Slide 1: Q3 2017
Q3 2017 Jon André Løkke Chief Executive Officer
Slide 2: Forward-looking information
Forward-looking information Nel ASA Q3 2017 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: Nel ASA Q3 2017 agenda
Nel ASA Q3 2017 • Q3 highlights - Financials - Order intake - Private placement • General market update • Nel in brief • Segment updates - Nel Hydrogen Electrolyser - Nel Hydrogen Fueling - Nel Hydrogen Solutions • Summary/Outlook • Appendix: Q3 financials
Slide 4: Q3 Highlights
Q3 Highlights Nel ASA Q3 2017 • Reported revenues in Q3 2017 of NOK 111.7 million , up from NOK 24.4 million in Q3 2016, an increase of ~3.5 times • Underlying organic growth of >50% (excl. Proton) • All-time high order backlog of NOK ~460 million • Private placement successfully completed in late S
Slide 5: Solid backlog
Solid backlog Nel ASA Q3 2017 • Orders received by end of period: >180 MNOK • Only includes firm PO’s with agreed price/volume/Terms & Conditions • Main order announcements to date: Order backlog development in 2017 (MNOK) 500 • Sunline, PEM electrolyzers and H2Station fueling in California, total 4
Slide 6: Financial highlights
Financial highlights Nel ASA Q3 2017 2017 2017 2017 2017 2017 2016 2016 2016 2016 (NOK million) Q3 Adj.* Q2 Adj.* Q3 Q2 Q1 Q4 Q3 Q2 Q1 Operating revenue 111.7 39.1 111.7 39.1 35.7 50.6 24.4 13.5 26.0 Total operating costs 145.0 63.9 145.0 63.9 51.3 66.6 37.1 29.9 36.1 EBITDA -10.5 -12.5 -18.5 -22.0
Slide 7: Successful private placement
Successful private placement Nel ASA Q3 2017 • Raised NOK 220 million in gross proceeds through a private placement of 88,000,000 at NOK 2.50 / share • Significantly oversubscribed, strong interest from existing shareholders and new, high-quality investors • Net proceeds will be used for: i. Additio
Slide 8: General market update
nel: General market update
Slide 9: Total global hydrogen market
Total global hydrogen market Nel ASA Q3 2017 General market update Large opportunities for growth of electrolysis within existing Global hydrogen market, by end-use hydrogen market • ~50 million ton/year market (~$150 B) • Only 1% from water electrolysis today, rest is fossil-based • Large potential
Slide 10: The pathway towards fossil parity for renewable hydrogen
The pathway towards fossil parity for renewable hydrogen Nel ASA Q3 2017 General market update ~2015 ~2020 ~X-years Nel electrolysis (large scale alkaline) [$/kW] <700 <500 <350 Solar (utility scale) [$/kW] ~1,500 ~700 <500 Solar PPA [$/kWh] 0.04 – 0.06 0.02 – 0.04 0.015 – 0.02 Total hydrogen produc
Slide 11: Project develop.: 400MW renewable H2 plant to outcompete natural gas reforming
Project develop.: 400MW renewable H2 plant to outcompete natural gas reforming Nel ASA Q3 2017 General market update • Progressing on GIGA factory concept for renewable hydrogen production to outcompete natural gas reforming • International industrial customer • Have developed “cluster design” to re
Slide 12: Power-to-X
Power-to-X Nel ASA Q3 2017 General market update Unparalleled position of electrolysis in producing other green energy forms POWER-TO-GAS POWER-TO-FUEL • Hydrogen from electrolysis will be key in producing large quantities POWER-TO-POWER of sustainable energy in various forms H2 POWER-TO-LIQUID (BIO
Slide 13: Power-to-H2 market of NOK 39 billion until 2025, in Europe alone
Power-to-H2 market of NOK 39 billion until 2025, in Europe alone Nel ASA Q3 2017 General market update • Recent study shows that power-to-hydrogen is already bankable in Europe at electricity prices of 40 – 50 €/MWh (NOK 0.37- 0.47/kWh) • Potential in the EU from now until 2025 of a cumulative elect
Slide 14: Several hydrogen initiatives ongoing: selected examples
Several hydrogen initiatives ongoing: selected examples Nel ASA Q3 2017 General market update 14
Slide 15: Record range and low cost achieved
Record range and low cost achieved Nel ASA Q3 2017 General market update Hyundai 2018 model FCEV: >800 km range (NEDC) Toyota fuel cell concept vehicle Fine-Comfort Ride with Initial production capacity of 3,000 vehicles annually targeted >1000 km range • Hyundai recently launched next generation FC
Slide 16: Nel in brief
