Slide 1: Nel ASA Q2 2017
Nel ASA Q2 2017 Q2 2017 Jon André Løkke Chief Executive Officer 1
Slide 2: Forward-looking information
Forward-looking information Nel ASA Q2 2017 This Presentation includes and is based, inter alia, on forward-looking upon reasonable assumptions, it can give no assurance that those information and statements that are subject to risks and uncertainties expectations will be achieved or that the actual
Slide 3: Nel ASA Q2 2017 agenda
Nel ASA Q2 2017 • Q2 highlights and financials • General market update • Nel in brief • Nel + Proton, new organisation • Segment updates - Nel Hydrogen Electrolyser - Nel Hydrogen Fueling - Nel Hydrogen Solutions • Summary/Outlook • Appendix: Q2 financials 3
Slide 4: Q2 Highlights
Q2 Highlights Nel ASA Q2 2017 • Reported revenues in Q2 2017 of NOK 39.1 million, up from NOK 13.5 million in Q2 2016, representing a growth of 190 percent • Order book of approximately NOK 390 million • Successfully closed the acquisition of Proton Energy Systems on June 30 th (“Proton OnSite/Proto
Slide 5: Solid backlog
Solid backlog Nel ASA Q2 2017 • Orders received in Q2’17: NOK ~95 million • Reflects firm PO’s with agreed price/volume/Terms & Conditions • Main order announcements to date: • Royal Dutch Shell Plc (California), first order NOK >140 million • Proton order intake of NOK ~65 million Shell and BMW des
Slide 6: Financial highlights – Quarterly development 2016-2017
Financial highlights – Quarterly development 2016-2017 Nel ASA Q2 2017 2017 2016 2017 2017 2016 2016 2016 2016 (NOK million) Q2 Adj.* Q2 Q2 Q1 Q4 Q3 Q2 Q1 Operating revenue 39.1 13.5 39.1 35.7 50.6 24.4 13.5 26.0 Total operating costs 63.9 29.9 63.9 51.3 66.6 32.7 29.9 36.1 EBITDA -12.5 -14.0 -22.0
Slide 7: General market update
Nel ASA Q2 2017 General market update 7
Slide 8: Total global hydrogen market
Total global hydrogen market Nel ASA Q2 2017 General market update Large opportunities for growth within existing hydrogen Hydrogen from water electrolysis represents only 1% of total market market • ~50 million ton/year market (~150 BUSD) • Only 1% from water electrolysis • Large potential for grow
Slide 9: Project develop.: 400MW renewable H2 plant to outcompete natural gas reforming
Project develop.: 400MW renewable H2 plant to outcompete natural gas reforming Nel ASA Q2 2017 Project examples • Working on GIGA factory concept for renewable hydrogen production to outcompete natural gas reforming • Largest electrolyser plant ever designed • International industrial customer • Tie
Slide 10: 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 Q2 2017 General market update • Recent study shows that power-to-hydrogen is already bankable in Europe at electricity prices of 40 – 50 €/MWh (37 – 47 øre/kWh) • Potential in the EU from now until 2025 of a cumulative electrol
Slide 11: Record range and low cost achieved
Record range and low cost achieved Nel ASA Q2 2017 General market update • Hyundai recently launched next generation FCEV New Hyundai FCEV launch early 2018 • Range of >800 km • Second generation FCEV from Hyundai will receive fourth generation fuel cell tech.: • ~20% lighter fuel cell • ~10 % more
Slide 12: Fuel cell efficiency improvements massively boosts energy output
Fuel cell efficiency improvements massively boosts energy output Nel ASA Q2 2017 General market update • With 1000 kg of a given energy carrier, how much Useful energy per 1000 kg (in kWh) useful energy can be recovered? +30% or ~5 000 kWh 25 000 • Battery: <140 kWh 21 450 • Diesel: ~4 000 kWh 20 00
Slide 13: Other recent hydrogen heavy-duty truck initiatives
Other recent hydrogen heavy-duty truck initiatives Nel ASA Q2 2017 General market update 13
Slide 14: Nel in brief
Nel ASA Q2 2017 Nel in brief 14
Slide 15: Nel ASA
Nel ASA Nel ASA Q2 2017 • Pure-play hydrogen company listed on OSE – facilities in Norway, Denmark and the U.S. • Three divisions offering hydrogen technology and solutions for industrial and energy applications • ~3500 hydrogen solutions delivered in ~80 countries world wide since 1927 • World #1 o
Slide 16: New Nel Board
