Nel Asa · OSL:NEL

Nel Asa — Q2 2025 Earnings Presentation

27 slides from Nel Asa's earnings presentation, Jul 16, 2025

  1. Slide 1: Second quarter 2025 results presentation

    Second quarter 2025 results presentation 16 July 2025 ©2025 Nel – All rights reserved

  2. Slide 2: Forward-looking information

    Forward-looking information This Presentation includes and is based, inter alia, on forward-looking information and statements relating to the business, financial performance and results of Nel ASA and/or industry and markets in which it operates that are subject to risks and uncertainties that coul

  3. Slide 3: Agenda

    1. Nel in brief 2. Q2 2025 highlights 3. Commercial update 4. Technology update 5. Q&A ©2025 Nel – All rights reserved

  4. 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 ~1 GW of ALK manufacturing capacity 361 (NEL.OSE) since 2014 manufacturer with >7 000 stacks (Norway) employees delivered to more than 80 countries ~500 MW of PEM manufactu

  5. Slide 5: Nel's value proposition

    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 in cost reductions • M

  6. Slide 6: Q2 2025 highlights

    Q2 2025 highlights ©2025 Nel – All rights reserved

  7. Slide 7: Quarterly highlights

    Q2 2025 Quarterly highlights Financial results and financing Key highlights in Q2 2025 Revenue from contracts with customers • SAMSUNG E&A launches its CompassH2 hydrogen plant solution, utilizing Nel’s alkaline technology NOK 174 million • Statkraft cancelled the 40 MW alkaline electrolyser contrac

  8. Slide 8: Group financials

    Q2 2025 Group financials Q2 2025 Q2 2024 YTD 2025 YTD 2024 (NOK million) • Revenues in the second Revenue from contracts with customers 174 332 329 608 quarter declined by 48% YoY EBITDA -86 -79 -201 -48 largely driven by low project activity in the Alkaline segment EBIT -153 -125 -340 -138 • Quarte

  9. Slide 9: Alkaline financials

    Q2 2025 Alkaline financials Quarterly Revenue and EBITDA Development in Alkaline Division • Revenues in the quarter (NOK million) Revenue 302 decreased 70% versus last year, 254 262 196 238 224 220 mainly due to few project milestones 70 65 • Quarterly EBITDA decreased by Q2 2023 Q3 2023 Q4 2023 Q1

  10. Slide 10: PEM financials

    Q2 2025 PEM financials Quarterly Revenue and EBITDA Development in PEM division (NOK million) Revenue • Revenue in-line with the same 174 quarter last year, mainly driven 153 117 by containerized systems 107 112 108 85 52 64 • EBITDA improved by 5 MNOK YoY due to improved gross margin Q2 2023 Q3 202

  11. Slide 11: Order intake and backlog

    Q2 2025 Order intake and backlog Order Intake Order Backlog (NOK million) (NOK million) 500 3 000 450 398 2 375 2 329 400 2 500 338 2 093 2 115 2 071 350 311 1 872 2 000 300 270 1 610 229 1 460 250 1 500 1 249 200 161 148 150 131 1 000 100 71 500 50 0 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q3 Q

  12. Slide 12: Cash burn rate

    Q2 2025 Cash burn rate Quarterly cash-burn development* (NOK million) 100 0 - 100 -94 -118 -121 -138 - 200 -210 -209 -209 -207 - 300 -257 -294 -331 - 400 -411 - 500 -477 -464 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2022 2023 2024 2025 Historical Cash-burn* *Includes purchases of property, plant an

  13. Slide 13: Costs will continue to come down in the second half of 2025

    Q2 2025 Costs will continue to come down in the second half of 2025 Employees Personnel expenses (FTEs) (NOKm) 200 450 430 430 190 430 423 409 180 410 394 170 390 160 370 361 150 350 140 330 130 310 120 290 110 270 100 250 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Runra

