Slide 1: Q3 2018
Q3 2018 Jon André Løkke Chief Executive Officer
Slide 2: Forward-looking information
Forward-looking information Nel ASA Q3 2018 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
• Q3 highlights • Nel in brief & segment updates - Nel Hydrogen Electrolyser - Nel Hydrogen Fueling - Nel Hydrogen Solutions • H2BusEurope • Hydrogen train opportunity • Summary/Outlook
Slide 4: Q3 highlights
Q3 highlights Nel ASA Q3 2018 Financial results and financing Operations and sales • Received purchase order for two additional fueling stations in • Revenues of NOK 116.0 million in Q3’18, up from NOK 111.7 million Norway and two in Germany in Q3’17, representing a growth of 4 %: • Granted NOK 7.5
Slide 5: Non-recurring/other negative effects on EBITDA
Non-recurring/other negative effects on EBITDA Nel ASA Q3 2018 • PDC legal and other related costs of NOK 19.0 million • Substantial efforts undertaken by Nel, legal council and technical experts to support case • Parties have decided to settle and look forward, continue to work together on upcoming
Slide 6: Financial highlights
Financial highlights Nel ASA Q3 2018 2018 2018 2017 2017 2016 (NOK million) Q3 Adj* Q3 Q3 Q1-Q4 Q1-Q4 Operating revenue 116.0 116.0 111.7 298.4 114.5 Total operating costs 182.2 182.2 145.0 415.6 169.8 EBITDA -16.8* -53.3 -18.5 -81.2 -44.9 EBIT -29.8 -66.3 -33.3 -117.2 -55.3 Pre-tax loss -30.9 -67.4
Slide 7: Nel in brief & segment updates
Nel in brief & segment updates
Slide 8: Nel ASA
Nel ASA Nel ASA Q3 2018 • Global, listed 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-recor
Slide 9: Received purchase order for two additional H2Stations in Norway
Received purchase order for two additional H2Stations in Norway Nel ASA Q3 2018 Nel in brief & segment updates Extending network of hydrogen fueling stations between major cities in Norway • Nel Hydrogen Solutions awarded EUR 2 million contract by Uno-X Hydrogen AS to build next two H2Station® hydro
Slide 10: Received purchase order for two additional H2Stations in Germany
Received purchase order for two additional H2Stations in Germany Nel ASA Q3 2018 Nel in brief & segment updates Part of largest hydrogen infrastructure project in Europe • Nel Hydrogen Solutions awarded EUR 2 million contract by H2 Mobility to deliver two H2Station® hydrogen fueling stations in Germ
Slide 11: Invested USD 5 million in Nikola C-round financing
Invested USD 5 million in Nikola C-round financing Nel ASA Q3 2018 Nel in brief & segment updates Equity investment further strengthens partnership and collaboration between Nel and Nikola • Nikola raised USD 100 million in August 2018, still working to raise additional funds in the same funding rou
Slide 12: Constructing world's largest electrolyzer manufacturing plant
Constructing world’s largest electrolyzer manufacturing plant Nel ASA Q3 2018 Nel in brief & segment updates Name plate capacity of 360 MW per year, more than 10x current annual production • Highly automated and designed according to lean manufacturing principles • Industrial scale production, the m
Slide 13: Making renewable hydrogen mainstream – changing industries
Making renewable hydrogen mainstream – changing industries Nel ASA Q3 2018 Nel in brief & segment updates Aiming at system cost reduction of more than 40% • Electrolysis has for several decades been a niche solution, will now become competitive with steam methane reforming of natural gas (SMR) • The
Slide 14: Awarded Australia's first Power-to-Gas (Solar-to-Hydrogen) project
Awarded Australia’s first Power-to-Gas (Solar-to-Hydrogen) project Nel ASA Q3 2018 Nel in brief & segment updates Integrating electrolysis as an integral part of a clean energy system • Nel will deliver PEM electrolyzer connected to solar PV to the ATCO Group’s Clean Energy Innovation Hub (CEIH) • S
Slide 15: Officially opened large-scale H2Station production facility in Denmark
Officially opened large-scale H2Station production facility in Denmark Nel ASA Q3 2018 Nel in brief & segment updates Annual nameplate production capacity of up to 300 H2Stations • First production line in the world for hydrogen stations • Serial production according to lean principles represents si
Slide 16: H2BusEurope: Commercializing hydrogen buses
H2BusEurope: Commercializing hydrogen buses
Slide 17: H2BusEurope: Deploying hydrogen buses and fueling infrastructure across Europe
H2BusEurope: Deploying hydrogen buses and fueling infrastructure across Europe Nel ASA Q3 2018 Nel & partners awarded EUR 40 million in project support for 600 FC buses & infrastructure in EU • Nel has taken lead within H2BusEurope • EU-funding (CEF) for large-scale rollout of buses and infrastructu
Slide 18: H2BusNorway: Norway can benefit from H2BusEurope??
H2BusNorway: Norway can benefit from H2BusEurope?? Nel ASA Q3 2018 Trondheim Norway not included in this EU project, but can benefit from project’s achievements • Makes low-cost renewable hydrogen available for heavy duty transport sector in key locations – supports the “1000 trucks in Norway by 202
Slide 19: For Norway, hydrogen electric (FC) buses can reach fossil parity already
For Norway, hydrogen electric (FC) buses can reach fossil parity already Nel ASA Q3 2018 Hydrogen electric busses have the lowest Total Cost of Ownership (TCO), i.e. NOK/km Assumptions: • Bus price: 3.3 MNOK (350 k€/bus) • Hydrogen: 47 kr/kg (5 €/kg) • O&M: 2.8 kr/km (0.3 €/km) • Hydrogen electric b
Slide 20: Hydrogen train opportunity
nel: Hydrogen train opportunity
Slide 21: Nel preferred supplier for hydrogen train opportunity in Germany
Nel preferred supplier for hydrogen train opportunity in Germany Nel ASA Q3 2018 Nel chosen as preferred supplier of hydrogen production and fueling equipment for Alstom in Schleswig-Holstein • Centralized hydrogen production and distribution, owned by consortium (showed below) • Green hydrogen prod
Slide 22: Hydrogen trains are now operating in regular service
Hydrogen trains are now operating in regular service Nel ASA Q3 2018 Project examples Hydrogen trains are offering a low cost, zero emission alternative to diesel trains • Today ~40% of trains in Europe run on diesel • Electrification with wires (“El-Wire”) costs ~15 MNOK/km • Alstom hydrogen train
Slide 23: Opportunities in Norway – the hydrogen alternative is cheaper than diesel
Opportunities in Norway – the hydrogen alternative is cheaper than diesel Nel ASA Q3 2018 Major opportunities along Norwegian railroads SINTEF study, example: Nordlandsbanen • Trønder- & Meråkerbanen (120 & 102 km) Single-track line, 731 km About 3000 train movements/year • Rørosbanen & Solørbanen (
Slide 24: Summary/Outlook
nel: Summary/Outlook
Slide 25: Creating a rapidly growing billion NOK company
Creating a rapidly growing billion NOK company Nel ASA Q3 2018 Levering on the arising opportunities within energy storage and hydrogen fueling Global presence Technology leadership Strong financials Cost leadership Commercial capabilities Preferred partner 25
Slide 26: Outlook
Outlook Nel ASA Q3 2018 • As already communicated, ongoing growth initiatives and focus on long-term, high value opportunities will have negative impact on the company’s ability to deliver a positive EBITDA in the short-term • Initiated x10 factory expansion at Notodden to support deliveries to Niko
Slide 27: Q&A
nel: Q&A
Slide 28: Number one by nature
nel: Number one by nature