New Nel Board Nel ASA Q2 2017 • Hanne Skaarberg Holen (chair of the Board) • Partner of Advokatfirmaet Thommessen. Has worked as Managing Partner of Arntzen de Besche Advokatfirma and PriceWaterhouseCoopers • Beatriz Malo De Molina • Has worked as SVP and Head of M&A at Orkla ASA, and previously for
Slide 17: Nel + Proton
Nel ASA Q2 2017 Nel + Proton 17
Slide 18: Nel + Proton OnSite: Created the world's largest electrolyser company
Nel + Proton OnSite: Created the world’s largest electrolyser company Nel ASA Q2 2017 Nel + Proton • Concluded the acquisition of Proton OnSite on June 30, 2017 • Enabling Nel to offer any type of electrolyser in the market • Combined pro forma FY 2016 revenues of NOK ~345 million (vs Nel 2016 reven
Slide 19: Transaction rationale and future opportunities
Transaction rationale and future opportunities Nel ASA Q2 2017 Nel + Proton ✓ Made Nel the world’s largest producer of electrolysers with global reach ✓ Complementary sales organisation and market reach ✓ Secured strong foothold in the U.S. and new markets, accelerating growth ambitions ✓ Proton and
Slide 20: New organization in place
New organization in place Nel ASA Q2 2017 Nel + Proton Jon André Løkke CEO Bent Skisaker Bjørn Simonsen CFO Market Development/PR David Bow Mikael Sloth Product Sales & Marketing Business Development Anders Søreng Jørn Rosenlund Jacob Krogsgaard Electrolyser & CTO Fueling Solutions Hallgeir Øya Kars
Slide 21: Segment updates
Nel ASA Q2 2017 Segment updates 21
Slide 22: Nel Hydrogen Electrolyser
NelHydrogen Nel Hydrogen Electrolyser Electrolyser Nel ASA Q2 2017 • Global leader in hydrogen prod. plants - highest uptime, lowest conversion cost, robust and reliable • More than ~3,500 hydrogen solutions delivered in >80 countries world wide since 1927 • Scalable production capacity for industri
Slide 23: Recent developments
Recent developments Nel ASA Q2 2017 Nel Hydrogen Electrolyser Turn-key, both delivering 200 bar output pressure: • Finalized agreement to acquire Proton, creating the world’s largest hydrogen electrolyser company with a global footprint • Entered milestone agreement with H2V PRODUCT C-150 C-300 150
Slide 24: Alkaline product range, both tailored and turnkey
Alkaline product range, both tailored and turnkey Nel ASA Q2 2017 Nel Hydrogen Electrolyser TAILORED ELECTROLYSER SOLUTION TURNKEY ELECTROLYSER SOLUTION Scalable and modular Small scale turn-key modules Up to any capacity size 24
Slide 25: PEM product range
PEM product range Nel ASA Q2 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 product
Slide 26: Key differentiating factors of our PEM electrolysers
Key differentiating factors of our PEM electrolysers Nel ASA Q2 2017 Nel Hydrogen Electrolysers • Nel is now the largest PEM electrolyser 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 bi
Slide 27: Entered milestone agreement with H2V PRODUCT
Entered milestone agreement with H2V PRODUCT Nel ASA Q2 2017 Nel Hydrogen Electrolyser • Exclusive, industrial-scale power-to-gas framework agreement with H2V PRODUCT Dunkerque gas terminal • French company focused on massive carbon-free hydrogen production • Carbon free hydrogen will be injected in
Slide 28: Rotolyzer® status
Rotolyzer® status Nel ASA Q2 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 • Currently installed and running a
Slide 29: Video of Rotolyzer testing
Video of Rotolyzer testing Nel ASA Q2 2017 The Rotolyzer operating under high pressure and with centrifugal effect • Video taken in Nel Electrolyser Test Center, Notodden • Long-term tests ongoing, confirming (i) energy efficiency, (ii) gas quality and (iii) robustness/maintenance cost 29
Slide 30: Product and technology roadmap – more to come
Product and technology roadmap – more to come Nel ASA Q2 2017 Main principles Nel Hydrogen Electrolyser High pressure alkaline • Stack size 1/4 vs. atmospheric, to be tested during H2’17 • Potential to improve both efficiency and reduce cost, especially designed for a fully automated production line
Slide 31: Current and future technology/product portfolio
Current and future technology/product portfolio Nel ASA Q2 2017 Nel Hydrogen Electrolyser XS S M L XL XXL XXXL 2 kg/d 20 kg/d 200 kg/d 1000 kg/d 12 ton/d 25 ton/d 200 ton/d Atmospheric alkaline High pressure alkaline Rotating pressurized alkaline (Rotolyzer®) PEM • Any type of electrolysers in any s