  14. Slide 14: Commercial update

    Commercial update ©2025 Nel – All rights reserved

  15. Slide 15: Market perspective

    COMMERCIAL UPDATE Market perspective • Pipeline is large and increasing, but FIDs continue to be pushed out in time • Quality of projects generally higher than in the past due to stricter FID criterias • Several target projects in the 20-200 MW range expected to take FID in the next quarters • Nel c

  16. Slide 16: Extended visibility and clarity on 45V hydrogen tax credit

    COMMERCIAL UPDATE Extended visibility and clarity on 45V hydrogen tax credit • The 45V clean hydrogen production tax credit is now secured through January 1, 2028 • Projects that meet “commence construction” requirements by this date will be eligible for the full credit, worth up to $3/kg • Qualifyi

  17. Slide 17: SAMSUNG E&A unveils the CompassH2

    COMMERCIAL UPDATE SAMSUNG E&A unveils the CompassH2 - a 100MW concept powered by Nel Designed to deliver world-class system efficiency, scalability, and cost-competitiveness, combining Nel’s market-leading electrolyser technology with SAMSUNG E&A’s system-level engineering to achieve the lowest LCOH

  18. Slide 18: Technology update

    Technology update ©2025 Nel – All rights reserved

  19. Slide 19: First generation technology is proven, but LCOH reduction is needed

    TECHNOLOGY UPDATE First generation technology is proven, but LCOH reduction is needed LCOH for US Gulf Coast GW project* CAPEX estimate details (USD/kg) (USD/kW) 400 1800-2200 5.0 90 Financing cost 500 0.8 0.3 O&M 250 2.2 80 130 Electricity 750 1.7 CAPEX LCOH Electrolyzer Other HW Engineering Materi

  20. Slide 20: Nel's approach to lowering LCOH

    TECHNOLOGY UPDATE Nel`s approach to lowering LCOH OPEX: • Improved energy efficiency • Wider operating range • Quicker ramp-up and ramp-down CAPEX: • Cheaper modules • Outdoor operation (no building) • Standardization • Smaller footprint and modularization 20 ©2025 Nel – All rights reserved

  21. Slide 21: The next-generation pressurized alkaline system

    TECHNOLOGY UPDATE The next-generation pressurized alkaline system 2 x Power supply Process skids 2 x Power supply 2 x Stack skids 2 x Stack skids 10 MTPD / 25 MW in <230 m2 ©2025 Nel – All rights reserved

  22. Slide 22: The next-generation pressurized alkaline system

    TECHNOLOGY UPDATE The next-generation pressurized alkaline system System System CAPEX System energy footprint reduction* consumption reduction* ~40-60% <50 kWh/kg ~80% * Vs. Nel’s atmospheric alkaline solution ©2025 Nel – All rights reserved

  23. Slide 23: Next steps for pressurized alkaline solution

    TECHNOLOGY UPDATE Next steps for pressurized alkaline solution • Validate 6.25 MW prototype in Q3 2025 • Take FID on GW production setup in Q3 2025 • Validate 25 MW customer pilot in 2026 • Launch commercial product and deliver first units in 2026 • Deliver at scale, i.e. 100s of MW, in 2027 23 ©202

  24. Slide 24: The next-generation PEM stack

    TECHNOLOGY UPDATE The next-generation PEM stack 24 ©2025 Nel – All rights reserved

  25. Slide 25: The next-generation PEM stack

    TECHNOLOGY UPDATE The next-generation PEM stack >140% higher Stack CAPEX Stack energy capacity on reduction* consumption same footprint ~70% <48 kWh/kg 25 ©2025 Nel – All rights reserved

  26. Slide 26: Next steps for next-generation PEM stack

    TECHNOLOGY UPDATE Next steps for next-generation PEM stack • Successfully passed a key design review • Initiated procurement of full-scale prototype components • Continued investment in test infrastructure and full- scale test stands to simulate varying duty cycles • Reliability area being expanded

  27. Slide 27: The future belongs to the front runners

    The future belongs to the front runners ©2025 Nel – All rights reserved

Nel — Q2 2025 Earnings Presentation on 6ix