Slide 1: Second Quarter 2022 Results Presentation
Second Quarter 2022 Results Presentation 11 August 2022
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. Q2 highlights 3. Commercial developments 4. Political events 5. Summary and outlook 6. Q&A 3
Slide 4: This is Nel
This is Nel Nel is a global, dedicated hydrogen technology We serve a range of different company that delivers customers with leading optimal solutions to hydrogen technologies and produce, store and we continuously improve our distribute hydrogen from product offering to maintain renewable energy a
Slide 5: Leading pure play hydrogen technology company with a global footprint
THIS IS NEL Leading pure play hydrogen technology company with a global footprint Pure play hydrogen technology World’s largest electrolyser Leading manufacturer of hydrogen Manufacturing facilities in company listed on the Oslo Stock manufacturer, with >3,500 units fueling stations, with ~120 Norwa
Slide 6: 2. Q2 2022 highlights
©. Q2 2022 highlights nel:
Slide 7: Q2 2022 Highlights
Q2 2022 Highlights Financial results and financing Key developments in Q2 2022 Revenues • Received purchase orders for: NOK 183 million • An alkaline electrolyser from Glencore Nikkelverk in Norway. Value approx. EUR 3m Up 12% from NOK 164 million in Q2 2021 • An alkaline electrolyser from a refiner
Slide 8: Financial highlights
Q2 2022 Financial highlights NOK million 2022 Q2 2021 Q2 YTD 2022 YTD 2021 2021 Operating revenue 183 164 396 321 798 Total operating expenses 424 313 824 568 1 381 EBITDA -197 -120 -350 -195 -475 EBIT -241 -149 -428 -247 -583 Pre-tax income (loss)* -277 -314 -195 -894 -1 684 Net income (loss)* -275
Slide 9: All-time high order backlog
FINANCIAL DEV ELOPMENTS All-time high order backlog NOK million • NOK 236 million in order intake in Q2 2022, substantial order 2,500 intake in subsequent weeks – Up 61% YoY 2,000 – Up 17% from YE 2021 • Order intake expected to vary between quarters as average 1,500 order size increases • All-time
Slide 10: 3. Commercial developments
3. Commercial developments 10
Slide 11: Purchase order for an alkaline electrolyser system in Norway
COMMERCIAL DEVELOPMENTS Purchase order for an alkaline electrolyser system in Norway • Client: Glencore Nikkelverk • Delivery: mid-2023 • Value: EUR 3 million • The client is already familiar with alkaline electrolyser technology as it currently operates a similar system in Kristiansand delivered by
Slide 12: Purchase order for electrolyser equipment to the world's first dynamic green ammonia plant
COMMERCIAL DEVELOPMENTS Purchase order for electrolyser equipment to the world’s first dynamic green ammonia plant • Client: Skovgaard Energy • Delivery: Q3-2023 • Value: EUR 4 million • The project in Denmark will be the world’s first dynamic green ammonia plant where renewable electricity from win
Slide 13: Purchase order for a PEM electrolyser system in Australia
COMMERCIAL DEVELOPMENTS Purchase order for a PEM electrolyser system in Australia • Client: Viva Energy • Delivery: Q3-2023 • Value: EUR 4 million • The electrolyser will be the biggest in Australia • The system is a containerized solution with a production capacity up to 1,063 kg/day and will suppl
Slide 14: Several purchase orders for fueling equipment
COMMERCIAL DEVELOPMENTS Several purchase orders for fueling equipment • Purchase order from HTEC, Biproraf, and an undisclosed European client received in Q2 2022 • Demand is picking up in several markets, and we expect to see more orders in H2 2022 • Yesterday Nel announced a purchase order for sev
Slide 15: Substantial Enova support in Norway, Nel's home turf
COMMERCIAL DEVELOPMENTS Substantial Enova support in Norway, Nel’s home turf • In June, Glomfjord Hydrogen was awarded NOK 150m in support for its 20 MW hydrogen project for green fuel to customers in the maritime sector • Nel ASA owns 23% of the company • Four other hydrogen hubs in Norway received
Slide 16: What we said six months ago
COMMERCIAL DEVELOPMENTS What we said six months ago Projects getting Expect to break Pipeline significantly order-size booming larger records in 2022 16
Slide 17: Record order for 200 MW of alkaline stacks
COMMERCIAL DEVELOPMENTS Record order for 200 MW of alkaline stacks • Client: Undisclosed, USA • Production: Feb'23-mid'24 • Value: EUR 45 million • Purchase order only includes alkaline electrode stacks • Value could potentially double with Balance of Plant (BoP) equipment following paid FEED study
Slide 18: The 200 MW order is for stacks only, balance of plant could be added
COMMERCIAL DEVELOPMENTS The 200 MW order is for stacks only, balance of plant could be added on later Stack and Balance of Stack (BoS) Balance of Plant (BoP) 4 5 7 1 2 3 7 6 1 8 3 6 2 4 5 1 Electrolyser cell stack 5 Oxygen flange 1 Lye tank 5 Deoxidizer and gas dryer 2 hydrogen separator tank 6 Lye
Slide 19: Impact on Nel
COMMERCIAL DEVELOPMENTS Impact on Nel • Important reference project • Positive financial contribution • Standard product delivery with solid margin • Pass-through on the most important input factors • Herøya baseload secured, volume enables further cost reductions • A blueprint for future large-scal
Slide 20: The 200 MW order is not a one-off
COMMERCIAL DEVELOPMENTS The 200 MW order is not a one-off • Pipeline is still growing and projects are getting bigger • Customers concerned about industry supply constraints • Several paid large-scale FEED studies ongoing and new studies will be initiated Nel will pursue projects where we have: • A
Slide 21: Investment decision to build 2nd alkaline production line at Herøya taken
COMMERCIAL DEVELOPMENTS Investment decision to build 2nd alkaline production line at Herøya taken • Increases total annual alkaline production capacity to ~1 GW • Line 2 is expected to go live in April 2024 • Capex for equipment estimated to be EUR 35 million • Based on main principles from Line 1 w
Slide 22: 4. Political events
“. Political events nel:
Slide 23: US tax credit
POLITICAL EV ENTS US tax credit Expected to accelerate project FIDs in the US • Max tax credit of $3.0/kg of hydrogen • Green hydrogen will become competitive with grey hydrogen in many applications • US will become an increasingly important market 23
Slide 24: 5. Summary and outlook
5. Summary and outlook nel:
Slide 25: Main triggers for large-scale green hydrogen projects are pushing projects towards final investment decisions
COMMERCIAL DEVELOPMENTS Main triggers for large-scale green hydrogen projects are pushing projects towards final investment decisions Financing of Continuous Available long- hydrogen cost reductions term green projects energy intake maturing Political drive Available long- backed by real term end in
Slide 26: Nel uniquely positioned to capitalize on increasing market demand
COMMERCIAL DEVELOPMENTS Nel uniquely positioned to capitalize on increasing market demand Unrivalled track record • Decades of experience • Largest installed base • Proven technology with performance guarantees Technology leadership • Technology leader in PEM, alkaline, and fueling • Optimal system
Slide 27: number one by nature
number one by nature |