nel: Nel in brief
Slide 17: Nel ASA
Nel ASA Nel ASA Q3 2017 • Global 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-record • Comp
Slide 18: Proton OnSite
Proton OnSite Nel ASA Q3 2017 Part of Nel Hydrogen Electrolyser • Completed the acquisition of Proton OnSite on June 30, 2017 PROTON IN NUMBERS • Creating the world’s largest electrolyzer company • USD 27m in revenues (2016) • Enabling Nel to offer any type of electrolyzer in the market • 2600+ inst
Slide 19: Segment updates
nel: Segment updates
Slide 20: Nel Hydrogen Electrolyser
Nel Hydrogen Electrolyser Nel Hydrogen Electrolyser Production and installation of water electrolysers for hydrogen production • Global leader in hydrogen prod. plants - highest uptime, lowest conversion cost, robust and reliable • >3500 hydrogen solutions delivered in >80 countries world wide since
Slide 21: Alkaline product range, both tailored and turnkey
Alkaline product range, both tailored and turnkey Nel ASA Q3 2017 Nel Hydrogen Electrolyser Highest efficiency Scalable and modular Built for future expansion up to any capacity size A-SERIES TAILORED ELECTROLYSER SOLUTION 1 electrolyzer (2.2MW) 6 electrolyzers (~13MW) 24 electrolyzers (~50MW) 176 e
Slide 22: PEM product range
PEM product range Nel ASA Q3 2017 Nel Hydrogen Electrolyser H-Series C-Series M Series • Wide range of products sold to ~75 countries 1 MW solution • Customers range from industrial companies to laboratory institutes Net production rate: 10-30 Nm3/hr Net production rate: 100-200 Nm3/hr Net productio
Slide 23: Key differentiating factors of our PEM electrolyzers
Key differentiating factors of our PEM electrolyzers Nel ASA Q3 2017 Nel Hydrogen Electrolyser • Nel is the largest PEM electrolyzer producer in the world, 5-10 times larger than the closest competitor • Lowest cost position on PEM systems in the industry • Long track record with more than 1 billion
Slide 24: Additional order as part of the world's largest PEM electrolyzer agreement
Additional order as part of the world’s largest PEM electrolyzer agreement Nel ASA Q3 2017 Nel Hydrogen Electrolyser Another MW delivery to China for fuel cell buses ● Order for the fourth MW-system under agreement between Nel/Proton and Synergy in China ● Synergy also cooperating with Ballard on fu
Slide 25: Working to finalize agreements with H2V PRODUCT
Working to finalize agreements with H2V PRODUCT Nel ASA Q3 2017 Nel Hydrogen Electrolyser Dunkerque gas terminal EUR 100,000 pre-engineering contract from H2V PRODUCT • Exclusive, industrial-scale power-to-gas framework agreement signed in June • Pre-engineering has been initiated • Working to final
Slide 26: Rotolyzer® update
Rotolyzer® update Nel ASA Q3 2017 Nel Hydrogen Electrolyser Project running according to plan 100x smaller than ATM from high pressure and centrifugal effect • Design and technical solutions improved to facilitate higher capacity and commercial hydrogen production • Phase 1 tests complete, phase 2 t
Slide 27: Nel Hydrogen Fueling
Nel Hydrogen Fueling Nel Hydrogen Fueling Production of hydrogen fueling stations for cars, buses, trucks, forklifts and other applications • Global leader within hydrogen fueling solutions for vehicles, first to adapt the newest fueling standards • Delivered more than 30 stations in 8 countries acr
Slide 28: Fueling station modules – designed for volume manufacturing
Fueling station modules – designed for volume manufacturing Nel ASA Q3 2017 Nel Hydrogen Fueling • Compact modular turn-key system with flexible site integration • Designed for volume manufacturing for EU & USA 35MPa 35MPa 70MPa Hydrogen supply Hydrogen Fueling Station Module Dispenser storage stora
Slide 29: Have started production of H2Stations in our new plant
Have started production of H2Stations in our new plant Nel ASA Q3 2017 Nel Hydrogen Fueling • Development of Herning facility continues on budget & schedule • Production moved into the new facility over the summer • Started production of first US stations mid-August, official opening to be scheduled
Slide 30: Opening of the first fueling station with Nel-technology in Japan
