MW • Location: Minnesota, US • Will produce renewable hydrogen from solar power and biogas generated by the treatment process • The hydrogen can be used onsite for
Slide 20: 5. Technology update
5. Technology update nel:
Slide 21: Nel's overall electrolyzer technology strategy
TECHNOLOGY U PDATE Nel’s overall electrolyzer technology strategy S-Curve for future generation stack(s) Performance S-Curve for next generation PEM & Pressurized AWE stacks S-Curve for current AWE and PEM stacks ATM w/low-cost country sourcing and further enhancements AEM New PEM stack developed wi
Slide 22: Nel's atmospheric alkaline solution keeps getting better
TECHNOLOGY U PDATE Nel’s atmospheric akaline solution keeps getting better • ~2% lower power consumption from 2023 to 2024, another ~2% possible next year • ~8% annual stack cost reductions in both 2023 and 2024 • Increasing maturity on system level for large scale installations • Significantly redu
Slide 23: Current PEM stack ready for mass production at 30% lower cost
TECHNOLOGY U PDATE Current PEM stack ready for mass production at 30% lower cost • The new 500 MW PEM production line in Wallingford, CT, is soon completed • With this production line Nel is positioned for large-scale projects for both PEM and Alkaline • The production concept is developed in close
Slide 24: Pressurized alkaline concept rapidly maturing
TECHNOLOGY U PDATE Pressurized alkaline concept rapidly maturing • Nel’s approach is different to other pressurized solutions in the market • Cell stack performance verified, internal prototype under construction to verify system performance: Gas process skid Pressurized Alkaline stack • Transformer
Slide 25: Next generation PEM solution developed in collaboration with GM
TECHNOLOGY U PDATE Next generation PEM solution developed in collaboration with GM already at mini-stack level Current 1.25MW stack Proof of concept mini-stack Future 3MW stack 1 < platinum group metal usage 3 1 530 kg/day, 53 kWh/kg < membrane thickness 4 >1200 kg/day, 47.5 kWh/kg 1 < cell thicknes
Slide 26: 6. Summary and outlook
6. Summary and outlook nel:
Slide 27: Market perspective
S U MMARY AND OU TLOOK Market perspective • The market has been slow in recent quarters • Purchase orders have been pushed out in time as projects have become larger and more complex and developers make more thorough assessments • Lack of visibility on political processes and subsidy LARS: KAN VI FI
Slide 28: Increased cash management focus
S U MMARY AND OU TLOOK Increased cash management focus • Nel is well capitalized with NOK ~2bn of cash reserves, making it one of the best financed electrolyser OEMs • There is no need to raise additional funding, in particular as CAPEX will come down by ~50% in 2025 due to prior expansion programs
Slide 29: Ready for market rebound
SUMMARY AND OUTLOOK Ready for market rebound Improved current World-class Ready for high technologies and partners enable volume deliveries rapidly maturing focus, growth and with limited next gen. solid execution further CAPEX solutions
Slide 30: number one by nature
number one by nature.