Slide 1: Q3 2020
Q3 2020 Jon André Lakke Chief Executive Officer e n e l November 5, 2020 Nel ASA Q3 2020
Slide 2: Forward-looking information
Forward-looking information 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 expectations, estimates an
Slide 3: Agenda
Agenda Q3 highlights Financial review Nel in brief © Key developments Summary / Outlook Q&A Nel ASA Q3 2020
Slide 4: Q3 highlights
Q3 highlights Financial results and financing Operations and sales • NOK 16 million R&D-grant from Research Council of Norway to further Revenues develop next generation alkaline electrolyser NOK 147.7 million • USD 4.4 million R&D-grant from Department of Energy to further In line with guidance, sl
Slide 5: Financial review
Financial review nel:
Slide 6: Financial highlights
Financial highlights (NOK million) 2020 Q3 Adj* 2020 Q3 2019 Q3 2020 Q2 2019 2018 Operating revenue 131.9 147.7 148.9 148.6 569.7 489.0 Total operating expenses 250.9 264.0 197.3 220.6 823.3 685.1 EBITDA -44.8 -42.1 -28.9 -48.7 -178.1 -131.6 EBIT -69.1 -116.3 -48.4 -72.0 -253.6 -196.1 Pre-tax income
Slide 7: Solid backlog
Solid backlog Order backlog by quarter (MNOK) Solid order backlog 1100 • Backlog decreased by ~9% in the quarter 900 • Will see quarter-by-quarter fluctuations • Order intake of NOK 45.8 million in Q3 700 • Includes a number of PEM electrolysers (S, H, and C-series) as well as after-sales • Strong p
Slide 8: Nel in brief
Nel in brief nel:
Slide 9: Leading pure play hydrogen technology company with a global footprint
Leading pure play hydrogen technology company with a global footprint 202 © Clee t Pure play hydrogen technology Manufacturing facilities in World's largest electrolyser Leading manufacturer of company listed on Oslo Stock Norway, Denmark, and U.S., manufacturer, with >3,500 hydrogen fueling station
Slide 10: The front runner within hydrogen technologies
The front runner within hydrogen technologies Alkaline and PEM electrolysers Industry leading efficiency and reliability. Converting water and electricity to hydrogen and oxygen — for industry, mobility and energy purposes nel: Hydrogen fueling stations The H2Station™ from Nel is the world’s most co
Slide 11: Strong field know-how & manufacturing capacity
Strong field know-how & manufacturing capacity PEM electrolysers Alkaline electrolysers Hydrogen refuelling stations Wallingford, USA Notodden/Hergya, Norway Herning, Denmark Systems delivered: 2,700+ Systems delivered: 800+ Stations delivered: 80+ N lat ity: ~40MW, Nameplate capacity: ~40MW/year N.
Slide 12: Key developments
Key developments nel:
Slide 13: Received R&D grants for development of next generation electrolysers
Received R&D grants for development of next generation electrolysers Grant for next gen alkaline electrolyser • Will improve fundamental elements in the cell stack affecting efficiency and cost • NOK 16 million grant by the Research Council of Norway • Full scale pilot will be installed at Yara for
Slide 14: H2Station™ order from Everfuel
H2Station™ order from Everfuel Purchase order for hydrogen fueling station for buses • Value in excess of around EUR 1.6 million • Latest generation H2Station™ module to be used for fueling of buses in the Netherlands • To be installed and operational during 2021 Nel ASA Q3 2020 14
Slide 15: First H2Station™ order in Poland
First H2Station™ order in Poland Purchase order for two H2Station™ solutions for cars buses [ \ nel ° Nel ASA Q3 2020 5
Slide 16: Successful IPO/listing of Everfuel
Successful IPO/listing of Everfuel Successful intro on the Merkur Market Everfuel A/S, a Nel minority owned company listed on the Merkur Market of the Oslo Stock Exchange on October 29 Raised NOK 290 million in conjunction with the listing Nel partici d wi ~9 million, lea to an ownership share of ~
Slide 17: Herøya capacity expansion update
Herøya capacity expansion update Electrolyser capacity expansion at Herøya • Fully automated and designed according to lean manufacturing principles • Large production line improvements already identified, name plate capacity of ~500 MW/year • Room to expand to ~2 GW/year with 4 production lines • C
Slide 18: Signed letter of intent (LoI) with Statkraft for green hydrogen project in Norway
Signed letter of intent (Lol) with Statkraft for green hydrogen project in Norway Up to 50 MW electrolysis to support fossil free recycling steel production Statkraft, the largest renewable energy company in Europe partnered up with Celsa Armeringsstal (Celsa), a leading steel producer Facility in M
Slide 19: EU & rest of the world stepping up, leaving Norway behind
EU & rest of the world stepping up, leaving Norway behind Nel Hydrogen Norway still has work to do... - EU target of 40 GW green hydrogen production by 2030 * Equal to >400x global market in 2019 * Country-specific targets so far: Portugal: 1 GW & EUR 7 billion Germany: 5 GW & EUR 9 billion France:
Slide 20: Light at the end of the tunnel for hydrogen efforts in Norway?
Light at the end of the tunnel for hydrogen efforts in Norway? The Norwegian Prime Minister, Erna Solberg promises increased efforts - Recognizes the strong international support for hydrogen » Promises a national road map to follow up previously launched strategy * On October 31* 2020, the Norwegia
Slide 21: Selected by Iberdrola as preferred supplier for a 20 MW green fertilizer project in Spain
Selected by Iberdrola as preferred supplier for a 20 MW green fertilizer project in Spain In final negotiations to deliver a 20 MW PEM electrolyser solution to Iberdrola • Iberdrola, one of the largest electricity utilities in the world, has together with a world- leading fertilizer manufacturer Fer
Slide 22: Summary/Outlook
Summary/Outlook nel:
Slide 23: Leveraging on the arising opportunities within energy storage and hydrogen fueling
Leveraging on the arising opportunities within energy storage and hydrogen fueling Global presence World-class safety Strong financing Cost leadership Preferred partner Technology front-runner Nel ASA Q3 2020 23
Slide 24: Update on Covid-19 status, priorities and impact
Update on Covid-19 status, priorities and impact • Nel has since February 2020 implemented and enforced strict regulations to ensure the safety for employees and partners across locations Safety as priority #1 • To date, one Covid-19 event has been recorded: • At Notodden/Herøya early in October, cl
Slide 25: Outlook
g long-term o To maintain and strengthen its leading position in a growing market, Nel will accelerate investments in organisation, technology and partnerships Nel targets to maintain its current leading position in the electrolysis sector, continuing to develop both PEM and alkaline technologies, a
Slide 26: IR analytics
IR analytics Market cap Billion NOK ~25 Investor base >15% Shares 1. Jan — 1. Nov, 2020 +109% To be confirmed Fa International Daily average turnover ownership of NOK (million) ~2715 Financial calendar Road show/CMD Analyst coverage 5. Nov, 2020: Analyst call 21. Jan, 2021: CMD Jonas Meyer (SB1), To
Slide 27: Q&A
nel: Q&A number one by nature.