Slide 1: Fourth quarter 2022 results presentation
Fourth quarter 2022 results presentation 28 February 2023
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. Q4 2022 highlights 3. Commercial developments 4. Strategy update 5. Summary 6. Q&A 3
Slide 4: This is Nel
This is Nel Leading pure play hydrogen technology company with a global presence, specializing in electrolyser technology and hydrogen fueling equipment We unlock the potential of renewables and enable global decarbonization 4
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 Listed on the Oslo Stock Exchange (NEL.OSE) World’s largest electrolyser manufacturer, Leading manufacturer of Manufacturing facilities in since 2014 with >3 500 units delivered in 80+ hydrogen fueling stations, with ~
Slide 6: 2. Q4 2022 highlights
2. Q4 2022 highlights nel:
Slide 7: Highlights
Q4 2022 Highlights Financial results and financing Key developments in Q4 2022 Revenues • NOK ~600m purchase order from Woodside Energy for a project in Oklahoma, US NOK 414 million • NOK ~120m purchase order from Statkraft • USD ~7m capacity reservation agreement from a US energy company for 16 hyd
Slide 8: Financial highlights
Q4 2022 Financial highlights NOK million Q4 2022 Q4 2021 FY 2022 FY 2021 y/y Change Revenue and operating income 414 1) 248 994 798 25% EBITDA -216 1) -168 -780 -475 -64% EBIT -591 1),2) -197 -1 279 -583 -119% Pre-tax income (loss) -731 1),2),3) -281 -1 187 -1 684 30% Net income (loss) -721 1),2),3)
Slide 9: Segment Financials
Q4 2022 Segment Financials Electrolyser division Q4 Q4 Change FY FY Change Fueling division Q4 Q4 Change FY FY Change (NOK million) 2022 2021 2022 2021 (NOK million) 2022 2021 2022 2021 Revenue and operating Revenue and operating 311 178 75% 748 466 61% 103 1) 71 45% 245 332 -26% income income EBITD
Slide 10: Order intake and backlog
Q4 2022 Order intake and backlog Order intake Order backlog NOK million 982 NOK million 1 000 3 000 2 613 900 775 2 500 800 2 103 700 2 000 600 1 439 500 418 1 500 1 230 1 289 400 1 085 1 078 1 014 263 283 1 000 300 236 200 147 139 500 100 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2021 202
Slide 11: 3. Commercial developments
3. Commercial developments 11
Slide 12: Woodside Energy H2OK project, Nel's largest contract so far
COMMERCIAL DEVELOPMENTS Woodside Energy H2OK project, Nel’s largest contract so far • Client: Woodside Energy • Value: NOK ~600 million • Woodside Energy is a global energy company headquartered in Australia • The electrolyser will be used for liquid hydrogen production in Oklahoma, US, for major tr
Slide 13: 40 MW order from Statkraft paving the way for green hydrogen in Norway
COMMERCIAL DEVELOPMENTS 40 MW order from Statkraft paving the way for green hydrogen in Norway • Client: Statkraft • Value: NOK ~120 million • Size: 40 MW • Statkraft is Europe’s largest producer of renewable energy • The electrolyser equipment will be used to produce green hydrogen in one of Statkr
Slide 14: Capacity reservation agreement for 16 fueling stations from a US energy company
COMMERCIAL DEVELOPMENTS Capacity reservation agreement for 16 fueling stations from a US energy company • Client: Undisclosed US-based • Value: USD ~7 million • Nel has reserved capacity and started sourcing long-lead items • The manufacturing of the equipment will commence when a final PO is signed
Slide 15: Signed a joint development agreement with GM to accelerate PEM development
COMMERCIAL DEVELOPMENTS Signed a joint development agreement with GM to accelerate PEM development • General Motors has invested substantially in fuel cell technology • Combining GM's and Nel's knowledge the two companies are looking to reduce the cost and increase the efficiency of Nel’s PEM electr
Slide 16: 40 MW purchase order from HyCC for production of Sustainable Aviation Fuel (SAF)
COMMERCIAL DEVELOPMENTS - S U BSEQUENT 40 MW purchase order from HyCC for production of Sustainable Aviation Fuel (SAF) • Client: HyCC • Value: NOK ~125 million • Size: 40 MW • HyCC is a Netherlands-based company specialising in hydrogen production • The client has received environmental permit for
