Slide 1: Q3 2021
Q3 2021 Jon André Løkke, CEO 21 October 2021
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 • Nel in brief • Q3 highlights & financial review • Quarterly developments • Other key developments • Update on Herøya capacity expansion • Summary / Outlook • Q&A 3
Slide 4: 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 Manufacturing facilities in World’s largest electrolyser Leading manufacturer of technology company listed Norway, Denmark, and U.S., manufacturer, with >3,500 hydrogen fueling stations, on Oslo Stoc
Slide 5: Strong field know-how and manufacturing capacity
THIS IS NEL Strong field know-how and manufacturing capacity PEM electrolysers Alkaline electrolysers Hydrogen refueling stations Wallingford, USA Notodden/Herøya, Norway Herning, Denmark Systems delivered: 2,700+ Systems delivered: 800+ Stations delivered: ~120 Production capacity: >50 MW/year Prod
Slide 6: Green hydrogen approaching fossil parity – game-changer across applications and markets
THIS IS NEL Green hydrogen approaching fossil parity – game-changer across applications and markets Hydrogen is compressed and cooled Hydrogen fueling is relevant for in the H2StationTM ready for fueling both light duty vehicles (LDV) and through the dispenser heavy-duty vehicles (HDV) Electricity p
Slide 7: Nel is the largest electrolyser manufacturer worldwide
THIS IS NEL Nel is the largest electrolyser manufacturer worldwide The world’s largest electrolyser manufacturers Ranked by 2020 revenues Nel electrolyser Company 2 Company 3 Company 4 Company 5 Company 6 Company 7 Source: Company websites, 2020 annual reports, estimates and market intelligence
Slide 8: Q3 highlights & financial review
Q3 highlights & financial review 8
Slide 9: Highlights
Q3 2021 Highlights Financial results and financing Key developments Revenues • Joins PosHydon Consortium for offshore green H2 production NOK 229 million integrated with offshore wind and natural gas Up 55% from NOK 148 million in Q3 2020 • PO for 1.25MW containerized PEM electrolyser for carbon fre
Slide 10: Financial highlights
Q3 2021 Financial highlights (NOK million) 2021 Q3 2020 Q3 2020 2019 2018 Operating revenue 229 148 652 570 489 Total operating expenses 368 264 1 066 823 685 EBITDA -113 -42 -255 -178 -132 EBIT -139 -116 -414 -253 -196 Pre-tax income (loss)* -509 -629 1 246 -277 -198 Net income (loss)* -507 -627 1
Slide 11: Negative effect on Q3 EBITDA & earnings
Q3 2021 Negative effect on Q3 EBITDA & earnings • EBITDA significantly impacted by preparations and investments for the future: • Projects are getting larger, continue to recruit to be able to deliver on what is coming • Across the entire organization; in particular, within project execution • Ramp-
Slide 12: Solid backlog
Q3 2021 Solid backlog Order backlog by quarter Solid order backlog NOK million • Backlog slightly down from last 1000 quarter, up 8% from Q3 2020 • Strong pipeline across segments 800 and industries. Strong industrial sales in PEM 600 • Order intake is expected to vary between quarters as order size
Slide 13: Continued pipeline growth across both electrolyser and fueling segments
Q3 2021 Continued pipeline growth across both electrolyser and fueling segments >6 billion >800 Record-high pipeline presents opportunities for Nel: USD projects • Scalable technology • Reliable systems >11 ~60% • World-class efficiency • Leading Total Cost of GW of potential revenue from 20 largest
Slide 14: Quarterly developments
Quarterly developments nel:
Slide 15: Purchase order for 2 MW PEM electrolyser from H2 Energy
QU ARTERLY DEV ELOPMENTS Purchase order for 2 MW PEM electrolyser from H2 Energy • Nel received PO for a 2 MW fully containerized MC400 electrolyser from H2Energy • The electrolyser is the second system to be delivered as part of the green hydrogen infrastructure network that is supplying hydrogen t
Slide 16: Purchase order for 1.25MW containerized PEM electrolyser in the US
QU ARTERLY DEV ELOPMENTS Purchase order for 1.25MW containerized PEM electrolyser in the US • Nel received PO order for 1.25MW containerized electrolyser to be installed at a nuclear power plant in the US • The MC250 will be the first PEM electrolyser at a nuclear plant in the US configured for dyna
Slide 17: Purchase order for 5 MW alkaline electrolyser from SGN for H100 Fife project
QU ARTERLY DEV ELOPMENTS Purchase order for 5 MW alkaline electrolyser from SGN for H100 Fife project in Scotland • Nel received PO for a 5 MW alkaline electrolyser from SGN • The electrolyser will be used for the world’s first hydrogen-to-homes heating network on the East coast of Scotland and the
Slide 18: Partnership with SFC Energy for integrated electrolyser and H2 fuel cell systems
QU ARTERLY DEV ELOPMENTS Partnership with SFC Energy for integrated electrolyser and H2 fuel cell systems • Integrated electrolyser and fuel cell systems for decentralized energy generation and storage, based on mature, proven technology from Nel and SFC Energy • Significant contribution to emission
Slide 19: Purchase order for H2Station hydrogen fueling station from Everfuel A/S