Opening of the first fueling station with Nel-technology in Japan Nel Hydrogen Fueling Ribbon cutting ceremony on October 5th, 2017 • Mitsubishi Kakoki Kaisha (MKK) purchased the rights to manufacture hydrogen stations based on Nel H2Station® CAR-100 • Design adapted to Japanese regulations and loca
Slide 31: Nel Hydrogen Solutions
Nel Hydrogen Solutions Nel Hydrogen Solutions Established to utilize market opportunities across the Nel group and offers complete solutions to customers • Unified delivery of complex renewable hydrogen solutions, efficient system integration, project development and sales across segments • Only pro
Slide 32: PEM electrolyzer and H2Station® for bus fueling in California
PEM electrolyzer and H2Station® for bus fueling in California Nel ASA Q3 2017 Nel Hydrogen Solutions High capacity station for 25 buses in CA ● First integrated Nel/Proton product offering ● One 2 MW PEM electrolyzers ● Two H2Station® for buses ● Total contract value of USD >8 million ● Delivery dur
Slide 33: Additional order from Shell under framework agreement
Additional order from Shell under framework agreement Nel ASA Q3 2017 Nel Hydrogen Solutions Shell hydrogen stations in Northern CA Further initiatives from Shell in California • Nel has exclusive framework contract with Shell (in partnership with Toyota and Honda) for supply, construction and maint
Slide 34: Potential large scale energy storage project in Fredericia, Denmark
Potential large scale energy storage project in Fredericia, Denmark Nel ASA Q3 2017 Nel Hydrogen Solutions Multi-value stream project in Denmark ● Potential project of ~20 MW electrolysis ● Renewable hydrogen for multiple purposes: • Replace fossil hydrogen used in refinery process • Energy storage
Slide 35: Hyon joint venture ownership
Nel ASA Q3 2017 Hyon is equally owned by Nel ASA, Hexagon Composites ASA and PowerCell Sweden AB, and utilizes each partner’s respective world-leading technologies and competencies to manage and develop projects for effectively integrating and optimal zero-emission power solutions for the customers
Slide 36: Summary/Outlook
nel: Summary/Outlook
Slide 37: Creating a rapidly growing billion NOK company
Creating a rapidly growing billion NOK company Nel ASA Q3 2017 Levering on the arising opportunities within energy storage and hydrogen fueling Global presence Technology leadership Strong financials Cost competitiveness Commercial capabilities Preferred partner 37
Slide 38: Outlook
Outlook Nel ASA Q3 2017 Nel ASA Nel Hydrogen Fueling • The company has a current all-time-high order backlog of • Started production in new Herning facility early August, NOK ~460 million currently focusing on U.S. H2Station® modules for Shell • Following the September private placement, the • Start
Slide 39: Q&A
nel: Q&A
Slide 40: Appendix: Profit and loss
Appendix: Profit and loss Nel ASA Q3 2017 2017 2016 2017 2016 2016 (NOK million) Q3 Q3 Q1-Q3 Q1-Q3 Operating revenue 111.7 24.4 186.6 63.9 114.5 Operating costs 145.0 37.1 260.2 103.2 169.8 EBITDA -18.5 -10.2 -53.5 -31.8 -44.9 EBIT -33.3 -12.8 -73.6 -39.3 -55.3 Pre-tax profit -36.4 -12.4 -79.8 -38.3
Slide 41: Appendix: Balance sheet
Appendix: Balance sheet Nel ASA Q3 2017 2017 2016 (NOK million) Q3 Year End Fixed assets 1,115.3 462.9 Current assets 365.0 300.0 -of which is cash and cash equivalents 85.6 225.5 Equity 1,107.0 671.2 Long term liabilities 25.4 12.6 Short term liabilities 209.9 65.6 Total balance 1,480.3 762.9 Equit
Slide 42: Appendix: Cash flow
Appendix: Cash flow Nel ASA Q3 2017 2017 2016 2016 (NOK million) Q3 Q3 -36.4 -12.4 -62.6 Pre-tax profit (loss) Net cash from operations -90.9 -10.5 -34.2 Net cash from investments -24.4 -31.8 -60.2 Net cash from financing 0.3 0.0 6.8 Net change in cash and cash equivalents -115.6 -42.2 -87.6 Cash at
Slide 43: Appendix: depreciation of intangible assets arising from the PPA
Appendix: explanation of value and depreciation of depreciable intangible assets Nel ASA Q3 2017 arising from the PPA related to the acquisition of Proton Onsite. Excess value Lifetime Depreciation per quarter (NOK million) Intangible assets: 261.7 7 and 15 years 4.7 Technology Customer relationship
Slide 44: Number one by nature
nel: Number one by nature