Slide 17: Signed a Letter of Intent with HH2E for potential 120 MW capacity in Germany
COMMERCIAL DEVELOPMENTS - S U BSEQUENT Signed a Letter of Intent with HH2E for potential 120 MW capacity in Germany • Client: HH2E • Size: 2x60 MW plants • HH2E is a German hydrogen production company developing a portfolio of projects • The LoI and related FEED is for two of Germany’s largest elect
Slide 18: Capacity expansion progress
COMMERCIAL DEVELOPMENTS - S U BSEQUENT Capacity expansion progress • Construction of Herøya Line 2 (~500 MW) is running according to plan • Expansion of production capacity in Wallingford to be increased to ~500 MW by 2025 (Capex of NOK ~260 million) • Site selection process for US Gigafactory in fi
Slide 19: 4. Strategy update
-. Strategy update nel:
Slide 20: Electrolyser strategy
S TRATEGY U PDATE ELECTROLYS ER Electrolyser strategy • The electrolyser industry is going from small- to large-scale • Several large-scale purchase orders placed • Policy support mechanisms in place to drive further growth • Nel aims to capture 20-30% (excluding China) of the market by: • Rapidly s
Slide 21: Moving from small- to large-scale
S TRATEGY U PDATE ELECTROLYS ER - BIGGER Moving from small- to large-scale Electrolyser orders (at FID) % of total GW Large >250 MW Up to ~2 GW Up to ~500 MW at Herøya in Wallingford Medium 20-250 MW Small <20 MW Up to ~4 GW Prepare for new 2021 2022 2023 2024 2025 at new site in the US GW site Mark
Slide 22: Beat competition on knowledge and cooperation
S TRATEGY U PDATE ELECTROLYS ER - BETTER Beat competition on knowledge and cooperation Unrivalled track record with almost The deepest hydrogen competence Collaboration with customers 100 years of electrolyser experience in the industry and partners that make Nel better 22
Slide 23: Offer the best technology with lowest cost of production (LCOH)
S TRATEGY U PDATE ELECTROLYS ER - BETTER Offer the best technology with lowest cost of production (LCOH) Estimated stack cost reductions USD/kW Next generation AWE -70% Next -40% generation PEM 2022 2023 2024 2025 2026 AWE PEM Continue to invest in AWE and PEM and develop Significantly reduce electr
Slide 24: Focus on what we do best
S TRATEGY U PDATE ELECTROLYS ER - FOCUSED Focus on what we do best Icelan d North Europe Balance Balance America Stack of Stack of Plant Australia Chile Focus on stack and balance of stack, More standardized deliveries, Focus on Europe, North America and and collaborate with EPC partners less custom
Slide 25: Fueling strategy
S TRATEGY U PDATE FU ELING Fueling strategy • Nel continues to see short-term challenges in its Fueling division • Unfocused market approach has led to high organizational and operational complexity driving cost • Immature and non-standardized technology has resulted in high quality costs, which inc
Slide 26: Hydrogen fueling market is moving towards high-capacity solutions
S TRATEGY U PDATE FU ELING Hydrogen fueling market is moving towards high-capacity solutions Annual installations 2022-2025 High Capacity >4 000 kg/day • Demand for high-capacity fueling stations for heavy duty vehicles is expected to grow and become the largest market segment • Nel will focus on de
Slide 27: Reducing complexity and transitioning towards standardized high-capacity products
S TRATEGY U PDATE FU ELING Reducing complexity and transitioning towards standardized high-capacity products From.. To.. • Low & medium capacity vehicles • High capacity & trailer filling solutions Market focus • Customized deliveries to wide range of clients • Standard products to selected high vol
Slide 28: 5. Summary
5. Summary nel:
Slide 29: Fourth quarter 2022 summary
S U MMARY Fourth quarter 2022 summary 20-30% market share Joint Development Agreement Strategic shift in Fueling division to ambition for electrolysers with GM to accelerate PEM reduce complexity and improve development profitability Record high order intake and Line two at Herøya on track → 1 GW CR
Slide 30: number one by nature.
number one by nature.