Slide 32: Nel Hydrogen Fueling
NelHydrogen Nel Hydrogen FuelingFueling Nel ASA Q2 2017 • Global leader within hydrogen fueling solutions for vehicles, first to adapt the newest fueling standards • Delivered more than 30 stations in 8 countries across Europe since 2003 • Highest reported availability and innovative, in-house devel
Slide 33: Fueling station modules – designed for volume manufacturing
Fueling station modules – designed for volume manufacturing Nel ASA Q2 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 34: Have started production of H2Stations in our new plant
Have started production of H2Stations in our new plant Nel ASA Q2 2017 Nel Hydrogen Fueling • Development of Herning facility continues on budget & schedule Production/Assembly • Production moved into new building over the summer, started production of Adm. + R&D /logistics first US stations mid-Aug
Slide 35: Nel Hydrogen Solutions
NelHydrogen Nel Hydrogen Solutions Solutions Nel ASA Q2 2017 • Unified delivery of complex renewable hydrogen solutions, efficient system integration, project development and sales across segments • Only provider of integrated solutions along the entire value chain: 1. Fueling Networks • Develop ent
Slide 36: Created Scandinavian powerhouse on hydrogen
Created Scandinavian powerhouse on hydrogen Nel ASA Q2 2017 Nel Hydrogen Solutions The hydrogen specialists in Scandinavia joined forces to create a JV, taking advantage of each party’s respective technologies and competencies to develop world-class, integrated hydrogen solutions Leading company on
Slide 37: Entered Korean market through joint venture with Deokyang
Entered Korean market through joint venture with Deokyang Nel ASA Q2 2017 Nel Hydrogen Solutions • Nel entered JV agreement with Deokyang Co Ltd, South Koreas largest hydrogen supplier, after closing of Q2 • Nel-Deokyang Ltd established for exclusive sales and marketing of Nel H2Station® in Korea as
Slide 38: California update
California update Nel ASA Q2 2017 Nel Hydrogen Solutions Shell hydrogen stations in the North • Nel is under exclusive framework contract with Shell in partnership with Toyota Motor Corp. for supply, construction and maintenance of hydrogen fueling stations • First purchase order received during the
Slide 39: Summary/Outlook
Nel ASA Q2 2017 Summary/Outlook 39
Slide 40: Creating a rapidly growing billion NOK company
Creating a rapidly growing billion NOK company Nel ASA Q2 2017 Levering on the arising opportunities within energy storage and hydrogen fueling Global presence Technology leadership Strong financials Cost leadership Commercial capabilities Preferred partner 40
Slide 41: Outlook
Outlook Nel ASA Q2 2017 Nel Hydrogen Group Nel Hydrogen Solutions • Significant contribution from all business areas going • Currently pursuing projects together with Proton in the forward, incl. Proton U.S. and other locations • Revenues in Q3’17 expected to be more than twice as • Expect to see ad
Slide 42: Q&A
Nel ASA Q2 2017 Q&A Welcome back, Q3’17 presentation on October 31st, 2017 42
Slide 43: Appendix: Profit and loss
Appendix: Profit and loss Nel ASA Q2 2017 2017 2016 2017 2016 2016 (NOK million) Q2 Q2 Q1-Q2 Q1-Q2 Operating revenue 39.1 13.5 74.9 39.5 114.5 Operating costs 63.9 29.9 115.2 66.0 169.8 EBITDA -22.0 -14.0 -35.0 -21.6 -44.9 EBIT -24.7 -16.5 -40.3 -26.6 -55.3 Pre-tax profit -26.0 -16.0 -43.4 -26.1 -62
Slide 44: Appendix: Balance sheet
Appendix: Balance sheet Nel ASA Q2 2017 2017 2016 (NOK million) Q2 Fixed assets 1,157.3 462.9 Current assets 416.7 300.0 -of which is cash and cash equivalents 201.2 225.5 Equity 1,200.5 671.2 Long term liabilities 26.1 12.6 Short term liabilities 216.4 65.6 Total balance 1,574.1 762.9 Equity ratio
Slide 45: Appendix: Cash flow
Appendix: Cash flow Nel ASA Q2 2017 2017 2016 2016 (NOK million) Q2 Q2 -26.0 -16.0 -62.6 Pre-tax profit (loss) Net cash from operations 37.2 -24.2 -34.2 Net cash from investments -198.5 -8.6 -60.2 Net cash from financing -5.9 9.7 6.8 Net change in cash and cash equivalents -167.2 -23.1 -87.6 Cash at
Slide 46: Number one by nature
Nel ASA Q2 2017 Number one by nature 46