QU ARTERLY DEV ELOPMENTS Purchase order for H2Station™ hydrogen fueling station from Everfuel A/S • Purchase order for one H2Station™ for a fleet of taxis in Aarhus, Denmark • The H2Station™ will be installed in Aarhus during 2022 • The H2Station™ will also be used as a prototype for a movable stati
Slide 20: Purchase order for H2Station hydrogen fueling station from MaserFrakt AB
QU ARTERLY DEV ELOPMENTS Purchase order for H2Station™ hydrogen fueling station from MaserFrakt AB • Purchase order for H2Station™ for a fleet of heavy-duty fuel cell electric vehicles in Borlänge, Sweden • The H2Station™ refuels hydrogen vehicles in less than fifteen minutes in a safe, fast and rel
Slide 21: Purchase order for H2Station from Touraine Vallée de l'Indre
QU ARTERLY DEV ELOPMENTS Purchase order for H2Station™ hydrogen fueling station from the Community of cities «Touraine Vallée de l’Indre (CCTVI)» • Purchase order for one H2Station™ for light and heavy-duty fuel cell electric vehicles in the region of Tours, France • The H2Station™ is partly funded
Slide 22: Other key developments
Other key developments nel:
Slide 23: Positive policy developments in the US could be market-changing for hydrogen (1:2)
KEY DEV ELOPMENTS Positive policy developments in the US could be market-changing for hydrogen (1:2) Infrastructure Investment and Jobs Act • USD 1 trillion bill achieved bipartisan support – increasing likelihood of being passed in the House by end of 2021 • USD 1 billion designated for electrolysi
Slide 24: Positive policy developments in the US could be market-changing for hydrogen (2:2)
KEY DEV ELOPMENTS Positive policy developments in the US could be market-changing for hydrogen (2:2) $3.50 Build Back Better Act (“The Reconciliation Bill”) $3.00 • Proposed USD 3.5 trillion bill $3.00 • Production tax credits: USD 3/kg subsidy for green hydrogen H2 production tax credit ($/kg) $2.5
Slide 25: Growth in offshore wind means moving to deeper waters where hydrogen can play an important role
KEY DEV ELOPMENTS Growth in offshore wind means moving to deeper waters where hydrogen can play an important role as an energy carrier Offshore wind global capacity Hydrogen as an energy carrier for expected to grow by 20GW electricity produced offshore per year until 2030¹ Decouple offshore wind fr
Slide 26: Nel at the forefront of developing solutions for hydrogen production from offshore wind
KEY DEV ELOPMENTS Nel at the forefront of developing solutions for hydrogen production from offshore wind - a potential next step towards hydrogen production at scale ERM Dolphyn Deep Purple™ PosHYdon Green hydrogen at floating offshore Green hydrogen from offshore wind Green hydrogen from offshore
Slide 27: Steel emerging as potential huge market for green hydrogen
KEY DEV ELOPMENTS Steel emerging as potential huge market for green hydrogen Green steel demand, H2 Mtpa Decarbonization pressure Applications for hydrogen • Steel production is a significant Electrolyser capacity1, GW ~50 in steel production contributor to CO2 emissions and energy demand 5.8 1. Rep
Slide 28: Nel supplier of electrolyser to HYBRIT
KEY DEV ELOPMENTS Nel supplier of electrolyser to HYBRIT, for the world’s first hydrogen-reduced sponge iron production • Nel supplied 4.5MW electrolyser for pilot stage • The HYBRIT initiative consists of three owners: SSAB, LKAB and Vattenfall • HYBRIT test production demonstrates it is possible t
Slide 29: Herøya capacity expansion update
Herøya capacity expansion update 29
Slide 30: Nel green hydrogen cost target by 2025
HERØYA CAPACITY EXPANSION $1.50/kg Nel green hydrogen cost target by 2025 Assumptions: Nel analysis based on electricity of $20/MWh, >8% cost of capital, cost of land, civil works, installation, commissioning, building water etc., lifetime 20 years incl. O&M cost, at 30 bar 30
Slide 31: Game-changing expansion at Herøya on track and on budget
HERØYA CAPACITY EXPANSION Game-changing expansion at Herøya on track and on budget Fully automated and designed according to lean manufacturing and industry 4.0 principles Industrial scale production of most efficient electrolysers in the market, at a game-changing cost Large scale production line,
Slide 32: First electrode batch produced at Herøya
HERØYA CAPACITY EXPANSION First electrode batch produced at Herøya Q3 production ramp-up completed – ready for full-scale production: • HSE: Zero Total Recordable Incidents (TRI) • In line with budgeted costs • Installation and Factory Acceptance Tests (FAT) completed to plan • Operations team have
Slide 33: Summary and outlook
Summary and outlook nel:
Slide 34: Reiterating 2021 guidance: Investing to maintain leadership in a growing market
S U MMARY AND OU TLOOK Reiterating 2021 guidance: Investing to maintain leadership in a growing market Accelerating investments in organization, Continuing development investments in Key markets show strong momentum with technology and partnerships to maintain alkaline and PEM technologies, as well
Slide 35: The global leader within hydrogen technologies
S U MMARY AND OU TLOOK The global leader within hydrogen technologies Proven track record and established market leader • Pure play, independent hydrogen technology company • Decades of experience in PEM and alkaline electrolyser platforms • Technology leadership Scalability and cost leadership • Fi
Slide 36: number one by nature
number one by nature —